[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Rules and Regulations]
[Pages 41838-41845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15048]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R07-OAR-2016-0302; FRL-9948-15-Region 7]
Approval and Promulgation of Air Quality Implementation Plans;
State of Missouri; Cross-State Air Pollution Rule
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is taking direct
final action to approve portions of a November 20, 2015, State
Implementation Plan (SIP) submittal from Missouri concerning
allocations of Cross-State Air Pollution Rule (CSAPR) emission
allowances. Under CSAPR, large electricity generating units in Missouri
are subject to Federal Implementation Plans (FIPs) requiring the units
to participate in CSAPR's Federal trading program for annual emissions
of nitrogen oxides (NOX) and one of CSAPR's two Federal
trading programs for annual emissions of sulfur
[[Page 41839]]
dioxide (SO2). This action approves Missouri's adoption into
its SIP of state regulations establishing state-determined allocations
to replace EPA's default allocations to Missouri units of CSAPR
allowances for annual NOX emissions and annual
SO2 emissions for 2017 and later years. EPA is approving the
SIP revision because it meets the requirements of the Clean Air Act
(CAA) and EPA's regulations for approval of an abbreviated SIP revision
replacing EPA's default allocations of CSAPR emission allowances with
state-determined allocations. Approval of this SIP revision does not
alter any provision of CSAPR's Federal trading programs for annual
NOX emissions and annual SO2 emissions as applied
to Missouri units other than the allowance allocation provisions, and
the FIPs requiring the units to participate in those trading programs
(as modified by the SIP revision) remain in place. The approval is
being issued as a direct final rule without a prior proposed rule
because EPA views it as uncontroversial and does not anticipate adverse
comment. EPA is not acting at this time on the portion of Missouri's
SIP submittal concerning allocations of CSAPR allowances for ozone-
season NOX emissions.
DATES: This direct final rule will be effective August 12, 2016,
without further notice, unless EPA receives adverse comment by July 28,
2016. If EPA receives adverse comment, we will publish a timely
withdrawal of the direct final rule in the Federal Register informing
the public that the rule will not take effect.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-
OAR-2016-0302, to http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. EPA may publish any comment
received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Mr. Larry Gonzalez, Air Planning and
Development Branch, Air and Waste Management Division, EPA Region 7,
11201 Renner Boulevard, Lenexa KS 66219; telephone number: (913) 551-
7041; email address: [email protected].
SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' or
``our'' refer to EPA. This section provides additional information by
addressing the following:
I. What is being addressed in this document?
II. Background on CSAPR and CSAPR-Related SIP Revisions
III. Conditions for Approval of CSAPR-Related SIP Revisions
IV. Missouri's SIP Submittal and EPA's Analysis
A. Missouri's SIP Submittal
B. EPA's Analysis of Missouri's Submittal
1. Timeliness and Completeness of SIP Submittal
2. Methodology Covering All Allowances Potentially Requiring
Allocation
3. Assurance That Total Allocations Will Not Exceed the State
Budget
4. Timely Submission of State-Determined Allocations to EPA
5. No Changes to Allocations Already Submitted to EPA or
Recorded
6. No Other Substantive Changes to Federal Trading Program
Provisions
V. EPA's Action on Missouri's Submittal
VI. Incorporation by Reference
VII. Statutory and Executive Order Reviews
I. What is being addressed in this document?
EPA is taking direct final action to approve the portions of a
November 20, 2015, SIP submittal from Missouri concerning allocations
of allowances used in the CSAPR \1\ Federal trading programs for annual
emissions of NOX and SO2. Large electricity
generating units in Missouri are subject to CSAPR FIPs that require the
units to participate in the Federal CSAPR NOX Annual Trading
Program and the Federal CSAPR SO2 Group 1 Trading
Program.\2\ Each of CSAPR's Federal trading programs includes default
provisions governing the allocation among participating units of
emission allowances used for compliance under that program. CSAPR also
provides a process for the submission and approval of SIP revisions to
replace EPA's default allocations with state-determined allocations.
---------------------------------------------------------------------------
\1\ Federal Implementation Plans; Interstate Transport of Fine
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR
48208 (August 8, 2011), (codified as amended at 40 CFR 52.38 and
52.39 and subparts AAAAA through DDDDD of 40 CFR part 97).
\2\ EPA has proposed to replace the terms ``Transport Rule'' and
``TR'' in the text of the Code of Federal Regulations with the
updated terms ``Cross-State Air Pollution Rule'' and ``CSAPR.'' 80
FR 75706, 75759 (December 3, 2015). Except where otherwise noted,
EPA uses the updated terms here.
---------------------------------------------------------------------------
The SIP revision approved in this action incorporates into
Missouri's SIP state regulations establishing state-determined
allowance allocations to replace EPA's default allocations to Missouri
units of CSAPR NOX Annual allowances and CSAPR
SO2
Group 1 allowances issued for the control periods in 2017 and later
years. EPA is approving the SIP revision because it meets the
requirements of the CAA and EPA's regulations for approval of an
abbreviated SIP revision replacing EPA's default allocations of CSAPR
emission allowances with state-determined allocations. Approval of this
SIP revision does not alter any provisions of the CSAPR NOX
Annual Trading Program or the CSAPR SO2 Group 1 Trading
Program as applied to Missouri units other than the allowance
allocation provisions, and the FIPs requiring the units to participate
in those programs (as modified by this SIP revision) remain in place.
