[Federal Register Volume 80, Number 183 (Tuesday, September 22, 2015)]
[Rules and Regulations]
[Pages 57272-57275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24051]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2015-0313; FRL-9934-50-Region 4]


Approval and Promulgation of Implementation Plans for the State 
of Alabama: Cross-State Air Pollution Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve the State of Alabama's March 27, 2015, State 
Implementation Plan (SIP) revision, submitted by the Alabama Department 
of Environmental Management (ADEM). This SIP revision provides 
Alabama's state-determined allowance allocations for existing electric 
generating units (EGUs) in the State for the 2016 control periods and 
replaces the allowance allocations for the 2016 control periods 
established by EPA under the Cross-State Air Pollution Rule (CSAPR). 
The CSAPR addresses the ``good neighbor'' provision of the Clean Air 
Act (CAA or Act) that requires states to reduce the transport of 
pollution that significantly affects downwind air quality. In this 
final action, EPA is approving Alabama's SIP revision, incorporating 
the state-determined allocations for the 2016 control periods into the 
SIP, and amending the regulatory text of the CSAPR Federal 
Implementation Plan (FIP) to reflect this approval and inclusion of the 
state-determined allocations. EPA's allocations of CSAPR trading 
program allowances for Alabama for control periods in 2017 and beyond 
remain in place until the State submits and EPA approves state-
determined allocations for those control periods through another SIP 
revision. The CSAPR FIPs for Alabama remain in place until such time as 
the State decides to replace the FIPs with a SIP revision.

DATES: This rule will be effective September 22, 2015.

ADDRESSES: EPA has established a docket for this action under Docket 
Identification No. EPA-R04-OAR-2015-0313. All documents in the docket 
are listed on the www.regulations.gov Web site. Although listed in the 
index, some information may not be publicly available, i.e., 
Confidential Business Information or other information whose disclosure 
is restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the Internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available either electronically through www.regulations.gov or in hard 
copy at the Air Regulatory Management Section, Air Planning and 
Implementation Branch, Air, Pesticides and Toxics Management Division, 
U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., 
Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you 
contact the person listed in the FOR FURTHER INFORMATION CONTACT 
section to schedule your inspection. The Regional Office's official 
hours of business are Monday through Friday 8:30 a.m. to 4:30 p.m., 
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Twunjala Bradley, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Ms. Twunjala Bradley can be reached by phone at (404) 562-
9352 or via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    EPA is taking final action to approve Alabama's March 27, 2015, SIP 
revision

[[Page 57273]]

