[Federal Register Volume 84, Number 98 (Tuesday, May 21, 2019)]
[Rules and Regulations]
[Pages 22972-22982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10479]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R02-OAR-2019-0157; FRL-9993-69-Region 2]
Approval of Air Quality Implementation Plans; New York; Cross-
State Air Pollution Rule; NOX Ozone Season Group 2, NOX Annual, and SO2
Group 1 Trading Programs
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
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SUMMARY: The Environmental Protection Agency (EPA) is taking direct
final action to approve a revision to the New York State Implementation
Plan (SIP) addressing requirements of the Cross-State Air Pollution
Rule (CSAPR). Under the CSAPR, large electricity generating units in
New York are subject to Federal Implementation Plans (FIPs) requiring
the units to participate in CSAPR federal trading programs for ozone
season emissions of nitrogen oxides (NOX), annual emissions
of NOX, and annual emissions of sulfur dioxide
(SO2). This action approves into New York's SIP the State's
regulations that replace the default allowance allocation provisions of
the CSAPR federal trading programs for ozone season NOX,
annual NOX, and annual SO2 emissions. The
approval is being issued as a direct final rule without a prior
proposed rule because EPA views it as uncontroversial and does not
anticipate adverse comment.
DATES: This direct final rule will be effective on June 20, 2019,
without further notice, unless the EPA receives adverse comment by June
20, 2019. If EPA receives adverse comment, we will publish a timely
withdrawal of the direct final rule in the Federal Register informing
the public that the rule will not take effect.
ADDRESSES: Submit your comments, identified by Docket ID number EPA-
R02-OAR-2019-0157, at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or withdrawn. The EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. The EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Kenneth Fradkin, Air Programs Branch,
Environmental Protection Agency, 290 Broadway, 25th Floor, New York,
New York 10007-1866, (212) 637-3702, or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What action is EPA taking today?
[[Page 22973]]
II. Background on CSAPR and CSAPR-Related SIP Revisions
III. Criteria for Approval of CSAPR-Related SIP Revisions
IV. New York's Submittals and EPA's Analysis
V. EPA's Action on New York's Submittals
VI. Incorporation by Reference
VII. Statutory and Executive Order Reviews
I. What action is EPA taking today?
The EPA is taking direct final action to approve New York's
November 30, 2018 SIP submittal concerning CSAPR \1\ trading programs
for ozone-season emissions of NOX, annual emissions of
NOX, and annual emissions of SO2. Large Electric
Generating Units (EGUs) in New York are subject to CSAPR FIPs that
require the units to participate in the federal CSAPR NOX
Ozone Season Group 2 Trading Program, the federal CSAPR NOX
Annual Trading Program, and the federal CSAPR SO2 Group 1
Trading Program. CSAPR provides a process for the submission and
approval of SIP revisions to replace certain provisions of the CSAPR
FIPs while the remaining FIP provisions continue to apply. This type of
CSAPR SIP is termed an abbreviated SIP.
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\1\ Federal Implementation Plans; Interstate Transport of Fine
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR
48208 (August 8, 2011) (codified as amended at 40 CFR 52.38 and
52.39 and 40 CFR part 97).
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The New York State Department of Environmental Conservation (DEC)
amended portions of Title 6 of the New York Codes, Rules and
Regulations (6 NYCRR) to incorporate CSAPR requirements into the
State's rules and allow the DEC to allocate CSAPR allowances to
regulated entities in New York. 6 NYCRR Part 243, ``Transport Rule
NOX Ozone Season Trading Program,'' has been repealed and
replaced in its entirety with a new rule, 6 NYCRR Part 243, ``CSAPR
NOX Ozone Season Group 2 Trading Program.'' 6 NYCRR Part
244, ``Transport Rule NOX Annual Trading Program,'' has been
repealed and replaced in its entirety with a new rule, 6 NYCRR Part
244, ``CSAPR NOX Annual Trading Program.'' 6 NYCRR Part 245,
``Transport Rule SO2 Group 1 Trading Program,'' has also
been repealed and replaced in its entirety with a new rule, 6 NYCRR
Part 245, ``CSAPR SO2 Group 1 Trading Program.'' Attendant
revisions were made to 6 NYCRR Part 200, ``General Provisions,'' to
update the list of referenced materials at Subpart 200.9 that are cited
in the amended New York regulations. The EPA is taking direct final
action to approve into the New York SIP the revised versions of 6 NYCRR
Parts 200 (Subpart 200.9), 243, 244, and 245 included in the November
30, 2018 submission.
The EPA is also taking direct final action to repeal from the SIP
previous versions of 6 NYCRR Part 243, 6 NYCRR Part 244, and 6 NYCRR
Part 245 which implemented New York's discontinued CAIR program. New
York adopted amendments to 6 NYCRR Part 243, 6 NYCRR Part 244, and 6
NYCRR Part 245 that repealed and replaced CAIR trading program rules
with CSAPR trading rules on November 10, 2015. Subsequently, on
November 11, 2018, New York adopted amendments to 6 NYCRR Part 243, 6
NYCRR Part 244, and 6 NYCRR Part 245 that repealed and replaced the
November 15, 2015 adopted rules that implemented New York's CSAPR
program with new versions of New York's CSAPR trading program rules.
The rules being repealed from the SIP are 6 NYCRR Part 243, ``CAIR
NOX Ozone Season Trading Program,''; 6 NYCRR Part 244,
``CAIR NOX Annual Trading Program,''; and 6 NYCRR Part 245,
``CAIR SO2 Trading Program.''
The EPA is also taking direct final action to approve into the SIP
a revised version of 6 NYCRR Part 200 (Subpart 200.1) that was
submitted to the EPA on July 23, 2015 to address updated definitions at
Part 200.1(f) that were associated with a repeal of 6 NYCRR Part 203,
``Indirect Sources of Air Contamination.''
The revised versions of 6 NYCRR Parts 200 (Subpart 200.9), 243,
244, and 245 included in the November 30, 2018 SIP submission replace
the previous versions of those rules that were included in a December
1, 2015 SIP submission. The EPA identified deficiencies in the December
1, 2015 submission but on November 20, 2017 conditionally approved
those previous versions of Parts 200, 244, and 245 (but not Part 243)
into the SIP (82 FR 57362, December 5, 2017). In a July 6, 2017 letter
to the EPA, New York committed to submitting a SIP revision that
addressed the identified deficiencies by December 29, 2017. However,
New York's response to the conditional approval was not submitted to
the EPA by December 29, 2017. The November 30, 2018 SIP submittal
addresses the identified deficiencies, but was submitted approximately
11 months late, so the conditional approval is treated as a
disapproval.\2\
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\2\ In reliance on the December 5, 2017 conditional approval,
allocations of CSAPR NOX Annual and CSAPR SO2
Group 1 allowances for the 2017, 2018, 2019, and 2020 control
periods were based on the state-determined allocation methodology.
Following the state's failure to submit by December 29, 2017,
allocations of allowances for those programs for the 2021 and 2022
control periods were based on the default allowance allocation
provisions in the federal trading program regulations.
