[Federal Register Volume 62, Number 121 (Tuesday, June 24, 1997)]
[Proposed Rules]
[Pages 34039-34040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16512]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 73

[FRL-5845-2]


Acid Rain Program: Early Reduction Credits

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: Title IV of the Clean Air Act, as amended by Clean Air Act 
Amendments of 1990, (the Act) authorizes the Environmental Protection 
Agency (EPA or Agency) to establish the Acid Rain Program in order to 
reduce the adverse health and ecological impacts of acidic deposition. 
On March 23, 1993, the Agency promulgated final rules allocating 
allowances to utility units, including the criteria and method of 
allocating early reduction credits under section 404(e) of the Act. 
This action implements a settlement of litigation between EPA and a 
utility regarding Phase II early reduction credits. The settlement 
provides a method by which additional allowances may be loaned to units 
receiving early reduction credits as an incentive to further reduce 
emissions prior to the units becoming subject to the applicable Acid 
Rain Program emission limitations.
    The revisions of the early reduction credit program proposed today 
are also being issued as a direct final rule because the Agency views 
the revisions as noncontroversial and anticipates no adverse comments. 
The detailed rationale for the revisions, and the revised rule 
provisions, are set forth in the preamble of the direct final rule. If 
no significant, adverse comments are timely received (see DATES 
section), no further action will be taken on this proposal and the 
direct final rule will become final on the date provided in that 
action.

DATES: Comments. Comments on the regulations proposed by this action 
must be received on or before July 24, 1997, unless a hearing is 
requested by July 7, 1997. If a hearing is requested, written comments 
must be received by August 8, 1997.
    Public Hearing. Anyone requesting a public hearing must contact EPA 
no later than July 7, 1997. If a hearing is held it will take place 
July 8, 1997, beginning at 10:00 am.

ADDRESSES: Comments. All written comments must be identified with the 
appropriate docket number (Docket No. A-97-31) and must be submitted in 
duplicate to EPA Air Docket Section (6102), Waterside Mall, Room M1500, 
1st Floor, 401 M Street, SW, Washington DC 20460.
    Public Hearing. If a public hearing is held, it will be held at the 
EPA Headquarters Auditorium, 401 M Street, SW, Washington, DC. Persons 
interested in attending the hearing or wishing to present oral 
testimony should notify Kathy Barylski, telephone 202-233-9074, in 
advance.
    Docket. Docket No. A-97-31, containing supporting information used 
to develop the proposal, is available for public inspection and copying 
from 8:00 a.m. to 5:30 p.m., Monday through Friday, excluding legal 
holidays, at

[[Page 34040]]

EPA's Air Docket Section at the above address. Information concerning 
the original rules is found in Docket No. A-92-06. A reasonable fee may 
be charged for copying.

FOR FURTHER INFORMATION CONTACT: Kathy Barylski at (202) 233-9074 Acid 
Rain Division (6204J), U.S. Environmental Protection Agency, 401 M St., 
S.W., Washington, DC 20460; or the Acid Rain Hotline at (202) 233-9620. 
Electronic copies of this rulemaking can be accessed through the Acid 
Rain Division website at http://www.epa.gov/acidrain.

SUPPLEMENTARY INFORMATION: In this documet, EPA proposes revisions 
to the early reduction credit regulation of the Acid Rain Program 
that are presented and discussed in detail in a direct final rule 
published in the Final Rules Section of this Federal Register. The 
proposed revisions provide a method by which additional allowances 
may be loaned to units receiving early reduction credits as an 
incentive to further reduce emissions prior to the units becoming 
subject to the applicable Acid Rain Program emission limitations. 
EPA is seeking comment on these proposed revisions. EPA considers 
these revisions to be noncontroversial and anticipates no adverse 
comments. If EPA timely receives significant, adverse comments, EPA 
will publish a document in the Federal Register withdrawing the 
direct final rule. In that event, all public comments received will 
be treated as comments on this proposed rule and will be addressed 
in a subsequent final rulemaking document. EPA will not institute a 
second comment period on this document. Any parties interested in 
commenting on these revisions to Part 73 should do so at this time. 
The direct final rule includes the rule revisions and a detailed 
rationale for them.

