83_FR_7746 83 FR 7710 - Response to June 1, 2016 Clean Air Act Section 126(b) Petition From Connecticut

83 FR 7710 - Response to June 1, 2016 Clean Air Act Section 126(b) Petition From Connecticut

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 36 (February 22, 2018)

Page Range7710-7719
FR Document2018-03679

The Environmental Protection Agency (EPA) is proposing to deny a section 126(b) petition submitted by the state of Connecticut pursuant to the Clean Air Act (CAA or Act) on June 1, 2016. The petition requested that EPA make a finding that emissions from Brunner Island Steam Electric Station (Brunner Island), located in York County, Pennsylvania, are significantly contributing to nonattainment and interfering with maintenance of the 2008 ozone national ambient air quality standards (NAAQS) in Connecticut in violation of the good neighbor provision under the CAA. The EPA proposes to deny the petition because Connecticut has not met its burden to demonstrate that the source emits or would emit in violation of the good neighbor provision such that it will significantly contribute to nonattainment or interfere with maintenance of the 2008 ozone NAAQS in Connecticut. The EPA is further proposing to deny the petition based on the conclusion that the Brunner Island facility does not currently emit nor is it expected to emit pollution in violation of the good neighbor provision for the 2008 ozone NAAQS.

Federal Register, Volume 83 Issue 36 (Thursday, February 22, 2018)
[Federal Register Volume 83, Number 36 (Thursday, February 22, 2018)]
[Notices]
[Pages 7710-7719]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-03679]


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ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2016-0347; FRL-9974-80-OAR]
RIN 2060-AT35


Response to June 1, 2016 Clean Air Act Section 126(b) Petition 
From Connecticut

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed action on petition.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to deny 
a section 126(b) petition submitted by the state of Connecticut 
pursuant to the Clean Air Act (CAA or Act) on June 1, 2016. The 
petition requested that EPA make a finding that emissions from Brunner 
Island Steam Electric Station (Brunner Island), located in York County, 
Pennsylvania, are significantly contributing to nonattainment and 
interfering with maintenance of the 2008 ozone national ambient air 
quality standards (NAAQS) in Connecticut in violation of the good 
neighbor provision under the CAA. The EPA proposes to deny the petition 
because Connecticut has not met its burden to demonstrate that the 
source emits or would emit in violation of the good neighbor provision 
such that it will significantly contribute to nonattainment or 
interfere with maintenance of the 2008 ozone NAAQS in Connecticut. The 
EPA is further proposing to deny the petition based on the conclusion 
that the Brunner Island facility does not currently emit nor is it 
expected to emit pollution in violation of the good neighbor provision 
for the 2008 ozone NAAQS.

DATES: Comments. Comments must be received on or before March 26, 2018. 
Public Hearing. The EPA is holding a public hearing on the EPA's 
response to the June 1, 2016, CAA section 126(b) petition from 
Connecticut on Friday, February 23, 2018. Additional information for 
this public hearing is available in a separate Federal Register notice 
published on February 14, 2018 (83 FR 6490).

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2016-0347, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e., on the Web, Cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Questions concerning this proposed 
notice should be directed to Mr. Lev Gabrilovich, U.S. Environmental 
Protection Agency, Office of Air Quality Planning and Standards, Air 
Quality Policy Division, Mail Code C539-01, Research Triangle Park, NC 
27711, telephone (919) 541-1496; email at [email protected].

SUPPLEMENTARY INFORMATION: 
    The information in this document is organized as follows:

I. General Information
II. Background and Legal Authority
    A. Ozone and Public Health
    B. Clean Air Act Sections 110 and 126
    C. The EPA's Historical Approach to Addressing Interstate 
Transport of Ozone under the Good Neighbor Provision
    D. The June 2016 CAA Section 126(b) Petition from Connecticut
    E. The Brunner Island Facility
III. The EPA's Proposed Decision on Connecticut's CAA Section 126(b) 
Petition
    A. The EPA's Approach for Granting or Denying CAA Section 126(b) 
Petitions Regarding the 2008 8-hour Ozone NAAQS
    B. The EPA's Proposal to Deny Connecticut's CAA Section 126(b) 
Petition
IV. Statutory Authority

[[Page 7711]]

I. General Information

    Throughout this document wherever ``we,'' ``us,'' or ``our'' is 
used, we mean the U.S. EPA. Where can I get a copy of this document and 
other related information?
    The EPA has established a docket for this action under Docket ID 
No. EPA-HQ-OAR-2016-0347 (available at http://www.regulations.gov). The 
EPA has made available information related to the proposed action and 
the public hearing at website: https://www.epa.gov/ozone-pollution/connecticut-126-petition.

II. Background and Legal Authority

A. Ozone and Public Health

    Ground-level ozone is not emitted directly into the air, but is a 
secondary air pollutant created by chemical reactions between oxides of 
nitrogen (NOX) and volatile organic compounds (VOCs) in the 
presence of sunlight. For a discussion of ozone-formation chemistry, 
interstate transport issues, and health effects, see the Cross-State 
Air Pollution Rule Update for the 2008 Ozone NAAQS. 81 FR 74504, 74513-
4.

B. Clean Air Act Sections 110 and 126

    The statutory authority for this action is provided by the CAA 
sections 126 and 110(a)(2)(D)(i). Section 126(b) of the CAA provides, 
among other things, that any state or political subdivision may 
petition the Administrator of the EPA to find that any major source or 
group of stationary sources in an upwind state emits or would emit any 
air pollutant in violation of the prohibition of CAA section 
110(a)(2)(D)(i),\1\ which we describe later in detail. Findings by the 
Administrator, pursuant to this section, that a source or group of 
sources emits air pollutants in violation of the CAA section 
110(a)(2)(D)(i) prohibition are commonly referred to as section CAA 
126(b) findings. Similarly, petitions submitted pursuant to this 
section are commonly referred to as CAA section 126(b) petitions.
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    \1\ The text of CAA section 126 codified in the U.S. Code cross-
references section 110(a)(2)(D)(ii) instead of section 
110(a)(2)(D)(i). The courts have confirmed that this is a 
scrivener's error and the correct cross-reference is to CAA section 
110(a)(2)(D)(i), See Appalachian Power Co. v. EPA, 249 F.3d 1032, 
1040-44 (DC Cir. 2001).
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    CAA section 126(c) explains the impact of a CAA section 126(b) 
finding and establishes the conditions under which continued operation 
of a source subject to such a finding may be permitted. Specifically, 
CAA section 126(c) provides that it would be a violation of section 126 
of the Act and of the applicable state implementation plan (SIP): (1) 
For any major proposed new or modified source subject to a CAA section 
126(b) finding to be constructed or operate in violation of the 
prohibition of CAA section 110(a)(2)(D)(i); or (2) for any major 
existing source for which such a finding has been made to operate more 
than three months after the date of the finding. The statute, however, 
also gives the Administrator discretion to permit the continued 
operation of a source beyond 3 months if the source complies with 
emission limitations and compliance schedules provided by the EPA to 
bring about compliance with the requirements contained in CAA sections 
110(a)(2)(D)(i) and 126 as expeditiously as practicable but no later 
than 3 years from the date of the finding. Id.
    Section 126(b) of the CAA provides a mechanism for states and other 
political subdivisions to seek abatement of pollution in other states 
that may be affecting their air quality; however, it does not identify 
specific criteria or a specific methodology for the Administrator to 
apply when deciding whether to make a section 126(b) finding or deny a 
petition. Therefore, the EPA has discretion to identify relevant 
criteria and develop a reasonable methodology for determining whether a 
section 126(b) finding should be made. See, e.g., Chevron, U.S.A., Inc. 
v. NRDC, 467 U.S. 837, 842-43 (1984); Smiley v. Citibank, 517 U.S. 735, 
744-45 (1996). As an initial matter, the EPA's historic approach to 
evaluating CAA section 126(b) petitions looks first to see whether a 
petition identifies or establishes a technical basis for the requested 
section 126(b) finding. The EPA first evaluates the technical analysis 
in the petition to see if that analysis, standing alone, is sufficient 
to support a section 126(b) finding. The EPA focuses on the analysis in 
the petition because the statute does not require the EPA to conduct an 
independent technical analysis to evaluate claims made in section 
126(b) petitions. The petitioner thus bears the burden of establishing, 
as an initial matter, a technical basis for the specific finding 
requested. The EPA has no obligation to prepare an analysis to 
supplement a petition that fails, on its face, to include an initial 
technical demonstration. Such a petition, or a petition that fails to 
identify the specific finding requested, could be found insufficient.
    Nonetheless, the EPA may decide to conduct independent analyses 
when helpful in evaluating the basis for a potential section 126(b) 
finding or developing a remedy if a finding is made. As explained 
later, given the EPA's concerns with the technical information 
submitted as part of Connecticut's CAA section 126(b) petition, and the 
fact that the EPA has previously issued a rulemaking defining and at 
least partially addressing the same environmental concern that the 
petition seeks to address, the EPA determined that it was appropriate 
to conduct independent analysis to determine whether it should grant or 
deny the petition. Such analysis, however, is not required by the 
statute and may not be necessary or appropriate in other circumstances.
    Section 110(a)(2)(D)(i) of the CAA, often referred to as the ``good 
neighbor'' or ``interstate transport'' provision of the Act, requires 
states to prohibit certain emissions from in-state sources if such 
emissions impact the air quality in downwind states. Specifically, CAA 
sections 110(a)(1) and 110(a)(2)(D)(i)(I) requires all states, within 3 
years of promulgation of a new or revised NAAQS, to submit SIPs that 
contain adequate provisions prohibiting any source or other type of 
emissions activity within the state from emitting any air pollutant in 
amounts which will contribute significantly to nonattainment in, or 
interfere with maintenance by, any other state with respect to any such 
national primary or secondary ambient air quality standard. As 
described further in section II.C, the EPA has developed a number of 
regional rulemakings to address CAA section 110(a)(2)(D)(i)(I) for the 
ozone NAAQS. The EPA's most recent rulemaking, the Cross-State Air 
Pollution Rule Update (CSAPR Update), was promulgated to address 
interstate transport under section 110(a)(2)(D)(i)(I) for the 2008 
ozone NAAQS. 81 FR 74504 (October 26, 2016).
    Considering both section 110(a)(2)(D)(i) and section 126, the EPA 
has consistently acknowledged that Congress created these provisions as 
two independent statutory tools to address the problem of interstate 
pollution transport. See, e.g., 76 FR 69052, 69054 (November 7, 
2011).\2\ Congress provided both provisions without indicating any 
preference for one over the other, suggesting it viewed either approach 
as a legitimate means to produce the desired result. While the two 
provisions unquestionably may be applied independently, they are also 
closely linked in that a violation of the prohibition in CAA section

[[Page 7712]]

110(a)(2)(D)(i) is a condition precedent for action under CAA section 
126(b) and, critically, that significant contribution and interference 
with maintenance are construed identically for purposes of both 
provisions (since the identical terms are naturally interpreted as 
meaning the same thing in the two linked provisions). See Appalachian 
Power Co. v EPA, 249 F. 3d at 1049-50. Thus, in interpreting the phrase 
``emits or would emit in violation of the prohibition of section 
[110(a)(2)(D)(i)],'' if the EPA or a state has adopted provisions that 
eliminate the significant contribution to nonattainment or interference 
with maintenance in downwind states, then there simply is no violation 
of the CAA section 110(a)(2)(D)(i)(I) prohibition. Put another way, 
requiring additional reductions would result in eliminating emissions 
that do not contribute significantly to nonattainment or interfere with 
maintenance of the NAAQS, an action beyond the scope of the prohibition 
in CAA section 110(a)(2)(D)(i)(I) and therefore beyond the scope of 
EPA's authority to make the requested finding under CAA section 126(b). 
See EPA v. EME Homer City Generation, L.P., 134 S. Ct. 1584, 1604 n.18, 
1608-09 (2014) (holding the EPA may not require sources in upwind 
states to reduce emissions by more than necessary to eliminate 
significant contribution to nonattainment or interference with 
maintenance of the NAAQS in downwind states under the good neighbor 
provision).
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    \2\ Courts have also upheld the EPA's position that CAA sections 
110(a)(2)(D)(i) and section 126 are two independent statutory tools 
to address the same problem of interstate transport. See GenOn REMA, 
LLC v. EPA, 722 F.3d 513, 520-23 (3d Cir. 2013); Appalachian Power 
Co. v. EPA, 249 F.3d at 1047.
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    Thus, it follows that if a state already has a SIP that the EPA 
approved as adequate to meet the requirements of CAA section 
110(a)(2)(D)(i)(I), the EPA would not find that a source in that state 
was emitting in violation of the prohibition of CAA section 
110(a)(2)(D)(i)(I) absent new information demonstrating that the SIP is 
now insufficient to address the prohibition. Similarly, if a state had 
failed to adopt an approvable SIP meeting the requirements of CAA 
section 110(a)(2)(D)(i)(I) and the EPA consequently promulgated a 
federal implementation plan (FIP) that fully addressed the deficiency, 
the FIP would eliminate emissions that significantly contribute to 
nonattainment or interfere with maintenance in a downwind state, and, 
hence, absent new information to the contrary, sources in the upwind 
state would not emit in violation of the section 110(a)(2)(D)(i)(I) 
prohibition.\3\
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    \3\ Note however, a SIP or FIP implementing section 
110(a)(2)(D)(i)(I) only means that a state's emissions are 
adequately prohibited for the particular set of facts analyzed under 
approval of a SIP or promulgation of a FIP. For example, if a 
petitioner produces new data or information showing a different 
level of contribution or other facts not considered when the SIP or 
FIP was promulgated, compliance with a SIP or FIP may not be 
determinative regarding whether the upwind sources would emit in 
violation of the prohibition of section 110(a)(2)(D)(i)(I). See 64 
FR 28250, 28274 n.15 (May 25, 1999); 71 FR 25328, 25336 n.6 (April 
28, 2006); Appalachian Power, 249 F.3d at 1067 (later developments 
can be the basis for another CAA section 126 petition).
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C. The EPA's Historical Approach To Addressing Interstate Transport of 
Ozone Under the Good Neighbor Provision

    Given that ozone formation, atmospheric residence, and transport 
occur on a regional scale (i.e., hundreds of miles) over much of the 
eastern U.S., the EPA has historically addressed interstate transport 
of ozone pursuant to the good neighbor provision through a series of 
regional rulemakings focused on the reduction of NOX 
emissions, routinely finding that downwind states' problems attaining 
and maintaining the ozone NAAQS result in part from the contribution of 
pollution from multiple upwind sources located in different upwind 
states. For example, the EPA noted in the NOX SIP Call that 
``[t]he fact that virtually every nonattainment problem is caused by 
numerous sources over a wide geographic area is a factor suggesting 
that the solution to the problem is the implementation over a wide area 
of controls on many sources, each of which may have a small or 
unmeasurable ambient impact by itself.'' 63 FR 57356, 57377 (October 
27, 1998).
    The EPA has promulgated four regional interstate transport 
rulemakings that have addressed the good neighbor provision with 
respect to various ozone NAAQS. The EPA's first such rulemaking, the 
NOX SIP Call, addressed interstate transport with respect to 
the 1979 ozone NAAQS and was finalized on October 27, 1998. 63 FR 
57356. The NOX SIP Call promulgated statewide emission 
budgets and required upwind states to adopt SIPs which would decrease 
NOX emissions by amounts that would significantly contribute 
to nonattainment of the ozone NAAQS in downwind states. The EPA also 
promulgated a model rule for a regional allowance trading program 
called the NOX Budget Trading Program that states could 
adopt in their SIPs as a mechanism to achieve some or all of the 
required emission reductions. Id. All of the jurisdictions covered by 
the NOX SIP Call ultimately chose to adopt the 
NOX Budget Trading Program into their SIPs.\4\
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    \4\ The NOX Budget Trading Program operated from 2003 
through 2008. Beginning in 2009, it was effectively replaced by the 
ozone season NOX Budget Trading program under the Clean 
Air Interstate Rule (CAIR).
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    In coordination with the NOX SIP Call rulemaking under 
CAA section 110(a)(2)(D)(i)(I), the EPA also addressed several pending 
CAA section 126(b) petitions submitted by eight northeastern states 
regarding the same air quality issues (i.e., interstate ozone transport 
for the 1979 ozone NAAQS) addressed by the NOX SIP Call. 
These CAA section 126(b) petitions asked the EPA to find that ozone 
emissions from numerous sources located in 22 states, and the District 
of Columbia, had adverse air quality impacts on the petitioning 
downwind states. Based on technical determinations made in the 
NOX SIP Call regarding upwind state impacts on downwind air 
quality, the EPA in May 1999 made technical determinations regarding 
the claims in the petitions, but did not at that time make the CAA 
section 126(b) findings requested by the petitions. 64 FR 28250. In 
making these technical determinations, the EPA concluded that the 
NOX SIP Call would itself fully address and remediate the 
claims raised in these petitions, and that the EPA would therefore not 
need to take separate action to remedy any potential violations of the 
CAA section 110(a)(2)(D)(i) prohibition. 64 FR 28252 (May 25, 1999). 
However, more than 2 years after the petitions were submitted, 
subsequent litigation over the NOX SIP Call led the EPA to 
``de-link'' the CAA section 126(b) petition response from the 
NOX SIP Call, and the EPA made final CAA section 126(b) 
findings for 12 states and the District of Columbia, finding sources in 
the states emitted in violation of the prohibition in the good neighbor 
provision with respect to the 1979 ozone NAAQS based on the affirmative 
technical determinations made in the May 1999 rulemaking. In order to 
remedy the violation under CAA section 126(c), the EPA promulgated 
requirements for affected sources in the upwind states to participate 
in a regional allowance trading program whose requirements were 
designed to be interchangeable with the requirements of the optional 
NOX Budget Trading Program model rule provided under the 
NOX SIP Call. 65 FR 2674 (January 18, 2000).
    The EPA next promulgated the Clean Air Interstate Rule (CAIR) to 
address interstate transport under the good neighbor provision with 
respect to the 1997 ozone NAAQS, as well as the 1997 PM2.5 
NAAQS. The EPA adopted the same framework to quantifying the level of 
states' significant contribution to