Large electricity generating units in Missouri are also subject to
an additional CSAPR FIP requiring them to participate in the Federal
CSAPR NOX Ozone Season Trading Program. While Missouri's SIP
submittal also seeks to replace the default allocations of CSAPR
NOX Ozone Season allowances to Missouri units, EPA is not
acting on that portion of the SIP submittal at this time. Approval of
this SIP revision concerning other CSAPR trading programs has no effect
on the CSAPR NOX Ozone Season Trading Program as applied to
Missouri units, and the FIP requiring the units to participate in that
program remains in place.
Section II of this document summarizes relevant aspects of the
CSAPR Federal trading programs and FIPs as well as the range of
opportunities states have to submit SIP revisions to modify or replace
the FIP requirements while continuing to rely on CSAPR's trading
programs to address the states' obligations to mitigate interstate air
pollution. Section III describes the specific conditions for approval
of such SIP revisions. Section IV contains EPA's analysis of Missouri's
SIP submittal, and Section V sets forth EPA's action on the submittal.
We are publishing this direct final rule without a prior proposed
rule because we view this as a noncontroversial action and anticipate
no adverse comment. However, in the
[[Page 41840]]
Proposed Rules section of this Federal Register, we are publishing a
separate document that will serve as the proposed rule to approve the
SIP revision if adverse comments are received on this direct final
rule. We will not institute a second comment period on this action. Any
parties interested in commenting must do so at this time. For further
information about commenting on this rule, see the ADDRESSES section of
this document. If EPA receives adverse comment, we will publish a
timely withdrawal in the Federal Register informing the public that
this direct final rule will not take effect. We will address all public
comments in any subsequent final rule based on the proposed rule.
II. Background on CSAPR and CSAPR-Related SIP Revisions
EPA issued CSAPR in July 2011 to address the requirements of CAA
section 110(a)(2)(D)(i)(I) concerning interstate transport of air
pollution. As amended, CSAPR requires twenty-eight Eastern states to
limit their statewide emissions of SO2 and/or NOX
in order to mitigate transported air pollution unlawfully impacting
other states' ability to attain or maintain three National Ambient Air
Quality Standards (NAAQS): The 1997 ozone NAAQS, the 1997 annual fine
particulate matter (PM2.5) NAAQS, and the 2006 24-hour
PM2.5 NAAQS. The emissions limitations are defined in terms
of maximum statewide ``budgets'' for emissions of annual
SO2, annual NOX, and/or ozone-season
NOX by each covered state's large electricity generating
units. The budgets are implemented in two phases of generally
increasing stringency, with the Phase 1 budgets applying to emissions
in 2015 and 2016 and the Phase 2 budgets applying to emissions in 2017
and later years. As a mechanism for achieving compliance with the
emissions limitations, CSAPR established four Federal emissions trading
programs: A program for annual NOX emissions, a program for
ozone-season NOX emissions, and two geographically separate
programs for annual SO2 emissions. CSAPR also established up
to three FIPs applicable to the large electricity generating units in
each covered state. Each CSAPR FIP requires a state's units to
participate in one of the four CSAPR trading programs.
CSAPR includes provisions under which states may submit and EPA
will approve SIP revisions to modify or replace the CSAPR FIP
requirements while allowing states to continue to meet their transport-
related obligations using either CSAPR's Federal emissions trading
programs or state emissions trading programs integrated with the
Federal programs.\3\ Through such a SIP revision, a state may replace
EPA's default provisions for allocating emission allowances among the
state's units, employing any state-selected methodology to allocate or
auction the allowances, subject to timing conditions and limits on
overall allowance quantities. In the case of CSAPR's Federal trading
program for ozone-season NOX emissions (or an integrated
state trading program), a state may also expand trading program
applicability to include certain smaller electricity generating units.
However, no emissions budget increases or other substantive changes to
the trading program provisions are allowed. If a state wants to replace
CSAPR FIP requirements with SIP requirements under which the state's
units participate in a state trading program that is integrated with
and identical to the Federal trading program even as to the allocation
and applicability provisions, the state may submit a SIP revision for
that purpose as well. A state whose units are subject to multiple CSAPR
FIPs and Federal trading programs may submit SIP revisions to modify or
replace the requirements under either some or all of those FIPs.
---------------------------------------------------------------------------
\3\ See 40 CFR 52.38, 52.39. States also retain the ability to
submit SIP revisions to meet their transport-related obligations
using mechanisms other than the CSAPR Federal trading programs or
integrated state trading programs.
---------------------------------------------------------------------------
States can submit two basic forms of CSAPR-related SIP revisions
effective for emissions control periods in 2017 or later years.\4\
Specific conditions for approval of each form of SIP revision are set
forth in the CSAPR regulations, as described in Section III below.
Under the first alternative--an ``abbreviated'' SIP revision--a state
may submit a SIP revision that upon approval replaces the default
allowance allocation and/or applicability provisions of a CSAPR Federal
trading program for the state.\5\ Approval of an abbreviated SIP
revision leaves the corresponding CSAPR FIP and all other provisions of
the relevant Federal trading program in place for the state's units.
