[Federal Register Volume 67, Number 83 (Tuesday, April 30, 2002)]
[Rules and Regulations]
[Pages 21522-21530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10403]



[[Page 21521]]

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Part V





Environmental Protection Agency





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40 CFR Part 97



Section 126 Rule: Revised Deadlines; Final Rule

  Federal Register / Vol. 67 , No. 83 / Tuesday, April 30, 2002 / Rules 
and Regulations  

[[Page 21522]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 97

[FRL-7203-2]


Section 126 Rule: Revised Deadlines

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: In today's action, EPA is revising the compliance date and 
other related dates for sources subject to a final rule published on 
January 18, 2000, known as the Section 126 Rule. The EPA promulgated 
the rule in response to petitions submitted by four Northeastern States 
under section 126 of the Clean Air Act (CAA) for the purpose of 
mitigating interstate transport of nitrogen oxides (NOX) and 
ozone. Nitrogen oxides are one of the main precursors of ground-level 
ozone pollution. The Section 126 Rule requires electric generating 
units (EGUs) and non-electric generating units (non-EGUs) located in 12 
States and the District of Columbia to reduce their NOX 
emissions through a NOX cap-and-trade program.
    Originally, EPA harmonized the Section 126 Rule with a related 
ozone transport rule, known as the NOX State implementation 
plan call (NOX SIP Call), by establishing the same 
compliance date, May 1, 2003. A court action subsequently delayed the 
NOX SIP Call compliance deadline until May 31, 2004. More 
recently, on August 24, 2001, the court temporarily tolled (suspended) 
the Section 126 Rule compliance date for EGUs pending EPA's resolution 
of an issue remanded by the court related to EGU growth factors. On 
April 23, 2002, EPA issued its response to the growth factor remand. 
That action reactivated the compliance period for EGUs after nearly a 
year delay. Therefore, with this final rule, EPA is resetting the EGU 
compliance date and other related dates, such as the monitoring 
certification date. The EPA is also resetting the dates for non-EGU 
sources to match the new dates for EGUs. The new compliance date is May 
31, 2004. In general, other related dates are extended by one year from 
the original deadlines. Today's rule once again aligns the Section 126 
Rule with the NOX SIP Call.

DATES: This final rule is effective April 30, 2002.

ADDRESSES: Documents relevant to this action are available for 
inspection at the Docket Office, located at 401 M Street SW, Room M-
1500, Washington, DC 20460, between 7:30 a.m. and 5:30 p.m., Monday 
through Friday, excluding legal holidays. A reasonable fee may be 
charged for copying.

FOR FURTHER INFORMATION CONTACT: Questions concerning today's action 
should be addressed to Carla Oldham, Office of Air Quality Planning and 
Standards, Air Quality Strategies and Standards Division, C539-02, 4930 
Old Page Road, Research Triangle Park, NC, 27711, telephone (919) 541-
3347, e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

Availability of Related Information

    The official record for the Section 126 Rule, as well as the public 
version, has been established under docket number A-97-43. A public 
version of this record, including printed, paper versions of electronic 
comments, which does not include any information claimed as 
confidential business information, is available for inspection from 
7:30 a.m. to 5:30 p.m., Monday through Friday, excluding legal 
holidays. The official rulemaking record is located at the address in 
ADDRESSES at the beginning of this document. In addition, the Federal 
Register rulemaking actions and associated documents are located at 
http://www.epa.gov/ttn/rto/126.
    The EPA has issued a separate rule on NOX transport 
entitled, ``Findings of Significant Contribution and Rulemaking for 
Certain States in the Ozone Transport Assessment Group Region for 
Purposes of Reducing Regional Transport of Ozone,'' (known as the 
NOX SIP Call). The rulemaking docket for the NOX 
SIP Call (Docket No. A-96-56) contains information and analyses that 
EPA has relied upon in the section 126 rulemaking, and hence documents 
in that docket are part of the rulemaking record for this rule. 
Documents related to the NOX SIP call rulemaking are 
available for inspection in docket number A-96-56 at the address and 
times given above.

Outline

I. What is the Background on the Relationship Between the Section 
126 Rule and the NOX SIP Call?
    A. How Did EPA Originally Harmonize the Section 126 Rule and the 
NOX SIP Call?
    B. How Did Court Actions Affect the Harmonization of the Section 
126 Rule and the NOX SIP Call?
    1. Court Actions on the NOX SIP Call
    2. Court Actions on the Section 126 Rule
II. What is EPA's Response to the Court Remand on EGU Growth 
Factors?
III. What are the New Deadlines for the Section 126 Rule Federal 
NOX Budget Trading Program?
    A. What is the Revised Compliance Date?
    1. EGUs
    2. Non-EGUs
    B. What Are the Other Revised Dates Related to the Compliance 
Date?
    1. Submission of NOX Budget Permit Applications.
    2. Timing Requirements for NOX Allowance Allocations.
    3. Compliance Supplement Pool.
    4. Recordation of NOX Allowance Allocations.
    5. Compliance--Deduction of Banked Allowances.
    6. Monitoring.
    C. What Are the Dates that EPA is Not Changing?
    1. Monitoring and Reporting Deadlines for Early Reduction 
Credits.
    2. Other Miscellaneous Dates
IV. What are the Rulemaking Procedures?
V. What is the Future Rulemaking on the Section 126 Rule Withdrawal 
Provision?
VI. What are the Administrative Requirements?
    A. Executive Order 12866: Regulatory Planning and Review
    B. Unfunded Mandates Reform Act
    C. Executive Order 13132: Federalism
    D. Executive Order 13175: Consultation and Coordination with 
Indian Tribal Governments
    E. Regulatory Flexibility Act
    F. Executive Order 13045: Protection of Children from 
Environmental Health Risks and Safety Risks
    G. National Technology Transfer and Advancement Act
    H. Paperwork Reduction Act
    I. Executive Order 13211: Actions Concerning Regulations that 
Significantly Affect Energy Supply, Distribution, or Use
    J. Judicial Review
    K. Congressional Review Act

