81_FR_42038 81 FR 41914 - Air Plan Approval; Alabama; Cross-State Air Pollution Rule

81 FR 41914 - Air Plan Approval; Alabama; Cross-State Air Pollution Rule

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 81, Issue 124 (June 28, 2016)

Page Range41914-41923
FR Document2016-15146

The Environmental Protection Agency (EPA) is proposing to approve portions of the October 26, 2015, State Implementation Plan (SIP) submittal from Alabama concerning the Cross-State Air Pollution Rule (CSAPR). Under CSAPR, large electricity generating units (EGUs) in Alabama are subject to Federal Implementation Plans (FIPs) requiring the units to participate in CSAPR's federal trading program for annual emissions of nitrogen oxides (NO<INF>X</INF>) and one of CSAPR's two federal trading programs for annual emissions of sulfur dioxide (SO<INF>2</INF>). This action would approve into Alabama's SIP the state's regulations requiring Alabama EGUs to participate in new CSAPR state trading programs for annual NO<INF>X</INF> and SO<INF>2</INF> emissions integrated with the CSAPR federal trading programs, replacing the corresponding FIP requirements. These CSAPR state trading programs are substantively identical to the CSAPR federal trading programs except with regard to the provisions allocating emission allowances among Alabama units. EPA is proposing to approve the portions of the SIP revision concerning these CSAPR state trading programs because these portions of the SIP revision meet the requirements of the Clean Air Act (CAA or Act) and EPA's regulations for approval of a CSAPR full SIP revision replacing the requirements of a CSAPR FIP. Under the CSAPR regulations, approval of these portions of the SIP revision would automatically eliminate Alabama units' obligations to participate in CSAPR's federal trading programs for annual NO<INF>X</INF> and SO<INF>2</INF> emissions under the corresponding CSAPR FIPs addressing interstate transport requirements for the 1997 and 2006 Fine Particulate Matter (PM<INF>2.5</INF>) national ambient air quality standards (NAAQS). Approval of these portions of the SIP revision would satisfy Alabama's good neighbor obligation under the CAA to prohibit emissions which will significantly contribute to nonattainment or interfere with maintenance of the 1997 and 2006 PM<INF>2.5</INF> NAAQS in any other state. EPA is not proposing to act at this time on the portion of Alabama's SIP submittal intended to replace Alabama units' obligations to participate in CSAPR's federal trading program for ozone-season NO<INF>X</INF> emissions under a separate CSAPR FIP.

Federal Register, Volume 81 Issue 124 (Tuesday, June 28, 2016)
[Federal Register Volume 81, Number 124 (Tuesday, June 28, 2016)]
[Proposed Rules]
[Pages 41914-41923]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-15146]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2016-0294; FRL-9948-41-Region 4]


Air Plan Approval; Alabama; Cross-State Air Pollution Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve portions of the October 26, 2015, State Implementation Plan 
(SIP) submittal from Alabama concerning the Cross-State Air Pollution 
Rule (CSAPR). Under CSAPR, large electricity generating units (EGUs) in 
Alabama are subject to Federal Implementation Plans (FIPs) requiring 
the units to participate in CSAPR's federal trading program for annual 
emissions of nitrogen oxides (NOX) and one of CSAPR's two 
federal trading programs for annual emissions of sulfur dioxide 
(SO2). This action would approve into Alabama's SIP the 
state's regulations requiring Alabama EGUs to participate in new CSAPR 
state trading programs for annual NOX and SO2 
emissions integrated with the CSAPR federal trading programs, replacing 
the corresponding FIP requirements. These CSAPR state trading programs 
are substantively identical to the CSAPR federal trading programs 
except with regard to the provisions allocating emission allowances 
among Alabama units. EPA is proposing to approve the portions of the 
SIP revision concerning these CSAPR state trading programs because 
these portions of the SIP revision meet the requirements of the Clean 
Air Act (CAA or Act) and EPA's regulations for approval of a CSAPR full 
SIP revision replacing the requirements of a CSAPR FIP. Under the CSAPR 
regulations, approval of these portions of the SIP revision would 
automatically eliminate Alabama units' obligations to participate in 
CSAPR's federal trading programs for annual NOX and 
SO2 emissions under the corresponding CSAPR FIPs addressing 
interstate transport requirements for the 1997 and 2006 Fine 
Particulate Matter (PM2.5) national ambient air quality 
standards (NAAQS). Approval of these portions of the SIP

[[Page 41915]]

revision would satisfy Alabama's good neighbor obligation under the CAA 
to prohibit emissions which will significantly contribute to 
nonattainment or interfere with maintenance of the 1997 and 2006 
PM2.5 NAAQS in any other state. EPA is not proposing to act 
at this time on the portion of Alabama's SIP submittal intended to 
replace Alabama units' obligations to participate in CSAPR's federal 
trading program for ozone-season NOX emissions under a 
separate CSAPR FIP.

DATES: Comments must be received on or before July 28, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No EPA-R04-
OAR-2016-0294 at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. EPA may publish any comment 
received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the Web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Steven Scofield, Air Regulatory 
Management Section, Air, Pesticides and Toxics Management Division, 
U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., 
Atlanta, Georgia 30303-8960. Mr. Scofield can be reached by telephone 
at (404) 562-9034 or via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 
    This section provides additional information by addressing the 
following:

I. Summary
II. Background on CSAPR and CSAPR-Related SIP Revisions
III. Conditions for Approval of CSAPR-Related SIP Revisions
IV. Alabama's SIP Submittal and EPA's Analysis
    A. Alabama's SIP Submittal
    B. EPA's Analysis of Alabama's Submittal
    1. Timeliness and Completeness of SIP Submittal
    2. Methodology Covering All Allowances Potentially Requiring 
Allocation
    3. Assurance That Total Allocations Will Not Exceed the State 
Budget
    4. Timely Submission of State-Determined Allocations to EPA
    5. No Changes to Allocations Already Submitted to EPA or 
Recorded
    6. No Other Substantive Changes to Federal Trading Program 
Provisions
    7. Complete, Substantively Identical Trading Program Provisions
    8. Only Non-Substantive Substitutions for the Term ``State''
    9. Exclusion of Provisions Addressing Units in Indian Country
V. EPA's Proposed Action on Alabama's Submittal
VI. Statutory and Executive Order Reviews

I. Summary

    EPA is proposing to approve the portions of the October 26, 2015, 
SIP submittal from Alabama concerning CSAPR \1\ trading programs for 
annual emissions of NOX and SO2. Large EGUs in 
Alabama are subject to CSAPR FIPs that require the units to participate 
in the federal CSAPR NOX Annual Trading Program and the 
federal CSAPR SO2 Group 2 Trading Program.\2\ CSAPR also 
provides a process for the submission and approval of SIP revisions to 
replace the requirements of CSAPR FIPs with SIP requirements under 
which a state's units participate in CSAPR state trading programs that 
are integrated with and, with certain permissible exceptions, 
substantively identical to the CSAPR federal trading programs.
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    \1\ Federal Implementation Plans; Interstate Transport of Fine 
Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR 
48208 (August 8, 2011) (codified as amended at 40 CFR 52.38 and 
52.39 and subparts AAAAA through DDDDD of 40 CFR part 97).
    \2\ EPA has proposed to replace the terms ``Transport Rule'' and 
``TR'' in the text of the Code of Federal Regulations with the 
updated terms ``Cross-State Air Pollution Rule'' and ``CSAPR.'' 80 
FR 75706 and 75759 (December 3, 2015). Except where otherwise noted, 
EPA uses the updated terms here.
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    The portions of the SIP revision proposed for approval would 
incorporate into Alabama's SIP state trading program regulations for 
annual NOX and SO2 emissions that would replace 
EPA's federal trading program regulations for those emissions for 
Alabama units for control periods in 2017 and later years. EPA is 
proposing to approve these portions of the SIP revision because they 
meet the requirements of the CAA and EPA's regulations for approval of 
a CSAPR full SIP revision replacing a federal trading program with a 
state trading program that is integrated with and substantively 
identical to the federal trading program except for permissible 
differences with respect to emission allowance allocation provisions. 
Under the CSAPR regulations, approval of these portions of the SIP 
revision would automatically eliminate the obligations of units in 
Alabama (but not any units in Indian country within Alabama's borders) 
to participate in CSAPR's federal trading programs for annual 
NOX and SO2 emissions under the corresponding 
CSAPR FIPs. EPA proposes to find that approval of these portions of the 
SIP revision would satisfy Alabama's obligation pursuant to CAA section 
110(a)(2)(D)(i)(I) to prohibit emissions which will significantly 
contribute to nonattainment or interfere with maintenance of the 1997 
and 2006 PM2.5 NAAQS in any other state.
    The Phase 2 SO2 budget established for Alabama in the 
CSAPR rulemaking has been remanded to EPA for reconsideration.\3\ If 
EPA finalizes approval of these portions of the SIP revision as 
proposed, Alabama will have fulfilled its obligations to provide a SIP 
that address the interstate transport provisions of CAA section 
110(a)(2)(D)(i)(I) with respect to the 1997 and 2006 PM2.5 
NAAQS. Thus, EPA would no longer be under an obligation to (nor would 
EPA have the authority to) address those interstate transport 
requirements through implementation of a FIP, and approval of these 
portions of the SIP revision would eliminate Alabama units' obligations 
to participate in the federal CSAPR NOX Annual Trading 
Program and the federal CSAPR SO2 Group 2 Trading Program. 
Elimination of Alabama units' obligations to participate in the federal 
trading programs would include elimination of the federally-established 
Phase 2 budgets capping allocations of CSAPR NOX Annual 
allowances and CSAPR SO2 Group 2 allowances to Alabama units 
under those federal trading programs. As approval of these portions of 
the SIP revision would eliminate Alabama's remanded federally-
established Phase 2 SO2 budget and eliminate EPA's authority 
to subject units in Alabama to a FIP, it is EPA's opinion that 
finalization of approval of this SIP action would address the judicial 
remand of Alabama's federally-established Phase 2 SO2 
budget.\4\
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    \3\ EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 138 
(D.C. Cir. 2015).
    \4\ Although the court in EME Homer City Generation remanded 
Alabama's Phase 2 SO2 budget because it determined that 
the budget was too stringent, nothing in the court's decision 
affects Alabama's authority to seek incorporation into its SIP of a 
state-established budget as stringent as the remanded federally-
established budget or limits EPA's authority to approve such a SIP 
revision. See 42 U.S.C. 7416, 7410(k)(3).

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[[Page 41916]]

    Large electricity generating units in Alabama are also subject to 
an additional CSAPR FIP requiring them to participate in the federal 
CSAPR NOX Ozone Season Trading Program. While Alabama's SIP 
submittal also seeks to replace the requirements of the CSAPR FIP 
concerning Alabama units' ozone-season NOX emissions, EPA is 
not proposing to act on that portion of the SIP submittal at this time. 
Approval of this SIP revision concerning other CSAPR trading programs 
would have no effect on the CSAPR NOX Ozone Season Trading 
Program as applied to Alabama units, and the FIP requiring the units to 
participate in that program would remain in place.
    Section II of this document summarizes relevant aspects of the 
CSAPR federal trading programs and FIPs as well as the range of 
opportunities states have to submit SIP revisions to modify or replace 
the FIP requirements while continuing to rely on CSAPR's trading 
programs to address the states' obligations to mitigate interstate air 
pollution. Section III describes the specific conditions for approval 
of such SIP revisions. Section IV contains EPA's analysis of Alabama's 
SIP submittal, and Section V sets forth EPA's proposed action on the 
submittal. Section VI addresses required statutory and Executive Order 
reviews.

II. Background on CSAPR and CSAPR-Related SIP Revisions

    EPA issued CSAPR in July 2011 to address the requirements of CAA 
section 110(a)(2)(D)(i)(I) concerning interstate transport of air 
pollution. As amended, CSAPR requires 28 Eastern states to limit their 
statewide emissions of SO2 and/or NOX in order to 
mitigate transported air pollution unlawfully impacting other states' 
ability to attain or maintain three NAAQS: The 1997 ozone NAAQS, the 
1997 annual PM2.5 NAAQS, and the 2006 24-hour 
PM2.5 NAAQS. The CSAPR emissions limitations are defined in 
terms of maximum statewide ``budgets'' for emissions of annual 
SO2, annual NOX, and/or ozone-season 
NOX by each covered state's large EGUs. The CSAPR state 
budgets are implemented in two phases of generally increasing 
stringency, with the Phase 1 budgets applying to emissions in 2015 and 
2016 and the Phase 2 budgets applying to emissions in 2017 and later 
years. As a mechanism for achieving compliance with the emissions 
limitations, CSAPR established four federal emissions trading programs: 
A program for annual NOX emissions, a program for ozone-
season NOX emissions, and two geographically separate 
programs for annual SO2 emissions. CSAPR also established up 
to three FIPs applicable to the large electricity generating units in 
each covered state. Each CSAPR FIP requires a state's units to 
participate in one of the four CSAPR trading programs.
    CSAPR includes provisions under which states may submit and EPA 
will approve SIP revisions to modify or replace the CSAPR FIP 
requirements while allowing states to continue to meet their transport-
related obligations using either CSAPR's federal emissions trading 
programs or state emissions trading programs integrated with the 
federal programs.\5\ Through such a SIP revision, a state may replace 
EPA's default provisions for allocating emission allowances among the 
state's units, employing any state-selected methodology to allocate or 
auction the allowances, subject to timing conditions and limits on 
overall allowance quantities. In the case of CSAPR's federal trading 
program for ozone-season NOX emissions (or an integrated 
state trading program), a state may also expand trading program 
applicability to include certain smaller electricity generating units. 
If a state wants to replace CSAPR FIP requirements with SIP 
requirements under which the state's units participate in a state 
trading program that is integrated with and identical to the federal 
trading program even as to the allocation and applicability provisions, 
the state may submit a SIP revision for that purpose as well. However, 
no emissions budget increases or other substantive changes to the 
trading program provisions are allowed. A state whose units are subject 
to multiple CSAPR FIPs and federal trading programs may submit SIP 
revisions to modify or replace the requirements under either some or 
all of those FIPs.
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    \5\ See 40 CFR 52.38, 52.39. States also retain the ability to 
submit SIP revisions to meet their transport-related obligations 
using mechanisms other than the CSAPR federal trading programs or 
integrated state trading programs.
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    States can submit two basic forms of CSAPR-related SIP revisions 
effective for emissions control periods in 2017 or later years.\6\ 
Specific conditions for approval of each form of SIP revision are set 
forth in the CSAPR regulations, as described in section III below. 
Under the first alternative--an ``abbreviated'' SIP revision--a state 
may submit a SIP revision that upon approval replaces the default 
allowance allocation and/or applicability provisions of a CSAPR federal 
trading program for the state.\7\ Approval of an abbreviated SIP 
revision leaves the corresponding CSAPR FIP and all other provisions of 
the relevant federal trading program in place for the state's units.
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    \6\ CSAPR also provides for a third, more streamlined form of 
SIP revision that is effective only for control periods in 2016 and 
is not relevant here. See Sec.  52.38(a)(3), (b)(3); Sec.  52.39(d), 
(g).
    \7\ Sec.  52.38(a)(4), (b)(4); Sec.  52.39(e), (h).
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    Under the second alternative--a ``full'' SIP revision--a state may 
submit a SIP revision that upon approval replaces a CSAPR federal 
trading program for the state with a state trading program integrated 
with the federal trading program, so long as the state trading program 
is substantively identical to the federal trading program or does not 
substantively differ from the federal trading program except as 
discussed above with regard to the allowance allocation and/or 
applicability provisions.\8\ For purposes of a full SIP revision, a 
state may either adopt state rules with complete trading program 
language, incorporate the federal trading program language into its 
state rules by reference (with appropriate conforming changes), or 
employ a combination of these approaches.
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    \8\ Sec.  52.38(a)(5), (b)(5); Sec.  52.39(f), (i).
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    The CSAPR regulations identify several important consequences and 
limitations associated with approval of a full SIP revision. First, 
upon EPA's approval of a full SIP revision as correcting the deficiency 
in the state's SIP that was the basis for a particular CSAPR FIP, the 
obligation to participate in the corresponding CSAPR federal trading 
program is automatically eliminated for units subject to the state's 
jurisdiction without the need for a separate EPA withdrawal action, so 
long as EPA's approval of the SIP is full and unconditional.\9\ Second, 
approval of a full SIP revision does not terminate the obligation to 
participate in the corresponding CSAPR federal trading program for any 
units located in any Indian country within the borders of the state, 
and if and when a unit is located in Indian country within a state's 
borders, EPA may modify the SIP approval to exclude from the SIP, and 
include in the surviving CSAPR FIP instead, certain trading program 
provisions that apply jointly to units in the state and to units in 
Indian country within the state's borders.\10\ Finally, if at the time 
a full SIP revision is approved

[[Page 41917]]

EPA has already started recording allocations of allowances for a given 
control period to a state's units, the federal trading program 
provisions authorizing EPA to complete the process of allocating and 
recording allowances for that control period to those units will 
continue to apply, unless EPA's approval of the SIP revision provides 
otherwise.\11\
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    \9\ Sec.  52.38(a)(6), (b)(6); Sec.  52.39(j).
    \10\ Sec.  52.38(a)(5)(iv) and (v), (a)(6), (b)(5)(v) and (vi), 
(b)(6); Sec.  52.39(f)(4) and (5), (i)(4) and (5), (j).
    \11\ Sec.  52.38(a)(7), (b)(7); Sec.  52.39(k).
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    Certain CSAPR Phase 2 emissions budgets have been remanded to EPA 
for reconsideration.\12\ However, the CSAPR trading programs remain in 
effect and all CSAPR emissions budgets likewise remain in effect 
pending EPA final action to address the remands. The remanded budgets 
include the CSAPR Phase 2 SO2 emissions budget applicable to 
Alabama units under the federal CSAPR SO2 Group 2 Trading 
Program.
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    \12\ EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 138 
(D.C. Cir. 2015).
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    In 2015, EPA proposed to update CSAPR to address Eastern states' 
interstate air pollution mitigation obligations with regard to the 2008 
ozone NAAQS. Among other things, the proposed rule would amend the 
Phase 2 emissions budget applicable to Alabama units under the CSAPR 
NOX Ozone Season Trading Program and would make technical 
corrections and nomenclature changes that would apply throughout the 
CSAPR regulations, including the CSAPR FIPs at 40 CFR part 52 and the 
CSAPR federal trading program regulations for annual NOX, 
ozone-season NOX, and SO2 emissions at 40 CFR 
part 97.\13\
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    \13\ 80 FR 75706, 75710, 75757 (December 3, 2015).
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III. Conditions for Approval of CSAPR-Related SIP Revisions

