82_FR_16206 82 FR 16144 - Withdrawal of Proposed Rules: Federal Plan Requirements for Greenhouse Gas Emissions From Electric Utility Generating Units Constructed on or Before January 8, 2014; Model Trading Rules; Amendments to Framework Regulations; and Clean Energy Incentive Program Design Details

82 FR 16144 - Withdrawal of Proposed Rules: Federal Plan Requirements for Greenhouse Gas Emissions From Electric Utility Generating Units Constructed on or Before January 8, 2014; Model Trading Rules; Amendments to Framework Regulations; and Clean Energy Incentive Program Design Details

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 62 (April 3, 2017)

Page Range16144-16146
FR Document2017-06518

The U.S. Environmental Protection Agency (EPA) is withdrawing the October 23, 2015 proposals for a federal plan to implement the greenhouse gas (GHG) emission guidelines (EGs) for existing fossil fuel-fired electric generating units (EGUs), for model trading rules for implementation of the EGs, and for amendments to the Clean Air Act (CAA) 111(d) framework regulations, and the June 30, 2016 proposed rule concerning design details of the Clean Energy Incentive Program (CEIP).

Federal Register, Volume 82 Issue 62 (Monday, April 3, 2017)
[Federal Register Volume 82, Number 62 (Monday, April 3, 2017)]
[Proposed Rules]
[Pages 16144-16146]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06518]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[FRL9961-12-OAR]


Withdrawal of Proposed Rules: Federal Plan Requirements for 
Greenhouse Gas Emissions From Electric Utility Generating Units 
Constructed on or Before January 8, 2014; Model Trading Rules; 
Amendments to Framework Regulations; and Clean Energy Incentive Program 
Design Details

AGENCY: Environmental Protection Agency (EPA).

ACTION: Withdrawal of proposed rules.

-----------------------------------------------------------------------

SUMMARY: The U.S. Environmental Protection Agency (EPA) is withdrawing 
the October 23, 2015 proposals for a federal plan to implement the 
greenhouse gas (GHG) emission guidelines (EGs) for existing fossil 
fuel-fired electric generating units (EGUs), for model trading rules 
for implementation of the EGs, and for amendments to the Clean Air Act 
(CAA) 111(d) framework regulations, and the June 30, 2016 proposed rule 
concerning design details of the Clean Energy Incentive Program (CEIP).

DATES: The proposed rule published on October 23, 2015 entitled 
``Federal Plan Requirements for Greenhouse Gas Emissions From Electric 
Utility Generating Units Constructed on or Before January 8, 2014; 
Model Trading Rules; Amendments to Framework Regulations.'' 80 FR 
64966, and the proposed rule published on June 30, 2016 entitled 
``Clean Energy Incentive Program Design Details,'' 81 FR 42940, are 
withdrawn as of April 3, 2017.

FOR FURTHER INFORMATION CONTACT: Mr. Peter Tsirigotis, Sector Policies 
and Programs Division (D205-01), U.S. Environmental Protection Agency, 
Research Triangle Park, NC 27711; telephone number: (888) 627-7764; 
email address: [email protected].

SUPPLEMENTARY INFORMATION:

1. Background

    On October 23, 2015, EPA published final carbon dioxide EGs under 
CAA 111(d) for existing EGUs, entitled ``Carbon Pollution Emission 
Guidelines for Existing Stationary Sources: Electric Utility Generating 
Units,'' 80 FR 64662 (October 23, 2015) (Clean Power Plan or CPP). On 
the same date, in connection with the CPP, EPA published a proposed 
rule for a federal plan to implement those guidelines, for model 
trading rules to aid implementation of the guidelines, and for 
amendments to

[[Page 16145]]