I. What Is the Background on the Relationship Between the Section 
126 Rule and the NOX SIP Call?

A. How Did EPA Originally Harmonize the Section 126 Rule and the 
NOX SIP Call?

    In the past several years, EPA has been engaged in two separate 
rulemakings to address the interstate ozone transport problem in the 
eastern half of the United States. These rules, known as the 
NOX SIP Call and the Section 126 Rule, both require 
reductions in NOX emissions, which are precursors to ground-
level ozone formation.
    On October 27, 1998 (63 FR 57356), EPA promulgated the 
NOX SIP Call thereby requiring 22 Eastern States and the 
District of Columbia to reduce statewide NOX emissions to a 
specified level. The rule established dates by which the States must 
submit and implement their NOX reduction plans. Originally, 
EPA established the compliance date as May 1, 2003. The primary 
statutory provision for this rule is CAA section 110(a)(2)(D)(i), under

[[Page 21523]]

which, in general, each SIP is required to include provisions to assure 
that sources within the State do not emit pollutants in amounts that 
significantly contribute to nonattainment or interfere with maintenance 
problems downwind.
    In 1997, while EPA was in the process of developing the 
NOX SIP Call, eight Northeastern States submitted petitions 
under section 126 of the CAA seeking to mitigate significant interstate 
transport of NOX and ozone. Section 126 refers to State 
obligations under CAA section 110(a)(2)(D)(i) as does the 
NOX SIP Call. Section 126 authorizes a State to request EPA 
to make a finding that any major source or group of stationary sources 
in upwind States are significantly contributing to nonattainment, or 
interfering with maintenance, in the petitioning State. If EPA makes 
such a finding, EPA is authorized to establish Federal emission limits 
for the affected sources. The petitions requested that EPA make such 
findings for EGUs and other industrial sources in about 30 States.
    On May 25, 1999 (64 FR 28250), EPA issued a final rule on the 
section 126 petitions. The EPA determined that large EGUs and large 
industrial boilers and turbines (non-EGUs) in 12 States and the 
District of Columbia were significantly contributing to nonattainment 
problems in four of the petitioning States under the 1-hour ozone 
national ambient air quality standard. The Section 126 Rule overlaps 
considerably with the NOX SIP Call. Both the section 126 
petitions and the NOX SIP Call were based on much the same 
set of facts regarding the same pollutants. All of the sources affected 
by the Section 126 Rule are located in States that are covered by the 
NOX SIP Call.
    When EPA issued the May 25, 1999 Section 126 Rule, there was an 
existing requirement under the NOX SIP Call for States to 
reduce their NOX emissions and an explicit and expeditious 
schedule to do so. Therefore, EPA was able to coordinate, or harmonize, 
the Section 126 Rule with the NOX SIP Call. The EPA 
established the same compliance date, May 1, 2003 for both rules. In 
addition, EPA concluded that it was appropriate to structure its action 
on the section 126 petitions to give a State the opportunity to address 
its NOX transport first under the NOX SIP Call 
before EPA would directly regulate sources in the State under the 
Section 126 Rule. Under this approach, EPA gave upwind States an 
opportunity to address the ozone transport problem themselves, but did 
not delay implementation of the NOX transport remedy beyond 
May 1, 2003. Thus, in the May 25, 1999 Section 126 Rule, EPA made 
technical determinations as to which sources were significantly 
contributing but deferred making the Section 126 findings, which would 
trigger the control requirements, as long as States and EPA stayed on 
track to meet the NOX SIP Call obligations. Where a State 
submitted and EPA approved a NOX SIP fully meeting the 
NOX SIP Call, the Section 126 Rule for sources in that State 
would automatically be withdrawn. (See 64 FR 28271-28274; May 25, 
1999). Therefore, in this particular context in which EPA promulgated 
the NOX SIP Call and acted on the section 126 petitions 
within the same time frame, the Federal Section 126 Rule would not go 
into place unless States failed to control their NOX 
transport. This was a practical way to address the overlap between the 
actions that would be required under the NOX SIP Call and 
under the rulemaking on the section 126 petitions. The basis for 
harmonizing the two rules and the interplay of the underlying statutory 
provisions are discussed at length in the May 25, 1999 final rule.

B. How Did Court Actions Affect the Harmonization of the Section 126 
Rule and the NOX SIP Call?

1. Court Actions on the NOX SIP Call
    The NOX SIP Call originally required States to submit 
their NOX SIPs to EPA by September 30, 1999. On May 25, 
1999, in response to a request by States challenging the NOX 
SIP Call, the U.S. Court of Appeals for the District of Columbia 
Circuit (D.C. Circuit or the court) issued a stay of the SIP submission 
deadline pending further order of the court. Michigan v. EPA, 213 F.3d 
663 (D.C. Cir., 2000), cert. denied, 121 S.Ct. 1225 (2001), No. 98-1497 
order (May 25, 1999) (order granting stay in part). Inasmuch as the 
compliance date is linked with the SIP submission date, the stay 
created uncertainty regarding the compliance date. Because there was no 
longer a schedule for the NOX SIP Call, EPA no longer had a 
basis for deferring action under the Section 126 Rule. Therefore, in a 
final rule published on January 18, 2000, EPA moved forward to make the 
findings and activate the control requirements under the Section 126 
Rule (65 FR 2674).
    However, the Section 126 Rule continued to contain a provision 
whereby the section 126 requirements would be automatically withdrawn 
for sources in a State if EPA approved a State's SIP that provided for 
the NOX SIP Call emission reduction requirements by the May 
1, 2003 compliance date.
    On March 3, 2000, a panel of the D.C. Circuit largely upheld the 
NOX SIP Call in Michigan v. EPA, 213 F.3d 663 (D.C. Cir., 
2000), cert. denied, 121 S. Ct. 1225 (2001). Subsequently, on April 11, 
2000, EPA filed a motion with the court to lift the stay of the SIP 
submission date. In response, on June 22, 2000, the court ordered that 
EPA allow the States 128 days from the June 22, 2000 date of the order 
to submit their SIPs. Therefore, SIPs in response to the NOX 
SIP Call were due October 30, 2000.\1\
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    \1\ October 30, 2000 was the first business day following the 
expiration of the 128-day period.
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    On August 30, 2000, the D.C. Circuit ordered that the deadline for 
full implementation of the NOX SIP Call be extended from May 
1, 2003 to May 31, 2004. This extension was calculated in the same 
manner used by the court in extending the deadline for SIP submissions, 
so that sources in States subject to the NOX SIP Call would 
have 1,309 days for implementing the SIP as provided in the original 
NOX SIP Call. This action was in response to a motion filed 
by the industry/labor petitioners.
    As a result of this court order, the NOX SIP Call then 
had a later compliance date than the Section 126 Rule. Thus, where 
States submitted SIPs with the new 2004 deadline, the Section 126 Rule 
would have gone into place for a year before the State began 
controlling its NOX transport under its implementation plan.
2. Court Actions on the Section 126 Rule
    On May 15, 2001, the court ruled on a number of challenges to EPA's 
Section 126 Rule. See Appalachian Power v. EPA, 249 F.3d 1032 (D.C. 
Cir. 2001). While the court's decision largely upheld the Section 126 
Rule, the Court remanded two issues to EPA. The court directed EPA to: 
(1) properly justify either the current or a new set of EGU heat input 
growth rates to be used in estimating State heat input in 2007, and (2) 
either properly justify or alter its categorization of cogenerators 
that sell electricity to the electric grid as EGUs. The EPA is 
responding to the remand related to the categorization of cogenerators 
in a rulemaking that was proposed on February 22, 2002 (67 FR 8396). 
The EPA's response to the growth factor remand is discussed below in 
section II.
    On August 24, 2001, the D.C. Circuit Court tolled (suspended) the 
compliance period for EGUs under the Section 126 Rule as of the May 15, 
2001 decision pending EPA's response to the