    Each CSAPR-related abbreviated or full SIP revision must meet the 
following general submittal conditions:
     Timeliness and completeness of SIP submittal. If a state 
wants to replace the default allowance allocation or applicability 
provisions of a CSAPR federal trading program, the complete SIP 
revision must be submitted to EPA by December 1 of the year before the 
deadlines described below for submitting allocation or auction amounts 
to EPA for the first control period for which the state wants to 
replace the default allocation and/or applicability provisions.\14\ 
This SIP submission deadline is inoperative in the case of a SIP 
revision that seeks only to replace a CSAPR FIP and federal trading 
program with a SIP and a substantively identical state trading program 
integrated with the federal trading program. The SIP submittal 
completeness criteria in section 2.1 of appendix V to 40 CFR part 51 
also apply.
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    \14\ 40 CFR 52.38(a)(4)(ii), (a)(5)(vi), (b)(4)(iii), 
(b)(5)(vii); Sec.  52.39(e)(2), (f)(6), (h)(2), (i)(6).
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    In addition to the general submittal conditions, a CSAPR-related 
abbreviated or full SIP seeking to address the allocation or auction of 
emission allowances must meet the following further conditions:
     Methodology covering all allowances potentially requiring 
allocation. For each federal trading program addressed by a SIP 
revision, the SIP revision's allowance allocation or auction 
methodology must replace both the federal program's default allocations 
to existing units \15\ at 40 CFR 97.411(a), 97.511(a), 97.611(a), or 
97.711(a), as applicable, and the federal trading program's provisions 
for allocating allowances from the new unit set-aside (NUSA) for the 
state at 40 CFR 97.411(b)(1) and 97.412(a), 97.511(b)(1) and 97.512(a), 
97.611(b)(1) and 97.612(a), or 97.711(b)(1) and 97.712(a), as 
applicable.\16\ In the case of a state with Indian country within its 
borders, while the SIP revision may neither alter nor assume the 
federal program's provisions for administering the Indian country NUSA 
for the state, the SIP revision must include procedures addressing the 
disposition of any otherwise unallocated allowances from an Indian 
country NUSA that may be made available for allocation by the state 
after EPA has carried out the Indian country NUSA allocation 
procedures.\17\
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    \15\ In the context of the approval conditions for CSAPR-related 
SIP revisions, an ``existing unit'' is a unit for which EPA has 
determined default allowance allocations (which could be allocations 
of zero allowances) in the rulemakings establishing and amending 
CSAPR. A spreadsheet showing EPA's default allocations to existing 
units is posted at www.epa.gov/crossstaterule/techinfo.html.
    \16\ Sec.  52.38(a)(4)(i), (a)(5)(i), (b)(4)(ii), (b)(5)(ii); 
Sec.  52.39(e)(1), (f)(1), (h)(1), (i)(1).
    \17\ See Sec. Sec.  97.412(b)(10)(ii), 97.512(b)(10)(ii), 
97.612(b)(10)(ii), 97.712(b)(10)(ii).
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     Assurance that total allocations will not exceed the state 
budget. For each federal trading program addressed by a SIP revision, 
the total amount of allowances auctioned or allocated for each control 
period under the SIP revision (prior to the addition by EPA of any 
unallocated allowances from any Indian country NUSA for the state) may 
not exceed the state's emissions budget for the control period less the 
sum of the amount of any Indian country NUSA for the state for the 
control period and any allowances already allocated to the state's 
units for the control period and recorded by EPA.\18\ Under its SIP 
revision, a state is free to not allocate allowances to some or all 
potentially affected units, to allocate or auction allowances to 
entities other than potentially affected units, or to allocate or 
auction fewer than the maximum permissible quantity of allowances and 
retire the remainder.
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    \18\ Sec.  52.38(a)(4)(i)(A), (a)(5)(i)(A), (b)(4)(ii)(A), 
(b)(5)(ii)(A); Sec.  52.39(e)(1)(i), (f)(1)(i), (h)(1)(i), 
(i)(1)(i).
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     Timely submission of state-determined allocations to EPA. 
The SIP revision must require the state to submit to EPA the amounts of 
any allowances allocated or auctioned to each unit for each control 
period (other than allowances initially set aside in the state's 
allocation or auction process and later allocated or auctioned to such 
units from the set-aside amount) by the following deadlines.\19\ Note 
that the submission deadlines differ for amounts allocated or auctioned 
to units considered existing units for CSAPR purposes and amounts 
allocated or auctioned to other units.
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    \19\ Sec.  52.38(a)(4)(i)(B) and (C), (a)(5)(i)(B) and (C), 
(b)(4)(ii)(B) and (C), (b)(5)(ii)(B) and (C); Sec.  52.39(e)(1)(ii) 
and (iii), (f)(1)(ii) and (iii), (h)(1)(ii) and (iii), (i)(1)(ii) 
and (iii).

------------------------------------------------------------------------
                                                 Deadline for submission
          Units            Year of the control  to EPA of allocations or
                                  period             auction results
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Existing.................  2017 and 2018......  June 1, 2016.
                           2019 and 2020......  June 1, 2017.
                           2021 and 2022......  June 1, 2018.
                           2023 and later       June 1 of the fourth
                            years.               year before the year of
                                                 the control period.
Other....................  All years..........  July 1 of the year of
                                                 the control period.
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     No changes to allocations already submitted to EPA or 
recorded. The SIP revision must not provide for any change to the 
amounts of allowances allocated or auctioned to any unit after those 
amounts are submitted to EPA or

[[Page 41918]]

any change to any allowance allocation determined and recorded by EPA 
under the federal trading program regulations.\20\
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    \20\ Sec.  52.38(a)(4)(i)(D), (a)(5)(i)(D), (b)(4)(ii)(D), 
(b)(5)(ii)(D); Sec.  52.39(e)(1)(iv), (f)(1)(iv), (h)(1)(iv), 
(i)(1)(iv).
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     No other substantive changes to federal trading program 
provisions. The SIP revision may not substantively change any other 
trading program provisions, except in the case of a SIP revision that 
also expands program applicability as described below.\21\ Any new 
definitions adopted in the SIP revision (in addition to the federal 
trading program's definitions) may apply only for purposes of the SIP 
revision's allocation or auction provisions.\22\
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    \21\ Sec.  52.38(a)(4), (a)(5), (b)(4), (b)(5); Sec.  52.39(e), 
(f), (h), (i).
    \22\ Sec.  52.38(a)(4)(i), (a)(5)(ii), (b)(4)(ii), (b)(5)(iii); 
Sec.  52.39(e)(1), (f)(2), (h)(1), (i)(2).
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    In addition to the general submittal conditions, a CSAPR-related 
abbreviated or full SIP revision seeking to expand applicability under 
the CSAPR NOx Ozone Season Trading Program (or an integrated state 
trading program) must meet the following further conditions:
     Only electricity generating units with nameplate capacity 
of at least 15 MWe. The SIP revision may expand applicability only to 
additional fossil fuel-fired boilers or combustion turbines serving 
generators producing electricity for sale, and only by lowering the 
generator nameplate capacity threshold used to determine whether a 
particular boiler or combustion turbine serving a particular generator 
is a potentially affected unit. The nameplate capacity threshold 
adopted in the SIP revision may not be less than 15 MWe.\23\
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    \23\ Sec.  52.38(b)(4)(i), (b)(5)(i).
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     No other substantive changes to federal trading program 
provisions. The SIP revision may not substantively change any other 
trading program provisions, except in the case of a SIP revision that 
also addresses the allocation or auction of emission allowances as 
described above.\24\
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    \24\ Sec.  52.38(b)(4), (b)(5).
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    In addition to the general submittal conditions and the other 
applicable conditions described above, a CSAPR-related full SIP 
revision must meet the following further conditions:
     Complete, substantively identical trading program 
provisions. The SIP revision must adopt complete state trading program 
regulations substantively identical to the complete federal trading 
program regulations at 40 CFR 97.402 through 97.435, 97.502 through 
97.535, 97.602 through 97.635, or 97.702 through 97.735, as applicable, 
except as described above in the case of a SIP revision that seeks to 
replace the default allowance allocation and/or applicability 
provisions.
     Only non-substantive substitutions for the term ``State.'' 
The SIP revision may substitute the name of the state for the term 
``State'' as used in the federal trading program regulations, but only 
to the extent that EPA determines that the substitutions do not 
substantively change the trading program regulations.\25\
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    \25\ Sec. Sec.  52.38(a)(5)(iii), (b)(5)(iv); 52.39(f)(3), 
(i)(3).
---------------------------------------------------------------------------

     Exclusion of provisions addressing units in Indian 
country. The SIP revision may not include references to or impose 
requirements on any unit in any Indian country within the state's 
borders and must not include the federal trading program provisions 
governing allocation of allowances from any Indian country NUSA for the 
state.\26\
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    \26\ Sec. Sec.  52.38(a)(5)(iv), (b)(5)(v); 52.39(f)(4), (i)(4).
---------------------------------------------------------------------------

IV. Alabama's SIP Submittal and EPA's Analysis

A. Alabama's SIP Submittal

    In the CSAPR rulemaking, EPA determined that air pollution 
transported from Alabama would unlawfully affect other states' ability 
to attain or maintain the 1997 ozone NAAQS, the 1997 annual 
PM2.5 NAAQS, and the 2006 24-hour PM2.5 
NAAQS.\27\ Alabama units meeting the CSAPR applicability criteria are 
consequently subject to CSAPR FIPs that require participation in the 
CSAPR NOX Annual Trading Program, the CSAPR NOX 
Ozone Season Trading Program, and the CSAPR SO2 Group 2 
Trading Program.\28\
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    \27\ 76 FR 48208, 48213 (August 8, 2011).
    \28\ 40 CFR 52.38(a)(2), (b)(2); Sec.  52.39(c); Sec.  52.54(a), 
(b); Sec.  52.55.
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    On October 26, 2015, Alabama submitted to EPA a SIP revision 
including provisions that, if all portions were approved, would 
incorporate into Alabama's SIP CSAPR state trading program regulations 
that would replace the CSAPR federal trading program regulations with 
regard to Alabama units' SO2, annual NOX, and 
ozone-season NOX emissions for control periods in 2017 and 
later years. The SIP submittal includes three sets of duly adopted 
state rules: ADEM Administrative Code rules 335-3-5-.06 through 335-3-
5-.36, which establish Alabama's ``TR SO2 Group 2 Trading 
Program''; rules 335-3-8-.07 through 335-3-8-.38, which establish 
Alabama's ``TR NOX Annual Trading Program''; and rules 335-
3-8-.39 through 335-3-8-.70, which establish Alabama's ``TR 
NOX Ozone Season Trading Program''.\29\ In general, each 
individual rule in Alabama's three sets of CSAPR state trading program 
rules is designed to replace one individual section (or in a few cases 
two or three sections) of the corresponding federal trading program 
regulations, and each set of rules is designed to collectively replace 
all sections of the corresponding federal trading program regulations. 
For example, Alabama rule 335-3-5-.06 is designed to replace 40 CFR 
97.401 through 97.403, while Alabama rules 335-3-5-.06 through 335-3-
5-.36 are designed to collectively replace all of subpart AAAAA of 40 
CFR part 97 (i.e., 40 CFR 97.401 through 97.435).
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    \29\ Consistent with the current CSAPR regulatory text, 
Alabama's rules use the terms ``Transport Rule'' and ``TR'' instead 
of the updated terms ``Cross-State Air Pollution Rule'' and 
``CSAPR''. For simplicity, EPA uses the updated terms here except 
where otherwise noted.
---------------------------------------------------------------------------

    With regard to form, some of the individual rules for each Alabama 
CSAPR state trading program are set forth as full regulatory text--
notably the rules addressing program applicability, emissions budgets 
and variability limits, and allowance allocations--but most of the 
rules incorporate the corresponding federal trading program section or 
sections by reference. Several of the Alabama rules adopt cross-
references to other Alabama rules in place of cross-references to 
specific federal trading program sections that would be replaced by 
those other Alabama rules.
    With regard to substance, the rules for each Alabama CSAPR state 
trading program differ from the corresponding CSAPR federal trading 
program regulations in three main ways. First, the applicability 
provisions in the Alabama rules require participation in Alabama's 
CSAPR state trading programs only for units in Alabama, not for units 
in any other state or in Indian country within the borders of Alabama 
or any other state. Second, the Alabama rules set forth a methodology 
for allocating emission allowances among Alabama units that differs 
from the default allowance allocation provisions in the federal trading 
program regulations. Finally, the Alabama rules omit a number of 
federal trading program provisions not applicable to Alabama's state 
trading programs, including provisions setting forth the amounts of 
emissions budgets, NUSAs, Indian country NUSAs, and variability limits 
for other states; provisions addressing EPA's procedures for allocating 
allowances from Indian country NUSAs; and provisions addressing EPA's 
recordation of certain allowance allocations.

[[Page 41919]]

    The Alabama SIP adopts the Phase 2 annual NOX and 
SO2 budgets found at 40 CFR 97.410(a)(1)(iv) and 
97.710(a)(1)(iv), respectively. Although the court in EME Homer City 
remanded Alabama's Phase 2 SO2 budget because it determined 
that EPA required more emissions reductions than necessary to address 
the downwind air quality problems to which Alabama contributes, Alabama 
is voluntarily adopting a Phase 2 SO2 budget that is 
equivalent to the federally-developed budget remanded by the court. 
Nothing in the court's decision affects Alabama's authority to seek 
incorporation into its SIP of a state-established budget as stringent 
as the remanded federally-established budget or limits EPA's authority 
to approve such a SIP revision. See 42 U.S.C. 7416, 7410(k)(3). 
Accordingly, EPA will evaluate the approvability of the Alabama SIP 
submission consistent with this budget.
    The SIP revision was submitted to EPA by a letter from the Director 
of the Alabama Department of Environmental Management. The letter and 
its enclosures describe steps taken by Alabama to provide public notice 
prior to adoption of the state rules.
    At this time, EPA is proposing to take action on the portions of 
Alabama's SIP submittal designed to replace the federal CSAPR 
NOX Annual Trading Program and the federal CSAPR 
SO2 Group 2 Trading Program with regard to Alabama units. 
EPA is not proposing to take action at this time on the portion of the 
SIP submittal designed to replace the federal CSAPR NOX 
Ozone Season Trading Program with regard to Alabama units. As noted in 
section II above, EPA has proposed to update CSAPR to address Eastern 
states' interstate air pollution mitigation obligations with regard to 
the 2008 ozone NAAQS. The proposal would further reduce the ozone-
season NOX emissions budgets for control periods in 2017 and 
later years for a number of states, including Alabama.\30\ Action on 
the portion of Alabama's SIP submittal related to ozone-season 
NOX emissions would be premature while the proposed update 
is pending because there is a foreseeable potential conflict between 
the total amount of allowances that would be allocated to Alabama units 
under Alabama's state trading program, which reflects Alabama's current 
ozone-season NOX budget, and the total amount of allowances 
that could permissibly be allocated to the units under a final updated 
budget.
---------------------------------------------------------------------------

    \30\ Alabama's current Phase 2 emissions budget under the CSAPR 
NOX Ozone Season Trading Program is 31,499 tons. 40 CFR 
97.510(a)(1)(iv). Alabama's proposed updated CSAPR emissions budget 
for ozone season NOX emissions is 9,979 tons. 80 FR at 
75770.
---------------------------------------------------------------------------

    EPA has previously approved a separate Alabama SIP revision 
replacing the default allowance allocation provisions of the CSAPR 
NOX Annual Trading Program, the CSAPR NOX Ozone 
Season Trading Program, and the CSAPR SO2 Group 2 Trading 
Program for Alabama existing units for the control period in 2016.\31\
---------------------------------------------------------------------------

    \31\ 80 FR 52272 (September 22, 2015).
---------------------------------------------------------------------------

B. EPA's Analysis of Alabama's Submittal

    As described in section IV.A above, at this time EPA is taking 
action on the portions of Alabama's SIP submittal designed to replace 
the federal CSAPR NOX Annual Trading Program and the federal 
CSAPR SO2 Group 2 Trading Program for Alabama units but not 
the portion of the SIP submittal designed to replace the federal CSAPR 
NOX Ozone Season Trading Program. The analysis discussed in 
this section addresses only the portions of Alabama's SIP submittal on 
which EPA is taking action at this time. For simplicity, throughout 
this section EPA refers to the portions of the submittal on which EPA 
is proposing to take action as ``the submittal'' or ``the SIP 
revision'' without repeating the qualification that at this time EPA is 
analyzing and proposing to act on only portions of the SIP submittal.
1. Timeliness and Completeness of SIP Submittal
    Alabama's SIP revision seeks in part to replace the default 
allowance allocation provisions in the CSAPR federal trading program 
regulations for annual NOX and SO2 emissions as 
applied to Alabama units with state regulations establishing a 
different state-determined methodology, starting with the control 
periods in 2017. Under 40 CFR 52.38(a)(5)(i)(B) and 52.39(h)(1)(ii), 
the deadline for submission of state-determined allowance allocations 
for the 2017 and 2018 control periods is June 1, 2016, which under 
Sec. Sec.  52.38(a)(5)(vi) and 52.39(i)(6) makes December 1, 2015, the 
deadline for submission to EPA of a complete SIP revision establishing 
state-determined allocations for those control periods. Alabama 
submitted its SIP revision to EPA on October 26, 2015, and EPA has 
determined that the submittal complies with the applicable minimum 
completeness criteria in section 2.1 of appendix V to 40 CFR part 51. 
Because Alabama's SIP revision was timely submitted and meets the 
applicable completeness criteria, it meets the conditions under 40 CFR 
52.38(a)(5)(vi) and 52.39(i)(6) for timely submission of a complete SIP 
revision.
2. Methodology Covering All Allowances Potentially Requiring Allocation
    Paragraphs 335-3-8-.14(1) and 335-3-5-.13(1) of the Alabama rules 
set forth total amounts of 71,962 CSAPR Annual NOX 
allowances and 213,258 CSAPR SO2 Group 2 allowances, 
respectively, that would be allocated to Alabama units for each control 
period in 2017 and later years according to the allocation procedures 
set forth under the remaining paragraphs of Alabama rules 335-3-8-.14 
and 335-3-5-.13 (Paragraphs 335-3-8-.13(1) and 335-3-5-.12(1) set forth 
the same amounts as the respective state emissions budgets, in 
conjunction with the corresponding variability limits). These totals 
match the amounts of the respective Phase 2 emissions budgets for 
Alabama established under the federal trading program regulations for 
annual NOX and SO2 emissions, thereby addressing 
the full quantities of allowances that could be allocated to Alabama 
units under the default allocation provisions for the federal trading 
programs.\32\ As noted earlier, although the Phase 2 SO2 
emissions budget was remanded because the court in EME Homer City 
determined that the budget was too stringent, nothing in the court's 
decision affects Alabama's authority to seek incorporation into its SIP 
of a state-established budget as stringent as the remanded federally-
established budget or limits EPA's authority to approve such a SIP 
revision. See 42 U.S.C. 7416, 7410(k)(3). Because the current CSAPR 
federal trading program regulations for annual NOX and 
SO2 emissions do not provide for portions of Alabama's 
overall emissions budgets to be allocated pursuant to the Indian 
country NUSA allocation procedures, there is no current need for the 
Alabama rules establishing CSAPR state trading programs for annual 
NOX and SO2 emissions to include provisions 
addressing the disposition of otherwise unallocated allowances from an 
Indian country NUSA that might be made available by EPA for state 
allocation.\33\ The allocation provisions in the Alabama rules 
therefore enable Alabama's SIP revision to meet the

