[Federal Register Volume 88, Number 145 (Monday, July 31, 2023)]
[Rules and Regulations]
[Pages 49295-49309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14180]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 97

[EPA-HQ-OAR-2021-0668; FRL-8670.2-03-OAR]


Federal ``Good Neighbor Plan'' for the 2015 Ozone National 
Ambient Air Quality Standards; Response to Judicial Stays of SIP 
Disapproval Action for Certain States

AGENCY: Environmental Protection Agency (EPA).

ACTION: Interim final rule; request for comment.

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SUMMARY: The Environmental Protection Agency (EPA) is taking interim 
final action to stay, for emissions sources in Arkansas, Kentucky, 
Louisiana, Mississippi, Missouri, and Texas only, the effectiveness of 
the federal implementation plan (FIP) requirements established to 
address the obligations of these and other states to mitigate 
interstate air pollution with respect to the 2015 national ambient air 
quality standards (NAAQS) for ozone (the Good Neighbor Plan). The EPA 
is also revising certain other regulations to ensure that sources in 
these states will continue to be subject to previously established 
requirements to mitigate interstate air pollution with respect to other 
ozone NAAQS while the Good Neighbor Plan's requirements are stayed. 
These revisions will also ensure that the stay is limited to 
requirements for which the EPA does not currently have authority to 
implement a FIP pending judicial review. The stay and the associated 
revisions to other regulations are being issued in response to judicial 
orders that partially stay, pending judicial review, a separate, 
earlier EPA action which disapproved certain state implementation plan 
(SIP) revisions submitted by these and other states. Finally, for 
states for which the Good Neighbor Plan's requirements are not being 
stayed, the EPA is revising three near-term deadlines that are 
incorrect as published in the Good Neighbor Plan.

DATES: This interim final rule is effective on August 4, 2023. Comments 
on this rule must be received on or before August 30, 2023.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2021-0668, by any of the following methods:
     Federal eRulemaking portal: https://www.regulations.gov 
(our preferred method). Follow the online instructions for submitting 
comments.
     Mail: U.S. Environmental Protection Agency, EPA Docket 
Center, Air and Radiation Docket, Mail Code 28221T, 1200 Pennsylvania 
Avenue NW, Washington, DC 20460.
     Hand delivery or courier: EPA Docket Center, WJC West 
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. 
The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m., 
Monday-Friday (except federal holidays).
    Comments received may be posted without change to https://www.regulations.gov, including any personal information provided. For 
detailed instructions on sending comments, see the ``Public 
Participation'' heading of the SUPPLEMENTARY INFORMATION section of 
this document.

FOR FURTHER INFORMATION CONTACT: David Lifland, Clean Air Markets 
Division, Office of Atmospheric Protection, Office of Air and 
Radiation, U.S. Environmental Protection Agency, Mail Code 6204A, 1200 
Pennsylvania Avenue NW, Washington, DC 20460; telephone: 202-343-9151; 
email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. General

A. Public Participation

    Submit your written comments, identified by Docket ID No. EPA-HQ-
OAR-2021-0668, at https://www.regulations.gov (our preferred method), 
or by the other methods identified in the ADDRESSES section. Once 
submitted, comments cannot be edited or removed from the docket. The 
EPA may publish any comment received to its public docket. Do not 
submit to the EPA's docket at https://www.regulations.gov any 
information you consider to be Confidential Business Information (CBI), 
Proprietary Business Information (PBI), 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). 
Please visit https://www.epa.gov/dockets/commenting-epa-dockets for 
additional submission methods; the full EPA public comment policy; 
information about CBI, PBI, or multimedia submissions; and general 
guidance on making effective comments.

B. Potentially Affected Entities

    This action revises on an interim basis the Good Neighbor Plan, 
which applies to electricity generating units (EGUs) and non-EGU 
industrial sources. This action also revises other allowance trading 
program regulations that apply to EGUs but not to non-EGU industrial 
sources. The affected emissions sources are generally in the following 
industry groups:

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                                                         North American
                                                            Industry
                    Industry group                       Classification
                                                         System (NAICS)
                                                              code
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Fossil Fuel Electric Power Generation................             221112
Pipeline Transportation of Natural Gas...............               4862
Cement and Concrete Product Manufacturing............               3273
Iron and Steel Mills and Ferroalloy Manufacturing....               3311
Glass and Glass Product Manufacturing................               3272
Basic Chemical Manufacturing.........................               3251
Petroleum and Coal Products Manufacturing............               3241
Pulp, Paper, and Paperboard Mills....................               3221
Metal Ore Mining.....................................               2122
Solid Waste Combustors and Incinerators..............             562213
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    The Good Neighbor Plan applies to emissions sources in Alabama, 
Arkansas, California, Illinois, Indiana, Kentucky, Louisiana, Maryland, 
Michigan, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New 
York, Ohio, Oklahoma, Pennsylvania, Texas, Utah, Virginia, West 
Virginia, and Wisconsin. The portions of this action staying the Good 
Neighbor Plan's requirements and revising other allowance trading 
program regulations apply to sources in Arkansas, Kentucky, Louisiana, 
Mississippi, Missouri, and Texas. The portions of this action revising 
certain near-term deadlines under the Good Neighbor Plan apply to 
emissions sources in the other listed states, for which the Good 
Neighbor Plan's requirements are not being stayed.
    The information provided in this section on potentially affected 
entities is not intended to be exhaustive. If you have questions 
regarding the applicability of this action to a

[[Page 49296]]

particular entity, consult the person listed in the FOR FURTHER 
INFORMATION CONTACT section.

C. Statutory Authority

    Statutory authority to issue the amendments finalized in this 
action is provided by the same Clean Air Act (CAA) provisions that 
provided authority to issue the regulations being amended: CAA section 
110(a) and (c), 42 U.S.C. 7410(a) and (c) (SIP and FIP requirements, 
including requirements for mitigation of interstate air pollution), and 
CAA section 301, 42 U.S.C. 7601 (general rulemaking authority). 
Statutory authority for the rulemaking procedures followed in this 
action is provided by Administrative Procedure Act (APA) section 553, 5 
U.S.C. 553.

II. Regulatory Revisions

A. Response to Stay Orders

1. Background and Summary
    CAA section 110(a)(2)(D)(i)(I), also known as the ``good neighbor'' 
provision, requires each state's SIP to include provisions sufficient 
to ``prohibit[ ], consistent with the provisions of this subchapter, 
any source or other type of emissions activity within the State from 
emitting any air pollutant in amounts which will--(I) contribute 
significantly to nonattainment in, or interfere with maintenance by, 
any other State with respect to any [NAAQS].'' The EPA often refers to 
the emissions reduction requirements under this provision as ``good 
neighbor obligations'' and submissions addressing these requirements as 
``good neighbor SIPs.''
    CAA section 110(c)(1) requires the EPA Administrator to promulgate 
a FIP at any time within two years after the Administrator: (i) finds 
that a state has failed to make a required SIP submission; (ii) finds a 
SIP submission to be incomplete pursuant to CAA section 110(k)(1)(C); 
or (iii) disapproves a SIP submission. This obligation applies unless 
the state corrects the deficiency through a SIP revision that the 
Administrator approves before the FIP is promulgated.
    On February 13, 2023, the EPA published a final action fully or 
partially disapproving good neighbor SIPs submitted by 21 states with 
respect to the 2015 ozone NAAQS (the SIP Disapproval action).\1\ 
Consistent with the requirements of CAA section 110(c)(1), following 
the SIP Disapproval action, on March 15, 2023, the EPA Administrator 
signed a separate final action promulgating a FIP, which is referred to 
here as the ``Good Neighbor Plan'' or the ``Rule.'' \2\ The Good 
Neighbor Plan requires EGUs and non-EGU industrial sources in the 21 
states whose good neighbor SIPs the EPA had disapproved in the SIP 
Disapproval action (as well as two other states for which the EPA had 
previously made findings of failure to submit good neighbor SIPs) to 
reduce their emissions of nitrogen oxides (NOX) during the 
May-September ``ozone season'' to address the states' good neighbor 
obligations with respect to the 2015 ozone NAAQS.\3\ The Good Neighbor 
Plan was published in the Federal Register on June 5, 2023, and its 
requirements will be phased in over several years starting on the 
Rule's August 4, 2023, effective date.
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    \1\ Air Plan Disapprovals; Interstate Transport of Air Pollution 
for the 2015 8-Hour Ozone National Ambient Air Quality Standards, 88 
FR 9336 (February 13, 2023).
    \2\ Federal ``Good Neighbor Plan'' for the 2015 Ozone National 
Ambient Air Quality Standards, 88 FR 36654 (June 5, 2023).
    \3\ See generally id. The Good Neighbor Plan's requirements for 
EGUs apply in 22 of the 23 covered states, while the requirements 
for non-EGU industrial sources apply in 20 of the 23 covered states.
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    To implement the required emissions reductions from EGUs, the Good 
Neighbor Plan uses an emissions allowance trading program. The EPA has 
previously established three successive allowance trading programs for 
EGUs' seasonal NOX emissions to address states' good 
neighbor obligations with respect to the 1997 and 2008 ozone NAAQS--
referred to here as the CSAPR NOX Ozone Season ``Group 1,'' 
``Group 2,'' and ``Group 3'' trading programs--in the Cross-State Air 
Pollution Rule (CSAPR),\4\ the CSAPR Update,\5\ and the Revised CSAPR 
Update,\6\ respectively. The Good Neighbor Plan does not establish a 
new emissions trading program, but instead modifies the Group 3 trading 
program initially established in the Revised CSAPR Update and expands 
the program to apply to EGUs in the additional states included in the 
Good Neighbor Plan.
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    \4\ Federal Implementation Plans: Interstate Transport of Fine 
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR 
48208 (August 8, 2011). CSAPR addressed states' good neighbor 
obligations with respect to the 1997 ozone NAAQS, as well as the 
1997 and 2006 NAAQS for fine particulate matter.
    \5\ Cross-State Air Pollution Rule Update for the 2008 Ozone 
NAAQS, 81 FR 74504 (October 26, 2016). The CSAPR Update addressed 
states' good neighbor obligations with respect to the 2008 ozone 
NAAQS.
    \6\ Revised Cross-State Air Pollution Rule Update for the 2008 
Ozone NAAQS, 86 FR 23054 (April 30, 2021). The Revised CSAPR Update 
readdressed states' good neighbor obligations with respect to the 
2008 ozone NAAQS in response to the remand of the CSAPR Update in 
Wisconsin v. EPA, 938 F.3d 303 (D.C. Cir. 2019).
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    In each of the successive rulemakings to address good neighbor 
obligations with respect to an ozone NAAQS, the EPA has coordinated 
compliance requirements by allowing the participation of a state's EGUs 
in the most recent seasonal NOX trading program to also 
satisfy any requirements to participate in a previous seasonal 
NOX trading program established to address the state's good 
neighbor obligations with respect to a less protective NAAQS.\7\ 
Because of the EPA's coordination efforts, for 19 of the states covered 
by the Good Neighbor Plan as signed, including Arkansas, Kentucky, 
Louisiana, Mississippi, Missouri, and Texas, participation of the 
state's EGUs in the Group 3 trading program not only serves as the 
mechanism for partially addressing the states' good neighbor 
obligations with respect to the 2015 ozone NAAQS, but also serves as 
the mechanism for addressing the states' good neighbor obligations with 
respect to the 2008 ozone NAAQS.\8\ For eight of the states, including 
Arkansas, Kentucky, Louisiana, Mississippi, and Missouri, participation 
of the states' EGUs in the Group 3 trading program serves as the 
mechanism for addressing the states' good neighbor obligations with 
respect to the 1997 ozone NAAQS as well.\9\
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    \7\ See, e.g., 81 FR 74509; 86 FR 23122.
    \8\ See 88 FR 36844.
    \9\ See id.
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    Petitioners challenging the SIP Disapproval action have filed 
motions in several courts for partial stays of that action with respect 
to the SIPs submitted by particular states. Subsequent to the Good 
Neighbor Plan's signature date, courts have granted some of these 
motions. On May 1 and June 8, 2023, the U.S. Court of Appeals for the 
Fifth Circuit issued orders staying the SIP Disapproval action with 
respect to Louisiana, Mississippi, and Texas pending judicial review on 
the merits.\10\ On May 25 and 26, 2023, the U.S. Court of Appeals for 
the Eighth Circuit issued orders staying the SIP Disapproval action 
with respect to Arkansas and Missouri pending judicial review on the 
merits.\11\ On May 31, 2023, the U.S. Court of Appeals for the Sixth 
Circuit issued an order administratively staying the SIP Disapproval 
action with respect