[[Page 21524]]

growth factor remand. Appalachian Power v. EPA, 249 F.3d 1052 (D.C. Cir 
2001), Order (August 24, 2001). The temporary suspension of the 
compliance period created uncertainty regarding the ultimate compliance 
date and also how other related dates in the Section 126 Rule would be 
affected. Because of the time needed to fully respond to the growth 
factor remand, the tolling of the compliance period has resulted in a 
delay in the implementation of the Section 126 Rule until the 2004 
ozone season. This has created a need for EPA to once again harmonize 
the Section 126 Rule with the NOX SIP Call.

II. What Is EPA's Response to the Court Remand on EGU Growth 
Factors?

    Over the past 8 months, EPA has been developing its response to the 
court remand on EGU growth factors. The EPA has reviewed information in 
the rulemaking record and also examined more recent data. The EPA 
published two notices of data availability that describe the new data 
and announced their availability in the rulemaking docket (66 FR 40609; 
August 3, 2001 and 67 FR 10844; March 11, 2002).
    The EPA recently completed its response to the remand on EGU growth 
factors and is publishing the response in the notice section of the 
Federal Register. (See ``Notice in Response to Court Remand on 
NOX SIP Call and Section 126 Rule''.) The response to the 
remand notice explains why the growth rates were reasonable, based on 
the information that was available to EPA at the time EPA promulgated 
the Section 126 Rule and confirmed by new information on activity to 
date.
    The signature of EPA's response to the EGU growth factor remand 
constitutes EPA's resolution of the issue. Therefore, in accordance 
with the August 24, 2001 court ruling, the compliance period for EGUs 
is no longer tolled (suspended) as of the April 23, 2002 signature date 
of the response to the remand.

III. What are the New Deadlines for the Section 126 Rule Federal 
NOX Budget Trading Program?

    The EPA promulgated the Federal NOX Budget Trading 
program under 40 CFR part 97 as the control remedy for sources affected 
by the Section 126 findings (65 FR at 2727; January 18, 2000). A cap-
and-trade program is the most cost-effective approach for achieving the 
necessary emissions reductions. The trading program sets an emission 
limitation and compliance schedule for the sources (known as 
NOX budget units). The emission limitation for each unit is 
the requirement that the tons of NOX emitted during the 
ozone season control period (May 1--September 30) cannot exceed the 
amount authorized by the NOX allowances that the unit holds. 
Allowances are allocated to units subject to the program, and the total 
number of allowances allocated to all such units for each control 
period is fixed, or ``capped,'' at a specified level. The compliance 
schedule is set by establishing a deadline by which units must begin to 
comply with the requirement to hold allowances sufficient to cover 
emissions. Part 97 includes applicability, permitting, allowance, 
excess emissions, monitoring and reporting, opt-in, and general 
provisions for the trading program.
    Today's final rule amends the part 97 Federal NOX Budget 
Trading Program by revising the compliance date and other related 
dates. As discussed above, EPA is taking today's action as a result of 
an August 24, 2001 court decision which temporarily suspended (and as a 
result, delayed) the Section 126 Rule compliance date. Although the 
court's action affected only the compliance deadline, there are other 
dates in the rule for related requirements that must also be extended 
because they were established relative to the original compliance 
deadline. The new dates are discussed below and shown in the amended 
regulatory text. Also discussed below are a few dates that EPA is not 
changing. The dates being revised are summarized in Table 1. The 
unrevised dates are summarized in Table 2.

               Table 1.--Sections of Part 97 Containing Dates That EPA Is Revising in Today's Rule
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              Part 97 section                          Original date                      Revised date
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Sec.  97.4 Applicability...................  2003.............................  2004.
Sec.  97.5 Retired unit exemption..........  May 1, 2003......................  May 1, 2004.
Sec.  97.6 Standard requirements...........  May 1, 2003......................  May 31, 2004.
Sec.  97.21 Submission NOX budget permit     January 1, 2000..................  January 1, 2001
 applications.                               May 1, 2003......................  May 31, 2004.
Sec.  97.41 Timing requirements for NOX      2003 through 2007................  2004 through 2007
 allowance allocations.                      April 1, 2003....................  April 1, 2004.
Sec.  97.42 NOX allowance allocations......  Removes the word five, wherever    ................................
                                              it appears.
Sec.  97.43 Compliance supplement pool.....  2001 or 2002.....................  2001 through 2003.
                                             February 1, 2003.................  February 1, 2004
                                             2001 and 2002....................  2001 through 2003.
                                             Apri1 1, 2003....................  April 1, 2004.
                                             May 1, 2003......................  May 1, 2004.
                                             2003 or 2004.....................  2004 or 2005.
                                             2004.............................  2005.
Sec.  97.53 Recordation of NOX allowance     2003.............................  2004.
 allocations.
                                             May 1, 2001......................  May 1, 2003.
                                             2004.............................  2005.
                                             May 1, 2002......................  May 1, 2003.
                                             2005.............................  2006.
                                             May 1, 2003......................  May 1, 2004.
                                             2006.............................  2007.
                                             2004.............................  2005.
Sec.  97.54 Compliance.....................  2005.............................  2006.
Sec.  97.70 General requirements...........  May 1, 2000......................  May 1, 2001.
                                             January 1, 2002..................  January 1, 2003.
                                             May 1, 2002......................  May 1, 2003.
Sec.  97.74 Recordkeeping and reporting....  May 1, 2002......................  May 1, 2003.
                                             May 1, 2002 through June 30, 2002  May 1, 2003 through June 30,
                                                                                 2003.
Appendices A and B.........................  2003-2007........................  2004-2007.

