[Federal Register Volume 66, Number 217 (Thursday, November 8, 2001)]
[Rules and Regulations]
[Pages 56449-56454]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27933]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IL208-2, IL209-2; FRL-7077-9]


Approval and Promulgation of Implementation Plans; Illinois 
NOX Regulations

AGENCY: Environmental Protection Agency (USEPA).

ACTION: Final rule.

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[[Page 56450]]

SUMMARY: USEPA is approving Illinois regulations to control emissions 
of nitrogen oxides ( NOX). This action approves rules 
regulating cement kilns and rules regulating industrial boilers and 
turbines. USEPA is conducting separate rulemaking on a third set of 
rules regulating electricity generating units. USEPA concludes in this 
action that these three sets of rules satisfy the requirements known as 
the NOX SIP Call.
    USEPA proposed this action on June 28, 2001, at 66 FR 34382. USEPA 
received comments from three commenters. The Illinois Environmental 
Protection Agency (Illinois EPA) supports USEPA's proposed action and 
urges USEPA action on rules granting credit for voluntary 
NOX emission reductions (``Subpart X''). The Illinois 
Environmental Regulatory Group (IERG) commented that USEPA may not 
reach a conclusion on the overall adequacy of Illinois' NOX 
regulations unless and until USEPA has completed rulemaking on all of 
Illinois' NOX regulations including Subpart X. LTV Steel 
believes that it should receive a greater number of allowances to 
reflect a controlled emission rate more consistent with that of other 
sources, and requests confirmation that emissions monitoring need not 
begin until May 31, 2003. USEPA responds to Illinois EPA and IERG that 
we will conduct rulemaking on Subpart X in the near future but we do 
not agree with IERG that such rulemaking is a prerequisite to judging 
whether Illinois has an adequate SIP. USEPA responds to LTV Steel that 
the proposed number of allowances appropriately reflects 60 percent 
control of that unit. USEPA concurs with a delay for emission 
monitoring for sources not seeking early reduction credits, but states 
that the acceptable date is May 1, 2003, not May 31, 2003.

EFFECTIVE DATE: This action will be effective on December 10, 2001.

ADDRESSES: Copies of Illinois' submittals and other information are 
available for inspection during normal business hours at the following 
address: (We recommend that you telephone John Summerhays at (312) 886-
6067, before visiting the Region 5 Office.)
    United States Environmental Protection Agency, Region 5, Air 
Programs Branch (AR-18J), Regulation Development Section, 77 West 
Jackson Boulevard, Chicago, Illinois 60604.

FOR FURTHER INFORMATION CONTACT: John Summerhays, Environmental 
Scientist, United States Environmental Protection Agency, Region 5, Air 
Programs Branch (AR-18J), Regulation Development Section, 77 West 
Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6067, 
([email protected]).

SUPPLEMENTARY INFORMATION: This supplementary information section is 
organized as follows:

I. What did USEPA propose?
II. What are USEPA's responses to comments?
    1. Illinois EPA
    2. IERG
    3. LTV Steel
III. What is USEPA's final action?
IV. Administrative requirements.