[[Page 49297]]

to Kentucky pending review of Kentucky's stay motion.\12\
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    \10\ Order, Texas v. EPA, No. 23-60069 (5th Cir. May 1, 2023); 
Order, Texas v. EPA, No. 23-60069 (5th Cir. June 8, 2023). The 
orders are available in the docket.
    \11\ Order, Arkansas v. EPA, No. 23-1320 (8th Cir. May 25, 
2023); Order, Missouri v. EPA, No. 23-1719 (8th Cir. May 26, 2023); 
Order, Union Electric Co. v. EPA, No. 23-1751 (8th Cir. May 26, 
2023). The orders are available in the docket.
    \12\ Order, Kentucky v. EPA, No. 23-3216 (6th Cir. May 31, 
2023), available in the docket.
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    The EPA's authority under CAA section 110(c)(1) to establish the 
Good Neighbor Plan's FIP requirements for the sources in a given state 
is triggered by either the EPA's disapproval of the state's good 
neighbor SIP with respect to the 2015 ozone NAAQS or the EPA's finding 
of the state's failure to submit such a SIP. Accordingly, as a result 
of the orders partially staying the SIP Disapproval action, the EPA 
must act to ensure that the Good Neighbor Plan's requirements that were 
issued to address good neighbor obligations with respect to the 2015 
ozone NAAQS and that apply to either EGUs or non-EGU industrial sources 
in each of the states for which a stay order has been issued will not 
take effect while the stay of the SIP Disapproval action as to that 
state remains in place. To ensure full compliance with the stay orders, 
the EPA is also staying these requirements for sources in Indian 
country located within the borders of a state covered by a stay order, 
including areas of Indian country not subject to the state's SIP 
authority.\13\ However, as noted earlier in this section, the Group 3 
trading program is also the mechanism to implement requirements 
previously established for EGUs in most of the covered states to 
address the states' good neighbor obligations with respect to the 2008 
ozone NAAQS and, in some cases, the 1997 ozone NAAQS. The SIP 
Disapproval action was not a basis for the authority relied on by the 
EPA in the previous rulemakings to establish emissions reduction 
requirements with respect to the 2008 or 1997 ozone NAAQS, and the stay 
orders do not affect these pre-existing requirements. The EPA's 
authority for the rulemakings addressing the 2008 and 1997 ozone NAAQS 
remains in place. Implementing the stay orders therefore requires the 
EPA not only to stay the new requirements established for EGUs and non-
EGU industrial sources in the Good Neighbor Plan to address their 
states' good neighbor obligations with respect to the 2015 ozone NAAQS, 
but also to preserve status quo requirements established in previous 
rulemakings to address their states' good neighbor obligations with 
respect to the 2008 and 1997 ozone NAAQS.
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    \13\ For sources in areas of Indian country not subject to the 
SIP authority of the states within whose borders the areas of Indian 
country are located, the EPA issued the Good Neighbor Plan's 
requirements not under authority of CAA section 110(c)(1) but under 
authority of CAA section 301(d)(4). See 88 FR 36690-92. However, 
because the EPA exercised its authority under CAA section 301(d)(4) 
only with respect to areas of Indian country within the borders of 
states for which requirements were being issued under CAA section 
110(c)(1), id. at 36692, these areas of Indian country are 
indirectly implicated by the orders partially staying the SIP 
Disapproval action for the respective states.
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    Thus, the EPA in this action is revising the Good Neighbor Plan FIP 
requirements and the regulations for the Group 2 trading program to 
require the EGUs in each state covered by a stay order for the SIP 
Disapproval action to participate in the Group 2 trading program 
instead of the Group 3 trading program while the stay for that state 
remains in place. A small number of conforming revisions are also being 
made to the regulations for the Group 1 and Group 3 trading programs. 
Together, the revisions preserve the status quo by making the trading 
program requirements that will apply to the EGUs in each state for 
which the SIP Disapproval action has been stayed substantively 
identical to the trading program requirements that would have applied 
to the EGUs in that state if the state had not been covered by the Good 
Neighbor Plan. The revisions to the trading program regulations are 
summarized in the remainder of this section and are discussed in detail 
in section II.A.2 of this document.\14\
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    \14\ The EPA has included documents in the docket that show all 
the regulatory revisions being adopted in this action in redline-
strikeout format.
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    First, for EGUs in Arkansas, Mississippi, Missouri, and Texas, 
which before the Good Neighbor Plan were covered by the Group 2 trading 
program as promulgated in the CSAPR Update rather than the Group 3 
trading program, the revisions in this action restore the state 
emissions budgets, unit-level allowance allocation provisions, and 
banked allowance holdings that would have been in effect for the EGUs 
in these states under the Group 2 trading program in the absence of the 
Good Neighbor Plan.
    Second, for EGUs in Kentucky and Louisiana, which before the Good 
Neighbor Plan were already covered by the Group 3 trading program as 
promulgated in the Revised CSAPR Update, the revisions in this action 
modify the Group 2 and Group 3 trading program regulations so as to 
establish under the Group 2 trading program the state emissions 
budgets, unit-level allowance allocation provisions, and banked 
allowance holdings that would have been in effect for the EGUs in these 
states under the Group 3 trading program in the absence of the Good 
Neighbor Plan.
    Finally, for EGUs in all states that will now be covered by the 
Group 2 trading program, the revisions in this action establish two 
non-interchangeable subtypes of Group 2 allowances: CSAPR 
NOX Ozone Season Original Group 2 allowances and CSAPR 
NOX Ozone Season Expanded Group 2 allowances.\15\ EGUs in 
Arkansas, Mississippi, Missouri, and Texas, which would have been 
covered by the Group 2 trading program in the absence of the Good 
Neighbor Plan, will use Original Group 2 allowances for compliance (as 
will EGUs in Iowa, Kansas, and Tennessee, which are not covered by the 
Good Neighbor Plan and remain in the Group 2 trading program). EGUs in 
Kentucky and Louisiana, which would have been covered by the Group 3 
trading program in the absence of the Good Neighbor Plan, will use 
Expanded Group 2 allowances for compliance. The requirements to use 
different subtypes of Group 2 allowances will preserve the status quo 
distinction between these two sets of EGUs that already existed before 
the Good Neighbor Plan and that continues to exist with the stay of the 
Good Neighbor Plan as to these states, because the allowances that EGUs 
in Kentucky and Louisiana have used for compliance under the Group 3 
trading program as promulgated in the Revised CSAPR Update are not 
interchangeable with the allowances that EGUs in the other states have 
used for compliance under the Group 2 trading program.
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    \15\ The non-interchangeability will be automatically enforced 
through the use of different codes for the two subtypes of Group 2 
allowances in the EPA's Allowance Management System, where all 
allowance allocations, transfers, and deductions under the Group 2 
trading program are recorded.
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    The amendments to the regulatory requirements for EGUs and non-EGU 
industrial sources that the EPA is finalizing in this action in 
response to the stay orders are being made on an interim basis and will 
remain in place while the judicial proceedings in which the stay orders 
were issued remain pending. After the courts have reached final 
determinations on the merits in those proceedings, the EPA will take 
further action consistent with the final determinations. At the time of 
this rulemaking, the EPA cannot predict how the Agency's future action 
may affect the amendments being finalized in this action.
2. Specific Regulatory Revisions
    The regulatory revisions to 40 CFR part 52 that are being adopted 
in this action to implement the orders staying the SIP Disapproval 
action for non-EGU industrial sources in Arkansas, Kentucky, Louisiana, 
Mississippi, Missouri, and Texas and Indian country

[[Page 49298]]