[[Page 41920]]

condition under 40 CFR 52.38(a)(5)(i) and 52.39(i)(1) that the state's 
allocation or auction methodology must cover all allowances potentially 
requiring allocation by the state.
---------------------------------------------------------------------------

    \32\ 40 CFR 97.410(a)(1)(iv); Sec.  97.710(a)(1)(iv).
    \33\ Since promulgating the current CSAPR regulations, EPA has 
learned of Indian country within Alabama's borders. If any units 
were to locate in that area of Indian country in the future, EPA 
would determine at that time what actions, if any, should be taken 
to make CSAPR NOX Annual allowances and CSAPR 
SO2 Group 2 allowances available for allocation to those 
units.
---------------------------------------------------------------------------

3. Assurance That Total Allocations Will Not Exceed the State Budget
    As discussed in section IV.B.2 above, paragraphs 335-3-8-.14(1) and 
335-3-5-.13(1) of the Alabama rules set forth the total amounts of 
CSAPR Annual NOX allowances and CSAPR SO2 Group 2 
allowances to be allocated to Alabama units for each control period 
under the state trading programs; these total amounts equal the amounts 
of the respective annual NOX and SO2 emissions 
budgets established for Alabama units under the CSAPR federal trading 
program regulations; and under the current CSAPR federal trading 
program regulations for annual NOX and SO2 there 
is no possibility of additional allowances from an Indian country NUSA 
being allocated to Alabama units. EPA has not yet allocated or recorded 
CSAPR allowances for the control periods in 2017 or later years. The 
allocation methodology in Alabama's SIP revision therefore meets the 
condition under 40 CFR 52.38(a)(5)(i)(A) and 52.39(i)(1)(i) that, for 
each trading program, the total amount of allowances allocated under 
the SIP revision (before the addition of any otherwise unallocated 
allowances from an Indian country NUSA) may not exceed the state's 
budget for the control period less the amount of the Indian country 
NUSA for the state and any allowances already allocated and recorded by 
EPA.
4. Timely Submission of State-Determined Allocations to EPA
    Paragraphs 335-3-8-.14(2)(a) through (d) and 335-3-5-.13(2)(a) 
through (d) of the Alabama rules provide for all allowance allocations 
to Alabama units established under the Alabama rules to be submitted to 
EPA by the following deadlines: allocations for the control periods in 
2017 and 2018, by June 1, 2016; allocations for the control periods in 
2019 and 2020, by June 1, 2017; allocations for the control periods in 
2021 and 2022, by June 1, 2018; and allocations for later control 
periods, by June 1 of the fourth or fifth year before the year of the 
control period. These submission deadlines match or precede the 
submission deadlines discussed in section III above (specifically, the 
deadlines under 40 CFR 52.38(a)(5)(i)(B) and 52.39(i)(1)(ii) for 
allocations to units considered existing units for CSAPR purposes and 
the submission deadlines under Sec. Sec.  52.38(a)(5)(i)(C) and 
52.39(i)(1)(iii) for allocations to other units). Alabama's SIP 
revision therefore meets the conditions under 40 CFR 52.38(a)(5)(i)(B) 
and (C) and 52.39(i)(1)(ii) and (iii) requiring that the SIP revision 
provide for submission of state-determined allowance allocations to EPA 
by the deadlines specified in those provisions.
5. No Changes to Allocations Already Submitted to EPA or Recorded
    The Alabama rules include no provisions allowing alteration of 
allocations after the allocation amounts have been provided to EPA and 
no provisions allowing alteration of any allocations made and recorded 
by EPA under the federal trading program regulations, thereby meeting 
the condition under 40 CFR 52.38(a)(5)(i)(D) and 52.39(i)(1)(iv).
6. No Other Substantive Changes to Federal Trading Program Provisions
    With the exception of the provisions addressing allowance 
allocations discussed above, the Alabama state trading program rules 
generally incorporate sections of the corresponding federal trading 
program regulations by reference or set forth full text that is very 
similar to the text in the corresponding federal trading program 
regulations.\34\ Some of the differences between the Alabama rules and 
the corresponding federal trading program regulations are clearly non-
substantive. For example, in instances where an Alabama rule contains 
full text substituting for the text of a section of the federal trading 
program regulations, the remaining Alabama rules adopt cross-references 
to the full-text Alabama rule in place of cross-references to the 
section of the federal trading program regulations that would be 
replaced by the full-text Alabama rule. The Alabama rules also contain 
definitions for certain terms used in the state trading programs' 
allocation provisions that are not used in the federal trading program 
regulations, as expressly permitted under the CSAPR regulations.\35\ 
Most of the remaining differences between the Alabama rules and the 
corresponding sections of the federal trading program regulations 
consist of non-substantive renumbering of the provisions.\36\
---------------------------------------------------------------------------

    \34\ EPA has proposed to make certain technical corrections to 
the CSAPR FIP and federal trading program regulations in order to 
more accurately reflect EPA's intent as described in the CSAPR 
rulemaking and has also proposed to replace ``TR'' with ``CSAPR'' 
throughout the regulations (for example, ``TR NOX Annual 
unit'' would become ``CSAPR NOX Annual unit''). See 80 FR 
75706, 75758. Because the proposed technical corrections merely 
clarify and do not change EPA's interpretations, where the proposed 
corrections would apply to a provision incorporated by reference in 
the Alabama rules, EPA would interpret the Alabama rules as 
reflecting the corrections. Further, EPA anticipates that if the 
proposed nomenclature updates are finalized, the final CSAPR federal 
regulations would explicitly provide that terms that include 
``CSAPR'' encompass otherwise identical terms in approved SIP 
revisions that include ``TR''.
    \35\ 40 CFR 52.38(a)(5)(ii); Sec.  52.39(i)(2).
    \36\ Instances where Alabama's CSAPR state trading program rules 
omit provisions of the CSAPR federal trading program regulations are 
discussed in sections IV.B.7 and 9 below.
---------------------------------------------------------------------------

    In addition to the clearly non-substantive or expressly authorized 
differences summarized above, a few of Alabama's rules contain other 
differences from the federal trading program regulations. In each case, 
EPA has determined that the changes do not represent substantive 
changes to the federal trading program regulations. First, paragraphs 
335-3-8-.08(1)(c), 335-3-8-.09(1)(a), 335-3-8-.34(2)(a), 335-3-
5-.07(1)(c), 335-3-5-.08(1)(a), and 335-3-5-.32(2)(a) of the Alabama 
rules require Alabama units to submit certain petitions, statements, 
and notices not only to EPA but also to the Alabama Department of 
Environmental Management. Because the additional notification 
requirements do not alter the respective authorities or 
responsibilities of EPA and the Department, EPA considers the 
requirements to be non-substantive changes.
    Second, paragraphs 335-3-8-.20(2)(a), 335-3-8-.23(2)(a), 335-3-
5-.18(2)(a), and 335-3-5-.21(2)(a) of the Alabama rules provide that, 
like EPA, the Department will not adjudicate certain private legal 
disputes. Because the Department is not required to adjudicate such 
disputes under the federal trading program regulations in any event, 
these additions to the text of the state trading program rules merely 
clarify that the Department is not undertaking a new adjudication 
responsibility under the state trading programs. EPA therefore 
considers these additions to be non-substantive changes.
    Third, paragraph 335-3-8-.07(2)(b)8. of the Alabama CSAPR state 
trading program rules for annual NOX emissions substitutes a 
reference to Alabama rule 335-3-16-.01 (an Alabama air permit program 
rule) for a reference to 40 CFR 70.2 (the definitions section of the 
federal regulations governing state operating permit programs under CAA 
title V) in the corresponding CSAPR federal trading program definition 
of ``permitting authority.'' \37\ Although substitutions to definitions 
in the CSAPR federal trading program regulations generally are not 
permissible

[[Page 41921]]

in a CSAPR-related SIP revision, in this case the substitution has no 
substantive effect, for two reasons. First, the state trading program 
rule, like the CSAPR federal trading program definition, includes a 
reference to the definition of ``permitting authority'' in 40 CFR 71.2 
(the definitions section of the federal operating permit program under 
CAA title V) which encompasses the definition of ``permitting 
authority'' in Sec.  70.2, so all the intended possible meanings of 
``permitting authority'' are captured in the state trading program 
rules despite the loss of the reference to 40 CFR 70.2. Second, Alabama 
rule 335-3-16-.01 contains no definition of ``permitting authority,'' 
so the substitution does not introduce any new, unintended meanings of 
``permitting authority'' in the state trading program rules. EPA 
therefore considers the substitution to be a non-substantive change.
---------------------------------------------------------------------------

    \37\ Alabama's CSAPR state trading program rules for 
SO2 emissions do not contain a comparable substitution 
provision.
---------------------------------------------------------------------------

    Finally, paragraphs 335-3-8-.10(2)(a) and (b) and 335-3-5-.09(2)(a) 
and (b) of the Alabama rules substitute references to Alabama rule 
335.3.16-.13(3) (the Alabama rule addressing minor permit modification 
procedures) for references to 40 CFR 70.7(e)(2) (the minor permit 
modification procedures section of the federal regulations governing 
state operating permit programs under CAA title V) in the federal 
trading program regulations regarding title V permit requirements. As 
applied to Alabama units only, the substituted Alabama rule provisions 
are substantively identical to the provisions in 40 CFR 70.7(e)(2) that 
would be replaced. Because in the context of Alabama's CSAPR state 
trading programs these particular provisions need to address only 
Alabama units and not units from other states participating in the 
CSAPR trading programs, EPA determines that these substitutions have no 
substantive effect.
    For the reasons discussed above, EPA has determined that none of 
the textual additions or substitutions made to the CSAPR federal 
trading program regulations in Alabama's corresponding CSAPR state 
trading program rules are substantive, and that Alabama's SIP revision 
therefore meets the conditions under 40 CFR 52.38(a)(5) and 52.39(i) of 
making no substantive changes to the provisions of the federal trading 
program regulations beyond the provisions addressing allowance 
allocations.
7. Complete, Substantively Identical Trading Program Provisions
    With the following exceptions, the Alabama rules comprising 
Alabama's CSAPR state trading program for annual NOX 
emissions either incorporate by reference or adopt full-text 
replacements for all of the provisions of 40 CFR 97.402 through 97.435, 
and the Alabama rules comprising Alabama's CSAPR state trading program 
for SO2 emissions either incorporate by reference or adopt 
full-text replacements for all of the provisions of 40 CFR 97.702 
through 97.735. The first exception is that Alabama rules 335-3-8-.13 
and 335-3-5-.12, which generally address the amounts of emissions 
budgets and related quantities, omit the provisions of 40 CFR 97.410 
and 97.710 setting forth the amounts of the Phase 1 emissions budgets, 
NUSAs, and variability limits for Alabama; the amounts of the Phase 2 
NUSAs for Alabama; and the amounts of all emissions budgets, NUSAs, 
Indian country NUSAs, and variability limits for other states. Omission 
of the Alabama Phase 1 emissions budget and NUSA amounts is appropriate 
because Alabama's state trading programs do not apply to emissions 
occurring in Phase 1 of CSAPR. Omission of the default Alabama NUSA 
amounts under the federal trading program regulations is appropriate 
because the allocation procedures under Alabama's state trading 
programs establish NUSA amounts differently. Omission of the budget, 
NUSA, Indian country NUSA, and variability limit provisions for other 
states from state trading programs in which only Alabama units 
participate does not undermine the completeness of the state trading 
programs.
    The second exception is that Alabama rules 335-3-8-.14 and 335-3-
5-.13, generally addressing allowance allocations, omit 40 CFR 
97.411(b)(2) and 97.412(b) and 97.711(b)(2) and 97.712(b), concerning 
EPA's administration of Indian country NUSAs. Omission of these 
provisions from Alabama's state trading program rules is required, as 
discussed in section IV.B.9 below.
    The third exception is that Alabama rules 335-3-8-.24 and 335-3-
5-.22, which generally incorporate by reference the federal trading 
programs' recordation schedule provisions, exclude from incorporation 
by reference 40 CFR 97.421(a), (b), (h), and (i) and 97.721(a), (b), 
(h), and (i), respectively, concerning EPA's schedule for recording 
certain allowance allocations. The federal trading program provisions 
at Sec. Sec.  97.421(a) and (b) and 97.721(a) and (b), which address 
recordation of allocations to units considered existing units for CSAPR 
purposes of allowances for the compliance periods in 2015 and 2016, do 
not need to be included in Alabama's state trading program rules 
because those allocations have already been recorded. The federal 
trading program provisions at Sec. Sec.  97.421(h) and 97.721(h), which 
address recordation of allocations from Indian country NUSAs, are 
appropriately excluded from state trading programs because a state may 
not administer an Indian country NUSA. The federal trading program 
provisions at Sec. Sec.  97.421(i) and 97.721(i), which address 
recordation of second-round NUSA allocations, are not needed in 
Alabama's state trading program rules because Alabama would provide EPA 
the amounts of its NUSA allocations on the earlier schedule applicable 
to allocations to units considered existing units for CSAPR 
purposes.\38\ Omission of these provisions from Alabama's state trading 
programs therefore does not undermine the completeness of the state 
trading programs.
---------------------------------------------------------------------------

    \38\ For the same reason, Alabama's state rules could 
permissibly omit 40 CFR 97.421(g) and 97.721(g), which address 
recordation of first-round NUSA allocations. Note that 
notwithstanding the lack of provisions addressing recordation of 
NUSA allocations in Alabama's state trading program rules, EPA would 
retain authority to complete the recordation of 2016 NUSA 
allocations to Alabama units because EPA has already started 
recording allocations to Alabama units of allowances for the 
compliance periods in 2016. See 40 CFR 52.38(a)(7); Sec.  52.39(k).
---------------------------------------------------------------------------

    Because none of the omissions undermines the completeness of the 
Alabama's state trading programs and because, as discussed in section 
IV.B.6 above, EPA has determined that Alabama's SIP revision makes no 
other substantive changes to the provisions of the federal trading 
program regulations beyond the provisions addressing allowance 
allocations, Alabama's SIP revision meets the condition under 40 CFR 
52.38(a)(5) and 52.39(i) that the SIP revision must adopt complete 
state trading program regulations substantively identical to the 
complete federal trading program regulations at 40 CFR 97.402 through 
97.435, 97.502 through 97.535, 97.602 through 97.635, or 97.702 through 
97.735, as applicable, except for permissible differences in allowance 
allocation and/or applicability provisions.
8. Only Non-Substantive Substitutions for the Term ``State''
    Paragraphs 335-3-8-.08(1)(a)1. and 335-3-5-.07(1)(a)1. of the 
Alabama rules substitute the term ``the State of Alabama'', and 
paragraphs 335-3-8-.08(1)(b) and 335-3-5-.07(1)(b) of the Alabama rules 
similarly substitute the term ``the State'' (meaning Alabama), for the 
phrase ``a State (or Indian country within the borders of such State)'' 
in the corresponding federal trading program regulations at 40 CFR 
97.410(a)(1) and 97.710(a)(1) and at Sec. Sec.  97.410(b) and

[[Page 41922]]

97.710(b), respectively. These provisions of the Alabama rules define 
the units that are required to participate in Alabama's CSAPR state 
trading programs. The substitutions appropriately exclude units located 
in other states and units located in Indian country with the borders of 
Alabama or any other state, thereby limiting the applicability of 
Alabama's state trading programs to units that are subject to Alabama's 
jurisdiction. These substitutions do not substantively change the 
provisions of CSAPR's federal trading program regulations. The 
remaining Alabama rules do not substitute for the term ``State'' as 
used in the federal trading program regulations. Alabama's SIP revision 
therefore meets the condition under 40 CFR 52.38(a)(5)(iii) and 
52.39(i)(3) that the SIP revision may substitute the name of the state 
for the term ``State'' as used in the federal trading program 
regulations, but only to the extent that EPA determines that the 
substitutions do not substantively change the provisions of the federal 
trading program regulations.
9. Exclusion of Provisions Addressing Units in Indian Country
    The Alabama rules do not set forth any full text provisions 
directly addressing units in Indian country within the state's borders. 
As discussed in section IV.B.8 above, paragraphs 335-3-8-.08(1)(a)1. 
and 335-3-5-.07(1)(a)1. of the Alabama rules define the units required 
to participate in Alabama's state trading programs in a manner that 
appropriately excludes units located in Indian country within Alabama's 
borders from coverage under Alabama's CSAPR state trading programs. 
Although various other provisions of the CSAPR federal trading program 
regulations incorporated by reference into the Alabama rules without 
modification refer to units in Indian country, the clear exclusion of 
any such units from coverage under the state trading program 
applicability provisions--in other words, the fact that such units are 
not ``TR NOX Annual units'' or ``TR SO2 Group 2 
units'' for purposes of the state trading programs--renders the 
remaining provisions of Alabama's state trading program rules 
inoperative as to the units. EPA therefore interprets the Alabama rules 
as not imposing any requirements on units located in Indian country 
within the state's borders.
    As discussed in section IV.B.7 above, Alabama rules 335-3-8-.14 and 
335-3-5-.13, which address allowance allocations under the state 
trading programs, contain no provisions replacing 40 CFR 97.411(b)(2), 
97.412(b), 97.711(b)(2), or 97.712(b), the portions of the 
corresponding federal trading program regulations governing allocations 
of allowances from Indian country NUSAs Thus, the Alabama rules do not 
include any express state rule provisions concerning administration of 
Indian country NUSAs. Further, Alabama rules 335-3-8-.24 and 335-3-
5-.22, which generally incorporate by reference the federal trading 
programs' recordation schedule provisions, exclude 40 CFR 97.421(h) and 
97.721(h), respectively, provisions addressing recordation of Indian 
country NUSA allocations. EPA notes that paragraphs 335-3-8-.14(3)(i) 
and 335-3-5-.13(3)(i) of the Alabama rules, which incorporate by 
reference the federal trading program regulations generally addressing 
corrections of incorrect allocations, fail to exclude 40 CFR 
97.411(c)(5)(iii) and 97.711(c)(5)(iii), addressing corrections of 
certain incorrect Indian country NUSA allocations. However, the 
regulations governing approval of CSAPR-related SIP revisions do not 
expressly require exclusion of these federal trading program provisions 
(unlike the Indian country NUSA allocation provisions) and, further, 
the provisions are inoperative as to Alabama because the CSAPR federal 
trading program regulations do not currently establish Indian country 
NUSAs for Alabama.\39\ EPA therefore interprets the Alabama state rules 
as sufficiently excluding provisions addressing administration of the 
Indian country NUSA provisions under the federal trading programs.
---------------------------------------------------------------------------

    \39\ Since promulgating the current CSAPR regulations, EPA has 
learned of Indian country within Alabama's borders. If any units 
were to locate in that area of Indian country in the future, EPA 
would determine at that time what actions, if any, should be taken 
to make CSAPR NOX Annual allowances and CSAPR 
SO2 Group 2 allowances available for allocation to those 
units.
---------------------------------------------------------------------------

    In summary, EPA has determined that Alabama's SIP revision 
adequately meets the condition under 40 CFR 52.38(a)(5)(iv) and 
52.39(i)(4) of not including references to or imposing requirements on 
any unit in any Indian country within the state's borders and not 
including the federal trading program provisions governing allocation 
of allowances from any Indian country NUSA for the state.