---------------------------------------------------------------------------
\4\ CSAPR also provides for a third, more streamlined form of
SIP revision that is effective only for control periods in 2016 and
is not relevant here. See Sec. 52.38(a)(3), (b)(3); Sec. 52.39(d),
(g).
\5\ Sec. 52.38(a)(4), (b)(4); Sec. 52.39(e), (h).
---------------------------------------------------------------------------
Under the second alternative--a ``full'' SIP revision--a state may
submit a SIP revision that upon approval replaces a CSAPR Federal
trading program for the state with a state trading program integrated
with the Federal trading program, so long as the state trading program
is substantively identical to the Federal trading program or does not
substantively differ from the Federal trading program except as
discussed above with regard to the allowance allocation and/or
applicability provisions.\6\ For purposes of a full SIP revision, a
state may either adopt state rules with complete trading program
language, incorporate the Federal trading program language into its
state rules by reference (with appropriate conforming changes), or
employ a combination of these approaches.
---------------------------------------------------------------------------
\6\ Sec. 52.38(a)(5), (b)(5); Sec. 52.39(f), (i).
---------------------------------------------------------------------------
The CSAPR regulations identify several important consequences and
limitations associated with approval of a full SIP revision. First,
upon EPA's approval of a full SIP revision as correcting the deficiency
in the state's SIP that was the basis for a particular CSAPR FIP, the
obligation to participate in the corresponding CSAPR Federal trading
program is automatically eliminated for units subject to the state's
jurisdiction without the need for a separate EPA withdrawal action, so
long as EPA's approval of the SIP is full and unconditional.\7\ Second,
approval of a full SIP revision does not terminate the obligation to
participate in the corresponding CSAPR Federal trading program for any
units located in any Indian country within the borders of the state,
and if and when a unit is located in Indian country within a state's
borders, EPA may modify the SIP approval to exclude from the SIP, and
include in the surviving CSAPR FIP instead, certain trading program
provisions that apply jointly to units in the state and to units in
Indian country within the state's borders.\8\ Finally, if at the time a
full SIP revision is approved EPA has already started recording
allocations of allowances for a given control period to a state's
units, the Federal trading program provisions authorizing EPA to
complete the process of allocating and recording allowances for that
control period to those units will continue to apply, unless EPA's
approval of the SIP revision provides otherwise.\9\
---------------------------------------------------------------------------
\7\ Sec. 52.38(a)(6), (b)(6); Sec. 52.39(j).
\8\ Sec. 52.38(a)(5)(iv) and (v), (a)(6), (b)(5)(v) and (vi),
(b)(6); Sec. 52.39(f)(4) and (5), (i)(4) and (5), (j).
\9\ Sec. 52.38(a)(7), (b)(7); Sec. 52.39(k).
---------------------------------------------------------------------------
Certain CSAPR Phase 2 emissions budgets have been remanded to EPA
for reconsideration.\10\ However, the CSAPR trading programs remain in
effect and all CSAPR emissions budgets likewise remain in effect
pending EPA final action to address the remands. None of
[[Page 41841]]
the CSAPR emissions budgets applicable to Missouri units has been
remanded.\11\
---------------------------------------------------------------------------
\10\ EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 138
(D.C. Cir. 2015).
\11\ Litigation concerning EPA's supplemental rule establishing
the requirement for Missouri units to participate in the CSAPR
NOX Ozone Season Trading Program is currently being held
in abeyance. Public Service Co. of Oklahoma v. EPA, No. 12-1023
(D.C. Cir. filed January 13, 2012).
---------------------------------------------------------------------------
In 2015, EPA proposed to update CSAPR to address Eastern states'
interstate air pollution mitigation obligations with regard to the 2008
ozone NAAQS. Among other things, the proposed rule would amend the
Phase 2 emissions budget applicable to Missouri units under the CSAPR
NOX Ozone Season Trading Program and would make technical
corrections and nomenclature changes throughout the CSAPR regulations,
including the CSAPR FIPs at 40 CFR part 52 and the CSAPR Federal
trading program regulations for annual NOX, ozone-season
NOX, and SO2 emissions at 40 CFR part 97.\12\
---------------------------------------------------------------------------
\12\ 80 FR 75706, 75710, 75757 (December 3, 2015).
---------------------------------------------------------------------------
III. Conditions for Approval of CSAPR-Related SIP Revisions
Each CSAPR-related abbreviated or full SIP revision must meet the
following general submittal conditions:
Timeliness and completeness of SIP submittal. If a state
wants to replace the default allowance allocation or applicability
provisions of a CSAPR Federal trading program, the complete SIP
revision must be submitted to EPA by December 1 of the year before the
deadlines described below for submitting allocation or auction amounts
to EPA for the first control period for which the state wants to
replace the default allocation and/or applicability provisions.\13\
(The SIP submission deadline is inoperative in the case of a SIP
revision that seeks only to replace a CSAPR FIP and Federal trading
program with a SIP and a substantively identical state trading program
integrated with the Federal trading program.) The SIP submittal
completeness criteria in section 2.1 of appendix V to 40 CFR part 51
also apply.
---------------------------------------------------------------------------
\13\ 40 CFR 52.38(a)(4)(ii), (a)(5)(vi), (b)(4)(iii),
(b)(5)(vii); Sec. 52.39(e)(2), (f)(6), (h)(2), (i)(6).