within the borders of those states include the addition of text at 
Sec.  52.40(c)(4) to stay the effectiveness of the Good Neighbor Plan's 
requirements for non-EGU industrial sources at Sec. Sec.  52.41 through 
52.46 and the remainder of Sec.  52.40 for states covered by stay 
orders and the addition of parallel text in the state-specific subparts 
of part 52 for each of the states.\16\
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    \16\ See Sec. Sec.  52.184(b)(2) (Arkansas), 52.940(c)(2) 
(Kentucky), 52.984(e)(2) (Louisiana), 52.1284(b)(2) (Mississippi), 
52.1326(c)(2) (Missouri), and 52.2283(e)(2) (Texas).
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    The regulatory revisions to 40 CFR parts 52 and 97 that are being 
adopted in this action to implement the orders staying the SIP 
Disapproval action for EGUs in Arkansas, Kentucky, Louisiana, 
Mississippi, Missouri, and Texas and Indian country within the borders 
of those states while ensuring continued implementation of requirements 
established to address good neighbor obligations under rules 
promulgated before the Good Neighbor Plan include the following:
     The addition of text at Sec.  52.38(b)(2)(iii)(D) to stay 
the effectiveness of the Good Neighbor Plan's requirements at Sec.  
52.38(b)(2)(iii)(A) and (B) for EGUs to participate in the enhanced 
Group 3 trading program for control periods after 2022 for states 
covered by stay orders, the addition of text at Sec.  
52.38(b)(2)(ii)(D) to require those EGUs to participate in the Group 2 
trading program while that stay remains in place, and the addition of 
parallel text in the state-specific subparts of part 52 for each of the 
states.\17\
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    \17\ See Sec. Sec.  52.184(a)(6) (Arkansas), 52.940(b)(6) 
(Kentucky), 52.984(d)(6) (Louisiana), 52.1284(a)(6) (Mississippi), 
52.1326(b)(6) (Missouri), and 52.2283(d)(6) (Texas).
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     The revision of text at Sec.  52.38(b)(16)(ii)(B) to 
provide for continued administration by the EPA after 2022, for states 
covered by stay orders, of state Group 2 trading programs integrated 
with the federal Group 2 trading program under approved SIP 
revisions.\18\
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    \18\ This revision ensures that Missouri's good neighbor 
obligations with respect to the 2008 and 1997 NAAQS can continue to 
be met through the participation of the state's EGUs in the state 
Group 2 trading program adopted by the state and included in the SIP 
revision that was approved by the EPA at 84 FR 66316 (December 4, 
2019).
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     The revision and addition of text at Sec.  97.802 to 
define ``Original'' and ``Expanded'' subtypes of CSAPR NOX 
Ozone Season Group 2 allowances, with conforming revisions and 
additions at Sec. Sec.  97.502, 97.1002, 97.811(d) and (e), 97.821(e), 
97.526(d) and (e), 97.826(d) through (f), and 52.38(b)(14).
     The revision of text at Sec. Sec.  97.806(c), 97.824(a) 
and (d), and 97.825(a) to provide for EGUs in states covered by stay 
orders and covered by the Group 3 trading program before 2023 to use 
Expanded Group 2 allowances for compliance and for EGUs in other states 
covered by the Group 2 trading program to use Original Group 2 
allowances for compliance, with conforming revisions at Sec.  
52.38(b)(14).
     The revision of text at Sec.  97.810(a) and (b) to provide 
EGUs in states covered by stay orders the same amounts for state 
emissions budgets, new unit set-asides, Indian country new unit set-
asides, and variability limits that would have applied under the Group 
2 trading program or the Group 3 trading program, as applicable for the 
state, in the absence of the Good Neighbor Plan.
     The revision of text at Sec.  97.811(a)(2) and Sec.  
97.821(e) to provide EGUs in states covered by stay orders the same 
unit-level allocation and recordation provisions that would have 
applied under the Group 2 trading program or the Group 3 trading 
program, as applicable for the state, in the absence of the Good 
Neighbor Plan.\19\
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    \19\ For sources in states that were not covered by the Group 3 
trading program before the Good Neighbor Plan, the applicable notice 
of data availability (NODA) referenced in revised Sec.  
97.811(a)(2)(i) as identifying the unit-level allocations of 
Original Group 2 allowances to existing units will be the NODA 
published at 81 FR 67190 (September 30, 2016) to implement the CSAPR 
Update. For sources in states that were covered by the Group 3 
trading program before the Good Neighbor Plan, the applicable NODA 
referenced in revised Sec.  97.811(a)(2)(ii) as identifying the 
unit-level allocations of Expanded Group 2 allowances to existing 
units will be the NODA published at 86 FR 26719 (May 17, 2021) to 
implement the Revised CSAPR Update.
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     The revision of text at Sec. Sec.  97.830(b)(1) and 
97.834(d)(2)(i) to provide EGUs in states that were covered by the 
Group 3 trading program before 2023 the same deadlines for commencement 
of monitoring and reporting activities that would have applied in the 
absence of the Good Neighbor Plan.
     The addition of text at Sec.  97.1026(e) to provide for 
the conversion of banked 2021-2022 Group 3 allowances held by EGUs in 
states that that were covered by the Group 3 trading program before 
2023 into Expanded Group 2 allowances, with conforming revisions at 
Sec. Sec.  97.502, 97.802, 97.1002, 97.824(c), and 52.38(b)(14).
     The revision of text at Sec. Sec.  97.811(e)(1) and 
97.826(e)(1) to exclude EGUs in states covered by stay orders from the 
Good Neighbor Plan's provisions converting banked 2017-2022 Original 
Group 2 allowances into Group 3 allowances and recalling previously 
allocated 2023-2024 Original Group 2 allowances.
     The revision of text at Sec. Sec.  97.816(c), 97.818(f), 
and 97.820(c)(1)(iv), (c)(2)(iv), and (c)(5)(vi) to include the 
transition of states from the Group 3 trading program to the Group 2 
trading program in the provisions that allow the EPA to treat certain 
certifications, applications, and notices of delegation as valid 
despite the use of terminology intended for use under a different 
trading program.
     The revision of text at Sec. Sec.  97.526(e) and 97.826(f) 
and the addition of text at Sec.  97.1026(f) to include the transition 
of states from the Group 3 trading program to the Group 2 trading 
program in the provisions that specify when and how an EGU in a state 
that has moved between trading programs may use allowances from a later 
trading program to meet surrender requirements for past control periods 
under a previous trading program, with conforming revisions at Sec.  
52.38(b)(14).
     The revision of text at Sec.  97.526(d)(2)(ii) and 
97.826(d)(3) to include the conversion of Group 3 allowances to 
Expanded Group 2 allowances in the provisions that address future 
conversions of allowances that were allocated for past control periods 
under a given trading program to an EGU in a state no longer covered by 
that trading program, where the allowances would have been included in 
a previous conversion to a different type of allowances if the 
allocations had been recorded before the previous conversion took 
place.

B. Deadline Corrections

    In addition to the regulatory revisions described in section II.A 
of this document that are being made on an interim basis in response to 
judicial stay orders, in this action the EPA is also permanently 
revising three near-term deadlines that are incorrect in the Good 
Neighbor Plan as published in the Federal Register. Unlike the 
revisions described in section II.A of this document, these revisions 
apply to emissions sources in the states whose coverage under the Good 
Neighbor Plan is not affected by a stay order.
    The first deadline correction concerns a quarterly reporting 
deadline applicable to EGUs in states that were already covered by the 
Group 2 trading program or the Group 3 trading program before the 2023 
ozone season. As explained in the Good Neighbor Plan preamble, these 
EGUs will participate in the revised Group 3 trading program for the 
entire 2023 ozone season, subject to transitional provisions ensuring 
that the only substantive new regulatory

[[Page 49299]]

requirements in 2023--specifically, the emissions control stringencies 
reflected in the revised Group 3 trading program's state emissions 
budgets and assurance levels--will take effect only after the Rule's 
effective date.\20\ The Group 3 trading program's deadline for EGUs to 
submit quarterly reports of emissions and operating data for the first 
two months of the May-September ozone season in 2023 would normally 
have been July 31, 2023 (the first business day at least 30 days after 
the end of the second calendar quarter), but the timing of publication 
in the Federal Register caused the Good Neighbor Plan's effective date 
to fall four days after this date, on August 4, 2023. Accordingly, the 
EPA is extending the deadline in 40 CFR 97.1034(d)(3) by which EGUs 
subject to the Group 3 trading program must submit quarterly reports 
for this calendar quarter to August 4, 2023.\21\ Further, because the 
quarterly reports required under the Group 3 trading program are 
consolidated with the quarterly reports required under several other 
EPA programs, the EPA is also amending 40 CFR 97.1034(d)(4) to 
similarly extend these EGUs' reporting deadlines under the other 
programs.
---------------------------------------------------------------------------

    \20\ See 88 FR 36775-76; 88 FR 36811-13.
    \21\ All the EGUs that are required under the Good Neighbor Plan 
to submit quarterly reports for the second calendar quarter of 2023 
already participate in either the Group 2 trading program or the 
Group 3 trading program and therefore have already installed and 
certified the necessary monitoring systems. The data elements of the 
quarterly reports that these EGUs are required to submit under the 
Group 3 trading program for their ozone season emissions in 2023 are 
identical to the data elements of the quarterly reports that the 
EGUs were required to submit under the Group 2 trading program or 
Group 3 trading program for their ozone season emissions in 2022 and 
previous years.
---------------------------------------------------------------------------

    The second deadline correction concerns a quarterly reporting 
deadline applicable to EGUs in states that were not already covered by 
the Group 2 trading program or the Group 3 trading program before the 
2023 ozone season. EGUs in these states will begin to participate in 
the Group 3 trading program as of the Good Neighbor Plan's effective 
date, and the regulations as published in the Rule correctly provide 
that most of these EGUs will be subject to the program's monitoring and 
reporting requirements for emissions occurring on and after August 4, 
2023.\22\ However, a separate regulatory provision incorrectly 
identifies the ending date of the first calendar quarter for which 
these EGUs must submit quarterly reports under the Group 3 trading 
program as June 30, 2023. The EPA is amending 40 CFR 
97.1034(d)(2)(i)(C) to indicate the correct quarterly ending date of 
September 30, 2023. The deadline for EGUs to submit quarterly reports 
for this calendar quarter will be October 30, 2023.
---------------------------------------------------------------------------

    \22\ See 40 CFR 97.1030(b)(1)(iii). Most EGUs covered under the 
Good Neighbor Plan that do not already participate in the Group 2 
trading program or the Group 3 trading program are already subject 
to closely related monitoring and reporting requirements under other 
EPA programs and consequently have already installed and certified 
the monitoring systems necessary to monitor and report under the 
Group 3 trading program. For the small number of EGUs in these 
states that have not already been required to install and certify 
the necessary monitoring systems under another EPA program, the 
deadline to begin monitoring and reporting under the Group 3 trading 
program will be either January 31, 2024 (180 days after the Rule's 
effective date), for units that report on a year-round basis, or May 
1, 2024, for units that report on an ozone season-only basis. See 40 
CFR 97.1030(b)(1)(iv) and (b)(3).
---------------------------------------------------------------------------

    The third deadline correction concerns a deadline for submission of 
initial notifications applicable to furnaces in the Glass and Glass 
Product Manufacturing industry that are subject to requirements under 
the Good Neighbor Plan. Because of a typographical error in the 
document submitted for publication in the Federal Register,the Rule as 
published incorrectly specifies a submission deadline of June 23, 2023 
(the first business day at least 18 days after the Rule's publication 
date). The EPA is amending 40 CFR 52.44(j)(2) to specify the intended 
submission deadline of December 4, 2023 (the first business day at 
least 180 days after the Rule's publication date).

III. Rulemaking Procedures and Findings of Good Cause

    As noted in section I.C of this document, the EPA's authority for 
the rulemaking procedures followed in this action is provided by APA 
section 553.\23\ In general, an agency issuing a rule under the 
procedures in APA section 553 must provide prior notice and an 
opportunity for public comment, but APA section 553(b)(B) includes an 
exemption from notice-and-comment requirements ``when the agency for 
good cause finds (and incorporates the finding and a brief statement of 
reasons therefor in the rule issued) that notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' This action is being issued as an interim final rule 
without prior notice or opportunity for public comment because the EPA 
finds that the APA ``good cause'' exemption from notice-and-comment 
requirements applies here.
---------------------------------------------------------------------------

    \23\ Under CAA section 307(d)(1)(B), the EPA's revision of a FIP 
under CAA section 110(c) would normally be subject to the rulemaking 
procedural requirements of CAA section 307(d), including notice-and-
comment procedures, but CAA section 307(d) does not apply ``in the 
case of any rule or circumstance referred to in subparagraphs (A) or 
(B) of [APA section 553(b)].'' CAA section 307(d)(1).
---------------------------------------------------------------------------

    The EPA finds good cause to forgo notice-and-comment procedures 
because such procedures are both impracticable and unnecessary for this 
action. First, following notice-and-comment procedures is impracticable 
for the portions of this action responding to the stay orders because 
such procedures would require more time than is available. The earliest 
stay order to which the EPA must respond in this action was issued on 
May 1, 2023, just over three months before the Good Neighbor Plan's 
upcoming effective date on August 4, 2023, which is the date by which 
this action responding to the stay order must be effective. The most 
recent of the subsequent stay orders to which the EPA's action must 
also respond was issued less than two months before the Rule's upcoming 
effective date. The EPA does not consider even the maximum three-month 
period sufficient time in which to conduct a notice-and-comment 
rulemaking encompassing the time to, at a minimum, evaluate possible 
actions for responding to the stay orders, prepare and publish a 
proposal describing the action identified through that evaluation, wait 
for comments on the proposal, review the comments received, and prepare 
and publish a final rule and response to comments. It is not possible 
for all of these steps to be completed within a three-month period for 
this action.
    Second, following notice-and-comment procedures is unnecessary for 
this action. With respect to the portions of this action that respond 
to the stay orders, the EPA has no discretion as to the regulatory 
revisions that stay the effectiveness of the Good Neighbor Plan's 
requirements for sources in the states covered by stay orders. While 
some superficial discretion exists concerning the specific design of 
the regulatory revisions that provide an alternate mechanism for EGUs 
in states covered by the stay orders to continue to address the states' 
good neighbor obligations with respect to the 2008 and 1997 NAAQS, no 
discretion exists as to the function of that design, which is to 
maintain the status quo by implementing requirements that are 
substantively identical to the pre-existing requirements that would 
have continued to apply in the absence of the Good Neighbor Plan. The 
EPA's design for the regulatory revisions in this action accomplishes 
this function. Taking comment on the portions of the action that 
respond to the stay orders so as to allow the public to advocate for 
not staying the Good Neighbor Plan's requirements, not adopting 
regulatory