the existing framework regulations implementing CAA 111(d) ``Federal 
Plan Requirements for Greenhouse Gas Emissions From Electric Utility 
Generating Units Constructed on or Before January 8, 2014; Model 
Trading Rules; Amendments to Framework Regulations.'' 80 FR 64966 
(October 23, 2015) (the October 2015 Proposed Rule). Subsequently, on 
June 30, 2016, EPA published proposed design details of the Clean 
Energy Incentive Program (CEIP), an optional program that States could 
use to incentivize early emission reduction projects under the CPP. 
``Clean Energy Incentive Program Design Details,'' 81 FR 42940 (June 
30, 2016) (CEIP Proposed Rule). The EPA never finalized the October 
2015 Proposed Rule or the CEIP Proposed Rule, and is not doing so 
today. Instead, it is withdrawing them both.
    The CPP was promulgated under Section 111 of the CAA. 42 U.S.C. 
7411. Section 111 of the Clean Air Act authorizes the EPA to issue 
nationally applicable New Source Performance Standards (NSPS) limiting 
air pollution from ``new sources'' in source categories that cause or 
contribute to air pollution that may reasonably be anticipated to 
endanger public health or welfare. 42 U.S.C. Section 7411(b)(1). Under 
this authority, the EPA had long regulated new fossil fuel-fired power 
plants to limit air pollution other than carbon dioxide, including 
particulate matter (PM); nitrogen oxides (NOX) and sulfur 
dioxide (SO2). See 40 CFR part 60 subparts D, Da. In 2015, 
the EPA issued a rule that for the first time set carbon dioxide 
emissions limits for new fossil fuel-fired power plants. Standards of 
Performance for Greenhouse Gas Emissions From New, Modified, and 
Reconstructed Stationary Sources: Electric Utility Generating Units 
(New Source Rule), 80 FR 64510 (October 23, 2015). Under certain 
circumstances, when the EPA issues standards for new sources under 
Section 111(b), the EPA has the authority under Section 111(d), to 
prescribe regulations under which each State is to submit a plan to 
establish standards for existing sources in the same category. The EPA 
relied on that authority to issue the CPP, which for the first time 
required States to submit plans specifically designed to limit carbon 
dioxide emissions from existing fossil fuel-fired power plants.
    Due to concerns about EPA's legal authority and record, 24 States 
and a number of other parties sought judicial review of the New Source 
Rule in the U.S. Court of Appeals for the District of Columbia. State 
of North Dakota v. EPA, No. 15-1381 (and consolidated cases) (D.C. 
Cir.). Similarly, due to concerns about EPA's legal authority and 
record, 27 States and a number of other parties sought judicial review 
of the CPP in the D.C. Circuit. State of West Virginia v. EPA, No. 15-
1363 (and consolidated cases) (D.C. Cir.). On February 9, 2016, the 
Supreme Court stayed implementation of the CPP pending judicial review. 
Oral argument in the D.C. Circuit in North Dakota is currently 
scheduled for April 17, 2017. Following full merits briefing, oral 
argument in West Virginia was held before the D.C. Circuit, sitting en 
banc, on September 27, 2016. Both challenges to these rules are pending 
in the D.C. Circuit.

2. Energy Development Executive Order and Other Related Notices

    On March 28, 2017, President Trump issued an Executive Order 
establishing a national policy in favor of energy independence, 
economic growth, and the rule of law. The purpose of that Executive 
Order is to facilitate the development of U.S. energy resources and to 
reduce unnecessary regulatory burdens associated with the development 
of those resources. The President has directed agencies to review 
existing regulations that potentially burden the development of 
domestic energy resources, and appropriately suspend, revise, or 
rescind regulations that unduly burden the development of U.S. energy 
resources beyond what is necessary to protect the public interest or 
otherwise comply with the law. The Executive Order also directs 
agencies to take appropriate actions, to the extent permitted by law, 
to promote clean air and clean water while also respecting the proper 
roles of Congress and the States. This Executive Order specifically 
directs EPA to review and, if appropriate, initiate proceedings to 
suspend, revise or rescind the CPP.
    In EPA's notice announcing the initiation of its review of the CPP, 
EPA states that, if its review concludes that suspension, revision or 
rescission of the CPP may be appropriate, EPA's review will be followed 
by a rulemaking process that will be transparent, follow proper 
administrative procedures, include appropriate engagement with the 
public, employ sound science, and be firmly grounded in the law.

3. Why is the EPA withdrawing the October 2015 Proposed Rule and the 
CEIP Proposed Rule?

    The Executive Order directs the EPA to review the October 2015 
Proposed Rule and, if appropriate, as soon as practicable and 
consistent with law, consider revising or withdrawing the October 2015 
Proposed Rule. In anticipation of the Executive Order, the EPA had 
already begun a review of both the October 2015 Proposed Rule, and of 
the CEIP Proposed Rule, which proposes implementation details for a 
program that is directly connected to the CPP. In light of the policies 
set forth in the Executive Order and the Agency's concurrent notice 
initiating a review of the CPP, EPA has decided to withdraw the 
Proposed Rules, for the reasons discussed below.
    At this time, the EPA is not under an obligation to finalize these 
rulemakings, nor is there a time-sensitive need for them given the 
Supreme Court stay of the CPP. The October 2015 proposal and the CEIP 
proposal were issued at EPA's discretion to implement the 2015 CPP. 
First, the proposed model trading rules were designed to provide a 
sample for States wishing to adopt a trading program to implement the 
CPP. It was the CPP, however, that was designed to establish the 
binding requirements for state action, while the purpose of the 
proposed model rules was to give states examples of how to design an 
approvable program. While model rules may be helpful, they are not 
required under the CAA. Second, under the Clean Air Act's principles of 
cooperative federalism, hopefully a federal plan will never be needed 
to implement Section 111(d) emission guidelines, and a federal plan 
certainly is not statutorily required early in the implementation 
process, when the Agency's focus is to assist States in developing 
approvable state plans. Finally, the CEIP proposal provides details for 
a voluntary program that was designed to help States and tribes meet 
their CPP goals by removing barriers to investment in energy efficiency 
in low-income communities and encouraging early investments in zero-
emitting renewable energy generation. The CEIP is not required by the 
CAA. Furthermore, because the energy markets continue to change, the 
appropriateness of the details of the CEIP proposal are dependent on 
projected market conditions during the time period when it would apply. 
Changes in CPP compliance dates, including state plan submission dates, 
would likely necessitate a re-evaluation of the CEIP proposal details.
    When EPA initially made these proposals, it assumed that States 
needed immediate guidance to develop state plans because EPA had set 
state plan submission dates starting in September 2016. EPA also wanted 
to be prepared to institute a federal plan immediately if a State 
missed its submission date. Given the Supreme Court's stay of the CPP, 
however, the CPP compliance