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The EPA did not take action on the previous version of 6 NYCRR Part
243, ``Transport Rule NOX Ozone Season Trading Program,''
included in New York's December 1, 2015 submission. Following that
submission, the EPA finalized the CSAPR Update rule\3\ to address
Eastern states' interstate air pollution mitigation obligations with
regard to the 2008 Ozone National Ambient Air Quality Standard (NAAQS).
Among other things, starting in 2017, the CSAPR Update rule required
New York EGUs to participate in the new CSAPR NOX Ozone
Season Group 2 Trading Program instead of the earlier CSAPR
NOX Ozone Season Trading Program (now renamed the ``Group
1'' program) and replaced the ozone season budget for New York with a
lower budget developed to address the revised and more stringent 2008
Ozone NAAQS. In a July 14, 2016 letter to the EPA, New York indicated
that the State would revise 6 NYCRR Part 243 to conform with the final
CSAPR Update. As indicated earlier in this section New York repealed 6
NYCRR Part 243 and replaced the rule in its entirety with a new rule, 6
NYCRR Part 243, ``CSAPR NOX Ozone Season Group 2 Trading
Program''.
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\3\ 81 FR 74504 (October 26, 2016).
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This direct final action approves into New York's SIP state-
determined allowance allocation procedures for ozone-season
NOX allowances that would replace EPA's default allocation
procedures for the control periods in 2021 and beyond. Additionally,
EPA is taking direct final action to approve into New York's SIP state-
determined allowance allocation procedures for annual NOX
and SO2 allowances that would replace EPA's default
allocation procedures for the control periods in 2023 and beyond. The
approval of this SIP revision does not alter any provision of either
the CSAPR NOX Ozone Season Group 2 Trading Program, the
CSAPR NOX Annual Trading Program, or the CSAPR
SO2 Group 1 Trading Program as applied to New York units
other than the allowance allocation provisions. The FIP provisions
requiring those units to participate in the programs (as modified by
this SIP revision) remain in place.
Section II of this document summarizes relevant aspects of the
CSAPR federal trading programs and FIPs as well as the range of
opportunities states have to submit SIP revisions to modify or replace
the FIP requirements while continuing to rely on CSAPR's trading
programs to address
[[Page 22974]]
the states' obligations to mitigate interstate air pollution. Section
III describes the specific criteria for approval of such SIP revisions.
Section IV contains the EPA's analysis of New York's SIP submittal, and
Section V sets forth EPA's action on New York's submittals.
II. Background on CSAPR and CSAPR-Related SIP Revisions
The EPA issued CSAPR in July 2011 to address the requirements of
CAA section 110(a)(2)(D)(i)(I) concerning interstate transport of air
pollution. As amended (including the 2016 CSAPR Update), CSAPR requires
27 Eastern states to limit their statewide emissions of SO2
and/or NOX to mitigate transported air pollution unlawfully
impacting other states' ability to attain or maintain four NAAQS: The
1997 annual PM2.5 NAAQS, the 2006 24-hour PM2.5
NAAQS, the 1997 Ozone NAAQS, and the 2008 Ozone NAAQS. The CSAPR
emissions limitations are defined in terms of maximum statewide
``budgets'' for emissions of annual SO2, annual
NOX, and/or ozone season NOX by each covered
state's large EGUs. The CSAPR state budgets are implemented in two
phases of generally increasing stringency, with the Phase 1 budgets
applying to emissions in 2015 and 2016, and the Phase 2 (and CSAPR
Update) budgets applying to emissions in 2017 and later years. As a
mechanism for achieving compliance with the emissions limitations,
CSAPR establishes five federal emissions trading programs: A program
for annual NOX emissions, two geographically separate
programs for annual SO2 emissions, and two geographically
separate programs for ozone season NOX emissions. CSAPR also
establishes FIP requirements applicable to the large EGUs in each
covered state. The CSAPR FIP provisions require each state's EGUs to
participate in up to three of the five CSAPR trading programs.
CSAPR includes provisions under which states may submit and the EPA
will approve SIP revisions to modify or replace the CSAPR FIP
requirements while allowing states to continue to meet their transport-
related obligations using either CSAPR's federal emissions trading
programs or state emissions trading programs integrated with the
federal programs.\4\ Through such a SIP revision, a state may replace
EPA's default provisions for allocating emission allowances among the
state's units, employing any state-selected methodology to allocate or
auction the allowances, subject to timing criteria and limits on
overall allowance quantities. In the case of CSAPR's federal trading
programs for ozone season NOX emissions (or integrated state
trading programs), a state may also expand trading program
applicability to include certain smaller EGUs.\5\ If a state wants to
replace CSAPR FIP requirements with SIP requirements under which the
state's units participate in a state trading program that is integrated
with and identical to the federal trading program even as to the
allocation and applicability provisions, the state may submit a SIP
revision for that purpose as well. However, no emissions budget
increases or other substantive changes to the trading program
provisions are allowed. A state whose units are subject to multiple
CSAPR FIPs and federal trading programs may submit SIP revisions to
modify or replace either some or all of those FIP requirements.
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\4\ See 40 CFR 52.38, 52.39. States also retain the ability to
submit SIP revisions to meet their transport-related obligations
using mechanisms other than the CSAPR federal trading programs or
integrated state trading programs.
\5\ States covered by both the CSAPR Update and the
NOX SIP Call have the additional option to expand
applicability under the CSAPR NOX Ozone Season Group 2
Trading Program to include non-EGUs that would have participated in
the former NOX Budget Trading Program.
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States can submit two basic forms of CSAPR-related SIP revisions
effective for emissions control periods in 2017 or later years.\6\
Specific criteria for approval of each form of SIP revision are set
forth in the CSAPR regulations, as described in section III below.
Under the first alternative--an ``abbreviated'' SIP revision--a state
may submit a SIP revision that upon approval replaces the default
allowance allocation and/or applicability provisions of a CSAPR federal
trading program for the state.\7\ Approval of an abbreviated SIP
revision leaves the corresponding CSAPR FIP and all other provisions of
the relevant federal trading program in place for the state's units.
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\6\ CSAPR also provides for a third, more streamlined form of
SIP revision that is effective only for control periods in 2016 and
is not relevant here. See Sec. 52.38(a)(3), (b)(3), (b)(7); Sec.
52.39(d), (g).
\7\ Sec. 52.38(a)(4), (b)(4), (b)(8); Sec. 52.39(e), (h).
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Under the second alternative--a ``full'' SIP revision--a state may
submit a SIP revision that upon approval replaces a CSAPR federal
trading program for the state with a state trading program integrated
with the federal trading program, so long as the state trading program
is substantively identical to the federal trading program or does not
substantively differ from the federal trading program except as
discussed above with regard to the allowance allocation and/or
applicability provisions.\8\ For purposes of a full SIP revision, a
state may either adopt state rules with complete trading program
language, incorporate the federal trading program language into its
state rules by reference (with appropriate conforming changes), or
employ a combination of these approaches.