[[Page 49300]]

revisions needed to implement requirements that are substantively 
identical to the requirements that would have applied in the absence of 
the Good Neighbor Plan, or adopting superficially different regulatory 
revisions to accomplish the same function would serve no purpose and is 
therefore unnecessary.\24\
---------------------------------------------------------------------------

    \24\ To illustrate, the EPA could in theory preserve the status 
quo for EGUs in Kentucky and Louisiana by promulgating an entire set 
of trading program regulations under 40 CFR part 97 replicating the 
entire set of Group 3 trading program regulations as promulgated in 
the Revised CSAPR Update without the subsequent revisions 
promulgated in the Good Neighbor Plan to address states' good 
neighbor obligations with respect to the 2015 ozone NAAQS. However, 
the outcome would be substantively identical to the approach the EPA 
is taking here.
---------------------------------------------------------------------------

    With respect to the portions of this action that correct deadlines, 
each of the deadlines that is incorrect as published in the Good 
Neighbor Plan precedes the Rule's actual effective date and therefore 
could not be implemented as published. In the cases of the two 
deadlines that were incorrect as published because of the timing of the 
Rule's publication, the amended deadlines of August 4, 2023, and 
September 30, 2023, are the earliest possible revised deadlines that 
are both feasible in light of the Good Neighbor Plan's actual effective 
date and also consistent with the normal timing and sequence of 
monitoring and reporting activities under the Group 3 trading program 
regulations. In the case of the deadline that was incorrect as 
published because of a typographical error, the amended deadline of 
December 4, 2023, is the same deadline that has already been published 
in parallel provisions of the Good Neighbor Plan's regulations for 
other non-EGU industrial sources.\25\ Because both the need for the 
corrections and the specific corrections that should be made are clear, 
taking comment to allow the public to advocate for not correcting the 
deadlines or for making different corrections would serve no purpose 
and is therefore unnecessary.
---------------------------------------------------------------------------

    \25\ See 40 CFR 52.42(g)(2); 40 CFR 52.43(h)(2).
---------------------------------------------------------------------------

    The regulatory revisions made in this action will take effect on 
August 4, 2023, the effective date of the Good Neighbor Plan. In 
general, an agency issuing a rule under APA section 553 must provide 
for a period of at least 30 days between the rule's dates of 
publication and effectiveness, but APA section 553(d) includes several 
exceptions. Under APA section 553(d)(1), an exception applies to a rule 
that ``grants or recognizes an exemption or relieves a restriction.'' 
Because the portions of this action that stay the effectiveness of the 
Good Neighbor Plan's requirements for the sources in certain states 
grant an exemption (on an interim basis while the stay remains in 
place), the normal 30-day minimum period between this action's dates of 
publication and effectiveness is not required. The EPA is making these 
portions of the action effective as of the Good Neighbor Plan's 
effective date to comply with the stay orders.
    Under APA section 553(d)(3), the normal 30-day minimum period 
between a rule's dates of publication and effectiveness does not apply 
``as otherwise provided by the agency for good cause found and 
published with the rule.'' With respect to the portions of this action 
that provide an alternate mechanism for EGUs in states covered by the 
stay orders to continue to address the states' good neighbor 
obligations under rules issued before the Good Neighbor Plan and the 
portions of this action that correct certain deadlines, the EPA finds 
good cause to make the regulatory revisions effective on August 4, 
2023, the effective date of the Good Neighbor Plan, even though that 
date is less than 30 days after the publication date of this action, 
for the following reasons. First, the regulatory revisions that 
facilitate continued implementation of requirements addressing good 
neighbor obligations under previous rules benefit the public by 
avoiding the possibility that interruption of the requirements would 
cause air quality degradation. Second, both these regulatory revisions 
and the regulatory revisions that correct deadlines benefit the 
regulated community by clarifying the regulatory requirements that 
apply in light of the stay orders and the timing of publication of the 
Good Neighbor Plan. Finally, making the regulatory revisions effective 
less than 30 days after this action's publication date does not violate 
the purpose of the normal requirement for a 30-day minimum period, 
which is ``to give affected parties a reasonable time to adjust their 
behavior before the final rule takes effect.'' \26\ The regulatory 
revisions in this action facilitating continued implementation of 
previously applicable requirements impose no requirements on any source 
that differ substantively from the requirements that would have applied 
to that source in the absence of the Good Neighbor Plan, and the 
deadline corrections in this action extend the deadlines in the Rule as 
published. Thus, no affected party needs time to adjust its behavior in 
preparation for these regulatory revisions.
---------------------------------------------------------------------------

    \26\ Omnipoint Corp. v. FCC, 78 F.3d 620, 630 (D.C. Cir. 1996).
---------------------------------------------------------------------------

IV. Request for Comment

    As explained in section III of this document, the EPA finds good 
cause to take this interim final action without prior notice or 
opportunity for public comment. However, the EPA is providing an 
opportunity for comment on the content of the amendments. The EPA 
requests comment on this rule. The EPA is not reopening for comment any 
provisions of the Good Neighbor Plan, 40 CFR part 52, or 40 CFR part 97 
other than the specific provisions that are expressly added or amended 
in this rule.

V. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review, as Amended by 
Executive Order 14094: Modernizing Regulatory Review

    This action is not a significant regulatory action as defined in 
Executive Order 12866, as amended by Executive Order 14094, and was 
therefore not subject to a requirement for Executive Order 12866 
review.

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et seq. The 
Office of Management and Budget (OMB) has previously approved the 
information collection activities that will apply to the EGUs affected 
by this action and has assigned OMB control numbers 2060-0258 and 2060-
0667. Additional information collection activities that will apply to 
EGUs and non-EGU industrial sources under the Good Neighbor Plan have 
been submitted to OMB for approval in conjunction with that rulemaking. 
This action makes no changes to the information collection activities 
under the previously approved information collection requests (ICRs) or 
the additional information collection activities for which approval has 
been requested in the Good Neighbor Plan's ICRs.

C. Regulatory Flexibility Act (RFA)

    This action is not subject to the Regulatory Flexibility Act (RFA), 
5.U.S.C. 601-612. The RFA applies only to rules subject to notice-and-
comment rulemaking requirements under the Administrative Procedure Act 
(APA), 5 U.S.C. 553, or any other statute. This rule is not subject to 
notice-and-comment requirements because the

[[Page 49301]]

Agency has invoked the APA ``good cause'' exemption under 5 U.S.C. 
553(b).

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
the Unfunded Mandates Reform Act (UMRA), 2 U.S.C. 1531-1538, and does 
not significantly or uniquely affect small governments. This action 
imposes no enforceable duty on any state, local, or tribal governments 
or the private sector. This action simply stays the effectiveness of 
certain regulatory requirements for certain sources on an interim basis 
in response to procedural court orders while ensuring that previously 
applicable regulatory requirements remain in effect.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. This action simply stays the effectiveness of 
certain regulatory requirements for certain sources on an interim basis 
in response to procedural court orders while ensuring that previously 
applicable regulatory requirements remain in effect. Thus, Executive 
Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action responds to court 
orders issued by the U.S. Courts of Appeals for the Fifth, Sixth, and 
Eighth Circuits and the EPA lacks discretion to deviate from those 
orders. The EPA's assessment of health and safety risks for the action 
establishing the requirements that are being stayed is discussed in 
Chapter 5 of the regulatory impact analysis for the Good Neighbor 
Plan.\27\
---------------------------------------------------------------------------

    \27\ See Regulatory Impact Analysis for the Final Federal Good 
Neighbor Plan Addressing Regional Ozone Transport for the 2015 Ozone 
National Ambient Air Quality Standard (March 2023) at 197-257, 
available in the docket.
---------------------------------------------------------------------------

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629, February 16, 1994) directs 
federal agencies, to the greatest extent practicable and permitted by 
law, to make environmental justice part of their mission by identifying 
and addressing, as appropriate, disproportionately high and adverse 
human health or environmental effects of their programs, policies, and 
activities on minority populations (people of color and/or Indigenous 
peoples) and low-income populations.
    This action responds to court orders issued by the U.S. Courts of 
Appeals for the Fifth, Sixth, and Eighth Circuits and the EPA lacks 
discretion to deviate from those orders. The EPA's assessment of 
environmental justice considerations for the action establishing the 
requirements that are being stayed is discussed in section VII of the 
Good Neighbor Plan preamble.\28\
---------------------------------------------------------------------------

    \28\ See 88 FR 36844-46.
---------------------------------------------------------------------------

K. Congressional Review Act (CRA)

    This action is subject to the Congressional Review Act (CRA), 5 
U.S.C. 801-808, and the EPA will submit a rule report to each House of 
the Congress and to the Comptroller General of the United States. The 
CRA allows the issuing agency to make a rule effective sooner than 
otherwise provided by the CRA if the agency makes a good cause finding 
that notice and comment rulemaking procedures are impracticable, 
unnecessary, or contrary to the public interest (5 U.S.C. 808(2)). The 
EPA has made a good cause finding for this rule as discussed in section 
III of this document, including the basis for that finding.

L. Judicial Review

    CAA section 307(b)(1) governs judicial review of final actions by 
the EPA. This section provides, in part, that petitions for review must 
be filed in the U.S. Court of Appeals for the District of Columbia 
Circuit (D.C. Circuit): (i) when the agency action consists of 
``nationally applicable regulations promulgated, or final actions 
taken, by the Administrator,'' or (ii) when such action is locally or 
regionally applicable, but ``such action is based on a determination of 
nationwide scope or effect and if in taking such action the 
Administrator finds and publishes that such action is based on such a 
determination.'' For locally or regionally applicable final actions, 
the CAA reserves to the EPA complete discretion to decide whether to 
invoke the exception in (ii).\29\
---------------------------------------------------------------------------

    \29\ Sierra Club v. EPA, 47 F.4th 738, 745 (D.C. Cir. 2022) 
(``EPA's decision whether to make and publish a finding of 
nationwide scope or effect is committed to the agency's discretion 
and thus is unreviewable''); Texas v. EPA, 983 F.3d 826, 834-35 (5th 
Cir. 2020).
---------------------------------------------------------------------------

    This rulemaking is ``nationally applicable'' within the meaning of 
CAA section 307(b)(1). In this action, in response to court orders, the 
EPA is amending on an interim basis the Good Neighbor Plan,\30\ which 
the EPA developed by applying a uniform legal interpretation and 
common, nationwide analytical methods to address the requirements of 
CAA section 110(a)(2)(D)(i)(I) concerning interstate transport of 
pollution (i.e., ``good neighbor'' requirements) for the 2015 ozone 
NAAQS. Based on that nationwide analysis, the Good Neighbor Plan 
established FIP requirements for sources in 23 states located across 
eight EPA Regions and ten federal judicial circuits. Given that this 
action amends an action implementing the good neighbor requirements of 
CAA section 110(a)(2)(D)(i)(I) in a large number of states located 
across the country and given the interdependent nature of interstate 
pollution transport and the common core of knowledge and analysis 
involved in promulgating the FIP requirements, this is a ``nationally 
applicable'' action within the meaning of CAA section 307(b)(1).
---------------------------------------------------------------------------

    \30\ The Good Neighbor Plan is nationally applicable or based on 
a determination of nationwide scope or effect found and published by 
the EPA. See 88 FR 36859-60.
---------------------------------------------------------------------------

    In the alternative, to the extent a court finds this action to be 
locally or regionally applicable, the Administrator is exercising the 
complete discretion afforded to him under the CAA to make and publish a 
finding that this action is based on a determination of