[[Page 7713]]

downwind nonattainment in CAIR as it used in the NOX SIP 
Call, based on the determination in the NOX SIP Call that 
downwind ozone nonattainment is due to the impact of emissions from 
numerous upwind sources and states. 70 FR 25162, 25172 (May 12, 2005). 
Regarding the contribution to downwind pollution from upwind states, 
the EPA explained that ``[t]ypically, two or more States contribute 
transported pollution to a single downwind area, so that the 
`collective contribution' is much larger than the contribution of any 
single State.'' Id. at 25186. CAIR included two distinct regulatory 
processes--a regulation to define significant contribution (i.e., the 
emission reduction obligation) under the good neighbor provision and 
provide for submission of SIPs eliminating that contribution, 70 FR 
25162 (May 12, 2005), and a regulation to promulgate, where necessary, 
FIPs imposing emission limitations, 71 FR 25328 (April 28, 2006). The 
FIPs required electric generating units (EGUs) in affected states to 
participate in regional allowance trading programs, which replaced the 
previous NOX Budget Trading Program.
    In conjunction with the second CAIR regulation promulgating FIPs, 
the EPA acted on a CAA section 126(b) petition received from the state 
of North Carolina on March 19, 2004, seeking a finding that large EGUs 
located in 13 states were significantly contributing to nonattainment 
and/or interfering with maintenance of the 1997 ozone and 1997 
PM2.5 NAAQS in North Carolina. Citing the analyses conducted 
to support the promulgation of CAIR, the EPA denied the CAA section 
126(b) petition in full based on a determination either that the named 
states were not adversely impacting downwind air quality in violation 
of the good neighbor provision, or that such impacts were fully 
remedied by implementation of the emission reductions required by the 
CAIR FIPs. 71 FR 25328, 25330 (April 28, 2006) (discussing the EPA's 
basis for denial in part because the EPA promulgated FIPs concurrently 
with the CAA section 126(b) response requiring elimination of the 
interstate transport problems within petitioning states).
    CAIR was remanded to the EPA by the D.C. Circuit in July 2008 with 
the instruction that the EPA replace the rule ``from the ground up.'' 
North Carolina v. EPA, 531 F.3d 896, 929 (D.C. Cir. 2008). Accordingly, 
the EPA was required to redo its analysis and ensure that 
implementation of the good neighbor provision would be consistent with 
the D.C. Circuit's instructions in North Carolina.
    On August 8, 2011, the EPA promulgated the Cross-State Air 
Pollution Rule (CSAPR) to replace CAIR. 76 FR 48208 (August 8, 2011). 
CSAPR addressed the same ozone and PM2.5 NAAQS as CAIR and, 
in addition, addressed interstate transport for the 2006 
PM2.5 NAAQS by requiring 28 states to reduce SO2 
emissions, annual NOX emissions, and/or ozone season 
NOX emissions that would significantly contribute to other 
states' nonattainment or interfere with other states' abilities to 
maintain these air quality standards. Consistent with prior 
determinations made in the NOX SIP Call and CAIR, the EPA 
continued to find that multiple upwind states contributed to downwind 
ozone nonattainment. Specifically, the EPA found ``that the total 
`collective contribution' from upwind sources represents a large 
portion of PM2.5 and ozone at downwind locations and that 
the total amount of transport is composed of the individual 
contribution from numerous upwind states.'' Id. at 48237. Accordingly, 
the EPA conducted a regional analysis, calculated emission budgets for 
affected states, and required EGUs in these states to participate in 
new regional allowance trading programs in order to reduce statewide 
emission levels. CSAPR was subject to nearly 4 years of litigation in 
which the Supreme Court upheld EPA's approach to calculating emission 
reduction obligations and apportioning upwind state responsibility 
under the good neighbor provision, but also held that the EPA was 
precluded from requiring more emission reductions than necessary to 
address downwind air quality problems. EPA v. EME Homer City 
Generation, L.P., 134 S. Ct. at 1607-1609.
    Most recently, the EPA promulgated the CSAPR Update to address the 
good neighbor provision requirements for the 2008 ozone NAAQS. 81 FR 
74504 (October 26, 2016). The final CSAPR Update built upon previous 
efforts to address the collective contributions of ozone pollution from 
states in the eastern U.S. to downwind air quality problems, including 
the NOX SIP Call, CAIR, and the original CSAPR. The CSAPR 
Update finalized EGU NOX ozone season emission budgets for 
affected states that were developed using uniform control stringency 
available at a marginal cost of $1,400 per ton of NOX 
reduced. This level of control stringency represented the potential for 
operating and optimizing existing selective catalytic reduction (SCRs) 
controls; installing state-of-the-art NOX combustion 
controls; and shifting generation to existing units with lower 
NOX emission rates within the same state.
    The CSAPR Update finalized enforceable measures necessary to 
achieve the emission reductions in each state by requiring power plants 
in covered states to participate in the CSAPR NOX Ozone 
Season Group 2 allowance trading program. The CSAPR Update's trading 
programs and the EPA's prior emission trading programs (e.g., the 
NOX Budget Trading Program associated with the 
NOX SIP Call) provide a proven, cost-effective 
implementation framework for achieving emission reductions. In addition 
to providing environmental certainty (i.e., a cap on regional and 
statewide emissions), these programs also provide regulated sources 
with flexibility when choosing compliance strategies. This 
implementation approach was shaped by previous rulemakings and reflects 
the evolution of these programs in response to court decisions and 
practical experience gained by states, industry, and the EPA.
    While some aspects of these rulemakings have been challenged in 
court--and some aspects of these challenges have been upheld--each of 
these rulemakings essentially followed the same four-step framework to 
quantify and implement emission reductions necessary to address the 
interstate transport requirements of the good neighbor provision. These 
steps are:
    (1) Identifying downwind air quality problems relative to the ozone 
NAAQS. The EPA has identified downwind areas with air quality problems 
considering monitored ozone data where appropriate and air quality 
modeling projections to a future compliance year. In CSAPR and the 
CSAPR Update, the agency identified not only those areas expected to be 
in nonattainment with the ozone NAAQS, but also those areas that may 
struggle to maintain the NAAQS, despite clean monitored data or 
projected attainment;
    (2) determining which upwind states are ``linked'' to these 
identified downwind air quality problems and warrant further analysis 
to determine whether their emissions violate the good neighbor 
provision. In CSAPR and the CSAPR Update, the EPA identified such 
upwind states as those modeled to contribute at or above a threshold 
equivalent to one percent of the applicable NAAQS. Upwind states linked 
to one of these downwind nonattainment or maintenance areas were then 
evaluated to determine what level of emissions reductions, if any, 
should be required of each state;

[[Page 7714]]

    (3) for states linked to downwind air quality problems, identifying 
upwind emissions on a statewide basis that significantly contribute to 
nonattainment or interfere with maintenance of a standard. In all four 
of the EPA's prior rulemakings, the EPA apportioned emission reduction 
responsibility among multiple upwind states linked to downwind air 
quality problems using cost-based and air quality-based criteria to 
quantify the amount of a linked upwind state's emissions that 
significantly contribute to nonattainment or interfere with maintenance 
in another state; and
    (4) for states that are found to have emissions that significantly 
contribute to nonattainment or interfere with maintenance of the NAAQS 
downwind, implementing the necessary emission reductions within the 
state. The EPA has done this by requiring affected sources in upwind 
states to participate in allowance trading programs to achieve the 
necessary emission reductions.
    In finalizing the CSAPR Update, the EPA determined the rule may 
only be a partial resolution of the good neighbor obligation and that 
the emission reductions required by the rule ``may not be all that is 
needed'' to address transported emissions. 81 FR 74521-522 (October 26, 
2016). The EPA noted that the information available at that time 
indicated that downwind air quality problems remained after 
implementation of the CSAPR Update to which upwind states continued to 
be linked at or above the one percent threshold. However, the EPA could 
not determine whether, at step three of the four-step framework, the 
EPA had quantified all emission reductions that may be considered 
highly cost effective because the rule did not evaluate non-EGU ozone 
season NOX reductions and further EGU control strategies 
that are achievable on longer timeframes after 2017 (e.g., the 
implementation of new post-combustion controls).
    Of particular relevance to this proposal, the EPA determined in the 
CSAPR Update that emissions from Pennsylvania were linked to both 
nonattainment and maintenance concerns for the 2008 ozone NAAQS in 
Connecticut based on projections to 2017. 81 FR 74538, 74539. The EPA 
found there were cost-effective emission reductions that could be 
achieved within Pennsylvania, quantified an emission budget for the 
state, and required EGUs located within the state, including the source 
identified in Connecticut's petition, to comply with EPA's trading 
program under the CSAPR Update. These emission budgets were imposed in 
order to achieve necessary emission reductions and mitigate upwind 
states', including Pennsylvania's, impact on downwind states' air 
quality.

D. The June 2016 CAA Section 126(b) Petition From Connecticut

    On March 12, 2008, the EPA promulgated a revision to the ozone 
NAAQS, lowering both the primary and secondary standards to 75 ppb.\5\ 
Subsequently, on June 1, 2016, the state of Connecticut, through the 
Connecticut Department of Energy and Environmental Protection 
(Connecticut), submitted a CAA section 126(b) petition alleging that 
emissions from Brunner Island significantly contribute to nonattainment 
and/or interfere with maintenance of the 2008 ozone NAAQS in 
Connecticut.\6\ In particular, the petition contends that emissions 
from Brunner Island significantly contribute to nonattainment and 
interfere with maintenance of the 2008 ozone NAAQS at six out of 12 
ozone monitors in Connecticut. In support of this assertion, the 
petition contends that emissions from Brunner Island contribute levels 
equal to or greater than one percent of the 2008 ozone NAAQS to 
downwind nonattainment and maintenance receptors. The petition further 
contends that Brunner Island is able to reduce emissions at a 
reasonable cost using readily available control options. The petition 
therefore concludes that, consistent with EPA's past approaches to 
addressing interstate transport of ozone, NOX emissions from 
Brunner Island significantly contribute to nonattainment and interfere 
with maintenance of the 2008 ozone NAAQS in Connecticut. The petition 
requests that the EPA direct the operators of Brunner Island to reduce 
NOX emissions to eliminate this impact.
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    \5\ See National Ambient Air Quality Standards for Ozone, Final 
Rule, 73 FR 16436 (March 27, 2008).
    \6\ Petition of the State of Connecticut Pursuant to Section 126 
of the Clean Air Act, submitted June 1, 2016. The petition is 
available in the docket for this action.
---------------------------------------------------------------------------

    The petition cites several sources of data for its contention that 
Brunner is impacting air quality in Connecticut. First, the petition 
notes that 10 out of 12 air quality monitors in Connecticut were 
violating the 2008 ozone NAAQS based on 2012-2014 data and preliminary 
2013-2015 data available at the time the petition was submitted.\7\ The 
petition further cites to modeling conducted by the EPA to support 
development of the CSAPR Update to claim that four ozone monitors in 
Connecticut were projected to have nonattainment or maintenance 
concerns in 2017.\8\
---------------------------------------------------------------------------

    \7\ Of the 12 monitors in Connecticut, 7 are violating the 2008 
ozone NAAQS based on 2014-2016 data. See ozone design value table 
available at https://www.epa.gov/air-trends/air-quality-design-values#report.
    \8\ The petition referred to modeling conducted for purposes of 
the proposed CSAPR Update in 2015. See 80 FR 75706, 75725-726 
(December 3, 2015). The EPA conducted updated modeling to support 
the final rulemaking, which also identified four projected 
nonattainment and maintenance receptors in 2017. 81 FR 74533.
---------------------------------------------------------------------------

    To support the conclusion that Brunner Island impacts air quality 
at some of these monitoring sites, Connecticut provides a technical 
memorandum from Sonoma Technologies, Inc., outlining the results of 
modeling that analyzed the impact of NOX emissions from 
Brunner Island on Connecticut. According to the petition, this modeling 
shows that emissions from Brunner Island contributed an amount greater 
than one percent of the 2008 ozone NAAQS at six monitoring sites in 
Connecticut based on emissions from the facility during the 2011 ozone 
season, and is therefore linked to Connecticut's air quality problems.
    Connecticut further alleges that Brunner Island has cost-effective 
and readily available control technologies that can reduce its 
NOX emissions. The petition first notes that Brunner Island 
currently has no NOX post-combustion controls installed at 
any of the units but that the facility was planning to add the 
capability to use natural gas fuel at all three of its units by the 
summer of 2017, and argues that a federally enforceable mechanism to 
ensure Brunner Island uses natural gas fuel would eliminate Brunner 
Island's significant contribution to ozone levels in Connecticut. The 
petition states that current federal and state rules will not require 
Brunner Island to operate on natural gas, install post-combustion 
controls, or otherwise limit NOX emissions beyond previously 
allowable permit levels. The petition summarizes four potential ways by 
which Brunner Island could reduce its NOX emissions: 
Replacing coal combustion with natural gas fuel, modifying its boiler 
furnace burners and combustion systems to operate at lower flame 
temperatures, installing selective noncatalytic reduction (SNCR) 
controls, and installing SCR controls.
    The petition further discusses the EPA's then-proposed CSAPR 
Update. Connecticut suggests that the then-proposed CSAPR Update could 
not be relied upon to control emissions from Brunner Island because: 
(1) It was not final at the time the petition was submitted and was 
therefore uncertain; and (2) the proposed rule would not require 
Brunner Island to reduce its

[[Page 7715]]

emissions below the threshold of one percent of the NAAQS. The petition 
notes that the modeling to support the proposed rule shows four 
Connecticut monitors with nonattainment and maintenance problems after 
implementation of the proposed emission budgets. Finally, the petition 
suggests that the fact that EGUs may trade allowances within and 
between states could result in emission levels in excess of the state's 
budget, and thus suggest the rule will likely not affect Brunner 
Island's emissions. In particular, the petition suggests that this 
aspect of the CSAPR Update will not reduce emissions from Brunner 
Island on high electric demand days or days with the highest ozone 
levels.
    Based on the technical support provided in its petition, 
Connecticut requests that the EPA make a CAA section 126(b) finding and 
require that Brunner Island comply with emissions limitations and 
compliance schedules to eliminate its significant contribution to 
nonattainment and interference with maintenance in Connecticut.
    Section 126(b) of the Act requires the EPA to either make a finding 
or deny a petition within 60 days of receipt of the petition and after 
holding a public hearing. However, any action taken by the EPA under 
CAA section 126(b) is also subject to the procedural requirements of 
CAA section 307(d). See CAA section 307(d)(1)(N). One of these 
requirements is that the EPA conduct notice-and-comment rulemaking, 
including issuance of a notice of proposed action, a period for public 
comment, and a public hearing before making a final determination 
whether to make the requested finding. In light of the time required 
for notice-and-comment rulemaking, CAA section 307(d)(10) provides for 
a time extension, under certain circumstances, for rulemakings subject 
to the section 307(d) procedural requirements. In accordance with 
section 307(d)(10), the EPA determined that the 60-day period for 
action on Connecticut's petition would be insufficient for the EPA to 
complete the necessary technical review, develop an adequate proposal, 
and allow time for notice and comment, including an opportunity for 
public hearing. Therefore, on July 25, 2016, the EPA published a final 
rule extending the deadline for the EPA to take final action on 
Connecticut's CAA section 126(b) petition to January 25, 2017.\9\
---------------------------------------------------------------------------

    \9\ 81 FR 48348 (July 25, 2016).
---------------------------------------------------------------------------

    On April 25, 2017, a coalition of public health, conservation, and 
environmental organizations submitted letters urging the EPA to 
immediately grant the pending CAA section 126(b) petitions in front of 
the agency, including Connecticut's, arguing that the petitions' 
proposed remedies would also provide critical air quality benefits to 
the communities surrounding the affected power plants in Indiana, 
Kentucky, Ohio, Pennsylvania, and West Virginia, as well as other 
downwind states, including New Jersey, New York, Maine, Massachusetts, 
and Rhode Island.\10\ On April 28, 2017, Talen Energy Corp., the owner 
and operator of Brunner Island, submitted a letter urging the EPA to 
deny Connecticut's CAA section 126(b) petition due to alleged 
deficiencies in the petition. The EPA acknowledges receipt of these 
letters, and has made them available in the docket for this action. 
However, the EPA is not in this action responding directly to these 
letters. Rather, the EPA encourages interested parties to review this 
proposal and then submit relevant comments during the public comment 
period.
---------------------------------------------------------------------------

