[Federal Register Volume 65, Number 203 (Thursday, October 19, 2000)]
[Proposed Rules]
[Pages 62679-62681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-26901]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[DC048-2022; FRL-6887-8]


Approval and Promulgation of Air Quality Implementation Plans; 
District of Columbia; Nitrogen Oxides Budget Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP) 
revision submitted by the District of Columbia (the District). This 
revision implements the District's portion of the Ozone Transport 
Commission's (OTC) September 27, 1994 Memorandum of Understanding (MOU) 
which describes a regional nitrogen oxides ( NOX) cap and 
trade program that will significantly reduce NOX emissions 
generated within the Ozone Transport Region (OTR). The intended effect 
of this action is to propose approval of the District's regulations 
entitled, NOX Emissions Budget Program as a SIP revision in 
accordance with the requirements of the Clean Air Act.

DATES: Written comments must be received on or before November 9, 2000.

ADDRESSES: Written comments may be mailed to David L. Arnold, Chief, 
Ozone & Mobile Sources Branch, Mailcode 3AP21, U.S. Environmental 
Protection Agency, Region III, 1650 Arch Street, Philadelphia, 
Pennsylvania 19103. Copies of the documents relevant to this action are 
available for public inspection during normal business hours at the Air 
Protection Division, U.S. Environmental Protection Agency, Region III, 
1650 Arch Street, Philadelphia, Pennsylvania 19103; and District of 
Columbia Department of Public Health, Air Quality Division, 51 N 
Street, N.E., Washington, DC 20002.

FOR FURTHER INFORMATION CONTACT: Cristina Fernandez, (215) 814-2178, or 
via e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On August 28, 2000, the District's Department of Health submitted a 
revision to its SIP. The revision to the SIP includes the addition of a 
new Chapter 10, Nitrogen Oxides Emissions Budget Program, to Title 20 
of the District of Columbia Municipal Regulations (DCMR).
    The District's NOX Budget Program regulations are part 
of a regional NOX

[[Page 62680]]

reduction program based upon an MOU drawn between the member states of 
the OTC. The OTC adopted a MOU on September 27, 1994, committing the 
signatory states to the development and implementation of a two phase 
region-wide reduction in NOX emissions by 1999 and 2003, 
respectively. As reasonably available control technology (RACT) to 
reduce NOX emissions was required to be implemented by May 
of 1995, the MOU refers to the reduction in NOX emissions to 
be achieved by 1999 as Phase II; and the reduction in NOX 
emissions to be achieved by 2003 as Phase III. The OTC member states 
include Maine, New Hampshire, Vermont, Massachusetts, Connecticut, 
Rhode Island, New York, New Jersey, Pennsylvania, Maryland, Delaware, 
the northern counties of Virginia, and the District of Columbia. All of 
the OTC members, with the exception of the Commonwealth of Virginia, 
signed the September 27, 1994 MOU. The OTC MOU requires a reduction in 
ozone season NOX emissions from utility and large industrial 
combustion facilities within the OTR to further the effort to achieve 
the health-based National Ambient Air Quality Standard (NAAQS) for 
ozone. In the MOU, the OTC states agreed to propose regulations for the 
control of NOX emissions in accordance with the following 
guidelines:
    1. The level of NOX required would be established from a 
1990 baseline emissions level.
    2. The reduction would vary by location, or zone, and would be 
implemented in two phases utilizing a region wide trading program.
    3. The reduction would be determined based on the less stringent of 
each of the following:
    a. By May 1, 1999, the affected facilities in the inner zone shall 
reduce their rate of NOX emissions by 65% from baseline, or 
emit NOX at a rate no greater than 0.20 pounds per million 
Btu. (This is a Phase II requirement.)
    b. By May 1, 1999, the affected facilities in the outer zone shall 
reduce their rate of NOX emissions by 55% from baseline, or 
shall emit NOX at a rate no greater than 0.20 pounds per 
million Btu. (This is a Phase II requirement.)
    c. By May 1, 2003, the affected facilities in the inner and outer 
zones shall reduce their rate of NOX emissions by 75% from 
baseline, or shall emit NOX at a rate no greater than 0.15 
pounds per million Btu. (This is a Phase III requirement.)
    d. By May 1, 2003, the affected facilities in the Northern zone 
shall reduce their rate of NOX emissions by 55% from 
baseline, or shall emit NOX at a rate no greater than 0.20 
pounds per million Btu. (This is a Phase III requirement.)
    A Task Force of representatives from the OTC states, organized 
through the Northeast States for Coordinated Air Use Management 
(NESCAUM) and the Mid-Atlantic Regional Air Management Association 
(MARAMA), was charged with the task of developing a Model Rule that 
would implement the program defined by the OTC MOU. During 1995 and 
1996, the NESCAUM/MARAMA NOX Budget Task Force worked with 
EPA and developed a model rule as a template for OTC states to adopt 
their own rules to implement the OTC MOU. The model was issued May 1, 
1996. The model rule was developed by and for the OTC states to 
implement the Phase II reductions called for in the MOU to be achieved 
by May 1, 1999. The model rule does not include the implementation of 
Phase III.
    The regulations of the District's NOX Budget Program, 20 
DCMR 1000, are based solely upon the ``NESCAUM/MARAMA NOX 
Budget Rule'' issued in May 1, 1996. The model rule was developed by 
the states in the OTR using the EPA's economic incentive rules (67 FR 
16690) which were published on April 7, 1994, as the general regulatory 
framework.
    The District of Columbia's OTC NOX Budget Program 
establishes NOX emission allowances for each ozone season of 
each year from May 1st through September 30th. This program identifies 
the budgeted sources and identifies the number of allowances each 
budget source is allocated.
    The District's NOX Budget Program includes the adoption 
of a new chapter: Chapter 10--Nitrogen Oxides Emissions Budget Program. 
Chapter 10--Nitrogen Oxides Emissions Budget Program is divided in 
fourteen sections: (1000) Applicability; (1001) General Provisions; 
(1002) Allowance Allocation; (1003) Permits; (1004) Allowance Transfer 
and Use; (1005) Allowance Banking; (1006) NOX Allowance 
Tracking System; (1007) Emission Monitoring; (1008) Record Keeping; 
(1009) Reporting; (1010) End-of-Season Reconciliation; (1011) 
Compliance Certification; (1012) Penalties; (1013) Program Audit; 
(1099) Definitions and Abbreviations.