[[Page 49302]]

``nationwide scope or effect'' within the meaning of CAA section 
307(b)(1). In this action, in response to court orders, the EPA is 
amending on an interim basis the Good Neighbor Plan, an action in which 
the EPA interpreted and applied section 110(a)(2)(D)(i)(I) of the CAA 
for the 2015 ozone NAAQS based on a common core of nationwide policy 
judgments and technical analysis concerning the interstate transport of 
pollutants throughout the continental United States. Based on that 
nationwide analysis, the Good Neighbor Plan established FIP 
requirements for sources in 23 states located across eight EPA Regions 
and ten federal judicial circuits. This action adjusts temporarily the 
scope and operation of the Good Neighbor Plan for six states in 
response to court orders, and also implements necessary measures to 
ensure the status quo is maintained with respect to existing 
obligations under previously issued regulations (that were themselves 
nationally applicable or based on a determination of nationwide scope 
or effect found and published by the EPA \31\). This action also 
adjusts certain deadlines for all states that remain covered by the 
Good Neighbor Plan.
---------------------------------------------------------------------------

    \31\ See 86 FR 23163-64; 81 FR 74585-86.
---------------------------------------------------------------------------

    The Administrator finds that, like the Good Neighbor Plan which it 
amends, this action is a matter on which national uniformity in 
judicial resolution of any petitions for review is desirable, to take 
advantage of the D.C. Circuit's administrative law expertise, and to 
facilitate the orderly development of the basic law under the Act. The 
Administrator also finds that consolidated review of this action in the 
D.C. Circuit will avoid piecemeal litigation in the regional circuits, 
further judicial economy, and eliminate the risk of inconsistent 
results for different states, and that a nationally consistent approach 
to the CAA's mandate concerning interstate transport of ozone pollution 
constitutes the best use of Agency resources.
    For these reasons, this final action is nationally applicable or, 
alternatively, the Administrator is exercising the complete discretion 
afforded to him by the CAA and finds that this final action is based on 
a determination of nationwide scope or effect for purposes of CAA 
section 307(b)(1) and is publishing that finding in the Federal 
Register. Under CAA section 307(b)(1), petitions for judicial review of 
this action must be filed in the D.C. Circuit by September 29, 2023.

List of Subjects

40 CFR Part 52

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Incorporation by reference, Intergovernmental 
relations, Nitrogen oxides, Ozone, Particulate matter, Sulfur dioxide.

40 CFR Part 97

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Electric power plants, Nitrogen oxides, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
dioxide.

Michael S. Regan,
Administrator.

    For the reasons stated in the preamble, parts 52 and 97 of title 40 
of the Code of Federal Regulations are 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 A--General Provisions

0
2. Amend Sec.  52.38 by:
0
a. Adding paragraphs (b)(2)(ii)(D) and (b)(2)(iii)(D);
0
b. In paragraph (b)(11)(iii)(D), removing ``and'' after the semicolon;
0
c. In paragraph (b)(14)(i)(F), removing ``and'' after the semicolon;
0
d. Revising paragraph (b)(14)(i)(G);
0
e. Adding paragraph (b)(14)(i)(H);
0
f. Revising paragraphs (b)(14)(iii) introductory text and 
(b)(14)(iii)(B);
0
g. In paragraph (b)(14)(iii)(C), adding ``Original'' before ``Group 2 
allowances'' each time it appears; and
0
h. In paragraph (b)(16)(ii)(B), adding ``and not listed in paragraph 
(b)(2)(ii)(D)(2) of this section'' before ``and any control period''.
    The additions and revisions read as follows:


Sec.  52.38  What are the requirements of the Federal Implementation 
Plans (FIPs) for the Cross-State Air Pollution Rule (CSAPR) relating to 
emissions of nitrogen oxides?

* * * * *
    (b) * * *
    (2) * * *
    (ii) * * *
    (D) Notwithstanding any other provision of this part:
    (1) While a stay under paragraph (b)(2)(iii)(D)(1) of this section 
is in effect for the sources in a State and Indian country located 
within the borders of such State with regard to emissions occurring in 
a control period in a given year--
    (i) The provisions of subpart EEEEE of part 97 of this chapter (as 
modified in any approval of a SIP revision for such State by the 
Administrator under paragraph (b)(8) of this section) or the provisions 
of a SIP revision approved for such State by the Administrator under 
paragraph (b)(9) of this section, if any, shall apply to the sources in 
such State and areas of Indian country within the borders of such State 
subject to the State's SIP authority, and the provisions of subpart 
EEEEE of part 97 of this chapter shall apply to the sources in areas of 
Indian country within the borders of such State not subject to the 
State's SIP authority, with regard to emissions occurring in such 
control period; and
    (ii) Such State shall be deemed to be listed in this paragraph 
(b)(2)(ii)(D)(1) for purposes of this part and part 97 of this chapter.
    (2) While a stay under paragraph (b)(2)(iii)(D)(2) of this section 
is in effect for the sources in a State and Indian country located 
within the borders of such State with regard to emissions occurring in 
a control period in a given year--
    (i) The provisions of subpart EEEEE of part 97 of this chapter (as 
modified in any approval of a SIP revision for such State by the 
Administrator under paragraph (b)(8) of this section) or the provisions 
of a SIP revision approved for such State by the Administrator under 
paragraph (b)(9) of this section, if any, shall apply to the sources in 
such State and areas of Indian country within the borders of such State 
subject to the State's SIP authority, and the provisions of subpart 
EEEEE of part 97 of this chapter shall apply to the sources in areas of 
Indian country within the borders of such State not subject to the 
State's SIP authority, with regard to emissions occurring in such 
control period; and
    (ii) Such State shall be deemed to be listed in this paragraph 
(b)(2)(ii)(D)(2) for purposes of this part and part 97 of this chapter.
    (iii) * * *
    (D) Notwithstanding any other provision of this part:
    (1) The effectiveness of paragraph (b)(2)(iii)(A) of this section 
is stayed for sources in Kentucky and Louisiana and Indian country 
located within the borders of such States with regard to emissions 
occurring in 2023 and thereafter. While a stay under this paragraph 
(b)(2)(iii)(D)(1) is in effect for a State, such State shall be deemed 
not

[[Page 49303]]

to be listed in paragraph (b)(2)(iii)(A) of this section for purposes 
of part 97 of this chapter for a control period after 2022.
    (2) The effectiveness of paragraph (b)(2)(iii)(B) of this section 
is stayed for sources in Arkansas, Mississippi, Missouri, and Texas and 
Indian country located within the borders of such States with regard to 
emissions occurring in 2023 and thereafter. While a stay under this 
paragraph (b)(2)(iii)(D)(2) is in effect for a State, such State shall 
be deemed not to be listed in paragraph (b)(2)(iii)(B) of this section 
for purposes of part 97 of this chapter.
* * * * *
    (14) * * *
    (i) * * *
    (G) The provisions in Sec.  97.526(e) of this chapter or Sec.  
97.826(f) of this chapter (concerning the use of CSAPR NOX 
Ozone Season Original Group 2 allowances, CSAPR NOX Ozone 
Season Expanded Group 2 allowances, or CSAPR NOX Ozone 
Season Group 3 allowances to satisfy requirements to hold CSAPR 
NOX Ozone Season Group 1 allowances or the use of CSAPR 
NOX Ozone Season Expanded Group 2 allowances or CSAPR 
NOX Ozone Season Group 3 allowances to satisfy requirements 
to hold CSAPR NOX Ozone Season Original Group 2 allowances); 
and
    (H) The provisions in Sec. Sec.  97.806(c), 97.824(a) and (d), and 
97.825(a) of this chapter (concerning the situations for which 
compliance requirements are defined in terms of either CSAPR 
NOX Ozone Season Original Group 2 allowances or CSAPR 
NOX Ozone Season Expanded Group 2 allowances).
* * * * *
    (iii) Notwithstanding any discontinuation pursuant to paragraphs 
(b)(2)(i)(B), (b)(2)(ii)(B) or (C), (b)(2)(iii)(D)(1), or (b)(13)(i) of 
this section of the applicability of subpart BBBBB, EEEEE, or GGGGG of 
part 97 of this chapter to the sources in a State and areas of Indian 
country within the borders of the State subject to the State's SIP 
authority with regard to emissions occurring in any control period, the 
following provisions shall continue to apply with regard to all CSAPR 
NOX Ozone Season Group 1 allowances, CSAPR NOX 
Ozone Season Group 2 allowances, and CSAPR NOX Ozone Season 
Group 3 allowances at any time allocated for any control period to any 
source or other entity in the State and areas of Indian country within 
the borders of the State subject to the State's SIP authority and shall 
apply to all entities, wherever located, that at any time held or hold 
such allowances:
* * * * *
    (B) The provisions of Sec. Sec.  97.526(d), 97.826(d) and (e), and 
97.1026(e) of this chapter (concerning the conversion of unused CSAPR 
NOX Ozone Season Group 1 allowances allocated for specified 
control periods to different amounts of CSAPR NOX Ozone 
Season Original Group 2 allowances or CSAPR NOX Ozone Season 
Group 3 allowances, the conversion of unused CSAPR NOX Ozone 
Season Original Group 2 allowances allocated for specified control 
periods to different amounts of CSAPR NOX Ozone Season Group 
3 allowances, and the conversion of unused CSAPR NOX Ozone 
Season Group 3 allowances allocated for specified control periods to 
CSAPR NOX Ozone Season Expanded Group 2 allowances); and
* * * * *

0
3. Amend Sec.  52.40 by adding paragraph (c)(4) to read as follows:


Sec.  52.40  What are the requirements of the Federal Implementation 
Plans (FIPs) relating to ozone season emissions of nitrogen oxides from 
sources not subject to the CSAPR ozone season trading program?

* * * * *
    (c) * * *
    (4) Notwithstanding any other provision of this part, the 
effectiveness of paragraphs (a) and (b), (c)(1) through (3), and (d) 
through (g) of this section and Sec. Sec.  52.41, 52.42, 52.43, 52.44, 
52.45, and 52.46 is stayed for sources located in Arkansas, Kentucky, 
Louisiana, Mississippi, Missouri, and Texas, including Indian country 
located within the borders of such States.
* * * * *


Sec.  52.44  [Amended]

0
4. Amend Sec.  52.44(j)(2) by removing ``June 23, 2023'' and adding in 
its place ``December 4, 2023''.

Subpart E--Arkansas

0
5. Amend Sec.  52.184 by:
0
a. Adding paragraph (a)(6); and
0
b. Redesignating paragraph (b) as paragraph (b)(1) and adding paragraph 
(b)(2).
    The additions read as follows:


Sec.  52.184  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    (a) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (a)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (a)(2) of this 
section shall apply with regard to such emissions.
    (b) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (b)(1) of this section is stayed.

Subpart S--Kentucky

0
6. Amend Sec.  52.940 by:
0
a. Adding paragraph (b)(6); and
0
b. Redesignating paragraph (c) as paragraph (c)(1) and adding paragraph 
(c)(2).
    The additions read as follows:


Sec.  52.940  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (b) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (b)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (b)(2) of this 
section shall apply with regard to such emissions.
    (c) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (c)(1) of this section is stayed.

Subpart T--Louisiana

0
7. Amend Sec.  52.984 by:
0
a. Adding paragraph (d)(6); and
0
b. Redesignating paragraph (e) as paragraph (e)(1) and adding paragraph 
(e)(2).
    The additions read as follows:


Sec.  52.984  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (d) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (d)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (d)(2) of this 
section shall apply with regard to such emissions.
    (e) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (e)(1) of this section is stayed.

