[Federal Register Volume 84, Number 233 (Wednesday, December 4, 2019)]
[Rules and Regulations]
[Pages 66316-66319]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26102]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2019-0337; FRL-10000-20-Region 7]


Air Plan Approval; Missouri; Revisions to Cross-State Air 
Pollution Rule Annual Trading Program and Rescission of Clean Air 
Interstate Rule

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve a State Implementation Plan (SIP) revision submitted 
on January 15, 2019, and two revisions submitted on March 7, 2019, by 
the State of Missouri. The January 15, 2019, revision requests EPA 
remove from the Missouri SIP the regulations that established state 
trading programs under the Clean Air Interstate Rule (CAIR). The EPA is 
only finalizing the removal of the CAIR annual nitrogen oxides 
(NOX) and sulfur dioxide (SO2) trading program 
rules. The EPA will act on the revisions to the State's CAIR seasonal 
NOX trading program in a separate action. The March 7, 2019, 
submissions request EPA approve into the SIP Missouri's Cross-State Air 
Pollution Rule (CSAPR) state trading program rules for SO2, 
annual NOX, and ozone season NOX. This approval 
automatically terminates Missouri EGUs' requirements to participate in 
the corresponding CSAPR Federal trading programs. Like the Federal 
trading programs being replaced, the state trading programs approved in 
this SIP revision fully satisfy Missouri's good neighbor obligations 
with respect to the 1997 and 2006 fine particulate matter 
(PM2.5) national ambient air quality standards (NAAQS) and 
the 1997 ozone NAAQS and at least partially satisfy the State's good 
neighbor obligations with respect to the 2008 ozone NAAQS. This 
revision will not have an adverse effect on air quality. The EPA's 
approval of this rule revision is being done in accordance with the 
requirements of the Clean Air Act (CAA) and the regulations governing 
approval of CSAPR SIPs.

DATES: This final rule is effective on January 3, 2020.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-R07-OAR-2019-0337. All documents in the docket are 
listed on the https://www.regulations.gov website. Although listed in 
the index, some information is not publicly available, i.e., CBI 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 through https://www.regulations.gov or please contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section for additional information.

FOR FURTHER INFORMATION CONTACT: Lachala Kemp, Environmental Protection 
Agency, Region 7 Office, Air Quality Planning Branch, 11201 Renner 
Boulevard, Lenexa, Kansas 66219; telephone number (913) 551-7214; email 
address [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' and 
``our'' refer to the EPA.

Table of Contents

I. Background
II. What is being addressed in this document?
III. Have the requirements for approval of a SIP revision been met?
IV. What action is the EPA taking?
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Background

    Starting January 1, 2015, large electricity generating units (EGUs) 
in Missouri were required under a Federal Implementation Plan (FIP) to 
participate in CSAPR Federal trading programs for SO2 and 
annual NOX emissions to address Missouri's obligations under 
CAA section 110(a)(2)(D)(i)(I) (the good neighbor provision) with 
respect to the 1997 and 2006 PM2.5 NAAQS. At the same time, 
the EPA stopped administering Missouri's previous CAIR state trading 
programs for SO2 and annual NOX. See 76 FR 48208 
(August 8, 2011).
    The CSAPR regulations at 40 CFR 52.38 and 52.39 allow states to 
adopt either ``abbreviated'' CSAPR SIP revisions that modify emission 
allowance allocations but leave the

[[Page 66317]]

