[Federal Register Volume 81, Number 190 (Friday, September 30, 2016)]
[Rules and Regulations]
[Pages 67190-67191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23434]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 97

[EPA-HQ-OAR-2015-0500; FRL-9953-30-OAR]


Availability of Data on Allocations of Cross-State Air Pollution 
Rule Allowances to Existing Electricity Generating Units

AGENCY: Environmental Protection Agency (EPA).

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

-----------------------------------------------------------------------

SUMMARY: Under the Cross-State Air Pollution Rule (CSAPR) trading 
program regulations, the EPA allocates emission allowances to existing 
electricity generating units (EGUs) as provided in a notice of data 
availability (NODA). In the CSAPR Update promulgated earlier this year, 
the EPA finalized default allocations of CSAPR NOX Ozone 
Season Group 2 allowances for the control periods in 2017 and 
subsequent years to existing EGUs in 22 eastern states for which the 
EPA finalized Federal Implementation Plans (FIPs)--Alabama, Arkansas, 
Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, 
Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, Oklahoma, 
Pennsylvania, Tennessee, Texas, Virginia, West Virginia, and Wisconsin. 
Through this NODA, the EPA is providing notice of the availability of 
data on these allowance allocations to existing units, as well as the 
data upon which the allocations are based.

DATES: September 30, 2016.

FOR FURTHER INFORMATION CONTACT: Questions concerning this notice 
should be addressed to Michael Cohen, at (202) 343-9497 or 
[email protected]; or Robert Miller, at (202) 343-9077 or 
[email protected]. The mailing address for each of these 
individuals is U.S. Environmental Protection Agency, Clean Air Markets 
Division, MC 6204M, 1200 Pennsylvania Avenue NW., Washington, DC 20460.

SUPPLEMENTARY INFORMATION: The CSAPR allowance trading programs require 
affected EGUs to hold emission allowances sufficient to cover their 
emissions of nitrogen oxides (NOX) and/or sulfur dioxide in 
each control period. In the CSAPR Update for the 2008 ozone National 
Ambient Air Quality Standards (NAAQS), the EPA established new 
emissions budgets for ozone season NOX emissions in 2017 and 
subsequent years for 22 eastern states and promulgated FIP provisions 
requiring affected EGUs in those states to participate in the CSAPR 
NOX Ozone Season Group 2 Trading Program.\1\ Beginning with 
the 2018 control period, each covered state generally has the option to 
determine how the CSAPR NOX Ozone Season Group 2 allowances 
in its state emissions budget should be allocated among the state's 
EGUs through a State Implementation Plan (SIP) revision.\2\ However, 
for the 2017 control period, and by default for subsequent control 
periods in situations where a state has not provided the EPA with the 
state's own allocations pursuant to an approved SIP revision, the 
allocations are made by the EPA.
---------------------------------------------------------------------------

    \1\ See Cross-State Air Pollution Rule Update for the 2008 Ozone 
NAAQS (September 7, 2016), available at https://www.epa.gov/airmarkets/final-cross-state-air-pollution-rule-update.
    \2\ See 40 CFR 52.38 and 52.39.
---------------------------------------------------------------------------

    In the case of units that commenced commercial operations before 
January 1, 2015, termed ``existing'' units for purposes of this trading 
program, the EPA determined default allocations for all control periods 
in the CSAPR Update rulemaking, according to a methodology finalized in 
the rulemaking but not included in the regulatory text.\3\ Through this 
NODA, the EPA is providing notice of the availability of unit-level 
default allocations of CSAPR NOX Ozone Season Group 2 
allowances for EGUs that commenced commercial operation before January 
1, 2015, as required by the CSAPR regulations.\4\ The data are 
contained in an Excel spreadsheet titled ``Unit-Level Allocations and 
Underlying Data for the

[[Page 67191]]

CSAPR Update for the 2008 Ozone NAAQS'' that is included in the docket 
for the CSAPR Update final rule and has been posted on the EPA's Web 
site at https://www.epa.gov/airmarkets/final-cross-state-air-pollution-rule-update. The spreadsheet contains the default allocations of 
allowances for each control period starting with 2017. For EGUs in all 
covered states except Arkansas, the unit-level allocations in the 
spreadsheet are the same for each year. For EGUs in Arkansas, the unit-
level allocations for many EGUs are higher for the 2017 control period 
because Arkansas' 2017 ozone season NOX emissions budget is 
higher than its emissions budget for the control period in 2018 and 
subsequent years. The spreadsheet also contains the data used to 
compute the allocations and describes how the computations are 
performed. The EPA is not requesting comment on the allocations, 
underlying data, or allocation methodology.
---------------------------------------------------------------------------

    \3\ See CSAPR Allowance Allocations Final Rule TSD, available at 
https://www.epa.gov/airmarkets/final-cross-state-air-pollution-rule-update.
    \4\ See 40 CFR 97.811(a)(1). The approach of allocating emission 
allowances to existing EGUs as provided in a NODA was established in 
the original CSAPR and was unchanged in the CSAPR Update. See, e.g., 
40 CFR 97.511(a)(1).
---------------------------------------------------------------------------

    The EPA notes that an allocation or lack of allocation of emission 
allowances to a given EGU does not constitute a determination that 
CSAPR does or does not apply to the EGU.\5\ The EPA also notes that 
allocations are subject to potential correction under the rule.\6\
---------------------------------------------------------------------------

    \5\ See 40 CFR 97.811(a)(1).
    \6\ See 40 CFR 97.811(c).
---------------------------------------------------------------------------

    In accordance with the allowance recordation deadlines set forth in 
the regulations, the EPA will record allocations of CSAPR 
NOX Ozone Season Group 2 allowances to existing units for 
the 2017 control period by January 3, 2017 (the first business day 
after January 1, 2017).\7\ The EPA will also record allocations for the 
2018 control period by that same date except in instances where a state 
has provided the EPA with timely notice of the state's intent to submit 
a SIP revision with state-determined allowance allocations replacing 
the EPA's default allocations for the 2018 control period.\8\
---------------------------------------------------------------------------

    \7\ See 40 CFR 97.821(a).
    \8\ See 40 CFR 52.38(b)(7) and 97.821(b).
---------------------------------------------------------------------------

    For units commencing commercial operation on or after January 1, 
2015, termed ``new'' units for purposes of the CSAPR NOX 
Ozone Season Group 2 Trading Program, the EPA's default allocations for 
each control period are annually determined during and after the 
control period based on current and prior year emission data, using a 
methodology set out in the regulatory text.\9\
---------------------------------------------------------------------------

    \9\ See 40 CFR 97.812.

    Dated: September 22, 2016.
Reid P. Harvey,
Director, Clean Air Markets Division.
[FR Doc. 2016-23434 Filed 9-29-16; 8:45 am]
 BILLING CODE 6560-50-P