[[Page 21525]]

 
Appendix C.................................  Removes 2003-2007................
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  Table 2.--Sections of Part 97 Containing Dates That Are Not Changing
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        Part 97--section           Item with dates that are not changing
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Sec.  97.2 Definitions..........  Definition of fossil fuel fired.
Sec.  97.4 Applicability NOX....  budget unit and NOX budget source
                                   descriptions.
Sec.  97.42 NOX.................  Baselines used for allocations;
                                   allowance Dates related to
                                   allocations for control periods
                                   allocations after 2007.
Sec.  97.70 General Requirements  Monitoring and reporting deadlines for
                                   early reduction credits.
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A. What Is the Revised Compliance Date?

    For the reasons discussed below, EPA is establishing May 31, 2004 
as the new compliance deadline for all sources subject to the Section 
126 Rule. The compliance date is established in Sec. 97.6(c)(3) 
Standard Requirements and referenced in the following sections: 
Sec. 97.4(b)(4)(vi) Applicability, Sec. 97.5(c)(5) Retired Unit 
Exemption, Sec. 97.21(b) Submission of NOX Budget permit 
applications, and Sec. 97.53 Recordation of NOX allowance 
allocations.
1. EGUs
    When the court suspended the compliance period for EGUs (see 
discussion in section I.2. above), there were 21 months remaining for 
compliance. The EPA completed its response to the growth factor remand 
on April 23, 2002. That action officially reactivated the EGU 
compliance period as of that date. By the time the 21 months remaining 
expire in January 2004, the 2003 ozone season will have ended. The 
Section 126 Rule requires NOX reductions only during the 
ozone season control period of May 1 through September 30. Thus, 
compliance by January 2004 would not require actual NOX 
emissions reductions until May 2004. Although May 1 is the beginning of 
the ozone season, EPA is establishing May 31, 2004 as the compliance 
date for EGUs under the Section 126 Rule in order to align that date 
with the deadline established by the D.C. Circuit for the 
NOX SIP Call. \2\
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    \2\ The 2005 control season and all subsequent control seasons 
will begin on May 1.
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    There are two primary reasons EPA believes May 31, 2004 is the 
appropriate compliance date. First, EPA strongly supports addressing 
ozone transport through State action. As discussed in section I.A., 
from the beginning it has been EPA's intention to coordinate the 
NOX SIP Call and the Section 126 Rule because the rules were 
promulgated at about the same time. The EPA originally established the 
same compliance date for the rules, May 1, 2003. Then, where a State 
stayed on track to meet the NOX SIP Call, EPA would 
automatically withdraw the Federal Section 126 Rule requirements before 
sources in that State had to comply with the rule. The EPA believes it 
makes sense to continue this approach because it helps provide States, 
affected industry, and the public with a better coordinated and simpler 
program for achieving these emissions reductions. (See discussion below 
in section V regarding EPA's upcoming rulemaking to revise the Section 
126 Rule withdrawal provision.)
    Second, EPA believes it would be unnecessarily complicated and 
confusing for EGUs to be controlled under the Section 126 Rule for just 
one month (May 1--May 30, 2004) and then be subject to a potentially 
different regime under State plans in response to the NOX 
SIP Call beginning on May 31, 2004. The benefit of controls 1 month 
earlier would be trivial compared to the potential complexity.
2. Non-EGUs
    The court's actions related to the EGU growth factors did not 
address the compliance deadline for non-EGUs subject to the Section 126 
Rule. However, EPA is also extending the compliance deadline for non-
EGUs until May 31, 2004 to match the new compliance deadline for EGUs. 
This is in keeping with the original Section 126 Rule which reflected 
the intention to regulate EGUs and non-EGUs on the same schedule. Non-
EGUs are a very small portion of the total group of sources affected by 
the Section 126 Rule, accounting for about 5 percent of the emissions 
reductions. An important compliance option for these generally smaller 
sources is to purchase emissions credits through trading with large 
EGUs. The EPA believes the public is best served if the compliance date 
for non-EGUs is the same as for the much larger category of EGUs. The 
EPA's goal is to establish the most cost-effective emission control 
program possible and that necessarily includes trading among all 
affected sources. If the non-EGU controls were implemented a year 
earlier than the EGU controls, this would offer less compliance 
flexibility and would not take advantage of the more efficient outcome 
that would result if non-EGUs were able to trade with EGUs throughout 
the NOX SIP Call region. The EPA does not believe it makes 
sense for this very small portion of affected sources to have to comply 
at an earlier date with fewer control options.

B. What Are the Other Revised Dates Related to the Compliance Date?

1. Submission of NOX Budget Permit Applications
    Section 97.21 requires the authorized account representative to 
submit a permit application to the permitting authority at least 18 
months (or such lesser time provided by the permitting authority) 
before the compliance date or the date on which the NOX 
Budget unit commences operation. Based on the original May 1, 2003 
compliance date, the former situation resulted in a default permit 
application date of November 1, 2001. Because EPA is revising the 
compliance deadline to be May 31, 2004, the resulting new default 
permit application date calculates to be November 30, 2002.
    For NOX budget units that commence operation before 
January 1, 2001, the permit applications must be submitted by at least 
18 months (or such lesser time provided by the permitting authority) 
before May 31, 2004. For NOX budget units that commence 
operation on or after January 1, 2001, the permit applications must be 
submitted by at least 18 months (or such lesser time provided by the 
permitting authority) before the later of May 31, 2004 or the date the 
unit commences operation.

