----------------------------------------------------------------------------------------------------------------
                                                                                3% discount
     Regulatory alternative            Year         5% discount     3% discount    2.5% discount    rate (95th
                                                       rate            rate            rate         percentile)
----------------------------------------------------------------------------------------------------------------
Final...........................            2021               0               1               1               2
                                            2022              46             143             206             434
                                            2023              94             290             417             882
                                            2024             102             311             444             946
                                            2025             109             331             473           1,011
                                            2030             128             373             525           1,146
                                            2035              98             273             380             838
                                            2040             127             340             467           1,043
More-Stringent Alternative......            2021               1               2               3               7
                                            2022              76             237             341             720
                                            2023             156             480             689           1,460
                                            2024             204             623             892           1,898
                                            2025             254             771           1,100           2,350
                                            2030             323             939           1,322           2,885
                                            2035             316             878           1,222           2,698
                                            2040             383           1,025           1,410           3,146
Less-Stringent Alternative......            2021               0               1               1               3
                                            2022              39             122             176             371
                                            2023              80             248             356             754
                                            2024              81             248             355             755
                                            2025              82             248             353             755
                                            2030              93             271             381             831
                                            2035              73             203             282             623
                                            2040              91             242             333             743
----------------------------------------------------------------------------------------------------------------
Note: We emphasize the importance and value of considering the benefits calculated using all four SC-CO2
  estimates. As discussed in Chapter 5 of the RIA and in the Technical Support Document: Social Cost of Carbon,
  Methane, and Nitrous Oxide Interim Estimates under Executive Order 13990 (IWG 2021), a consideration of
  climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts.

    In Table VIII.6, EPA presents a summary of the benefits, costs, and
net benefits of this final action and the more and less stringent
alternatives for 2021. Table VIII.7 presents a summary of these impacts
for this final action and the more and less stringent alternatives for
2025. Table VIII.8 presents a summary of these impacts for this final
action and the more and less stringent alternatives for 2030.
Discussion of the non-monetized health and welfare benefits from these
pollutants is found in Chapter 5 of the RIA.

 Table VIII.6--Benefits, Costs, and Net Benefits of the Final and More and Less Stringent Alternatives for 2021
                                                  for the U.S.
                                         [Millions of 2016$] \a\ \b\ \c\
----------------------------------------------------------------------------------------------------------------
                                                                More stringent              Less stringent
                                      Final rule                  alternative                 alternative
----------------------------------------------------------------------------------------------------------------
Health Benefits (3%)........  $230 and $1,900...........  $260 and $1,900...........  $20 and $190.
Climate Benefits (3%).......  $1........................  $2........................  $1.
Total Benefits..............  $230 and $1,900...........  $260 and $1,900...........  $20 and $190.
Costs.......................  $5........................  $5........................  $2
                             -----------------------------------------------------------------------------------
Net Benefits................  $230 and $1,900...........  $260 and $1,900...........  $20 and $190.
----------------------------------------------------------------------------------------------------------------
Health Benefits (7%)........  $200 and $1,700...........  $200 and $1,700...........  $20 and $170.
Climate Benefits (3%).......  $1........................  $2........................  $1.
Total Benefits..............  $200 and $1,700...........  $200 and $1,700...........  $20 and $170.
Costs.......................  $5........................  $5........................  $2.
                             -----------------------------------------------------------------------------------

Net Benefits................  $200 and $1,700...........  $200 and $1,700...........  $20 and $170.
----------------------------------------------------------------------------------------------------------------
\a\ We focus results to provide a snapshot of costs and benefits in 2021, using the best available information
  to approximate social costs and social benefits recognizing uncertainties and limitations in those estimates.
  The two benefits estimates are separated by the word ``and'' to signify that they are two separate estimates.
  The estimates do not represent lower- and upper-bound estimates and should not be summed.
\b\ Benefits include those related to public health and climate. The health benefits are associated with several
  point estimates and are presented at real discount rates of 3 and 7 percent. Climate benefits are based on
  changes (reductions) in CO2 emissions and are calculated using four different estimates of the social cost of
  carbon (SC-CO2) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3
  percent discount rate). For the presentational purposes of this table, we show the benefits associated with
  the average SC-CO2 at a 3 percent discount rate, but the Agency does not have a single central SC-CO2 point
  estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-CO2
  estimates; the additional benefit estimates range from $0.24 million to $2.31 million in 2021 for the
  finalized option and are presented above in Table VIII.5. As discussed in Chapter 5, a consideration of
  climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts. The costs presented in this table are 2021 annual
  estimates for each alternative analyzed.
\c\ Rows may not appear to add correctly due to rounding.

 Table VIII.7--Benefits, Costs, and Net Benefits of the Final and More and Less Stringent Alternatives for 2025
                                                  for the U.S.
                                         [Millions of 2016$] \a\ \b\ \c\
----------------------------------------------------------------------------------------------------------------
                                                                More stringent              Less stringent
                                      Final Rule                  alternative                 alternative
----------------------------------------------------------------------------------------------------------------
Health Benefits (3%)........  $320 and $2,400...........  $540 and $4,200...........  $20 and $200.
Climate Benefits (3%).......  $330......................  $770......................  $250.
Total Benefits..............  $650 and $2,700...........  $1,300 and $5,000.........  $270 and $450.
                             -----------------------------------------------------------------------------------
Costs.......................  $2........................  $4........................  -$15.
----------------------------------------------------------------------------------------------------------------
Net Benefits................  $650 and $2,700...........  $1,300 and $5,000.........  $280 and $460.
Health Benefits (7%)........  $290 and $2,200...........  $490 and $3,800...........  $20 and $170.
Climate Benefits (3%).......  $330......................  $770......................  $250.
Total Benefits..............  $620 and $2,500...........  $1,300 and $4,600.........  $270 and $420.
                             -----------------------------------------------------------------------------------
Costs.......................  $2........................  $4........................  -$15.
                             -----------------------------------------------------------------------------------
Net Benefits................  $620 and $2,500...........  $1,300 and $4,500.........  $280 and $430.
----------------------------------------------------------------------------------------------------------------
\a\ We focus results to provide a snapshot of costs and benefits in 2025, using the best available information
  to approximate social costs and social benefits recognizing uncertainties and limitations in those estimates.
  The two benefits estimates are separated by the word ``and'' to signify that they are two separate estimates.
  The estimates do not represent lower- and upper-bound estimates and should not be summed.
\b\ Benefits include those related to public health and climate. The health benefits are associated with several
  point estimates and are presented at real discount rates of 3 and 7 percent. Climate benefits are based on
  changes (reductions) in CO2 emissions and are calculated using four different estimates of the social cost of
  carbon (SC-CO2) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3
  percent discount rate). For the presentational purposes of this table, we show the benefits associated with
  the average SC-CO2 at a 3 percent discount rate, but the Agency does not have a single central SC-CO2 point
  estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-CO2
  estimates; the additional benefit estimates range from $109 million to $1,011 million in 2025 for the
  finalized option and are presented above in Table VIII.5. As discussed in Chapter 5, a consideration of
  climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts. The costs presented in this table are 2025 annual
  estimates for each alternative analyzed.
\c\ Rows may not appear to add correctly due to rounding.