V. EPA's Proposed Action on Alabama's Submittal

    EPA is proposing to approve the portions of Alabama's October 26, 
2015, SIP submittal concerning the establishment for Alabama units of 
CSAPR state trading programs for annual NOX and 
SO2 emissions for compliance periods in 2017 and later 
years. The proposed revision would adopt into the SIP the state trading 
program rules codified in ADEM Administrative Code rules 335-3-8-.07 
through 335-3-8-.38 (establishing Alabama's ``TR NOX Annual 
Trading Program'') and 335-3-5-.06 through 335-3-5-.36 (establishing 
Alabama's ``TR SO2 Group 2 Trading Program'').\40\ These 
Alabama CSAPR state trading programs would be integrated with the 
federal CSAPR NOX Annual Trading Program and the federal 
CSAPR SO2 Group 2 Trading Program, respectively, and would 
be substantively identical to the federal trading programs except with 
regard to the allowance allocation provisions. Following approval of 
these portions of the proposed SIP revision, Alabama units therefore 
would generally be required to meet requirements under Alabama's CSAPR 
state trading programs equivalent to the requirements the units 
otherwise would have been required to meet under the corresponding 
CSAPR federal trading programs, but allocations to Alabama units of 
CSAPR NOX Annual allowances for compliance periods in 2017 
and later years would be determined according to the SIP's allocation 
provisions at Alabama rule 335-3-8-.14 instead of EPA's default 
allocation provisions at 40 CFR 97.411(a), 97.411(b)(1), and 97.412(a), 
and allocations to Alabama units of CSAPR SO2 Group 2 
allowances would be determined according to the SIP's allocation 
provisions at Alabama rule 335-3-5-.13 instead of EPA's default 
allocation provisions at 40 CFR 97.711(a), 97.711(b)(1), and 97.712(a). 
EPA is proposing to approve these portions of the SIP revision because 
they meet the requirements of the CAA and EPA's regulations for 
approval of a CSAPR full SIP revision replacing a federal trading 
program with a state trading program that is integrated with and 
substantively identical to the federal trading program except for 
permissible differences with respect to emission allowance allocation 
provisions, as discussed in section IV above.
---------------------------------------------------------------------------

    \40\ Consistent with the current CSAPR regulatory text, the 
Alabama rules use the terms ``Transport Rule'' and ``TR'' instead of 
the updated terms ``Cross-State Air Pollution Rule'' and ``CSAPR''.
---------------------------------------------------------------------------

    EPA promulgated the FIPs requiring Alabama units to participate in 
the federal CSAPR NOX Annual Trading Program and the federal 
CSAPR SO2 Group 2 Trading Program in order to address 
Alabama's obligations under CAA section 110(a)(2)(D)(i)(I) with

[[Page 41923]]

respect to the 1997 and 2006 PM2.5 NAAQS in the absence of 
SIP provisions addressing those requirements. Approval of the portions 
of Alabama's SIP submittal adopting CSAPR state trading program rules 
for annual NOX and SO2 substantively identical to 
the corresponding CSAPR federal trading program regulations (or 
differing only with respect to the allowance allocation methodology) 
would correct the same deficiency in the SIP that otherwise would be 
corrected by those CSAPR FIPs. Under the CSAPR regulations, upon EPA's 
full and unconditional approval of a SIP revision as correcting the 
SIP's deficiency that is the basis for a particular CSAPR FIP, the 
obligation to participate in the corresponding CSAPR federal trading 
program is automatically eliminated for units subject to the state's 
jurisdiction (but not for any units located in any Indian country 
within the state's borders).\41\ The proposed approval of the portions 
of Alabama's SIP submittal establishing CSAPR state trading program 
rules for annual NOX and SO2 emissions therefore 
would result in automatic termination of the obligations of Alabama 
units to participate in the federal CSAPR NOX Annual Trading 
Program and the federal CSAPR SO2 Group 2 Trading Program. 
Approval of these portions of the SIP revision would therefore satisfy 
Alabama's obligation pursuant to CAA section 110(a)(2)(D)(i)(I) to 
prohibit emissions which will significantly contribute to nonattainment 
or interfere with maintenance of the 1997 and 2006 PM2.5 
NAAQS in any other state.
---------------------------------------------------------------------------

    \41\ 40 CFR 52.38(a)(6); Sec.  52.39(j); see also Sec.  
52.54(a)(1); Sec.  52.55(a).
---------------------------------------------------------------------------

    As noted in section II above, the Phase 2 SO2 budget 
established for Alabama in the CSAPR rulemaking has been remanded to 
EPA for reconsideration.\42\ If EPA finalizes approval of these 
portions of the SIP revision as proposed, Alabama will have fulfilled 
its obligations to provide a SIP that address the interstate transport 
provisions of CAA section 110(a)(2)(D)(i)(I) with respect to the 1997 
and 2006 PM2.5 NAAQS. Thus, EPA would no longer be under an 
obligation to (nor would EPA have the authority to) address those 
transport requirements through implementation of a FIP, and approval of 
these portions of the SIP revision would eliminate Alabama units' 
obligations to participate in the federal CSAPR NOX Annual 
Trading Program and the federal CSAPR SO2 Group 2 Trading 
Program. Elimination of Alabama units' obligations to participate in 
the federal trading programs would include elimination of the 
federally-established Phase 2 budgets capping allocations of CSAPR 
NOX Annual allowances and CSAPR SO2 Group 2 
allowances to Alabama units under those federal trading programs. As 
approval of these portions of the SIP revision would eliminate 
Alabama's remanded federally-established Phase 2 SO2 budget 
and eliminate EPA's authority to subject units in Alabama to a FIP, it 
is EPA's opinion that finalization of approval of this SIP action would 
address the judicial remand of Alabama's federally-established Phase 2 
SO2 budget.\43\ Large electricity generating units in 
Alabama are subject to an additional CSAPR FIP requiring them to 
participate in the federal CSAPR NOX Ozone Season Trading 
Program. While Alabama's SIP submittal also seeks to replace the CSAPR 
FIP requirements addressing Alabama units' ozone-season NOX 
emissions, EPA is not proposing to act on that portion of the SIP 
submittal at this time. Approval of this SIP revision concerning other 
CSAPR trading programs would have no effect on the CSAPR NOX 
Ozone Season Trading Program as applied to Alabama units, and the FIP 
requiring the units to participate in that program would remain in 
place.
---------------------------------------------------------------------------

    \42\ EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 138 
(D.C. Cir. 2015).
    \43\ Although the court in EME Homer City Generation remanded 
Alabama's Phase 2 SO2 budget because it determined that 
the budget was too stringent, nothing in the court's decision 
affects Alabama's authority to seek incorporation into its SIP of a 
state-established budget as stringent as the remanded federally-
established budget or limits EPA's authority to approve such a SIP 
revision. See 42 U.S.C. 7416, 7410(k)(3).
---------------------------------------------------------------------------

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submittal that complies with the provisions of the Act and applicable 
federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submittals, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
proposed action merely approves state law as meeting federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where EPA or an Indian tribe has demonstrated that a 
tribe has jurisdiction. In those areas of Indian country, the rule does 
not have tribal implications as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

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

    Authority:  42 U.S.C. 7401 et seq.

    Dated: June 10, 2016.
Heather McTeer Toney,
Regional Administrator, Region 4.
[FR Doc. 2016-15146 Filed 6-27-16; 8:45 am]
 BILLING CODE 6560-50-P



                                                      41914                    Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules

                                                      participation in SIP development by                     action merely approves state law as                      Dated: June 10, 2016.
                                                      local political subdivisions affected by                meeting Federal requirements and does                  Heather McTeer Toney,
                                                      the SIP. Consultation and participation                 not impose additional requirements                     Regional Administrator, Region 4.
                                                      by affected local entities is authorized                beyond those imposed by state law. For                 [FR Doc. 2016–15136 Filed 6–27–16; 8:45 am]
                                                      by the Georgia Air Quality Act: Article                 that reason, this proposed action:                     BILLING CODE 6560–50–P
                                                      1: Air Quality (O.C.G.A. 12–9–5(b)(17))                    • Is not a significant regulatory action
                                                      and the Georgia Rule for Air Quality                    subject to review by the Office of
                                                      391–3–1–.15, Transportation                             Management and Budget under                            ENVIRONMENTAL PROTECTION
                                                      Conformity, which defines the                           Executive Orders 12866 (58 FR 51735,                   AGENCY
                                                      consultation procedures for areas                       October 4, 1993) and 13563 (76 FR 3821,
                                                      subject to transportation conformity.                   January 21, 2011);                                     40 CFR Part 52
                                                      Furthermore, GAEPD has demonstrated                        • Does not impose an information
                                                                                                                                                                     [EPA–R04–OAR–2016–0294; FRL–9948–41–
                                                      consultation with, and participation by,                collection burden under the provisions                 Region 4]
                                                      affected local entities through its work                of the Paperwork Reduction Act (44
                                                      with local political subdivisions during                U.S.C. 3501 et seq.);                                  Air Plan Approval; Alabama; Cross-
                                                      the developing of its Transportation                       • Is certified as not having a                      State Air Pollution Rule
                                                      Conformity SIP and has worked with                      significant economic impact on a
                                                      the Federal Land Managers as a                          substantial number of small entities                   AGENCY:  Environmental Protection
                                                      requirement of the regional haze rule.                  under the Regulatory Flexibility Act (5                Agency (EPA).
                                                      EPA has made the preliminary                            U.S.C. 601 et seq.);                                   ACTION: Proposed rule.
                                                      determination that Georgia’s SIP and                       • Does not contain any unfunded
                                                                                                              mandate or significantly or uniquely                   SUMMARY:   The Environmental Protection
                                                      practices adequately demonstrate                                                                               Agency (EPA) is proposing to approve
                                                      consultation with affected local entities               affect small governments, as described
                                                                                                              in the Unfunded Mandates Reform Act                    portions of the October 26, 2015, State
                                                      related to the 2010 1-hour NO2 NAAQS                                                                           Implementation Plan (SIP) submittal
                                                      when necessary.                                         of 1995 (Pub. L. 104–4);
                                                                                                                 • Does not have Federalism                          from Alabama concerning the Cross-
                                                      V. Proposed Action                                      implications as specified in Executive                 State Air Pollution Rule (CSAPR).
                                                        With the exception of the                             Order 13132 (64 FR 43255, August 10,                   Under CSAPR, large electricity
                                                      preconstruction PSD permitting                          1999);                                                 generating units (EGUs) in Alabama are
                                                      requirements for major sources of                          • Is not an economically significant                subject to Federal Implementation Plans
                                                      section 110(a)(2)(C), prong 3 of                        regulatory action based on health or                   (FIPs) requiring the units to participate
                                                      (110(a)(2)D(i) and 110(a)(2)(J), and the                safety risks subject to Executive Order                in CSAPR’s federal trading program for
                                                      interstate transport provisions                         13045 (62 FR 19885, April 23, 1997);                   annual emissions of nitrogen oxides
                                                      pertaining to the contribution to                          • Is not a significant regulatory action            (NOX) and one of CSAPR’s two federal
                                                      nonattainment or interference with                      subject to Executive Order 13211 (66 FR                trading programs for annual emissions
                                                      maintenance in other states and                         28355, May 22, 2001);                                  of sulfur dioxide (SO2). This action
                                                      visibility of prongs 1, 2, and 4 of section                • Is not subject to requirements of                 would approve into Alabama’s SIP the
                                                      110(a)(2)(D)(i), EPA is proposing to                    Section 12(d) of the National                          state’s regulations requiring Alabama
                                                      approve that Georgia’s March 25, 2013,                  Technology Transfer and Advancement                    EGUs to participate in new CSAPR state
                                                      SIP submission for the 2010 1-hour NO2                  Act of 1995 (15 U.S.C. 272 note) because               trading programs for annual NOX and
                                                      NAAQS has met the above-described                       application of those requirements would                SO2 emissions integrated with the
                                                      infrastructure SIP requirements because                 be inconsistent with the CAA; and                      CSAPR federal trading programs,
                                                      these aspects of the submission are                        • Does not provide EPA with the                     replacing the corresponding FIP
                                                      consistent with section 110 of the CAA.                 discretionary authority to address, as                 requirements. These CSAPR state
                                                      This proposed action, however, does not                 appropriate, disproportionate human                    trading programs are substantively
                                                      include the preconstruction PSD                         health or environmental effects, using                 identical to the CSAPR federal trading
                                                      permitting requirements for major                       practicable and legally permissible                    programs except with regard to the
                                                      sources of section 110(a)(2)(C), prong 3                methods, under Executive Order 12898                   provisions allocating emission
                                                      of (D)(i), and (J), which have been                     (59 FR 7629, February 16, 1994).                       allowances among Alabama units. EPA
                                                      approved in a separate action, or the                      The SIP is not approved to apply on                 is proposing to approve the portions of
                                                      interstate transport provisions                         any Indian reservation land or in any                  the SIP revision concerning these
                                                      pertaining to the contribution to                       other area where EPA or an Indian tribe                CSAPR state trading programs because
                                                      nonattainment or interference with                      has demonstrated that a tribe has                      these portions of the SIP revision meet
                                                      maintenance in other states of prongs 1,                jurisdiction. In those areas of Indian                 the requirements of the Clean Air Act
                                                      2 and 4 of section 110(a)(2)(D)(i), which               country, the rule does not have tribal                 (CAA or Act) and EPA’s regulations for
                                                      will be addressed by EPA in a separate                  implications as specified by Executive                 approval of a CSAPR full SIP revision
                                                      action.                                                 Order 13175 (65 FR 67249, November 9,                  replacing the requirements of a CSAPR
                                                                                                              2000), nor will it impose substantial                  FIP. Under the CSAPR regulations,
                                                      VI. Statutory and Executive Order                       direct costs on tribal governments or                  approval of these portions of the SIP
                                                      Reviews                                                 preempt tribal law.                                    revision would automatically eliminate
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                                                        Under the CAA, the Administrator is                   List of Subjects in 40 CFR Part 52                     Alabama units’ obligations to participate
                                                      required to approve a SIP submission                                                                           in CSAPR’s federal trading programs for
                                                      that complies with the provisions of the                  Environmental protection, Air                        annual NOX and SO2 emissions under
                                                      Act and applicable Federal regulations.                 pollution control, Incorporation by                    the corresponding CSAPR FIPs
                                                      See 42 U.S.C. 7410(k); 40 CFR 52.02(a).                 reference, Intergovernmental relations,                addressing interstate transport
                                                      Thus, in reviewing SIP submissions,                     Nitrogen dioxide, Ozone, Reporting and                 requirements for the 1997 and 2006 Fine
                                                      EPA’s role is to approve state choices,                 recordkeeping requirements, Volatile                   Particulate Matter (PM2.5) national
                                                      provided that they meet the criteria of                 organic compounds.                                     ambient air quality standards (NAAQS).
                                                      the CAA. Accordingly, this proposed                       Authority: 42 U.S.C. 7401 et seq.                    Approval of these portions of the SIP


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                                                                               Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules                                                      41915