[[Page 21526]]

2. Timing Requirements for NOX Allowance Allocations
    Section 97.41 specifies the dates by which EPA will determine the 
NOX allowance allocations for given control periods. Under 
the Federal NOX Budget Trading Program, EPA will update the 
NOX allowance allocations every 5 years. Thus, the 
allocations will be the same each year for a set of 5 control periods. 
The EPA published the first set of allocations in Appendices A and B to 
part 97 (65 FR at 2751; January 18, 2000). Because the Section 126 Rule 
compliance date is shifting from 2003 to 2004, this first set of 
allocations will now apply for a 4-year period from 2004-2007 instead 
of the original 5-year period from 2003-2007. After the initial 4-year 
period, EPA will continue to determine NOX allowance 
allocations in 5-year intervals--by April 1, 2005, April 1, 2010, April 
1, 2015, and so forth. The first set of allocations for new units from 
the allocation set-aside will be determined by April 1, 2004.
    The title of Appendix C to part 97 showing the trading budgets by 
State is changed to remove the listed years since they now will not 
apply until 2004 and, under Secs. 97.40, 97.41, and 97.42, are used in 
allocating allowances for 2008 through 2012 and beyond.
    The allocations and budgets for the first year of the trading 
program will cover a shorter compliance period because, in 2004, 
compliance begins on May 31 instead of May 1.
3. Compliance Supplement Pool
    Section 97.43(a) originally specified that sources may request 
early reduction credits for certain emissions reductions made during 
the 2001 and 2002 control periods. These credits are allocated from the 
compliance supplement pool (CSP). (See 65 FR 2711; January 18, 2000.) 
Now that 2003 is no longer a required compliance year, reductions made 
in 2003 can be considered for early reductions credits. Because 2001 
has passed and sources may have already, in good faith, reduced 
emissions during the 2001 ozone season for purposes of earning early 
reduction credits, EPA is not simply shifting the early reductions 
period by 1 year. Instead, EPA is expanding the period during which 
sources can earn early reductions credits to include 2001 through 2003.
    Most of the remaining CSP-related deadlines in Sec. 97.43(b) and 
(c) are extended by 1 year. The early reduction credit request must be 
submitted by February 1, 2004. After February 1, 2004, EPA will report 
the total amount of early reduction credits requested by sources in the 
State. The EPA will determine and announce the NOX 
allocations by April 1, 2004 and provide an opportunity for public 
comment. The CSP allocations will be recorded by May 1, 2004. 
NOX allowances from the CSP may be used for compliance 
purposes during the 2004 and 2005 ozone control periods.
    However, the May 1, 2000 deadline for certification of continuous 
emission monitoring systems at units which are making early reductions 
is not changed. This is because it is necessary to establish the level 
of emissions in 2000, as the baseline used to determine the amount of 
early reductions in 2001, 2002, and 2003.
4. Recordation of NOX Allowance Allocations
    Section 97.53 establishes the timing for recording the 
NOX allowance allocations in the accounts for the 
NOX budget units. No deadline for recordation of the 
allowance allocations was established for the first year of the trading 
program. For later years, the rule required the allowance allocations 
to be recorded by the start of the ozone control period 3 years in 
advance of the year for which the allowances were allocated. Thus, 
originally the rule required the 2004 NOX allowance 
allocations to be recorded by May 1, 2001 and the 2005 NOX 
allowance allocations to be recorded by May 1, 2002, and so forth. 
Because 2004 is now the first year of the program, and because May 1, 
2001 is already past, EPA is removing the deadline for recordation for 
the 2004 control period. The EPA will record the allowances 
sufficiently in advance for sources to make their compliance decisions. 
In addition, because the May 1, 2002 recordation deadline for the 2005 
control period is only a few days away, there is not adequate time for 
EPA to meet that deadline. Therefore, EPA is establishing May 1, 2003 
as the recordation deadline for 2005 allowance allocations. As a 
result, both the 2005 and 2006 NOX allowances will be 
recorded by May 1, 2003.
    Recordation of allocations in compliance accounts or general 
accounts and allocations to opt-in units addressed under Sec. 97.53(e) 
will start in 2005.
5. Compliance--Deduction of Banked Allowances
    The Federal NOX Budget Trading Program includes a 
banking feature to allow sources to save allowances for use in later 
years. Banking may result in more NOX allowances being used, 
and therefore more NOX emissions, in one year than in 
another. Section 97.54(f) provides a flow control mechanism to limit 
the variability in the time of emissions by establishing a discount 
rate on the use of banked allowances over a certain level. Under the 
January 18, 2000 Section 126 Rule, flow control could not be triggered 
until 2005 (after the first 2 years of the program). In order to 
continue to allow unrestricted use of allowances during the first 2 
years of the program, this date is being extended by 1 year. Therefore, 
flow control cannot be triggered until 2006 (i.e., after reconciliation 
in the 2005 compliance year).
6. Monitoring
    Sections 97.70 through 74 contain the Monitoring and Reporting 
requirements. Under Sec. 97.70, all the deadlines related to monitoring 
and reporting are extended by 1 year, except for the deadlines related 
to earning early reduction credits (see discussion below in section 
C.1.). Part 97 requires monitoring to begin the start of the ozone 
season 1 year before the compliance date. Therefore, sources not 
intending to apply for early reduction credits are now required to meet 
the certification and other related requirements by May 1, 2003 and 
begin reporting on that date. The deadline is May 1, rather than May 
31, so that units will report emissions for the full control period in 
2003. The heat input for the 2003 control period will be used in 
determining future allowance allocations under Part 97. New sources 
that commence operation on or after January 1, 2003, are required to 
meet monitoring and reporting requirements by May 1, 2003 or 90 days 
after the source commenced operation, whichever is later.
    Section 97.74(d) sets out the deadlines for submission of quarterly 
reports. All deadlines are extended by 1 year.