    \10\ The EPA has received five CAA section 126(b) petitions from 
two other states (Delaware and Maryland) regarding the 2008 and 2015 
ozone NAAQS, each claiming that one or more specific power plant 
EGUs in upwind states emit or would emit in violation of the good 
neighbor provision. However, the EPA notes that this rulemaking only 
addresses Connecticut's CAA section 126 petition regarding Brunner 
Island in Pennsylvania and the EPA is not requesting proposing 
action or requesting comment on the other five petitions.
---------------------------------------------------------------------------

    On May 16, 2017, the state of Connecticut filed suit in the U.S. 
District Court for the District of Connecticut alleging that the EPA 
failed to take timely action on Connecticut's CAA section 126(b) 
petition.\11\ On February 7, 2018, the court issued an order requiring 
the EPA to hold a public hearing on the petition within 30 days and to 
take final action within 60 days of the court's order. See Ruling on 
Motions for Summary Judgment and Motion Concerning Remedy, State of 
Connecticut v. EPA, No. 3:17-cv-00796 (D. Conn. February 7, 2018).
---------------------------------------------------------------------------

    \11\ Two citizen groups, Sierra Club and Connecticut Fund for 
the Environment, intervened in this case on behalf of the state of 
Connecticut.
---------------------------------------------------------------------------

E. The Brunner Island Facility

    Brunner Island is a 1,411 megawatt facility with three 
tangentially-fired steam boiler EGUs, each equipped with low 
NOX burner technology with closed-coupled/separated over 
fire air (LNC3) combustion controls, located in York County in 
southeastern Pennsylvania.\12\ The units were constructed starting in 
1961 through 1969. For over 50 years, all three units at Brunner Island 
have historically burned coal. Brunner Island recently installed a 
natural gas connection pipeline allowing natural gas to be combusted to 
serve Brunner Island's electric generators.\13\ Following installation 
of this pipeline, Brunner Island primarily combusted natural gas as 
fuel during the 2017 ozone season.\14\ Using primarily natural gas as 
fuel during the 2017 ozone season reduced Brunner Island's actual ozone 
season NOX emissions to 877 tons in 2017 from 3,765 tons in 
2016 and reduced the facility's ozone season NOX emission 
rate to 0.090 pounds per millions of British thermal units (lbs/mmBtu) 
in 2017 from 0.370 lbs/mmBtu in 2016.\15\
---------------------------------------------------------------------------

    \12\ For tangentially-fired boiler types, LNC3 is state of the 
art (See sections 3.9.2 and 5.2.1 on pages 3-25 and 5-5 of the 
Integrated Planning Model (IPM) 5.13 documentation for details about 
combustion controls. The IPM documentation is available at https://www.epa.gov/airmarkets/power-sector-modeling-platform-v513.
    \13\ The Connecticut CAA section 126(b) petition and the April 
28, 2017, letter from Talen Energy Corp. indicate that Brunner 
Island has taken necessary steps to construct a natural gas pipeline 
and enable the combustion of natural gas. On June 7, 2016, an 
article by S&P Global indicated that Talen Energy Corp. is in the 
process of converting the Brunner Island plant to co-fire with 
natural gas. These documents are available in the docket for this 
action.
    \14\ Hourly emission rates reported to the EPA and fuel usage 
reported to Environmental Impact Assessment demonstrate Brunner 
Island predominately used natural gas during the ozone season. The 
emissions data for 2017 are publicly available at https://www.epa.gov/ampd and the fuel usage data are available at https://www.eia.gov/electricity/data/eia923/.
    \15\ These data are publicly available at https://www.epa.gov/ampd. See Air Markets Program Data in the docket for this proposal.
---------------------------------------------------------------------------

III. The EPA's Proposed Decision on Connecticut's CAA Section 126(b) 
Petition

A. The EPA's Approach for Granting or Denying CAA Section 126(b) 
Petitions Regarding the 2008 8-Hour Ozone NAAQS

    As described in section II.B of this notice, as an initial matter 
in reviewing CAA section 126(b) petitions, the EPA evaluates the 
technical analysis in the petition to see if that analysis, standing 
alone, is sufficient to support a CAA section 126(b) finding. In this 
regard, the agency notes that certain elements of the analysis provided 
in the petition appear to be deficient and thereby the conclusions that 
the petition draws are not fully supported by Connecticut's technical 
assessment. For example, in the context of interstate pollution 
transport, in existing EPA analyses, the agency focuses its analysis on 
contributions to high ozone days at the downwind receptor. The analysis 
and metrics provided by the petitioner provide some information on the

[[Page 7716]]

frequency and magnitude of ozone impacts. However, the information is 
unclear as to the modeled and/or measured ozone levels on those 
days.\16\ We also note that, the Connecticut petition relied on 
emissions data from 2011, which may not be representative of current 
and/or future NOX emissions and ozone levels in Connecticut, 
Pennsylvania, and the rest of the region.\17\
---------------------------------------------------------------------------

    \16\ Table two in the Sonoma Technologies, Inc. technical 
memorandum that supports Connecticut's petition indicates that the 
``maximum number of days any one monitor [in Connecticut] had a 
significant ozone contribution'' was two.
    \17\ The Connecticut petition relies on air quality modeling 
that uses 2011 emissions data. As an example of how emissions have 
changed between 2011 and a recent historical year, the EPA notes 
that Pennsylvania's 2017 EGU NOX ozone season emissions 
were 79 percent below 2011 levels. Brunner Island is located in 
Pennsylvania, which as a facility reduced its ozone season 
NOX emissions by 88 percent in 2017 relative to 2011 
levels (https://www.epa.gov/ampd).
---------------------------------------------------------------------------

    Nonetheless, the EPA's primary approach for reviewing the petition 
involves EPA's independent technical analyses to help evaluate the 
basis for a potential CAA section 126(b) finding. As described in 
sections II.A and II.C of this notice, ozone is a regional pollutant 
and previous EPA analyses and regulatory actions have evaluated the 
regional interstate ozone transport problem using a four-step regional 
analytic framework.
    The EPA applied this four-step framework in the promulgation of the 
CSAPR Update under CAA section 110(a)(2)(D)(i)(I) to at least partially 
address interstate transport with respect to the 2008 ozone NAAQS. The 
CSAPR Update was promulgated in 2016 and finalized EGU NOX 
ozone season emission budgets to address the good neighbor provision 
for the 2008 ozone NAAQS. While CAA section 126(b) differs from CAA 
section 110(a)(2)(D)(i)(I) in that CAA section 126(b) gives states the 
ability to petition the EPA regarding compliance with the good neighbor 
provision by a single source or group of sources, CAA section 126(b) 
specifically cross-references the substantive prohibitions of the good 
neighbor provision. To that end, CAA sections 110(a)(2)(D)(i)(I) and 
126(b) both represent mechanisms to address the same functional 
prohibition of emissions activity from upwind states that will 
contribute significantly to nonattainment or interfere with maintenance 
of the NAAQS in a downwind state.
    Given the specific cross-reference in CAA section 126(b) to the 
substantive prohibition in CAA section 110(a)(2)(D)(i)(I), as discussed 
in section II.B of this notice in more detail, the EPA believes any 
prior findings made under the good neighbor provision are informative--
if not determinative--for a CAA section 126(b) action, and thus the 
EPA's four-step approach under CAA section 110(a)(2)(D)(i)(I) is also 
appropriate for evaluating under CAA section 126(b) whether a source or 
group of sources will significantly contribute to nonattainment or 
interfere with maintenance of the 2008 8-hour ozone NAAQS in a 
petitioning state. Because the EPA interprets significant contribution 
to nonattainment and interference with maintenance to mean the same 
thing under both provisions, the EPA's decision whether to grant or 
deny a CAA section 126(b) petition regarding the 2008 8-hour ozone 
NAAQS depends on whether there is a downwind air quality problem in the 
petitioning state (i.e., step one of the four-step framework); whether 
the upwind state where the source subject to the petition is located is 
linked to the downwind air quality problem (i.e., step two); and, if 
such a linkage exists, whether there are additional feasible and cost-
effective emission reductions achievable at the source(s) named in the 
CAA section 126(b) petition (i.e., step three).

B. The EPA's Proposal To Deny Connecticut's CAA Section 126(b) Petition

    As described earlier in section II.C of this notice, the EPA has 
determined that a state may contribute significantly to nonattainment 
or interfere with maintenance of the 2008 ozone NAAQS where emissions 
from the state impact a downwind air quality problem (nonattainment or 
maintenance receptor) at a level exceeding a one percent contribution 
threshold, and where the sources in the state can implement emission 
reductions through highly cost-effective control measures. See EPA v. 
EME Homer City Generation, L.P., 134 S. Ct. at 1606-07.
    The EPA has already conducted such an analysis for the 2008 ozone 
NAAQS with respect to Pennsylvania's impact on receptors in 
Connecticut. As the petitioners note, the EPA determined that, based on 
2017 modeling projections, Pennsylvania was linked to four air quality 
monitors in Connecticut expected to have nonattainment or maintenance 
concerns. However, contrary to the assertions made in Connecticut's 
petition, the one percent threshold used in step two in the CSAPR 
Update did not alone represent emissions that were considered to 
``contribute significantly'' or ``interfere with maintenance'' of the 
NAAQS. The conclusion that a state's emissions met or exceeded this 
threshold only indicated that further analysis was appropriate to 
determine whether any of the upwind state's emissions met the statutory 
criteria of significantly contributing to nonattainment or interfering 
with maintenance. As discussed in more detail in section II.C, this 
further analysis in step three considers cost, technical feasibility 
and air quality factors to determine whether any emissions deemed to 
contribute to the downwind air quality factor must be controlled 
pursuant to the good neighbor provision. Thus, while the EPA's modeling 
conducted for the CSAPR Update did link emissions from Pennsylvania to 
nonattainment and maintenance receptors in Connecticut in 2017, this 
does not conclude the determination as to whether Brunner Island is 
operating in violation of the good neighbor provision with respect to 
the 2008 ozone NAAQS.
    Similarly, and for the same reasons, the impact of a single source 
on downwind air quality is not necessarily determinative of whether 
that source emits or would emit in violation of the good neighbor 
provision. Thus, the modeling summary provided by Connecticut regarding 
Brunner Island's potential impact on Connecticut monitors does not 
indicate whether in step three of the EPA's framework there are 
feasible and highly cost-effective emission reductions available at 
Brunner Island such that EPA could determine that this facility emits 
or would emit in violation of the good neighbor provision.
    With respect to the question of whether there are feasible and 
highly cost-effective NOX emission reductions available at 
Brunner Island, CAA section 126(b) indicates that a petitioner must 
demonstrate that a major source or group of stationary sources ``emits 
or would emit'' any air pollutant in violation of the prohibition of 
CAA section 110(a)(2)(D)(i)(I). Congress did not specify the intended 
meaning for these terms in either CAA section 126(b) itself or the 
legislative history for this provision. Therefore, in the context of 
this response to Connecticut's CAA section 126(b) petition regarding 
Brunner Island for the 2008 ozone NAAQS, the EPA reasonably and 
appropriately proposes to interpret these ambiguous terms in a 
particular way given the facility's existing operating conditions, as 
further described later in this section, and consistent with EPA's 
historical approach to evaluating interstate ozone pollution transport 
under the good neighbor provision. Specifically, the

[[Page 7717]]

EPA is proposing to interpret the phrase ``emits or would emit'' in 
this context to mean, first, that a source may ``emit'' in violation of 
the good neighbor provision if, based on current emission levels, the 
upwind state contributes to downwind air quality problems and the 
source may be further controlled through implementation of highly cost-
effective controls; and, second, that a source ``would emit'' in 
violation of the good neighbor provision if, based on reasonably 
anticipated future emission levels (accounting for existing 
conditions), the upwind state contributes to downwind air quality 
problems and the source could be further controlled through 
implementation of highly cost-effective controls. This interpretation 
is consistent with EPA's historic approach to addressing ozone 
transport under the good neighbor provision wherein EPA's ozone 
transport air quality and NOX reduction potential analyses 
have used future emission projections that were derived considering 
recent and projected emission levels. Accordingly, the EPA believes it 
is reasonable to interpret the CAA section 126(b) requirements for 
ozone transport in a consistent manner. Consistent with this 
interpretation, the EPA has therefore evaluated whether Brunner Island 
emits or would emit in violation of the good neighbor provision based 
on both current and future anticipated emission levels.
    As described in more detail later in this section, Brunner Island 
primarily burned natural gas with a low NOX emission rate in 
the 2017 ozone season and the EPA expects the facility to continue 
operating primarily by burning natural gas in future ozone seasons. As 
such, the EPA does not find at this time that there are additional 
feasible and highly cost-effective NOX emission reductions 
available at Brunner Island. The EPA is therefore proposing to 
determine, based on this context, that Brunner Island does not and 
would not ``emit'' in violation of the good neighbor provision with 
respect to the 2008 ozone NAAQS.
    Connecticut's CAA section 126(b) petition first proposes that the 
operation of natural gas is an available cost-effective emission 
reduction measure that could be implemented at Brunner Island. As noted 
previously, Brunner Island completed construction of a natural gas 
pipeline connection prior to the beginning of the 2017 ozone season 
(i.e., by May 1, 2017). Brunner Island operated primarily using natural 
gas as fuel for the 2017 ozone season. As a result, Brunner Island's 
actual ozone season NOX emissions declined from 3,765 tons 
in 2016 to 877 tons in 2017, and the facility's ozone season 
NOX emission rate declined from 0.370 lbs/mmBtu in 2016 to 
0.090 lbs/mmBtu in 2017. Thus, Brunner Island has already implemented 
the emission reductions consistent with what Connecticut asserted would 
qualify as a cost-effective strategy for reducing NOX 
emissions. Connecticut's section 126(b) petition does not demonstrate 
that, at this current level of emissions, Brunner Island ``emits'' in 
violation of the good neighbor provision.
    The EPA also believes that Brunner Island will likely continue to 
primarily use natural gas as fuel during future ozone seasons for 
several reasons. First, compliance with the CSAPR Update provides an 
economic incentive to cost-effectively reduce NOX emissions. 
Specifically, Brunner Island's participation in the CSAPR 
NOX ozone season Group 2 allowance trading program provides 
an economic incentive to produce electricity in ways that lower ozone-
season NOX, such as by burning natural gas relative to 
burning coal at this particular power plant. Under the CSAPR Update, 
each ton of NOX emitted by a covered EGU has an economic 
value--a direct cost in the case that a power plant must purchase an 
allowance to cover that ton of emissions for CSAPR Update compliance or 
an opportunity cost in the case that a power plant must use an 
allowance that is in its account for compliance and thereby foregoes 
the opportunity to sell that allowance on the market. The EPA notes 
that Brunner Island's 2017 emissions would have been approximately 
2,714 tons more than its actual 2017 emissions if it had operated as a 
coal-fired generator, as it did in 2016.\18\ This reduction in 
NOX emissions that is attributable to primarily burning 
natural gas has an economic value in the CSAPR allowance trading 
market.
---------------------------------------------------------------------------

    \18\ This estimated emissions difference was calculated as the 
difference between 2017 reported NOX emissions and a 
counterfactual 2017 NOX emissions estimate using 2017 
operations (i.e., heat input), multiplied by the 2016 NOX 
emission rate reflecting coal-fired generation.
---------------------------------------------------------------------------

    Second, there are continuing fuel-market based economic incentives 
suggesting that Brunner Island will primarily burn natural gas during 
the ozone season. Brunner Island elected to add the capability to 
primarily utilize natural gas by way of a large capital investment in a 
new natural gas pipeline capacity connection. Brunner Island's 
operators would have planned for and constructed this project during 
the recent period of relatively low natural gas prices. In the years 
preceding the completion of this natural gas pipeline connection 
project, average annual natural gas prices ranged from $2.52/mmBtu to 
$4.37/mmBtu (i.e., between 2009 and 2016).\19\ The capital expenditure 
to construct a natural gas pipeline connection suggests that natural 
gas prices within this range make it economic (i.e., cheaper) for 
Brunner Island to burn natural gas to generate electricity relative to 
burning coal. As such, future natural gas prices in this same range 
suggest that Brunner Island will continue to primarily burn natural gas 
during future ozone seasons. The EPA and other independent analysts 
expect future natural gas prices to remain low and within this 2009 to 
2016 range due both to supply and distribution pipeline build-out. For 
example, the Energy Information Administration's (EIA) 2018 Annual 
Energy Outlook (AEO) natural gas price projections for Henry Hub spot 
price range from $3.06/mmBtu in 2018 to $3.83/mmBtu in 2023.\20\ 
Moreover, the AEO short-term energy outlook and New York Mercantile 
Exchange futures further support the estimates of a continued low-cost 
natural gas supply.\21\ These independent analyses of fuel price data 
and projections lead to the EPA's expectation that fuel-market 
economics will continue to support Brunner Island's primarily burning 
natural gas during future ozone seasons through at least 2023. Taken 
together with projected continued broader downward trends in 
NOX emissions resulting in improved air quality in 
Connecticut, the EPA expects that Connecticut's ozone nonattainment and 
maintenance problems will be resolved in the future and that Brunner 
Island will likely continue to primarily burn natural gas during the 
ozone season until that time.
---------------------------------------------------------------------------