[[Page 49304]]

Subpart Z--Mississippi

0
8. Amend Sec.  52.1284 by:
0
a. Adding paragraph (a)(6); and
0
b. Redesignating paragraph (b) as paragraph (b)(1) and adding paragraph 
(b)(2).
    The additions read as follows:


Sec.  52.1284  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

    (a) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (a)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (a)(2) of this 
section shall apply with regard to such emissions.
    (b) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (b)(1) of this section is stayed.

Subpart AA--Missouri

0
9. Amend Sec.  52.1326 by:
0
a. Adding paragraph (b)(6); and
0
b. Redesignating paragraph (c) as paragraph (c)(1) and adding paragraph 
(c)(2).
    The additions read as follows:


Sec.  52.1326  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (b) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (b)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (b)(2) of this 
section shall apply with regard to such emissions.
    (c) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (c)(1) of this section is stayed.

Subpart SS--Texas

0
10. Amend Sec.  52.2283 by:
0
a. Adding paragraph (d)(6); and
0
b. Redesignating paragraph (e) as paragraph (e)(1) and adding paragraph 
(e)(2).
    The additions read as follows:


Sec.  52.2283  Interstate pollutant transport provisions; What are the 
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (d) * * *
    (6) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (d)(3) of this section is stayed with regard 
to emissions occurring in 2023 and thereafter, provided that while such 
stay remains in effect, the provisions of paragraph (d)(2) of this 
section shall apply with regard to such emissions.
    (e) * * *
    (2) Notwithstanding any other provision of this part, the 
effectiveness of paragraph (e)(1) of this section is stayed.

PART 97--FEDERAL NOX BUDGET TRADING PROGRAM, CAIR NOX AND SO2 
TRADING PROGRAMS, CSAPR NOX AND SO2 TRADING PROGRAMS, AND TEXAS SO2 
TRADING PROGRAM

0
11. The authority citation for part 97 continues to read as follows:

    Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7491, 7601, and 
7651, et seq.

Subpart BBBBB--CSAPR NOX Ozone Season Group 1 Trading Program

0
12. Amend Sec.  97.502 by:
0
a. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Expanded Group 2 allowance'';
0
b. Revising the definition of ``CSAPR NOX Ozone Season Group 
2 allowance''; and
0
c. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Original Group 2 allowance''.
    The revision and additions read as follows:


Sec.  97.502  Definitions.

* * * * *
    CSAPR NOX Ozone Season Expanded Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance allocated for a control 
period after 2022 under subpart EEEEE of this part, Sec.  97.526(d), or 
Sec.  97.1026(e) to a unit in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State) or allocated or auctioned for a control period 
after 2022 in accordance with the provisions of a SIP revision approved 
for such a State by the Administrator under Sec.  52.38(b)(7), (8), or 
(9) of this chapter.
* * * * *
    CSAPR NOX Ozone Season Group 2 allowance means a limited 
authorization issued and allocated or auctioned by the Administrator 
under subpart EEEEE of this part, Sec.  97.526(d), or Sec.  97.1026(e), 
or by a State or permitting authority under a SIP revision approved by 
the Administrator under Sec.  52.38(b)(7), (8), or (9) of this chapter, 
to emit one ton of NOX during a control period of the 
specified calendar year for which the authorization is allocated or 
auctioned or of any calendar year thereafter under the CSAPR 
NOX Ozone Season Group 2 Trading Program, where each CSAPR 
NOX Ozone Season Group 2 allowance is either a CSAPR 
NOX Ozone Season Original Group 2 allowance or a CSAPR 
NOX Ozone Season Expanded Group 2 allowance.
* * * * *
    CSAPR NOX Ozone Season Original Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance other than a CSAPR 
NOX Ozone Season Expanded Group 2 allowance.
* * * * *

0
13. Amend Sec.  97.526 by:
0
a. In paragraphs (d)(1)(iii) and (iv) and (d)(2)(i), adding 
``Original'' before ``Group 2 allowances'' each time it appears;
0
b. Redesignating paragraph (d)(2)(ii) as paragraph (d)(2)(ii)(A);
0
c. In newly redesignated paragraph (d)(2)(ii)(A), removing ``After the 
Administrator'' and adding in its place ``Except as provided in 
paragraph (d)(2)(ii)(B) of this section, after the Administrator'';
0
d. Adding paragraph (d)(2)(ii)(B);
0
e. Revising paragraph (e) introductory text;
0
f. In paragraph (e)(1), adding ``Original'' before ``Group 2 
allowances'';
0
g. Redesignating paragraph (e)(2) as paragraph (e)(2)(i);
0
h. In newly redesignated paragraph (e)(2)(i), removing ``After the 
Administrator'' and adding in its place ``Except as provided in 
paragraph (e)(2)(ii) of this section, after the Administrator''; and
0
i. Adding paragraph (e)(2)(ii).
    The additions and revision read as follows:


Sec.  97.526  Banking and conversion.

* * * * *
    (d) * * *
    (2) * * *
    (ii) * * *
    (B) After the Administrator has carried out the procedures set 
forth in paragraph (d)(1) of this section and Sec. Sec.  97.826(d)(1) 
and 97.1026(e), upon any determination that would otherwise result in 
the initial recordation of a given number of CSAPR NOX Ozone 
Season Group 1 allowances in the

[[Page 49305]]

compliance account for a source in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State), the Administrator will not record such CSAPR 
NOX Ozone Season Group 1 allowances but instead will 
allocate and record in such account an amount of CSAPR NOX 
Ozone Season Expanded Group 2 allowances for the control period in 2023 
computed as the quotient, rounded up to the nearest allowance, of such 
given number of CSAPR NOX Ozone Season Group 1 allowances 
divided by the conversion factor determined under paragraph (d)(1)(ii) 
of this section and further divided by the conversion factor determined 
under Sec.  97.826(d)(1)(i)(D).
* * * * *
    (e) Notwithstanding any other provision of this subpart or any SIP 
revision approved under Sec.  52.38(b)(4) or (5) of this chapter, CSAPR 
NOX Ozone Season Original Group 2 allowances, CSAPR 
NOX Ozone Season Expanded Group 2 allowances, or CSAPR 
NOX Ozone Season Group 3 allowances may be used to satisfy 
requirements to hold CSAPR NOX Ozone Season Group 1 
allowances under this subpart as follows, provided that nothing in this 
paragraph (e) alters the time as of which any such allowance holding 
requirement must be met or limits any consequence of a failure to 
timely meet any such allowance holding requirement:
* * * * *
    (2) * * *
    (ii) After the Administrator has carried out the procedures set 
forth in paragraph (d)(1) of this section and Sec. Sec.  97.826(d)(1) 
and 97.1026(e), the owner or operator of a CSAPR NOX Ozone 
Season Group 1 source in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) 
of this chapter (and Indian country within the borders of such a State) 
may satisfy a requirement to hold a given number of CSAPR 
NOX Ozone Season Group 1 allowances for the control period 
in 2015 or 2016 by holding instead, in a general account established 
for this sole purpose, an amount of CSAPR NOX Ozone Season 
Expanded Group 2 allowances for the control period in 2021 (or any 
later control period for which the allowance transfer deadline defined 
in Sec.  97.802 has passed) computed as the quotient, rounded up to the 
nearest allowance, of such given number of CSAPR NOX Ozone 
Season Group 1 allowances divided by the conversion factor determined 
under paragraph (d)(1)(ii) of this section and further divided by the 
conversion factor determined under Sec.  97.826(d)(1)(i)(D).
* * * * *

Subpart EEEEE--CSAPR NOX Ozone Season Group 2 Trading Program

0
14. Amend Sec.  97.802 by:
0
a. In the definition of ``Allocate or allocation'', removing ``Sec.  
97.526(d), and'' and adding in its place ``Sec. Sec.  97.526(d), 
97.826(d), and 97.1026(e), and'';
0
b. In the definition of ``Common designated representative's assurance 
level'', paragraph (2), removing ``Sec.  97.526(d)'' and adding in its 
place ``Sec.  97.526(d), Sec.  97.826(d), or Sec.  97.1026(e)'';
0
c. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Expanded Group 2 allowance'';
0
d. Revising the definition of ``CSAPR NOX Ozone Season Group 
2 allowance''; and
0
e. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Original Group 2 allowance''.
    The additions and revision read as follows:


Sec.  97.802  Definitions.

* * * * *
    CSAPR NOX Ozone Season Expanded Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance allocated for a control 
period after 2022 under this subpart, Sec.  97.526(d), or Sec.  
97.1026(e) to a unit in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) 
of this chapter (and Indian country within the borders of such a State) 
or allocated or auctioned for a control period after 2022 in accordance 
with the provisions of a SIP revision approved for such a State by the 
Administrator under Sec.  52.38(b)(7), (8), or (9) of this chapter.
* * * * *
    CSAPR NOX Ozone Season Group 2 allowance means a limited 
authorization issued and allocated or auctioned by the Administrator 
under this subpart, Sec.  97.526(d), or Sec.  97.1026(e), or by a State 
or permitting authority under a SIP revision approved by the 
Administrator under Sec.  52.38(b)(7), (8), or (9) of this chapter, to 
emit one ton of NOX during a control period of the specified 
calendar year for which the authorization is allocated or auctioned or 
of any calendar year thereafter under the CSAPR NOX Ozone 
Season Group 2 Trading Program, where each CSAPR NOX Ozone 
Season Group 2 allowance is either a CSAPR NOX Ozone Season 
Original Group 2 allowance or a CSAPR NOX Ozone Season 
Expanded Group 2 allowance.
* * * * *
    CSAPR NOX Ozone Season Original Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance other than a CSAPR 
NOX Ozone Season Expanded Group 2 allowance.
* * * * *

0
15. Amend Sec.  97.806 by:
0
a. In paragraph (c)(1)(i), adding ``for such source'' after ``available 
for deduction'';
0
b. In paragraph (c)(2)(i) introductory text, adding ``for such group'' 
after ``available for deduction'';
0
c. In paragraph (c)(4), amend the paragraph heading by adding ``and 
type'' after ``Vintage''; and
0
d. Adding paragraphs (c)(4)(iii) and (iv).
    The additions read as follows:


Sec.  97.806  Standard requirements.

* * * * *
    (c) * * *
    (4) * * *
    (iii) Except as provided in paragraph (c)(4)(iv) of this section, a 
CSAPR NOX Ozone Season Group 2 allowance held for compliance 
with the requirements under paragraphs (c)(1)(i), (c)(1)(ii)(A), and 
(c)(2)(i) through (iii) of this section must be a CSAPR NOX 
Ozone Season Original Group 2 allowance.
    (iv) A CSAPR NOX Ozone Season Group 2 allowance held for 
compliance with the requirements under paragraphs (c)(1)(i), 
(c)(1)(ii)(A), and (c)(2)(i) through (iii) of this section for a source 
or group of sources in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of 
this chapter (or Indian country within the borders of such a State) for 
a control period after 2022 must be a CSAPR NOX Ozone Season 
Expanded Group 2 allowance.
* * * * *

0
16. Amend Sec.  97.810 by:
0
a. In paragraphs (a)(2)(i) and (ii), removing ``through 2022'' and 
adding in its place ``and thereafter'';
0
b. Adding paragraphs (a)(8)(iv) through (vi) and (a)(9)(iv) through 
(vi);
0
c. In paragraphs (a)(12)(i) through (iii), (a)(13)(i) and (ii), 
(a)(20)(i) through (iii), and (b)(2), removing ``through 2022'' and 
adding in its place ``and thereafter'';
0
d. Redesignating paragraph (b)(8) as paragraph (b)(8)(i) and adding 
paragraph (b)(8)(ii);
0
e. Redesignating paragraph (b)(9) as paragraph (b)(9)(i) and adding 
paragraph (b)(9)(ii); and
0
f. In paragraphs (b)(12), (b)(13), and (b)(20), removing ``through 
2022'' and adding in its place ``and thereafter''.
    The additions read as follows:


Sec.  97.810  State NOX Ozone Season Group 2 trading budgets, new unit 
set-asides, Indian country new unit set-asides, and variability limits.