[[Page 16146]]

dates must be reviewed. Indeed, the first state plan submission date 
has already passed, and other compliance dates are likely to pass while 
the Supreme Court stay is pending. Further, under the Supreme Court's 
stay of the CPP, States and other interested parties have not been 
required nor expected to work towards meeting the compliance dates set 
in the CPP. Thus, as the EPA conducts its review of the CPP and decides 
what further action to take on the EGU emission guidelines, EPA will 
ensure that any and all remaining compliance dates will be reasonable 
and appropriate in light of the Supreme Court stay of the CPP and other 
factors. Further state action will not be required unless and until 
there is resolution of the pending litigation or the EPA issues new EGU 
emission guidelines. This gives the EPA time to re-evaluate these CPP-
related proposals.
    The EPA believes it should use this time to re-evaluate these CPP-
related proposals and, if appropriate, put out re-proposals or new 
proposals to ensure that the public is commenting on EPA's most up-to-
date thinking on these issues. There are a number of reasons why these 
proposals may ultimately not reflect the Agency's reasoned policy 
decisions reflecting both the current state of the energy market and 
the agency's operative understanding of its statutory authority. First, 
the Agency has announced that it is reviewing and, as appropriate, may 
suspend, revise or rescind the CPP. Though our review of the CPP is 
ongoing and any final decision to suspend, revise or rescind it will be 
made only after EPA has provided notice and an opportunity for public 
comment, it is possible that the CPP as promulgated in 2015 will be 
rescinded and that new emission guidelines, if any, for existing EGUs 
will be different from the CPP. Because the CPP-related Proposed Rules 
are designed to provide implementation details related to the specific 
requirements of the CPP, any changes to the CPP or new emission 
guidelines would most likely require changes to these CPP-related 
proposals. Thus, this preliminary action to withdraw these CPP-related 
proposals will allow EPA to review them in light of its review of the 
CPP and, if they are still needed, to determine the appropriate next 
steps for these proposals, which may be to develop new proposals with 
revisions to ensure they are consistent with and appropriately 
implement revised emission guidelines, if any. Second, whether or not 
the EPA makes any changes as a result of its review of the CPP, it is 
appropriate for the EPA to re-evaluate the proposals in light of the 
policies set forth in the Executive Order and ensure that what the 
Agency proposes and seeks public comment on has been developed or 
reviewed in light of those policies.
    As a final point, we want to be clear that our withdrawal of these 
proposals is not based on any final substantive decision that we have 
made with respect to these proposals. We are withdrawing these 
proposals for the procedural reasons that we have discussed above to 
promote the EPA's review of the CPP and future rulemaking process, and 
ensure that interested parties have a full opportunity to comment on 
proposals that reflect the Agency's most up-to-date and relevant 
thinking. Thus, for the reasons stated above, EPA concludes that, at 
this time, it is appropriate to withdraw the October 2015 Proposed Rule 
and the CEIP Proposed Rule. The
    EPA intends to review these proposals in conjunction with its 
comprehensive review of the CPP. Based on that review, the Agency will 
determine how best to proceed, which may include the development of new 
proposals consistent with the requirements of CAA Section 307(d).

4. Statutory Authority

    Pursuant to CAA Section 307(d)(1)(V), the Administrator is 
determining that this withdrawal is subject to the provisions of CAA 
Section 307(d). The statutory authority for this notice is provided by 
Sections 111, 301 and 307(d) of the CAA as amended (42 U.S.C. 7411, 
7601 and 7607(d)).

5. Impact Analysis

    Because the EPA is not promulgating any regulatory requirements, 
there are no compliance costs or impacts associated with today's final 
action.

6. Statutory and Executive Order Reviews

    Today's action does not establish new regulatory requirements. 
Hence, the requirements of other regulatory statutes and Executive 
Orders that generally apply to rulemakings (e.g., the Unfunded Mandate 
Reform Act) do not apply to this action.