    \19\ In the 2018 reference case Annual Energy Outlook (AEO) 
released February 6, 2018, created by the U.S. Energy Information 
Administration (EIA), natural gas prices for the power sector for 
2018 through 2023. Available at https://www.eia.gov/outlooks/aeo/data/browser/#/?id=13-AEO2018&cases=ref2018&sourcekey=0.
    \20\ Projected delivered natural gas prices for the power sector 
in the Middle Atlantic region, where Brunner Island is located, 
ranged between $3.56 in 2018 and $3.99/mmBtu in 2023. The projected 
delivered coal prices for the Middle Atlantic remain relatively 
constant, ranging from $2.51 to $2.56/mmBtu. https://www.eia.gov/outlooks/aeo/data/browser/#/?id=3-AEO2018®ion=1-2&cases=ref2018&start=2016&end=2023&f=A&linechart=ref2018-d121317a.3-3-AEO2018.1-2&map=ref2018-d121317a.4-3-AEO2018.1-2&sourcekey=0 and http://tonto.eia.gov/dnav/ng/hist/rngwhhda.htm.
    \21\ AEO short-term energy outlook available at https://www.eia.gov/outlooks/steo/report/natgas.php.
---------------------------------------------------------------------------

    The context in which Brunner Island installed natural gas-firing 
capability and burned natural gas is consistent

[[Page 7718]]

with observed recent trends in natural gas utilization within the power 
sector, suggesting that Brunner Island's economic situation in which it 
primarily burns gas as fuel during the ozone season is not unique or 
limited. Comparing total heat input from 2014 with 2017 for all units 
that utilize natural gas and report to the EPA's Clean Air Markets 
Division, historical data showed an increased use of natural gas of 14 
percent.\22\ This overall increase results from both an increase in 
capacity from the construction of additional units and an increased 
gas-fired utilization capacity factor. The available heat input 
capacity increased six percent while average capacity factor based on 
heat input increased by eight percent (23 percent to 25 percent).
---------------------------------------------------------------------------

    \22\ From 8.4 billion mmBtu to 9.6 billion mmBtu. See EPA's 
Clean Air Markets Division data at https://ampd.epa.gov/ampd/.
---------------------------------------------------------------------------

    Accordingly, based on this information demonstrating that Brunner 
Island can be expected to continue to primarily operate using natural 
gas fuel in the future, the EPA cannot conclude that the facility 
``would emit'' in violation of the good neighbor provision with respect 
to the 2008 ozone NAAQS. The EPA notes that Connecticut's petition 
relied on emission data from 2011 to attempt to demonstrate that 
Brunner Island is significantly contributing to nonattainment or 
interfering with maintenance. In light of recent changes in Brunner 
Island's operations, the EPA does not believe this information provides 
a current, reasonable estimate of how much NOX pollution 
Brunner Island emits or would emit currently or in the future.\23\
---------------------------------------------------------------------------

    \23\ As noted above, Pennsylvania's 2017 EGU NOX 
ozone season emissions were 79 percent below 2011 levels. Brunner 
Island is located in Pennsylvania, which as a facility reduced its 
ozone season NOX emissions by 88 percent in 2017 relative 
to 2011 levels. Data regarding Brunner Island emissions available at 
https://www.epa.gov/ampd.
---------------------------------------------------------------------------

    We do not agree with the petition to the extent that it asserts 
that the ability to buy and bank allowances in the CSAPR Update's ozone 
season NOX allowance trading program will incentivize 
Brunner Island to increase its emissions. Connecticut fails to support 
its contention and thus does not meet the demonstration burden imposed 
on CAA section 126(b) petition. Moreover, Brunner Island's 2017 
emission levels demonstrate that, contrary to Connecticut's assertions, 
Brunner Island reduced emissions while operating in the context of the 
CSAPR Update allowance trading program. This is also true for EGUs in 
Pennsylvania more broadly, which had collective emissions of 13,646 
tons, well below the Pennsylvania budget of 17,952 tons. The petition 
also fails to support its contention that Brunner Island's 
participation in the allowance trading program will result in increased 
emissions on days with either high electricity demand or days with the 
highest ozone levels.
    Finally, to the extent that Connecticut identifies other control 
strategies that could potentially be implemented at Brunner Island in 
order to reduce NOX emissions, including modifications to 
combustion controls or implementation of post-combustion controls like 
SCRs and SNCRs, the petition does not include any information or 
analysis regarding the costs of such controls nor does it demonstrate 
that such controls are highly cost effective considering potential 
downwind air quality impacts. As noted previously, in the CSAPR Update, 
the EPA quantified upwind states' obligations under the good neighbor 
provision based on emission reductions available at a marginal cost of 
$1,400/ton of NOX reduced. EPA's analysis showed that 
additional NOX reductions at EGUs, including installation of 
new SCRs and SNCRs at EGUs that lacked post-combustion controls, would 
be more expensive.\24\ The cost of such new post-combustion controls at 
Brunner Island would likely be even more expensive considering current 
and anticipated emissions rates.
---------------------------------------------------------------------------

    \24\ See EGU NOX Mitigation Strategies Final Rule 
Technical Support Document available at https://www.regulations.gov, 
Docket ID No. EPA-HQ-OAR-2015-0500-0554.
---------------------------------------------------------------------------

    Under the EPA's approach to quantifying those amounts of emissions 
that significantly contribute to nonattainment or interfere with 
maintenance, the dollar-per-ton cost of reducing emissions is balanced 
against two air quality factors: The amount of NOX emission 
reductions available using a particular control strategy and the 
downwind reductions in ozone at identified receptors that would result 
from the emission reductions. Connecticut has not attempted to evaluate 
what reductions in ozone would accrue from these additional control 
strategies and thus has not demonstrated that the additional costs 
associated with these controls would be justified by the downwind 
reductions in ozone. Indeed, the petition includes no analysis of how 
downwind air quality would be impacted by the emission reductions it 
contends are necessary under the good neighbor provision. This element 
is not only key to EPA's interpretation of the good neighbor provision 
as it applies step three to ozone pollution transport, but necessary to 
ensure that upwind emissions are not reduced by more than necessary to 
improve downwind air quality, consistent with the Supreme Court's 
holding in EPA v. EME Homer City Generation, L.P., 134 S. Ct. at 1604 
n.18, 1608-09. Recent EPA analyses that projects emission levels to a 
future year indicates that no air quality monitors in Connecticut are 
projected to have nonattainment or maintenance problems with respect to 
the 2008 ozone NAAQS by 2023.\25\ While this modeling is not 
necessarily determinative of whether Brunner Island emits or would emit 
in violation of the good neighbor provision before 2023, it does 
suggest that, by that date, it may no longer be necessary to further 
reduce emissions from any state to ensure attainment of the 2008 ozone 
NAAQS in Connecticut.
---------------------------------------------------------------------------

    \25\ See Supplemental Information on the Interstate Transport 
State Implementation Plan Submissions for the 2008 Ozone National 
Ambient Air Quality Standards under Clean Air Act Section 
110(a)(2)(D)(i)(I) (October 2017), available in the docket for this 
proposed action. The EPA is not making any final determination 
regarding future downwind air quality in this action, and is 
therefore not requesting comment on the air quality modeling 
presented in the October 2017 memorandum.
---------------------------------------------------------------------------

    Based on the information discussed in this notice, the EPA proposes 
to deny the petition because Connecticut has not met its burden to 
demonstrate that Brunner Island emits or would emit in violation of the 
good neighbor provision with respect to the 2008 ozone NAAQS.\26\ The 
EPA also proposes to find, based on its own analysis, that there are no 
additional cost-effective measures available at the source, and thus 
Brunner Island does not emit nor would it emit in violation of the good 
neighbor provision with respect to the 2008 ozone NAAQS. These proposed 
determinations are based on the fact that Brunner Island combusted 
primarily natural gas in the 2017 ozone season, resulting in a low 
NOX emission rate for this facility, as well as the 
expectation that future operation will be consistent with 2017 
operations. The EPA requests comment on its proposed denial of 
Connecticut's section 126(b) petition, including the bases for the 
decision described herein.
---------------------------------------------------------------------------

    \26\ As previously discussed, the petition correctly identifies 
that Pennsylvania is linked to downwind air quality problems in 
Connecticut, and has been included in the CSAPR Update with respect 
to its downwind impacts on Connecticut's attainment of the 2008 
ozone NAAQS. While this action proposes to determine that no further 
controls are necessary to ensure that Brunner Island does not and 
would not ``emit'' in violation of the good neighbor provision for 
the 2008 ozone NAAQS with respect to Connecticut, this proposal does 
not make any broader determination as to the good neighbor 
obligation for Pennsylvania.

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[[Page 7719]]

IV. Statutory Authority

    42 U.S.C. 7410, 7426, 7601.

    Dated: February 15, 2018.
E. Scott Pruitt,
Administrator.
[FR Doc. 2018-03679 Filed 2-21-18; 8:45 am]
 BILLING CODE 6560-50-P



                                               7710                        Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices

                                               the instant notice by the Commission,                   Persons unable to file electronically                 notice published on February 14, 2018
                                               file pursuant to Rule 214 of the                        should submit an original and seven                   (83 FR 6490).
                                               Commission’s Procedural Rules (18 CFR                   copies of the protest or intervention to
                                                                                                                                                             ADDRESSES:   Submit your comments,
                                               385.214) a motion to intervene or notice                the Federal Energy Regulatory
                                               of intervention and pursuant to section                                                                       identified by Docket ID No. EPA–HQ–
                                                                                                       Commission, 888 First Street NE,
                                               157.205 of the regulations under the                                                                          OAR–2016–0347, at http://
                                                                                                       Washington, DC 20426.
                                               NGA (18 CFR 157.205), a protest to the                                                                        www.regulations.gov. Follow the online
                                                                                                         Dated: February 15, 2018.                           instructions for submitting comments.
                                               request. If no protest is filed within the
                                                                                                       Nathaniel J. Davis, Sr.,                              Once submitted, comments cannot be
                                               time allowed therefore, the proposed
                                               activity shall be deemed to be                          Deputy Secretary.                                     edited or removed from Regulations.gov.
                                               authorized effective the day after the                  [FR Doc. 2018–03646 Filed 2–21–18; 8:45 am]           The EPA may publish any comment
                                               time allowed for filing a protest. If a                 BILLING CODE 6717–01–P                                received to its public docket. Do not
                                               protest is filed and not withdrawn                                                                            submit electronically any information
                                               within 30 days after the allowed time                                                                         you consider to be Confidential
                                               for filing a protest, the instant request               ENVIRONMENTAL PROTECTION                              Business Information (CBI) or other
                                               shall be treated as an application for                  AGENCY                                                information whose disclosure is
                                               authorization pursuant to section 7 of                                                                        restricted by statute. Multimedia
                                                                                                       [EPA–HQ–OAR–2016–0347; FRL–9974–80–                   submissions (audio, video, etc.) must be
                                               the NGA.                                                OAR]
                                                  Pursuant to section 157.9 of the                                                                           accompanied by a written comment.
                                               Commission’s rules (18 CFR 157.9),                      RIN 2060–AT35                                         The written comment is considered the
                                               within 90 days of this Notice, the                                                                            official comment and should include
                                               Commission staff will either: complete                  Response to June 1, 2016 Clean Air                    discussion of all points you wish to
                                               its environmental assessment (EA) and                   Act Section 126(b) Petition From                      make. The EPA will generally not
                                               place it into the Commission’s public                   Connecticut                                           consider comments or comment
                                               record (eLibrary) for this proceeding; or                                                                     contents located outside of the primary
                                                                                                       AGENCY:   Environmental Protection                    submission (i.e., on the Web, Cloud, or
                                               issue a Notice of Schedule for                          Agency (EPA).
                                               Environmental Review. If a Notice of                                                                          other file sharing system). For
                                                                                                       ACTION: Notice of proposed action on                  additional submission methods, the full
                                               Schedule for Environmental Review is
                                               issued, it will indicate, among other                   petition.                                             EPA public comment policy,
                                               milestones, the anticipated date for the                                                                      information about CBI or multimedia
                                                                                                       SUMMARY:   The Environmental Protection
                                               Commission staff’s issuance of the EA                                                                         submissions, and general guidance on
                                                                                                       Agency (EPA) is proposing to deny a
                                               for this proposal. The filing of the EA                                                                       making effective comments, please visit
                                                                                                       section 126(b) petition submitted by the
                                               in the Commission’s public record for                                                                         http://www2.epa.gov/dockets/
                                                                                                       state of Connecticut pursuant to the
                                               this proceeding or the issuance of a                                                                          commenting-epa-dockets.
                                                                                                       Clean Air Act (CAA or Act) on June 1,
                                               Notice of Schedule for Environmental                    2016. The petition requested that EPA                 FOR FURTHER INFORMATION CONTACT:
                                               Review will serve to notify federal and                 make a finding that emissions from                    Questions concerning this proposed
                                               state agencies of the timing for the                    Brunner Island Steam Electric Station                 notice should be directed to Mr. Lev
                                               completion of all necessary reviews, and                (Brunner Island), located in York                     Gabrilovich, U.S. Environmental
                                               the subsequent need to complete all                     County, Pennsylvania, are significantly               Protection Agency, Office of Air Quality
                                               federal authorizations within 90 days of
                                                                                                       contributing to nonattainment and                     Planning and Standards, Air Quality
                                               the date of issuance of the Commission
                                                                                                       interfering with maintenance of the                   Policy Division, Mail Code C539–01,
                                               staff’s EA.
                                                  Persons who wish to comment only                     2008 ozone national ambient air quality               Research Triangle Park, NC 27711,
                                               on the environmental review of this                     standards (NAAQS) in Connecticut in                   telephone (919) 541–1496; email at
                                               project should submit an original and                   violation of the good neighbor provision              gabrilovich.lev@epa.gov.
                                               two copies of their comments to the                     under the CAA. The EPA proposes to
                                                                                                                                                             SUPPLEMENTARY INFORMATION:
                                               Secretary of the Commission.                            deny the petition because Connecticut
                                                                                                       has not met its burden to demonstrate                   The information in this document is
                                               Environmental commenters will be
                                                                                                       that the source emits or would emit in                organized as follows:
                                               placed on the Commission’s
                                               environmental mailing list, will receive                violation of the good neighbor provision              I. General Information
                                               copies of the environmental documents,                  such that it will significantly contribute            II. Background and Legal Authority
                                               and will be notified of meetings                        to nonattainment or interfere with                       A. Ozone and Public Health
                                               associated with the Commission’s                        maintenance of the 2008 ozone NAAQS                      B. Clean Air Act Sections 110 and 126
                                               environmental review process.                           in Connecticut. The EPA is further                       C. The EPA’s Historical Approach to
                                               Environmental commenters will not be                    proposing to deny the petition based on                     Addressing Interstate Transport of Ozone
                                               required to serve copies of filed                       the conclusion that the Brunner Island                      under the Good Neighbor Provision
                                                                                                       facility does not currently emit nor is it               D. The June 2016 CAA Section 126(b)
                                               documents on all other parties.
                                                                                                       expected to emit pollution in violation                     Petition from Connecticut
                                               However, the non-party commenters,
                                                                                                       of the good neighbor provision for the                   E. The Brunner Island Facility
                                               will not receive copies of all documents                                                                      III. The EPA’s Proposed Decision on
                                               filed by other parties or issued by the                 2008 ozone NAAQS.
                                                                                                                                                                   Connecticut’s CAA Section 126(b)
                                               Commission (except for the mailing of                   DATES: Comments. Comments must be
                                                                                                                                                                   Petition
                                               environmental documents issued by the                   received on or before March 26, 2018.                    A. The EPA’s Approach for Granting or
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                                               Commission) and will not have the right                 Public Hearing. The EPA is holding a                        Denying CAA Section 126(b) Petitions
                                               to seek court review of the                             public hearing on the EPA’s response to                     Regarding the 2008 8-hour Ozone
                                               Commission’s final order.                               the June 1, 2016, CAA section 126(b)                        NAAQS
                                                  The Commission strongly encourages                   petition from Connecticut on Friday,                     B. The EPA’s Proposal to Deny
                                               electronic filings of comments, protests                February 23, 2018. Additional                               Connecticut’s CAA Section 126(b)
                                               and interventions in lieu of paper using                information for this public hearing is                      Petition
                                               the eFiling link at http://www.ferc.gov.                available in a separate Federal Register              IV. Statutory Authority



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                                                                           Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices                                                   7711

