[Federal Register Volume 81, Number 148 (Tuesday, August 2, 2016)]
[Rules and Regulations]
[Page 50630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18152]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 97

[FRL-9949-93-OAR]


Allocations of Cross-State Air Pollution Rule Allowances From New 
Unit Set-Asides for the 2016 Compliance Year

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; notice of data availability (NODA).

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SUMMARY: The Environmental Protection Agency (EPA) is providing notice 
of emission allowance allocations to certain units under the new unit 
set-aside (NUSA) provisions of the Cross-State Air Pollution Rule 
(CSAPR) federal implementation plans (FIPs) and is responding to 
objections to preliminary calculations. EPA has completed final 
calculations for the first round of NUSA allowance allocations for the 
2016 compliance year and has posted spreadsheets containing the 
calculations on EPA's Web site. The final allocations are unchanged 
from the preliminary calculations. EPA will record the allocated 
allowances in sources' Allowance Management System (AMS) accounts by 
August 1, 2016.

DATES: August 2, 2016.

FOR FURTHER INFORMATION CONTACT: Questions concerning this action 
should be addressed to Robert Miller at (202) 343-9077 or 
[email protected] or to Kenon Smith at (202) 343-9164 or 
[email protected].

SUPPLEMENTARY INFORMATION: Under the CSAPR FIPs, a portion of each 
state budget for each of the four CSAPR emissions trading programs is 
reserved as a NUSA from which allowances are allocated to eligible 
units through an annual one- or two-round process. In a NODA published 
in the Federal Register on May 27, 2016 (81 FR 33636), EPA described 
the allocation process and provided notice of preliminary calculations 
for the first-round 2016 NUSA allowance allocations. EPA also described 
the process for submitting any objections to the preliminary 
calculations.
    In response to the May 27 NODA, EPA received one written objection 
addressing CSAPR NOX annual and NOX ozone season 
allowance recordations for 2016 to Missouri's existing CSAPR units, and 
the number of allowances shown as available for allocation to 
Missouri's new units in 2016 in the May 27 NODA under those programs. 
Due to an allowance recordation error, two facilities in Missouri with 
existing units did not receive the CSAPR NOX annual and 
ozone season existing unit allowance allocations specified in 
Missouri's approved 2016 CSAPR State Implementation Plan (SIP). This 
error in turn impacted the number of NUSA allowances shown in the May 
27 NODA as available for allocation to Missouri's new units for 2016 
under those programs. EPA corrected the recordation error to the 
existing units by recording a total of four additional CSAPR 
NOX Annual allowances and two additional CSAPR 
NOX Ozone Season allowances to two facilities in Missouri, 
consistent with the allocations for those facilities specified by 
Missouri in their 2016 CSAPR SIP. EPA in turn adjusted downward the 
number of allowances available for allocation in Missouri's 2016 CSAPR 
NOX Annual and CSAPR NOX Ozone Season NUSA's by 
four and two allowances, respectively. Since the downward correction to 
the number of allowances available in Missouri's 2016 NUSAs was 
relatively small, the number of allowances allocated to new units in 
Missouri in the first round was not affected.
    The final unit-by-unit data and allowance allocation calculations 
are set forth in Excel spreadsheets titled 
``CSAPR_NUSA_2016_NOx_Annual_1st_Round_Final_Data'', 
``CSAPR_NUSA_2016_NOx_OS_1st_Round_Final_Data'', and 
``CSAPR_NUSA_2016_SO2_1st_Round_Final_Data'', available on 
EPA's Web site at http://www.epa.gov/crossstaterule/actions.html. The 
three spreadsheets show EPA's final determinations of first-round 2016 
NUSA allocations under the CSAPR NOX annual, NOX 
ozone season, and SO2 (Group 1 and Group 2) trading 
programs, respectively.
    Pursuant to CSAPR's allowance recordation timing requirements, the 
allocated NUSA allowances will be recorded in sources' AMS accounts by 
August 1, 2016. EPA notes that an allocation or lack of allocation of 
allowances to a given unit does not constitute a determination that 
CSAPR does or does not apply to the unit. EPA also notes that NUSA 
allocations are subject to potential correction if a unit to which NUSA 
allowances have been allocated for a given compliance year is not 
actually an affected unit as of January 1 (or May 1 in the case of the 
NOX ozone season program) of the compliance year.\1\
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    \1\ See 40 CFR 97.411(c), 97.511(c), 97.611(c), and 97.711(c).

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(Authority: 40 CFR 97.411(b), 97.511(b), 97.611(b), and 97.711(b).)


    Dated: July 18, 2016.
Reid P. Harvey,
Director, Clean Air Markets Division, Office of Atmospheric Programs, 
Office of Air and Radiation.
[FR Doc. 2016-18152 Filed 8-1-16; 8:45 am]
 BILLING CODE 6560-50-P