---------------------------------------------------------------------------
In addition to the general submittal conditions, a CSAPR-related
abbreviated or full SIP seeking to address the allocation or auction of
emission allowances must meet the following further conditions:
Methodology covering all allowances potentially requiring
allocation. For each Federal trading program addressed by a SIP
revision, the SIP revision's allowance allocation or auction
methodology must replace both the Federal program's default allocations
to existing units \14\ at 40 CFR 97.411(a), 97.511(a), 97.611(a), or
97.711(a), as applicable, and the Federal trading program's provisions
for allocating allowances from the new unit set-aside (NUSA) for the
state at 40 CFR 97.411(b)(1) and 97.412(a), 97.511(b)(1) and 97.512(a),
97.611(b)(1) and 97.612(a), or 97.711(b)(1) and 97.712(a), as
applicable.\15\ In the case of a state with Indian country within its
borders, while the SIP revision may neither alter nor assume the
Federal program's provisions for administering the Indian country NUSA
for the state, the SIP revision must include procedures addressing any
the disposition of otherwise unallocated allowances from an Indian
country NUSA that may be made available for allocation by the state
after EPA has carried out the Indian country NUSA allocation
procedures.\16\
---------------------------------------------------------------------------
\14\ In the context of the approval conditions for CSAPR-related
SIP revisions, an ``existing unit'' is a unit for which EPA has
determined default allowance allocations (which could be allocations
of zero allowances) in the rulemakings establishing and amending
CSAPR. A spreadsheet showing EPA's default allocations to existing
units is posted at www.epa.gov/crossstaterule/techinfo.html.
\15\ Sec. 52.38(a)(4)(i), (a)(5)(i), (b)(4)(ii), (b)(5)(ii);
Sec. 52.39(e)(1), (f)(1), (h)(1), (i)(1).
\16\ See Sec. Sec. 97.412(b)(10)(ii), 97.512(b)(10)(ii),
97.612(b)(10)(ii), 97.712(b)(10)(ii).
---------------------------------------------------------------------------
Assurance that total allocations will not exceed the state
budget. For each Federal trading program addressed by a SIP revision,
the total amount of allowances auctioned or allocated for each control
period under the SIP revision (prior to the addition by EPA of any
unallocated allowances from any Indian country NUSA for the state) may
not exceed the state's emissions budget for the control period less the
sum of the amount of any Indian country NUSA for the state for the
control period and any allowances already allocated to the state's
units for the control period and recorded by EPA.\17\ Under its SIP
revision, a state is free to not allocate allowances to some or all
potentially affected units, to allocate or auction allowances to
entities other than potentially affected units, or to allocate or
auction fewer than the maximum permissible quantity of allowances and
retire the remainder.
---------------------------------------------------------------------------
\17\ Sec. 52.38(a)(4)(i)(A), (a)(5)(i)(A), (b)(4)(ii)(A),
(b)(5)(ii)(A); Sec. 52.39(e)(1)(i), (f)(1)(i), (h)(1)(i),
(i)(1)(i).
---------------------------------------------------------------------------
Timely submission of state-determined allocations to EPA.
The SIP revision must require the state to submit to EPA the amounts of
any allowances allocated or auctioned to each unit for each control
period (other than allowances initially set aside in the state's
allocation or auction process and later allocated or auctioned to such
units from the set-aside amount) by the following deadlines.\18\ Note
that the submission deadlines differ for amounts allocated or auctioned
to units considered existing units for CSAPR purposes and amounts
allocated or auctioned to other units.
---------------------------------------------------------------------------
\18\ Sec. 52.38(a)(4)(i)(B) and (C), (a)(5)(i)(B) and (C),
(b)(4)(ii)(B) and (C), (b)(5)(ii)(B) and (C); Sec. 52.39(e)(1)(ii)
and (iii), (f)(1)(ii) and (iii), (h)(1)(ii) and (iii), (i)(1)(ii)
and (iii).
------------------------------------------------------------------------
Deadline for submission
Units Year of the control to EPA of allocations or
period auction results
------------------------------------------------------------------------
Existing.............. 2017 and 2018........ June 1, 2016.
2019 and 2020........ June 1, 2017.
2021 and 2022........ June 1, 2018.
2023 and later years. June 1 of the fourth year
before the year of the
control period.
Other................. All years............ July 1 of the year of the
control period.
------------------------------------------------------------------------
No changes to allocations already submitted to EPA or
recorded. The SIP revision must not provide for any change to the
amounts of allowances allocated or auctioned to any unit after those
amounts are submitted to EPA or any change to any allowance allocation
determined and recorded by EPA under the Federal trading program
regulations.\19\
---------------------------------------------------------------------------
\19\ Sec. 52.38(a)(4)(i)(D), (a)(5)(i)(D), (b)(4)(ii)(D),
(b)(5)(ii)(D); Sec. 52.39(e)(1)(iv), (f)(1)(iv), (h)(1)(iv),
(i)(1)(iv).
---------------------------------------------------------------------------
No other substantive changes to Federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also expands program
[[Page 41842]]
applicability as described below.\20\ Any new definitions adopted in
the SIP revision (in addition to the Federal trading program's
definitions) may apply only for purposes of the SIP revision's
allocation or auction provisions.\21\
---------------------------------------------------------------------------
\20\ Sec. 52.38(a)(4), (a)(5), (b)(4), (b)(5); Sec. 52.39(e),
(f), (h), (i).