    (a) * * *

[[Page 49306]]

    (8) * * *
    (iv) The NOX Ozone Season Group 2 trading budget for 
2023 and thereafter is 14,051 tons.
    (v) The new unit set-aside for 2023 and thereafter is 283 tons.
    (vi) [Reserved]
    (9) * * *
    (iv) The NOX Ozone Season Group 2 trading budget for 
2023 and thereafter is 14,818 tons.
    (v) The new unit set-aside for 2023 and thereafter is 430 tons.
    (vi) The Indian country new unit set-aside for 2023 and thereafter 
is 15 tons.
* * * * *
    (b) * * *
    (8) * * *
    (ii) The variability limit for Kentucky for 2023 and thereafter is 
2,951 tons.
    (9) * * *
    (ii) The variability limit for Louisiana for 2023 and thereafter is 
3,112 tons.
* * * * *

0
17. Amend Sec.  97.811 by:
0
a. Revising paragraph (a)(2);
0
b. In paragraphs (d)(1), (d)(2)(i), (d)(2)(ii)(A) through (C), 
(d)(3)(i) through (iii), (d)(3)(iv)(A) through (C), (d)(3)(v)(B) and 
(C), (d)(4)(i) through (iii), (d)(5) introductory text, (d)(5)(i) and 
(ii), and (d)(6), adding ``Original'' before ``Group 2'' each time it 
appears;
0
c. In paragraph (e)(1):
0
i. Adding ``and not listed in Sec.  52.38(b)(2)(ii)(D)(2) of this 
chapter'' before ``(and Indian country''; and
0
ii. Adding ``Original'' before ``Group 2'' each time it appears; and
0
d. In paragraphs (e)(2)(i), (e)(2)(ii)(A) through (C), (e)(3)(i) 
through (iii), (e)(3)(iv)(A) through (C), (e)(3)(v)(B) and (C), 
(e)(4)(i) through (iii), (e)(5) introductory text, (e)(5)(i) and (ii), 
and (e)(6), adding ``Original'' before ``Group 2'' each time it 
appears.
    The revision reads as follows:


Sec.  97.811  Timing requirements for CSAPR NOX Ozone Season Group 2 
allowance allocations.

    (a) * * *
    (2) Notwithstanding paragraph (a)(1) of this section:
    (i) If a unit provided an allocation of CSAPR NOX Ozone 
Season Original Group 2 allowances in the applicable notice of data 
availability issued under paragraph (a)(1) of this section does not 
operate, starting after 2016, during the control period in two 
consecutive years, such unit will not be allocated the CSAPR 
NOX Ozone Season Original Group 2 allowances provided in 
such notice for the unit for the control periods in the fifth year 
after the first such year and in each year after that fifth year.
    (ii) If a unit provided an allocation of CSAPR NOX Ozone 
Season Expanded Group 2 allowances in the applicable notice of data 
availability issued under paragraph (a)(1) of this section does not 
operate, starting after 2020, during the control period in two 
consecutive years, such unit will not be allocated the CSAPR 
NOX Ozone Season Expanded Group 2 allowances provided in 
such notice for the unit for the control periods in the fifth year 
after the first such year and in each year after that fifth year.
    (iii) All CSAPR NOX Ozone Season Group 2 allowances that 
would otherwise have been allocated to a unit described in paragraph 
(a)(2)(i) or (ii) of this section will be allocated to the new unit 
set-aside for the State where such unit is located and for the 
respective years involved. If such unit resumes operation, the 
Administrator will allocate CSAPR NOX Ozone Season Group 2 
allowances to the unit in accordance with paragraph (b) of this 
section.
* * * * *

0
18. Amend Sec.  97.816 by revising paragraph (c) to read as follows:


Sec.  97.816  Certificate of representation.

* * * * *
    (c) A certificate of representation under this section, Sec.  
97.516, or Sec.  97.1016 that complies with the provisions of paragraph 
(a) of this section except that it contains the phrase ``TR 
NOX Ozone Season'' or the phrase ``CSAPR NOX 
Ozone Season Group 3'' in place of the phrase ``CSAPR NOX 
Ozone Season Group 2'' in the required certification statements will be 
considered a complete certificate of representation under this section, 
and the certification statements included in such certificate of 
representation will be interpreted for purposes of this subpart as if 
the phrase ``CSAPR NOX Ozone Season Group 2'' appeared in 
place of the phrase ``TR NOX Ozone Season'' or the phrase 
``CSAPR NOX Ozone Season Group 3''.

0
19. Amend Sec.  97.818 by redesignating paragraph (f) as paragraph 
(f)(1) and adding paragraph (f)(2) to read as follows:


Sec.  97.818  Delegation by designated representative and alternate 
designated representative.

* * * * *
    (f) * * *
    (2) A notice of delegation submitted under paragraph (c) of this 
section or Sec.  97.1018(c) that complies with the provisions of 
paragraph (c) of this section except that it contains the terms ``40 
CFR 97.1018(d)'' and ``40 CFR 97.1018'' in place of the terms ``40 CFR 
97.818(d)'' and ``40 CFR 97.818'', respectively, in the required 
certification statements will be considered a valid notice of 
delegation submitted under paragraph (c) of this section, and the 
certification statements included in such notice of delegation will be 
interpreted for purposes of this subpart as if the terms ``40 CFR 
97.818(d)'' and ``40 CFR 97.818'' appeared in place of the terms ``40 
CFR 97.1018(d)'' and ``40 CFR 97.1018'', respectively.

0
20. Amend Sec.  97.820 by:
0
a. Revising paragraphs (c)(1)(iv) and (c)(2)(iv); and
0
b. Redesignating paragraph (c)(5)(vi) as paragraph (c)(5)(vi)(A) and 
adding paragraph (c)(5)(vi)(B).
    The revisions and addition read as follows:


Sec.  97.820  Establishment of compliance accounts, assurance accounts, 
and general accounts.

* * * * *
    (c) * * *
    (1) * * *
    (iv) An application for a general account under paragraph (c)(1) of 
this section, Sec.  97.520(c)(1), or Sec.  97.1020(c)(1) that complies 
with the provisions of paragraph (c)(1) of this section except that it 
contains the phrase ``TR NOX Ozone Season'' or the phrase 
``CSAPR NOX Ozone Season Group 3'' in place of the phrase 
``CSAPR NOX Ozone Season Group 2'' in the required 
certification statement will be considered a complete application for a 
general account under paragraph (c)(1) of this section, and the 
certification statement included in such application for a general 
account will be interpreted for purposes of this subpart as if the 
phrase ``CSAPR NOX Ozone Season Group 2'' appeared in place 
of the phrase ``TR NOX Ozone Season'' or the phrase ``CSAPR 
NOX Ozone Season Group 3''.
    (2) * * *
    (iv) A certification statement submitted in accordance with 
paragraph (c)(2)(ii) of this section that contains the phrase ``TR 
NOX Ozone Season'' or the phrase ``CSAPR NOX 
Ozone Season Group 3'' will be interpreted for purposes of this subpart 
as if the phrase ``CSAPR NOX Ozone Season Group 2'' appeared 
in place of the phrase ``TR NOX Ozone Season'' or the phrase 
``CSAPR NOX Ozone Season Group 3''.
* * * * *
    (5) * * *
    (vi) * * *
    (B) A notice of delegation submitted under paragraph (c)(5)(iii) of 
this section or Sec.  97.1020(c)(5)(iii) that complies with the 
provisions of paragraph (c)(5)(iii) of

[[Page 49307]]

this section except that it contains the terms ``40 CFR 
97.1020(c)(5)(iv)'' and ``40 CFR 97.1020(c)(5)'' in place of the terms 
``40 CFR 97.820(c)(5)(iv)'' and ``40 CFR 97.820(c)(5)'', respectively, 
in the required certification statements will be considered a valid 
notice of delegation submitted under paragraph (c)(5)(iii) of this 
section, and the certification statements included in such notice of 
delegation will be interpreted for purposes of this subpart as if the 
terms ``40 CFR 97.820(c)(5)(iv)'' and ``40 CFR 97.820(c)(5)'' appeared 
in place of the terms ``40 CFR 97.1020(c)(5)(iv)'' and ``40 CFR 
97.1020(c)(5)'', respectively.
* * * * *

0
21. Amend Sec.  97.821 by:
0
a. Redesignating paragraph (e) as paragraph (e)(1);
0
b. In newly redesignated paragraph (e)(1), adding ``Original'' before 
``Group 2 allowances'' each time it appears; and
0
c. Adding paragraph (e)(2).
    The addition reads as follows:


Sec.  97.821  Recordation of CSAPR NOX Ozone Season Group 2 allowance 
allocations and auction results.

* * * * *
    (e) * * *
    (2) By September 5, 2023, the Administrator will record in each 
CSAPR NOX Ozone Season Group 2 source's compliance account 
the CSAPR NOX Ozone Season Expanded Group 2 allowances 
allocated to the CSAPR NOX Ozone Season Group 2 units at the 
source in accordance with Sec.  97.811(a) for the control periods in 
2023 and 2024.
* * * * *

0
22. Amend Sec.  97.824 by:
0
a. In paragraph (a)(1), removing ``and'' after the semicolon;
0
b. Adding paragraphs (a)(3) and (4);
0
c. In paragraph (c)(2)(ii), removing ``Sec.  97.526(d), in'' and adding 
in its place ``Sec.  97.526(d), Sec.  97.826(d), or Sec.  97.1026(e), 
in''; and
0
d. Revising paragraph (d).
    The additions and revision read as follows:


Sec.  97.824  Compliance with CSAPR NOX Ozone Season Group 2 emissions 
limitation.

    (a) * * *
    (3) Are CSAPR NOX Ozone Season Original Group 2 
allowances, if the deductions are not for compliance with the CSAPR 
NOX Ozone Season Group 2 emissions limitation of a source in 
a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and 
Indian country within the borders of such a State) for a control period 
after 2022; and
    (4) Are CSAPR NOX Ozone Season Expanded Group 2 
allowances, if the deductions are for compliance with the CSAPR 
NOX Ozone Season Group 2 emissions limitation of a source in 
a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and 
Indian country within the borders of such a State) for a control period 
after 2022.
* * * * *
    (d) Deductions for excess emissions. After making the deductions 
for compliance under paragraph (b) of this section for a control period 
in a year in which the CSAPR NOX Ozone Season Group 2 source 
has excess emissions, the Administrator will deduct from the source's 
compliance account an amount of CSAPR NOX Ozone Season Group 
2 allowances, allocated or auctioned for a control period in a prior 
year or the control period in the year of the excess emissions or in 
the immediately following year, equal to two times the number of tons 
of the source's excess emissions, provided that--
    (1) The allowances deducted shall be CSAPR NOX Ozone 
Season Original Group 2 allowances, if the excess emissions are not 
from a source in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this 
chapter (and Indian country within the borders of such a State) for a 
control period after 2022; and
    (2) The allowances deducted shall be CSAPR NOX Ozone 
Season Expanded Group 2 allowances, if the excess emissions are from a 
source in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter 
(and Indian country within the borders of such a State) for a control 
period after 2022.
* * * * *

0
23. Amend Sec.  97.825 by:
0
a. In paragraph (a)(1), removing ``and'' after the semicolon; and
0
b. Adding paragraphs (a)(3) and (4).
    The additions read as follows:


Sec.  97.825  Compliance with CSAPR NOX Ozone Season Group 2 assurance 
provisions.