Administrative Requirements

A. Executive Order 12866

    Under Executive Order 12866, 58 FR 51735 (October 4, 1993), the 
Administrator must determine whether the regulatory action is 
``significant'' and therefore subject to Office of Management and 
Budget (OMB) review and the requirements of the Executive Order. The 
Order defines ``significant regulatory action'' as one that is likely 
to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities;
    (2) Create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that this rule is not a ``significant regulatory action'' 
because the rule does not meet any of the criteria listed above. As 
such, this action was not submitted to OMB for review.

B. Unfunded Mandates Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded 
Mandates Act'') requires that the Agency prepare a budgetary impact 
statement before promulgating a rule that includes a federal mandate 
that may result in expenditure by State, local, and tribal governments, 
in aggregate, or by the private sector, of $100 million or more in any 
one year. Section 203 requires the Agency to establish a plan for 
obtaining input from and informing, educating, and advising any small 
governments that may be significantly or uniquely affected by the rule.
    Under section 205 of the Unfunded Mandates Act, the Agency must 
identify and consider a reasonable number of regulatory alternatives 
before promulgating a rule for which a budgetary impact statement must 
be prepared. The Agency must select from those alternatives the least 
costly, most cost-effective, or least burdensome alternative that 
achieves the objectives of the rule, unless the Agency explains why 
this alternative is not selected or the selection of this alternative 
is inconsistent with law.
    Because this rule is estimated to result in the expenditure by 
State, local, and tribal governments or the private sector of less than 
$100 million in any one year, the Agency has not prepared a budgetary 
impact statement or specifically addressed the selection of the least 
costly, most cost-effective, or least burdensome alternative. Because 
small governments will not be significantly or uniquely affected by 
this rule, the Agency is not required to develop a plan with regard to 
small governments.
    The revisions to part 73 will not have a significant effect on 
regulated entities or State permitting authorities. The revisions 
represent an economic benefit to the affected utility and a benefit to 
the environment. The early reduction credit program is operated 
entirely by the EPA and, therefore, the changes will not burden the 
State or local permitting authorities.

C. Paperwork Reduction Act

    This rule will increase the information collection requirements of 
the existing regulations, but only for the utilities that are eligible 
and wish to participate in the early reduction credit program. As only 
two utilities are eligible for early reduction credits, an information 
collection report is not required. Therefore, no information collection 
report has been prepared or submitted to the OMB under the Paperwork 
Reduction Act, 44 U.S.C. 3501, et seq.

D. Regulatory Flexibility

    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., requires 
each federal agency to consider potential impacts of its regulations on 
small business ``entities.'' Under 5 U.S.C. 604(a), an agency issuing a 
notice of proposed rulemaking must prepare and make available for 
public comment a regulatory flexibility analysis. Such an analysis is 
not required if the head of an agency certifies that a rule will not 
have a significant economic impact on a substantial number of small 
entities, pursuant to 5 U.S.C. 605(b).
    Today's rule does not impact small entities. The only two utilities 
eligible for early reduction credits are large corporations, not small 
entities. Pursuant to the provisions of 5 U.S.C. 605(b), I hereby 
certify that the revised rule will not have a significant, adverse 
impact on a substantial number of small entities.

E. Miscellaneous

    In accordance with section 117 of the Act, issuance of this rule 
was preceded by consultation with any appropriate advisory committees, 
independent experts, and federal departments and agencies.

List of Subjects in 40 CFR Part 73

    Air pollution control, Electric utilities, Reporting and 
recordkeeping requirements, Sulfur dioxide.

    Dated: June 16, 1997.
Carol M. Browner,
Administrator.
[FR Doc. 97-16512 Filed 6-23-97; 8:45 am]
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