                                               I. General Information                                  plan (SIP): (1) For any major proposed                EPA’s concerns with the technical
                                                  Throughout this document wherever                    new or modified source subject to a                   information submitted as part of
                                               ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean             CAA section 126(b) finding to be                      Connecticut’s CAA section 126(b)
                                               the U.S. EPA. Where can I get a copy of                 constructed or operate in violation of                petition, and the fact that the EPA has
                                               this document and other related                         the prohibition of CAA section                        previously issued a rulemaking defining
                                               information?                                            110(a)(2)(D)(i); or (2) for any major                 and at least partially addressing the
                                                  The EPA has established a docket for                 existing source for which such a finding              same environmental concern that the
                                               this action under Docket ID No. EPA–                    has been made to operate more than                    petition seeks to address, the EPA
                                               HQ–OAR–2016–0347 (available at                          three months after the date of the                    determined that it was appropriate to
                                               http://www.regulations.gov). The EPA                    finding. The statute, however, also gives             conduct independent analysis to
                                               has made available information related                  the Administrator discretion to permit                determine whether it should grant or
                                               to the proposed action and the public                   the continued operation of a source                   deny the petition. Such analysis,
                                               hearing at website: https://                            beyond 3 months if the source complies                however, is not required by the statute
                                               www.epa.gov/ozone-pollution/                            with emission limitations and                         and may not be necessary or appropriate
                                               connecticut-126-petition.                               compliance schedules provided by the                  in other circumstances.
                                                                                                       EPA to bring about compliance with the                   Section 110(a)(2)(D)(i) of the CAA,
                                               II. Background and Legal Authority                      requirements contained in CAA sections                often referred to as the ‘‘good neighbor’’
                                                                                                       110(a)(2)(D)(i) and 126 as expeditiously              or ‘‘interstate transport’’ provision of the
                                               A. Ozone and Public Health                                                                                    Act, requires states to prohibit certain
                                                                                                       as practicable but no later than 3 years
                                                 Ground-level ozone is not emitted                     from the date of the finding. Id.                     emissions from in-state sources if such
                                               directly into the air, but is a secondary                  Section 126(b) of the CAA provides a               emissions impact the air quality in
                                               air pollutant created by chemical                       mechanism for states and other political              downwind states. Specifically, CAA
                                               reactions between oxides of nitrogen                    subdivisions to seek abatement of                     sections 110(a)(1) and 110(a)(2)(D)(i)(I)
                                               (NOX) and volatile organic compounds                    pollution in other states that may be                 requires all states, within 3 years of
                                               (VOCs) in the presence of sunlight. For                 affecting their air quality; however, it              promulgation of a new or revised
                                               a discussion of ozone-formation                         does not identify specific criteria or a              NAAQS, to submit SIPs that contain
                                               chemistry, interstate transport issues,                 specific methodology for the                          adequate provisions prohibiting any
                                               and health effects, see the Cross-State                 Administrator to apply when deciding                  source or other type of emissions
                                               Air Pollution Rule Update for the 2008                  whether to make a section 126(b)                      activity within the state from emitting
                                               Ozone NAAQS. 81 FR 74504, 74513–4.                      finding or deny a petition. Therefore,                any air pollutant in amounts which will
                                                                                                       the EPA has discretion to identify                    contribute significantly to
                                               B. Clean Air Act Sections 110 and 126
                                                                                                       relevant criteria and develop a                       nonattainment in, or interfere with
                                                  The statutory authority for this action              reasonable methodology for determining                maintenance by, any other state with
                                               is provided by the CAA sections 126                     whether a section 126(b) finding should               respect to any such national primary or
                                               and 110(a)(2)(D)(i). Section 126(b) of the              be made. See, e.g., Chevron, U.S.A., Inc.             secondary ambient air quality standard.
                                               CAA provides, among other things, that                  v. NRDC, 467 U.S. 837, 842–43 (1984);                 As described further in section II.C, the
                                               any state or political subdivision may                  Smiley v. Citibank, 517 U.S. 735, 744–                EPA has developed a number of regional
                                               petition the Administrator of the EPA to                45 (1996). As an initial matter, the                  rulemakings to address CAA section
                                               find that any major source or group of                  EPA’s historic approach to evaluating                 110(a)(2)(D)(i)(I) for the ozone NAAQS.
                                               stationary sources in an upwind state                   CAA section 126(b) petitions looks first              The EPA’s most recent rulemaking, the
                                               emits or would emit any air pollutant in                to see whether a petition identifies or               Cross-State Air Pollution Rule Update
                                               violation of the prohibition of CAA                     establishes a technical basis for the                 (CSAPR Update), was promulgated to
                                               section 110(a)(2)(D)(i),1 which we                      requested section 126(b) finding. The                 address interstate transport under
                                               describe later in detail. Findings by the               EPA first evaluates the technical                     section 110(a)(2)(D)(i)(I) for the 2008
                                               Administrator, pursuant to this section,                analysis in the petition to see if that               ozone NAAQS. 81 FR 74504 (October
                                               that a source or group of sources emits                 analysis, standing alone, is sufficient to            26, 2016).
                                               air pollutants in violation of the CAA                  support a section 126(b) finding. The                    Considering both section
                                               section 110(a)(2)(D)(i) prohibition are                 EPA focuses on the analysis in the                    110(a)(2)(D)(i) and section 126, the EPA
                                               commonly referred to as section CAA                     petition because the statute does not                 has consistently acknowledged that
                                               126(b) findings. Similarly, petitions                   require the EPA to conduct an                         Congress created these provisions as
                                               submitted pursuant to this section are                  independent technical analysis to                     two independent statutory tools to
                                               commonly referred to as CAA section                     evaluate claims made in section 126(b)                address the problem of interstate
                                               126(b) petitions.                                       petitions. The petitioner thus bears the              pollution transport. See, e.g., 76 FR
                                                  CAA section 126(c) explains the                      burden of establishing, as an initial                 69052, 69054 (November 7, 2011).2
                                               impact of a CAA section 126(b) finding                  matter, a technical basis for the specific            Congress provided both provisions
                                               and establishes the conditions under                    finding requested. The EPA has no                     without indicating any preference for
                                               which continued operation of a source                   obligation to prepare an analysis to                  one over the other, suggesting it viewed
                                               subject to such a finding may be                        supplement a petition that fails, on its              either approach as a legitimate means to
                                               permitted. Specifically, CAA section                    face, to include an initial technical                 produce the desired result. While the
                                               126(c) provides that it would be a                      demonstration. Such a petition, or a                  two provisions unquestionably may be
                                               violation of section 126 of the Act and                 petition that fails to identify the specific          applied independently, they are also
                                               of the applicable state implementation                  finding requested, could be found                     closely linked in that a violation of the
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                                                                                                       insufficient.                                         prohibition in CAA section
                                                 1 The text of CAA section 126 codified in the U.S.       Nonetheless, the EPA may decide to
                                               Code cross-references section 110(a)(2)(D)(ii)          conduct independent analyses when                       2 Courts have also upheld the EPA’s position that

                                               instead of section 110(a)(2)(D)(i). The courts have     helpful in evaluating the basis for a                 CAA sections 110(a)(2)(D)(i) and section 126 are
                                               confirmed that this is a scrivener’s error and the                                                            two independent statutory tools to address the same
                                               correct cross-reference is to CAA section
                                                                                                       potential section 126(b) finding or                   problem of interstate transport. See GenOn REMA,
                                               110(a)(2)(D)(i), See Appalachian Power Co. v. EPA,      developing a remedy if a finding is                   LLC v. EPA, 722 F.3d 513, 520–23 (3d Cir. 2013);
                                               249 F.3d 1032, 1040–44 (DC Cir. 2001).                  made. As explained later, given the                   Appalachian Power Co. v. EPA, 249 F.3d at 1047.



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                                               7712                         Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices

                                               110(a)(2)(D)(i) is a condition precedent                    C. The EPA’s Historical Approach To                        In coordination with the NOX SIP Call
                                               for action under CAA section 126(b)                         Addressing Interstate Transport of                      rulemaking under CAA section
                                               and, critically, that significant                           Ozone Under the Good Neighbor                           110(a)(2)(D)(i)(I), the EPA also
                                               contribution and interference with                          Provision                                               addressed several pending CAA section
                                               maintenance are construed identically                          Given that ozone formation,                          126(b) petitions submitted by eight
                                               for purposes of both provisions (since                      atmospheric residence, and transport                    northeastern states regarding the same
                                               the identical terms are naturally                           occur on a regional scale (i.e., hundreds               air quality issues (i.e., interstate ozone
                                               interpreted as meaning the same thing                       of miles) over much of the eastern U.S.,                transport for the 1979 ozone NAAQS)
                                               in the two linked provisions). See                          the EPA has historically addressed                      addressed by the NOX SIP Call. These
                                               Appalachian Power Co. v EPA, 249 F.                         interstate transport of ozone pursuant to               CAA section 126(b) petitions asked the
                                               3d at 1049–50. Thus, in interpreting the                    the good neighbor provision through a                   EPA to find that ozone emissions from
                                               phrase ‘‘emits or would emit in                             series of regional rulemakings focused                  numerous sources located in 22 states,
                                               violation of the prohibition of section                     on the reduction of NOX emissions,                      and the District of Columbia, had
                                               [110(a)(2)(D)(i)],’’ if the EPA or a state                  routinely finding that downwind states’                 adverse air quality impacts on the
                                               has adopted provisions that eliminate                       problems attaining and maintaining the                  petitioning downwind states. Based on
                                               the significant contribution to                             ozone NAAQS result in part from the                     technical determinations made in the
                                               nonattainment or interference with                          contribution of pollution from multiple                 NOX SIP Call regarding upwind state
                                               maintenance in downwind states, then                        upwind sources located in different                     impacts on downwind air quality, the
                                               there simply is no violation of the CAA                     upwind states. For example, the EPA                     EPA in May 1999 made technical
                                               section 110(a)(2)(D)(i)(I) prohibition. Put                 noted in the NOX SIP Call that ‘‘[t]he                  determinations regarding the claims in
                                               another way, requiring additional                           fact that virtually every nonattainment                 the petitions, but did not at that time
                                               reductions would result in eliminating                      problem is caused by numerous sources                   make the CAA section 126(b) findings
                                               emissions that do not contribute                            over a wide geographic area is a factor                 requested by the petitions. 64 FR 28250.
                                               significantly to nonattainment or                           suggesting that the solution to the                     In making these technical
                                               interfere with maintenance of the                           problem is the implementation over a                    determinations, the EPA concluded that
                                               NAAQS, an action beyond the scope of                        wide area of controls on many sources,                  the NOX SIP Call would itself fully
                                               the prohibition in CAA section                              each of which may have a small or                       address and remediate the claims raised
                                               110(a)(2)(D)(i)(I) and therefore beyond                     unmeasurable ambient impact by itself.’’                in these petitions, and that the EPA
                                               the scope of EPA’s authority to make the                    63 FR 57356, 57377 (October 27, 1998).                  would therefore not need to take
                                               requested finding under CAA section                            The EPA has promulgated four                         separate action to remedy any potential
                                               126(b). See EPA v. EME Homer City                           regional interstate transport rulemakings               violations of the CAA section
                                               Generation, L.P., 134 S. Ct. 1584, 1604                     that have addressed the good neighbor                   110(a)(2)(D)(i) prohibition. 64 FR 28252
                                               n.18, 1608–09 (2014) (holding the EPA                       provision with respect to various ozone                 (May 25, 1999). However, more than 2
                                               may not require sources in upwind                           NAAQS. The EPA’s first such                             years after the petitions were submitted,
                                               states to reduce emissions by more than                     rulemaking, the NOX SIP Call,                           subsequent litigation over the NOX SIP
                                               necessary to eliminate significant                          addressed interstate transport with                     Call led the EPA to ‘‘de-link’’ the CAA
                                               contribution to nonattainment or                            respect to the 1979 ozone NAAQS and                     section 126(b) petition response from
                                               interference with maintenance of the                        was finalized on October 27, 1998. 63                   the NOX SIP Call, and the EPA made
                                               NAAQS in downwind states under the                          FR 57356. The NOX SIP Call                              final CAA section 126(b) findings for 12
                                               good neighbor provision).                                   promulgated statewide emission                          states and the District of Columbia,
                                                  Thus, it follows that if a state already                 budgets and required upwind states to                   finding sources in the states emitted in
                                               has a SIP that the EPA approved as                          adopt SIPs which would decrease NOX                     violation of the prohibition in the good
                                               adequate to meet the requirements of                        emissions by amounts that would                         neighbor provision with respect to the
                                               CAA section 110(a)(2)(D)(i)(I), the EPA                     significantly contribute to                             1979 ozone NAAQS based on the
                                               would not find that a source in that state                  nonattainment of the ozone NAAQS in                     affirmative technical determinations
                                               was emitting in violation of the                            downwind states. The EPA also                           made in the May 1999 rulemaking. In
                                               prohibition of CAA section                                  promulgated a model rule for a regional                 order to remedy the violation under
                                               110(a)(2)(D)(i)(I) absent new information                   allowance trading program called the                    CAA section 126(c), the EPA
                                               demonstrating that the SIP is now                           NOX Budget Trading Program that states                  promulgated requirements for affected
                                               insufficient to address the prohibition.                    could adopt in their SIPs as a                          sources in the upwind states to
                                               Similarly, if a state had failed to adopt                   mechanism to achieve some or all of the                 participate in a regional allowance
                                               an approvable SIP meeting the                               required emission reductions. Id. All of                trading program whose requirements
                                               requirements of CAA section                                 the jurisdictions covered by the NOX                    were designed to be interchangeable
                                               110(a)(2)(D)(i)(I) and the EPA                              SIP Call ultimately chose to adopt the                  with the requirements of the optional
                                               consequently promulgated a federal                          NOX Budget Trading Program into their                   NOX Budget Trading Program model
                                               implementation plan (FIP) that fully                        SIPs.4                                                  rule provided under the NOX SIP Call.
                                               addressed the deficiency, the FIP would                                                                             65 FR 2674 (January 18, 2000).
                                               eliminate emissions that significantly                      a SIP or promulgation of a FIP. For example, if a          The EPA next promulgated the Clean
                                                                                                           petitioner produces new data or information             Air Interstate Rule (CAIR) to address
                                               contribute to nonattainment or interfere                    showing a different level of contribution or other
                                               with maintenance in a downwind state,                       facts not considered when the SIP or FIP was
                                                                                                                                                                   interstate transport under the good
                                               and, hence, absent new information to                       promulgated, compliance with a SIP or FIP may not       neighbor provision with respect to the
                                                                                                                                                                   1997 ozone NAAQS, as well as the 1997
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                                               the contrary, sources in the upwind                         be determinative regarding whether the upwind
                                                                                                           sources would emit in violation of the prohibition      PM2.5 NAAQS. The EPA adopted the
                                               state would not emit in violation of the                    of section 110(a)(2)(D)(i)(I). See 64 FR 28250, 28274
                                               section 110(a)(2)(D)(i)(I) prohibition.3                    n.15 (May 25, 1999); 71 FR 25328, 25336 n.6 (April
                                                                                                                                                                   same framework to quantifying the level
                                                                                                           28, 2006); Appalachian Power, 249 F.3d at 1067          of states’ significant contribution to
                                                 3 Note however, a SIP or FIP implementing                 (later developments can be the basis for another
                                               section 110(a)(2)(D)(i)(I) only means that a state’s        CAA section 126 petition).                              effectively replaced by the ozone season NOX
                                               emissions are adequately prohibited for the                    4 The NO Budget Trading Program operated from
                                                                                                                       X                                           Budget Trading program under the Clean Air
                                               particular set of facts analyzed under approval of          2003 through 2008. Beginning in 2009, it was            Interstate Rule (CAIR).



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                                                                           Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices                                           7713