                                                      revision would satisfy Alabama’s good                     B. EPA’s Analysis of Alabama’s Submittal              identical to the federal trading program
                                                      neighbor obligation under the CAA to                      1. Timeliness and Completeness of SIP                 except for permissible differences with
                                                      prohibit emissions which will                                Submittal                                          respect to emission allowance allocation
                                                      significantly contribute to                               2. Methodology Covering All Allowances                provisions. Under the CSAPR
                                                                                                                   Potentially Requiring Allocation
                                                      nonattainment or interfere with                           3. Assurance That Total Allocations Will
                                                                                                                                                                      regulations, approval of these portions
                                                      maintenance of the 1997 and 2006 PM2.5                       Not Exceed the State Budget                        of the SIP revision would automatically
                                                      NAAQS in any other state. EPA is not                      4. Timely Submission of State-Determined              eliminate the obligations of units in
                                                      proposing to act at this time on the                         Allocations to EPA                                 Alabama (but not any units in Indian
                                                      portion of Alabama’s SIP submittal                        5. No Changes to Allocations Already                  country within Alabama’s borders) to
                                                      intended to replace Alabama units’                           Submitted to EPA or Recorded                       participate in CSAPR’s federal trading
                                                      obligations to participate in CSAPR’s                     6. No Other Substantive Changes to Federal            programs for annual NOX and SO2
                                                      federal trading program for ozone-                           Trading Program Provisions                         emissions under the corresponding
                                                      season NOX emissions under a separate                     7. Complete, Substantively Identical                  CSAPR FIPs. EPA proposes to find that
                                                                                                                   Trading Program Provisions                         approval of these portions of the SIP
                                                      CSAPR FIP.                                                8. Only Non-Substantive Substitutions for
                                                      DATES: Comments must be received on                          the Term ‘‘State’’
                                                                                                                                                                      revision would satisfy Alabama’s
                                                      or before July 28, 2016.                                  9. Exclusion of Provisions Addressing                 obligation pursuant to CAA section
                                                                                                                   Units in Indian Country                            110(a)(2)(D)(i)(I) to prohibit emissions
                                                      ADDRESSES: Submit your comments,
                                                                                                              V. EPA’s Proposed Action on Alabama’s                   which will significantly contribute to
                                                      identified by Docket ID No EPA–R04–
                                                                                                                   Submittal                                          nonattainment or interfere with
                                                      OAR–2016–0294 at http://
                                                                                                              VI. Statutory and Executive Order Reviews               maintenance of the 1997 and 2006 PM2.5
                                                      www.regulations.gov. Follow the online
                                                                                                                                                                      NAAQS in any other state.
                                                      instructions for submitting comments.                   I. Summary                                                 The Phase 2 SO2 budget established
                                                      Once submitted, comments cannot be                         EPA is proposing to approve the                      for Alabama in the CSAPR rulemaking
                                                      edited or removed from Regulations.gov.                 portions of the October 26, 2015, SIP                   has been remanded to EPA for
                                                      EPA may publish any comment received                    submittal from Alabama concerning                       reconsideration.3 If EPA finalizes
                                                      to its public docket. Do not submit                     CSAPR 1 trading programs for annual                     approval of these portions of the SIP
                                                      electronically any information you                      emissions of NOX and SO2. Large EGUs                    revision as proposed, Alabama will have
                                                      consider to be Confidential Business                    in Alabama are subject to CSAPR FIPs                    fulfilled its obligations to provide a SIP
                                                      Information (CBI) or other information                  that require the units to participate in                that address the interstate transport
                                                      whose disclosure is restricted by statute.              the federal CSAPR NOX Annual Trading                    provisions of CAA section
                                                      Multimedia submissions (audio, video,                   Program and the federal CSAPR SO2                       110(a)(2)(D)(i)(I) with respect to the
                                                      etc.) must be accompanied by a written                  Group 2 Trading Program.2 CSAPR also                    1997 and 2006 PM2.5 NAAQS. Thus,
                                                      comment. The written comment is                         provides a process for the submission                   EPA would no longer be under an
                                                      considered the official comment and                     and approval of SIP revisions to replace                obligation to (nor would EPA have the
                                                      should include discussion of all points                 the requirements of CSAPR FIPs with                     authority to) address those interstate
                                                      you wish to make. EPA will generally                    SIP requirements under which a state’s                  transport requirements through
                                                      not consider comments or comment                        units participate in CSAPR state trading                implementation of a FIP, and approval
                                                      contents located outside of the primary                 programs that are integrated with and,                  of these portions of the SIP revision
                                                      submission (i.e., on the Web, cloud, or                 with certain permissible exceptions,                    would eliminate Alabama units’
                                                      other file sharing system). For                         substantively identical to the CSAPR                    obligations to participate in the federal
                                                      additional submission methods, the full                 federal trading programs.                               CSAPR NOX Annual Trading Program
                                                      EPA public comment policy,                                 The portions of the SIP revision                     and the federal CSAPR SO2 Group 2
                                                      information about CBI or multimedia                     proposed for approval would                             Trading Program. Elimination of
                                                      submissions, and general guidance on                    incorporate into Alabama’s SIP state                    Alabama units’ obligations to participate
                                                      making effective comments, please visit                 trading program regulations for annual                  in the federal trading programs would
                                                      http://www2.epa.gov/dockets/                            NOX and SO2 emissions that would                        include elimination of the federally-
                                                      commenting-epa-dockets.                                 replace EPA’s federal trading program                   established Phase 2 budgets capping
                                                      FOR FURTHER INFORMATION CONTACT:                        regulations for those emissions for                     allocations of CSAPR NOX Annual
                                                      Steven Scofield, Air Regulatory                         Alabama units for control periods in                    allowances and CSAPR SO2 Group 2
                                                      Management Section, Air, Pesticides                     2017 and later years. EPA is proposing                  allowances to Alabama units under
                                                      and Toxics Management Division, U.S.                    to approve these portions of the SIP                    those federal trading programs. As
                                                      Environmental Protection Agency,                        revision because they meet the                          approval of these portions of the SIP
                                                      Region 4, 61 Forsyth Street SW.,                        requirements of the CAA and EPA’s                       revision would eliminate Alabama’s
                                                      Atlanta, Georgia 30303–8960. Mr.                        regulations for approval of a CSAPR full                remanded federally-established Phase 2
                                                      Scofield can be reached by telephone at                 SIP revision replacing a federal trading                SO2 budget and eliminate EPA’s
                                                      (404) 562–9034 or via electronic mail at                program with a state trading program                    authority to subject units in Alabama to
                                                      scofield.steve@epa.gov.                                 that is integrated with and substantively               a FIP, it is EPA’s opinion that
                                                      SUPPLEMENTARY INFORMATION:                                                                                      finalization of approval of this SIP
                                                        This section provides additional                         1 Federal Implementation Plans; Interstate
                                                                                                                                                                      action would address the judicial
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      information by addressing the                           Transport of Fine Particulate Matter and Ozone and      remand of Alabama’s federally-
                                                                                                              Correction of SIP Approvals, 76 FR 48208 (August
                                                      following:                                              8, 2011) (codified as amended at 40 CFR 52.38 and       established Phase 2 SO2 budget.4
                                                      I. Summary                                              52.39 and subparts AAAAA through DDDDD of 40
                                                      II. Background on CSAPR and CSAPR-                      CFR part 97).                                             3 EME Homer City Generation, L.P. v. EPA, 795
                                                                                                                 2 EPA has proposed to replace the terms              F.3d 118, 138 (D.C. Cir. 2015).
                                                            Related SIP Revisions
                                                                                                              ‘‘Transport Rule’’ and ‘‘TR’’ in the text of the Code     4 Although the court in EME Homer City
                                                      III. Conditions for Approval of CSAPR-                  of Federal Regulations with the updated terms           Generation remanded Alabama’s Phase 2 SO2
                                                            Related SIP Revisions                             ‘‘Cross-State Air Pollution Rule’’ and ‘‘CSAPR.’’ 80    budget because it determined that the budget was
                                                      IV. Alabama’s SIP Submittal and EPA’s                   FR 75706 and 75759 (December 3, 2015). Except           too stringent, nothing in the court’s decision affects
                                                            Analysis                                          where otherwise noted, EPA uses the updated terms       Alabama’s authority to seek incorporation into its
                                                         A. Alabama’s SIP Submittal                           here.                                                                                                Continued




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                                                      41916                    Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules

                                                         Large electricity generating units in                established four federal emissions                     the first alternative—an ‘‘abbreviated’’
                                                      Alabama are also subject to an                          trading programs: A program for annual                 SIP revision—a state may submit a SIP
                                                      additional CSAPR FIP requiring them to                  NOX emissions, a program for ozone-                    revision that upon approval replaces the
                                                      participate in the federal CSAPR NOX                    season NOX emissions, and two                          default allowance allocation and/or
                                                      Ozone Season Trading Program. While                     geographically separate programs for                   applicability provisions of a CSAPR
                                                      Alabama’s SIP submittal also seeks to                   annual SO2 emissions. CSAPR also                       federal trading program for the state.7
                                                      replace the requirements of the CSAPR                   established up to three FIPs applicable                Approval of an abbreviated SIP revision
                                                      FIP concerning Alabama units’ ozone-                    to the large electricity generating units              leaves the corresponding CSAPR FIP
                                                      season NOX emissions, EPA is not                        in each covered state. Each CSAPR FIP                  and all other provisions of the relevant
                                                      proposing to act on that portion of the                 requires a state’s units to participate in             federal trading program in place for the
                                                      SIP submittal at this time. Approval of                 one of the four CSAPR trading                          state’s units.
                                                      this SIP revision concerning other                      programs.                                                 Under the second alternative—a
                                                      CSAPR trading programs would have no                       CSAPR includes provisions under                     ‘‘full’’ SIP revision—a state may submit
                                                      effect on the CSAPR NOX Ozone Season                    which states may submit and EPA will                   a SIP revision that upon approval
                                                      Trading Program as applied to Alabama                   approve SIP revisions to modify or                     replaces a CSAPR federal trading
                                                      units, and the FIP requiring the units to               replace the CSAPR FIP requirements                     program for the state with a state trading
                                                      participate in that program would                       while allowing states to continue to                   program integrated with the federal
                                                      remain in place.                                        meet their transport-related obligations               trading program, so long as the state
                                                         Section II of this document                          using either CSAPR’s federal emissions                 trading program is substantively
                                                      summarizes relevant aspects of the                      trading programs or state emissions                    identical to the federal trading program
                                                      CSAPR federal trading programs and                      trading programs integrated with the                   or does not substantively differ from the
                                                      FIPs as well as the range of                            federal programs.5 Through such a SIP                  federal trading program except as
                                                      opportunities states have to submit SIP                 revision, a state may replace EPA’s                    discussed above with regard to the
                                                      revisions to modify or replace the FIP                  default provisions for allocating                      allowance allocation and/or
                                                      requirements while continuing to rely                   emission allowances among the state’s                  applicability provisions.8 For purposes
                                                      on CSAPR’s trading programs to address                  units, employing any state-selected                    of a full SIP revision, a state may either
                                                      the states’ obligations to mitigate                     methodology to allocate or auction the                 adopt state rules with complete trading
                                                      interstate air pollution. Section III                   allowances, subject to timing conditions               program language, incorporate the
                                                      describes the specific conditions for                   and limits on overall allowance                        federal trading program language into its
                                                      approval of such SIP revisions. Section                 quantities. In the case of CSAPR’s                     state rules by reference (with
                                                      IV contains EPA’s analysis of Alabama’s                 federal trading program for ozone-                     appropriate conforming changes), or
                                                      SIP submittal, and Section V sets forth                 season NOX emissions (or an integrated                 employ a combination of these
                                                      EPA’s proposed action on the submittal.                 state trading program), a state may also               approaches.
                                                      Section VI addresses required statutory                 expand trading program applicability to                   The CSAPR regulations identify
                                                      and Executive Order reviews.                            include certain smaller electricity                    several important consequences and
                                                                                                              generating units. If a state wants to                  limitations associated with approval of
                                                      II. Background on CSAPR and CSAPR-                      replace CSAPR FIP requirements with                    a full SIP revision. First, upon EPA’s
                                                      Related SIP Revisions                                   SIP requirements under which the                       approval of a full SIP revision as
                                                         EPA issued CSAPR in July 2011 to                     state’s units participate in a state trading           correcting the deficiency in the state’s
                                                      address the requirements of CAA                         program that is integrated with and                    SIP that was the basis for a particular
                                                      section 110(a)(2)(D)(i)(I) concerning                   identical to the federal trading program               CSAPR FIP, the obligation to participate
                                                      interstate transport of air pollution. As               even as to the allocation and                          in the corresponding CSAPR federal
                                                      amended, CSAPR requires 28 Eastern                      applicability provisions, the state may                trading program is automatically
                                                      states to limit their statewide emissions               submit a SIP revision for that purpose                 eliminated for units subject to the state’s
                                                      of SO2 and/or NOX in order to mitigate                  as well. However, no emissions budget                  jurisdiction without the need for a
                                                      transported air pollution unlawfully                    increases or other substantive changes                 separate EPA withdrawal action, so long
                                                      impacting other states’ ability to attain               to the trading program provisions are                  as EPA’s approval of the SIP is full and
                                                      or maintain three NAAQS: The 1997                       allowed. A state whose units are subject               unconditional.9 Second, approval of a
                                                      ozone NAAQS, the 1997 annual PM2.5                      to multiple CSAPR FIPs and federal                     full SIP revision does not terminate the
                                                      NAAQS, and the 2006 24-hour PM2.5                       trading programs may submit SIP                        obligation to participate in the
                                                      NAAQS. The CSAPR emissions                              revisions to modify or replace the                     corresponding CSAPR federal trading
                                                      limitations are defined in terms of                     requirements under either some or all of               program for any units located in any
                                                      maximum statewide ‘‘budgets’’ for                       those FIPs.                                            Indian country within the borders of the
                                                      emissions of annual SO2, annual NOX,                       States can submit two basic forms of                state, and if and when a unit is located
                                                      and/or ozone-season NOX by each                         CSAPR-related SIP revisions effective                  in Indian country within a state’s
                                                      covered state’s large EGUs. The CSAPR                   for emissions control periods in 2017 or               borders, EPA may modify the SIP
                                                      state budgets are implemented in two                    later years.6 Specific conditions for                  approval to exclude from the SIP, and
                                                      phases of generally increasing                          approval of each form of SIP revision                  include in the surviving CSAPR FIP
                                                      stringency, with the Phase 1 budgets                    are set forth in the CSAPR regulations,                instead, certain trading program
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                                                      applying to emissions in 2015 and 2016                  as described in section III below. Under               provisions that apply jointly to units in
                                                      and the Phase 2 budgets applying to                                                                            the state and to units in Indian country
                                                      emissions in 2017 and later years. As a                    5 See 40 CFR 52.38, 52.39. States also retain the
                                                                                                                                                                     within the state’s borders.10 Finally, if at
                                                                                                              ability to submit SIP revisions to meet their          the time a full SIP revision is approved
                                                      mechanism for achieving compliance                      transport-related obligations using mechanisms
                                                      with the emissions limitations, CSAPR                   other than the CSAPR federal trading programs or
                                                                                                                                                                       7 § 52.38(a)(4), (b)(4); § 52.39(e), (h).
                                                                                                              integrated state trading programs.
                                                                                                                                                                       8 § 52.38(a)(5), (b)(5); § 52.39(f), (i).
                                                      SIP of a state-established budget as stringent as the      6 CSAPR also provides for a third, more
                                                                                                                                                                       9 § 52.38(a)(6), (b)(6); § 52.39(j).
                                                      remanded federally-established budget or limits         streamlined form of SIP revision that is effective
                                                      EPA’s authority to approve such a SIP revision. See     only for control periods in 2016 and is not relevant     10 § 52.38(a)(5)(iv) and (v), (a)(6), (b)(5)(v) and (vi),

                                                      42 U.S.C. 7416, 7410(k)(3).                             here. See § 52.38(a)(3), (b)(3); § 52.39(d), (g).      (b)(6); § 52.39(f)(4) and (5), (i)(4) and (5), (j).



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                                                                                    Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules                                                                           41917

                                                      EPA has already started recording                                     applicability provisions of a CSAPR                          revision must include procedures
                                                      allocations of allowances for a given                                 federal trading program, the complete                        addressing the disposition of any
                                                      control period to a state’s units, the                                SIP revision must be submitted to EPA                        otherwise unallocated allowances from
                                                      federal trading program provisions                                    by December 1 of the year before the                         an Indian country NUSA that may be
                                                      authorizing EPA to complete the process                               deadlines described below for                                made available for allocation by the
                                                      of allocating and recording allowances                                submitting allocation or auction                             state after EPA has carried out the
                                                      for that control period to those units                                amounts to EPA for the first control                         Indian country NUSA allocation
                                                      will continue to apply, unless EPA’s                                  period for which the state wants to                          procedures.17
                                                      approval of the SIP revision provides                                 replace the default allocation and/or                           • Assurance that total allocations will
                                                      otherwise.11                                                          applicability provisions.14 This SIP                         not exceed the state budget. For each
                                                         Certain CSAPR Phase 2 emissions                                    submission deadline is inoperative in                        federal trading program addressed by a
                                                      budgets have been remanded to EPA for                                 the case of a SIP revision that seeks only                   SIP revision, the total amount of
                                                      reconsideration.12 However, the CSAPR                                 to replace a CSAPR FIP and federal                           allowances auctioned or allocated for
                                                      trading programs remain in effect and                                 trading program with a SIP and a                             each control period under the SIP
                                                      all CSAPR emissions budgets likewise                                  substantively identical state trading                        revision (prior to the addition by EPA of
                                                      remain in effect pending EPA final                                    program integrated with the federal                          any unallocated allowances from any
                                                      action to address the remands. The                                    trading program. The SIP submittal                           Indian country NUSA for the state) may
                                                      remanded budgets include the CSAPR                                    completeness criteria in section 2.1 of                      not exceed the state’s emissions budget
                                                      Phase 2 SO2 emissions budget                                          appendix V to 40 CFR part 51 also                            for the control period less the sum of the
                                                      applicable to Alabama units under the                                 apply.                                                       amount of any Indian country NUSA for
                                                      federal CSAPR SO2 Group 2 Trading                                        In addition to the general submittal                      the state for the control period and any
                                                      Program.                                                              conditions, a CSAPR-related abbreviated                      allowances already allocated to the
                                                         In 2015, EPA proposed to update                                    or full SIP seeking to address the                           state’s units for the control period and
                                                      CSAPR to address Eastern states’                                      allocation or auction of emission                            recorded by EPA.18 Under its SIP
                                                      interstate air pollution mitigation                                   allowances must meet the following                           revision, a state is free to not allocate
                                                      obligations with regard to the 2008                                   further conditions:                                          allowances to some or all potentially
                                                      ozone NAAQS. Among other things, the                                     • Methodology covering all                                affected units, to allocate or auction
                                                      proposed rule would amend the Phase                                   allowances potentially requiring                             allowances to entities other than
                                                      2 emissions budget applicable to                                      allocation. For each federal trading                         potentially affected units, or to allocate
                                                      Alabama units under the CSAPR NOX                                     program addressed by a SIP revision,                         or auction fewer than the maximum
                                                      Ozone Season Trading Program and                                      the SIP revision’s allowance allocation                      permissible quantity of allowances and
                                                      would make technical corrections and                                  or auction methodology must replace                          retire the remainder.
                                                      nomenclature changes that would apply                                 both the federal program’s default                              • Timely submission of state-
                                                      throughout the CSAPR regulations,                                     allocations to existing units 15 at 40 CFR                   determined allocations to EPA. The SIP
                                                      including the CSAPR FIPs at 40 CFR                                    97.411(a), 97.511(a), 97.611(a), or                          revision must require the state to submit
                                                      part 52 and the CSAPR federal trading                                 97.711(a), as applicable, and the federal                    to EPA the amounts of any allowances
                                                      program regulations for annual NOX,                                   trading program’s provisions for                             allocated or auctioned to each unit for
                                                      ozone-season NOX, and SO2 emissions                                   allocating allowances from the new unit                      each control period (other than
                                                      at 40 CFR part 97.13                                                  set-aside (NUSA) for the state at 40 CFR                     allowances initially set aside in the
                                                                                                                            97.411(b)(1) and 97.412(a), 97.511(b)(1)                     state’s allocation or auction process and
                                                      III. Conditions for Approval of CSAPR-                                and 97.512(a), 97.611(b)(1) and                              later allocated or auctioned to such
                                                      Related SIP Revisions                                                 97.612(a), or 97.711(b)(1) and 97.712(a),                    units from the set-aside amount) by the
                                                        Each CSAPR-related abbreviated or                                   as applicable.16 In the case of a state                      following deadlines.19 Note that the
                                                      full SIP revision must meet the                                       with Indian country within its borders,                      submission deadlines differ for amounts
                                                      following general submittal conditions:                               while the SIP revision may neither alter                     allocated or auctioned to units
                                                        • Timeliness and completeness of SIP                                nor assume the federal program’s                             considered existing units for CSAPR
                                                      submittal. If a state wants to replace the                            provisions for administering the Indian                      purposes and amounts allocated or
                                                      default allowance allocation or                                       country NUSA for the state, the SIP                          auctioned to other units.