 Table VIII.8--Benefits, Costs, and Net Benefits of the Final and More and Less Stringent Alternatives for 2030
                                                  for the U.S.
                                         [Millions of 2016$] \a\ \b\ \c\
----------------------------------------------------------------------------------------------------------------
                                                                   More stringent            Less stringent
                                           Final rule                alternative               alternative
----------------------------------------------------------------------------------------------------------------
Health Benefits (3%).............  $340 and $2,600..........  $590 and $4,600.........  $30 and $210.
Climate Benefits (3%)............  $370.....................  $940....................  $270.
Total Benefits...................  $710 and $3,000..........  $1,500 and $5,500.......  $300 and $480.
Costs............................  $64......................  $32.....................  $67.
                                  ------------------------------------------------------------------------------
Net Benefits.....................  $650 and $2,900..........  $1,500 and $5,500.......  $230 and $410.
----------------------------------------------------------------------------------------------------------------
Health Benefits (7%).............  $330 and $2,500..........  $560 and $3,900.........  $20 and $180.
Climate Benefits (3%)............  $370.....................  $940....................  $270.
Total Benefits...................  $700 and $2,900..........  $1500 and $4,800........  $290 and $450.

Costs............................  $64......................  $32.....................  $67.
                                  ------------------------------------------------------------------------------
Net Benefits.....................  $640 and $2,800..........  $1,500 and $4,800.......  $220 and $380.
----------------------------------------------------------------------------------------------------------------
\a\ We focus results to provide a snapshot of costs and benefits in 2030, using the best available information
  to approximate social costs and social benefits recognizing uncertainties and limitations in those estimates.
  The two benefits estimates are separated by the word ``and'' to signify that they are two separate estimates.
  The estimates do not represent lower- and upper-bound estimates and should not be summed.
\b\ Benefits include those related to public health and climate. The health benefits are associated with several
  point estimates and are presented at real discount rates of 3 and 7 percent. Climate benefits are based on
  changes (reductions) in CO2 emissions and are calculated using four different estimates of the social cost of
  carbon (SC-CO2) (model average at 2.5 percent, 3 percent, and 5 percent discount rates; 95th percentile at 3
  percent discount rate). For the presentational purposes of this table, we show the benefits associated with
  the average SC-CO2 at a 3 percent discount rate, but the Agency does not have a single central SC-CO2 point
  estimate. We emphasize the importance and value of considering the benefits calculated using all four SC-CO2
  estimates; the additional benefit estimates range from $128 million to $1,146 million in 2030 for the
  finalized option and are presented above in Table VIII.5. As discussed in Chapter 5, a consideration of
  climate benefits calculated using discount rates below 3 percent, including 2 percent and lower, are also
  warranted when discounting intergenerational impacts. The costs presented in this table are 2030 annual
  estimates for each alternative analyzed.
\c\ Rows may not appear to add correctly due to rounding.

    In addition, Table VIII.9 presents estimates of the present value
(PV) of the benefits and costs and the equivalent annualized value
(EAV), an estimate of the annualized value of the net benefits
consistent with the present value, over the twenty-year period of 2021
to 2040. The estimates of the PV and EAV are calculated using discount
rates of 3 and 7 percent as directed by OMB's Circular A-4 and are
presented in 2016 dollars discounted to 2021.

Table VIII.9--Estimated Health Benefits, Climate Benefits, Compliance Costs, and Net Benefits of the Final Rule,
                                                2021 Through 2040
                                      [Millions 2016$, discounted to 2021]
----------------------------------------------------------------------------------------------------------------
                                                  3% Discount rate                     7% Discount rate
----------------------------------------------------------------------------------------------------------------
Present Value:
    Health Benefits b.................  $4,800 and $37,000.................  $3,200 and $25,000.
    Climate Benefits b................  $4,400.............................  $4,400.
    Compliance Costs c................  $370...............................  $260.
                                       -------------------------------------------------------------------------
    Net Benefits......................  $8,800 and $41,000.................  $7,300 and $29,000.
----------------------------------------------------------------------------------------------------------------
Equivalent Annualized Value:
    Health Benefits...................  $320 and $2,500....................  $300 and $2,400.
    Climate Benefits..................  $290...............................  $290.
    Compliance Costs..................  $25................................  $25.
                                       -------------------------------------------------------------------------
    Net Benefits......................  $590 and $2,800....................  $570 and $2,700.
----------------------------------------------------------------------------------------------------------------
a Numbers may not sum due to independent rounding. The two benefits estimates are separated by the word ``and''
  to signify that they are two separate estimates. The estimates do not represent lower- and upper-bound
  estimates and should not be summed.
b The health benefits are associated with several point estimates and are presented at real discount rates of 3
  and 7 percent. Climate benefits are based on changes (reductions) in CO2 emissions and are calculated using
  four different estimates of the social cost of carbon (SC-CO2) (model average at 2.5 percent, 3 percent, and 5
  percent discount rates; 95th percentile at 3 percent discount rate). For the presentational purposes of this
  table, we show the climate benefits associated with the average SC-CO2 at a 3 percent discount rate, but the
  Agency does not have a single central SC-CO2 point estimate. We emphasize the importance and value of
  considering the benefits calculated using all four SC-CO2 estimates; the additional benefit estimates are
  presented above in Table VIII.5. As discussed in Chapter 5 of the Regulatory Impact Analysis for the Final
  Revised Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS, a consideration of climate benefits
  calculated using discount rates below 3 percent, including 2 percent and lower, are also warranted when
  discounting intergenerational impacts.
c To estimate these annualized costs, EPA uses a conventional and widely accepted approach that applies a
  capital recovery factor (CRF) multiplier to capital investments and adds that to the annual incremental
  operating expenses. Annual costs were calculated using a 4.25% real discount rate consistent with the rate
  used in IPM's objective function for cost-minimization.

    As shown in Table VIII.9, the PV of the health benefits of this
final rule, discounted at a 3-percent discount rate, is estimated to be
about $4,800 million and $37,000 million, with an EAV of about $320
million and $2,500 million. At a 7-percent discount rate, the PV of the
health benefits is estimated to be $3,200 million and $25,000 million,
with an EAV of about $300 million and $2,400 million. The two health
benefits estimates for each discount rate reflect alternative ozone and
PM2.5 mortality risk estimates. The PV of the climate
benefits of this final rule, discounted at a 3-percent rate, is
estimated to be about $4,400 million, with an EAV of about $290
million. The PV of the compliance costs, discounted at a 3-percent
rate, is estimated to be about $370 million, with an EAV of about $25
million. At a 7-percent discount rate, the PV of the compliance costs
is estimated to be about $260 million, with an EAV of about $25
million. See the RIA for additional discussion on costs, benefits, and
impacts.