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\8\ Sec. 52.38(a)(5), (b)(5), (b)(9); Sec. 52.39(f), (i).
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The CSAPR regulations identify several important consequences and
limitations associated with approval of a full SIP revision. First,
upon the EPA's approval of a full SIP revision as correcting the
deficiency in the state's SIP that was the basis for a particular set
of CSAPR FIP requirements, the obligation to participate in the
corresponding CSAPR federal trading program is automatically eliminated
for units subject to the state's jurisdiction without the need for a
separate EPA withdrawal action, so long as the EPA's approval of the
SIP is full and unconditional.\9\ Second, approval of a full SIP
revision does not terminate the obligation to participate in the
corresponding CSAPR federal trading program for any units located in
any Indian country within the borders of the state, and if and when a
unit is located in Indian country within a state's borders, the EPA may
modify the SIP approval to exclude from the SIP, and include in the
surviving CSAPR FIP instead, certain trading program provisions that
apply jointly to units in the state and to units in Indian country
within the state's borders.\10\ Finally, if at the time a full SIP
revision is approved EPA has already started recording allocations of
allowances for a given control period to a state's units, the federal
trading program provisions authorizing the EPA to complete the process
of allocating and recording allowances for that control period to those
units will continue to apply, unless the EPA's approval of the SIP
revision provides otherwise.\11\
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\9\ Sec. 52.38(a)(6), (b)(10(i); Sec. 52.39(j).
\10\ Sec. 52.38(a)(5)(iv)-(v), (a)(6), (b)(5)(v)-(vi),
(b)(9)(vi)-(vii), (b)(10)(i); Sec. 52.39(f)(4)-(5), (i)(4)-(5),
(j).
\11\ Sec. 52.38(a)(7), (b)(11)(i); Sec. 52.39(k).
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III. Criteria for Approval of CSAPR-Related SIP Revisions
Each CSAPR-related abbreviated or full SIP revision must meet the
following general submittal criteria:
Timeliness and completeness of SIP submittal. If a state
wants to replace the default allowance allocation or applicability
provisions of a CSAPR federal trading program, the complete SIP
revision must be submitted to the EPA by December 1 of the year before
[[Page 22975]]
the deadlines described below for submitting allocation or auction
amounts to EPA for the first control period for which the state wants
to replace the default allocation and/or applicability provisions.\12\
This SIP submission deadline is inoperative in the case of a SIP
revision that seeks only to replace a CSAPR FIP and federal trading
program with a SIP and a substantively identical state trading program
integrated with the federal trading program. The SIP submittal
completeness criteria in section 2.1 of appendix V to 40 CFR part 51
also apply.
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\12\ 40 CFR 52.38(a)(4)(ii), (a)(5)(vi), (b)(4)(iii),
(b)(5)(vii), (b)(8)(iv), (b)(9)(viii); Sec. 52.39(e)(2), (f)(6),
(h)(2), (i)(6).
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In addition to the general submittal criteria, a CSAPR-related
abbreviated or full SIP seeking to address the allocation or auction of
emission allowances must meet the following further criteria:
Methodology covering all allowances potentially requiring
allocation. For each federal trading program addressed by a SIP
revision, the SIP revision's allowance allocation or auction
methodology must replace both the federal program's default allocations
to existing units \13\ at 40 CFR 97.411(a), 97.511(a), 97.611(a),
97.711(a), or 97.811(a) as applicable, and the federal trading
program's provisions for allocating allowances from the new unit set-
aside (NUSA) for the state at 40 CFR 97.411(b)(1) and 97.412(a),
97.511(b)(1) and 97.512(a), 97.611(b)(1) and 97.612(a), 97.711(b)(1)
and 97.712(a), or 97.811(b)(1) and 97.812(a), as applicable.\14\ In the
case of a state with Indian country within its borders, while the SIP
revision may neither alter nor assume the federal program's provisions
for administering the Indian country NUSA for the state, the SIP
revision must include procedures addressing the disposition of any
otherwise unallocated allowances from an Indian country NUSA that may
be made available for allocation by the state after EPA has carried out
the Indian country NUSA allocation procedures.\15\
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\13\ In the context of the approval criteria for CSAPR-related
SIP revisions, an ``existing unit'' is a unit for which EPA has
determined default allowance allocations (which could be allocations
of zero allowances) in the rulemakings establishing and amending
CSAPR. Spreadsheets showing EPA's default allocations to existing
units are posted at https://www.epa.gov/csapr/unit-level-allocations-under-csapr-transport-rule-fips-after-tolling and
https://www.epa.gov/airmarkets/final-cross-state-air-pollution-rule-update.
\14\ Sec. 52.38(a)(4)(i), (a)(5)(i), (b)(4)(ii), (b)(5)(ii),
(b)(8)(iii), (b)(9)(iii); Sec. 52.39(e)(1), (f)(1), (h)(1), (i)(1).
\15\ See Sec. Sec. 97.412(b)(10)(ii), 97.512(b)(10)(ii),
97.612(b)(10)(ii), 97.712(b)(10)(ii), 97.812(b)(10)(ii).
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Assurance that total allocations will not exceed the state
budget. For each federal trading program addressed by a SIP revision,
the total amount of allowances auctioned or allocated for each control
period under the SIP revision (prior to the addition by EPA of any
unallocated allowances from any Indian country NUSA for the state)
generally may not exceed the state's emissions budget for the control
period less the sum of the amount of any Indian country NUSA for the
state for the control period and any allowances already allocated to
the state's units for the control period and recorded by EPA.\16\ Under
its SIP revision, a state is free to not allocate allowances to some or
all potentially affected units, to allocate or auction allowances to
entities other than potentially affected units, or to allocate or
auction fewer than the maximum permissible quantity of allowances and
retire the remainder. Under the CSAPR NOX Ozone Season Group
2 Trading Program only, additional allowances may be allocated if the
state elects to expand applicability to non-EGUs that would have been
subject to the former NOX Budget Trading Program established
for compliance with the NOX SIP Call.\17\
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\16\ Sec. 52.38(a)(4)(i)(A), (a)(5)(i)(A), (b)(4)(ii)(A),
(b)(5)(ii)(A), (b)(8)(iii)(A), (b)(9)(iii)(A); Sec. 52.39(e)(1)(i),
(f)(1)(i), (h)(1)(i), (i)(1)(i).
\17\ Sec. 52.38(b)(8)(iii)(A), (b)(9)(iii)(A).
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Timely submission of state-determined allocations to EPA.
The SIP revision must require the state to submit to the EPA the
amounts of any allowances allocated or auctioned to each unit for each
control period (other than allowances initially set aside in the
state's allocation or auction process and later allocated or auctioned
to such units from the set-aside amount) by the following deadlines
shown in Tables 1 and 2 below.\18\ Note that the submission deadlines
differ for amounts allocated or auctioned to units considered existing
units for CSAPR purposes and amounts allocated or auctioned to other
units.