    Dated: March 28, 2017.
E. Scott Pruitt,
Administrator.
[FR Doc. 2017-06518 Filed 3-31-17; 8:45 am]
BILLING CODE 6560-50-P



                                                    16144                     Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules

                                                      We accept anonymous comments. All                     associated with the lava flow at the                  ENVIRONMENTAL PROTECTION
                                                    comments received will be posted                        Kamokuna lava delta.                                  AGENCY
                                                    without change to http://                                  (b) Enforcement period. The COTP
                                                    www.regulations.gov and will include                                                                          40 CFR Part 60
                                                                                                            Honolulu will establish the enforcement
                                                    any personal information you have                       dates that will be announced with a                   [FRL9961–12–OAR]
                                                    provided. For more about privacy and
                                                                                                            notice of enforcement of regulations
                                                    the docket, you may review a Privacy                                                                          Withdrawal of Proposed Rules: Federal
                                                                                                            published in the Federal Register. The
                                                    Act notice regarding the Federal Docket                                                                       Plan Requirements for Greenhouse
                                                    Management System in the March 24,                      enforcement dates will also be
                                                                                                            announced with a Broadcast Notice to                  Gas Emissions From Electric Utility
                                                    2005, issue of the Federal Register (70                                                                       Generating Units Constructed on or
                                                    FR 15086).                                              Mariners, Local Notice to Mariners, and
                                                                                                                                                                  Before January 8, 2014; Model Trading
                                                      Documents mentioned in this NPRM                      Outreach.
                                                                                                                                                                  Rules; Amendments to Framework
                                                    as being available in the docket, and all                  (c) Regulations. The general                       Regulations; and Clean Energy
                                                    public comments, will be in our online                  regulations governing safety zones                    Incentive Program Design Details
                                                    docket at http://www.regulations.gov                    contained in § 165.23 apply to the safety
                                                    and can be viewed by following that                     zone created by this rule.                            AGENCY: Environmental Protection
                                                    Web site’s instructions. Additionally, if                                                                     Agency (EPA).
                                                                                                               (1) All persons and vessels are
                                                    you go to the online docket and sign up                                                                       ACTION: Withdrawal of proposed rules.
                                                    for email alerts, you will be notified                  required to comply with the general
                                                    when comments are posted or a final                     regulations governing safety zones                    SUMMARY:   The U.S. Environmental
                                                    rule is published.                                      found in this part.                                   Protection Agency (EPA) is withdrawing
                                                      We plan to hold one public meeting                       (2) Entry into or remaining in this                the October 23, 2015 proposals for a
                                                    on May 08, 2017 at 5 p.m. at the East                   safety zone is prohibited unless                      federal plan to implement the
                                                    Hawaii County Building (Hilo) Aupuni                    authorized by the COTP Honolulu or his                greenhouse gas (GHG) emission
                                                    Center Conference Room located at 101                   designated representative.                            guidelines (EGs) for existing fossil fuel-
                                                    Pauahi St. #7, Hilo, Hawaii 96720. For                                                                        fired electric generating units (EGUs),
                                                                                                               (3) Persons or vessels desiring to                 for model trading rules for
                                                    information on facilities or services for
                                                                                                            transit the safety zone identified in                 implementation of the EGs, and for
                                                    individuals with disabilities or to
                                                    request special assistance at the public                paragraph (a) of this section may contact             amendments to the Clean Air Act (CAA)
                                                    meeting, contact the person named in                    the COTP of Honolulu through his                      111(d) framework regulations, and the
                                                    the FOR FURTHER INFORMATION CONTACT                     designated representatives at the                     June 30, 2016 proposed rule concerning
                                                    section, above.                                         Command Center via telephone: (808)                   design details of the Clean Energy
                                                                                                            842–2600 and (808) 842–2601; fax: (808)               Incentive Program (CEIP).
                                                    List of Subjects in 33 CFR Part 165                     842–2642; or on VHF channel 16 (156.8                 DATES: The proposed rule published on
                                                      Harbors, Marine safety, Navigation                    Mhz) to request permission to transit the             October 23, 2015 entitled ‘‘Federal Plan
                                                    (water), Reporting and recordkeeping                    safety zone. If permission is granted, all            Requirements for Greenhouse Gas
                                                    requirements, Security measures,                        persons and vessels must comply with                  Emissions From Electric Utility
                                                    Waterways.                                              the instructions of the COTP Honolulu                 Generating Units Constructed on or
                                                      For the reasons discussed in the                      or his designated representative and                  Before January 8, 2014; Model Trading
                                                    preamble, the Coast Guard proposes to                   proceed at the minimum speed                          Rules; Amendments to Framework
                                                    amend 33 CFR part 165 as follows:                       necessary to maintain a safe course                   Regulations.’’ 80 FR 64966, and the
                                                                                                            while in the safety zone.                             proposed rule published on June 30,
                                                    PART 165—REGULATED NAVIGATION                                                                                 2016 entitled ‘‘Clean Energy Incentive
                                                    AREAS AND LIMITED ACCESS AREAS                             (4) The U.S. Coast Guard may be
                                                                                                            assisted in the patrol and enforcement                Program Design Details,’’ 81 FR 42940,
                                                    ■ 1. The authority citation for part 165                of the safety zone by Federal, State, and             are withdrawn as of April 3, 2017.
                                                    continues to read as follows:                           local agencies.                                       FOR FURTHER INFORMATION CONTACT: Mr.
                                                                                                                                                                  Peter Tsirigotis, Sector Policies and
                                                      Authority: 33 U.S.C. 1231; 50 U.S.C. 191;                (d) Notice of enforcement. The COTP                Programs Division (D205–01), U.S.
                                                    33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;               Honolulu will provide notice of
                                                    Department of Homeland Security Delegation                                                                    Environmental Protection Agency,
                                                                                                            enforcement of the safety zone                        Research Triangle Park, NC 27711;
                                                    No. 0170.1.
                                                                                                            described in this section by verbal radio             telephone number: (888) 627–7764;
                                                    ■   2. Add § 165.1414 to read as follows:               broadcasts and written notice to                      email address: airaction@epa.gov.
                                                    § 165.1414 Safety Zone; Pacific Ocean,                  mariners.                                             SUPPLEMENTARY INFORMATION:
                                                    Kilauea Lava Flow Ocean Entry on                           (e) Definitions. As used in this
                                                    Southeast Side of Island of Hawaii, HI.                                                                       1. Background
                                                                                                            section, ‘‘designated representative’’
                                                       (a) Location. The safety zone area is                means any Coast Guard commissioned,                      On October 23, 2015, EPA published
                                                    located within the COTP Zone (See 33                    warrant, or petty officer who has been                final carbon dioxide EGs under CAA
                                                    CFR 3.70–10) and encompasses one                        authorized by the COTP to assist in                   111(d) for existing EGUs, entitled
                                                    primary area from the surface of the                    enforcing the safety zone described in                ‘‘Carbon Pollution Emission Guidelines
                                                    water to the ocean floor at the Kilauea                                                                       for Existing Stationary Sources: Electric
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                                                                            paragraph (a) of this section.
                                                    active lava flow entry into the Pacific                                                                       Utility Generating Units,’’ 80 FR 64662
                                                    Ocean on the southeast side of the                        Dated: March 28, 2017.                              (October 23, 2015) (Clean Power Plan or
                                                    Island of Hawaii, HI. The entry point of                M.C. Long,                                            CPP). On the same date, in connection
                                                    the lava does change based on flow,                     Captain, U.S. Coast Guard, Captain of the             with the CPP, EPA published a
                                                    however the safety zone will encompass                  Port Honolulu.                                        proposed rule for a federal plan to
                                                    all waters extending 300 meters (984                    [FR Doc. 2017–06474 Filed 3–31–17; 8:45 am]           implement those guidelines, for model
                                                    feet) in all directions around the entry                BILLING CODE 9110–04–P                                trading rules to aid implementation of
                                                    point of lava flow into the ocean                                                                             the guidelines, and for amendments to