    (a) * * *
    (3) Are CSAPR NOX Ozone Season Original Group 2 
allowances, if the deductions are not for compliance with the CSAPR 
NOX Ozone Season Group 2 assurance provisions by the owners 
and operators of a group of sources in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State) for a control period after 2022; and
    (4) Are CSAPR NOX Ozone Season Expanded Group 2 
allowances, if the deductions are for compliance with the CSAPR 
NOX Ozone Season Group 2 assurance provisions by the owners 
and operators of a group of sources in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State) for a control period after 2022.
* * * * *

0
24. Amend Sec.  97.826 by:
0
a. In paragraphs (d)(1)(i)(A) and (D), (d)(1)(ii)(A), (d)(1)(iii)(A), 
(d)(1)(iv)(A) and (B), and (d)(2)(ii), adding ``Original'' before 
``Group 2 allowances'' each time it appears;
0
b. Redesignating paragraph (d)(3) as paragraph (d)(3)(i);
0
c. In newly redesignated paragraph (d)(3)(i):
0
i. Removing ``After the Administrator'' and adding in its place 
``Except as provided in paragraph (d)(3)(ii) of this section, after the 
Administrator''; and
0
ii. Adding ``Original'' before ``Group 2 allowances'' each time it 
appears;
0
d. Adding paragraph (d)(3)(ii);
0
e. In paragraph (e)(1) introductory text, adding ``or (D)'' before ``of 
this chapter'';
0
f. In paragraphs (e)(1)(i), (e)(1)(ii)(A), (e)(1)(iii) and (iv), 
(e)(1)(v)(B), and (e)(2), adding ``Original'' before ``Group 2 
allowances'' each time it appears;
0
g. Revising paragraph (f) introductory text;
0
h. Redesignating paragraph (f)(1) as paragraph (f)(1)(i);
0
i. In newly redesignated paragraph (f)(1)(i):
0
i. Removing ``After the Administrator'' and adding in its place 
``Except as provided in paragraph (f)(1)(ii) of this section, after the 
Administrator''; and
0
ii. Adding ``Original'' before ``Group 2 allowances'' each time it 
appears;
0
j. Adding paragraph (f)(1)(ii); and
0
k. In paragraph (f)(2):
0
i. Adding ``and not listed in Sec.  52.38(b)(ii)(D)(2) of this 
chapter'' before ``(and Indian country''; and
0
ii. Adding ``Original'' before ``Group 2 allowances'' each time it 
appears.
    The additions and revision read as follows:


Sec.  97.826  Banking and conversion.

* * * * *
    (d) * * *
    (3) * * *
    (ii) After the Administrator has carried out the procedures set 
forth in paragraph (d)(1) of this section and Sec.  97.1026(e), upon 
any determination that would otherwise result in the initial 
recordation of a given number of CSAPR NOX Ozone Season 
Original Group 2 allowances in the compliance account for a source in a 
State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and Indian 
country within the borders of such a State), the Administrator will not 
record such CSAPR NOX Ozone Season Original Group 2 
allowances but

[[Page 49308]]

instead will allocate and record in such account an amount of CSAPR 
NOX Ozone Season Expanded Group 2 allowances for the control 
period in 2023 computed as the quotient, rounded up to the nearest 
allowance, of such given number of CSAPR NOX Ozone Season 
Original Group 2 allowances divided by the conversion factor determined 
under paragraph (d)(1)(i)(D) of this section.
* * * * *
    (f) Notwithstanding any other provision of this subpart or any SIP 
revision approved under Sec.  52.38(b)(8) or (9) of this chapter, CSAPR 
NOX Ozone Season Expanded Group 2 allowances or CSAPR 
NOX Ozone Season Group 3 allowances may be used to satisfy 
requirements to hold CSAPR NOX Ozone Season Original Group 2 
allowances under this subpart as follows, provided that nothing in this 
paragraph (f) alters the time as of which any such allowance holding 
requirement must be met or limits any consequence of a failure to 
timely meet any such allowance holding requirement:
    (1) * * *
    (ii) After the Administrator has carried out the procedures set 
forth in paragraph (d)(1) of this section and Sec.  97.1026(e), the 
owner or operator of a CSAPR NOX Ozone Season Group 2 source 
in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and 
Indian country within the borders of such a State) may satisfy a 
requirement to hold a given number of CSAPR NOX Ozone Season 
Original Group 2 allowances for a control period in 2017 through 2020 
by holding instead, in a general account established for this sole 
purpose, an amount of CSAPR NOX Ozone Season Expanded Group 
2 allowances for the control period in 2023 (or any later control 
period for which the allowance transfer deadline defined in Sec.  
97.802 has passed) computed as the quotient, rounded up to the nearest 
allowance, of such given number of CSAPR NOX Ozone Season 
Original Group 2 allowances divided by the conversion factor determined 
under paragraph (d)(1)(i)(D) of this section.
* * * * *

0
25. Amend Sec.  97.830 by revising paragraph (b)(1) to read as follows:


Sec.  97.830  General monitoring, recordkeeping, and reporting 
requirements.

* * * * *
    (b) * * *
    (1)(i) May 1, 2017, for a unit other than a unit described in 
paragraph (b)(1)(ii) of this section;
    (ii) May 1, 2023, for a unit that did not commence commercial 
operation at least 180 calendar days before September 30, 2020 and that 
is located in a State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this 
chapter (and Indian country within the borders of such a State);
* * * * *

0
26. Amend Sec.  97.834 by revising paragraph (d)(2)(i) to read as 
follows:


Sec.  97.834  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (2) * * *
    (i)(A) The calendar quarter covering May 1, 2017 through June 30, 
2017, for a unit other than a unit described in paragraph (d)(2)(i)(B) 
of this section;
    (B) The calendar quarter covering May 1, 2023 through June 30, 
2023, for a unit that did not commence commercial operation at least 
180 calendar days before September 30, 2020 and that is located in a 
State listed in Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and Indian 
country within the borders of such a State);
* * * * *

Subpart GGGGG--CSAPR NOX Ozone Season Group 3 Trading Program

0
27. Amend Sec.  97.1002 by:
0
a. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Expanded Group 2 allowance'';
0
b. Revising the definition of ``CSAPR NOX Ozone Season Group 
2 allowance''; and
0
c. Adding in alphabetical order a definition of ``CSAPR NOX 
Ozone Season Original Group 2 allowance''.
    The additions and revision read as follows:


Sec.  97.1002  Definitions.

* * * * *
    CSAPR NOX Ozone Season Expanded Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance allocated for a control 
period after 2022 under subpart EEEEE of this part, Sec.  97.526(d), or 
Sec.  97.1026(e) to a unit in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State) or allocated or auctioned for a control period 
after 2022 in accordance with the provisions of a SIP revision approved 
for such a State by the Administrator under Sec.  52.38(b)(7), (8), or 
(9) of this chapter.
* * * * *
    CSAPR NOX Ozone Season Group 2 allowance means a limited 
authorization issued and allocated or auctioned by the Administrator 
under subpart EEEEE of this part, Sec.  97.526(d), or Sec.  97.1026(e), 
or by a State or permitting authority under a SIP revision approved by 
the Administrator under Sec.  52.38(b)(7), (8), or (9) of this chapter, 
to emit one ton of NOX during a control period of the 
specified calendar year for which the authorization is allocated or 
auctioned or of any calendar year thereafter under the CSAPR 
NOX Ozone Season Group 2 Trading Program, where each CSAPR 
NOX Ozone Season Group 2 allowance is either a CSAPR 
NOX Ozone Season Original Group 2 allowance or a CSAPR 
NOX Ozone Season Expanded Group 2 allowance.
* * * * *
    CSAPR NOX Ozone Season Original Group 2 allowance means a CSAPR 
NOX Ozone Season Group 2 allowance other than a CSAPR 
NOX Ozone Season Expanded Group 2 allowance.
* * * * *

0
28. Amend Sec.  97.1026 by:
0
a. Revising the section heading; and
0
b. Adding paragraphs (e) and (f).
    The revision and additions read as follows:


Sec.  97.1026  Banking and conversion; bank recalibration.

* * * * *
    (e) Notwithstanding any other provision of this subpart, by 
September 18, 2023, the Administrator will temporarily suspend 
acceptance of CSAPR NOX Ozone Season Group 3 allowance 
transfers submitted under Sec.  97.1022 and, before resuming acceptance 
of such transfers, will take the actions in paragraphs (e)(1) and (2) 
of this section with regard to every compliance account for a CSAPR 
NOX Ozone Season Group 3 source in a State listed in Sec.  
52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within the 
borders of such a State):
    (1) The Administrator will deduct all CSAPR NOX Ozone 
Season Group 3 allowances allocated for the control periods in 2021 and 
2022 from each such compliance account.
    (2) For each CSAPR NOX Ozone Season Group 3 allowance 
deducted from a given source's compliance account under paragraph 
(e)(1) of this section, the Administrator will allocate to the source 
and record in the source's compliance account one CSAPR NOX 
Ozone Season Expanded Group 2 allowance for the control period in 2023.
    (f) Notwithstanding any other provision of this subpart, CSAPR 
NOX Ozone Season Expanded Group 2 allowances may be used to 
satisfy requirements to hold CSAPR NOX Ozone Season Group 3 
allowances under this subpart as follows, provided that nothing in this 
paragraph (f) alters the time as of which any such allowance

[[Page 49309]]

holding requirement must be met or limits any consequence of a failure 
to timely meet any such allowance holding requirement:
    (1) After the Administrator has carried out the procedures set 
forth in paragraph (e) of this section, the owner or operator of a 
CSAPR NOX Ozone Season Group 3 source in a State listed in 
Sec.  52.38(b)(2)(ii)(D)(1) of this chapter (and Indian country within 
the borders of such a State) may satisfy a requirement to hold a given 
number of CSAPR NOX Ozone Season Group 3 allowances for the 
control period in 2021 or 2022 by holding instead, in a general account 
established for this sole purpose, an equal amount of CSAPR 
NOX Ozone Season Expanded Group 2 allowances for the control 
period in 2023 (or any later control period for which the allowance 
transfer deadline defined in Sec.  97.802 has passed).
    (2) [Reserved]

0
29. Amend Sec.  97.1034 by:
0
a. In paragraph (d)(2)(i)(C), removing ``June'' and adding in its place 
``September'';
0
b. In paragraph (d)(3), revising the first sentence; and
0
c. In paragraph (d)(4), adding a second sentence.
    The revision and addition read as follows:


Sec.  97.1034  Recordkeeping and reporting.

* * * * *
    (d) * * *
    (3) The designated representative shall submit each quarterly 
report to the Administrator within 30 days after the end of the 
calendar quarter covered by the report, except that quarterly reports 
required for the calendar quarter covering May 1, 2023, through June 
30, 2023, shall be submitted by August 4, 2023. * * *
    (4) * * * Notwithstanding the provisions of Sec. Sec.  75.64(a), 
75.73(f)(1), 97.434(d)(2), 97.634(d)(2), and 97.734(d)(2), the deadline 
for the designated representative of such a unit to submit the 
quarterly reports required under such additional programs for the 
calendar quarter covering May 1, 2023, through June 30, 2023, shall be 
August 4, 2023.
* * * * *
[FR Doc. 2023-14180 Filed 7-28-23; 8:45 am]
BILLING CODE 6560-50-P