I. What Did USEPA Propose?

    Illinois' submittals relating to control of nitrogen oxides 
(NOX) emissions include four principal sets of rules, all of 
which are in Title 35 of the Illinois Administrative Code, Part 217: 1) 
Subpart W, regulating electric generating units, submitted February 23, 
2001, 2) Subpart T, regulating cement kilns, submitted April 9, 2001, 
3) Subpart U, regulating other large boilers and turbines, submitted 
May 1, 2001, and 4) Subpart X, providing credit for voluntary 
NOX emission reductions, also submitted May 1, 2001. These 
submittals also include a variety of definitional rules, codified in 
Part 211. Separately, on June 18, 2001, Illinois submitted a budget 
demonstration, demonstrating that the regulations in Subparts T, U, and 
W of Part 217 are sufficient to achieve the levels of NOX 
emissions that USEPA budgeted for Illinois. On June 27, 2001, Illinois 
further submitted evidence of signed legislation amending the 
compliance date of these rules to set a fixed compliance date of May 
31, 2004.
    USEPA published proposed rulemaking on Subpart W on August 31, 
2000, at 65 FR 52467. Final rulemaking on Subpart W is published 
elsewhere in today's Federal Register.
    On June 28, 2001, at 66 FR 34382, USEPA published action proposing 
to approve most of the rest of Illinois' NOX emission 
control program. Specifically, in that action, USEPA proposed to 
approve Illinois' rules for cement kilns and for industrial boilers and 
turbines, proposed to approve Illinois' budget demonstration, and 
proposed to conclude that Illinois has satisfied the requirements 
established by USEPA in its rulemaking known as the NOX SIP 
Call. USEPA conducted expedited rulemaking on these rules due to their 
similarity to USEPA's rule recommendations. USEPA proposed to exclude 
Subpart X from this expedited rulemaking but stated its intention to 
propose action on Subpart X in the near future.
    Illinois' budget demonstration submittal also included 
clarifications of selected elements of Illinois' rules. Most notably, 
Illinois clarified two terms used in both its electricity generating 
unit rules and its industrial boiler and turbine rules for limiting 
emissions from sources seeking low emitter status. As described in the 
notice of proposed rulemaking, Illinois clarified that ``potential 
NOX mass emissions'' may be defined as the emissions 
determined either by emissions monitoring according to Part 75 or by 
multiplying hours of operation times maximum potential hourly 
emissions. Illinois further clarified that a source that emits more 
than the allowable number of tons (25 tons or less per ozone season) 
shall be considered to have exceeded its permissible number of hours of 
operation and shall lose its low emitter status. USEPA concurred with 
these interpretations.

II. What Are USEPA's Responses to Comments?

    USEPA received three sets of comments, sent by the Illinois 
Environmental Protection Agency (Illinois EPA) on July 24, 2001, sent 
by the Illinois Environmental Regulatory Group (IERG) dated July 26, 
2001, and sent by LTV Steel Company (``LTV Steel'') also dated July 26, 
2001. The following describes these comments and provides USEPA's 
response.

1. Illinois EPA

    Comment: Illinois EPA supports USEPA's proposed rulemaking. 
Illinois EPA urges action on Subpart X of its NOX 
regulations, which provide credit under specified criteria for sources 
that voluntarily reduce NOX emissions. Illinois EPA 
acknowledges USEPA's rationale for using ``streamlined rulemaking on 
the Illinois rules needed to satisfy USEPA's NOX SIP Call'' 
(i.e. rules restricting NOX emissions from electricity 
generating units, large industrial boilers and turbines, and cement 
kilns). At the same time, Illinois EPA comments favorably on USEPA 
statements that ``Subpart X `provides for an innovative approach to 
obtaining voluntary reductions of NOX emissions''' and that 
USEPA will work with Illinois EPA on Subpart X ``to arrive at a program 
that is `approvable and beneficial to the environment.' ''
    Response: USEPA acknowledges Illinois EPA's support for the 
proposed rulemaking. USEPA concurs that Subpart X is an important set 
of rules and restates its intention to propose rulemaking on Subpart X 
in the near future.

[[Page 56451]]