C. What Are the Dates That EPA Is Not Changing?

1. Monitoring and Reporting Deadlines for Early Reduction Credits
    Section 97.70(b)(1) establishes May 1, 2000 as the monitoring 
certification and reporting deadline for sources that intend to apply 
for early reduction credits under Sec. 97.43. This deadline is not 
changing because, as discussed above in section III.B.3., EPA is not 
shifting by 1 year the period during which early reduction credits can 
be earned. The year 2001 will continue to be the first year during 
which early reduction credit can be earned, but now the early 
reductions time period is being expanded through 2003. The 2000

[[Page 21527]]

ozone season remains the baseline against which sources who intend to 
request early reduction credits must demonstrate reductions.
2. Other Miscellaneous Dates
    There are several other dates in the Section 126 Rule that are not 
changing. These include: the 1995-1998 baseline period in 
Sec. 97.42(a)(1)(i) used for initial allocations, the 2002-2004 
baseline period in Sec. 97.42(a)(1)(ii) for the next set of 
allocations(which is for 2008-2012), the dates related to allocations 
for control periods after 2007, and the dates in the definitions of 
fossil fuel fired and in the applicability provisions in Sec. 97.4.

IV. What Are the Rulemaking Procedures?

    The EPA is taking this action as a final rule without prior 
proposal and public comment because EPA finds that the Administrative 
Procedure Act (APA) good cause exemption to the requirement for notice-
and-comment rulemaking applies here. See 5 U.S.C. 553(b)(3)(B). The EPA 
believes that providing for notice-and-comment rulemaking before taking 
this action is impracticable and contrary to the public interest 
because the time involved would extend beyond critical dates in the 
Section 126 Rule that EPA is changing.
    In particular, when the court temporarily suspended the compliance 
date for EGUs, it did not suspend the other related dates. The other 
dates, such as the monitoring certification date, were established by 
EPA based on the specific timing of the compliance date. Therefore, 
substantial confusion has resulted for sources as to their obligations 
to meet the related deadlines. The current May 1, 2002 monitoring 
certification deadline is rapidly approaching. The monitoring deadline 
was set to be 1 year prior to the compliance date. Because the court's 
action effectively delayed the compliance deadline beyond 2003, 
similarly the monitoring date should be delayed beyond 2002. In a 
January 16, 2002 memorandum from John Seitz, Director of the Office of 
Air Quality Planning and Standards, to EPA Regional Air Directors, EPA 
announced that it intended to extend the deadlines that are related to 
the compliance date. However, the sources remain legally subject to the 
existing deadlines until EPA formally changes those dates. The time 
needed to complete notice-and-comment rulemaking to revise the dates 
would extend well beyond the May 1, 2002 monitoring date and would 
result either in sources making expenditures that are unnecessary at 
this time or being in violation of existing deadlines until EPA 
finalized the rule to extend those deadlines. Therefore, EPA believes 
it would be contrary to the public interest for the existing deadlines 
to remain in effect while EPA conducted rulemaking to extend the 
deadlines. In addition, sources need certainty as early as possible 
regarding their new compliance dates so that appropriate compliance 
plans and contractual agreements can be arranged. It would be 
impracticable to achieve the purpose of immediate clarification 
regarding sources' obligations, and hence, would also be contrary to 
the public interest, if this action were delayed by providing for prior 
public notice-and-comment. This rule does not change what the control 
requirements are for the affected sources or substantively change the 
Section 126 Rule in any way. It simply changes several dates by which 
the requirements must be met, as a result of the court's actions 
related to the EGU compliance date. Therefore, EPA does not believe 
that prior proposal is necessary.
    Given the need to have the revised dates in place prior to May 1, 
2002, for the reasons discussed above, EPA finds good cause to make 
this rule immediately effective upon publication. The EPA believes this 
is consistent with 5 U.S.C. 553(d)(1) and (3).

V. What Is the Future Rulemaking on the Section 126 Rule Withdrawal 
Provision?

    As mentioned above, the Section 126 Rule includes a provision to 
withdraw the section 126 requirements in a State where the State is 
fully controlling the NOX transport. The current Section 126 
Rule withdrawal provision is based on the original compliance deadlines 
in the Section 126 Rule and NOX SIP Call. This provision 
automatically withdraws the section 126 findings and control 
requirements for sources in a State if the State submits, and EPA gives 
final approval to, a SIP revision meeting the full NOX SIP 
Call requirements, including the originally promulgated May 1, 2003 
compliance deadline (40 CFR 52.34(i)). The automatic withdrawal 
provision does not address any other circumstances.
    In particular, the withdrawal provision in its current form would 
not operate where a State's NOX SIP has the new court-
established May 31, 2004 NOX SIP Call compliance deadline. 
Because the Section 126 Rule compliance deadline is now May 31, 2004, a 
NOX SIP to pre-empt or replace the Section 126 Rule 
requirements would not need to be implemented until May 31, 2004. 
Therefore, in the future, EPA intends to conduct a rulemaking to modify 
the Section 126 Rule withdrawal provision to take into account the new 
compliance date for the Section 126 Rule. Revising the Section 126 Rule 
withdrawal provision will avoid the potential overlap of Federal 
requirements under the Section 126 Rule and State requirements under 
the NOX SIP Call.

VI. What Are the Administrative Requirements?

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency 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.
    Under Executive Order 12866, this final action is not a 
``significant regulatory action'' and is therefore not subject to 
review by OMB. This rule does not create any additional impacts beyond 
what were promulgated in the January 2000 Rule. This rule also does not 
raise novel legal or policy issues. Therefore, EPA believes that this 
action is not a ``significant regulatory action.''

B. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, 2 
U.S.C. 1532, EPA generally must prepare a written statement, including 
a cost-benefit analysis, for any proposed or final rules with ``Federal 
mandates'' that may result in the expenditure by

[[Page 21528]]

State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more in any 1 year. A ``Federal 
mandate'' is defined to include a ``Federal intergovernmental mandate'' 
and a ``Federal private sector mandate'' (2 U.S.C. 658(6)). A ``Federal 
intergovernmental mandate,'' in turn, is defined to include a 
regulation that ``would impose an enforceable duty upon State, local, 
or tribal governments,'' (2 U.S.C. 658(5)(A)(i)), except for, among 
other things, a duty that is ``a condition of Federal assistance'' (2 
U.S.C. 658(5)(A)(I)). A ``Federal private sector mandate'' includes a 
regulation that ``would impose an enforceable duty upon the private 
sector,'' with certain exceptions (2 U.S.C. 658(7)(A)).
    The EPA has determined that this action does not include a Federal 
mandate that may result in estimated costs of $100 million or more for 
either State, local, or tribal governments in the aggregate, or for the 
private sector. This Federal action does not impose any new 
requirements, as discussed above. Accordingly, no additional costs to 
State, local, or tribal governments, or to the private sector, would 
result from this action.
    Because the Agency has made a ``good cause'' finding that this 
action is not subject to notice-and-comment requirements under the 
Administrative Procedures Act or any other statute (see section IV of 
this preamble, it is not subject to sections 202 and 205 of the 
Unfunded Mandates Reform Act of 1995 (UMRA) (Pub. L. 104-4).

C. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that 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.''
    Under section 6 of Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the Federal government provides the funds necessary to pay the direct 
compliance costs incurred by State and local governments, or EPA 
consults with State and local officials early in the process of 
developing the proposed regulation. The EPA also may not issue a 
regulation that has federalism implications and that preempts State 
law, unless the Agency consults with State and local officials early in 
the process of developing the proposed regulation.
    This rule does not have federalism implications. It 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. Today's rule imposes no additional 
burdens beyond those imposed by the January 2000 Rule. Thus, the 
requirements of section 6 of the Executive Order do not apply to this 
rulemaking action.

D. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination 
with Indian Tribal Governments'' (65 FR 67249, November 6, 2000), 
requires EPA to develop an accountable process to ensure ``meaningful 
and timely input by tribal officials in the development of regulatory 
policies that have tribal implications.'' ``Policies that have tribal 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on one or more Indian tribes, on 
the relationship between the Federal government and the Indian tribes, 
or on the distribution of power and responsibilities between the 
Federal government and Indian tribes.''
    This rule does not have tribal implications. It will not have 
substantial direct effects on tribal governments, 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 in Executive Order 13175. 
Today's action does not significantly or uniquely affect the 
communities of Indian tribal governments. As discussed above, today's 
action imposes no new requirements that would impose compliance burdens 
beyond those that would already apply under the January 2000 rule. 
Accordingly, the requirements of Executive Order 13175 do not apply to 
this rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedure Act or any other statute unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    Today's rule does not create new requirements for small entities or 
other sources. Instead, this action extends the compliance dates for 
sources subject to the January 2000 rule as a result of court actions. 
Therefore, I certify that this action will not have a significant 
economic impact on a substantial number of small entities.
    Because the Agency has made a ``good cause'' finding that this 
action is not subject to notice-and-comment requirements under the 
Administrative Procedures Act or any other statute (see section IV of 
this preamble), it is not subject to the regulatory flexibility 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.).

F. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    Executive Order 13045: ``Protection of Children From Environmental 
Health Risks and Safety Risks'' (62 FR 19885, April 23, 1997) applies 
to any rule that (1) is determined to be ``economically significant'' 
as defined under Executive Order 12866, and (2) concerns an 
environmental health or safety risk that EPA has reason to believe may 
have a disproportionate effect on children. If the regulatory action 
meets both criteria, the Agency must evaluate the environmental health 
or safety effects of the planned rule on children, and explain why the 
planned regulation is preferable to other potentially effective and 
reasonably feasible alternatives considered by the agency.
    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that are based on health or safety risks, such that 
the analysis required under section 5-501 of the Order has the 
potential to influence the regulation. This rule is not subject to 
Executive Order 13045, because this action is not ``economically 
significant'' as defined under Executive Order 12866 and the Agency 
does not have reason to believe the environmental health risks or 
safety risks addressed by this action present a disproportionate risk 
to children.

G. National Technology Transfer and Advancement Act

    Section 12(d) of the National Transfer and Advancement Act of 1995

[[Page 21529]]

(``NTTAA,'' Pub. L. 104-113 section 12(d) 15 U.S.C. 272 note) directs 
EPA to use voluntary consensus standards in its regulatory activities 
unless to do so would be inconsistent with applicable law or otherwise 
impractical. Voluntary consensus standards are technical standards 
(e.g., materials specifications, test methods, sampling procedures, and 
business practices) that are developed or adopted by voluntary 
consensus standards bodies. The NTTAA directs EPA to provide Congress, 
through OMB, explanations when the Agency decides not to use available 
and applicable voluntary consensus standards.
    The National Technology Transfer and Advancement Act of 1997 does 
not apply because today's action does not impose any new technical 
standards. This action extends deadlines for sources subject to the 
January 2000 Rule, as the result of court actions.

H. Paperwork Reduction Act

    Today's action does not impose any new information collection 
request requirements. Therefore, an information collection request 
document is not required.

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' (66 FR 28355; May 22, 2001) because it is not a 
significant regulatory action under Executive Order 12866. Today's 
action does not impose any new regulatory requirements.

J. Judicial Review

    Section 307(b)(1) of the CAA indicates which Federal Courts of 
Appeal have venue for petitions of review of final actions by EPA. This 
section provides, in part, that petitions for review must be filed in 
the Court of Appeals for the District of Columbia Circuit (i) when the 
agency action consists of ``nationally applicable regulations 
promulgated, or final actions taken, by the Administrator,'' or (ii) 
when such action is locally or regionally applicable, if ``such action 
is based on a determination of nationwide scope or effect and if in 
taking such action the Administrator finds and publishes that such 
action is based on such a determination.''
    For the reasons discussed in the May 25, 1999 final rule (64 FR 
28250), the Administrator determined that final action regarding the 
section 126 petitions is of nationwide scope and effect for purposes of 
section 307(b)(1). Thus, any petitions for review of final actions 
regarding the section 126 rulemaking must be filed in the Court of 
Appeals for the District of Columbia Circuit within 60 days from the 
date final action is published in the Federal Register.

K. Congressional Review Act

    The Congressional Review Act (CRA), 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. Section 808 of the CRA provides an 
exception to this requirement. For any rule for which an agency for 
good cause finds that notice and comment are impracticable, 
unnecessary, or contrary to the public interest, the rule may take 
effect on the date set by the Agency. The EPA 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. 
This action is not a ``major rule'' as defined by 5 U.S.C. 804(2). As 
EPA is finding good cause to promulgate this rule without prior notice 
and comment, this rule will be effective April 30, 2002.