submitted by ADEM that modifies the allocations of allowances 
established by EPA under the CSAPR FIPs for existing EGUs for the 2016 
control periods.\1\ The CSAPR allows a subject state, instead of EPA, 
to allocate allowances under the sulfur dioxide (SO2) 
annual, nitrogen oxides (NOX) annual, and NOX 
ozone season trading programs to existing EGUs in the State for the 
2016 control periods provided that the state meets certain regulatory 
requirements.\2\ EPA issued the CSAPR on August 8, 2011, to address CAA 
section 110(a)(2)(D)(i)(I) requirements concerning the interstate 
transport of air pollution and to replace the Clean Air Interstate 
Rule,\3\ which the United States Court of Appeals for the District of 
Columbia Circuit (DC Circuit) remanded to EPA for replacement.\4\ EPA 
found that emissions of SO2 and NOX in 28 
eastern, midwestern, and southern states contribute significantly to 
nonattainment or interfere with maintenance in one or more downwind 
states with respect to one or more of three air quality standards--the 
annual PM2.5 NAAQS promulgated in 1997 \5\ (15 micrograms 
per cubic meter ([micro]g/m\3\)), the 24-hour PM2.5 NAAQS 
promulgated in 2006 \6\ (35 [micro]g/m\3\), and the 8-hour ozone NAAQS 
promulgated in 1997 \7\ (0.08 parts per million). The CSAPR identified 
emission reduction responsibilities of upwind states, and also 
promulgated enforceable FIPs to achieve the required emission 
reductions in each of these states through cost effective and flexible 
requirements for power plants.
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    \1\ Federal Implementation Plans: Interstate Transport of Fine 
Particulate Matter and Ozone and Correction of SIP Approvals; August 
8, 2011 (76 FR 48208).
    \2\ The CSAPR is implemented in two Phases (I and II) with Phase 
I referring to 2015 and 2016 control periods, and Phase II 
consisting of 2017 and beyond control periods.
    \3\ Rule To Reduce Interstate Transport of Fine Particulate 
Matter and Ozone Clean Air Interstate Rule; Revisions to Acid Rain 
Program; Revisions to the NOX SIP Call; May 12, 2005 (70 
FR 25162).
    \4\ North Carolina v. EPA, 531 F.3d 896 (D.C. Cir. 2008), 
modified on reh'g, 550 F.3d 1176 (D.C. Cir. 2008).
    \5\ National Ambient Air Quality Standards for Particulate 
Matter; July 18, 1997 (62 FR 36852).
    \6\ National Ambient Air Quality Standards for Particulate 
Matter; October 17, 2006 (71 FR 61144).
    \7\ National Ambient Air Quality Standards for Ozone; July 18, 
1997 (62 FR 38856).
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    Alabama is subject to the FIPs that implement the CSAPR and require 
certain EGUs to participate in the EPA-administered federal 
SO2 annual, NOX annual, and NOX ozone 
season cap-and trade programs.\8\ Alabama's March 27, 2015, SIP 
revision allocates allowances under the CSAPR to existing EGUs in the 
State for the 2016 control periods only. Alabama's SIP revision 
includes state-determined allocations for the CSAPR NOX 
annual, NOX ozone season, and SO2 Group 2 annual 
trading programs, and complies with the 2016 NOX allowance 
allocation SIP requirements and the 2016 SO2 allowance 
allocation SIP requirements set forth at 40 CFR 52.38 and 52.39, 
respectively. Pursuant to these regulations, a state may replace EPA's 
CSAPR allowance allocations for existing EGUs for the 2016 control 
periods provided that the state submits a timely SIP revision 
containing those allocations to EPA that meets the requirements in 40 
CFR 52.38 and 52.39.
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    \8\ On July 28, 2015, the DC Circuit issued an opinion upholding 
CSAPR but remanding without vacatur certain state emissions budgets 
to EPA for reconsideration. EME Homer City Generation, L.P. v. EPA, 
No. 11-1302, slip op. CSAPR implementation at this time remains 
unaffected by the court decision, and EPA will address the remanded 
emissions budgets in a separate rulemaking. While Alabama's 
SO2 emissions budget for phase 2 (i.e., control periods 
in 2017 and subsequent years) was among the budgets remanded to EPA 
for reconsideration, this SIP revision concerns allowance 
allocations only for the 2016 control periods, which are part of 
phase 1.
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    On July 27, 2015, EPA published direct final and proposed 
rulemaking notices to approve Alabama's March 27, 2015, SIP revision. 
See 80 FR 44292 and 80 FR 44320.\9\ In these notices, EPA stated that 
if adverse comments were received by August 26, 2015, EPA would publish 
a notice in the Federal Register withdrawing the final rule and 
informing the public that the rule would not take effect. EPA received 
a single adverse comment on August 26, 2015, and has withdrawn the 
direct final rule. In the July 27, 2015, notices, EPA informed the 
public that adverse comments would be addressed in a final action based 
upon the proposed rule published on July 27, 2015 (80 FR 44320). EPA is 
responding to the adverse comment in this final action.
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    \9\ As noted in the July 27, 2015, notice of proposed rulemaking 
(80 FR 44320), EPA's detailed analysis of Alabama's SIP revision is 
provided in the direct final rulemaking published on July 27, 2015 
(80 FR 44292). EPA incorporates that analysis herein by reference.
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II. Response to Comment