2. IERG

    Comment: IERG in general ``concurs with the analysis and 
decisions'' in USEPA's proposed rulemaking. However, IERG comments at 
length that USEPA ``cannot grant overall approval to the State's 
submittal unless and until it takes final action approving Subpart X.''
    IERG first notes that the state law authorizing NOX 
emission regulations dictates that the state's rules shall include 
provisions for ``voluntary reductions of NOX emissions * * * 
to provide additional allowances'' for use by trading program 
participants. IERG states that if this ``legislative mandate * * * is 
left unfulfilled, the [Illinois EPA] will be precluded, by Illinois 
law, from administering the NOX trading program rules.'' In 
IERG's view, USEPA recognized this interconnection between state 
regulations and authorizing state legislation when it insisted that an 
unacceptable compliance deadline included in the rules pursuant to 
legislative mandate could not be remedied without amending the 
legislation. Thus, IERG believes that state legislation makes Subpart X 
an ``integral part of Illinois' NOX SIP Call submittal.''
    IERG then comments that ``absent Subpart X, or a variant thereof, 
the State does not have the necessary legal authority to implement the 
plan.'' Legal authority to adopt and implement a plan is one of the 
criteria under 40 CFR 51 Appendix V for a state submittal to be 
complete. Therefore, IERG concludes that ``USEPA's overall approval of 
Illinois' ozone transport SIP Call submittal, and * * * the legal 
authority for Illinois to proceed with the implementation of the 
NOX trading program regulations, can come to fruition only 
after Subpart X is approved.'' IERG also notes that while Subpart X is 
an integral element of Illinois' NOX SIP Call submittal, 
``Subpart X is not an element of Illinois' Chicago area attainment 
demonstration.''
    Response: USEPA agrees in part and disagrees in part with IERG's 
comments. USEPA agrees that it has not completed rulemaking on the 
NOX rules that Illinois has submitted, and USEPA agrees that 
such rulemaking will not be complete until USEPA conducts rulemakings 
on Subpart X. USEPA disagrees, however, as to whether rulemaking on 
Subpart X is a prerequisite for determining whether Illinois has 
satisfied the NOX SIP Call.
    The Illinois legislation quoted by IERG instructs the applicable 
state governmental bodies to propose and adopt regulations on 
NOX emissions pursuant to USEPA's NOX SIP Call. 
The legislation gives more detailed instructions on some points, 
including instructions to adopt provisions for voluntary reductions of 
NOX emissions for allowance generation purposes. The state 
included such provisions in Subpart X.
    USEPA believes that Illinois has fulfilled its obligations under 
the state legislation that provided for the NOX regulations. 
However, USEPA does not share IERG's view that the state legislation 
dictates USEPA's approach to this rulemaking. Illinois' Environmental 
Protection Act provides for a variety of regulations, including 
provisions for water pollution and solid waste regulations and 
including a range of air pollution regulations such as new source 
permitting and the Illinois volatile organic compound trading program. 
Clearly USEPA's action on Illinois' NOX regulations is not 
contingent on action on the range of other regulations pursuant to this 
legislation. All of the new regulations for statewide NOX 
emission control are authorized in a single section of the 
Environmental Protection Act (section 9.9), but this fact does not 
itself mandate that USEPA conduct rulemaking jointly on all elements 
provided for in this section.
    In judging whether it can conduct rulemaking separately on the 
different subparts of Illinois' NOX rules, USEPA instead 
must focus more on the interrelationship of the actual provisions of 
these subparts. Subpart T specifies control requirements for cement 
kilns, which for most sources does not involve tradable allowances. 
Subpart U, addressing industrial boilers and turbines, identifies the 
regulated sources, specifies how many allowances will be issued to 
these sources, and requires these sources to hold allowances at least 
equivalent to their emissions. Subpart W, addressing electricity 
generating units, again defines the regulated sources, specifies how 
many allowances will be issued to these sources, and requires adequate 
allowance holdings. None of these obligations under any of these 
subparts are altered by any of the provisions of Subpart X.
    Subpart X in essence specifies criteria and procedures by which 
emission units not subject to Subparts T, U, or W that reduce 
NOX emissions may be issued allowances. Issuance of such 
allowances does not alter the compliance obligations of sources under 
Subparts T, U, or W. Even if a source regulated under Subparts U or W 
or possibly T may ultimately take possession of allowances potentially 
issued under Subpart X, such possession only alters the source's method 
of compliance and does not alter the basic compliance obligation, in 
particular the obligation to hold adequate allowances. This rationale 
is similar to the rationale by which USEPA judges Subparts U and W to 
be independent: although Subpart U can affect the number of allowances 
available for purchase by Subpart W sources, the provisions of Subpart 
U have no effect on the compliance obligations of Subpart W sources. 
Therefore, USEPA could choose to conduct separate rulemakings on 
Subpart U and Subpart W. Thus, all four subparts of Part 217 are 
independent from each other, and for example USEPA may choose to 
conduct rulemaking on Subpart X separately from its rulemaking on other 
subparts of Part 217.
    From USEPA's perspective, Subpart X is essentially no more or less 
independent from Subparts U and W than it is from the NOX 
control regulations in other Eastern states. While Illinois' focus 
presumably was on providing an alternative set of allowances for 
Illinois sources, these allowances would also be available for use by 
sources in other states subject to the NOX SIP Call. Thus, 
rulemaking on Subpart X is no more a prerequisite to approving and 
implementing Subparts U and W than it is to approving and implementing 
any other state's NOX control regulations.
    The remaining element of IERG's comment questions whether USEPA may 
reach a conclusion on Illinois satisfying the requirements of the 
NOX SIP Call before completing rulemaking on the entire 
submittal, in particular before completing rulemaking on Subpart X. 
USEPA continues to believe that it can judge now whether Illinois has 
satisfied the existing NOX SIP Call requirements. Through 
the rules of Subparts T, U, and W, Illinois has limited emissions from 
cement kilns, industrial boilers and turbines, and electricity 
generating units, respectively. Illinois submitted a budget 
demonstration showing that these three subparts of the Part 217 rules 
are adequate to assure that NOX emissions in Illinois remain 
within levels currently budgeted for the State under the NOX 
SIP Call. USEPA proposed to approve this demonstration.
    The central requirement of the NOX SIP Call is for each 
affected state to assure that NOX emissions do not exceed 
the budgeted levels. Illinois' budget demonstration shows that the 
requirements of Subparts T, U, and W assure achievement of these 
budgeted