IX. Summary of Changes to the Regulatory Text for the Federal
Implementation Plans and Trading Programs

    This section describes the amendments to the regulatory text for
the federal implementation plans and the trading program regulations
related to the findings and remedy discussed elsewhere in this
document. The primary amendments to the CFR are revisions to the CSAPR
Update FIP provisions in 40 CFR part 52 and the creation of a new CSAPR
NOX Ozone Season Group 3 Trading Program in 40 CFR part 97,
subpart GGGGG. In addition, amendments are being made to the
regulations for the existing CSAPR NOX Ozone Season Group 2
Trading Program to address the transition of the sources in certain
states from the existing Group 2 trading program to the new Group 3
trading program. The existing regulations for the administrative appeal
procedures in 40 CFR part 78 are also being revised to reflect the
applicability of those procedures to decisions of the EPA Administrator
under the new Group 3 trading program.
    In addition to these primary amendments, certain revisions are
being made to the regulations for the existing CSAPR trading programs
and the Texas SO2 Trading Program for conformity with the
proposed provisions of the new Group 3 trading program, as discussed in
section VII.C.8, and a cross-reference in the NOX SIP Call
regulations at 40 CFR 51.121 to the CSAPR Update FIP provisions is
being updated. This section also describes a small number of minor
additional proposed corrections and clarifications to the existing CFR
text for the CSAPR trading programs, the Texas SO2 Trading
Program, and the appeal procedures. EPA has included documents in the
docket for this final action showing all of the proposed revisions to
part 52, part 78, and subparts AAAAA through FFFFF of part 97 in
redline-strikeout format.

A. Amended CSAPR Update FIP Provisions

    The CSAPR and CSAPR Update FIP provisions related to ozone season
NOX emissions are set forth in Sec.  52.38(b) as well as
sections of part 52 specific to each covered state. Amendments to Sec.
52.38(b)(1) expand the overall set of CSAPR trading programs addressing
ozone season NOX emissions to include the new Group 3
trading program in subpart GGGGG of part 97 in addition to the current
Group 1 and Group 2 trading programs in subparts BBBBB and EEEEE of
part 97, respectively, while amendments to Sec.  52.38(b)(2) identify
the states whose sources are required under the new or amended FIPs to
participate in each of the respective trading programs with regard to
their emissions occurring in particular years. More specifically, for
sources in the states that EPA finds have further good neighbor
obligations with respect to the 2008 ozone NAAQS under this rule, new
Sec.  52.38(b)(2)(iv) ends the requirement to participate in the Group
2 trading program after the 2020 control period and new Sec.
52.38(b)(2)(v) establishes the requirement to participate in the new
Group 3 trading program starting with the 2021 control period.
    The changes in FIP requirements set forth in Sec.  52.38(b)(1) and
(2) are substantively replicated in the state-specific CFR sections for
each of the Group 3 states.\230\ In each such CFR section, the current
provision indicating that sources in the state are required to
participate in the CSAPR NOX Ozone Season Group 2 Trading
Program is revised to end that requirement with respect to emissions
after 2020 and to restore previously removed language indicating that
participation by those sources in the Group 2 trading program was only
a partial remedy for the state's underlying good neighbor
obligation.\231\ A further provision is added in each section
indicating that sources in the state are required to participate in the
CSAPR NOX Ozone Season Group 3 Trading Program with respect
to emissions starting in 2021. These added provisions do not contain
the partial-remedy language, consistent with EPA's determinations in
this rule that participation in the Group 3 trading program by a
state's EGUs constitutes a full remedy for each such state's underlying
good neighbor obligation. No changes are being made to the CFR sections
for the remaining states whose sources currently participate in the
Group 2 trading program. For these states, EPA's findings in this
action are consistent with and therefore affirm the previous removal of
language indicating that participation by the states' sources in the
Group 2 trading program was only a partial remedy for the states'
underlying good neighbor obligations.\232\
---------------------------------------------------------------------------

    \230\ See Sec. Sec.  52.731(b) (Illinois), 52.789(b) (Indiana),
52.940(b) (Kentucky), 52.984(d) (Louisiana), 52.1084(b) (Maryland),
52.1186(e) (Michigan), 52.1584(e) (New Jersey), 52.1684(b) (New
York), 52.1882(b) (Ohio), 52.2040(b) (Pennsylvania), 52.2440(b)
(Virginia), and 52.2540(b) (West Virginia).
    \231\ As discussed elsewhere in this document, EPA is correcting
the approval of Kentucky's SIP revision that previously led to
removal of the partial-remedy language for that state and instead
issuing a disapproval. For the remaining states, the partial-remedy
language was removed in the CSAPR Close-Out, which has been vacated.
    \232\ See Sec. Sec.  52.54(b) (Alabama), 52.184 (Arkansas),
52.840(b) (Iowa), 52.882(b) (Kansas), 52.1284 (Mississippi),
52.1326(b) (Missouri), 52.1930 (Oklahoma), 52.2283(d) (Texas), and
52.2587(e) (Wisconsin).
---------------------------------------------------------------------------

    As under the CSAPR and the CSAPR Update, states subject to the FIPs
under this rule have several options to revise their SIPs to modify or
replace those FIPs while continuing to use the Group 3 trading program
as the mechanism for meeting the states' good neighbor obligations. New
Sec.  52.38(b)(10), (11), and (12) establish options to replace
allowance allocations for the 2022 control period, to adopt an
abbreviated SIP revision for control periods in 2023 or later years,
and to adopt a full SIP revision for control periods in later years,
respectively. The first two options would modify certain provisions of
the trading program as applied to a state's sources but leave the FIP
in place, while the third option would replace the FIP with largely
identical SIP requirements for sources to participate in a state Group
3 trading program integrated with the federal Group 3 trading program.
These options closely replicate the analogous current options in Sec.
52.38(b)(7), (8), and (9) with regard to the Group 2 trading program.
    Like the analogous options under the Group 2 trading program, the
abbreviated and full SIP options under the Group 3 trading program in
new Sec.  52.38(b)(11)(i) and (ii) and (b)(12)(i) and (ii) include
options for a state to expand applicability to include certain non-EGU
boilers and combustion turbines or smaller EGUs in the state that were
previously subject to the NOX Budget Trading Program. As
discussed in section VII.F.3 of this document, in conjunction with an
expansion to include the non-EGUs, the state would be able to also
issue an additional amount of allowances. Revised Sec.
52.38(b)(13)(ii) \233\ clarifies that a SIP revision requiring a
state's sources--EGUs or non-EGUs--to participate in the Group 3
trading program would satisfy the state's obligations to adopt control
measures for such sources under the NOX SIP Call.
---------------------------------------------------------------------------

    \233\ Redesignated from Sec.  52.38(b)(10)(ii). The
corresponding cross-reference in the NOX SIP Call
regulations at Sec.  51.121(r)(2) is being updated to reflect the
redesignation.
---------------------------------------------------------------------------

    The proposed option discussed in section VII.D.4 of this preamble
for a state whose EGUs currently are required to participate the Group
1 or Group 2 trading program to submit a full SIP revision requiring
its sources to instead participate in the Group 3 trading

program is not being finalized. The similar option at existing Sec.
52.38(b)(6) for Georgia to submit a full SIP revision requiring its
sources to participate in the Group 2 trading program is being removed,
along with the provisions governing the associated conversions of Group
1 allowances to Group 2 allowances at existing Sec.  97.526(c)(2) and
(3). Language addressing treatment of the converted Group 2 allowances
under the Group 2 trading program's assurance provisions is removed
from the definition of ``common designated representative's share'' at
Sec.  97.802.
    The principal consequences of EPA's approval of a full SIP revision
under Sec.  52.38(b) are set forth in Sec.  52.38(13) and (14). Revised
Sec.  52.38(b)(13)(i) \234\ provides that--with exceptions indicated in
other provisions of Sec.  52.38(b)--full and unconditional approval of
a state's full SIP revision under new Sec.  52.38(b)(13) as correcting
the SIP's deficiency that was the basis for a given FIP would cause the
automatic withdrawal of the corresponding FIP requirements with regard
to the sources in the state (except sources in Indian country with the
borders of the state). New Sec.  52.38(b)(14)(i), which addresses the
Group 1 and Group 2 trading programs rather than the Group 3 trading
program, identifies specific amended provisions of the federal Group 1
and Group 2 trading programs that will continue to apply to sources in
a state Group 1 or Group 2 trading program implemented under a SIP
provision in order to provide programmatic consistency across sources
participating in the federal trading program and sources participating
in integrated state trading programs. Revised Sec.
52.38(b)(14)(ii),\235\ which addresses the Group 3 trading program as
well as the Group 1 and Group 2 trading programs, preserves EPA's
ability to complete allowance allocations for any control period where
such allocations were already underway when the SIP revision was
approved. Provisions indicating these consequences of approval of a
full SIP revision are also being added to the state-specific CFR
sections.
---------------------------------------------------------------------------