    EPA received one adverse comment on its July 27, 2015, proposed 
rule. This anonymous comment is located in the docket for this final 
action. See Docket ID: EPA-R04-OAR-2015-0275. A summary of the adverse 
comment and EPA's response are provided below.
    Comment: The Commenter states that ``these proposed regulations 
have not adequately considered the cost of implementation and, as such, 
should not be implemented. Implementation of these regulations would 
almost certainly create additional costs for Alabama based 
electric[i]ty producers which would be passed along to residential and 
commer[ci]al customers and to additional consumers from the greater 
cost of producing goods and services. Until the EPA properly quantifies 
the additional cost from this implementation and performs the cost 
benefit analysis required by law the implementation of this rule should 
not occur.''
    Response: EPA disagrees with the Commenter because the comments are 
beyond the scope of this action. Pursuant to CAA section 110(k)(3), 
EPA's role in reviewing SIP submissions is to review state choices for 
consistency with the applicable requirements of the CAA, and EPA must 
approve a SIP revision that meets all applicable requirements of the 
CAA. The Commenter has not identified any aspect of the Alabama SIP 
submission that is inconsistent with the applicable CAA requirements, 
whether CAA section 110(a)(2)(D)(i)(I) or any other provision of the 
Act. EPA notes that it evaluated the costs and benefits of the 
implementation of CSAPR during its rulemaking process, which was 
conducted in 2010 and 2011. The Commenter's concerns regarding the 
costs of implementing CSAPR are therefore untimely because the public 
comment periods regarding the CSAPR and its implementation requirements 
have long since closed. The present action is limited to the state's 
modification of the allowance allocations under CSAPR to sources within 
the state and does not otherwise modify the emission reduction 
obligations (i.e. the emission budgets) or implementation requirements 
finalized in CSAPR.

III. Effective Date of This Action

    EPA is making September 22, 2015 the effective date of this final 
action. In accordance with 5 U.S.C. 553(d), EPA finds there is good 
cause for this action to become effective on September 22, 2015. The 
September 22, 2015, effective date for this action is authorized under 
5 U.S.C. 553(d)(3), which provides that rulemaking actions may become 
effective less than 30 days after publication, ``as otherwise provided 
by the agency for good cause found and published with the rule.'' The 
purpose of the 30-day waiting period prescribed in section 553(d) is to 
give affected parties a reasonable time to adjust their behavior and 
prepare before the final rule takes effect. This rule, however, does 
not create any new regulatory requirements such that affected parties 
would need time to prepare before the

[[Page 57274]]

rule takes effect. Rather, this final rule establishes state-determined 
allocations of allowances for the control periods in 2016 to existing 
EGUs in the State under the CSAPR's NOX annual and ozone 
season and SO2 Group 2 trading programs. The EGUs whose 
allowance allocations may be changed by this rule are already regulated 
under the CSAPR FIPs and do not face any new regulatory requirements 
under this rule. Furthermore, EPA must approve Alabama's SIP submission 
by October 1, 2015, to ensure that recordation of the 2016 allowances 
in the Allowance Management System is based on the state-determined 
allocations. For these reasons, EPA finds good cause under 5 U.S.C. 
553(d)(3) for this action to become effective on September 22, 2015.