\21\ Sec. 52.38(a)(4)(i), (a)(5)(ii), (b)(4)(ii), (b)(5)(iii);
Sec. 52.39(e)(1), (f)(2), (h)(1), (i)(2).
---------------------------------------------------------------------------
In addition to the general submittal conditions, a CSAPR-related
abbreviated or full SIP revision seeking to expand applicability under
the CSAPR NOX Ozone Season Trading Program (or an integrated
state trading program) must meet the following further conditions:
Only electricity generating units with nameplate capacity
of at least 15 MWe. The SIP revision may expand applicability only to
additional fossil fuel-fired boilers or combustion turbines serving
generators producing electricity for sale, and only by lowering the
generator nameplate capacity threshold used to determine whether a
particular boiler or combustion turbine serving a particular generator
is a potentially affected unit. The nameplate capacity threshold
adopted in the SIP revision may not be less than 15 MWe.\22\
---------------------------------------------------------------------------
\22\ Sec. 52.38(b)(4)(i), (b)(5)(i).
---------------------------------------------------------------------------
No other substantive changes to Federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also addresses the allocation or auction of emission allowances as
described above.\23\
---------------------------------------------------------------------------
\23\ Sec. 52.38(b)(4), (b)(5).
---------------------------------------------------------------------------
In addition to the general submittal conditions and the other
applicable conditions described above, a CSAPR-related full SIP
revision must meet the following further conditions:
Complete, substantively identical trading program
provisions. The SIP revision must adopt complete state trading program
regulations substantively identical to the Federal trading program
regulations at 40 CFR 97.402 through 97.435, 97.502 through 97.535,
97.602 through 97.635, or 97.702 through 97.735, as applicable, except
as described above in the case of a SIP revision that seeks to replace
the default allowance allocation and/or applicability provisions.
Only non-substantive substitutions for the term ``State.''
The SIP revision may substitute the name of the state for the term
``State'' as used in the Federal trading program regulations, but only
to the extent that EPA determines that the substitutions do not
substantively change the trading program regulations.\24\
---------------------------------------------------------------------------
\24\ Sec. 52.38(a)(5)(iii), (b)(5)(iv); Sec. 52.39(f)(3),
(i)(3).
---------------------------------------------------------------------------
Exclusion of provisions addressing units in Indian
country. The SIP revision may not include references to or impose
requirements on any unit in any Indian country within the state's
borders and must not include the Federal trading program provisions
governing allocation of allowances from any Indian country NUSA for the
state.\25\
---------------------------------------------------------------------------
\25\ Sec. 52.38(a)(5)(iv), (b)(5)(v); Sec. 52.39(f)(4),
(i)(4).
---------------------------------------------------------------------------
IV. Missouri's SIP Submittal and EPA's Analysis
A. Missouri's SIP Submittal
In the CSAPR rulemaking, EPA determined that air pollution
transported from Missouri unlawfully affected other states' ability to
attain or maintain the 1997 annual PM2.5 NAAQS and the 2006
24-hour PM2.5 NAAQS.\26\ In a supplemental rulemaking, EPA
determined that air pollution transported from Missouri also unlawfully
affected other states' ability to attain and maintain the 1997 ozone
NAAQS.\27\ Missouri units meeting the CSAPR applicability criteria are
consequently subject to CSAPR FIPs that require participation in the
CSAPR NOX Annual Trading Program, the CSAPR SO2
Group 1 Trading Program, and the CSAPR NOX Ozone Season
Trading Program.\28\
---------------------------------------------------------------------------
\26\ 76 FR 48208, 48213 (August 8, 2011).
\27\ 76 FR 80760, 80763 (December 27, 2011).
\28\ 40 CFR 52.38(a)(2), (b)(2); Sec. 52.39(b); Sec. 52.1326;
Sec. 52.1327.
---------------------------------------------------------------------------
On November 20, 2015, Missouri submitted to EPA an abbreviated SIP
revision that, if all portions were approved, would replace the default
allowance allocation provisions of all three CSAPR trading programs for
the state's EGUs for the control periods in 2017 and later years with
provisions establishing state-determined allocations for those control
periods but that would leave the corresponding CSAPR FIPs and all other
provisions of the trading programs in place. The SIP submittal
generally consists of three duly adopted state rules, 10 CSR 10-6.372
(Cross-State Air Pollution Rule Annual NOX Trading Allowance
Allocations), 10 CSR 10-6.374 (Cross-State Air Pollution Rule Ozone
Season NOX Trading Allowance Allocations), and 10 CSR 10-
6.376 (Cross-State Air Pollution Rule Annual SO2 Trading
Allowances Allocations). The three state rules are substantively
identical except that each addresses a different CSAPR Federal trading
program and allocates a different total quantity of allowances. Each
rule contains a table establishing specific amounts of allowances to be
allocated for each control period in 2017 and later years to specified
Missouri electricity generating units under the applicable CSAPR
trading program. Each rule also establishes a NUSA for the applicable
program for each control period and sets forth a procedure for
allocating allowances from the NUSA to qualifying Missouri units.