List of Subjects in 40 CFR Part 97

    Administrative practice and procedure, Air pollution control, 
Intergovernmental Relations, Nitrogen oxides, Ozone, Reporting and 
record keeping requirements.

    Dated: April 23, 2002.
Christine Todd Whitman,
Administrator.

    For the reasons set forth in the preamble, chapter I of title 40 of 
the Code of Federal Regulations is amended as follows:

PART 97--FEDERAL NOX BUDGET TRADING PROGRAM

    1. The authority citation for part 97 continues to read as follows:

    Authority: 42 U.S.C. 7401, 7403, 7426, and 7601.


Sec. 97.4  [Amended]

    2. In Sec. 97.4 paragraphs (b)(4)(vi)(A) and (b)(4)(vi)(B) are 
amended by revising the date ``2003'' to read ``2004'', wherever it 
appears.


Sec. 97.5  [Amended]

    3. In Sec. 97.5 paragraphs (c)(5)(i) and (c)(5)(ii) are amended by 
revising the date ``May 1, 2003'' to read ``May 31, 2004,'' wherever it 
appears.


Sec. 97.6  [Amended]

    4. In Sec. 97.6 paragraph (c)(3) is amended by revising the date 
``May 1, 2003'' to read ``May 31, 2004''.


Sec. 97.21  [Amended]

    5. In Sec. 97.21 paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), and 
(b)(2)(ii) are amended by revising the date ``January 1, 2000'' to read 
``January 1, 2001'' and the date ``May 1, 2003'' to read ``May 31, 
2004,'' wherever they appear.


Sec. 97.41  [Amended]

    6. In Sec. 97.41 by amending:
    a. Paragraph (a) by revising the date ``2003 through 2007'' to read 
``2004 through 2007''; and
    b. Paragraph (d) by revising the date ``April 1, 2003'' to read 
``April 1, 2004''.


Sec. 97.42  [Amended]

    7. In Sec. 97.42 by amending:
    a. Paragraph (b) by removing the word ``five'; and
    b. Paragraph (c) by removing the word ``five'.


Sec. 97.43  [Amended]

    8. In Sec. 97.43 by amending:
    a. Paragraph (a) introductory text by revising the date ``2001 or 
2002'' to read ``2001 through 2003'';
    b. Paragraph (a)(4) introductory text by revising the date ``2001 
or 2002'' to read ``2001 through 2003'';
    c. Paragraph (a)(4)(ii) by revising the date ``February 1, 2003'' 
to read ``February 1, 2004'';
    d. Paragraph (b)(1) by revising the date ``2001 or 2002'' to read 
``2001 through 2003,'' wherever it appears;
    e. Paragraph (b)(2) by revising the date ``February 1, 2003'' to 
read ``February 1, 2004'';
    f. Paragraphs (c)(2), (c)(3), and (c)(4) by revising the date 
``February 1, 2003'' to read ``February 1, 2004,'' wherever it appears;
    g. Paragraphs (c)(3) and (c)(4) by revising ``2001 and 2002'' to 
read ``2001 through 2003,'' wherever it appears;
    h. Paragraph (c)(5) by revising the date ``April 1, 2003'' to read 
``April 1, 2004'';
    i. Paragraph (c)(6) by revising the date ``May 1, 2003'' to read 
``May 1, 2004'';
    j. Paragraph (c)(7) by revising the date ``2003 or 2004'' to read 
``2004 or 2005'; and
    k. Paragraph (c)(8) by revising the date ``2004'' to read ``2005''.

[[Page 21530]]

Sec. 97.53  [Amended]

    9. In Sec. 97.53 by amending:
    a. Paragraph (a) by revising the date ``2003'' to read ``2004'', 
wherever it appears;
    b. Paragraph (b) by revising the date ``May 1, 2001'' to read ``May 
1, 2003'' and revising the date ``2004'' to read ``2005'', wherever 
they appear;
    c. Paragraph (c) by revising the date ``May 1, 2002'' to read ``May 
1, 2003'' and revising the date ``2005'' to read ``2006'', wherever 
they appear;
    d. Paragraph (d) by revising the date ``May 1, 2003'' to read ``May 
1, 2004'' and revising the date ``2006'' to read ``2007'', wherever 
they appear; and
    e. Paragraph (e) introductory text by revising the date ``2004'' to 
read ``2005''.


Sec. 97.54  [Amended]

    10. In Sec. 97.54 paragraph (f) is amended by revising the date 
``2005'' to read ``2006''.


Sec. 97.70  [Amended]

    11. In Sec. 97.70 by amending:
    a. Paragraph (b)(1) by revising the date ``May 1, 2000'' to read 
``May 1, 2001''; and
    b. Paragraphs (b)(2), (b)(3), introductory text (b)(4), (b)(5), 
(b)(5)(i), and (b)(6) by revising the date ``January 1, 2002'' to read 
``January 1, 2003'' and revising the date ``May 1, 2002'' to read ``May 
1, 2003,'' wherever they appear.
    c. Paragraph (b)(3)(i) by revising the date ``May 1, 2002'' to read 
``May 1, 2003.''


Sec. 97.74  [Amended]

    12. In Sec. 97.74 paragraphs (d)(1)(ii), (d)(1)(iii), 
(d)(2)(ii)(B), (d)(2)(ii)(C), and (d)(2)(ii)(D) are amended by revising 
the date ``May 1, 2002'' to read ``May 1, 2003'' and revising the date 
``May 1, 2002 through June 30, 2002'' to read ``May 1, 2003 through 
June 30, 2003,'' wherever they appear.

Appendix A to Part 97 [Amended]

    13. In Appendix A the table heading is amended by revising the date 
``2003-2007'' to read ``2004-2007''.

Appendix B to Part 97 [Amended]

    14. In Appendix B the table heading is amended by revising the date 
``2003-2007'' to read ``2004-2007''.

Appendix C to Part 97 [Amended]

    15. In Appendix C the table heading is amended by removing the date 
'', 2003-2007''.

[FR Doc. 02-10403 Filed 4-29-02; 8:45 am]
BILLING CODE 6560-50-P