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\18\ Sec. 52.38(a)(4)(i)(B)-(C), (a)(5)(i)(B)-(C),
(b)(4)(ii)(B)-(C), (b)(5)(ii)(B)-(C), (b)(8)(iii)(B)-(C),
(b)(9)(iii)(B)-(C); Sec. 52.39(e)(1)(ii)-(iii), (f)(1)(ii)-(iii),
(h)(1)(ii)-(iii), (i)(1)(ii)-(iii).
Table 1--CSAPR NOX Annual, CSAPR NOX Ozone Season Group 1, CSAPR SO2
Group 1, and CSAPR SO2 Group 2 Trading Programs
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Deadline for
Year of the submission to EPA of
Units control period allocations or
auction results
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Existing...................... 2017 and 2018.... June 1, 2016.
2019 and 2020.... June 1, 2017.
2021 and 2022.... June 1, 2018.
2023 and later June 1 of the fourth
years. year before the year
of the control
period.
Other......................... All years........ July 1 of the year of
the control period.
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Table 2--CSAPR NOX Ozone Season Group 2 Trading Program
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Deadline for
Year of the submission to EPA of
Units control period allocations or
auction results
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Existing...................... 2019 and 2020.... June 1, 2018.
2021 and 2022.... June 1, 2019.
2023 and 2024.... June 1, 2020.
2025 and later June 1 of the fourth
years. year before the year
of the control
period.
Other......................... All years........ July 1 of the year of
the control period.
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No changes to allocations already submitted to EPA or
recorded. The SIP revision must not provide for any change to the
amounts of allowances allocated or auctioned to any unit after those
amounts are submitted to EPA or any change to any allowance allocation
determined and recorded by EPA under
[[Page 22976]]
the federal trading program regulations.\19\
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\19\ Sec. 52.38(a)(4)(i)(D), (a)(5)(i)(D), (b)(4)(ii)(D),
(b)(5)(ii)(D), (b)(8)(iii)(D), (b)(9)(iii)(D); Sec.
52.39(e)(1)(iv), (f)(1)(iv), (h)(1)(iv), (i)(1)(iv).
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No other substantive changes to federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also expands program applicability as described below.\20\ Any new
definitions adopted in the SIP revision (in addition to the federal
trading program's definitions) may apply only for purposes of the SIP
revision's allocation or auction provisions.\21\
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\20\ Sec. 52.38(a)(4), (a)(5), (b)(4), (b)(5), (b)(8), (b)(9);
Sec. 52.39(e), (f), (h), (i).
\21\ Sec. 52.38(a)(4)(i), (a)(5)(ii), (b)(4)(ii), (b)(5)(iii),
(b)(8)(iv), (b)(9)(iv); Sec. 52.39(e)(1), (f)(2), (h)(1), (i)(2).
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In addition to the general submittal criteria, a CSAPR-related
abbreviated or full SIP revision seeking to expand applicability under
their integrated state trading programs (which is allowed for CSAPR's
NOX ozone season programs only) must meet the following
further criteria:
Only EGUs with nameplate capacity of at least 15 MWe.\22\
The SIP revision may expand applicability only to additional fossil
fuel-fired boilers or combustion turbines serving generators producing
electricity for sale, and only by lowering the generator nameplate
capacity threshold used to determine whether a particular boiler or
combustion turbine serving a particular generator is a potentially
affected unit. The nameplate capacity threshold adopted in the SIP
revision may not be less than 15 MWe.\23\ In addition or alternatively,
applicability may be extended to non-EGUs that would have been subject
to the former NOX Budget Trading Program established for
compliance with the NOX SIP Call.\24\
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\22\ Megawatts of electricity
\23\ Sec. 52.38(b)(4)(i), (b)(5)(i), (b)(8)(i), (b)(9)(i).
\24\ Sec. 52.38(b)(8)(ii), (b)(9)(ii).
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No other substantive changes to federal trading program
provisions. The SIP revision may not substantively change any other
trading program provisions, except in the case of a SIP revision that
also addresses the allocation or auction of emission allowances as
described above.\25\
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\25\ Sec. 52.38(b)(4), (b)(5), (b)(8), (b)(9).
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In addition to the general submittal criteria and the other
applicable criteria described above, a CSAPR-related full SIP revision
must meet the following further criteria:
Complete, substantively identical trading program
provisions. The SIP revision must adopt complete state trading program
regulations substantively identical to the complete federal trading
program regulations at 40 CFR 97.402 through 97.435, 97.502 through
97.535, 97.602 through 97.635, 97.702 through 97.735, or 97.802 through
97.835, as applicable, except as described above in the case of a SIP
revision that seeks to replace the default allowance allocation and/or
applicability provisions.\26\
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\26\ Sec. 52.38(a)(5), (b)(5), (b)(9); Sec. 52.39(f), (i).
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Only non-substantive substitutions for the term ``State.''
The SIP revision may substitute the name of the state for the term
``State'' as used in the federal trading program regulations, but only
to the extent that EPA determines that the substitutions do not
substantively change the trading program regulations.\27\
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\27\ Sec. Sec. 52.38(a)(5)(iii), (b)(5)(iv), (b)(9)(v);
52.39(f)(3), (i)(3).
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Exclusion of provisions addressing units in Indian
country. The SIP revision may not impose requirements on any unit in
any Indian country within the state's borders and must not include the
federal trading program provisions governing allocation of allowances
from any Indian country NUSA for the state.\28\
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\28\ Sec. Sec. 52.38(a)(5)(iv), (b)(5)(v), (b)(9)(vi);
52.39(f)(4), (i)(4).
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IV. New York's Submittals and EPA's Analysis
A. New York's SIP Submittals
On November 30, 2018, New York submitted to the EPA an abbreviated
SIP revision that, if approved, would replace the default allowance
allocation provisions of the CSAPR NOX Ozone Season Group 2,
CSAPR NOX Annual, and CSAPR SO2 Group 1 Trading
Programs for the state's EGUs with provisions establishing state-
determined allocations but would leave the corresponding CSAPR FIPs and
all other provisions of the trading programs in place.
New York's allowance allocation procedures for ozone season
NOX allowances would replace EPA's default allocation
procedures for the control periods in 2021 and beyond. New York's
allowance allocation procedures for annual NOX and
SO2 allowances would replace EPA's default allocation
procedures for the control periods in 2023 and beyond.