[[Page 56452]]

 NOX emission levels in Illinois. That is, even before 
completing rulemaking on Subpart X, USEPA's rulemaking on Subparts T, 
U, and W suffice to satisfy fully the existing requirements of the 
NOX SIP Call.
    As a point of clarification, the existing requirements of the 
NOX SIP Call are less stringent than USEPA expects these 
requirements to become. The difference principally reflects a court 
remand on the portion of the NOX SIP Call pertaining to 
control of stationary internal combustion engines. USEPA labels the 
existing requirements as Phase I of the NOX SIP Call, which 
USEPA expects to amend with Phase II budgets reflecting presumed 
control of internal combustion engines. USEPA is only evaluating the 
Illinois regulations against the existing, Phase I requirements; USEPA 
will obviously evaluate Illinois' regulations with respect to Phase II 
requirements only after USEPA establishes those requirements.
    USEPA's approach for judging satisfaction of existing 
NOX SIP Call requirements is the same approach it is using 
to judge the contribution of these rules toward attaining the ozone 
standard. Subparts T, U, and W each achieve a quantifiable reduction in 
NOX emissions. For purposes of the NOX SIP Call, 
USEPA must judge whether the collective reductions suffice to assure 
that Illinois' NOX emissions budget is achieved. For 
purposes of the attainment demonstration, USEPA must judge whether the 
collective reductions suffice to assure attainment. The intention of 
Subpart X is neither to increase nor to decrease NOX 
emissions in Illinois. Therefore, for both the NOX SIP Call 
and the attainment demonstration, USEPA may judge whether the 
applicable requirements are satisfied without needing first to evaluate 
Subpart X.