The SIP revision was submitted to EPA by a letter from the Director
of the Missouri Air Pollution Control Program. The letter and its
enclosures describe steps taken by Missouri to provide public notice
prior to adoption of the state rules.
In this rule, EPA is taking action on the portions of Missouri's
SIP submittal relating to the CSAPR NOX Annual Trading
Program and the CSAPR SO2 Group 1 Trading Program. EPA is
not taking action at this time on the portion of the SIP submittal
relating to the CSAPR NOX Ozone Season Trading Program. As
noted in section II above, EPA has proposed to update CSAPR to address
Eastern states' interstate air pollution mitigation obligations with
regard to the 2008 ozone NAAQS. The proposal would reduce the ozone-
season NOX emissions budgets for control periods in 2017 and
later years for a number of states, including Missouri. Action on the
portion of Missouri's SIP submittal addressing allocations of ozone-
season NOX allowances would be premature while the proposed
update is pending because there is a foreseeable potential conflict
between the total amount of allowances that would be allocated to
Missouri units under Missouri's state-determined allocation provisions,
which are based on Missouri's current budget, and the total amount of
allowances that could permissibly be allocated to the units under a
final updated budget.
EPA has previously approved a separate Missouri SIP revision
replacing the default allowance allocation provisions of the CSAPR
NOX Annual Trading Program and the CSAPR NOX
Ozone Season Trading Program for Missouri existing units for the
control period in 2016.\29\
---------------------------------------------------------------------------
\29\ 80 FR 51131 (August 24, 2015).
---------------------------------------------------------------------------
B. EPA's Analysis of Missouri's Submittal
As described in section IV.A above, at this time EPA is taking
action on the portions of Missouri's SIP submittal relating to the
CSAPR NOX Annual Trading Program and the CSAPR
SO2 Group 1 Trading Program but not the portion of the SIP
submittal relating to
[[Page 41843]]
the CSAPR NOX Ozone Season Trading Program. The analysis
discussed in this section addresses only the portions of Missouri's SIP
submittal on which EPA is taking action at this time. For simplicity,
throughout this section EPA refers to the portions of the submittal on
which EPA is taking action as ``the submittal'' or ``the SIP revision''
without repeating the qualification that at this time EPA is analyzing
and acting on only portions of the SIP submittal.
1. Timeliness and Completeness of SIP Submittal
Missouri's SIP revision seeks to establish state-determined
allocations of CSAPR NOX Annual allowances and CSAPR
SO2 Group 1 allowances for the control periods in 2017 and
later years. Under 40 CFR 52.38(a)(4)(i)(B) and 52.39(e)(1)(ii), the
deadline for submission of state-determined allocations for the 2017
and 2018 control periods is June 1, 2016, which under Sec. Sec.
52.38(a)(4)(ii) and 52.39(e)(2) makes December 1, 2015, the deadline
for submission to EPA of a complete SIP revision establishing state-
determined allocations for those control periods. Missouri submitted
its SIP revision to EPA by a letter dated and delivered electronically
on November 20, 2015, and EPA has determined that the submittal
complies with the applicable minimum completeness criteria in section
2.1 of appendix V to 40 CFR part 51. Because Missouri's SIP revision
was timely submitted and meets the applicable completeness criteria, it
meets the condition under 40 CFR 52.38(a)(4)(ii) and 52.39(e)(2) for
timely submission of a complete SIP revision.
2. Methodology Covering All Allowances Potentially Requiring Allocation
Paragraphs 10 CSR 10-6.372(3) and 10 CSR 10-6.376(3) of the
Missouri rules provide that the allowance allocation methodology
adopted by Missouri in the SIP revision replaces the provisions of 40
CFR 97.411(a) and 97.611(a), respectively, thereby addressing all
allowances that under the default allocation provisions for the Federal
trading programs would be allocated to units considered existing units
for CSAPR purposes (prior to allocation of any allowances set aside
during the initial allocation process). The same Missouri rule
paragraphs also provide that the state's allocation methodology
replaces the provisions of 40 CFR 97.411(b)(1) and 97.412(a) and the
provisions of 40 CFR 97.611(b)(1) and 97.612(a), respectively, thereby
addressing allocation of allowances in the NUSAs established for
Missouri under the Federal trading programs. The CSAPR Federal trading
program regulations do not establish any Indian country NUSAs for
Missouri. The allocations provisions in the Missouri rules therefore
enable Missouri's SIP revision to meet the condition under 40 CFR
52.38(a)(4)(i) and 52.39(e)(1) that the state's allocation or auction
methodology must cover all allowances potentially requiring allocation
by the state.