The November 30, 2018 SIP submittal includes the following adopted
state rules: 6 NYCRR Part 243, ``CSAPR NOX Ozone Season
Group 2 Trading Program,'' 6 NYCRR Part 244, ``CSAPR NOX
Annual Trading Program,'' and 6 NYCRR Part 245, ``CSAPR SO2
Group 1 Trading Program.'' Previous versions of the rules, i.e., 6
NYCRR Part 243, ``Transport Rule NOX Ozone Season Trading
Program, 6 NYCRR Part 244, ``Transport Rule NOX Annual
Trading Program,'' and 6 NYCRR Part 245, ``Transport Rule
SO2 Group 1 Trading Program,'' have been repealed and
replaced in their entirety with the new rules. Attendant revisions were
made to 6 NYCRR Part 200, Subpart 200.9, ``General Provisions,
Referenced Material,'' to update the list of referenced material that
are cited in the amended New York regulations. The regulations were
adopted on November 11, 2018, and effective on January 2, 2019. New
York's Parts 243, 244 and 245, submitted to EPA on November 30, 2018,
allow the State to replace the provisions of the CSAPR NOX
Ozone Season Group 2, CSAPR NOX Annual, and CSAPR
SO2 Group 1 trading program allocation methodology with its
own methodology. Parts 243, 244 and 245 apply to units that serve an
electrical generator with a nameplate capacity equal to or greater than
25 megawatts of electrical output and sell any amount of electricity.
The control period for Part 243 runs from May 1 to September 30. The
control periods for Parts 244 and 245 run from January 1 to December
31. DEC would allocate CSAPR NOX Ozone Season Group 2
allowances beginning with the 2021 control period; and CSAPR
NOX Annual and SO2 Group 1 allowances beginning
with the 2023 control period.
For existing units, New York's allocation methodology is based on
the average of recent emissions (i.e., the average of the three last
years for which data is available) from all New York Transport Rule
units. Five percent of the statewide budgets for annual emissions of
SO2, annual emissions of NOX, and ozone season
emissions of NOX would be set aside for new units, and the
remainder of the statewide budgets, but at least ten percent, will be
allocated to the Energy Efficiency and Renewable Energy Technology
(EERET) account. If the allocation to the EERET account would be less
than the prescribed minimum after allocations to existing units based
on the 3-year average of emissions and an allocation of five percent to
the new unit set-aside, allocations to existing units would be reduced
proportionally by the amounts necessary to ensure that ten percent of
the budget is allocated to the EERET account.
The DEC will distribute all allowances at no cost except for
allowances held in the EERET account, which will be administered by the
New York State Energy Research and
[[Page 22977]]
Development Authority (NYSERDA). The sale of allowances by NYSERDA will
be used to fund energy efficiency projects, renewable energy, or clean
energy technology. Any EERET allowances that are not sold or
distributed by NYSERDA within 12 months of the initial allocation to
the EERET account will be returned to the DEC for retirement or
reallocation.
On July 23, 2015, New York submitted a SIP submittal, which
included a revised version of 6 NYCRR Part 200 (Subpart 200.1) that was
adopted by the State. The definition for ``Air contamination source or
emission source'' under Subdivision 200.1(f) was revised to address the
repeal of 6 NYCRR Part 203, ``Indirect Sources of Air Contamination''.
The regulation was adopted on April 18, 2013, a notice of adoption was
filed on April 19, 2013, and the regulation became effective on May 19,
2013.
B. EPA's Analysis of New York's Submittals
A. November 30, 2018 Submittal
1. Timeliness and Completeness of New York's SIP Submittal
New York's SIP revision seeks to establish state-determined
allocations starting with the 2021 control period for the CSAPR
NOX Ozone Season Group 2 trading program and the 2023
control period for the CSAPR NOX Annual and SO2
Group 1 trading programs. For the NOX Annual and
SO2 Group 1 trading programs, under 40 CFR 52.38(a)(4)(i)(B)
and 52.39(e)(1)(ii), the deadline for submission of state-determined
allocations for the 2023 control periods is June 1, 2019, which under
52.38(a)(4)(ii) and 52.39(e)(2) makes December 1, 2018, the deadline
for submission to the EPA of a complete SIP revision establishing
state-determined allocations for those control periods. For the
NOX Ozone Season Group 2 trading program, under 40 CFR
52.38(b)(8)(iii)(B) the allocation submission deadline for the 2021
control period is June 1, 2019, triggering a December 1, 2018 deadline
for a SIP submittal under 40 CFR 52.38(b)(8)(iv). New York submitted
its SIP revision to EPA by letter dated and delivered electronically on
November 30, 2018, and EPA has determined that the submittal complies
with the applicable minimum completeness criteria of 40 CFR part 51,
Appendix V, Section 2.1. New York has therefore met the requirements
for timeliness and completeness criteria of its CSAPR SIP submittal for
all three programs.
2. Methodology Covering All Allowances Potentially Requiring Allocation
Sections 243.3 through 243.6, 244.3 through 244.6, and 245.3
through 245.6 of the New York rules provide the allocation methodology
adopted by New York in the SIP revision. Sections 243.3 through 243.6
replace the provisions of 40 CFR 97.811(a), 97.811(b)(1), and 97.812(a)
for allocations of CSAPR NOX Ozone Season Group 2
allowances; Sections 244.3 through 244.6 replace the provisions of 40
CFR 97.411(a), 97.411(b)(1), and 97.412(a) for allocations of
NOX Annual allowances; and Sections 245.3 through 245.6
replace the provisions of 40 CFR 97.611(a), 97.611(b)(1), and 97.612(a)
for allocations of SO2 Group 1 allowances. New York's
methodology addresses allocation of allowances that under the default
allocation provisions for the federal trading programs would be
allocated to existing units as well as allowances that would be
allocated to new units from the new unit set-asides established for New
York under the federal trading programs. New York's rules also include
provisions for the disposition of any otherwise unallocated Indian
country new unit set-aside allowances. New York's rules therefore meet
the conditions under 40 CFR 52.38(a)(4)(i), 52.38(b)(8)(iii),
52.39(e)(1), 97.412(b)(10)(ii), 97.612(b)(10)(ii), and
97.812(b)(10)(ii) that the state's allocation methodology must cover
all allowances potentially requiring allocation by the state.
3. Assurance That Total Allocations Will Not Exceed the State Budget
Sections 243.3, CSAPR NOX Ozone Season Group 2 Trading
Program budgets, 244.3, CSAPR NOX Annual Trading Program
budgets, and 245.3, CSAPR SO2 Group 1 Trading Program
budgets, set forth the total amounts of CSAPR NOX Ozone
Season Group 2 allowances, CSAPR NOX Annual allowances, and
CSAPR SO2 Group 1 allowances to be allocated to New York
units for each control period under the state trading programs.
Section 243.3 provides for allowance allocations equal to New
York's NOX Ozone Season Group 2 trading budget at 40 CFR
97.810(a)(15), which is 5,135 tons, less the amount of the Indian
country new unit set-aside (5 tons). Section 244.3 provides for
allowance allocations equal to New York's NOX Annual trading
budget at 40 CFR 97.410(a)(14), which is 21,722 tons, less the amount
of the Indian country new unit set-aside (22 tons). Section 245.3
provides for allowance allocations equal to New York's SO2
Group 1 budget at 40 CFR 610(a)(9), which is 27,556 tons, less the
amount of the Indian country new unit set-aside (28 tons). EPA has not
yet allocated or recorded any allowances to New York units for the
control periods for which New York's rules would establish a state-
determined allocation methodology. The allocation methodology in New
York's SIP revision, therefore, meets the conditions under 40 CFR
52.38(a)(4)(i)(A), 52.38(b)(8)(iii)(A), and 52.39(e)(1)(i) that the
total amount of allowances allocated under the SIP revision may not
exceed the state's budget for the control period less the amount of the
Indian country NUSA for the state and any allowances already allocated
and recorded by the EPA.