II. Proposed Action

    EPA is proposing to approve the SIP revision request submitted for 
parallel processing by the District's Department of Health on August 
28, 2000. The SIP revision consists of the District's proposed Chapter 
10--Nitrogen Oxides Emissions Budget Program, for implementing Phase II 
of the OTC's MOU to reduce nitrogen oxides.
    This revision is being proposed under a procedure called parallel 
processing, whereby EPA proposes rulemaking action concurrently with a 
state's procedures for amending its regulations. If the proposed 
revision is substantially changed in areas other than those identified 
in this notice, EPA will evaluate those changes and may publish another 
proposed rulemaking. If no substantial changes are made other than 
those areas cited in this notice, we will publish a final rulemaking on 
the revision. The final rulemaking action by EPA will occur only after 
the SIP revision has been adopted by the District of Columbia and 
submitted formally to EPA for incorporation into the SIP. Interested 
parties may participate in the Federal rulemaking procedure by 
submitting written comments to the EPA Regional office listed in the 
ADDRESSES section of this notice. These comments will be considered 
before taking any final action. EPA calls your attention to the 
November 9, 2000 deadline date for submittal of comments on this 
proposed action to approve this SIP revision submitted by the District 
of Columbia. The EPA is providing a shortened time period for comment 
for two reasons. As an initial matter, these revisions are non-
controversial and EPA does not expect comment because the District 
adopted the model rule developed by the NESCAUM and MARAMA states. 
Moreover, these SIP revisions are necessary for full approval of the 
attainment demonstration SIP for the Metropolitan Washington, D.C. 
ozone nonattainment area. The EPA is currently under an obligation to 
complete rulemaking by November 15, 2000 fully approving the attainment 
demonstration for the Metropolitan Washington, D.C. ozone nonattainment 
area or, in the alternative, proposing a federal implementation plan.

III. Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. This action merely proposes to approve state law as meeting 
federal requirements and imposes no additional requirements beyond 
those imposed by state law. Accordingly, the Administrator certifies 
that this proposed rule will not have a significant economic impact on 
a substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). Because this rule proposes to

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approve pre-existing requirements under state law and does not impose 
any additional enforceable duty beyond that required by state law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4). For the same reason, this proposed rule 
also does not significantly or uniquely affect the communities of 
tribal governments, as specified by Executive Order 13084 (63 FR 27655, 
May 10, 1998). This proposed rule will not have substantial direct 
effects on the States, on the relationship between the national 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government, as specified 
in Executive Order 13132 (64 FR 43255, August 10, 1999), because it 
merely proposes to approve a state rule implementing a federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the Clean Air Act. This 
proposed rule also is not subject to Executive Order 13045 (62 FR 
19885, April 23, 1997), because it is not economically significant. In 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the Clean Air Act. In this 
context, in the absence of a prior existing requirement for the State 
to use voluntary consensus standards (VCS), EPA has no authority to 
disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing 
this proposed rule, EPA has taken the necessary steps to eliminate 
drafting errors and ambiguity, minimize potential litigation, and 
provide a clear legal standard for affected conduct. EPA has complied 
with Executive Order 12630 (53 FR 8859, March 15, 1988) by examining 
the takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Takings'' issued under the Executive order. 
This proposed rule to approve the District of Columbia's Nitrogen 
Oxides Emissions Budget Program regulations to implement Phase II of 
the OTC MOU does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Nitrogen dioxide, 
Ozone, Reporting and recordkeeping requirements.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: October 13, 2000.
Thomas Voltaggio,
Acting Regional Administrator, Region III.
[FR Doc. 00-26901 Filed 10-18-00; 8:45 am]
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