3. Assurance That Total Allocations Will Not Exceed the State Budget
Paragraphs 10 CSR 10-6.372(3)(A)1. and 10 CSR 10-6.376(3)(A)1. of
the Missouri rules provide for allowance allocations under each trading
program to be made to specified units (including all Missouri units
considered existing units for CSAPR purposes) in fixed amounts as set
forth in tables referred to as ``Table 1'' in the state rules. The
totals of the allowances allocated for each control period according to
the two tables (45,818 CSAPR NOX Annual allowances and
160,959 CSAPR SO2 Group 1 allowances) are less than
Missouri's state budgets for the control periods in 2017 and later
years under the respective trading programs (48,743 CSAPR
NOX Annual allowances and 165,941 CSAPR SO2 Group
1 allowances).\30\ Paragraphs 10 CSR 10-6.372(3)(B)3.B. and 10 CSR 10-
6.376(3)(B)3.B. of the Missouri rules establish NUSAs for each trading
program, allocating to each NUSA for each control period an amount of
allowances equal to the state budget for the trading program minus the
total amount of allowances allocated according to the table for that
trading program. As noted above, the CSAPR Federal trading program
regulations do not establish Indian country NUSAs for Missouri. The
only allowances available for allocation to Missouri units are
therefore allowances allocated under the Missouri rules, and the only
such allowances, which necessarily sum to the state budgets, are the
allowances allocated according to the tables and the allowances
allocated from the NUSAs. EPA has not yet allocated or recorded CSAPR
allowances for the control periods in 2017 or later years. The
allocation methodology in Missouri's SIP revision therefore meets the
condition under 40 CFR 52.38(a)(4)(i)(A) and 52.39(e)(1)(i) that, for
each trading program, the total amount of allowances allocated under
the SIP revision (before the addition of any otherwise unallocated
allowances from an Indian country NUSA) may not exceed the state's
budget for the control period less the amount of the Indian country
NUSA for the state and any allowances already allocated and recorded by
EPA.
---------------------------------------------------------------------------
\30\ 40 CFR 97.410(a)(11)(iv), 97.610(a)(7)(iv).
---------------------------------------------------------------------------
4. Timely Submission of State-Determined Allocations to EPA
The allocation tables in the Missouri rules establish the primary
allowance allocations for all Missouri units that are considered
existing units for CSAPR purposes. Paragraphs 10 CSR 10-6.372(3)(A)1.A.
through D. and 10 CSR 10-6.376(3)(A)1.A. through D. of the Missouri
rules provide for the state-determined allocations established
according to the tables to be submitted to EPA by the following
deadlines: Allocations for the control periods in 2017 and 2018, by
June 1, 2016; allocations for the control periods in 2019 and 2020, by
June 1, 2017; allocations for the control periods in 2021 and 2022, by
June 1, 2018; and allocations for later control periods, by June 1 of
the fourth year before the year of the control period. These submission
deadlines match the deadlines under 40 CFR 52.38(a)(4)(i)(B) and
52.39(e)(1)(ii) described in Section III above for allocations to
existing units. Paragraphs 10 CSR 10-6.372(3)(B)1. and 10-6.376(3)(B)1.
of the Missouri rules provide for the state-determined allowance
allocations to other units from the NUSAs for each control period to be
submitted to EPA by July 1 of the year of the control period. These
submission deadlines match the submission deadlines under 40 CFR
52.38(a)(4)(i)(C) and 52.39(e)(1)(iii) described in section III above
for allocations to other units. Missouri's SIP revision therefore meets
the conditions under 40 CFR 52.38(a)(4)(i)(B) and (C) and
52.39(e)(1)(ii) and (iii) requiring that the SIP revision provide for
submission of state-determined allowance allocations to EPA by the
deadlines specified in those provisions.
5. No Changes to Allocations Already Submitted to EPA or Recorded
The Missouri rules include no provisions allowing alteration of
allocations after the allocation amounts have been provided to EPA and
no provisions allowing alteration of any allocations made and recorded
by EPA under the Federal trading program regulations, thereby meeting
the condition under 40 CFR 52.38(a)(4)(i)(D) and 52.39(e)(1)(iv).
6. No Other Substantive Changes to Federal Trading Program Provisions
Besides the provisions addressing allowance allocations discussed
above, the Missouri rules contain certain
[[Page 41844]]
definitions. Paragraphs 10 CSR 10-6.372(2)(A) and 10 CSR 10-6.376(2)(A)
incorporate by reference the Federal trading program definitions in 40
CFR 97.402 and 97.403 and the definitions in 40 CFR 97.602 and 97.603,
respectively. Paragraphs 10 CSR 6.372(2)(B) and 10 CSR 10-6.376(2)(B)
define a single term which is not defined in the Federal trading
program regulations (``notification''), and paragraphs 10 CSR
6.372(2)(C) and 10 CSR 10-6.376(2)(C) refer to another Missouri rule
for definitions of otherwise undefined terms. These definition
provisions do not make substantive changes to the Federal trading
program provisions.\31\ EPA therefore determines that Missouri's SIP
revision meets the condition under 40 CFR 52.38(a)(4) and 52.39(e) of
making no substantive changes to the Federal trading program
regulations beyond the provisions addressing allowance allocations.
---------------------------------------------------------------------------
\31\ EPA has proposed to make certain technical corrections to
the CSAPR FIP and Federal trading program regulations in order to
more accurately reflect EPA's intent as described in the CSAPR
rulemaking and has also proposed to replace ``TR'' with ``CSAPR''
throughout the regulations (for example, ``TR NOX Annual
unit'' would become ``CSAPR NOX Annual unit''). See 80 FR
75706, 75758. Because the proposed technical corrections merely
clarify and do not change EPA's interpretations, where the proposed
corrections would apply to a provision incorporated by reference in
the Missouri rules, EPA would interpret the Missouri rules as
reflecting the corrections. Further, EPA anticipates that if the
proposed nomenclature updates are finalized, the final CSAPR Federal
regulations would explicitly provide that terms that include
``CSAPR'' encompass otherwise identical terms in approved SIP
revisions that include ``TR''.