                                               downwind nonattainment in CAIR as it                    D.C. Circuit’s instructions in North                  shifting generation to existing units with
                                               used in the NOX SIP Call, based on the                  Carolina.                                             lower NOX emission rates within the
                                               determination in the NOX SIP Call that                     On August 8, 2011, the EPA                         same state.
                                               downwind ozone nonattainment is due                     promulgated the Cross-State Air                          The CSAPR Update finalized
                                               to the impact of emissions from                         Pollution Rule (CSAPR) to replace                     enforceable measures necessary to
                                               numerous upwind sources and states.                     CAIR. 76 FR 48208 (August 8, 2011).                   achieve the emission reductions in each
                                               70 FR 25162, 25172 (May 12, 2005).                      CSAPR addressed the same ozone and                    state by requiring power plants in
                                               Regarding the contribution to                           PM2.5 NAAQS as CAIR and, in addition,                 covered states to participate in the
                                               downwind pollution from upwind                          addressed interstate transport for the                CSAPR NOX Ozone Season Group 2
                                               states, the EPA explained that                          2006 PM2.5 NAAQS by requiring 28                      allowance trading program. The CSAPR
                                               ‘‘[t]ypically, two or more States                       states to reduce SO2 emissions, annual                Update’s trading programs and the
                                               contribute transported pollution to a                   NOX emissions, and/or ozone season                    EPA’s prior emission trading programs
                                               single downwind area, so that the                       NOX emissions that would significantly                (e.g., the NOX Budget Trading Program
                                               ‘collective contribution’ is much larger                contribute to other states’ nonattainment             associated with the NOX SIP Call)
                                               than the contribution of any single                     or interfere with other states’ abilities to          provide a proven, cost-effective
                                               State.’’ Id. at 25186. CAIR included two                maintain these air quality standards.                 implementation framework for
                                               distinct regulatory processes—a                         Consistent with prior determinations                  achieving emission reductions. In
                                               regulation to define significant                        made in the NOX SIP Call and CAIR, the                addition to providing environmental
                                               contribution (i.e., the emission                        EPA continued to find that multiple                   certainty (i.e., a cap on regional and
                                               reduction obligation) under the good                    upwind states contributed to downwind                 statewide emissions), these programs
                                               neighbor provision and provide for                      ozone nonattainment. Specifically, the                also provide regulated sources with
                                               submission of SIPs eliminating that                     EPA found ‘‘that the total ‘collective                flexibility when choosing compliance
                                               contribution, 70 FR 25162 (May 12,                      contribution’ from upwind sources                     strategies. This implementation
                                               2005), and a regulation to promulgate,                  represents a large portion of PM2.5 and               approach was shaped by previous
                                               where necessary, FIPs imposing                          ozone at downwind locations and that                  rulemakings and reflects the evolution
                                               emission limitations, 71 FR 25328                       the total amount of transport is                      of these programs in response to court
                                               (April 28, 2006). The FIPs required                     composed of the individual contribution               decisions and practical experience
                                               electric generating units (EGUs) in                     from numerous upwind states.’’ Id. at                 gained by states, industry, and the EPA.
                                               affected states to participate in regional              48237. Accordingly, the EPA conducted                    While some aspects of these
                                               allowance trading programs, which                       a regional analysis, calculated emission              rulemakings have been challenged in
                                               replaced the previous NOX Budget                        budgets for affected states, and required             court—and some aspects of these
                                                                                                       EGUs in these states to participate in                challenges have been upheld—each of
                                               Trading Program.
                                                                                                       new regional allowance trading                        these rulemakings essentially followed
                                                  In conjunction with the second CAIR                                                                        the same four-step framework to
                                                                                                       programs in order to reduce statewide
                                               regulation promulgating FIPs, the EPA                                                                         quantify and implement emission
                                                                                                       emission levels. CSAPR was subject to
                                               acted on a CAA section 126(b) petition                                                                        reductions necessary to address the
                                                                                                       nearly 4 years of litigation in which the
                                               received from the state of North                                                                              interstate transport requirements of the
                                                                                                       Supreme Court upheld EPA’s approach
                                               Carolina on March 19, 2004, seeking a                                                                         good neighbor provision. These steps
                                                                                                       to calculating emission reduction
                                               finding that large EGUs located in 13                                                                         are:
                                                                                                       obligations and apportioning upwind
                                               states were significantly contributing to               state responsibility under the good                      (1) Identifying downwind air quality
                                               nonattainment and/or interfering with                   neighbor provision, but also held that                problems relative to the ozone NAAQS.
                                               maintenance of the 1997 ozone and                       the EPA was precluded from requiring                  The EPA has identified downwind areas
                                               1997 PM2.5 NAAQS in North Carolina.                     more emission reductions than                         with air quality problems considering
                                               Citing the analyses conducted to                        necessary to address downwind air                     monitored ozone data where
                                               support the promulgation of CAIR, the                   quality problems. EPA v. EME Homer                    appropriate and air quality modeling
                                               EPA denied the CAA section 126(b)                       City Generation, L.P., 134 S. Ct. at 1607–            projections to a future compliance year.
                                               petition in full based on a determination               1609.                                                 In CSAPR and the CSAPR Update, the
                                               either that the named states were not                      Most recently, the EPA promulgated                 agency identified not only those areas
                                               adversely impacting downwind air                        the CSAPR Update to address the good                  expected to be in nonattainment with
                                               quality in violation of the good neighbor               neighbor provision requirements for the               the ozone NAAQS, but also those areas
                                               provision, or that such impacts were                    2008 ozone NAAQS. 81 FR 74504                         that may struggle to maintain the
                                               fully remedied by implementation of the                 (October 26, 2016). The final CSAPR                   NAAQS, despite clean monitored data
                                               emission reductions required by the                     Update built upon previous efforts to                 or projected attainment;
                                               CAIR FIPs. 71 FR 25328, 25330 (April                    address the collective contributions of                  (2) determining which upwind states
                                               28, 2006) (discussing the EPA’s basis for               ozone pollution from states in the                    are ‘‘linked’’ to these identified
                                               denial in part because the EPA                          eastern U.S. to downwind air quality                  downwind air quality problems and
                                               promulgated FIPs concurrently with the                  problems, including the NOX SIP Call,                 warrant further analysis to determine
                                               CAA section 126(b) response requiring                   CAIR, and the original CSAPR. The                     whether their emissions violate the good
                                               elimination of the interstate transport                 CSAPR Update finalized EGU NOX                        neighbor provision. In CSAPR and the
                                               problems within petitioning states).                    ozone season emission budgets for                     CSAPR Update, the EPA identified such
                                                  CAIR was remanded to the EPA by the                  affected states that were developed                   upwind states as those modeled to
                                               D.C. Circuit in July 2008 with the                      using uniform control stringency                      contribute at or above a threshold
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                                               instruction that the EPA replace the rule               available at a marginal cost of $1,400                equivalent to one percent of the
                                               ‘‘from the ground up.’’ North Carolina v.               per ton of NOX reduced. This level of                 applicable NAAQS. Upwind states
                                               EPA, 531 F.3d 896, 929 (D.C. Cir. 2008).                control stringency represented the                    linked to one of these downwind
                                               Accordingly, the EPA was required to                    potential for operating and optimizing                nonattainment or maintenance areas
                                               redo its analysis and ensure that                       existing selective catalytic reduction                were then evaluated to determine what
                                               implementation of the good neighbor                     (SCRs) controls; installing state-of-the-             level of emissions reductions, if any,
                                               provision would be consistent with the                  art NOX combustion controls; and                      should be required of each state;


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                                               7714                        Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices

                                                  (3) for states linked to downwind air                were imposed in order to achieve                        CSAPR Update to claim that four ozone
                                               quality problems, identifying upwind                    necessary emission reductions and                       monitors in Connecticut were projected
                                               emissions on a statewide basis that                     mitigate upwind states’, including                      to have nonattainment or maintenance
                                               significantly contribute to                             Pennsylvania’s, impact on downwind                      concerns in 2017.8
                                               nonattainment or interfere with                         states’ air quality.                                       To support the conclusion that
                                               maintenance of a standard. In all four of                                                                       Brunner Island impacts air quality at
                                                                                                       D. The June 2016 CAA Section 126(b)                     some of these monitoring sites,
                                               the EPA’s prior rulemakings, the EPA
                                                                                                       Petition From Connecticut                               Connecticut provides a technical
                                               apportioned emission reduction
                                               responsibility among multiple upwind                       On March 12, 2008, the EPA                           memorandum from Sonoma
                                               states linked to downwind air quality                   promulgated a revision to the ozone                     Technologies, Inc., outlining the results
                                               problems using cost-based and air                       NAAQS, lowering both the primary and                    of modeling that analyzed the impact of
                                               quality-based criteria to quantify the                  secondary standards to 75 ppb.5                         NOX emissions from Brunner Island on
                                               amount of a linked upwind state’s                       Subsequently, on June 1, 2016, the state                Connecticut. According to the petition,
                                               emissions that significantly contribute                 of Connecticut, through the Connecticut                 this modeling shows that emissions
                                               to nonattainment or interfere with                      Department of Energy and                                from Brunner Island contributed an
                                               maintenance in another state; and                       Environmental Protection (Connecticut),                 amount greater than one percent of the
                                                  (4) for states that are found to have                submitted a CAA section 126(b) petition                 2008 ozone NAAQS at six monitoring
                                               emissions that significantly contribute                 alleging that emissions from Brunner                    sites in Connecticut based on emissions
                                               to nonattainment or interfere with                      Island significantly contribute to                      from the facility during the 2011 ozone
                                               maintenance of the NAAQS downwind,                      nonattainment and/or interfere with                     season, and is therefore linked to
                                               implementing the necessary emission                     maintenance of the 2008 ozone NAAQS                     Connecticut’s air quality problems.
                                               reductions within the state. The EPA                    in Connecticut.6 In particular, the                        Connecticut further alleges that
                                               has done this by requiring affected                     petition contends that emissions from                   Brunner Island has cost-effective and
                                               sources in upwind states to participate                 Brunner Island significantly contribute                 readily available control technologies
                                               in allowance trading programs to                        to nonattainment and interfere with                     that can reduce its NOX emissions. The
                                               achieve the necessary emission                          maintenance of the 2008 ozone NAAQS                     petition first notes that Brunner Island
                                               reductions.                                             at six out of 12 ozone monitors in                      currently has no NOX post-combustion
                                                  In finalizing the CSAPR Update, the                  Connecticut. In support of this                         controls installed at any of the units but
                                               EPA determined the rule may only be a                   assertion, the petition contends that                   that the facility was planning to add the
                                               partial resolution of the good neighbor                 emissions from Brunner Island                           capability to use natural gas fuel at all
                                               obligation and that the emission                        contribute levels equal to or greater than              three of its units by the summer of 2017,
                                               reductions required by the rule ‘‘may                   one percent of the 2008 ozone NAAQS                     and argues that a federally enforceable
                                               not be all that is needed’’ to address                  to downwind nonattainment and                           mechanism to ensure Brunner Island
                                               transported emissions. 81 FR 74521–522                  maintenance receptors. The petition                     uses natural gas fuel would eliminate
                                               (October 26, 2016). The EPA noted that                  further contends that Brunner Island is                 Brunner Island’s significant
                                               the information available at that time                  able to reduce emissions at a reasonable                contribution to ozone levels in
                                               indicated that downwind air quality                     cost using readily available control                    Connecticut. The petition states that
                                               problems remained after                                 options. The petition therefore                         current federal and state rules will not
                                               implementation of the CSAPR Update to                   concludes that, consistent with EPA’s                   require Brunner Island to operate on
                                               which upwind states continued to be                     past approaches to addressing interstate                natural gas, install post-combustion
                                               linked at or above the one percent                      transport of ozone, NOX emissions from                  controls, or otherwise limit NOX
                                               threshold. However, the EPA could not                   Brunner Island significantly contribute                 emissions beyond previously allowable
                                               determine whether, at step three of the                 to nonattainment and interfere with                     permit levels. The petition summarizes
                                               four-step framework, the EPA had                        maintenance of the 2008 ozone NAAQS                     four potential ways by which Brunner
                                               quantified all emission reductions that                 in Connecticut. The petition requests                   Island could reduce its NOX emissions:
                                               may be considered highly cost effective                 that the EPA direct the operators of                    Replacing coal combustion with natural
                                               because the rule did not evaluate non-                  Brunner Island to reduce NOX emissions                  gas fuel, modifying its boiler furnace
                                               EGU ozone season NOX reductions and                     to eliminate this impact.                               burners and combustion systems to
                                               further EGU control strategies that are                    The petition cites several sources of                operate at lower flame temperatures,
                                               achievable on longer timeframes after                   data for its contention that Brunner is                 installing selective noncatalytic
                                               2017 (e.g., the implementation of new                   impacting air quality in Connecticut.                   reduction (SNCR) controls, and
                                               post-combustion controls).                              First, the petition notes that 10 out of 12             installing SCR controls.
                                                  Of particular relevance to this                      air quality monitors in Connecticut were                   The petition further discusses the
                                               proposal, the EPA determined in the                     violating the 2008 ozone NAAQS based                    EPA’s then-proposed CSAPR Update.
                                               CSAPR Update that emissions from                        on 2012–2014 data and preliminary                       Connecticut suggests that the then-
                                               Pennsylvania were linked to both                        2013–2015 data available at the time the                proposed CSAPR Update could not be
                                               nonattainment and maintenance                           petition was submitted.7 The petition                   relied upon to control emissions from
                                               concerns for the 2008 ozone NAAQS in                    further cites to modeling conducted by                  Brunner Island because: (1) It was not
                                               Connecticut based on projections to                     the EPA to support development of the                   final at the time the petition was
                                               2017. 81 FR 74538, 74539. The EPA                                                                               submitted and was therefore uncertain;
                                               found there were cost-effective emission                   5 See National Ambient Air Quality Standards for
                                                                                                                                                               and (2) the proposed rule would not
                                               reductions that could be achieved                       Ozone, Final Rule, 73 FR 16436 (March 27, 2008).
                                                                                                                                                               require Brunner Island to reduce its
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                                                                                                          6 Petition of the State of Connecticut Pursuant to
                                               within Pennsylvania, quantified an                      Section 126 of the Clean Air Act, submitted June
                                               emission budget for the state, and                      1, 2016. The petition is available in the docket for      8 The petition referred to modeling conducted for

                                               required EGUs located within the state,                 this action.                                            purposes of the proposed CSAPR Update in 2015.
                                               including the source identified in                         7 Of the 12 monitors in Connecticut, 7 are           See 80 FR 75706, 75725–726 (December 3, 2015).
                                                                                                       violating the 2008 ozone NAAQS based on 2014–           The EPA conducted updated modeling to support
                                               Connecticut’s petition, to comply with                  2016 data. See ozone design value table available       the final rulemaking, which also identified four
                                               EPA’s trading program under the                         at https://www.epa.gov/air-trends/air-quality-          projected nonattainment and maintenance receptors
                                               CSAPR Update. These emission budgets                    design-values#report.                                   in 2017. 81 FR 74533.



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                                                                             Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices                                                         7715

                                               emissions below the threshold of one                      grant the pending CAA section 126(b)                      constructed starting in 1961 through
                                               percent of the NAAQS. The petition                        petitions in front of the agency,                         1969. For over 50 years, all three units
                                               notes that the modeling to support the                    including Connecticut’s, arguing that                     at Brunner Island have historically
                                               proposed rule shows four Connecticut                      the petitions’ proposed remedies would                    burned coal. Brunner Island recently
                                               monitors with nonattainment and                           also provide critical air quality benefits                installed a natural gas connection
                                               maintenance problems after                                to the communities surrounding the                        pipeline allowing natural gas to be
                                               implementation of the proposed                            affected power plants in Indiana,                         combusted to serve Brunner Island’s
                                               emission budgets. Finally, the petition                   Kentucky, Ohio, Pennsylvania, and                         electric generators.13 Following
                                               suggests that the fact that EGUs may                      West Virginia, as well as other                           installation of this pipeline, Brunner
                                               trade allowances within and between                       downwind states, including New Jersey,                    Island primarily combusted natural gas
                                               states could result in emission levels in                 New York, Maine, Massachusetts, and                       as fuel during the 2017 ozone season.14
                                               excess of the state’s budget, and thus                    Rhode Island.10 On April 28, 2017,                        Using primarily natural gas as fuel
                                               suggest the rule will likely not affect                   Talen Energy Corp., the owner and                         during the 2017 ozone season reduced
                                               Brunner Island’s emissions. In                            operator of Brunner Island, submitted a                   Brunner Island’s actual ozone season
                                               particular, the petition suggests that this               letter urging the EPA to deny                             NOX emissions to 877 tons in 2017 from
                                               aspect of the CSAPR Update will not                       Connecticut’s CAA section 126(b)                          3,765 tons in 2016 and reduced the
                                               reduce emissions from Brunner Island                      petition due to alleged deficiencies in                   facility’s ozone season NOX emission
                                               on high electric demand days or days                      the petition. The EPA acknowledges                        rate to 0.090 pounds per millions of
                                               with the highest ozone levels.                            receipt of these letters, and has made                    British thermal units (lbs/mmBtu) in
                                                  Based on the technical support                         them available in the docket for this                     2017 from 0.370 lbs/mmBtu in 2016.15
                                               provided in its petition, Connecticut                     action. However, the EPA is not in this
                                               requests that the EPA make a CAA                                                                                    III. The EPA’s Proposed Decision on
                                                                                                         action responding directly to these
                                               section 126(b) finding and require that                                                                             Connecticut’s CAA Section 126(b)
                                                                                                         letters. Rather, the EPA encourages
                                               Brunner Island comply with emissions                                                                                Petition
                                                                                                         interested parties to review this
                                               limitations and compliance schedules to                   proposal and then submit relevant                         A. The EPA’s Approach for Granting or
                                               eliminate its significant contribution to                 comments during the public comment                        Denying CAA Section 126(b) Petitions
                                               nonattainment and interference with                       period.                                                   Regarding the 2008 8-Hour Ozone
                                               maintenance in Connecticut.                                  On May 16, 2017, the state of                          NAAQS
                                                  Section 126(b) of the Act requires the                 Connecticut filed suit in the U.S.
                                               EPA to either make a finding or deny a                                                                                 As described in section II.B of this
                                                                                                         District Court for the District of
                                               petition within 60 days of receipt of the                                                                           notice, as an initial matter in reviewing
                                                                                                         Connecticut alleging that the EPA failed
                                               petition and after holding a public                                                                                 CAA section 126(b) petitions, the EPA
                                                                                                         to take timely action on Connecticut’s
                                               hearing. However, any action taken by                                                                               evaluates the technical analysis in the
                                                                                                         CAA section 126(b) petition.11 On
                                               the EPA under CAA section 126(b) is                                                                                 petition to see if that analysis, standing
                                                                                                         February 7, 2018, the court issued an
                                               also subject to the procedural                                                                                      alone, is sufficient to support a CAA
                                                                                                         order requiring the EPA to hold a public
                                               requirements of CAA section 307(d). See                                                                             section 126(b) finding. In this regard,
                                                                                                         hearing on the petition within 30 days
                                               CAA section 307(d)(1)(N). One of these                                                                              the agency notes that certain elements of
                                                                                                         and to take final action within 60 days
                                               requirements is that the EPA conduct                                                                                the analysis provided in the petition
                                                                                                         of the court’s order. See Ruling on
                                               notice-and-comment rulemaking,                                                                                      appear to be deficient and thereby the
                                                                                                         Motions for Summary Judgment and
                                               including issuance of a notice of                                                                                   conclusions that the petition draws are
                                                                                                         Motion Concerning Remedy, State of
                                               proposed action, a period for public                                                                                not fully supported by Connecticut’s
                                                                                                         Connecticut v. EPA, No. 3:17–cv–00796
                                               comment, and a public hearing before                                                                                technical assessment. For example, in
                                                                                                         (D. Conn. February 7, 2018).
                                               making a final determination whether to                                                                             the context of interstate pollution
                                               make the requested finding. In light of                   E. The Brunner Island Facility                            transport, in existing EPA analyses, the
                                               the time required for notice-and-                           Brunner Island is a 1,411 megawatt                      agency focuses its analysis on
                                               comment rulemaking, CAA section                           facility with three tangentially-fired                    contributions to high ozone days at the
                                               307(d)(10) provides for a time extension,                 steam boiler EGUs, each equipped with                     downwind receptor. The analysis and
                                               under certain circumstances, for                          low NOX burner technology with                            metrics provided by the petitioner
                                               rulemakings subject to the section                        closed-coupled/separated over fire air                    provide some information on the
                                               307(d) procedural requirements. In                        (LNC3) combustion controls, located in
                                               accordance with section 307(d)(10), the                   York County in southeastern                               available at https://www.epa.gov/airmarkets/power-
                                               EPA determined that the 60-day period                                                                               sector-modeling-platform-v513.
                                                                                                         Pennsylvania.12 The units were                               13 The Connecticut CAA section 126(b) petition
                                               for action on Connecticut’s petition
                                                                                                                                                                   and the April 28, 2017, letter from Talen Energy
                                               would be insufficient for the EPA to                         10 The EPA has received five CAA section 126(b)        Corp. indicate that Brunner Island has taken
                                               complete the necessary technical                          petitions from two other states (Delaware and             necessary steps to construct a natural gas pipeline
                                               review, develop an adequate proposal,                     Maryland) regarding the 2008 and 2015 ozone               and enable the combustion of natural gas. On June
                                               and allow time for notice and comment,                    NAAQS, each claiming that one or more specific            7, 2016, an article by S&P Global indicated that
                                                                                                         power plant EGUs in upwind states emit or would           Talen Energy Corp. is in the process of converting
                                               including an opportunity for public                       emit in violation of the good neighbor provision.         the Brunner Island plant to co-fire with natural gas.
                                               hearing. Therefore, on July 25, 2016, the                 However, the EPA notes that this rulemaking only          These documents are available in the docket for this
                                               EPA published a final rule extending                      addresses Connecticut’s CAA section 126 petition          action.
                                               the deadline for the EPA to take final                    regarding Brunner Island in Pennsylvania and the             14 Hourly emission rates reported to the EPA and
                                                                                                         EPA is not requesting proposing action or                 fuel usage reported to Environmental Impact
                                               action on Connecticut’s CAA section
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                                                                                                         requesting comment on the other five petitions.           Assessment demonstrate Brunner Island
                                               126(b) petition to January 25, 2017.9                        11 Two citizen groups, Sierra Club and                 predominately used natural gas during the ozone
                                                  On April 25, 2017, a coalition of                      Connecticut Fund for the Environment, intervened          season. The emissions data for 2017 are publicly
                                               public health, conservation, and                          in this case on behalf of the state of Connecticut.       available at https://www.epa.gov/ampd and the fuel
                                                                                                            12 For tangentially-fired boiler types, LNC3 is        usage data are available at https://www.eia.gov/
                                               environmental organizations submitted                                                                               electricity/data/eia923/.
                                                                                                         state of the art (See sections 3.9.2 and 5.2.1 on pages
                                               letters urging the EPA to immediately                     3–25 and 5–5 of the Integrated Planning Model                15 These data are publicly available at https://