IV. Final Action

    EPA is taking final action to approve Alabama's March 27, 2015, 
CSAPR SIP revision that provides Alabama's state-determined allocations 
of allowances for existing EGUs in the State for the 2016 control 
periods to replace the allowance allocations for the 2016 control 
periods established by EPA under CSAPR. Consistent with the flexibility 
given to states in the CSAPR FIPs at 40 CFR 52.38 and 52.39, Alabama's 
SIP revision establishes state-determined allocations of allowances to 
existing EGUs in the State under the CSAPR's NOX annual and 
ozone season and SO2 Group 2 annual trading programs. 
Alabama's SIP revision meets the applicable requirements in 40 CFR 
52.38(a)(3) and (b)(3) for allocations of NOX annual and 
NOX ozone season allowances, respectively, and 40 CFR 
52.39(g) for allocations of SO2 Group 2 annual allowances. 
EPA is amending the CSAPR FIP's regulatory text for Alabama at 40 CFR 
52.54 and 52.55 to reflect this approval and inclusion of the state-
determined allocations of allowances for the 2016 control periods. EPA 
is not making any other changes to the CSAPR FIPs for Alabama in this 
action. EPA's allocations of CSAPR trading program allowances for 
Alabama for control periods in 2017 and beyond remain in place until 
the State submits and EPA approves state-determined allocations for 
those control periods through another SIP revision. The CSAPR FIPs for 
Alabama remain in place until such time the State decides to replace 
the FIPs with a SIP revision. EPA is approving Alabama's SIP revision 
because it is in accordance with the CAA and its implementing 
regulations.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where EPA or an Indian tribe has demonstrated that a 
tribe has jurisdiction. In those areas of Indian country, the rule does 
not have tribal implications as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.
    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 action 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. 
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by November 23, 2015. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action 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, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: September 11, 2015.
Heather McTeer Toney,
Regional Administrator, Region 4.
    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart B--Alabama

0
2. Section 52.50(e) is amended by adding an entry for ``Cross State Air 
Pollution Rule--State-Determined Allowance Allocations for the 2016

[[Page 57275]]

control periods'' at the end of the table to read as follows:


Sec.  52.50  Identification of plan.

* * * * *
    (e) * * *

                                 EPA Approved Alabama Non-Regulatory Provisions
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                                         Applicable            State
     Name of nonregulatory SIP          geographic or     submittal date/  EPA approval         Explanation
             provision               nonattainment area   effective date       date
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                                                  * * * * * * *
Cross State Air Pollution Rule--    Alabama.............       3/27/2014       9/22/2015  ......................
 State-Determined Allowance
 Allocations for the 2016 control
 periods.
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0
3. Section 52.54 is amended by adding paragraphs (a)(3) and (b)(3) to 
read as follows:


Sec.  52.54  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    (a) * * *
    (3) Pursuant to Sec.  52.38(a)(3), Alabama's state-determined TR 
NOX Annual allowance allocations established in the March 
27, 2015, SIP revision replace the unit-level TR NOX Annual 
allowance allocation provisions of the TR NOX Annual Trading 
Program at 40 CFR 97.411(a) for the State for the 2016 control period 
with a list of TR NOX Annual units that commenced operation 
prior to January 1, 2010, in the State and the state-determined amount 
of TR NOX Annual allowances allocated to each unit on such 
list for the 2016 control period, as approved by EPA on September 22, 
2015.
    (b) * * *
    (3) Pursuant to Sec.  52.38(b)(3), Alabama's state-determined TR 
NOX Ozone Season allowance allocations established in the 
March 27, 2015, SIP revision replace the unit-level TR NOX 
Ozone Season allowance allocation provisions of the TR NOX 
Ozone Season Trading Program at 40 CFR 97.511(a) for the State for the 
2016 control period with a list of TR NOX Ozone Season units 
that commenced operation prior to January 1, 2010, in the State and the 
state-determined amount of TR NOX Ozone Season allowances 
allocated to each unit on such list for the 2016 control period, as 
approved by EPA on September 22, 2015.

0
4. Section 52.55 is amended by adding paragraph (c) to read as follows:


Sec.  52.55  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of sulfur dioxide?

* * * * *
    (c) Pursuant to Sec.  52.39(g), Alabama's state-determined TR 
SO2 Group 2 allowance allocations established in the March 
27, 2015, SIP revision replace the unit-level TR SO2 Group 2 
allowance allocation provisions of the TR SO2 Group 2 
Trading Program at 40 CFR 97.711(a) for the State for the 2016 control 
period with a list of TR SO2 Group 2 units that commenced 
operation prior to January 1, 2010, in the State and the state-
determined amount of TR SO2 Group 2 allowances allocated to 
each unit on such list for the 2016 control period, as approved by EPA 
on September 22, 2015.

[FR Doc. 2015-24051 Filed 9-21-15; 8:45 am]
 BILLING CODE 6560-50-P