4. Timely Submission of State-Determined Allocations to EPA
Sections 243.4, 244.4, and 245.4 provide for allowance allocations
for existing units to be submitted to the EPA. With respect to CSAPR
NOX Ozone Season Group 2 allowance allocations for existing
units, Section 243.4 provides that New York will submit allocations for
the 2021 and 2022 control periods by June 1, 2019; the state will
submit allocations for the 2023 and 2024 control periods by June 1,
2020; and by June 1, 2021, and June 1st of each year thereafter, the
state will submit allocations for the control period in the fourth year
following the year of the submission deadline. With respect to CSAPR
NOX Annual and CSAPR SO2 Group 1 allowance
allocations for existing units, Sections 244.4 and 245.4 provide that
the state will submit allocations by June 1, 2019,\29\ and by June 1st
of each year thereafter, for the control period in the fourth year
following the year of the submission deadline.
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\29\ Allowance allocations for the 2023 control period would be
submitted by June 1, 2019.
---------------------------------------------------------------------------
With respect to NUSA allowance allocations under all three
programs, Sections 243.5(a)(7), 244.5(a)(7), and 245.5(a)(7) indicate
that the state will submit state-determined allocations to the EPA by
July 1st of the control period.
New York's SIP revision meets the criteria under 40 CFR
52.38(a)(4)(i)(B)-(C), 52.38(b)(8)(iii)(B)-(C), and 52.39(e)(1)(ii)-
(iii) requiring that the SIP revision provide for submission of state-
determined allowance allocations to EPA by the deadlines specified in
those provisions.
[[Page 22978]]
5. No Changes to Allocations Already Submitted to EPA or Recorded
The New York rules include no provisions allowing alteration of
allocations after the allocation amounts have been provided to the EPA
and no provisions allowing alteration of any allocations made and
recorded by the EPA under the federal trading program regulations,
thereby meeting the condition under 40 CFR 52.38(a)(4)(i)(D),
52.38(b)(8)(iii)(D), and 52.39(e)(1)(iv).
6. No Other Substantive Changes to Federal Trading Program Provisions
In addition to the allowance allocation provisions in New York's
rules, Sections 243.1, 244.1 and 245.1 address applicability and
Sections 243.2, 244.2, and 245.2 set forth relevant definitions. The
applicability provisions and most of the definitions directly reference
the corresponding provisions in the federal trading program
regulations, and the remaining definitions do not conflict with the
definitions in the federal trading program regulations. The EPA has
therefore determined that the SIP revision meets the requirements of 40
CFR 52.38(a)(4), 52.38(b)(8), and 52.39(e) by making no substantive
changes to the federal trading program regulations beyond the
provisions addressing allowance allocations.
Finally, as stated in section I, the EPA conditionally approved
previous versions of 6 NYCRR Parts 200, 244 and 245 in an action
published on December 5, 2017 (82 FR 57362), but the state did not
submit a revised SIP that addressed EPA-identified deficiencies within
the required time frame New York's November 30, 2018 SIP revision
approved in this direct final action does fully address the
deficiencies that the EPA identified in the December 5, 2017 final
action.
7. Removal of CAIR Trading Program Provisions
As discussed earlier, New York's CSAPR rules were adopted to
replace previous versions of 6 NYCRR Part 243, 6 NYCRR Part 244, and 6
NYCRR Part 245 which implemented New York's discontinued CAIR trading
programs. For the reasons discussed below, the EPA is also taking
direct final action to approve the removal of New York's CAIR rules
from the SIP. The rules being removed from the SIP are 6 NYCRR Part
243, ``CAIR NOX Ozone Season Trading Program,''; 6 NYCRR
Part 244, ``CAIR NOX Annual Trading Program,''; and 6 NYCRR
Part 245, ``CAIR SO2 Trading Program.'' All three of the
CAIR trading programs have been discontinued and are no longer operated
by EPA. Electricity generating units (EGUs) in New York now participate
in the CSAPR NOX Ozone Season Group 2 Trading Program, CSAPR
NOX Annual Trading Program, and CSAPR SO2 Group 1
Trading Program.
In 2005, EPA promulgated CAIR (70 FR 25162, May 12, 2005) to
address transported emissions that significantly contributed to
downwind states' nonattainment and interfered with maintenance of the
1997 ozone and PM2.5 NAAQS. CAIR required 28 states,
including New York, to revise their SIPs to reduce emissions of
NOX and SO2, precursors to the formation of
ambient ozone and PM2.5. Under CAIR, EPA provided model
state rules for separate cap-and-trade programs for annual
NOX, ozone season NOX, and annual SO2.
New York submitted, and EPA approved, a CAIR SIP revision based on the
model state rules establishing CAIR state trading programs for annual
SO2, annual NOX, and ozone season NOX
emissions, with certain non-EGUs included in the state's CAIR ozone
season NOX trading program. See 73 FR 4109 (January 24,
2008).
The United States Court of Appeals for the District of Columbia
Circuit (D.C. Circuit) initially vacated CAIR in 2008, but ultimately
remanded the rule to EPA without vacatur to preserve the environmental
benefits provided by CAIR. North Carolina v. EPA, 531 F.3d 896,
modified, 550 F.3d 1176 (2008). The ruling allowed CAIR to remain in
effect temporarily until a replacement rule consistent with the court's
opinion was developed. While EPA worked on developing a replacement
rule, the CAIR program continued as planned with the NOX
annual and ozone season programs beginning in 2009 and the
SO2 annual program beginning in 2010.
On August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's
remand, EPA promulgated CSAPR to replace CAIR in order to address the
interstate transport of emissions contributing to nonattainment and
interfering with maintenance of the two air quality standards covered
by CAIR as well as the 2006 PM2.5 NAAQS. CSAPR promulgated
FIPs requiring EGUs in affected states, including New York, to
participate in federal trading programs to reduce annual
SO2, annual NOX, and/or ozone season
NOX emissions. The rule also contained provisions that would
sunset CAIR-related obligations on a schedule coordinated with the
implementation of the CSAPR compliance requirements.
CSAPR was intended to become effective January 1, 2012; however,
the timing of CSAPR's implementation was impacted by subsequent
litigation. CSAPR implementation was stayed during the course of
litigation in the D.C. Circuit and the Supreme Court, until the D.C.
Circuit lifted the stay on October 23, 2014. EPA subsequently issued an
interim final rule on December 3, 2014 (79 FR 71663), setting the
updated effective date of CSAPR as January 1, 2015.\30\ In accordance
with the interim final rule, EPA stopped administering the CAIR state
and federal trading programs with respect to emissions occurring after
December 31, 2014, and EPA began implementing CSAPR on January 1, 2015.