    \234\ Redesignated from Sec.  52.38(b)(10)(i).
    \235\ Redesignated from Sec.  52.38(b)(11)(i).
---------------------------------------------------------------------------

    The transition between the Group 2 trading program and the Group 3
trading program, as well as the transition between the Group 1 trading
program and the Group 2 trading program or Group 3 trading program, is
addressed in Sec.  52.38(b)(14)(iii), which identifies several
allowance-related provisions of the federal trading program regulations
that continue to apply when the sources in a state transition to a
different federal trading program (and also continue to apply under an
integrated state trading program). New Sec.  52.38(b)(14)(iii)(A) and
revised Sec.  52.38(b)(14)(iii)(B),\236\ respectively, preserve EPA's
authority under new Sec.  97.526(c) to transfer Group 1 allowances
among accounts under common control and EPA's authority under revised
Sec.  97.526(d) \237\ to carry out conversions of Group 1 allowances to
Group 3 allowances in all compliance accounts (as well as all general
accounts) following the transition of a state's sources from the Group
2 trading program to the Group 3 trading program or following any SIP
revision, adding to the regulations' existing coverage with respect to
conversions of Group 1 allowances to Group 2 allowances. New Sec.
52.38(b)(14)(iii)(C) and (D), respectively, preserve EPA's analogous
authority under new Sec.  97.826(c) and (d) with respect to transfers
of Group 3 allowances among accounts and conversions of Group 2
allowances to Group 3 allowances in analogous circumstances. New Sec.
52.38(b)(14)(iii)(E) similarly preserves EPA's authority under new
Sec.  97.811(d), concerning the recall of Group 2 allowances allocated
to sources in Group 3 states for control periods after 2020. For
clarity, revisions to the state-specific CFR sections substantively
replicate the provisions of Sec.  52.38(b)(14)(iii) indicating that the
provisions of Sec. Sec.  97.826(c) and (d) and 97.811(d) continue to
apply following the transition of a state's sources from one trading
program to another and following approval of any SIP revision under
Sec.  52.38(b).
---------------------------------------------------------------------------

    \236\ Redesignated from Sec.  52.38(b)(11)(ii).
    \237\ Redesignated from Sec.  97.526(c).
---------------------------------------------------------------------------

    New Sec.  52.38(b)(16)(ii) provides that, after the control period
in 2020, EPA will stop administering all Group 2 trading program
provisions established under SIP revisions previously approved for
Group 2 states whose sources are required to participate in the Group 3
trading program starting with the 2021 control period.\238\
---------------------------------------------------------------------------

    \238\ The states with approved SIP revisions that are affected
under this provision are Indiana and New York.
---------------------------------------------------------------------------

    Finally, new Sec.  52.38(b)(17) contains updatable lists of states
with approved SIP revisions to modify or replace the FIP requirements
for the Group 3 trading program, supplementing the analogous lists at
Sec.  52.38(b)(15) and (b)(16)(i) \239\ for the Group 1 and Group 2
trading programs.
---------------------------------------------------------------------------

    \239\ Redesignated from Sec.  52.38(b)(12) and (13).
---------------------------------------------------------------------------

B. New CSAPR NOX Ozone Season Group 3 Trading Program Provisions

    The Group 3 trading program regulations are being promulgated in a
new subpart GGGGG of part 97 (40 CFR 97.1001 through 97.1035).
Definitions, applicability, standard requirements, and other general
provisions are set forth in Sec. Sec.  97.1001 through 97.1008. State
budgets and allocations of allowances to individual units are addressed
in Sec. Sec.  97.1010 through 97.1012, and provisions concerning
designated representatives are covered in Sec. Sec.  97.1013 through
97.1018. Management and use of allowances, including accounts,
recordation, transfers, compliance, and banking, are addressed in
Sec. Sec.  97.1020 through 97.1028. Provisions for monitoring,
recordkeeping, and reporting are set forth in Sec. Sec.  97.1030
through 97.1035.
    In general, the Group 3 trading program provisions parallel the
existing Group 2 trading program regulations in subpart EEEEE of part
97 but reflect the amounts of the budgets, new unit set-asides, Indian
country new unit set-asides, and variability limits established in this
proposed rulemaking, all of which are set forth in new Sec.  97.1010.
    Under Sec.  97.1006(c)(3)(i) and (ii), the obligations to hold one
Group 3 allowance for each ton of emissions during the control period
and to comply with the Group 3 trading program's assurance provisions
begins with the 2021 control period, four years later than the
analogous start dates for the Group 2 trading program. The deadlines
for certifying monitoring systems under Sec.  97.1030(b) and for
beginning quarterly reporting under Sec.  97.1034(d)(1) similarly are
four years later than the analogous Group 2 trading program deadlines.
The allowance recordation deadlines under Sec.  97.1021 begin generally
four years later than the comparable recordation deadlines under the
Group 2 trading program but will reach the same schedule by July 1,
2023, which is the deadline for recordation of allowances for the
control period in 2026 under both trading programs. However, under new
Sec.  97.1021(m), EPA will not record any allocations of Group 3
allowances to any unit at a source until all deductions of Group 2
allowances previously allocated to the units at the source for control
periods after 2020 have been completed in accordance with new Sec.
97.811(d).
    Like the analogous Group 2 regulations, the Group 3 regulations
allow a Group 3 allowance that was allocated to any account as a
replacement for deducted Group 1 or Group 2 allowances to be used for
all of

the purposes for which any other Group 3 allowance may be used. This is
accomplished by adding references to Sec. Sec.  97.526(d) \240\ and
97.826(d)--the sections under which the conversions are carried out--to
the definitions of ``allocate'' and ``CSAPR NOX Ozone Season
Group 3 allowance'' in Sec.  97.1002 as well as the default order for
deducting allowances for compliance purposes under Sec.  97.1024(c)(2).
---------------------------------------------------------------------------

    \240\ Redesignated from Sec.  97.526(c).
---------------------------------------------------------------------------