                                               VerDate Sep<11>2014   16:05 Mar 31, 2017   Jkt 241001   PO 00000   Frm 00007   Fmt 4702   Sfmt 4702   E:\FR\FM\03APP1.SGM   03APP1


                                                                              Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules                                           16145

                                                    the existing framework regulations                      about EPA’s legal authority and record,               anticipation of the Executive Order, the
                                                    implementing CAA 111(d) ‘‘Federal                       27 States and a number of other parties               EPA had already begun a review of both
                                                    Plan Requirements for Greenhouse Gas                    sought judicial review of the CPP in the              the October 2015 Proposed Rule, and of
                                                    Emissions From Electric Utility                         D.C. Circuit. State of West Virginia v.               the CEIP Proposed Rule, which
                                                    Generating Units Constructed on or                      EPA, No. 15–1363 (and consolidated                    proposes implementation details for a
                                                    Before January 8, 2014; Model Trading                   cases) (D.C. Cir.). On February 9, 2016,              program that is directly connected to the
                                                    Rules; Amendments to Framework                          the Supreme Court stayed                              CPP. In light of the policies set forth in
                                                    Regulations.’’ 80 FR 64966 (October 23,                 implementation of the CPP pending                     the Executive Order and the Agency’s
                                                    2015) (the October 2015 Proposed Rule).                 judicial review. Oral argument in the                 concurrent notice initiating a review of
                                                    Subsequently, on June 30, 2016, EPA                     D.C. Circuit in North Dakota is currently             the CPP, EPA has decided to withdraw
                                                    published proposed design details of the                scheduled for April 17, 2017. Following               the Proposed Rules, for the reasons
                                                    Clean Energy Incentive Program (CEIP),                  full merits briefing, oral argument in                discussed below.
                                                    an optional program that States could                   West Virginia was held before the D.C.                   At this time, the EPA is not under an
                                                    use to incentivize early emission                       Circuit, sitting en banc, on September                obligation to finalize these rulemakings,
                                                    reduction projects under the CPP.                       27, 2016. Both challenges to these rules              nor is there a time-sensitive need for
                                                    ‘‘Clean Energy Incentive Program Design                 are pending in the D.C. Circuit.                      them given the Supreme Court stay of
                                                    Details,’’ 81 FR 42940 (June 30, 2016)                                                                        the CPP. The October 2015 proposal and
                                                                                                            2. Energy Development Executive Order                 the CEIP proposal were issued at EPA’s
                                                    (CEIP Proposed Rule). The EPA never
                                                                                                            and Other Related Notices                             discretion to implement the 2015 CPP.
                                                    finalized the October 2015 Proposed
                                                    Rule or the CEIP Proposed Rule, and is                     On March 28, 2017, President Trump                 First, the proposed model trading rules
                                                    not doing so today. Instead, it is                      issued an Executive Order establishing                were designed to provide a sample for
                                                    withdrawing them both.                                  a national policy in favor of energy                  States wishing to adopt a trading
                                                       The CPP was promulgated under                        independence, economic growth, and                    program to implement the CPP. It was
                                                    Section 111 of the CAA. 42 U.S.C. 7411.                 the rule of law. The purpose of that                  the CPP, however, that was designed to
                                                    Section 111 of the Clean Air Act                        Executive Order is to facilitate the                  establish the binding requirements for
                                                    authorizes the EPA to issue nationally                  development of U.S. energy resources                  state action, while the purpose of the
                                                    applicable New Source Performance                       and to reduce unnecessary regulatory                  proposed model rules was to give states
                                                    Standards (NSPS) limiting air pollution                 burdens associated with the                           examples of how to design an
                                                    from ‘‘new sources’’ in source categories               development of those resources. The                   approvable program. While model rules
                                                    that cause or contribute to air pollution               President has directed agencies to                    may be helpful, they are not required
                                                    that may reasonably be anticipated to                   review existing regulations that                      under the CAA. Second, under the
                                                    endanger public health or welfare. 42                   potentially burden the development of                 Clean Air Act’s principles of
                                                    U.S.C. Section 7411(b)(1). Under this                   domestic energy resources, and                        cooperative federalism, hopefully a