---------------------------------------------------------------------------
V. EPA's Action on Missouri's Submittal
EPA is taking direct final action to approve the portions of
Missouri's November 20, 2015, SIP submittal concerning allocations to
Missouri units of CSAPR NOX Annual allowances and CSAPR
SO2 Group 1 allowances for the control periods in 2017 and
later years. The approved revision adopts into the SIP the rules
codified in Missouri's regulations at 10 CSR 10-6.372 (Cross-State Air
Pollution Rule Annual NOX Trading Allowance Allocations) and
10 CSR 10-6.376 (Cross-State Air Pollution Rule Annual SO2
Trading Allowances Allocations). Following this approval, allocations
of CSAPR NOX Annual allowances to Missouri units for the
control periods in 2017 and later years will be made according to the
provisions of Missouri's SIP instead of CSAPR's default allocation
provisions at 40 CFR 97.411(a), 97.411(b)(1), and 97.412(a), and
allocations of CSAPR SO2 Group 1 allowances to Missouri
units for the control periods in 2017 and later years will be made
according to the provisions of Missouri's SIP instead of CSAPR's
default allocation provisions at 40 CFR 97.611(a), 97.611(b)(1), and
97.612(a). Approval of this SIP revision does not alter any provision
of the CSAPR NOX Annual Trading Program or the CSAPR
SO2 Group 1 Trading Program as applied to Missouri units
other than the allowance allocation provisions, and the FIPs requiring
the units to participate in those programs (as modified by this SIP
revision) remain in place. EPA is approving the indicated portions of
the SIP submittal because they meet the requirements of the CAA and
EPA's regulations for approval of an abbreviated SIP revision replacing
EPA's default allocations of CSAPR emission allowances with state-
determined allocations, as discussed in section IV above.
Large electricity generating units in Missouri are also subject to
an additional CSAPR FIP requiring them to participate in the Federal
CSAPR NOX Ozone Season Trading Program. While Missouri's SIP
submittal also seeks to replace the default allocations of CSAPR
NOX Ozone Season allowances to Missouri units, EPA is not
acting on that portion of the SIP submittal at this time. Approval of
this SIP revision concerning other CSAPR trading programs has no effect
on the CSAPR NOX Ozone Season Trading Program as applied to
Missouri units, and the FIP requiring the units to participate in that
program remains in place.
VI. Incorporation by Reference
In this rule, EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, EPA is finalizing the incorporation by reference of the Missouri
Regulations described in the direct final amendments to 40 CFR part 52
set forth below. EPA has made, and will continue to make, these
documents generally available electronically through
www.regulations.gov and at the appropriate EPA office (see the
ADDRESSES section of this preamble for more information).
VII. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this action:
Is not a significant regulatory action subject to review
by the Office of Management and Budget under Executive Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
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);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because this rulemaking does not involve technical standards; and
Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
The SIP is not approved to apply on any Indian reservation land or
in any other area where EPA or an Indian tribe has demonstrated that a
tribe has jurisdiction. In those areas of Indian country, the rule does
not have tribal implications and will not impose substantial direct
costs on tribal governments or preempt tribal law as specified by
Executive Order 13175 (65 FR 67249, November 9, 2000).
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a
[[Page 41845]]
report containing this action and other required information to the
U.S. Senate, the U.S. House of Representatives, and the Comptroller
General of the United States prior to publication of the rule in the
Federal Register. A major rule cannot take effect until 60 days after
it is published in the Federal Register. This action is not a ``major
rule'' as defined by 5 U.S.C. 804(2).
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by August 29, 2016. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this action for the purposes of judicial review nor
does it extend the time within which a petition for judicial review may
be filed, and shall not postpone the effectiveness of such rule or
action. This action may not be challenged later in proceedings to
enforce its requirements. (See section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Administrative practice and procedure,
Air pollution control, Incorporation by reference, Intergovernmental
relations, Nitrogen dioxide, Ozone, Particulate Matter, Reporting and
recordkeeping requirements, Sulfur oxides.
Dated: June 16, 2016.
Mark Hague,
Regional Administrator, Region 7.
For the reasons stated in the preamble, EPA amends 40 CFR part 52
as set forth below:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart AA-Missouri
0
2. In Sec. 52.1320:
0
a. Revise the section heading.
0
b. In the table in paragraph (c), under Chapter 6, add entries ``10-
6.372'' and ``10-6.376'' in numerical order.
The revisions read as follows:
Sec. 52.1320 Identification of plan.
* * * * *
(c)* * *
EPA-Approved Missouri Regulations
----------------------------------------------------------------------------------------------------------------
State
Missouri citation Title effective date EPA approval date Explanation
----------------------------------------------------------------------------------------------------------------
Missouri Department of Natural Resources
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Chapter 6--Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control
Regulations for the State of Missouri
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
10-6.372................. Cross-State Air Pollution 12/30/15 6/28/16 [Insert
Rule Annual NOX Trading Federal Register
Allowance Allocations. citation].
10-6.376................. Cross-State Air Pollution 12/30/15 6/28/16 [Insert
Rule Annual SO2 Trading Federal Register
Allowance Allocations. citation].
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
[FR Doc. 2016-15048 Filed 6-27-16; 8:45 am]
BILLING CODE 6560-50-P