    As is currently allowed under the Group 2 trading program, in order
to facilitate NOX SIP Call compliance, a state is allowed to
expand applicability of the Group 3 trading program to include any
sources that previously participated in the NOX Budget
Trading Program, and the state can also issue an amount of allowances
beyond the state's Group 3 trading program budget if applicability is
expanded to include large non-EGU boilers and turbines. Again, like the
Group 2 trading program, the assurance provisions apply only to
emissions from the sources subject to the Group 3 trading program
before any such expansion. Accordingly, the assurance provisions in the
proposed Group 3 trading program regulations exclude any additional
units and allowances brought into the program through such a SIP
revision. Specifically, the definitions of ``base CSAPR NOX
Ozone Season Group 3 unit'' and ``base CSAPR NOX Ozone
Season Group 3 source'' in Sec.  97.1002 exclude units and sources that
would not have been included in the program under Sec.  97.1004, and
all provisions related to the Group 3 assurance provisions reference
only such ``base'' units and sources.
    Sections 97.1016, 97.1018, and 97.1020(c)(1) and (5) reduce the
administrative compliance burden for sources in the transition from the
Group 2 trading program to the Group 3 trading program by providing
that certain one-time or periodic submissions made for purposes of
compliance with the Group 1 or Group 2 trading program will be
considered valid for purposes of the Group 3 trading program as well.
The submissions treated in this manner are a certificate of
representation or notice of delegation submitted by a designated
representative and an application for a general account or notice of
delegation submitted by an authorized account representative.
    Finally, in conjunction with promulgation of the new Group 3
trading program, EPA is amending the administrative appeal provisions
in part 78 to make the procedures of that part applicable to
determinations of the EPA Administrator under the new Group 3 trading
program in the same manner as the procedures are applicable to similar
determinations under the other CSAPR trading programs and previous EPA
trading programs. These amendments add provisions for the Group 3
trading program to: The list in Sec.  78.1(a)(1) of CFR sections (and
analogous SIP revisions) generally giving rise to determinations
subject to the part 78 procedures; the list in Sec.  78.1(b) of certain
determinations that are expressly subject to those procedures; the list
in Sec.  78.3(a) of the types of persons who may seek review under the
procedures; the list in Sec.  78.3(b) of persons who must be served
regarding an appeal; the list in Sec.  78.3(c) of the required contents
of petitions for review; the list in Sec.  78.3(d) of matters for which
a right of review under part 78 is not provided; and the requirements
in Sec.  78.4(a)(1) as to who must sign a filing.

C. Transitional Provisions

    As discussed in section VII.C.4., EPA is establishing four sets of
transitional provisions to address the transition of sources that
currently participate in the CSAPR NOX Ozone Season Group 2
Trading Program but that, starting with the 2021 control period, will
instead participate in the CSAPR NOX Ozone Season Group 3
Trading Program.
    The first set of transitional provisions addresses the practical
issues associated with transitioning to a new trading program for the
2021 ozone season given that the effective date for the final action in
this rulemaking will fall after the start of the ozone season on May 1,
2021. In order to avoid application of the more stringent emission
reduction requirements proposed in this action retroactively before the
final rule's effective date, this set of provisions makes supplemental
allocations of Group 3 allowances to Group 3 sources in amounts
collectively equal to the differences in the respective states' budgets
under the Group 2 and Group 3 trading programs for the portion of the
2021 ozone season occurring before that date. The total amounts of
supplemental allowances for each state will be determined under new
Sec.  97.1010(d). The amount of the allocation to each Group 3 unit
will be the incremental amount that each unit would have received if
the supplemental allowances had been allocated as part of the
respective state's emissions budget for 2021, using the same allocation
methodology EPA applies to compute the allocations to existing units
from the emissions budget, as set forth in new Sec.  97.1011(a)(3). In
addition, to avoid retroactive application of the more stringent Group
3 assurance levels associated with the more stringent Group 3 budgets
before the final rule's effective date, the assurance levels for each
Group 3 state for the 2021 control period are increased by the product
of 1.21 times the total amount of the supplemental allocations to the
units in that state. The language implementing this provision is
included in new Sec.  97.1006(c)(2)(iii). New paragraph (2)(ii) of the
definition of ``common designated representative's assurance level'' in
Sec.  97.1002 includes language that accounts for the allocations of
supplemental allowances and the increment to the variability limit when
apportioning responsibility for any exceedance of a state's assurance
level among the owners and operators of the state's sources.
    The second and third sets of transitional provisions under this
final rule address conversions of Group 2 allowances (and in some
instances Group 1 allowances) to Group 3 allowances for use in the new
Group 3 trading program. These provisions are implemented largely
through the addition of new Sec.  97.826(d) to the Group 2 trading
program regulations and revisions to the analogous conversion
provisions in the Group 1 trading program regulations. Most notably,
the one-time conversion of some banked 2017-2020 Group 2 allowances to
an initial bank of Group 3 allowances is implemented through the
provisions in new Sec.  97.826(d)(1). These provisions set forth the
schedule and mechanics for a one-time conversion of Group 2 allowances
that were allocated for the control periods in 2017 through 2020 and
that that remain banked following the completion of deductions for
compliance for the 2020 control period. The conversion will be applied
to all banked Group 2 allowances that as of the scheduled conversion
date are held in any compliance account for a source located in a Group
3 state and, if necessary, to allowances held in general accounts, but
will not be applied to allowances held in a compliance account for a
source located in a Group 2 state.
    The provisions setting forth the procedures for conversion of
additional 2017-2020 Group 2 allowances to Group 3 allowances as a
safety valve mechanism are in Sec.  97.826(d)(2). Also, there is a
possibility under the Group 2 trading program that some new Group 2
allowances may be issued to a Group 3 source after the conversions to
Group 3 allowances have already taken place. Under Sec.  97.826(d)(3),
EPA may convert these allowances to Group 3 allowances as if they had
been issued and recorded

before the general conversion to create an initial Group 3 bank.
    Owners and operators of Group 3 sources generally may not retain
banked Group 2 allowances in the compliance accounts for those sources
after the date when the various transitional provisions have been
carried out. If any such Group 2 allowances allocated for a control
period before 2021 remain in the compliance account for a Group 3
source after April 1, 2022, new Sec.  97.826(c) allows EPA to identify
or, if necessary, establish a general account controlled by the
source's owners and operators and to relocate the Group 3 allowances to
that account. If obligations to hold Group 2 allowances arise later,
such as an obligation to hold additional allowances because of excess
emissions, new Sec.  97.826(e) authorizes the use of Group 3 allowances
to satisfy such obligations. When held for this purpose, a single Group
3 allowance could satisfy the obligation to hold more than one Group 2
allowance, as though the conversion were reversed. (As an alternative
to using these provisions, the owners and operators of a Group 3 source
could use Group 2 allowances held in a general account.)
    Parallel amendments are being made to the provisions addressing
conversions of Group 1 allowances to Group 2 allowances in Sec.
97.526. Specifically, amendments to Sec.  97.526(d)(1)(iv) \241\ allow
EPA to identify or, if necessary, establish a general account
controlled by the source's owners and operators and to relocate to that
new account any unclaimed Group 2 allowances resulting from the
creation of an initial bank of Group 2 allowances during the first
control period under the Group 2 trading program. In addition, there is
a possibility under the Group 1 trading program that some new Group 1
allowances may be issued to a Group 3 source after the conversions of
Group 1 to Group 2 allowances and then Group 2 to Group 3 allowances
have already taken place. Under new Sec.  97.526(d)(2)(ii), EPA may
convert these Group 1 allowances to Group 3 allowances as if they had
been issued and recorded before the general conversions. New Sec.
97.526(e)(2) authorizes the use of Group 3 allowances to satisfy
obligations to hold Group 1 allowances that may arise later, such as an
obligation to hold additional allowances because of excess emissions.
---------------------------------------------------------------------------