                                                                                                         (IPM) 5.13 documentation for details about                www.epa.gov/ampd. See Air Markets Program Data
                                                 9 81   FR 48348 (July 25, 2016).                        combustion controls. The IPM documentation is             in the docket for this proposal.



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                                               7716                        Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices

                                               frequency and magnitude of ozone                        II.B of this notice in more detail, the               conclusion that a state’s emissions met
                                               impacts. However, the information is                    EPA believes any prior findings made                  or exceeded this threshold only
                                               unclear as to the modeled and/or                        under the good neighbor provision are                 indicated that further analysis was
                                               measured ozone levels on those days.16                  informative—if not determinative—for a                appropriate to determine whether any of
                                               We also note that, the Connecticut                      CAA section 126(b) action, and thus the               the upwind state’s emissions met the
                                               petition relied on emissions data from                  EPA’s four-step approach under CAA                    statutory criteria of significantly
                                               2011, which may not be representative                   section 110(a)(2)(D)(i)(I) is also                    contributing to nonattainment or
                                               of current and/or future NOX emissions                  appropriate for evaluating under CAA                  interfering with maintenance. As
                                               and ozone levels in Connecticut,                        section 126(b) whether a source or                    discussed in more detail in section II.C,
                                               Pennsylvania, and the rest of the                       group of sources will significantly                   this further analysis in step three
                                               region.17                                               contribute to nonattainment or interfere              considers cost, technical feasibility and
                                                  Nonetheless, the EPA’s primary                       with maintenance of the 2008 8-hour                   air quality factors to determine whether
                                               approach for reviewing the petition                     ozone NAAQS in a petitioning state.                   any emissions deemed to contribute to
                                               involves EPA’s independent technical                    Because the EPA interprets significant                the downwind air quality factor must be
                                               analyses to help evaluate the basis for a               contribution to nonattainment and                     controlled pursuant to the good
                                               potential CAA section 126(b) finding.                   interference with maintenance to mean                 neighbor provision. Thus, while the
                                               As described in sections II.A and II.C of               the same thing under both provisions,                 EPA’s modeling conducted for the
                                               this notice, ozone is a regional pollutant              the EPA’s decision whether to grant or                CSAPR Update did link emissions from
                                               and previous EPA analyses and                           deny a CAA section 126(b) petition                    Pennsylvania to nonattainment and
                                               regulatory actions have evaluated the                   regarding the 2008 8-hour ozone                       maintenance receptors in Connecticut in
                                               regional interstate ozone transport                     NAAQS depends on whether there is a                   2017, this does not conclude the
                                               problem using a four-step regional                      downwind air quality problem in the                   determination as to whether Brunner
                                               analytic framework.                                     petitioning state (i.e., step one of the              Island is operating in violation of the
                                                  The EPA applied this four-step                       four-step framework); whether the                     good neighbor provision with respect to
                                               framework in the promulgation of the                    upwind state where the source subject                 the 2008 ozone NAAQS.
                                               CSAPR Update under CAA section                          to the petition is located is linked to the              Similarly, and for the same reasons,
                                               110(a)(2)(D)(i)(I) to at least partially                downwind air quality problem (i.e., step              the impact of a single source on
                                               address interstate transport with respect               two); and, if such a linkage exists,                  downwind air quality is not necessarily
                                               to the 2008 ozone NAAQS. The CSAPR                      whether there are additional feasible                 determinative of whether that source
                                               Update was promulgated in 2016 and                      and cost-effective emission reductions                emits or would emit in violation of the
                                               finalized EGU NOX ozone season                          achievable at the source(s) named in the              good neighbor provision. Thus, the
                                               emission budgets to address the good                    CAA section 126(b) petition (i.e., step               modeling summary provided by
                                               neighbor provision for the 2008 ozone                   three).                                               Connecticut regarding Brunner Island’s
                                               NAAQS. While CAA section 126(b)                                                                               potential impact on Connecticut
                                                                                                       B. The EPA’s Proposal To Deny                         monitors does not indicate whether in
                                               differs from CAA section                                Connecticut’s CAA Section 126(b)
                                               110(a)(2)(D)(i)(I) in that CAA section                                                                        step three of the EPA’s framework there
                                                                                                       Petition                                              are feasible and highly cost-effective
                                               126(b) gives states the ability to petition
                                                                                                          As described earlier in section II.C of            emission reductions available at
                                               the EPA regarding compliance with the                   this notice, the EPA has determined that              Brunner Island such that EPA could
                                               good neighbor provision by a single                     a state may contribute significantly to               determine that this facility emits or
                                               source or group of sources, CAA section                 nonattainment or interfere with                       would emit in violation of the good
                                               126(b) specifically cross-references the                maintenance of the 2008 ozone NAAQS                   neighbor provision.
                                               substantive prohibitions of the good                    where emissions from the state impact                    With respect to the question of
                                               neighbor provision. To that end, CAA                    a downwind air quality problem                        whether there are feasible and highly
                                               sections 110(a)(2)(D)(i)(I) and 126(b)                  (nonattainment or maintenance                         cost-effective NOX emission reductions
                                               both represent mechanisms to address                    receptor) at a level exceeding a one                  available at Brunner Island, CAA
                                               the same functional prohibition of                      percent contribution threshold, and                   section 126(b) indicates that a petitioner
                                               emissions activity from upwind states                   where the sources in the state can                    must demonstrate that a major source or
                                               that will contribute significantly to                   implement emission reductions through                 group of stationary sources ‘‘emits or
                                               nonattainment or interfere with                         highly cost-effective control measures.               would emit’’ any air pollutant in
                                               maintenance of the NAAQS in a                           See EPA v. EME Homer City Generation,                 violation of the prohibition of CAA
                                               downwind state.                                         L.P., 134 S. Ct. at 1606–07.                          section 110(a)(2)(D)(i)(I). Congress did
                                                  Given the specific cross-reference in                   The EPA has already conducted such                 not specify the intended meaning for
                                               CAA section 126(b) to the substantive                   an analysis for the 2008 ozone NAAQS                  these terms in either CAA section 126(b)
                                               prohibition in CAA section                              with respect to Pennsylvania’s impact                 itself or the legislative history for this
                                               110(a)(2)(D)(i)(I), as discussed in section             on receptors in Connecticut. As the                   provision. Therefore, in the context of
                                                                                                       petitioners note, the EPA determined                  this response to Connecticut’s CAA
                                                  16 Table two in the Sonoma Technologies, Inc.
                                                                                                       that, based on 2017 modeling                          section 126(b) petition regarding
                                               technical memorandum that supports Connecticut’s
                                               petition indicates that the ‘‘maximum number of         projections, Pennsylvania was linked to               Brunner Island for the 2008 ozone
                                               days any one monitor [in Connecticut] had a             four air quality monitors in Connecticut              NAAQS, the EPA reasonably and
                                               significant ozone contribution’’ was two.               expected to have nonattainment or                     appropriately proposes to interpret
                                                  17 The Connecticut petition relies on air quality
                                                                                                       maintenance concerns. However,                        these ambiguous terms in a particular
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                                               modeling that uses 2011 emissions data. As an
                                               example of how emissions have changed between
                                                                                                       contrary to the assertions made in                    way given the facility’s existing
                                               2011 and a recent historical year, the EPA notes that   Connecticut’s petition, the one percent               operating conditions, as further
                                               Pennsylvania’s 2017 EGU NOX ozone season                threshold used in step two in the                     described later in this section, and
                                               emissions were 79 percent below 2011 levels.            CSAPR Update did not alone represent                  consistent with EPA’s historical
                                               Brunner Island is located in Pennsylvania, which as
                                               a facility reduced its ozone season NOX emissions
                                                                                                       emissions that were considered to                     approach to evaluating interstate ozone
                                               by 88 percent in 2017 relative to 2011 levels           ‘‘contribute significantly’’ or ‘‘interfere           pollution transport under the good
                                               (https://www.epa.gov/ampd).                             with maintenance’’ of the NAAQS. The                  neighbor provision. Specifically, the


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                                                                           Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices                                                     7717

                                               EPA is proposing to interpret the phrase                3,765 tons in 2016 to 877 tons in 2017,                preceding the completion of this natural
                                               ‘‘emits or would emit’’ in this context to              and the facility’s ozone season NOX                    gas pipeline connection project, average
                                               mean, first, that a source may ‘‘emit’’ in              emission rate declined from 0.370 lbs/                 annual natural gas prices ranged from
                                               violation of the good neighbor provision                mmBtu in 2016 to 0.090 lbs/mmBtu in                    $2.52/mmBtu to $4.37/mmBtu (i.e.,
                                               if, based on current emission levels, the               2017. Thus, Brunner Island has already                 between 2009 and 2016).19 The capital
                                               upwind state contributes to downwind                    implemented the emission reductions                    expenditure to construct a natural gas
                                               air quality problems and the source may                 consistent with what Connecticut                       pipeline connection suggests that
                                               be further controlled through                           asserted would qualify as a cost-                      natural gas prices within this range
                                               implementation of highly cost-effective                 effective strategy for reducing NOX                    make it economic (i.e., cheaper) for
                                               controls; and, second, that a source                    emissions. Connecticut’s section 126(b)                Brunner Island to burn natural gas to
                                               ‘‘would emit’’ in violation of the good                 petition does not demonstrate that, at                 generate electricity relative to burning
                                               neighbor provision if, based on                         this current level of emissions, Brunner               coal. As such, future natural gas prices
                                               reasonably anticipated future emission                  Island ‘‘emits’’ in violation of the good              in this same range suggest that Brunner
                                               levels (accounting for existing                         neighbor provision.                                    Island will continue to primarily burn
                                               conditions), the upwind state                              The EPA also believes that Brunner                  natural gas during future ozone seasons.
                                               contributes to downwind air quality                     Island will likely continue to primarily               The EPA and other independent
                                               problems and the source could be                        use natural gas as fuel during future                  analysts expect future natural gas prices
                                               further controlled through                              ozone seasons for several reasons. First,              to remain low and within this 2009 to
                                               implementation of highly cost-effective                 compliance with the CSAPR Update                       2016 range due both to supply and
                                               controls. This interpretation is                        provides an economic incentive to cost-                distribution pipeline build-out. For
                                               consistent with EPA’s historic approach                 effectively reduce NOX emissions.                      example, the Energy Information
                                               to addressing ozone transport under the                 Specifically, Brunner Island’s                         Administration’s (EIA) 2018 Annual
                                               good neighbor provision wherein EPA’s                   participation in the CSAPR NOX ozone                   Energy Outlook (AEO) natural gas price
                                               ozone transport air quality and NOX                     season Group 2 allowance trading                       projections for Henry Hub spot price
                                               reduction potential analyses have used                  program provides an economic                           range from $3.06/mmBtu in 2018 to
                                               future emission projections that were                   incentive to produce electricity in ways               $3.83/mmBtu in 2023.20 Moreover, the
                                               derived considering recent and                          that lower ozone-season NOX, such as                   AEO short-term energy outlook and
                                               projected emission levels. Accordingly,                 by burning natural gas relative to                     New York Mercantile Exchange futures
                                               the EPA believes it is reasonable to                    burning coal at this particular power                  further support the estimates of a
                                               interpret the CAA section 126(b)                        plant. Under the CSAPR Update, each                    continued low-cost natural gas supply.21
                                               requirements for ozone transport in a                   ton of NOX emitted by a covered EGU                    These independent analyses of fuel
                                               consistent manner. Consistent with this                 has an economic value—a direct cost in                 price data and projections lead to the
                                               interpretation, the EPA has therefore                   the case that a power plant must                       EPA’s expectation that fuel-market
                                               evaluated whether Brunner Island emits                  purchase an allowance to cover that ton                economics will continue to support
                                               or would emit in violation of the good                  of emissions for CSAPR Update                          Brunner Island’s primarily burning
                                               neighbor provision based on both                        compliance or an opportunity cost in                   natural gas during future ozone seasons
                                               current and future anticipated emission                 the case that a power plant must use an                through at least 2023. Taken together
                                               levels.                                                 allowance that is in its account for                   with projected continued broader
                                                  As described in more detail later in                 compliance and thereby foregoes the                    downward trends in NOX emissions
                                               this section, Brunner Island primarily                  opportunity to sell that allowance on                  resulting in improved air quality in
                                               burned natural gas with a low NOX                       the market. The EPA notes that Brunner                 Connecticut, the EPA expects that
                                               emission rate in the 2017 ozone season                  Island’s 2017 emissions would have                     Connecticut’s ozone nonattainment and
                                               and the EPA expects the facility to                     been approximately 2,714 tons more                     maintenance problems will be resolved
                                               continue operating primarily by burning                 than its actual 2017 emissions if it had               in the future and that Brunner Island
                                               natural gas in future ozone seasons. As                 operated as a coal-fired generator, as it              will likely continue to primarily burn
                                               such, the EPA does not find at this time                did in 2016.18 This reduction in NOX                   natural gas during the ozone season
                                               that there are additional feasible and                  emissions that is attributable to                      until that time.
                                               highly cost-effective NOX emission                      primarily burning natural gas has an                      The context in which Brunner Island
                                               reductions available at Brunner Island.                 economic value in the CSAPR                            installed natural gas-firing capability
                                               The EPA is therefore proposing to                       allowance trading market.                              and burned natural gas is consistent
                                               determine, based on this context, that                     Second, there are continuing fuel-
                                               Brunner Island does not and would not                   market based economic incentives                         19 In the 2018 reference case Annual Energy

                                               ‘‘emit’’ in violation of the good neighbor              suggesting that Brunner Island will                    Outlook (AEO) released February 6, 2018, created
                                                                                                                                                              by the U.S. Energy Information Administration
                                               provision with respect to the 2008                      primarily burn natural gas during the                  (EIA), natural gas prices for the power sector for
                                               ozone NAAQS.                                            ozone season. Brunner Island elected to                2018 through 2023. Available at https://
                                                  Connecticut’s CAA section 126(b)                     add the capability to primarily utilize                www.eia.gov/outlooks/aeo/data/browser/#/?id=13-
                                               petition first proposes that the operation              natural gas by way of a large capital                  AEO2018&cases=ref2018&sourcekey=0.
                                                                                                                                                                20 Projected delivered natural gas prices for the
                                               of natural gas is an available cost-                    investment in a new natural gas
                                                                                                                                                              power sector in the Middle Atlantic region, where
                                               effective emission reduction measure                    pipeline capacity connection. Brunner                  Brunner Island is located, ranged between $3.56 in
                                               that could be implemented at Brunner                    Island’s operators would have planned                  2018 and $3.99/mmBtu in 2023. The projected
                                               Island. As noted previously, Brunner                    for and constructed this project during                delivered coal prices for the Middle Atlantic remain
                                               Island completed construction of a                      the recent period of relatively low                    relatively constant, ranging from $2.51 to $2.56/
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                                                                                                                                                              mmBtu. https://www.eia.gov/outlooks/aeo/data/
                                               natural gas pipeline connection prior to                natural gas prices. In the years                       browser/#/?id=3-AEO2018&region=1-2&cases=
                                               the beginning of the 2017 ozone season                                                                         ref2018&start=2016&end=2023&f=A&linechart=
                                               (i.e., by May 1, 2017). Brunner Island                    18 This estimated emissions difference was           ref2018-d121317a.3-3-AEO2018.1-2&map=ref2018-
                                               operated primarily using natural gas as                 calculated as the difference between 2017 reported     d121317a.4-3-AEO2018.1-2&sourcekey=0 and
                                                                                                       NOX emissions and a counterfactual 2017 NOX            http://tonto.eia.gov/dnav/ng/hist/rngwhhda.htm.
                                               fuel for the 2017 ozone season. As a                    emissions estimate using 2017 operations (i.e., heat     21 AEO short-term energy outlook available at
                                               result, Brunner Island’s actual ozone                   input), multiplied by the 2016 NOX emission rate       https://www.eia.gov/outlooks/steo/report/nat
                                               season NOX emissions declined from                      reflecting coal-fired generation.                      gas.php.