3. LTV Steel

    Comment: LTV Steel agrees in general with amending Illinois' 
NOX emissions budget to add LTV Steel's Boiler 4B to the 
list of sources subject to allowance holding requirements. However, LTV 
Steel believes that a larger quantity of emissions should be budgeted 
for this boiler. Since Illinois is issuing allowances to each source 
according to its budgeted emissions, LTV Steel's recommendation is 
expressed in terms of the number of allowances to be issued to LTV 
Steel for this boiler.
    LTV Steel provides data showing that the proposed budgeted 
emissions for Boiler 4B ``is equivalent to an emission rate of less 
than 0.146 lb/mmBTU''. LTV Steel objects that the budgeted emission 
rate for Boiler 4B ``should not be more stringent than the [0.15 lb/
mmBTU emission rate budgeted for electricity generating units]''.
    LTV Steel quotes from USEPA's NOX SIP Call rulemaking of 
October 27, 1998, as follows: ``EPA determined the aggregate emission 
levels for large non-electric generating units in each State budget 
based upon a 60 percent reduction * * *. The 60 percent reduction 
results in an average emission rate across the region of 0.17 lbs/mmBTU 
for large non-electric generating units. Therefore, initial unadjusted 
allocations to existing large non-electric generating units would be 
based on actual heat input data (in mmBTU) for the units multiplied by 
an emission rate of 0.17 lb/mmBTU.'' LTV Steel also provides a similar 
quote from USEPA's rulemaking of January 18, 2000. LTV Steel concludes, 
based on the 1995 heat input for its Boiler 4B, that the unit should 
receive allowances for 70 tons per ozone season rather than 60.
    Response: USEPA and LTV Steel agree on most points: we agree that 
Boiler 4B should be subject to requirements as a large boiler, we agree 
that controlled emissions for this boiler should be calculated 
consistently with other units, and we agree that 1995 conditions 
(projected to 2007) should be the basis for the calculations. However, 
we do not agree on whether the emissions budget for LTV Steel's boiler 
should be calculated at 0.17 lb/mmBTU or at 60 percent control.
    LTV Steel's Boiler 4B burns a combination of natural gas and coke 
oven gas. Using emissions data collected at the facility, Illinois EPA 
and USEPA estimate that 60 percent control of this boiler would yield 
an emission factor slightly below 0.15 lb/mmBTU.
    USEPA is addressing emissions budgeted for this unit and not the 
allocation for the unit; Illinois then has latitude in how it 
distributes allowance allocations. This distinction appears moot in 
Illinois because the state's rules provide allowances according to each 
source's portion of the budget (minus a new source set-aside), but the 
distinction is key to understanding the statement in USEPA's 
rulemaking. The quoted statement clearly says that emission budgets for 
large non-electricity generating units reflect 60 percent control. As 
quoted by LTV Steel, the rulemaking notice explains that this control 
level for industrial boilers and turbines on average reflects an 
emission factor of 0.17 lbs/mmBTU, so a state could at least 
approximately achieve the budgeted NOX emission level by 
issuing allocations at 0.17 lbs/mmBTU. However, states also have the 
option to allocate allowances according to the 60 percent control 
level, which is the option Illinois has chosen. Regardless of how the 
state chooses to distribute allowances, USEPA must calculate the budget 
adjustment for LTV Steel's Boiler 4B according to 60 percent control.
    Illinois' rules provide an allowance allocation to LTV Steel 
according to this budget adjustment. Therefore, LTV Steel must have an 
allocation for Boiler 4B that reflects 60 percent control.
    The second rulemaking quoted by LTV Steel is USEPA's rulemaking on 
petitions under Clean Air Act section 126. Besides the fact that this 
rulemaking does not apply directly to Illinois, the section 126 context 
differs from the NOX SIP Call context in a way that makes 
the quoted statement irrelevant. In its section 126 action, USEPA was 
responsible for determining allowance allocations. USEPA chose here to 
issue allowances according to an average emission level, but this 
choice in no way requires states to use the same approach in allocating 
allowances under the NOX SIP Call. In addition, the quoted 
statements suggest that had USEPA found 60 percent control to reflect a 
lower average emission rate, USEPA would have allocated allowances 
according to that lower rate.
    As noted in the proposed rulemaking on Illinois' rules, USEPA has 
provided detailed budget calculations on its web site, at ftp://ftp.epa.gov/EmisInventory/ NOxSIPCall_Mar2_2000/. The spreadsheet for 
Illinois available at this site clearly calculates the emissions budget 
for industrial boilers and turbines on the basis of 60 percent control. 
Thus, USEPA is adjusting Illinois' budget to include LTV Steel's Boiler 
4B at a 60 percent control level, which under Illinois' rules will 
result in LTV Steel receiving an allocation for 60 tons of allowances 
for each ozone season.
    Comment: LTV Steel requested confirmation that the deadline for 
installing and operating continuous emissions monitoring has been 
delayed to May 31, 2003.
    Response: Illinois' rule at section 217.456(c) subjects sources 
such as LTV Steel to the monitoring requirements of 40 CFR 96 Subpart 
H. (Electricity generating units are similarly subject to the 40 CFR 96 
Subpart H requirements pursuant to section 217.756(c).) As promulgated, 
40 CFR 96.70 requires that monitoring begin at least by May 1, 2002, 
and earlier if the source seeks early reduction credits. However, a 
decision by the Court of Appeals for the District of Columbia Circuit 
has delayed the emissions compliance deadline of

[[Page 56453]]

the NOX SIP Call by one year plus one month.
    While 40 CFR 96 Subpart H has not been expressly modified, USEPA 
recognizes that the change in the compliance deadline warrants a delay 
in the deadline for emissions monitoring for sources not seeking early 
reduction credits. The purposes of this monitoring are best achieved by 
starting at the beginning of the defined ozone season rather than one 
month later. Therefore, USEPA believes that the Court of Appeals 
decision warrants a one year delay but not a thirteen month delay in 
the commencement of emissions monitoring for sources not seeking early 
reduction credits.
    In summary, USEPA affirms that installation and operation of 
continuous emissions monitoring may be delayed until May 1, 2003, for 
sources that are not seeking early reduction credits.