    \241\ Redesignated from Sec.  97.526(c)(4).
---------------------------------------------------------------------------

    The fourth set of transitional provisions under this final rule,
which address the recall of Group 2 allowances previously allocated for
control periods after 2020 to Group 3 sources, is implemented at new
Sec.  97.811(d). The scope of the allowance surrender requirements and
assignment of responsibility for compliance are addressed in Sec.
97.811(d)(1) and (2). The procedures EPA will follow to deduct
allowances from sources' compliance accounts (or in exceptional
circumstances, from general accounts) are set forth in Sec.
97.811(d)(3) and (4). Clean Air Act violations for noncompliance with
the surrender requirements are addressed at Sec.  97.811(d)(5).
Provisions addressing recordation and notifications are included at
Sec.  97.811(d)(6) and (7).
    Finally, in Sec.  78.1(b)(14) and (17), determinations of the EPA
Administrator under Sec. Sec.  97.526(d) and 97.826(d) regarding
conversions of Group 1 and Group 2 allowances to Group 3 allowances and
determinations of the EPA Administrator under Sec.  97.811(d) regarding
the recall of Group 2 allowances previously allocated to Group 3 units
for control periods after 2020 are added to the list of determinations
expressly subject to the part 78 procedures.

D. Conforming Revisions, Corrections, and Clarifications to Existing
Regulations

    As discussed in section VII.C.8, EPA is finalizing several
amendments to the existing CSAPR trading programs and the Texas
SO2 Trading Program for conformity with the analogous
provisions of the new Group 3 trading program.
    The amendments providing for EPA to record allocations to existing
units three instead of four years in advance of the control period at
issue, starting with allocations for the 2025 control periods, are
implemented in the existing CSAPR trading programs through revisions to
Sec. Sec.  97.421(f), 97.521(f), 97.621(f), 97.721(f), and 97.821(f).
    The amendments switching from a two-round process to a one-round
process for allocating allowances from new unit set-asides and Indian
country new unit set-asides starting with the 2021 control periods are
implemented in the existing CSAPR trading programs through revisions to
Sec. Sec.  97.411(b), 97.511(b), 97.611(b), 97.711(b), and 97.811(b)
and 97.412, 97.512, 97.612, 97.712, and 97.812. The changes to the
deadlines for EPA to record the allocations determined through the
proposed one-round process are implemented through revisions to
Sec. Sec.  97.421(g) through (j), 97.521(g) through (j), 97.621(g)
through (j), 97.721(g) through (j), and 97.821(g) through (j). The
necessary coordinating revisions to dates included in the definitions
of ``allowance transfer deadline'' and ``common designated
representative'' are made in Sec. Sec.  97.402, 97.502, 97.602, 97.702,
and 97.802. The simplifications of the assurance provisions made
possible by the changes in the new unit set-aside provisions are
implemented through revisions to Sec. Sec.  97.425(b), 97.525(b),
97.625(b), 97.725(b), and 97.825(b) as well as simplification of
related definitions (``common designated representative's assurance
level'') and removal of disused definitions (``allowable NOX
emission rate'', ``allowable SO2 emission rate'', ``coal-
derived fuel'', and ``heat rate'') in Sec. Sec.  97.402, 97.502,
97.602, 97.702, and 97.802. The related extensions to the deadlines for
states with approved SIP revisions to submit to EPA any state-
determined allowance allocations are implemented through revisions to
Sec.  52.38(a)(4) and (5) and (b)(4), (5), (8) and (9) and Sec.
52.39(e), (f), (h), and (i).
    As discussed in section VII.C.8., EPA is replicating several of the
deadline revisions proposed for the existing CSAPR trading programs in
the similarly structured Texas SO2 Trading Program in order
to minimize unnecessary differences between the regulations for the
programs. These revisions to the Texas SO2 Trading Program
regulations are implemented at Sec.  97.902 (definitions of ``allowance
transfer deadline'' and ``common designated representative''),
97.921(b) and (c), and 97.925(b).
    The amendments authorizing EPA to reallocate any incorrectly
allocated allowances through the new unit set-aside procedures for a
control period after the correction is identified, instead of the new
unit set-aside procedures for the control period for which the
incorrect allocations were originally made, are implemented in
Sec. Sec.  97.411(c)(5), 97.511(c)(5), 97.611(c)(5), 97.711(c)(5), and
97.811(c)(5).
    The amendments correcting the amounts of allowances in the new unit
set-asides to address rounding differences from earlier amendments and
removing the amounts of budgets, new unit set-asides, and variability
limits that no longer apply or that would have applied only in the
event of an optional SIP revision are implemented in Sec. Sec.  97.410,
97.510, 97.610, 97.710, and 97.810.
    The amendments addressing the transfer of allowances from
compliance accounts to general accounts in instances where the sources
in a state are no longer covered by a particular CSAPR trading program
are

implemented in new Sec. Sec.  97.426(c), 97.526(c), 97.626(c),
97.726(c), and 97.826(c).
    New Sec.  52.38(a)(7)(i) and (b)(14)(i) and Sec.  52.39(k)(1)
identify the amended federal trading program provisions that EPA will
implement in the existing state CSAPR trading programs to ensure
consistent program implementation across all sources, whether the
sources participate in the integrated trading programs under FIPs or
approved SIP revisions.
    EPA is making additional, non-substantive corrections and
clarifications in various provisions of the existing CSAPR trading
programs in subparts AAAAA through EEEEE of part 97, the Texas
SO2 Trading Program in subpart FFFFF of part 97, and the
appeal procedures in part 78. The corrections and clarifications
address minor typographical, wording, and formatting errors or update
existing cross-references to reflect the new and redesignated
provisions in Sec. Sec.  52.38 and 52.39. In the NOX SIP
Call regulations at 40 CFR 51.121, a cross-reference to the CSAPR
Update FIP provisions is being updated. In addition, the proposed
corrections and clarifications include the following items:
     Reorganization of the definitions of ``common designated
representative's assurance level'' and ``common designated
representative's share'' in Sec. Sec.  97.402, 97.502, 97.602, 97.702,
and 97.802. The revisions clarify the definitions by relocating certain
language between them and eliminating provisions that are no longer
necessary because of the revisions to the new unit set-aside allocation
procedures and the assurance provisions.
     Addition of a definition of ``CSAPR NOX Ozone Season Group
3 allowance'' in Sec. Sec.  97.502 and 97.802 and addition of
definitions of ``CSAPR NOX Ozone Season Group 3 Trading Program'' and/
or ``nitrogen oxides'' in Sec. Sec.  97.402, 97.502, 97.602, 97.702,
97.802, and 97.902. The new definitions of terms for the Group 3
allowances and trading program are needed for other provisions that
reference the Group 3 allowances or trading program, while the
definition of nitrogen oxides corrects a current omission. Nitrogen
oxides are defined as ``all oxides of nitrogen except nitrous oxide
(N2O), expressed on an equivalent molecular weight basis as
nitrogen dioxide (NO2)'', which is consistent both with the
definitions used in other EPA programs (see, e.g., 40 CFR 51.50,
51.121(a), and 51.122(a)) and with historical practice in the existing
CSAPR programs.
     Revisions to the descriptions of units and control periods
eligible for allocations of allowances from the new unit set-asides and
Indian country new unit set-asides in Sec. Sec.  97.412, 97.512,
97.612, 97.712, and 97.812. The revisions do not substantively alter
which units may receive allocations or the amounts of those
allocations. Rather, the revisions more clearly express the existing
requirements of the allocation procedures, under which EPA calculates a
given unit's allocations considering only the unit's emissions that
occur after its deadline for monitor certification (because any earlier
emissions would not have occurred in a ``control period'' for that
unit).
     Revisions to the provisions for identification of specific
allowances to be deducted for compliance in Sec. Sec.  97.424(c),
97.524(c), 97.624(c), 97.724(c), 97.824(c), and 97.924(c). The
revisions clarify by referencing designated representatives instead of
authorized account representatives, consistent with the existing
requirement that the authorized account representative for a source's
compliance account must be the designated representative for the
source.
     Addition of references in part 78 to the Texas SO2 Trading
Program. The added references are analogous to the references that are
being added to part 78 for the new Group 3 trading program. The
applicability of the appeal procedures in part 78 to decisions of the
EPA Administrator under the Texas SO2 Trading Program has
already been established in the provisions for that trading program at
Sec.  97.908, but the addition of references in part 78 clarifies the
regulations.

X. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders
(``E.O.'') can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This final action is an economically significant regulatory action
and was submitted to the Office of Management and Budget (OMB) for
review. Any changes made in response to OMB recommendations have been
documented in the docket. EPA prepared an analysis of the potential
costs and benefits associated with this final action. This analysis,
which is contained in the ``Regulatory Impact Analysis for the Final
Revised Cross-State Air Pollution Rule Update for the 2008 Ozone
NAAQS'' [EPA-452-R-21-002], is available in the docket and is briefly
summarized in section VIII of this preamble.

B. Paperwork Reduction Act (PRA)

    This final action will not impose any new information collection
burden under the PRA. This final action relocates certain existing
information collection requirements for certain sources from subpart
EEEEE of 40 CFR part 97 to a new subpart GGGGG of 40 CFR part 97, but
neither changes the inventory of sources subject to information
collection requirements nor changes any existing information collection
requirements for any source. OMB has previously approved the
information collection activities contained in the existing regulations
and has assigned OMB control number 2060-0667.

C. Regulatory Flexibility Act (RFA)

    I certify that this final action will not have a significant
economic impact on a substantial number of small entities under the
RFA. The small entities subject to the requirements of this final
action are small businesses, small organizations, and small
governmental jurisdictions.
    EPA has lessened the impacts for small entities by excluding all
units serving generators with capacities equal to or smaller than 25
MWe. This exclusion, in addition to the exemptions for cogeneration
units and solid waste incineration units, eliminates the burden of
higher costs for a substantial number of small entities located in the
12 states for which EPA is issuing FIPs. Within these states, EPA
identified seven potentially affected EGUs that are owned by two
entities that met the Small Business Administration's criteria for
identifying small entities. Neither of these entities is projected to
experience compliance costs that exceed 1 percent of generation
revenues in 2021. EPA estimated the total net compliance cost to these
two small entities to be approximately $0.04 million (in $2016).
    EPA has concluded that there will be no significant economic impact
on a substantial number of small entities (no SISNOSE) for this final
rule. Details of this analysis are presented in the RIA, which is in
the public docket.

D. Unfunded Mandates Reform Act (UMRA)

    This final action does not contain an unfunded mandate of $100
million or more as described in UMRA, 2 U.S.C. 1531-1538, and will not
significantly or uniquely affect small governments. Note that EPA
expects the final rule to potentially have an impact on only one

category of government-owned entities (municipality-owned entities).
This analysis does not examine potential indirect economic impacts
associated with the final rule, such as employment effects in
industries providing fuel and pollution control equipment, or the
potential effects of electricity price increases on government
entities. For more information on the estimated impact on government
entities, refer to the RIA, which is in the public docket.

E. Executive Order 13132: Federalism

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

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

    This action has tribal implications. However, it will neither
impose substantial direct compliance costs on federally recognized
tribal governments, nor preempt tribal law.
    This final action implements EGU NOX ozone season
emission reductions in 12 eastern states (Illinois, Indiana, Kentucky,
Louisiana, Maryland, Michigan, New Jersey, New York, Ohio,
Pennsylvania, Virginia, and West Virginia.). However, at this time,
none of the existing or planned EGUs affected by this rule are owned by
tribes or located in Indian country. This action may have tribal
implications if a new affected EGU is built in Indian country.
Additionally, tribes have a vested interest in how this rule affects
air quality.
    In developing the CSAPR, which was promulgated on July 6, 2011, to
address interstate transport of ozone pollution under the 1997 ozone
NAAQS, EPA consulted with tribal officials under the EPA Policy on
Consultation and Coordination with Indian Tribes early in the process
of developing that regulation to allow for meaningful and timely tribal
input into its development. A summary of that consultation is provided
at 76 FR 48346.
    In that rulemaking, EPA received comments from several tribal
commenters regarding the availability of the CSAPR allowance
allocations to new units in Indian country. EPA responded to these
comments by instituting Indian country new unit set-asides in the final
CSAPR. In order to protect tribal sovereignty, these set-asides are
managed and distributed by the federal government regardless of whether
the CSAPR in the adjoining or surrounding state is implemented through
a FIP or SIP. While there are no existing affected EGUs in Indian
country covered by this action, the Indian country set-asides will
ensure that any future new units built in Indian country will be able
to obtain the necessary allowances. This rule maintains the Indian
country new unit set-aside and adjusts the amounts of allowances in
each set-aside according to the same methodology of the CSAPR and the
CSAPR Update.
    EPA consulted with tribal officials early in the process of
developing this rule in accordance with the EPA Policy on Consultation
and Coordination with Indian Tribes (May 2011). Before proposing this
rule, EPA informed tribes of the rule's development on a National
Tribal Air Association (NTAA) monthly air policy conference call that
took place on June 25, 2020. In a separate NTAA call on October 20,
2020, EPA gave an overview of the proposed rule. In order to permit
tribes to have meaningful and timely input into the development of the
final rule, EPA offered consultation to tribal leaders. On October 30,
2020, EPA sent out letters via electronic mail to all 574 federally
recognized tribes informing them of this action, offering consultation
and requesting comment on this rulemaking. Courtesy copies of the
letters were also sent via email to tribal air staff and tribal
environmental professionals. EPA also sent courtesy copies to EPA's
Regional Tribal Air Coordinators for notification to their tribes. To
further provide tribes with the resources that they might require to
engage in effective consultation, EPA also held an informational
webinar on the rule on November 9, 2020. EPA did not receive any
requests for consultation on this rule.
    Comment: As part of the public comment process, EPA received
comments from the National Tribal Air Association (NTAA), the Keweenaw
Bay Indian Community, the Leech Lake Band of Ojibwe, and the Ute
Mountain Ute Tribe Environmental Programs Department. Commenters felt
that EPA has not complied with its tribal consultation obligations.
    Response: EPA recognizes the critical importance of engagement with
tribes and believes that it has provided tribes appropriate opportunity
to provide input on this rule through NTAA calls, an informational
webinar, and requests for consultation. EPA will continue to engage
with tribes as part of the outreach strategy for this final rule.