                                                    authority, the EPA had long regulated                   appropriately suspend, revise, or                     federal plan will never be needed to
                                                    new fossil fuel-fired power plants to                   rescind regulations that unduly burden                implement Section 111(d) emission
                                                    limit air pollution other than carbon                   the development of U.S. energy                        guidelines, and a federal plan certainly
                                                    dioxide, including particulate matter                   resources beyond what is necessary to                 is not statutorily required early in the
                                                    (PM); nitrogen oxides (NOX) and sulfur                  protect the public interest or otherwise              implementation process, when the
                                                    dioxide (SO2). See 40 CFR part 60                       comply with the law. The Executive                    Agency’s focus is to assist States in
                                                    subparts D, Da. In 2015, the EPA issued                 Order also directs agencies to take                   developing approvable state plans.
                                                    a rule that for the first time set carbon               appropriate actions, to the extent                    Finally, the CEIP proposal provides
                                                    dioxide emissions limits for new fossil                 permitted by law, to promote clean air                details for a voluntary program that was
                                                    fuel-fired power plants. Standards of                   and clean water while also respecting                 designed to help States and tribes meet
                                                    Performance for Greenhouse Gas                          the proper roles of Congress and the                  their CPP goals by removing barriers to
                                                    Emissions From New, Modified, and                       States. This Executive Order specifically             investment in energy efficiency in low-
                                                    Reconstructed Stationary Sources:                       directs EPA to review and, if                         income communities and encouraging
                                                    Electric Utility Generating Units (New                  appropriate, initiate proceedings to                  early investments in zero-emitting
                                                    Source Rule), 80 FR 64510 (October 23,                  suspend, revise or rescind the CPP.                   renewable energy generation. The CEIP
                                                    2015). Under certain circumstances,                        In EPA’s notice announcing the                     is not required by the CAA.
                                                    when the EPA issues standards for new                   initiation of its review of the CPP, EPA              Furthermore, because the energy
                                                    sources under Section 111(b), the EPA                   states that, if its review concludes that             markets continue to change, the
                                                    has the authority under Section 111(d),                 suspension, revision or rescission of the             appropriateness of the details of the
                                                    to prescribe regulations under which                    CPP may be appropriate, EPA’s review                  CEIP proposal are dependent on
                                                    each State is to submit a plan to                       will be followed by a rulemaking                      projected market conditions during the
                                                    establish standards for existing sources                process that will be transparent, follow              time period when it would apply.
                                                    in the same category. The EPA relied on                 proper administrative procedures,                     Changes in CPP compliance dates,
                                                    that authority to issue the CPP, which                  include appropriate engagement with                   including state plan submission dates,
                                                    for the first time required States to                   the public, employ sound science, and                 would likely necessitate a re-evaluation
                                                    submit plans specifically designed to                   be firmly grounded in the law.                        of the CEIP proposal details.
                                                    limit carbon dioxide emissions from                                                                              When EPA initially made these
                                                                                                            3. Why is the EPA withdrawing the                     proposals, it assumed that States needed
                                                    existing fossil fuel-fired power plants.
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                       Due to concerns about EPA’s legal                    October 2015 Proposed Rule and the                    immediate guidance to develop state
                                                    authority and record, 24 States and a                   CEIP Proposed Rule?                                   plans because EPA had set state plan
                                                    number of other parties sought judicial                    The Executive Order directs the EPA                submission dates starting in September
                                                    review of the New Source Rule in the                    to review the October 2015 Proposed                   2016. EPA also wanted to be prepared
                                                    U.S. Court of Appeals for the District of               Rule and, if appropriate, as soon as                  to institute a federal plan immediately
                                                    Columbia. State of North Dakota v. EPA,                 practicable and consistent with law,                  if a State missed its submission date.
                                                    No. 15–1381 (and consolidated cases)                    consider revising or withdrawing the                  Given the Supreme Court’s stay of the
                                                    (D.C. Cir.). Similarly, due to concerns                 October 2015 Proposed Rule. In                        CPP, however, the CPP compliance