                                                              Units                         Year of the control period                                       Deadline for submission to EPA of allocations or auction results

                                                      Existing ..............    2017 and 2018 ........................................          June 1, 2016.
                                                                                 2019 and 2020 ........................................          June 1, 2017.
                                                                                 2021 and 2022 ........................................          June 1, 2018.
                                                                                 2023 and later years ...............................            June 1 of the fourth year before the year of the control period.
                                                      Other ..................   All years ...................................................   July 1 of the year of the control period.



                                                        • No changes to allocations already                                 revision must not provide for any                            allocated or auctioned to any unit after
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                                                      submitted to EPA or recorded. The SIP                                 change to the amounts of allowances                          those amounts are submitted to EPA or

                                                        11 § 52.38(a)(7), (b)(7); § 52.39(k).                               a unit for which EPA has determined default                     17 See §§ 97.412(b)(10)(ii), 97.512(b)(10)(ii),

                                                        12 EME   Homer City Generation, L.P. v. EPA, 795                    allowance allocations (which could be allocations            97.612(b)(10)(ii), 97.712(b)(10)(ii).
                                                                                                                            of zero allowances) in the rulemakings establishing             18 § 52.38(a)(4)(i)(A), (a)(5)(i)(A), (b)(4)(ii)(A),
                                                      F.3d 118, 138 (D.C. Cir. 2015).
                                                        13 80 FR 75706, 75710, 75757 (December 3, 2015).                    and amending CSAPR. A spreadsheet showing                    (b)(5)(ii)(A); § 52.39(e)(1)(i), (f)(1)(i), (h)(1)(i),
                                                        14 40 CFR 52.38(a)(4)(ii), (a)(5)(vi), (b)(4)(iii),                 EPA’s default allocations to existing units is posted        (i)(1)(i).
                                                                                                                                                                                            19 § 52.38(a)(4)(i)(B) and (C), (a)(5)(i)(B) and (C),
                                                      (b)(5)(vii); § 52.39(e)(2), (f)(6), (h)(2), (i)(6).                   at www.epa.gov/crossstaterule/techinfo.html.
                                                                                                                               16 § 52.38(a)(4)(i), (a)(5)(i), (b)(4)(ii), (b)(5)(ii);   (b)(4)(ii)(B) and (C), (b)(5)(ii)(B) and (C);
                                                        15 In the context of the approval conditions for
                                                                                                                                                                                         § 52.39(e)(1)(ii) and (iii), (f)(1)(ii) and (iii), (h)(1)(ii)
                                                      CSAPR-related SIP revisions, an ‘‘existing unit’’ is                  § 52.39(e)(1), (f)(1), (h)(1), (i)(1).
                                                                                                                                                                                         and (iii), (i)(1)(ii) and (iii).



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                                                      41918                         Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules

                                                      any change to any allowance allocation                          except as described above in the case of                   NOX Ozone Season Trading Program’’.29
                                                      determined and recorded by EPA under                            a SIP revision that seeks to replace the                   In general, each individual rule in
                                                      the federal trading program                                     default allowance allocation and/or                        Alabama’s three sets of CSAPR state
                                                      regulations.20                                                  applicability provisions.                                  trading program rules is designed to
                                                         • No other substantive changes to                               • Only non-substantive substitutions                    replace one individual section (or in a
                                                      federal trading program provisions. The                         for the term ‘‘State.’’ The SIP revision                   few cases two or three sections) of the
                                                      SIP revision may not substantively                              may substitute the name of the state for                   corresponding federal trading program
                                                      change any other trading program                                the term ‘‘State’’ as used in the federal                  regulations, and each set of rules is
                                                      provisions, except in the case of a SIP                         trading program regulations, but only to                   designed to collectively replace all
                                                      revision that also expands program                              the extent that EPA determines that the                    sections of the corresponding federal
                                                      applicability as described below.21 Any                         substitutions do not substantively                         trading program regulations. For
                                                      new definitions adopted in the SIP                              change the trading program                                 example, Alabama rule 335–3–5–.06 is
                                                      revision (in addition to the federal                            regulations.25                                             designed to replace 40 CFR 97.401
                                                      trading program’s definitions) may                                 • Exclusion of provisions addressing                    through 97.403, while Alabama rules
                                                      apply only for purposes of the SIP                              units in Indian country. The SIP                           335–3–5–.06 through 335–3–5–.36 are
                                                      revision’s allocation or auction                                revision may not include references to                     designed to collectively replace all of
                                                      provisions.22                                                   or impose requirements on any unit in                      subpart AAAAA of 40 CFR part 97 (i.e.,
                                                         In addition to the general submittal                         any Indian country within the state’s                      40 CFR 97.401 through 97.435).
                                                      conditions, a CSAPR-related abbreviated                         borders and must not include the                              With regard to form, some of the
                                                      or full SIP revision seeking to expand                          federal trading program provisions                         individual rules for each Alabama
                                                      applicability under the CSAPR NOx                               governing allocation of allowances from                    CSAPR state trading program are set
                                                      Ozone Season Trading Program (or an                             any Indian country NUSA for the                            forth as full regulatory text—notably the
                                                      integrated state trading program) must                          state.26                                                   rules addressing program applicability,
                                                      meet the following further conditions:                          IV. Alabama’s SIP Submittal and EPA’s                      emissions budgets and variability limits,
                                                         • Only electricity generating units                          Analysis                                                   and allowance allocations—but most of
                                                      with nameplate capacity of at least 15                                                                                     the rules incorporate the corresponding
                                                      MWe. The SIP revision may expand                                A. Alabama’s SIP Submittal                                 federal trading program section or
                                                      applicability only to additional fossil                            In the CSAPR rulemaking, EPA                            sections by reference. Several of the
                                                      fuel-fired boilers or combustion turbines                       determined that air pollution                              Alabama rules adopt cross-references to
                                                      serving generators producing electricity                        transported from Alabama would                             other Alabama rules in place of cross-
                                                      for sale, and only by lowering the                              unlawfully affect other states’ ability to                 references to specific federal trading
                                                      generator nameplate capacity threshold                          attain or maintain the 1997 ozone                          program sections that would be replaced
                                                      used to determine whether a particular                          NAAQS, the 1997 annual PM2.5                               by those other Alabama rules.
                                                      boiler or combustion turbine serving a                          NAAQS, and the 2006 24-hour PM2.5                             With regard to substance, the rules for
                                                      particular generator is a potentially                           NAAQS.27 Alabama units meeting the                         each Alabama CSAPR state trading
                                                      affected unit. The nameplate capacity                           CSAPR applicability criteria are                           program differ from the corresponding
                                                      threshold adopted in the SIP revision                           consequently subject to CSAPR FIPs                         CSAPR federal trading program
                                                      may not be less than 15 MWe.23                                  that require participation in the CSAPR                    regulations in three main ways. First,
                                                         • No other substantive changes to                            NOX Annual Trading Program, the                            the applicability provisions in the
                                                      federal trading program provisions. The                         CSAPR NOX Ozone Season Trading                             Alabama rules require participation in
                                                      SIP revision may not substantively                              Program, and the CSAPR SO2 Group 2                         Alabama’s CSAPR state trading
                                                      change any other trading program                                Trading Program.28                                         programs only for units in Alabama, not
                                                      provisions, except in the case of a SIP                            On October 26, 2015, Alabama                            for units in any other state or in Indian
                                                      revision that also addresses the                                submitted to EPA a SIP revision                            country within the borders of Alabama
                                                      allocation or auction of emission                               including provisions that, if all portions                 or any other state. Second, the Alabama
                                                      allowances as described above.24                                were approved, would incorporate into                      rules set forth a methodology for
                                                         In addition to the general submittal                         Alabama’s SIP CSAPR state trading                          allocating emission allowances among
                                                      conditions and the other applicable                             program regulations that would replace                     Alabama units that differs from the
                                                      conditions described above, a CSAPR-                            the CSAPR federal trading program                          default allowance allocation provisions
                                                      related full SIP revision must meet the                         regulations with regard to Alabama                         in the federal trading program
                                                      following further conditions:                                   units’ SO2, annual NOX, and ozone-                         regulations. Finally, the Alabama rules
                                                         • Complete, substantively identical                          season NOX emissions for control                           omit a number of federal trading
                                                      trading program provisions. The SIP                             periods in 2017 and later years. The SIP                   program provisions not applicable to
                                                      revision must adopt complete state                              submittal includes three sets of duly                      Alabama’s state trading programs,
                                                      trading program regulations                                     adopted state rules: ADEM                                  including provisions setting forth the
                                                      substantively identical to the complete                         Administrative Code rules 335–3–5–.06                      amounts of emissions budgets, NUSAs,
                                                      federal trading program regulations at                          through 335–3–5–.36, which establish                       Indian country NUSAs, and variability
                                                      40 CFR 97.402 through 97.435, 97.502                                                                                       limits for other states; provisions
                                                                                                                      Alabama’s ‘‘TR SO2 Group 2 Trading
                                                      through 97.535, 97.602 through 97.635,                                                                                     addressing EPA’s procedures for
                                                                                                                      Program’’; rules 335–3–8–.07 through
                                                                                                                                                                                 allocating allowances from Indian
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                                                      or 97.702 through 97.735, as applicable,                        335–3–8–.38, which establish Alabama’s
                                                                                                                                                                                 country NUSAs; and provisions
                                                                                                                      ‘‘TR NOX Annual Trading Program’’;
                                                         20 § 52.38(a)(4)(i)(D), (a)(5)(i)(D), (b)(4)(ii)(D),                                                                    addressing EPA’s recordation of certain
                                                                                                                      and rules 335–3–8–.39 through 335–3–
                                                      (b)(5)(ii)(D); § 52.39(e)(1)(iv), (f)(1)(iv), (h)(1)(iv),                                                                  allowance allocations.
                                                      (i)(1)(iv).                                                     8–.70, which establish Alabama’s ‘‘TR
                                                         21 § 52.38(a)(4), (a)(5), (b)(4), (b)(5); § 52.39(e), (f),
                                                                                                                                                                                    29 Consistent with the current CSAPR regulatory
                                                      (h), (i).                                                         25 §§ 52.38(a)(5)(iii),
                                                                                                                                             (b)(5)(iv); 52.39(f)(3), (i)(3).    text, Alabama’s rules use the terms ‘‘Transport
                                                         22 § 52.38(a)(4)(i), (a)(5)(ii), (b)(4)(ii), (b)(5)(iii);      26 §§ 52.38(a)(5)(iv),
                                                                                                                                            (b)(5)(v); 52.39(f)(4), (i)(4).      Rule’’ and ‘‘TR’’ instead of the updated terms
                                                      § 52.39(e)(1), (f)(2), (h)(1), (i)(2).                            27 76 FR 48208, 48213 (August 8, 2011).
                                                                                                                                                                                 ‘‘Cross-State Air Pollution Rule’’ and ‘‘CSAPR’’. For
                                                         23 § 52.38(b)(4)(i), (b)(5)(i).                                28 40 CFR 52.38(a)(2), (b)(2); § 52.39(c); § 52.54(a),   simplicity, EPA uses the updated terms here except
                                                         24 § 52.38(b)(4), (b)(5).                                    (b); § 52.55.                                              where otherwise noted.



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                                                                               Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules                                                     41919

                                                         The Alabama SIP adopts the Phase 2                   permissibly be allocated to the units                  and 52.39(i)(6) for timely submission of
                                                      annual NOX and SO2 budgets found at                     under a final updated budget.                          a complete SIP revision.
                                                      40 CFR 97.410(a)(1)(iv) and                               EPA has previously approved a
                                                                                                              separate Alabama SIP revision replacing                2. Methodology Covering All
                                                      97.710(a)(1)(iv), respectively. Although
                                                                                                              the default allowance allocation                       Allowances Potentially Requiring
                                                      the court in EME Homer City remanded
                                                                                                              provisions of the CSAPR NOX Annual                     Allocation
                                                      Alabama’s Phase 2 SO2 budget because
                                                      it determined that EPA required more                    Trading Program, the CSAPR NOX                            Paragraphs 335–3–8-.14(1) and 335–
                                                      emissions reductions than necessary to                  Ozone Season Trading Program, and the                  3–5-.13(1) of the Alabama rules set forth
                                                      address the downwind air quality                        CSAPR SO2 Group 2 Trading Program                      total amounts of 71,962 CSAPR Annual
                                                      problems to which Alabama contributes,                  for Alabama existing units for the                     NOX allowances and 213,258 CSAPR
                                                      Alabama is voluntarily adopting a Phase                 control period in 2016.31                              SO2 Group 2 allowances, respectively,
                                                      2 SO2 budget that is equivalent to the                                                                         that would be allocated to Alabama
                                                                                                              B. EPA’s Analysis of Alabama’s                         units for each control period in 2017
                                                      federally-developed budget remanded                     Submittal
                                                      by the court. Nothing in the court’s                                                                           and later years according to the
                                                      decision affects Alabama’s authority to                   As described in section IV.A above, at               allocation procedures set forth under
                                                      seek incorporation into its SIP of a state-             this time EPA is taking action on the                  the remaining paragraphs of Alabama
                                                      established budget as stringent as the                  portions of Alabama’s SIP submittal                    rules 335–3–8-.14 and 335–3–5-.13
                                                      remanded federally-established budget                   designed to replace the federal CSAPR                  (Paragraphs 335–3–8-.13(1) and 335–3–
                                                      or limits EPA’s authority to approve                    NOX Annual Trading Program and the                     5-.12(1) set forth the same amounts as
                                                      such a SIP revision. See 42 U.S.C. 7416,                federal CSAPR SO2 Group 2 Trading                      the respective state emissions budgets,
                                                      7410(k)(3). Accordingly, EPA will                       Program for Alabama units but not the                  in conjunction with the corresponding
                                                      evaluate the approvability of the                       portion of the SIP submittal designed to               variability limits). These totals match
                                                      Alabama SIP submission consistent                       replace the federal CSAPR NOX Ozone                    the amounts of the respective Phase 2
                                                      with this budget.                                       Season Trading Program. The analysis                   emissions budgets for Alabama
                                                         The SIP revision was submitted to                    discussed in this section addresses only               established under the federal trading
                                                      EPA by a letter from the Director of the                the portions of Alabama’s SIP submittal                program regulations for annual NOX and
                                                      Alabama Department of Environmental                     on which EPA is taking action at this                  SO2 emissions, thereby addressing the
                                                      Management. The letter and its                          time. For simplicity, throughout this                  full quantities of allowances that could
                                                      enclosures describe steps taken by                      section EPA refers to the portions of the              be allocated to Alabama units under the
                                                      Alabama to provide public notice prior                  submittal on which EPA is proposing to                 default allocation provisions for the
                                                      to adoption of the state rules.                         take action as ‘‘the submittal’’ or ‘‘the              federal trading programs.32 As noted
                                                         At this time, EPA is proposing to take               SIP revision’’ without repeating the                   earlier, although the Phase 2 SO2
                                                      action on the portions of Alabama’s SIP                 qualification that at this time EPA is                 emissions budget was remanded
                                                      submittal designed to replace the federal               analyzing and proposing to act on only                 because the court in EME Homer City
                                                      CSAPR NOX Annual Trading Program                        portions of the SIP submittal.                         determined that the budget was too
                                                      and the federal CSAPR SO2 Group 2                       1. Timeliness and Completeness of SIP                  stringent, nothing in the court’s decision
                                                      Trading Program with regard to                          Submittal                                              affects Alabama’s authority to seek
                                                      Alabama units. EPA is not proposing to                                                                         incorporation into its SIP of a state-
                                                      take action at this time on the portion                    Alabama’s SIP revision seeks in part
                                                                                                                                                                     established budget as stringent as the
                                                      of the SIP submittal designed to replace                to replace the default allowance
                                                                                                                                                                     remanded federally-established budget
                                                      the federal CSAPR NOX Ozone Season                      allocation provisions in the CSAPR
                                                                                                                                                                     or limits EPA’s authority to approve
                                                      Trading Program with regard to                          federal trading program regulations for
                                                                                                                                                                     such a SIP revision. See 42 U.S.C. 7416,
                                                      Alabama units. As noted in section II                   annual NOX and SO2 emissions as
                                                                                                                                                                     7410(k)(3). Because the current CSAPR
                                                      above, EPA has proposed to update                       applied to Alabama units with state
                                                                                                                                                                     federal trading program regulations for
                                                      CSAPR to address Eastern states’                        regulations establishing a different state-
                                                                                                                                                                     annual NOX and SO2 emissions do not
                                                      interstate air pollution mitigation                     determined methodology, starting with
                                                                                                                                                                     provide for portions of Alabama’s
                                                      obligations with regard to the 2008                     the control periods in 2017. Under 40
                                                                                                                                                                     overall emissions budgets to be
                                                      ozone NAAQS. The proposal would                         CFR 52.38(a)(5)(i)(B) and 52.39(h)(1)(ii),
                                                                                                                                                                     allocated pursuant to the Indian country
                                                      further reduce the ozone-season NOX                     the deadline for submission of state-
                                                                                                                                                                     NUSA allocation procedures, there is no
                                                      emissions budgets for control periods in                determined allowance allocations for
                                                                                                                                                                     current need for the Alabama rules
                                                      2017 and later years for a number of                    the 2017 and 2018 control periods is
                                                                                                                                                                     establishing CSAPR state trading
                                                      states, including Alabama.30 Action on                  June 1, 2016, which under
                                                                                                                                                                     programs for annual NOX and SO2
                                                      the portion of Alabama’s SIP submittal                  §§ 52.38(a)(5)(vi) and 52.39(i)(6) makes
                                                                                                                                                                     emissions to include provisions
                                                      related to ozone-season NOX emissions                   December 1, 2015, the deadline for
                                                                                                                                                                     addressing the disposition of otherwise
                                                      would be premature while the proposed                   submission to EPA of a complete SIP
                                                                                                                                                                     unallocated allowances from an Indian
                                                      update is pending because there is a                    revision establishing state-determined
                                                                                                                                                                     country NUSA that might be made
                                                      foreseeable potential conflict between                  allocations for those control periods.
                                                                                                                                                                     available by EPA for state allocation.33
                                                      the total amount of allowances that                     Alabama submitted its SIP revision to
                                                                                                                                                                     The allocation provisions in the
                                                      would be allocated to Alabama units                     EPA on October 26, 2015, and EPA has
                                                                                                                                                                     Alabama rules therefore enable
                                                      under Alabama’s state trading program,                  determined that the submittal complies
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                                                                                                                                                                     Alabama’s SIP revision to meet the
                                                      which reflects Alabama’s current ozone-                 with the applicable minimum
                                                      season NOX budget, and the total                        completeness criteria in section 2.1 of                  32 40 CFR 97.410(a)(1)(iv); § 97.710(a)(1)(iv).
                                                      amount of allowances that could                         appendix V to 40 CFR part 51. Because                    33 Since  promulgating the current CSAPR
                                                                                                              Alabama’s SIP revision was timely                      regulations, EPA has learned of Indian country
                                                        30 Alabama’s current Phase 2 emissions budget
                                                                                                              submitted and meets the applicable                     within Alabama’s borders. If any units were to
                                                      under the CSAPR NOX Ozone Season Trading                completeness criteria, it meets the                    locate in that area of Indian country in the future,
                                                      Program is 31,499 tons. 40 CFR 97.510(a)(1)(iv).                                                               EPA would determine at that time what actions, if
                                                      Alabama’s proposed updated CSAPR emissions              conditions under 40 CFR 52.38(a)(5)(vi)                any, should be taken to make CSAPR NOX Annual
                                                      budget for ozone season NOX emissions is 9,979                                                                 allowances and CSAPR SO2 Group 2 allowances
                                                      tons. 80 FR at 75770.                                     31 80   FR 52272 (September 22, 2015).               available for allocation to those units.