III. What Action Is USEPA Taking?

    USEPA is taking final action approving Subparts T and U of Part 217 
of Title 35 of the Illinois Administrative Code, regulating 
NOX emissions from cement kilns and industrial boilers and 
turbines, respectively. This approval reflects selected rule 
interpretations described in the notice of proposed rulemaking. USEPA 
is making two minor amendments to the budget as requested by Illinois, 
adding a boiler owned by LTV Steel and deleting a boiler owned by 
University of Illinois from the inventory of large boilers and 
turbines. By separate action today, USEPA is approving Subpart W, 
regulating NOX emissions from electricity generating units.
    Illinois' budget demonstration shows that these three sets of 
regulations provide sufficient limitations on NOX emissions 
in the state to satisfy the existing requirements of USEPA's 
NOX SIP Call. USEPA is approving this budget demonstration. 
With this approval and the approval of the three relevant sets of 
regulations, USEPA concludes that Illinois has fully satisfied current 
(``Phase I'') requirements under the NOX SIP Call.
    USEPA wishes to clarify its views on one aspect of compliance 
accounting under Illinois' rule. USEPA's administration of a multi-
state trading program requires that the states have consistent 
compliance accounting procedures. USEPA will be using procedures in 
which compliance is assessed on a unit-by-unit basis. Illinois' rules 
for industrial boilers and turbines are somewhat unclear on this point: 
multiple rule paragraphs indicate that compliance is assessed on a 
unit-by-unit basis, and yet Section 217.456 (d)(1) suggests that the 
source may be in compliance if the source has adequate allowances on a 
source-wide basis.
    Illinois provided clarification on this point in a letter to USEPA 
dated September 20, 2001. Illinois specified that its rules must be 
interpreted to require compliance on a unit-by-unit basis. 
Consequently, if a source holds a sufficient total number of allowances 
but misdistributes these allowances such that one or more unit accounts 
(supplemented by available allowances from the source's overdraft 
account) hold insufficient allowances, those units will be in 
violation. Each violating unit will be subject to the 3 to 1 deduction 
of allowances pursuant to Illinois' section 217.456 (f)(5) and USEPA's 
40 CFR 96.54 (d)(1). USEPA concurs with and approves this 
interpretation of Illinois' rules.
    The regulations approved here, along with the regulations governing 
electricity generating units, are an important part of Illinois' 
attainment demonstration for the Chicago area. USEPA finds these 
regulations creditable for this purpose.
    USEPA is also approving all the definitions of Part 211 submitted 
in conjunction with the Subpart T and Subpart U submittals. These part 
211 rules provide a variety of definitions of terms used in part 217 
that are generally quite similar to USEPA's recommended definitions. 
These rules also include a definition of the term ``source'' that 
brings that definition into conformance with state law and USEPA 
recommendations.
    Because USEPA has not approved Subpart X, allowances may not be 
issued for sources that voluntarily reduce NOX emissions 
pursuant to these rules. In addition, provisions in Subpart U implying 
creditability of emission reductions pursuant to Subpart X are 
inoperative prior to approval of Subpart X.
    In order to fulfill its obligation for rulemaking on the entire 
Illinois submittal, USEPA must conduct rulemaking on Subpart X. While 
USEPA is taking no action today on Subpart X, USEPA intends to conduct 
rulemaking on Subpart X in the near future.
    USEPA has reviewed the completeness of Illinois' submittals of 
February 23, 2001, April 9, 2001, May 1, 2001, and June 18, 2001. USEPA 
concludes that these submittals are complete and represent a complete 
response to Phase I of USEPA's NOX SIP Call. Consequently, 
USEPA concludes that Illinois has remedied the prior deficiency 
identified on December 26, 2000 (65 FR 81366), namely Illinois' prior 
failure to submit a SIP in response to the NOX SIP Call. 
USEPA's December 2000 finding started an 18-month clock for the 
mandatory imposition of sanctions and the obligation for USEPA to 
promulgate a FIP within 24 months. Today's action terminates both the 
sanctions clock and USEPA's FIP obligation.