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                                                    16146                     Federal Register / Vol. 82, No. 62 / Monday, April 3, 2017 / Proposed Rules

                                                    dates must be reviewed. Indeed, the first               evaluate the proposals in light of the                ENVIRONMENTAL PROTECTION
                                                    state plan submission date has already                  policies set forth in the Executive Order             AGENCY
                                                    passed, and other compliance dates are                  and ensure that what the Agency
                                                    likely to pass while the Supreme Court                  proposes and seeks public comment on                  40 CFR Part 68
                                                    stay is pending. Further, under the                     has been developed or reviewed in light               [EPA–HQ–OEM–2015–0725; FRL–9960–44–
                                                    Supreme Court’s stay of the CPP, States                 of those policies.                                    OLEM]
                                                    and other interested parties have not
                                                                                                               As a final point, we want to be clear              RIN 2050–AG91
                                                    been required nor expected to work
                                                    towards meeting the compliance dates                    that our withdrawal of these proposals
                                                                                                            is not based on any final substantive                 Accidental Release Prevention
                                                    set in the CPP. Thus, as the EPA
                                                                                                            decision that we have made with                       Requirements: Risk Management
                                                    conducts its review of the CPP and
                                                                                                            respect to these proposals. We are                    Programs Under the Clean Air Act;
                                                    decides what further action to take on
                                                                                                            withdrawing these proposals for the                   Further Delay of Effective Date
                                                    the EGU emission guidelines, EPA will
                                                    ensure that any and all remaining                       procedural reasons that we have                       AGENCY:  Environmental Protection
                                                    compliance dates will be reasonable and                 discussed above to promote the EPA’s                  Agency (EPA).
                                                    appropriate in light of the Supreme                     review of the CPP and future                          ACTION: Proposed rule.
                                                    Court stay of the CPP and other factors.                rulemaking process, and ensure that
                                                    Further state action will not be required               interested parties have a full                        SUMMARY:    The Environmental Protection
                                                    unless and until there is resolution of                 opportunity to comment on proposals                   Agency (EPA) is proposing to delay the
                                                    the pending litigation or the EPA issues                that reflect the Agency’s most up-to-date             effective date of the final rule that
                                                    new EGU emission guidelines. This                       and relevant thinking. Thus, for the                  amends the Risk Management Program
                                                    gives the EPA time to re-evaluate these                 reasons stated above, EPA concludes                   regulations under the Clean Air Act
                                                    CPP-related proposals.                                  that, at this time, it is appropriate to              published in the Federal Register on
                                                       The EPA believes it should use this                  withdraw the October 2015 Proposed                    January 13, 2017. On March 16, 2017,
                                                    time to re-evaluate these CPP-related                   Rule and the CEIP Proposed Rule. The                  the EPA published in the Federal
                                                    proposals and, if appropriate, put out re-                                                                    Register a stay and delay of the effective
                                                                                                               EPA intends to review these proposals              date pending reconsideration to June 19,
                                                    proposals or new proposals to ensure                    in conjunction with its comprehensive
                                                    that the public is commenting on EPA’s                                                                        2017. The EPA is proposing to further
                                                                                                            review of the CPP. Based on that review,              delay the effective date to February 19,
                                                    most up-to-date thinking on these                       the Agency will determine how best to
                                                    issues. There are a number of reasons                                                                         2019. This action would allow the
                                                                                                            proceed, which may include the                        Agency time to consider petitions for
                                                    why these proposals may ultimately not
                                                                                                            development of new proposals                          reconsideration of this final rule and
                                                    reflect the Agency’s reasoned policy
                                                    decisions reflecting both the current                   consistent with the requirements of                   take further regulatory action, which
                                                    state of the energy market and the                      CAA Section 307(d).                                   could include proposing and finalizing
                                                    agency’s operative understanding of its                                                                       a rule to revise the Risk Management
                                                                                                            4. Statutory Authority
                                                    statutory authority. First, the Agency                                                                        Program amendments.
                                                    has announced that it is reviewing and,                   Pursuant to CAA Section 307(d)(1)(V),               DATES:
                                                    as appropriate, may suspend, revise or                  the Administrator is determining that                    Comments. Written comments must
                                                    rescind the CPP. Though our review of                   this withdrawal is subject to the                     be received by May 19, 2017.
                                                    the CPP is ongoing and any final                        provisions of CAA Section 307(d). The                    Public Hearing. The EPA will hold a
                                                    decision to suspend, revise or rescind it               statutory authority for this notice is                public hearing on this proposed rule on
                                                    will be made only after EPA has                         provided by Sections 111, 301 and                     April 19, 2017 in Washington, DC.
                                                    provided notice and an opportunity for                  307(d) of the CAA as amended (42                      ADDRESSES:
                                                    public comment, it is possible that the                 U.S.C. 7411, 7601 and 7607(d)).                          Comments. Submit your comments,
                                                    CPP as promulgated in 2015 will be                                                                            identified by Docket ID No. EPA–HQ–
                                                    rescinded and that new emission                         5. Impact Analysis                                    OEM–2015–0725, at http://
                                                    guidelines, if any, for existing EGUs will                                                                    www.regulations.gov. Follow the online
                                                                                                              Because the EPA is not promulgating
                                                    be different from the CPP. Because the                                                                        instructions for submitting comments.
                                                                                                            any regulatory requirements, there are
                                                    CPP-related Proposed Rules are                                                                                Once submitted, comments cannot be
                                                    designed to provide implementation                      no compliance costs or impacts                        edited or removed from Regulations.gov.
                                                    details related to the specific                         associated with today’s final action.                 The EPA may publish any comment
                                                    requirements of the CPP, any changes to                 6. Statutory and Executive Order                      received to its public docket. Do not
                                                    the CPP or new emission guidelines                      Reviews                                               submit electronically any information
                                                    would most likely require changes to                                                                          you consider to be Confidential
                                                    these CPP-related proposals. Thus, this                   Today’s action does not establish new               Business Information (CBI) or other
                                                    preliminary action to withdraw these                    regulatory requirements. Hence, the                   information whose disclosure is
                                                    CPP-related proposals will allow EPA to                 requirements of other regulatory statutes             restricted by statute. Multimedia
                                                    review them in light of its review of the               and Executive Orders that generally                   submissions (audio, video, etc.) must be
                                                    CPP and, if they are still needed, to                   apply to rulemakings (e.g., the                       accompanied by a written comment.
                                                    determine the appropriate next steps for                Unfunded Mandate Reform Act) do not                   The written comment is considered the
mstockstill on DSK3G9T082PROD with PROPOSALS