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\30\ EPA solicited comment on the interim final rule and
subsequently issued a final rule affirming the amended compliance
schedule after consideration of comments received. 81 FR 13275
(March 14, 2016).
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EPA has not administered the CAIR trading programs since January 1,
2015, when the CSAPR trading programs replaced the CAIR trading
programs. The provisions in New York's SIP which were promulgated and
approved for purposes of implementing the CAIR trading programs in the
State have not been implemented since that time and cannot be
implemented now or in the future. Because the EPA no longer administers
the CAIR trading programs, and therefore New York's own CAIR trading
program regulations cannot be implemented, removing New York's CAIR
rules from the state's SIP will have no consequences for any source's
operations or emissions or for the attainment and maintenance of the
NAAQS in any area, now or in the future. Accordingly, removal of the
CAIR rules does not impact the state's continued compliance with
section CAA 110(a)(2)(D)(i)(I) for any NAAQS. Moreover, consistent with
CAA section 110(l), the EPA has determined that the removal of New
York's CAIR trading program rules will not interfere with any
applicable requirement concerning attainment and reasonable further
progress, or any other applicable requirement of the Clean Air Act.
Current emission levels in New York further demonstrate that the
CAIR trading programs are not influencing and would not influence
affected sources' operations. As shown in Table 3 below, current
emissions levels are significantly below the CAIR budgets even while
the CAIR trading programs are no longer being implemented.
[[Page 22979]]
Table 3--Comparison of New York CAIR Budgets and 2018 Emissions
[Tons]
----------------------------------------------------------------------------------------------------------------
CAIR phase I CAIR phase 2 2018
Type of emissions budget \1\ budget \1\ emissions \2\
----------------------------------------------------------------------------------------------------------------
Ozone season NOX \3\............................................ 31,091 27,652 5,790
Annual NOX...................................................... 45,617 38,014 9,706
SO2............................................................. 135,139 94,597 4,889
----------------------------------------------------------------------------------------------------------------
\1\ The CAIR budget amounts are from the EPA's proposal to approve New York's CAIR regulations into the SIP. 72
FR 55723 (Oct. 1, 2007); see also 73 FR 4109 (Jan. 24, 2008) (finalizing approval).
\2\ The 2018 emissions totals are from the EPA's Air Markets Program Database, https://ampd.epa.gov.
\3\ The ozone season NOX budgets and emissions include both EGUs and non-EGUs meeting the applicability criteria
for New York's former NOX Budget Trading Program.
EGUs in New York also remain subject to FIPs, as modified by the
abbreviated SIPs approved in this direct final action, requiring the
sources to particulate in annual NOX, annual SO2,
and ozone season NOX \31\ federal trading programs under
CSAPR and the CSAPR Update that limit emissions from such sources in
the State. EGUs also continue to be subject to part 75 monitoring
requirements under the current CSAPR trading program rules.
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\31\ The D.C. Circuit ultimately remanded New York's CSAPR Phase
2 budget for ozone season NOX, finding that the
rulemaking record did not support EPA's determination of a transport
obligation under the 1997 ozone NAAQS for New York. EME Homer City
Generation, L.P., v. EPA, 795 F.3d 118, 129-30, (2015). In response,
EPA withdrew New York's remanded budget in the CSAPR Update
rulemaking; concurrently, however, EPA promogulated a new emission
budget to address the 2008 ozone NAAQS, which replaced the
invalidated CSAPR budget intended to address the 1997 ozone NAAQS.
81 FR 74524. Thus, EGUs in New York remain subject to a CSAPR
trading program for ozone-season NOX.
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The EPA notes that New York's CAIR trading program for ozone season
NOX addressed not only the state's transport obligation
under the 1997 ozone NAAQS, but also New York's ongoing obligations
under the NOX SIP Call.\32\ Under the NOX SIP
Call the New York SIP must (1) include enforceable control measures for
ozone season NOX mass emissions from large EGUs and large
non-EGUs and (2) require those sources to monitor and report ozone
season NOX emissions, which may be in accordance with 40 CFR
part 75. See 40 CFR 51.121(f)(2) and (i).
---------------------------------------------------------------------------
\32\ The NOX SIP Call addresses states' transport
obligations under the 1979 ozone NAAQS.
---------------------------------------------------------------------------
With respect to the NOX SIP Call requirement that the
SIP include enforceable control measures to limit ozone season
NOX, New York is currently subject to the federal CSAPR
trading program for ozone season NOX that addresses these
requirements as to EGUs, but because New York's non-EGUs are not
subject to that CSAPR trading program, the state must meet this
requirement for non-EGUs through other SIP provisions. New York's SIP
has not included enforceable control measures for these non-EGUs since
2015, when EPA began implementing the CSAPR trading programs and
stopped administering the CAIR trading programs. Thus, this gap in SIP
coverage was caused by EPA's discontinuation of the CAIR trading
programs and predates the SIP submittal at issue in this action.
Removing the state's CAIR rules from the SIP at this time will not
exacerbate or otherwise affect this pre-existing lack of enforceable
control measures in the SIP, and as noted above, the removal will have
no impact on source operations or emissions.
As to the requirement for sources to monitor and report ozone
season NOX emissions under the NOX SIP Call,
removal of the state's CAIR rules from the state's SIP does not
eliminate the state's current requirements for EGUs and non-EGUs to
monitor and report their ozone season NOX emissions, as
required under the NOX SIP Call. New York's SIP still
includes the state's NOX Budget Trading Program rules, and
those rules continue to require, at 6 NYCRR Part 204, that EGUs and
non-EGUs monitor and report ozone season NOX emissions under
part 75 even though EPA is no longer administering the trading program
provisions of the state's rules. Thus, removal of the state's CAIR
rules for ozone season NOX emissions from New York's SIP
will not eliminate the provisions for monitoring that are required by
the NOX SIP Call because the SIP will still include
equivalent ozone season NOX monitoring provisions in the
state's NOX Budget Trading Program rules.
Accordingly, EPA finds that it is appropriate to approve the
rescission of New York's CAIR rules from the SIP.
B. July 23, 2015 Submittal
The July 23, 2015 New York SIP submittal included a revised version
of 6 NYCRR Part 200 (Subpart 200.1), which modified the definition of
``Air contamination source or emission source'' at Subdivision
200.1(f). The regulation was adopted on April 18, 2013, the notice of
adoption was filed on April 19, 2013 and regulation became effective on
May 19, 2013. The SIP submittal was deemed administratively complete by
operation of law on January 23, 2016. The EPA is taking direct final
action to approve the July 23, 2015 SIP submittal.