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                                                      41920                    Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules

                                                      condition under 40 CFR 52.38(a)(5)(i)                   units). Alabama’s SIP revision therefore               under the CSAPR regulations.35 Most of
                                                      and 52.39(i)(1) that the state’s allocation             meets the conditions under 40 CFR                      the remaining differences between the
                                                      or auction methodology must cover all                   52.38(a)(5)(i)(B) and (C) and                          Alabama rules and the corresponding
                                                      allowances potentially requiring                        52.39(i)(1)(ii) and (iii) requiring that the           sections of the federal trading program
                                                      allocation by the state.                                SIP revision provide for submission of                 regulations consist of non-substantive
                                                                                                              state-determined allowance allocations                 renumbering of the provisions.36
                                                      3. Assurance That Total Allocations                                                                               In addition to the clearly non-
                                                                                                              to EPA by the deadlines specified in
                                                      Will Not Exceed the State Budget                                                                               substantive or expressly authorized
                                                                                                              those provisions.
                                                         As discussed in section IV.B.2 above,                                                                       differences summarized above, a few of
                                                      paragraphs 335–3–8–.14(1) and 335–3–                    5. No Changes to Allocations Already                   Alabama’s rules contain other
                                                      5–.13(1) of the Alabama rules set forth                 Submitted to EPA or Recorded                           differences from the federal trading
                                                      the total amounts of CSAPR Annual                          The Alabama rules include no                        program regulations. In each case, EPA
                                                      NOX allowances and CSAPR SO2 Group                      provisions allowing alteration of                      has determined that the changes do not
                                                      2 allowances to be allocated to Alabama                 allocations after the allocation amounts               represent substantive changes to the
                                                      units for each control period under the                 have been provided to EPA and no                       federal trading program regulations.
                                                      state trading programs; these total                     provisions allowing alteration of any                  First, paragraphs 335–3–8–.08(1)(c),
                                                      amounts equal the amounts of the                        allocations made and recorded by EPA                   335–3–8–.09(1)(a), 335–3–8–.34(2)(a),
                                                      respective annual NOX and SO2                           under the federal trading program                      335–3–5–.07(1)(c), 335–3–5–.08(1)(a),
                                                      emissions budgets established for                       regulations, thereby meeting the                       and 335–3–5–.32(2)(a) of the Alabama
                                                      Alabama units under the CSAPR federal                   condition under 40 CFR 52.38(a)(5)(i)(D)               rules require Alabama units to submit
                                                      trading program regulations; and under                  and 52.39(i)(1)(iv).                                   certain petitions, statements, and
                                                      the current CSAPR federal trading                                                                              notices not only to EPA but also to the
                                                                                                              6. No Other Substantive Changes to
                                                      program regulations for annual NOX and                                                                         Alabama Department of Environmental
                                                                                                              Federal Trading Program Provisions
                                                      SO2 there is no possibility of additional                                                                      Management. Because the additional
                                                      allowances from an Indian country                          With the exception of the provisions                notification requirements do not alter
                                                      NUSA being allocated to Alabama units.                  addressing allowance allocations                       the respective authorities or
                                                      EPA has not yet allocated or recorded                   discussed above, the Alabama state                     responsibilities of EPA and the
                                                      CSAPR allowances for the control                        trading program rules generally                        Department, EPA considers the
                                                      periods in 2017 or later years. The                     incorporate sections of the                            requirements to be non-substantive
                                                      allocation methodology in Alabama’s                     corresponding federal trading program                  changes.
                                                      SIP revision therefore meets the                        regulations by reference or set forth full                Second, paragraphs 335–3–8–
                                                      condition under 40 CFR 52.38(a)(5)(i)(A)                text that is very similar to the text in the           .20(2)(a), 335–3–8–.23(2)(a), 335–3–5–
                                                      and 52.39(i)(1)(i) that, for each trading               corresponding federal trading program                  .18(2)(a), and 335–3–5–.21(2)(a) of the
                                                      program, the total amount of allowances                 regulations.34 Some of the differences                 Alabama rules provide that, like EPA,
                                                      allocated under the SIP revision (before                between the Alabama rules and the                      the Department will not adjudicate
                                                      the addition of any otherwise                           corresponding federal trading program                  certain private legal disputes. Because
                                                      unallocated allowances from an Indian                   regulations are clearly non-substantive.               the Department is not required to
                                                      country NUSA) may not exceed the                        For example, in instances where an                     adjudicate such disputes under the
                                                      state’s budget for the control period less              Alabama rule contains full text                        federal trading program regulations in
                                                      the amount of the Indian country NUSA                   substituting for the text of a section of              any event, these additions to the text of
                                                      for the state and any allowances already                the federal trading program regulations,               the state trading program rules merely
                                                      allocated and recorded by EPA.                          the remaining Alabama rules adopt                      clarify that the Department is not
                                                                                                              cross-references to the full-text Alabama              undertaking a new adjudication
                                                      4. Timely Submission of State-                          rule in place of cross-references to the
                                                      Determined Allocations to EPA                                                                                  responsibility under the state trading
                                                                                                              section of the federal trading program                 programs. EPA therefore considers these
                                                         Paragraphs 335–3–8–.14(2)(a) through                 regulations that would be replaced by                  additions to be non-substantive changes.
                                                      (d) and 335–3–5–.13(2)(a) through (d) of                the full-text Alabama rule. The Alabama                   Third, paragraph 335–3–8–.07(2)(b)8.
                                                      the Alabama rules provide for all                       rules also contain definitions for certain             of the Alabama CSAPR state trading
                                                      allowance allocations to Alabama units                  terms used in the state trading                        program rules for annual NOX emissions
                                                      established under the Alabama rules to                  programs’ allocation provisions that are               substitutes a reference to Alabama rule
                                                      be submitted to EPA by the following                    not used in the federal trading program                335–3–16–.01 (an Alabama air permit
                                                      deadlines: allocations for the control                  regulations, as expressly permitted                    program rule) for a reference to 40 CFR
                                                      periods in 2017 and 2018, by June 1,                                                                           70.2 (the definitions section of the
                                                      2016; allocations for the control periods                  34 EPA has proposed to make certain technical
                                                                                                                                                                     federal regulations governing state
                                                      in 2019 and 2020, by June 1, 2017;                      corrections to the CSAPR FIP and federal trading
                                                                                                              program regulations in order to more accurately        operating permit programs under CAA
                                                      allocations for the control periods in                  reflect EPA’s intent as described in the CSAPR         title V) in the corresponding CSAPR
                                                      2021 and 2022, by June 1, 2018; and                     rulemaking and has also proposed to replace ‘‘TR’’     federal trading program definition of
                                                      allocations for later control periods, by               with ‘‘CSAPR’’ throughout the regulations (for
                                                                                                              example, ‘‘TR NOX Annual unit’’ would become
                                                                                                                                                                     ‘‘permitting authority.’’ 37 Although
                                                      June 1 of the fourth or fifth year before               ‘‘CSAPR NOX Annual unit’’). See 80 FR 75706,           substitutions to definitions in the
                                                      the year of the control period. These
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                                                                                                              75758. Because the proposed technical corrections      CSAPR federal trading program
                                                      submission deadlines match or precede                   merely clarify and do not change EPA’s                 regulations generally are not permissible
                                                      the submission deadlines discussed in                   interpretations, where the proposed corrections
                                                                                                              would apply to a provision incorporated by
                                                      section III above (specifically, the                    reference in the Alabama rules, EPA would
                                                                                                                                                                       35 40  CFR 52.38(a)(5)(ii); § 52.39(i)(2).
                                                      deadlines under 40 CFR 52.38(a)(5)(i)(B)                interpret the Alabama rules as reflecting the            36 Instances where Alabama’s CSAPR state trading
                                                      and 52.39(i)(1)(ii) for allocations to units            corrections. Further, EPA anticipates that if the      program rules omit provisions of the CSAPR federal
                                                      considered existing units for CSAPR                     proposed nomenclature updates are finalized, the       trading program regulations are discussed in
                                                                                                              final CSAPR federal regulations would explicitly       sections IV.B.7 and 9 below.
                                                      purposes and the submission deadlines                   provide that terms that include ‘‘CSAPR’’                 37 Alabama’s CSAPR state trading program rules
                                                      under §§ 52.38(a)(5)(i)(C) and                          encompass otherwise identical terms in approved        for SO2 emissions do not contain a comparable
                                                      52.39(i)(1)(iii) for allocations to other               SIP revisions that include ‘‘TR’’.                     substitution provision.



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                                                                               Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules                                                  41921

                                                      in a CSAPR-related SIP revision, in this                NOX emissions either incorporate by                    been recorded. The federal trading
                                                      case the substitution has no substantive                reference or adopt full-text replacements              program provisions at §§ 97.421(h) and
                                                      effect, for two reasons. First, the state               for all of the provisions of 40 CFR                    97.721(h), which address recordation of
                                                      trading program rule, like the CSAPR                    97.402 through 97.435, and the Alabama                 allocations from Indian country NUSAs,
                                                      federal trading program definition,                     rules comprising Alabama’s CSAPR                       are appropriately excluded from state
                                                      includes a reference to the definition of               state trading program for SO2 emissions                trading programs because a state may
                                                      ‘‘permitting authority’’ in 40 CFR 71.2                 either incorporate by reference or adopt               not administer an Indian country
                                                      (the definitions section of the federal                 full-text replacements for all of the                  NUSA. The federal trading program
                                                      operating permit program under CAA                      provisions of 40 CFR 97.702 through                    provisions at §§ 97.421(i) and 97.721(i),
                                                      title V) which encompasses the                          97.735. The first exception is that                    which address recordation of second-
                                                      definition of ‘‘permitting authority’’ in               Alabama rules 335–3–8–.13 and 335–3–                   round NUSA allocations, are not needed
                                                      § 70.2, so all the intended possible                    5–.12, which generally address the                     in Alabama’s state trading program rules
                                                      meanings of ‘‘permitting authority’’ are                amounts of emissions budgets and                       because Alabama would provide EPA
                                                      captured in the state trading program                   related quantities, omit the provisions of             the amounts of its NUSA allocations on
                                                      rules despite the loss of the reference to              40 CFR 97.410 and 97.710 setting forth                 the earlier schedule applicable to
                                                      40 CFR 70.2. Second, Alabama rule                       the amounts of the Phase 1 emissions                   allocations to units considered existing
                                                      335–3–16–.01 contains no definition of                  budgets, NUSAs, and variability limits                 units for CSAPR purposes.38 Omission
                                                      ‘‘permitting authority,’’ so the                        for Alabama; the amounts of the Phase                  of these provisions from Alabama’s state
                                                      substitution does not introduce any                     2 NUSAs for Alabama; and the amounts                   trading programs therefore does not
                                                      new, unintended meanings of                             of all emissions budgets, NUSAs, Indian                undermine the completeness of the state
                                                      ‘‘permitting authority’’ in the state                   country NUSAs, and variability limits                  trading programs.
                                                      trading program rules. EPA therefore                    for other states. Omission of the                         Because none of the omissions
                                                      considers the substitution to be a non-                 Alabama Phase 1 emissions budget and                   undermines the completeness of the
                                                      substantive change.                                     NUSA amounts is appropriate because                    Alabama’s state trading programs and
                                                         Finally, paragraphs 335–3–8–.10(2)(a)                Alabama’s state trading programs do not                because, as discussed in section IV.B.6
                                                      and (b) and 335–3–5–.09(2)(a) and (b) of                apply to emissions occurring in Phase 1                above, EPA has determined that
                                                      the Alabama rules substitute references                 of CSAPR. Omission of the default                      Alabama’s SIP revision makes no other
                                                      to Alabama rule 335.3.16–.13(3) (the                    Alabama NUSA amounts under the                         substantive changes to the provisions of
                                                      Alabama rule addressing minor permit                    federal trading program regulations is                 the federal trading program regulations
                                                      modification procedures) for references                 appropriate because the allocation                     beyond the provisions addressing
                                                      to 40 CFR 70.7(e)(2) (the minor permit                  procedures under Alabama’s state                       allowance allocations, Alabama’s SIP
                                                      modification procedures section of the                  trading programs establish NUSA                        revision meets the condition under 40
                                                      federal regulations governing state                     amounts differently. Omission of the                   CFR 52.38(a)(5) and 52.39(i) that the SIP
                                                      operating permit programs under CAA                     budget, NUSA, Indian country NUSA,                     revision must adopt complete state
                                                      title V) in the federal trading program                 and variability limit provisions for other             trading program regulations
                                                      regulations regarding title V permit                    states from state trading programs in                  substantively identical to the complete
                                                      requirements. As applied to Alabama                     which only Alabama units participate                   federal trading program regulations at
                                                      units only, the substituted Alabama rule                does not undermine the completeness of                 40 CFR 97.402 through 97.435, 97.502
                                                      provisions are substantively identical to               the state trading programs.                            through 97.535, 97.602 through 97.635,
                                                      the provisions in 40 CFR 70.7(e)(2) that                   The second exception is that Alabama                or 97.702 through 97.735, as applicable,
                                                      would be replaced. Because in the                       rules 335–3–8–.14 and 335–3–5–.13,                     except for permissible differences in
                                                      context of Alabama’s CSAPR state                        generally addressing allowance                         allowance allocation and/or
                                                      trading programs these particular                       allocations, omit 40 CFR 97.411(b)(2)                  applicability provisions.
                                                      provisions need to address only                         and 97.412(b) and 97.711(b)(2) and
                                                      Alabama units and not units from other                  97.712(b), concerning EPA’s                            8. Only Non-Substantive Substitutions
                                                      states participating in the CSAPR                       administration of Indian country                       for the Term ‘‘State’’
                                                      trading programs, EPA determines that                   NUSAs. Omission of these provisions                       Paragraphs 335–3–8–.08(1)(a)1. and
                                                      these substitutions have no substantive                 from Alabama’s state trading program                   335–3–5–.07(1)(a)1. of the Alabama
                                                      effect.                                                 rules is required, as discussed in section             rules substitute the term ‘‘the State of
                                                         For the reasons discussed above, EPA                 IV.B.9 below.                                          Alabama’’, and paragraphs 335–3–8–
                                                      has determined that none of the textual                    The third exception is that Alabama                 .08(1)(b) and 335–3–5–.07(1)(b) of the
                                                      additions or substitutions made to the                  rules 335–3–8–.24 and 335–3–5–.22,                     Alabama rules similarly substitute the
                                                      CSAPR federal trading program                           which generally incorporate by                         term ‘‘the State’’ (meaning Alabama), for
                                                      regulations in Alabama’s corresponding                  reference the federal trading programs’                the phrase ‘‘a State (or Indian country
                                                      CSAPR state trading program rules are                   recordation schedule provisions,                       within the borders of such State)’’ in the
                                                      substantive, and that Alabama’s SIP                     exclude from incorporation by reference                corresponding federal trading program
                                                      revision therefore meets the conditions                 40 CFR 97.421(a), (b), (h), and (i) and                regulations at 40 CFR 97.410(a)(1) and
                                                      under 40 CFR 52.38(a)(5) and 52.39(i) of                97.721(a), (b), (h), and (i), respectively,            97.710(a)(1) and at §§ 97.410(b) and
                                                      making no substantive changes to the                    concerning EPA’s schedule for
                                                      provisions of the federal trading                       recording certain allowance allocations.
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                                                                                                                                                                        38 For the same reason, Alabama’s state rules

                                                      program regulations beyond the                          The federal trading program provisions                 could permissibly omit 40 CFR 97.421(g) and
                                                                                                              at §§ 97.421(a) and (b) and 97.721(a) and              97.721(g), which address recordation of first-round
                                                      provisions addressing allowance                                                                                NUSA allocations. Note that notwithstanding the
                                                      allocations.                                            (b), which address recordation of                      lack of provisions addressing recordation of NUSA
                                                                                                              allocations to units considered existing               allocations in Alabama’s state trading program
                                                      7. Complete, Substantively Identical                    units for CSAPR purposes of allowances                 rules, EPA would retain authority to complete the
                                                      Trading Program Provisions                              for the compliance periods in 2015 and                 recordation of 2016 NUSA allocations to Alabama
                                                                                                                                                                     units because EPA has already started recording
                                                         With the following exceptions, the                   2016, do not need to be included in                    allocations to Alabama units of allowances for the
                                                      Alabama rules comprising Alabama’s                      Alabama’s state trading program rules                  compliance periods in 2016. See 40 CFR 52.38(a)(7);
                                                      CSAPR state trading program for annual                  because those allocations have already                 § 52.39(k).



