[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7034-7035]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03191]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9974-48-OAR]


Allocations of Cross-State Air Pollution Rule Allowances From New 
Unit Set-Asides for 2017 Control Periods

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability.

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SUMMARY: The Environmental Protection Agency (EPA) is providing notice 
of the availability of data on emission allowance allocations to 
certain units under the Cross-State Air Pollution Rule (CSAPR) trading 
programs. EPA has completed calculations for the second round of 
allocations of allowances from the CSAPR new unit set-asides (NUSAs) 
for the 2017 control periods to new units and has posted spreadsheets 
containing the calculations on EPA's website. In addition to the 
eligible units identified in the previous notice regarding this round 
of 2017 NUSA allocations, EPA is allocating allowances to two newly 
affected units in Wisconsin that were not previously identified as 
eligible to receive such allocations. EPA has also completed 
calculations for allocations of the remaining 2017 NUSA allowances to 
existing units and has posted spreadsheets containing those 
calculations on EPA's website as well.

DATES: February 16, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Miller at (202) 343-9077 or 
[email protected] or Kenon Smith at (202) 343-9164 or 
[email protected].

SUPPLEMENTARY INFORMATION: Under each CSAPR trading program where EPA 
is responsible for determining emission allowance allocations, a 
portion of each state's emissions budget for the program for each 
control period is reserved in a NUSA (and in an additional Indian 
country NUSA in the case of states with Indian country within their 
borders) for allocation to certain units that would not otherwise 
receive allowance allocations. The procedures for identifying the 
eligible units for each control period and for allocating allowances 
from the NUSAs and Indian country NUSAs to these units are set forth in 
the CSAPR trading program regulations at 40 CFR 97.411(b) and 97.412 
(NOX Annual), 97.511(b) and 97.512 (NOX Ozone 
Season Group 1), 97.611(b) and 97.612 (SO2 Group 1), 
97.711(b) and 97.712 (SO2 Group 2), and 97.811(b) and 97.812 
(NOX Ozone Season Group 2). Each NUSA allocation process 
involves up to two rounds of allocations to eligible units, termed 
``new'' units, followed by the allocation to ``existing'' units of any 
allowances not allocated to new units.
    In a notice of data availability (NODA) published in the Federal 
Register on December 15, 2017 (82 FR 59603), EPA provided notice of our 
preliminary identification of units eligible to receive second-round 
NUSA allocations for the 2017 control periods and described the 
procedure for submitting any objections. In this NODA, we are 
responding to objections and providing notice of our calculations of 
the amounts of the second-round 2017 NUSA allocations.
    EPA received one objection in response to the December 15, 2017 
NODA. Madison Gas and Electric Company (MG&E) submitted an objection 
claiming that units U1 and U2 at the West Campus Cogeneration Facility 
(WCCF) in Madison, Wisconsin are eligible to receive second-round 2017 
NUSA allocations because the units became newly affected units under 
the CSAPR trading programs as of January 1, 2017. As discussed below, 
based on the information provided by MG&E we agree that these units are 
eligible to receive second-round 2017 NUSA allocations and we have 
therefore included the units when calculating the allocations.

[[Page 7035]]

    WCCF units U1 and U2 are fossil fuel-fired combustion turbines that 
began operating in 2005. According to MG&E, through 2015 the units 
qualified for an exemption from CSAPR applicability that is available 
to certain cogeneration units, but during 2016 the units no longer met 
the full set of qualifying conditions for the exemption. Applying the 
CSAPR definitions and applicability criteria, MG&E concluded that the 
units would become CSAPR-affected units as of January 1, 2017 and would 
be deemed to ``commence commercial operation'' for CSAPR purposes as of 
that same date.\1\ These conclusions in turn indicated a deadline of 
June 30, 2017 (i.e., 180 calendar days after the units' deemed date of 
commencement of commercial operation) for MG&E to certify monitoring 
systems and to begin monitoring the units' emissions.\2\ MG&E is 
required to hold allowances sufficient to cover the units' reported 
emissions occurring on and after the units' monitor certification 
deadline.\3\
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    \1\ See, e.g., 40 CFR 97.404(b)(1)(ii) and 97.402 (definition of 
``commence commercial operation'').
    \2\ See, e.g., 40 CFR 97.430(b).
    \3\ See, e.g., 40 CFR 97.406(c)(3)(i).
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    Under the CSAPR regulations, a newly affected unit is treated as a 
``new'' unit potentially eligible to receive first-round and/or second-
round NUSA allocations. As relevant here, a newly affected unit is 
generally eligible to receive second-round NUSA allocations with 
respect to its reported emissions occurring on and after its monitor 
certification deadline in the calendar year in which the unit is deemed 
to have commenced commercial operation for CSAPR purposes and in the 
following calendar year.\4\ EPA did not initially identify WCCF units 
U1 and U2 as eligible for second-round 2017 NUSA allocations because 
the monitoring plan MG&E submitted to us for the units included an 
April 26, 2005 date of commencement of commercial operation, reflecting 
the units' actual operating history, rather than the January 1, 2017 
deemed date of commencement of commercial operation for CSAPR purposes. 
Based on the additional information provided by MG&E described above, 
we are now using the January 1, 2017 deemed date of commencement of 
commercial operation to evaluate the units' eligibility, and we 
consequently have included the units when calculating the second-round 
2017 NUSA allocations.
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    \4\ See, e.g., 40 CFR 97.412(a)(9).
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    The final unit-by-unit data and allowance allocation calculations 
are set forth in Excel spreadsheets titled 
``CSAPR_NUSA_2017_NOx_Annual_2nd_Round_Final_Data_New_Units'', 
``CSAPR_NUSA_2017_NOx_Ozone_Season_2nd_Round_Final_Data_New_Units'', 
``CSAPR_NUSA_2017_SO2_2nd_Round_Final_Data_New_Units'', 
``CSAPR_NUSA_2017_NOx_Annual_2nd_Round_Final_Data_Existing_Units'', 
``CSAPR_NUSA_2017_NOx_Ozone_Season_2nd_Round_Final_Data_Existing_Units''
, and ``CSAPR_NUSA_2017_SO2_2nd_Round_Final_Data_Existing_Units'', 
available on EPA's website at https://www.epa.gov/csapr/csapr-compliance-year-2017-nusa-nodas.
    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. We also note that under 40 CFR 97.411(c), 
97.511(c), 97.611(c), 97.711(c), and 97.811(c), allocations are subject 
to potential correction if a unit to which allowances have been 
allocated for a given control period is not actually an affected unit 
as of the start of that control period.

    Authority: 40 CFR 97.411(b), 97.511(b), 97.611(b), 97.711(b), 
and 97.811(b).

    Dated: January 25, 2018.
Reid P. Harvey,
Director, Clean Air Markets Division, Office of Atmospheric Programs, 
Office of Air and Radiation.
[FR Doc. 2018-03191 Filed 2-15-18; 8:45 am]
BILLING CODE 6560-50-P