V. EPA's Action on New York's Submittals
The EPA is taking direct final action to approve the New York SIP
revision submitted on November 30, 2018 concerning allocations to New
York units of CSAPR NOX Ozone Season Group 2 allowances for
the control periods in 2021 and beyond and of CSAPR NOX
Annual allowances and CSAPR SO2 Group 1 allowances for the
control periods in 2023 and beyond. This rule approves into the New
York SIP amendments to 6 NYCRR Parts 243, 244 and 245 that incorporate
CSAPR requirements into the State rules and allows the DEC to allocate
CSAPR allowances to regulated entities in New York. The EPA is also
taking direct final action approving the attendant revisions to 6 NYCRR
Part 200 (Subpart 200.9) to update the list of referenced materials
cited in the amended New York regulations. The EPA is taking direct
final action to approve the New York SIP revision submitted on July 23,
2015, which included a revised version of 6 NYCRR Part 200 (Subpart
200.1) to address updated definitions associated with a repeal of 6
NYCRR Part 203, ``Indirect Sources of Air Contamination''.
The EPA is also taking direct final action to repeal from the SIP
previous versions of 6 NYCRR Part 243, 6 NYCRR Part 244, and 6 NYCRR
Part 245 which implemented New York's discontinued CAIR trading
program. The rules being repealed from the SIP are 6 NYCRR Part 243,
``CAIR NOX Ozone Season Trading Program,''; 6 NYCRR Part
244, ``CAIR NOX Annual Trading Program,'' ; and 6 NYCRR Part
245, ``CAIR SO2 Trading Program.''
[[Page 22980]]
Following the approval into the SIP of the revisions to 6 NYCRR
Parts 200, 243, 244, and 245, allocations of CSAPR NOX Ozone
Season Group 2 allowances, CSAPR NOX Annual allowances, and
CSAPR SO2 Group 1 allowances will be made according to the
provisions of New York's SIP instead of 40 CFR 97.411(a), 97.411(b)(1),
97.412(a), 97.611(a), 97.611(b)(1), 97.612(a), CFR 97.811(a),
97.811(b)(1), and 97.812(a). The EPA's action on this SIP revision does
not alter any provisions of the federal CSAPR NOX Ozone
Season Group 2 Trading Program, the federal CSAPR NOX Annual
Trading Program, and the federal CSAPR SO2 Group 1 Trading
Program as applied to New York units other than the allowance
allocation provisions, and the FIPs requiring the units to participate
in the programs (as modified by this SIP revision) remain in place. The
EPA's is approving Parts 200, 243, 244 and 245 because New York's rules
meet the requirements of the CAA and EPA's regulations for an
abbreviated SIP revision and will replace EPA's default allocations of
CSAPR emission allowances with state-determined allocations, as
discussed in section IV.A above.
VI. Incorporation By Reference
In this rule, the EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, EPA is finalizing the incorporation by reference of revisions to
6 NYCRR Parts 200, Subpart 200.1, entitled ``General Provisions,
Definitions,'' adopted April 18, 2013; 6 NYCRR Part 200, Subpart 200.9,
entitled ``General Provisions, Referenced Material,'' adopted on
November 11, 2018; 6 NYCRR Part 243, entitled ``CSAPR NOX
Ozone Season Group 2 Trading Program,'' adopted November 11, 2018; 6
NYCRR Part 244, entitled ``CSAPR NOX Annual Trading
Program,'' adopted November 11, 2018; and NYCRR Part 245, entitled
``CSAPR SO2 Group 1 Trading Program,'' adopted November 11,
2018. The EPA has made, and will continue to make, these materials
generally available through www.regulations.gov, and at the EPA Region
2 Office. Copies of materials incorporated may be inspected at the
Environmental Protection Agency, Region 2, Air Programs Branch, 290
Broadway, New York, New York 10007. Please contact the person
identified in the For Further Information Contact section of this
preamble for more information. Therefore, these materials have been
approved by the EPA for inclusion in the SIP, have been incorporated by
EPA into that plan, are fully federally enforceable under sections 110
and 113 of the CAA as of the effective date of the final rulemaking of
EPA's approval, and will be incorporated by reference in the next
update of the SIP compilation.\33\
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\33\ 62 FR 27968 (May 22, 1997)
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VII. Statutory and Executive Order Reviews
Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the CAA and
applicable federal regulations. 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 Clean Air Act.
Accordingly, this proposed 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);
Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866.
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 Clean Air Act; 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).
In addition, 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 and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
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 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 July 22, 2019. 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, Administrative practice and procedure,
Air pollution control, Incorporation by reference, Intergovernmental
relations, Nitrogen Dioxide, Ozone, Particulate matter, Reporting and
recordkeeping requirements, Sulfur oxides.
Authority: 42 U.S.C. 7401 et seq.
[[Page 22981]]
Dated: May 2, 2019.
Peter D. Lopez,
Regional Administrator, Region 2.
Part 52 chapter I, title 40 of the Code of Federal Regulations 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 HH--New York
0
2. In Sec. 52.1670, paragraph (c) is amended by revising the table
entries ``Title 6, Part 200, Subpart 200.1'', ``Title 6, Part 200,
Subpart 200.9'', ``Title 6, Part 243'', ``Title 6, Part 244'', and
``Title 6, Part 245'' to read as follows:
Sec. 52.1670 Identification of plan.
* * * * *
(c) * * *
EPA-Approved New York State Regulations and Laws
----------------------------------------------------------------------------------------------------------------
State EPA approval
State citation Title/subject effective date date Comments
----------------------------------------------------------------------------------------------------------------
Title 6, Part 200, Subpart 200.1. General Provisions, 05/19/2013 5/21/19 The word odor is removed
Definitions. from the Subpart
200.1(d) definition of
``air contaminant or
air pollutant.''
Redesignation of non-
attainment areas to
attainment areas
(200.1(av)) does not
relieve a source from
compliance with
previously applicable
requirements as per
letter of Nov. 13, 1981
from H. Hovey, NYSDEC.
Changes in definitions
are acceptable to EPA
unless a previously
approved definition is
necessary for
implementation of an
existing SIP
regulation.
EPA is including the
definition of
``federally
enforceable'' with the
understanding that (1)
the definition applies
to provisions of a
Title V permit that are
correctly identified as
federally enforceable,
and (2) a source
accepts operating
limits and conditions
to lower its potential
to emit to become a
minor source, not to
``avoid'' applicable
requirements.
EPA is
approving incorporation
by reference of those
documents that are not
already federally
enforceable.
EPA approval
finalized at [insert
Federal Register
citation]
* * * * * * *
Title 6, Part 200, Subpart 200.9. General Provisions, 01/02/2019 5/21/19 EPA is
Referenced approving reference
Material. documents that are not
Federally enforceable.
EPA approval
finalized at [insert
Federal Register
citation].
* * * * * * *
Title 6, Part 243................ CSAPR NOX Ozone 01/02/2019 5/21/19 EPA approval
Season Group 2 finalized at [insert
Trading Program. Federal Register
citation]
Title 6, Part 244................ CSAPR NOX Annual 01/02/2019 5/21/19 EPA approval
Trading Program. finalized at [insert
Federal Register
citation]
Title 6, Part 245................ CSAPR SO2 Group 1 01/02/2019 5/21/19 EPA approval
*................................ Trading Program. * * * finalized at [insert
*.................. Federal Register
citation]
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
[FR Doc. 2019-10479 Filed 5-20-19; 8:45 am]
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