                                                    these proposals, which may be to                        apply to this action.                                 official comment and should include
                                                    develop new proposals with revisions to                                                                       discussion of all points you wish to
                                                                                                              Dated: March 28, 2017.
                                                    ensure they are consistent with and                                                                           make. The EPA will generally not
                                                    appropriately implement revised                         E. Scott Pruitt,                                      consider comments or comment
                                                    emission guidelines, if any. Second,                    Administrator.                                        contents located outside of the primary
                                                    whether or not the EPA makes any                        [FR Doc. 2017–06518 Filed 3–31–17; 8:45 am]           submission (i.e. on the web, cloud, or
                                                    changes as a result of its review of the                BILLING CODE 6560–50–P                                other file sharing system). For
                                                    CPP, it is appropriate for the EPA to re-                                                                     additional submission methods, the full


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Document Created: 2017-04-01 09:36:16
Document Modified: 2017-04-01 09:36:16
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
ActionWithdrawal of proposed rules.
DatesThe proposed rule published on October 23, 2015 entitled ``Federal Plan Requirements for Greenhouse Gas Emissions From Electric Utility Generating Units Constructed on or Before January 8, 2014; Model Trading Rules; Amendments to Framework Regulations.'' 80 FR 64966, and the proposed rule published on June 30, 2016 entitled ``Clean Energy Incentive Program Design Details,'' 81 FR 42940, are withdrawn as of April 3, 2017.
ContactMr. Peter Tsirigotis, Sector Policies and Programs Division (D205-01), U.S. Environmental Protection Agency, Research Triangle Park, NC 27711; telephone number: (888) 627-7764;
FR Citation82 FR 16144 

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