CSAPR FIPs in place or ``full'' CSAPR SIP revisions that contain 
complete CSAPR state trading program rules. Approval of a full CSAPR 
SIP revision (but not an abbreviated CSAPR SIP revision) results in 
automatic withdrawal of the corresponding CSAPR FIP requirements and 
satisfies the State's good neighbor obligations to the same extent as 
the FIP requirements being replaced. See, e.g., 40 CFR 52.38(b)(10)(i). 
On June 28, 2016, the EPA approved an abbreviated CSAPR SIP revision 
for Missouri adopting State-determined allocation methodologies for 
emission allowances under the CSAPR Federal SO2 and annual 
NOX trading programs but otherwise leaving the Federal 
trading programs in place. See 81 FR 41838 (June 28, 2016).
    Starting May 1, 2017, pursuant to a FIP issued under the CSAPR 
Update, large EGUs in Missouri were required to participate in a new 
CSAPR Federal trading program for ozone season NOX emissions 
to at least partially address Missouri's good neighbor obligation with 
respect to the 2008 ozone NAAQS. These FIP requirements also fully 
addressed Missouri's good neighbor obligation with respect to the 1997 
ozone NAAQS that had previously been partially addressed by the EGUs' 
participation in an earlier CSAPR Federal trading program. See 81 FR 
74504 (October 26, 2016).\1\
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    \1\ In September 2019, the U.S. Court of Appeals for the D.C. 
Circuit issued an opinion remanding the CSAPR Update to the EPA to 
address the court's holding that the rule unlawfully allows upwind 
states' significant contributions to air quality problems in 
downwind areas to continue past the downwind areas' attainment 
deadlines. Wisconsin v. EPA, 983 F.3d 303 (D.C. Cir. 2019). 
Relatedly, in October 2019, the D.C. Circuit issued a judgment 
vacating a December 2018 EPA determination that compliance with the 
CSAPR Update's emissions reduction requirements fully, rather than 
partially, satisfied good neighbor obligations with respect to the 
2008 ozone NAAQS for 20 states, including Missouri. New York v. EPA, 
No. 19-1019, 2019 WL 5394069 (D.C. Cir. October 1, 2019). However, 
neither of these court actions invalidated the EPA's conclusions in 
the CSAPR Update that compliance with the rule's emissions reduction 
requirements fully addresses Missouri's good neighbor obligations 
with respect to the 1997 ozone NAAQS and at least partially 
addresses the state's good neighbor obligations with respect to the 
2008 ozone NAAQS.
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    On July 30, 2019, the EPA proposed approval of revisions to the 
Missouri SIP in the Federal Register to remove from the SIP the State's 
CAIR trading program rules for SO2 and annual 
NOX. The EPA did not propose action on the State's request 
to also remove from the SIP the State's CAIR trading program rule for 
ozone season NOX. In the same Federal Register document, EPA 
also proposed to approve Missouri's full CSAPR SIP revision adopting 
complete CSAPR state trading program rules for SO2, annual 
NOX, and ozone season NOX to replace the CSAPR 
Federal trading program rules. See 84 FR 36859. The EPA solicited 
comments on the proposed revision to Missouri's SIP, and received no 
comments.

II. What is being addressed in this document?

    The EPA is approving a revision to Missouri's SIP by approving the 
State's request to remove 10 CSR 10-6.362 Clean Air Interstate Rule 
Annual NOX Trading Program and 10 CSR 10-6.366 Clean Air 
Interstate Rule Annual SO2 Trading Program, which 
implemented the State's CAIR annual NOX and SO2 
trading programs. The EPA is also finalizing approval of Missouri's 
revisions to 10 CSR 10-6.372 Cross-State Air Pollution Rule 
NOX Annual Trading Program and 10 CSR 10-6.376 Cross-State 
Air Pollution Rule SO2 Group 1 Trading Program that add to 
the State's previously approved allocation provisions all the other 
provisions necessary for complete state trading programs. Finally, the 
EPA is also finalizing approval of Missouri's addition of 10 CSR 10-
6.374 Cross-State Air Pollution Rule NOX Ozone Season Group 
2 Trading Program.
    A discussion of the CSAPR regulations at 40 CFR 52.38 and 52.39 
governing full and abbreviated CSAPR SIP revisions can be found in the 
EPA's June 28, 2016 approval of Missouri's previous abbreviated CSAPR 
SIP revision for SO2 and annual NOX. See 81 FR 
41838. A detailed discussion of Missouri's current SIP revision was 
provided in the EPA's July 30, 2019, proposed rule. See 84 FR 36859.

III. Have the requirements for approval of a SIP revision been met?

    The State's SIP revision meets the requirements for approval of 
full CSAPR SIPs under 40 CFR 52.38 and 52.39. Missouri's CSAPR state 
trading program rules incorporate by reference the corresponding 
provisions of the CSAPR Federal trading program rules at 40 CFR part 
97, subparts AAAAA, CCCCC, and EEEEE, with two exceptions. First, the 
State has retained the allocation provisions for SO2 and 
annual NOX allowances from the State's previous abbreviated 
CSAPR SIP instead of adopting the default Federal allocation provisions 
for those allowances. Second, consistent with the CSAPR SIP approval 
criteria, the State's rules do not incorporate the Federal rule 
provisions governing allocation of allowances to new units in Indian 
country. Missouri's CSAPR state trading program rules are complete, and 
the State has not adopted any other substantive changes to the CSAPR 
Federal trading program regulations.
    The State submission has met the public notice requirements for SIP 
submissions in accordance with 40 CFR 51.102. The submission also 
satisfied the completeness criteria of 40 CFR part 51, appendix V. The 
State provided public notice on the March 7, 2019, SIP revisions from 
August 24, 2018 to October 4, 2018 and received seven comments from the 
EPA during the Regulatory Impact Review. The EPA's comments are in the 
docket for this action. Missouri amended the rule in response to the 
comments and the EPA did not comment further. In addition, as explained 
above, the revision meets the substantive SIP requirements of the CAA, 
including section 110 and implementing regulations.