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                                                      41922                    Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules

                                                      97.710(b), respectively. These                          replacing 40 CFR 97.411(b)(2),                         CSAPR state trading programs for
                                                      provisions of the Alabama rules define                  97.412(b), 97.711(b)(2), or 97.712(b), the             annual NOX and SO2 emissions for
                                                      the units that are required to participate              portions of the corresponding federal                  compliance periods in 2017 and later
                                                      in Alabama’s CSAPR state trading                        trading program regulations governing                  years. The proposed revision would
                                                      programs. The substitutions                             allocations of allowances from Indian                  adopt into the SIP the state trading
                                                      appropriately exclude units located in                  country NUSAs Thus, the Alabama                        program rules codified in ADEM
                                                      other states and units located in Indian                rules do not include any express state                 Administrative Code rules 335–3–8–.07
                                                      country with the borders of Alabama or                  rule provisions concerning                             through 335–3–8–.38 (establishing
                                                      any other state, thereby limiting the                   administration of Indian country                       Alabama’s ‘‘TR NOX Annual Trading
                                                      applicability of Alabama’s state trading                NUSAs. Further, Alabama rules 335–3–                   Program’’) and 335–3–5–.06 through
                                                      programs to units that are subject to                   8–.24 and 335–3–5–.22, which generally                 335–3–5–.36 (establishing Alabama’s
                                                      Alabama’s jurisdiction. These                           incorporate by reference the federal                   ‘‘TR SO2 Group 2 Trading Program’’).40
                                                      substitutions do not substantively                      trading programs’ recordation schedule                 These Alabama CSAPR state trading
                                                      change the provisions of CSAPR’s                        provisions, exclude 40 CFR 97.421(h)                   programs would be integrated with the
                                                      federal trading program regulations. The                and 97.721(h), respectively, provisions                federal CSAPR NOX Annual Trading
                                                      remaining Alabama rules do not                          addressing recordation of Indian                       Program and the federal CSAPR SO2
                                                      substitute for the term ‘‘State’’ as used               country NUSA allocations. EPA notes                    Group 2 Trading Program, respectively,
                                                      in the federal trading program                          that paragraphs 335–3–8–.14(3)(i) and                  and would be substantively identical to
                                                      regulations. Alabama’s SIP revision                     335–3–5–.13(3)(i) of the Alabama rules,                the federal trading programs except with
                                                      therefore meets the condition under 40                  which incorporate by reference the                     regard to the allowance allocation
                                                      CFR 52.38(a)(5)(iii) and 52.39(i)(3) that               federal trading program regulations                    provisions. Following approval of these
                                                      the SIP revision may substitute the                     generally addressing corrections of                    portions of the proposed SIP revision,
                                                      name of the state for the term ‘‘State’’ as             incorrect allocations, fail to exclude 40              Alabama units therefore would
                                                      used in the federal trading program                     CFR 97.411(c)(5)(iii) and                              generally be required to meet
                                                      regulations, but only to the extent that                97.711(c)(5)(iii), addressing corrections              requirements under Alabama’s CSAPR
                                                      EPA determines that the substitutions                   of certain incorrect Indian country                    state trading programs equivalent to the
                                                      do not substantively change the                         NUSA allocations. However, the                         requirements the units otherwise would
                                                      provisions of the federal trading                       regulations governing approval of                      have been required to meet under the
                                                      program regulations.                                    CSAPR-related SIP revisions do not                     corresponding CSAPR federal trading
                                                      9. Exclusion of Provisions Addressing                   expressly require exclusion of these                   programs, but allocations to Alabama
                                                      Units in Indian Country                                 federal trading program provisions                     units of CSAPR NOX Annual allowances
                                                                                                              (unlike the Indian country NUSA                        for compliance periods in 2017 and later
                                                         The Alabama rules do not set forth                   allocation provisions) and, further, the               years would be determined according to
                                                      any full text provisions directly                       provisions are inoperative as to                       the SIP’s allocation provisions at
                                                      addressing units in Indian country                      Alabama because the CSAPR federal                      Alabama rule 335–3–8–.14 instead of
                                                      within the state’s borders. As discussed                trading program regulations do not                     EPA’s default allocation provisions at 40
                                                      in section IV.B.8 above, paragraphs 335–
                                                                                                              currently establish Indian country                     CFR 97.411(a), 97.411(b)(1), and
                                                      3–8–.08(1)(a)1. and 335–3–5–.07(1)(a)1.
                                                                                                              NUSAs for Alabama.39 EPA therefore                     97.412(a), and allocations to Alabama
                                                      of the Alabama rules define the units
                                                                                                              interprets the Alabama state rules as                  units of CSAPR SO2 Group 2 allowances
                                                      required to participate in Alabama’s
                                                                                                              sufficiently excluding provisions                      would be determined according to the
                                                      state trading programs in a manner that
                                                                                                              addressing administration of the Indian                SIP’s allocation provisions at Alabama
                                                      appropriately excludes units located in
                                                                                                              country NUSA provisions under the                      rule 335–3–5–.13 instead of EPA’s
                                                      Indian country within Alabama’s
                                                                                                              federal trading programs.                              default allocation provisions at 40 CFR
                                                      borders from coverage under Alabama’s                      In summary, EPA has determined that                 97.711(a), 97.711(b)(1), and 97.712(a).
                                                      CSAPR state trading programs.
                                                                                                              Alabama’s SIP revision adequately                      EPA is proposing to approve these
                                                      Although various other provisions of the
                                                                                                              meets the condition under 40 CFR                       portions of the SIP revision because
                                                      CSAPR federal trading program
                                                                                                              52.38(a)(5)(iv) and 52.39(i)(4) of not                 they meet the requirements of the CAA
                                                      regulations incorporated by reference
                                                                                                              including references to or imposing                    and EPA’s regulations for approval of a
                                                      into the Alabama rules without
                                                                                                              requirements on any unit in any Indian                 CSAPR full SIP revision replacing a
                                                      modification refer to units in Indian
                                                                                                              country within the state’s borders and                 federal trading program with a state
                                                      country, the clear exclusion of any such
                                                                                                              not including the federal trading                      trading program that is integrated with
                                                      units from coverage under the state
                                                                                                              program provisions governing allocation                and substantively identical to the
                                                      trading program applicability
                                                                                                              of allowances from any Indian country                  federal trading program except for
                                                      provisions—in other words, the fact that
                                                      such units are not ‘‘TR NOX Annual                      NUSA for the state.                                    permissible differences with respect to
                                                      units’’ or ‘‘TR SO2 Group 2 units’’ for                 V. EPA’s Proposed Action on Alabama’s                  emission allowance allocation
                                                      purposes of the state trading programs—                 Submittal                                              provisions, as discussed in section IV
                                                      renders the remaining provisions of                                                                            above.
                                                                                                                EPA is proposing to approve the                         EPA promulgated the FIPs requiring
                                                      Alabama’s state trading program rules                   portions of Alabama’s October 26, 2015,
                                                      inoperative as to the units. EPA                                                                               Alabama units to participate in the
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                                                                                                              SIP submittal concerning the                           federal CSAPR NOX Annual Trading
                                                      therefore interprets the Alabama rules as               establishment for Alabama units of
                                                      not imposing any requirements on units                                                                         Program and the federal CSAPR SO2
                                                      located in Indian country within the                                                                           Group 2 Trading Program in order to
                                                                                                                 39 Since promulgating the current CSAPR
                                                      state’s borders.                                                                                               address Alabama’s obligations under
                                                                                                              regulations, EPA has learned of Indian country
                                                         As discussed in section IV.B.7 above,                within Alabama’s borders. If any units were to         CAA section 110(a)(2)(D)(i)(I) with
                                                      Alabama rules 335–3–8–.14 and 335–3–                    locate in that area of Indian country in the future,
                                                                                                              EPA would determine at that time what actions, if         40 Consistent with the current CSAPR regulatory
                                                      5–.13, which address allowance                          any, should be taken to make CSAPR NOX Annual          text, the Alabama rules use the terms ‘‘Transport
                                                      allocations under the state trading                     allowances and CSAPR SO2 Group 2 allowances            Rule’’ and ‘‘TR’’ instead of the updated terms
                                                      programs, contain no provisions                         available for allocation to those units.               ‘‘Cross-State Air Pollution Rule’’ and ‘‘CSAPR’’.



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                                                                               Federal Register / Vol. 81, No. 124 / Tuesday, June 28, 2016 / Proposed Rules                                                   41923

                                                      respect to the 1997 and 2006 PM2.5                      SO2 Group 2 Trading Program.                                • does not impose an information
                                                      NAAQS in the absence of SIP provisions                  Elimination of Alabama units’                            collection burden under the provisions
                                                      addressing those requirements.                          obligations to participate in the federal                of the Paperwork Reduction Act (44
                                                      Approval of the portions of Alabama’s                   trading programs would include                           U.S.C. 3501 et seq.);
                                                      SIP submittal adopting CSAPR state                      elimination of the federally-established                    • is certified as not having a
                                                      trading program rules for annual NOX                    Phase 2 budgets capping allocations of                   significant economic impact on a
                                                      and SO2 substantively identical to the                  CSAPR NOX Annual allowances and                          substantial number of small entities
                                                      corresponding CSAPR federal trading                     CSAPR SO2 Group 2 allowances to                          under the Regulatory Flexibility Act (5
                                                      program regulations (or differing only                  Alabama units under those federal                        U.S.C. 601 et seq.);
                                                      with respect to the allowance allocation                trading programs. As approval of these
                                                      methodology) would correct the same                     portions of the SIP revision would                          • does not contain any unfunded
                                                      deficiency in the SIP that otherwise                    eliminate Alabama’s remanded                             mandate or significantly or uniquely
                                                      would be corrected by those CSAPR                       federally-established Phase 2 SO2                        affect small governments, as described
                                                      FIPs. Under the CSAPR regulations,                      budget and eliminate EPA’s authority to                  in the Unfunded Mandates Reform Act
                                                      upon EPA’s full and unconditional                       subject units in Alabama to a FIP, it is                 of 1995 (Pub. L. 104–4);
                                                      approval of a SIP revision as correcting                EPA’s opinion that finalization of                          • does not have Federalism
                                                      the SIP’s deficiency that is the basis for              approval of this SIP action would                        implications as specified in Executive
                                                      a particular CSAPR FIP, the obligation                  address the judicial remand of                           Order 13132 (64 FR 43255, August 10,
                                                      to participate in the corresponding                     Alabama’s federally-established Phase 2                  1999);
                                                      CSAPR federal trading program is                        SO2 budget.43 Large electricity                             • is not an economically significant
                                                      automatically eliminated for units                      generating units in Alabama are subject                  regulatory action based on health or
                                                      subject to the state’s jurisdiction (but                to an additional CSAPR FIP requiring                     safety risks subject to Executive Order
                                                      not for any units located in any Indian                 them to participate in the federal                       13045 (62 FR 19885, April 23, 1997);
                                                      country within the state’s borders).41                  CSAPR NOX Ozone Season Trading
                                                                                                              Program. While Alabama’s SIP submittal                      • is not a significant regulatory action
                                                      The proposed approval of the portions
                                                                                                              also seeks to replace the CSAPR FIP                      subject to Executive Order 13211 (66 FR
                                                      of Alabama’s SIP submittal establishing
                                                                                                              requirements addressing Alabama units’                   28355, May 22, 2001);
                                                      CSAPR state trading program rules for
                                                      annual NOX and SO2 emissions                            ozone-season NOX emissions, EPA is                          • is not subject to requirements of
                                                      therefore would result in automatic                     not proposing to act on that portion of                  Section 12(d) of the National
                                                      termination of the obligations of                       the SIP submittal at this time. Approval                 Technology Transfer and Advancement
                                                      Alabama units to participate in the                     of this SIP revision concerning other                    Act of 1995 (15 U.S.C. 272 note) because
                                                      federal CSAPR NOX Annual Trading                        CSAPR trading programs would have no                     application of those requirements would
                                                      Program and the federal CSAPR SO2                       effect on the CSAPR NOX Ozone Season                     be inconsistent with the CAA; and
                                                      Group 2 Trading Program. Approval of                    Trading Program as applied to Alabama                       • does not provide EPA with the
                                                      these portions of the SIP revision would                units, and the FIP requiring the units to                discretionary authority to address, as
                                                      therefore satisfy Alabama’s obligation                  participate in that program would                        appropriate, disproportionate human
                                                      pursuant to CAA section                                 remain in place.                                         health or environmental effects, using
                                                      110(a)(2)(D)(i)(I) to prohibit emissions                VI. Statutory and Executive Order                        practicable and legally permissible
                                                      which will significantly contribute to                  Reviews                                                  methods, under Executive Order 12898
                                                      nonattainment or interfere with                                                                                  (59 FR 7629, February 16, 1994).
                                                                                                                Under the CAA, the Administrator is
                                                      maintenance of the 1997 and 2006 PM2.5                                                                              The SIP is not approved to apply on
                                                                                                              required to approve a SIP submittal that
                                                      NAAQS in any other state.                                                                                        any Indian reservation land or in any
                                                                                                              complies with the provisions of the Act
                                                         As noted in section II above, the                    and applicable federal regulations. See                  other area where EPA or an Indian tribe
                                                      Phase 2 SO2 budget established for                      42 U.S.C. 7410(k); 40 CFR 52.02(a).                      has demonstrated that a tribe has
                                                      Alabama in the CSAPR rulemaking has                     Thus, in reviewing SIP submittals,                       jurisdiction. In those areas of Indian
                                                      been remanded to EPA for                                EPA’s role is to approve state choices,                  country, the rule does not have tribal
                                                      reconsideration.42 If EPA finalizes                     provided that they meet the criteria of                  implications as specified by Executive
                                                      approval of these portions of the SIP                   the CAA. Accordingly, this proposed                      Order 13175 (65 FR 67249, November 9,
                                                      revision as proposed, Alabama will have                 action merely approves state law as                      2000), nor will it impose substantial
                                                      fulfilled its obligations to provide a SIP              meeting federal requirements and does                    direct costs on tribal governments or
                                                      that address the interstate transport                   not impose additional requirements                       preempt tribal law.
                                                      provisions of CAA section                               beyond those imposed by state law. For
                                                      110(a)(2)(D)(i)(I) with respect to the                                                                           List of Subjects in 40 CFR Part 52
                                                                                                              that reason, this proposed action:
                                                      1997 and 2006 PM2.5 NAAQS. Thus,                          • Is not a significant regulatory action                 Environmental protection,
                                                      EPA would no longer be under an                         subject to review by the Office of                       Administrative practice and procedure,
                                                      obligation to (nor would EPA have the                   Management and Budget under                              Air pollution control, Incorporation by
                                                      authority to) address those transport                   Executive Orders 12866 (58 FR 51735,                     reference, Intergovernmental relations,
                                                      requirements through implementation                     October 4, 1993) and 13563 (76 FR 3821,                  Nitrogen dioxide, Ozone, Particulate
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS




                                                      of a FIP, and approval of these portions                January 21, 2011);                                       Matter, Reporting and recordkeeping
                                                      of the SIP revision would eliminate                                                                              requirements, Sulfur oxides.
                                                      Alabama units’ obligations to participate                 43 Although the court in EME Homer City

                                                      in the federal CSAPR NOX Annual                         Generation remanded Alabama’s Phase 2 SO2                  Authority: 42 U.S.C. 7401 et seq.
                                                      Trading Program and the federal CSAPR                   budget because it determined that the budget was
                                                                                                                                                                         Dated: June 10, 2016.
                                                                                                              too stringent, nothing in the court’s decision affects
                                                                                                              Alabama’s authority to seek incorporation into its       Heather McTeer Toney,
                                                         41 40 CFR 52.38(a)(6); § 52.39(j); see also
                                                                                                              SIP of a state-established budget as stringent as the    Regional Administrator, Region 4.
                                                      § 52.54(a)(1); § 52.55(a).                              remanded federally-established budget or limits
                                                         42 EME Homer City Generation, L.P. v. EPA, 795       EPA’s authority to approve such a SIP revision. See      [FR Doc. 2016–15146 Filed 6–27–16; 8:45 am]
                                                      F.3d 118, 138 (D.C. Cir. 2015).                         42 U.S.C. 7416, 7410(k)(3).                              BILLING CODE 6560–50–P




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Document Created: 2016-06-28 00:53:34
Document Modified: 2016-06-28 00:53:34
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before July 28, 2016.
ContactSteven Scofield, Air Regulatory Management Section, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Mr. Scofield can be reached by telephone at (404) 562-9034 or via electronic mail at [email protected]
FR Citation81 FR 41914 
CFR AssociatedEnvironmental Protection; Administrative Practice and Procedure; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Nitrogen Dioxide; Ozone; Particulate Matter; Reporting and Recordkeeping Requirements and Sulfur Oxides

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