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                                               7718                        Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices

                                               with observed recent trends in natural                  Pennsylvania budget of 17,952 tons. The               to ensure that upwind emissions are not
                                               gas utilization within the power sector,                petition also fails to support its                    reduced by more than necessary to
                                               suggesting that Brunner Island’s                        contention that Brunner Island’s                      improve downwind air quality,
                                               economic situation in which it                          participation in the allowance trading                consistent with the Supreme Court’s
                                               primarily burns gas as fuel during the                  program will result in increased                      holding in EPA v. EME Homer City
                                               ozone season is not unique or limited.                  emissions on days with either high                    Generation, L.P., 134 S. Ct. at 1604 n.18,
                                               Comparing total heat input from 2014                    electricity demand or days with the                   1608–09. Recent EPA analyses that
                                               with 2017 for all units that utilize                    highest ozone levels.                                 projects emission levels to a future year
                                               natural gas and report to the EPA’s                        Finally, to the extent that Connecticut            indicates that no air quality monitors in
                                               Clean Air Markets Division, historical                  identifies other control strategies that              Connecticut are projected to have
                                               data showed an increased use of natural                 could potentially be implemented at                   nonattainment or maintenance problems
                                               gas of 14 percent.22 This overall increase              Brunner Island in order to reduce NOX                 with respect to the 2008 ozone NAAQS
                                               results from both an increase in capacity               emissions, including modifications to                 by 2023.25 While this modeling is not
                                               from the construction of additional                     combustion controls or implementation                 necessarily determinative of whether
                                               units and an increased gas-fired                        of post-combustion controls like SCRs                 Brunner Island emits or would emit in
                                               utilization capacity factor. The available              and SNCRs, the petition does not                      violation of the good neighbor provision
                                               heat input capacity increased six                       include any information or analysis                   before 2023, it does suggest that, by that
                                               percent while average capacity factor                   regarding the costs of such controls nor              date, it may no longer be necessary to
                                               based on heat input increased by eight                  does it demonstrate that such controls                further reduce emissions from any state
                                               percent (23 percent to 25 percent).                     are highly cost effective considering                 to ensure attainment of the 2008 ozone
                                                  Accordingly, based on this                           potential downwind air quality impacts.               NAAQS in Connecticut.
                                               information demonstrating that Brunner                  As noted previously, in the CSAPR
                                               Island can be expected to continue to                   Update, the EPA quantified upwind                        Based on the information discussed in
                                               primarily operate using natural gas fuel                states’ obligations under the good                    this notice, the EPA proposes to deny
                                               in the future, the EPA cannot conclude                  neighbor provision based on emission                  the petition because Connecticut has not
                                               that the facility ‘‘would emit’’ in                     reductions available at a marginal cost               met its burden to demonstrate that
                                               violation of the good neighbor provision                of $1,400/ton of NOX reduced. EPA’s                   Brunner Island emits or would emit in
                                               with respect to the 2008 ozone NAAQS.                   analysis showed that additional NOX                   violation of the good neighbor provision
                                               The EPA notes that Connecticut’s                        reductions at EGUs, including                         with respect to the 2008 ozone
                                               petition relied on emission data from                   installation of new SCRs and SNCRs at                 NAAQS.26 The EPA also proposes to
                                               2011 to attempt to demonstrate that                     EGUs that lacked post-combustion                      find, based on its own analysis, that
                                               Brunner Island is significantly                         controls, would be more expensive.24                  there are no additional cost-effective
                                               contributing to nonattainment or                        The cost of such new post-combustion                  measures available at the source, and
                                               interfering with maintenance. In light of               controls at Brunner Island would likely               thus Brunner Island does not emit nor
                                               recent changes in Brunner Island’s                      be even more expensive considering                    would it emit in violation of the good
                                               operations, the EPA does not believe                    current and anticipated emissions rates.              neighbor provision with respect to the
                                               this information provides a current,                       Under the EPA’s approach to                        2008 ozone NAAQS. These proposed
                                               reasonable estimate of how much NOX                     quantifying those amounts of emissions                determinations are based on the fact that
                                               pollution Brunner Island emits or would                 that significantly contribute to                      Brunner Island combusted primarily
                                               emit currently or in the future.23                      nonattainment or interfere with                       natural gas in the 2017 ozone season,
                                                  We do not agree with the petition to                 maintenance, the dollar-per-ton cost of               resulting in a low NOX emission rate for
                                               the extent that it asserts that the ability             reducing emissions is balanced against                this facility, as well as the expectation
                                               to buy and bank allowances in the                       two air quality factors: The amount of                that future operation will be consistent
                                               CSAPR Update’s ozone season NOX                         NOX emission reductions available                     with 2017 operations. The EPA requests
                                               allowance trading program will                          using a particular control strategy and               comment on its proposed denial of
                                               incentivize Brunner Island to increase                  the downwind reductions in ozone at                   Connecticut’s section 126(b) petition,
                                               its emissions. Connecticut fails to                     identified receptors that would result                including the bases for the decision
                                               support its contention and thus does not                                                                      described herein.
                                                                                                       from the emission reductions.
                                               meet the demonstration burden imposed
                                                                                                       Connecticut has not attempted to
                                               on CAA section 126(b) petition.                                                                                 25 See Supplemental Information on the Interstate
                                                                                                       evaluate what reductions in ozone
                                               Moreover, Brunner Island’s 2017                                                                               Transport State Implementation Plan Submissions
                                                                                                       would accrue from these additional
                                               emission levels demonstrate that,                                                                             for the 2008 Ozone National Ambient Air Quality
                                                                                                       control strategies and thus has not                   Standards under Clean Air Act Section
                                               contrary to Connecticut’s assertions,
                                                                                                       demonstrated that the additional costs                110(a)(2)(D)(i)(I) (October 2017), available in the
                                               Brunner Island reduced emissions while                                                                        docket for this proposed action. The EPA is not
                                                                                                       associated with these controls would be
                                               operating in the context of the CSAPR                                                                         making any final determination regarding future
                                                                                                       justified by the downwind reductions in
                                               Update allowance trading program. This                                                                        downwind air quality in this action, and is
                                                                                                       ozone. Indeed, the petition includes no               therefore not requesting comment on the air quality
                                               is also true for EGUs in Pennsylvania
                                               more broadly, which had collective                      analysis of how downwind air quality                  modeling presented in the October 2017
                                                                                                       would be impacted by the emission                     memorandum.
                                               emissions of 13,646 tons, well below the                                                                        26 As previously discussed, the petition correctly
                                                                                                       reductions it contends are necessary
                                                                                                                                                             identifies that Pennsylvania is linked to downwind
                                                  22 From 8.4 billion mmBtu to 9.6 billion mmBtu.      under the good neighbor provision. This               air quality problems in Connecticut, and has been
                                               See EPA’s Clean Air Markets Division data at            element is not only key to EPA’s                      included in the CSAPR Update with respect to its
daltland on DSKBBV9HB2PROD with NOTICES




                                               https://ampd.epa.gov/ampd/.                             interpretation of the good neighbor                   downwind impacts on Connecticut’s attainment of
                                                  23 As noted above, Pennsylvania’s 2017 EGU NO
                                                                                                  X    provision as it applies step three to                 the 2008 ozone NAAQS. While this action proposes
                                               ozone season emissions were 79 percent below                                                                  to determine that no further controls are necessary
                                               2011 levels. Brunner Island is located in
                                                                                                       ozone pollution transport, but necessary              to ensure that Brunner Island does not and would
                                               Pennsylvania, which as a facility reduced its ozone                                                           not ‘‘emit’’ in violation of the good neighbor
                                               season NOX emissions by 88 percent in 2017                24 See EGU NO Mitigation Strategies Final Rule      provision for the 2008 ozone NAAQS with respect
                                                                                                                       X
                                               relative to 2011 levels. Data regarding Brunner         Technical Support Document available at https://      to Connecticut, this proposal does not make any
                                               Island emissions available at https://www.epa.gov/      www.regulations.gov, Docket ID No. EPA–HQ–            broader determination as to the good neighbor
                                               ampd.                                                   OAR–2015–0500–0554.                                   obligation for Pennsylvania.



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                                                                           Federal Register / Vol. 83, No. 36 / Thursday, February 22, 2018 / Notices                                                 7719

                                               IV. Statutory Authority                                 and Technology, Standards and Health                  Clean Water Act, which provides for the
                                                 42 U.S.C. 7410, 7426, 7601.                           Protection Division, Environmental                    collection of information to be used to
                                                                                                       Protection Agency, 1200 Pennsylvania                  protect human health and the
                                                 Dated: February 15, 2018.                             Ave. NW, Washington, DC 20460;                        environment. The advisory information
                                               E. Scott Pruitt,                                        telephone number: (202) 566–2083; fax                 collected identifies the waterbody under
                                               Administrator.                                          number: (202) 566–0409; email address:                advisory, the fish or shellfish species
                                               [FR Doc. 2018–03679 Filed 2–21–18; 8:45 am]             fontenelle.samantha@epa.gov.                          and size ranges included in the
                                               BILLING CODE 6560–50–P                                  SUPPLEMENTARY INFORMATION:                            advisory, the chemical contaminants
                                                                                                          Supporting documents which explain                 and residue levels causing the advisory
                                                                                                       in detail the information that the EPA                to be issued, the waterbody type (river,
                                               ENVIRONMENTAL PROTECTION                                will be collecting are available in the
                                               AGENCY                                                                                                        lake, estuary, coastal waters), and the
                                                                                                       public docket for this ICR. The docket                target populations to whom the advisory
                                               [EPA–HQ–OW–2014–0350; FRL–9973–50–                      can be viewed online at                               is directed. The results of the survey are
                                               OW]                                                     www.regulations.gov or in person at the               shared with states, territories, tribes,
                                                                                                       EPA Docket Center, WJC West, Room                     other federal agencies, and the public
                                               Proposed Information Collection                         3334, 1301 Constitution Ave. NW,
                                               Request; Comment Request; National                                                                            through and online database. The
                                                                                                       Washington, DC. The telephone number                  responses to the survey are voluntary
                                               Fish Program (Formerly Referred to as                   for the Docket Center is 202–566–1744.
                                               the National Listing of Fish Advisories)                                                                      and the information requested is part of
                                                                                                       For additional information about EPA’s
                                               (Renewal)                                                                                                     the state public record associated with
                                                                                                       public docket, visit http://www.epa.gov/
                                                                                                       dockets.                                              the advisories. No confidential business
                                               AGENCY: Environmental Protection
                                                                                                          Pursuant to section 3506(c)(2)(A) of               information is requested.
                                               Agency (EPA).
                                               ACTION: Notice.                                         the PRA, EPA is soliciting comments                      Form Numbers: None.
                                                                                                       and information to enable it to: (i)                     Respondents/Affected Entities:
                                               SUMMARY:   The Environmental Protection                 Evaluate whether the proposed                         Entities potentially affected by this
                                               Agency is planning to submit an                         collection of information is necessary                action are Administrators of Public
                                               information collection request (ICR),                   for the proper performance of the                     Health and Environmental Quality
                                               National Fish Program (formerly                         functions of the Agency, including
                                               referred to as the National Listing of                                                                        Programs in state and tribal
                                                                                                       whether the information will have                     governments (NAICS 92312/SIC 9431
                                               Fish Advisories), (EPA ICR Number                       practical utility; (ii) evaluate the
                                               1959.06, OMB Control Number 2040–                                                                             and NAICS 92411/SIC 9511).
                                                                                                       accuracy of the Agency’s estimate of the
                                               0226) to the Office of Management and                   burden of the proposed collection of                     Respondent’s Obligation To Respond:
                                               Budget (OMB) for review and approval                    information, including the validity of                Voluntary (Clean Water Act, Section
                                               in accordance with the Paperwork                        the methodology and assumptions used;                 104).
                                               Reduction Act. Before doing so, EPA is                  (iii) enhance the quality, utility, and                  Estimated Number of Respondents:
                                               soliciting public comments on specific                  clarity of the information to be                      Up to 100.
                                               aspects of the proposed information                     collected; and (iv) minimize the burden
                                               collection as described below. This is a                of the collection of information on those                Frequency of Response: Annual.
                                               proposed extension of the ICR, which is                 who are to respond, including through                    Total Estimated Burden: 2,468 labor
                                               currently approved through July 31,                     the use of appropriate automated                      hours (per year). Burden is defined at 5
                                               2018. An Agency may not conduct or                      electronic, mechanical, or other                      CFR 1320.03(b).
                                               sponsor and a person is not required to                 technological collection techniques or
                                               respond to a collection of information                                                                           Total Estimated Cost: $108,950.72
                                                                                                       other forms of information technology,                (per year), includes no capital or startup
                                               unless it displays a currently valid OMB                e.g., permitting electronic submission of
                                               control number.                                                                                               costs and annualized operation &
                                                                                                       responses. EPA will consider the                      maintenance costs.
                                               DATES: Comments must be submitted on                    comments received and amend the ICR
                                               or before April 23, 2018.                               as appropriate. The final ICR package                    Changes in Estimates: There is a 31
                                               ADDRESSES: Submit your comments,                        will then be submitted to OMB for                     percent increase to the respondent
                                               referencing Docket ID No. EPA–HQ–                       review and approval. At that time, EPA                burden from the currently approved
                                               OW–2014–0350, online using                              will issue another Federal Register                   ICR. The increase is due to revised
                                               www.regulations.gov (our preferred                      notice to announce the submission of                  hourly burden estimates based on input
                                               method), by email to OW-Docket@                         the ICR to OMB and the opportunity to                 from three states; and the addition to
                                               epa.gov, or by mail to: EPA Docket                      submit additional comments to OMB.                    two new activities to increase
                                               Center, Environmental Protection                           Abstract: There is a continuing need               communication, engagement,
                                               Agency, Mail Code 28221T, 1200                          to maintain the overall quality and                   information sharing and support
                                               Pennsylvania Ave. NW, Washington, DC                    availability of public information                    between EPA and the states, territories
                                               20460.                                                  concerning fish advisories. Primary                   and tribes.
                                                 EPA’s policy is that all comments                     responsibility for these activities lies
                                               received will be included in the public                                                                         Dated: January 23, 2018.
                                                                                                       with state and tribes. In 1993, EPA
                                               docket without change including any                     began compiling information on fish                   Deborah G. Nagle,
                                               personal information provided, unless                   advisories provided by the states in its              Acting Director, Office of Science and
daltland on DSKBBV9HB2PROD with NOTICES




                                               the comment includes profanity, threats,                biannual 305(b) Water Quality Inventory               Technology.
                                               information claimed to be Confidential                  Reports. In 1994, EPA’s Office of Water               [FR Doc. 2018–03676 Filed 2–21–18; 8:45 am]
                                               Business Information (CBI) or other                     began conducting a voluntary annual                   BILLING CODE 6560–50–P
                                               information whose disclosure is                         Fish Program Survey to obtain the most
                                               restricted by statute.                                  up-to-date information on fish
                                               FOR FURTHER INFORMATION CONTACT: CDR                    advisories. This information is collected
                                               Samantha Fontenelle, Office of Science                  under the authority of section 104 of the


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Document Created: 2018-02-22 02:51:09
Document Modified: 2018-02-22 02:51:09
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice of proposed action on petition.
DatesComments. Comments must be received on or before March 26, 2018. Public Hearing. The EPA is holding a public hearing on the EPA's response to the June 1, 2016, CAA section 126(b) petition from Connecticut on Friday, February 23, 2018. Additional information for this public hearing is available in a separate Federal Register notice published on February 14, 2018 (83 FR 6490).
ContactQuestions concerning this proposed notice should be directed to Mr. Lev Gabrilovich, U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, Air Quality Policy Division, Mail Code C539-01, Research Triangle Park, NC 27711, telephone (919) 541-1496; email at [email protected]
FR Citation83 FR 7710 
RIN Number2060-AT35

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