[Federal Register Volume 67, Number 249 (Friday, December 27, 2002)]
[Rules and Regulations]
[Pages 78987-78989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32562]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[NC-94;100-200305; FRL-7429-7]


Approval and Promulgation of Implementation Plans: North 
Carolina: Nitrogen Oxides Budget and Allowance Trading Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is approving a State Implementation Plan (SIP) revision 
submitted by the State of North Carolina, through the North Carolina 
Department of Environmental and Natural Resources (NCDENR), on 
September 18, 2001. This revision was submitted in response to the 
EPA's regulation entitled, ``Finding of Significant Contribution and 
Rulemaking for Certain States in the Ozone Transport Assessment Group 
Region for Purposes of Reducing Regional Transport of Ozone,'' 
otherwise known as the NOX SIP Call. This revision 
establishes and requires a nitrogen oxides (NOX) allowance 
trading program for large electric generating and industrial units; and 
reductions from internal combustion engines beginning in 2004. On 
December 26, 2000, EPA determined that North Carolina had failed to 
submit a SIP in response to the NOX SIP Call, thus starting 
a 18 month clock for the mandatory imposition of sanctions and the 
obligation for EPA to promulgate a Federal Implementation Plan (FIP) 
within 24 months. On September 18, 2001, North Carolina submitted a 
NOX SIP that was automatically deemed complete on March 18, 
2002, stopping the sanctions clock. Through this Federal Register 
notice, both the sanctions clock and EPA's FIP obligation are 
terminated.
    Separately, a vehicle inspection and maintenance program (I/M) 
achieving NOX reductions has been approved. The NC 
NOX SIP includes a budget demonstration and initial source 
allocations that demonstrate that North Carolina will achieve the 
required NOX emission reductions in accordance with the 
timelines set forth in EPA's NOX SIP Call. The intended 
effect of this SIP revision is to reduce emissions of NOX in 
order to help areas in the Eastern United States attain the national 
ambient air quality standard for ozone. EPA proposed approval of this 
rule on June 24, 2002, (67 FR 42519) and received no adverse comments. 
Therefore, EPA is approving North Carolina's NOX reduction 
and trading program because it meets the requirements of the Phase I 
and Phase II NOX SIP Call that will significantly reduce 
ozone transport in the eastern United States.

EFFECTIVE DATE: This final rule is effective on January 27, 2003.

ADDRESSES: All comments should be addressed to: Randy Terry at the EPA, 
Region 4 Air Planning Branch, 61 Forsyth Street, SW., Atlanta, Georgia 
30303-8960.
    Copies of documents relative to this action are available at the 
following addresses for inspection during normal business hours:

Environmental Protection Agency, Region 4, Air Planning Branch, 61 
Forsyth Street, SW., Atlanta, Georgia 30303-8960.
North Carolina Department of Environment and Natural Resources, 512 
North Salisbury Street, Raleigh, North Carolina 27604.

FOR FURTHER INFORMATION CONTACT: Randy Terry, Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, Region 4, Environmental Protection Agency, Atlanta Federal 
Center, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. The 
telephone number is (404) 562-9032. Mr. Terry can also be reached via 
electronic mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On September 18, 2001, the North Carolina Department of 
Environmental and Natural Resources (NCDENR) submitted a revision to 
its SIP to meet the requirements of the NOX SIP Call. The 
revision consisted of the adoption of a new chapter, NCAC 2D .1400 
Nitrogen Oxides Emissions containing thirteen new regulations: .1401 
Definitions, .1402 Applicability, .1403 Compliance Schedules, .1404 
Recordkeeping, Reporting, Monitoring, .1409 Stationary Internal 
Combustion Engines, .1416 Emission Allocations for Utility Companies, 
.1417 Emission Allocations for Large Combustion Sources, .1418 New 
Electric Generating Units, Large Boilers, and Large I/C Engines, .1419 
Nitrogen Oxide Budget Trading Program, .1420 Periodic Review and 
Reallocations, .1421 Allocation for New Growth of Major Point Sources, 
.1422 Compliance Supplement Pool and Early Emission Reduction Credits, 
and .1423 Large Internal Combustion Engines. On June 24, 2002, (67 FR 
42519) EPA published a notice of proposed rulemaking (NPR) to approve 
the September 18, 2001, SIP revision. That NPR provided for a public 
comment period ending on July 24, 2002. A detailed description of this 
SIP revision and EPA's rationale for approving it was provided in the 
proposed notice and will not be restated here. No significant or 
adverse comments were received on EPA's proposal. Within the June 24, 
2002, NPR, EPA explained that the North Carolina NOX Call 
Rule could not receive final approval until North Carolina had 
submitted and received full approval of their I/M regulations. North 
Carolina submitted these regulations to EPA on August 7, 2002. A direct 
final notice approving these regulations was published on October 30, 
2002, (67 FR 66096) and no adverse comments were received. The approval 
of these regulations is therefore effective on December 30, 2002, as 
stated in the direct final approval.