IV. What action is the EPA taking?

    We are taking final action to approve the removal of 10 CSR 10-
6.362 Clean Air Interstate Rule Annual NOX Trading Program 
and 10 CSR 10-6.366 Clean Air Interstate Rule Annual SO2 
Trading Program from the SIP. The EPA is also taking final action to 
approve into the SIP the revisions to 10 CSR 10-6.372 CSAPR 
NOX Annual Trading Program and 10 CSR 10-6.376 CSAPR 
SO2 Group 1 Trading Program and the addition of 10 CSR 10-
6.374 CSAPR NOX Ozone Season Group 2 Trading Program. As a 
result of this approval, the FIP requirements for Missouri EGUs to 
participate in the corresponding CSAPR Federal trading programs are 
automatically terminated. Approval of this SIP revision fully satisfies 
Missouri's good neighbor obligations with respect to the 1997 and 2006 
PM2.5 NAAQS and the 1997 ozone NAAQS and at least partially 
satisfies Missouri's good neighbor obligations with respect to the 2008 
ozone NAAQS.

V. Incorporation by Reference

    In this document, the EPA is finalizing regulatory text that 
includes incorporation by reference. In accordance with requirements of 
1 CFR 51.5, the EPA is finalizing the incorporation by reference of the 
Missouri Regulations described in the amendments to 40 CFR part 52 set 
forth below. The EPA has made, and will continue to make, these 
materials generally available through www.regulations.gov and at the 
EPA Region 7 Office (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

[[Page 66318]]

the State Implementation Plan, have been incorporated by reference 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 
the EPA's approval, and will be incorporated by reference in the next 
update to the SIP compilation.\2\
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    \2\ 62 FR 27968 (May 22, 1997).
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    Also, in this document, as described in the amendments to 40 CFR 
part 52 set forth below, the EPA is removing provisions of the EPA-
Approved Missouri Regulations and Statutes from the Missouri State 
Implementation Plan, which is incorporated by reference in accordance 
with the requirements of 1 CFR part 51.

VI. 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. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, the 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);
     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 the National Technology 
Transfer and Advancement Act (NTTA) because this rulemaking does not 
involve technical standards; 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 the 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 CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by February 3, 2020. 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: November 26, 2019.
James Gulliford,
Regional Administrator, Region 7.

    For the reasons stated in the preamble, the EPA amends 40 CFR part 
52 as set forth below:

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 A--General Provisions


Sec.  52.38   [Amended]

0
2. Section 52.38 is amended by:
0
a. In paragraph (a)(8)(iii), adding the word ``Missouri,'' after the 
word ``Indiana,''; and
0
b. In paragraph (b)(13)(iv), removing the words ``Alabama and Indiana'' 
and adding in its place the words ``Alabama, Indiana, and Missouri''.


Sec.  52.39   [Amended]

0
3. Section 52.39 is amended in paragraph (l)(3) by removing the word 
``Indiana'' and adding in its place the words ``Indiana and Missouri''.

Subpart AA--Missouri

0
4. In Sec.  52.1320, the table in paragraph (c) is amended by:
0
a. Removing entries ``10-6.362'' and ``10-6.366'';
0
b. Revising the entry ``10-6.372'';
0
c. Adding entry ``10-6.374'' in numerical order; and
0
d. Revising the entry ``10-6.376''.
    The revisions and addition read as follows:


Sec.  52.1320  Identification of plan.

* * * * *
    (c) * * *

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                                        EPA-Approved Missouri Regulations
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                                                      State
   Missouri  citation             Title             effective      EPA approval date           Explanation
                                                      date
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                                    Missouri Department of Natural Resources
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                                                  * * * * * * *
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    Chapter 6--Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control
                                      Regulations for the State of Missouri
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                                                  * * * * * * *
10-6.372................  Cross-State Air             3/30/2019  12/4/2019, [insert
                           Pollution Rule NOX                     Federal Register
                           Annual Trading                         citation].
                           Program.
10-6.374................  Cross-State Air             3/30/2019  12/4/2019, [insert
                           Pollution Rule NOX                     Federal Register
                           Ozone Season Group 2                   citation].
                           Trading Program.
10-6.376................  Cross-State Air             3/30/2019  12/4/2019, [insert
                           Pollution Rule SO2                     Federal Register
                           Group 1 Trading                        citation].
                           Program.
 
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[FR Doc. 2019-26102 Filed 12-3-19; 8:45 am]
 BILLING CODE 6560-50-P