IV. Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. For this 
reason, this action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action 
merely approves state law as meeting federal requirements and imposes 
no additional requirements beyond those imposed by state law. 
Accordingly, the Administrator certifies that this 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 approves 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). This rule also does not 
have a substantial direct effect on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it 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 approves 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 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, USEPA'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

[[Page 56454]]

existing requirement for the State to use voluntary consensus standards 
(VCS), USEPA has no authority to disapprove a SIP submission for 
failure to use VCS. It would thus be inconsistent with applicable law 
for USEPA, 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 rule, USEPA has taken the necessary steps to 
eliminate drafting errors and ambiguity, minimize potential litigation, 
and provide a clear legal standard for affected conduct. USEPA 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 rule does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 
et seq.).
    The Congressional Review Act, 5 U.S.C. section 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. USEPA will submit a report containing 
this rule 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. section 804(2). This rule will be effective December 10, 2001.
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by January 7, 2002. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule 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, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen oxides, Ozone, 
Reporting and recordkeeping requirements.

    Dated: September 25, 2001.
Jo Lynn Traub,
Acting Deputy Regional Administrator, Region 5.

    For the reasons stated in the preamble, part 52, chapter I, title 
40 of the Code of Federal Regulations are amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

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

Subpart O--Illinois

    2. Section 52.720 is amended by adding paragraph (c)(159), to read 
as follows:


Sec. 52.720  Identification of plan.

* * * * *
    (c) * * *
    (159) On April 9, 2001, David Kolaz, Chief, Bureau of Air, Illinois 
Environmental Protection Agency, submitted rules regulating 
NOX emissions from cement kilns. On May 1, 2001, Mr. Kolaz 
submitted rules regulating NOX emissions from industrial 
boilers and turbines and requesting two minor revisions to the Illinois 
NOX emissions budget. On June 18, 2001, Mr. Kolaz submitted 
a demonstration that Illinois' regulations were sufficient to assure 
that NOX emissions in Illinois would be reduced to the level 
budgeted for the state by USEPA. On September 20, 2001, Mr. Kolaz sent 
a letter clarifying that Illinois' rules for industrial boilers and 
turbines require compliance on a unit-by-unit basis.
    (i) Incorporation by reference.
    (A) Illinois Administrative Code, Title 35, Subtitle B, Chapter I, 
subchapter c, Part 211, Definitions, sections 211.955, 211.960, 
211.1120, 211.3483, 211.3485, 211.3487, 211.3780, 211.5015, and 
211.5020, published at 25 Ill. Reg. 4582, effective March 15, 2001.
    (B) Illinois Administrative Code, Title 35, Subtitle B, Chapter I, 
subchapter c, Part 217, Subpart A, Section 217.104, Incorporations by 
Reference, published at 25 Ill. Reg. 4597, effective March 15, 2001.
    (C) Illinois Administrative Code, Title 35, Subtitle B, Chapter I, 
subchapter c, Part 217, Subpart T, Cement Kilns, sections 217.400, 
217.400, 217.402, 217.404, 217.406, 217.408, and 217.410, published at 
25 Ill. Reg. 4597, effective March 15, 2001.
    (D) Illinois Administrative Code, Title 35, Subtitle B, Chapter I, 
subchapter c, Part 211, Sections 211.4067 and 211.6130, published at 25 
Ill. Reg. 5900, effective April 17, 2001.
    (E) Illinois Administrative Code, Title 35, Subtitle B, Chapter I, 
subchapter c, Part 217, Subpart U, NOX Control and Trading 
Program for Specified NOX Generating Units, sections 
217.450, 217.452, 217.454, 217.456, 217.458, 217.460, 217.462, 217.464, 
217.466, 217.468, 217.470, 217.472, 217.474, 217.476, 217.478, 217.480 
and 217.482, published at 25 Ill. Reg. 5914, effective April 17, 2001.
    (ii) Additional material.
    (A) Letter dated June 18, 2001, from David Kolaz, Illinois 
Environmental Protection Agency, to Cheryl Newton, United States 
Environmental Protection Agency.
    (B) Letter dated September 20, 2001, from David Kolaz, Illinois 
Environmental Protection Agency, to Bharat Mathur, United States 
Environmental Protection Agency.

    3. Section 52.726 is amended by adding paragraph (cc) to read as 
follows:


Sec. 52.726  Control strategy: ozone.

* * * * *
    (cc) Approval--Illinois has adopted and USEPA has approved 
sufficient NOX emission regulations to assure that it will 
achieve the level of NOX emissions budgeted for the State by 
USEPA. USEPA has made two minor budget revisions requested by Illinois, 
adding a boiler owned by LTV Steel and deleting a boiler owned by the 
University of Illinois from the inventory of large NOX 
sources.

[FR Doc. 01-27933 Filed 11-7-01; 8:45 am]
BILLING CODE 6560-50-P