II. Final Action

    EPA is approving North Carolina's SIP revision including its 
NOX Reduction and Trading Program and Internal Combustion 
engine rule, which was submitted on September 18, 2001. EPA finds that 
North Carolina's submittal is fully approveable because it meets the 
requirements of the NOX SIP Call.

[[Page 78988]]

III. 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 (Pub. L. 104-4).
    This rule also does not have tribal implications because it will 
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). This action also does not have federalism 
implications because it does not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132 (64 
FR 43255, August 10, 1999). This action 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 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it is not economically 
significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. The approval of the 
North Carolina NOX Reduction and Trading Program 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. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a 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).
    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 February 25, 2003. 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, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements.

    Dated: December 2, 2002.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.

    40 CFR part 52 is 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 II--North Carolina

    2. In Sec.  52.1770 paragraph (b) is revised and paragraph (c) is 
amended:
    a. In table one, under subchapter 2D by adding, in numerical order, 
a new entry for ``Section .1400 Nitrogen Oxides Emissions.''
    b. Under section .1400 by adding, in numerical order, for new 
entries ``.1401'', ``.1402'', ``.1403'', ``.1404'', ``.1409'', 
``.1416'', ``.1417'', ``.1418'', ``.1419'', ``.1420'', ``.1421'', 
``.1422'', and ``.1423''.
    The revised and added material is set forth as follows:


Sec.  52.1770  Identification of plan.

* * * * *
    (b) Incorporation by reference.
    (1) Material listed in paragraphs (c) and (d) of this section with 
an EPA approval date prior to December 1, 2002, was approved for 
incorporation by reference by the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Material is 
incorporated as it exists on the date of the approval, and notice of 
any change in the material will be published in the Federal Register. 
Entries in paragraphs (c) and (d) of this section with EPA approval 
dates after December 1, 2002, will be incorporated by reference in the 
next update to the SIP compilation.
    (2) EPA Region 4 certifies that the rules/regulations provided by 
EPA in the SIP compilation at the addresses in paragraph (b)(3) of this 
section are an exact duplicate of the officially promulgated State 
rules/regulations which have been approved as part of the State 
implementation plan as of December 1, 2002.
    (3) Copies of the materials incorporated by reference may be 
inspected at the Region 4 EPA Office at 61 Forsyth Street, SW., 
Atlanta, GA 30303; the Office of the Federal Register, 800 North 
Capitol Street, NW., Suite 700, Washington, DC; or at the EPA, Air and 
Radiation Docket and Information Center, Room B-108, 1301 Constitution 
Avenue, (Mail Code 6102T) NW., Washington, DC 20460.
* * * * *
    (c) * * *

[[Page 78989]]



                                Table 1--EPA Approved North Carolina Regulations
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                                                             State
          State citation              Title/subject     effective date   EPA approval  date        Comments
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Subchapter 2D
                           Air Pollution Control Requirements 2D
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                                                  * * * * * * *
----------------------------------
Section .1400
                                 Nitrogen Oxides Emissions
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Sect. .1401......................  Definitions........         7/15/02  [Insert FR
                                                                         citation].
Sect. .1402......................  Applicability......         7/15/02  [Insert FR
                                                                         citation].
Sect. .1403......................  Compliance                  7/15/02  [Insert FR
                                    Schedules.                           citation].
Sect. .1404......................  Recordkeeping,              7/15/02  [Insert FR
                                    Reporting,                           citation].
                                    Monitoring.
Sect. .1409......................  Stationary Internal         7/15/02  [Insert FR
                                    Combustion Engines.                  citation].
Sect. .1416......................  Emission                    7/15/02  [Insert FR
                                    Allocations for                      citation].
                                    Utility Companies.
Sect. .1417......................  Emission                    7/15/02  [Insert FR
                                    Allocations for                      citation].
                                    large Combustion
                                    Sources.
Sect. .1418......................  New Electric                7/15/02  [Insert FR
                                    Generating Units,                    citation].
                                    Large Boilers, and
                                    Large I/C Engines.
Sect. .1419......................  Nitrogen Oxide              7/15/02  [Insert FR
                                    Budget Trading                       citation].
                                    Program.
Sect. .1420......................  Periodic Review and         7/15/02  [Insert FR
                                    Reallocations.                       citation].
Sect. .1421......................  Allocation for New          7/15/02  [Insert FR
                                    Growth of Major                      citation].
                                    Point Sources.
Sect. .1422......................  Compliance                  7/15/02  [Insert FR
                                    Supplement Pool                      citation].
                                    and Early Emission
                                    Reduction Credits.
Sect. .1423......................  Large Internal              7/15/02  [Insert FR
                                    Combustion Engines.                  citation].
 
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[FR Doc. 02-32562 Filed 12-26-02; 8:45 am]
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