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

    EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order. This action is not subject to
Executive Order 13045 because it implements a previously promulgated
health-based federal standard. This action's health and risk
assessments are contained in Chapter 5 of the accompanying RIA. EPA
believes that the ozone reductions, PM2.5 reductions, and
CO2 reductions from this final rule will further improve
children's health.
    Comment: EPA received comment contending that EPA has failed to
identify and assess the health risks to children from its decision to
authorize continued interstate ozone pollution that contributes to
violations of the 2008 and 2015 ozone air quality standards in downwind
states. The commenter states that EPA has consistently recognized that
children are disproportionately vulnerable to the environmental health
risks of ozone and asserts that by authorizing continued pollution that
will harm children, EPA has failed to ensure that its policies,
programs, activities, and standards address these risks. The commenter
claims that this rule is subject to section 2-202 of the Executive
Order, which provides that ``covered regulatory action'' means ``any
substantive action in a rulemaking'' that is ``likely to result in a
rule that may'' (1) ``adversely affect in a material way . . . the
environment, public health or safety, or State, local, or tribal
governments or communities'' and (2) ``concern an environmental health
risk or safety risk that an agency has reason to believe may
disproportionately affect children.'' The commenter asserts that ozone
pollution above the air quality standards EPA has adopted indisputably
is a health risk that disproportionately affects children.
    Response: According to section 2-202, a rulemaking is a ``covered
regulatory action'' and thus subject to the Executive Order if the
action is economically significant under Executive Order 12866 and
involves an environmental health risk or safety risk that the agency
has reason to believe may disproportionately affect children. While OMB
has determined that this rulemaking is economically significant for
purposes of Executive Order 12866,

the rulemaking does not meet the second criterion. The health-based
standard at issue in this action has already been set in a prior
rulemaking to promulgate the 2008 ozone NAAQS, wherein EPA did consider
the effects of the standard under the Executive Order. See 73 FR 16436,
16506-07. Therefore, this action does not concern an environmental
health or safety risk because EPA is simply evaluating how to implement
an existing health standard.

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

    This action is not a ``significant energy action'' because it is
not likely to have a significant adverse effect on the supply,
distribution, or use of energy. EPA has prepared a Statement of Energy
Effects for the regulatory control alternative as follows. The Agency
estimates a much less than 1 percent change in retail electricity
prices on average across the contiguous U.S. in 2021, and a much less
than 1 percent reduction in coal-fired electricity generation in 2021
as a result of this rule. EPA projects that utility power sector
delivered natural gas prices will change by less than 1 percent in
2021. For more information on the estimated energy effects, refer to
the RIA, which is in the public docket.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

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

    Because of the need to meet the court-ordered signature deadline on
this action, EPA did not have sufficient time to undertake a definitive
assessment of the impacts of this final rule on minority populations,
low-income populations and/or indigenous peoples, as specified in
Executive Order 12898 (59 FR 7629, February 16, 1994). EPA does not
have information at this time that would suggest that this rule has the
potential to result in disproportionately high and adverse human health
or environmental impacts on vulnerable populations or overburdened
communities; however, EPA is also not currently in a position to make a
determination to this effect. In this section, EPA outlines the
potential impacts of this rule and describes the analytical framework
the agency intends to use to evaluate potential environmental justice
concerns in future rulemakings.
    Ozone pollution from power plants has both local and regional
components: Part of the pollution in a given location--even in
locations near emission sources--is due to emissions from nearby
sources and part is due to emissions that are transported in the
atmosphere over large distances and mix with emissions from other
sources. Undertaken to implement CAA section 110(a)(2)(D), this action
addresses that ``significant'' portion of contribution from upwind
states to a nonattainment or maintenance receptor. As a result, the
rule will reduce exposures to ozone in areas that are struggling to
attain or maintain the 2008 ozone NAAQS. By addressing maintenance
receptors, this rule reduces the likelihood that areas close to the
level of the standard will exceed the current health-based standards in
the future. The rule will result in incidental reductions in ozone in
other areas, as well as reducing emissions of PM and other pollutants
from EGUs that have both localized and distant impacts.
    At the same time, this action alone cannot fully resolve any
disproportionate impacts of ozone levels in downwind areas. Rather, it
eliminates upwind state ``significant contribution,'' thus ameliorating
those conditions and improving downwind air quality. While this rule is
expected to reduce interstate ozone transport and thus to yield overall
health and environmental benefits, further analysis would be required
to assess potential environmental justice concerns--including, for
example, whether the downwind air quality benefits are equitably
distributed.\242\
---------------------------------------------------------------------------

    \242\ A potential environmental justice concern is ``the actual
or potential lack of fair treatment or meaningful involvement of
minority populations, low-income populations, tribes, and indigenous
peoples in the development, implementation and enforcement of
environmental laws, regulations and policies.'' EPA, Guidance on
Considering Environmental Justice During the Development of
Regulatory Actions (May 2015).
---------------------------------------------------------------------------

    It is important to note that nothing in this final rule allows
sources to violate their title V permit or any other federal, state, or
local emissions or air quality requirements. Moreover, CAA section
110(a)(2)(D) addresses transport of criteria pollutants between states
and is only one of many provisions of the CAA that provide EPA, states,
and local governments with authorities to reduce exposure to ozone in
communities. These legal authorities work together to reduce exposure
to these pollutants in communities, including for minority, low-income,
and tribal populations, and provide substantial health benefits to both
the general public and sensitive sub-populations.
    EPA informed tribal communities of its development of this rule on
a National Tribal Air Association--EPA air policy conference call on
June 25, 2020. EPA also held two informational webinars for tribes and
environmental justice communities on November 9, 2020 and November 10,
2020, respectively, where EPA presented an overview of the rule and
provided tribes and communities with resources that they might require
to engage in the public comment process.
    While a court-ordered deadline precludes a fulsome environmental
justice analysis for this rulemaking, this section describes a
framework for assessing potential environmental justice concerns for
future rulemakings based on EPA's Technical Guidance for Assessing
Environmental Justice in Regulatory Analysis (2016). Going forward, EPA
is committed to conducting environmental justice analysis for
rulemakings based on a framework similar to what is outlined here, in
addition to investigating ways to further weave environmental justice
into the fabric of the rulemaking process including through enhanced
meaningful engagement with environmental justice communities.\243\
---------------------------------------------------------------------------

    \243\ While not the focus of this discussion, meaningful
involvement intersects with analytic considerations in several
important respects. The use of plain language to explain the
regulatory analysis can make it easier for the public to understand
what was done and submit comments. Requests for information on
unique exposure pathways or end points of concern, as well as data
sources, early in the regulatory process can improve the analysis of
potential EJ concerns. Specific aspects of the regulatory design may
also make it easier to monitor and share information with the public
once the rulemaking is in place.
---------------------------------------------------------------------------

    When assessing the potential for disproportionately high and
adverse health or environmental impacts of regulatory actions on
minority populations, low-income populations, tribes, and/or indigenous
peoples, EPA strives to answer three broad questions: (1) Is there
evidence of potential environmental justice concerns in the baseline
(the state of the world absent the regulatory action)? Assessing the
baseline will allow EPA to determine whether pre-existing disparities
are associated with the pollutant(s) under consideration (e.g., if the
effects of the pollutant(s) are more concentrated in some population
groups). (2) Is there evidence of potential environmental justice
concerns for the regulatory option(s) under consideration?
Specifically, how are the pollutant(s) and its effects distributed for
the regulatory options under consideration?

And, (3) do the regulatory option(s) under consideration exacerbate or
mitigate environmental justice concerns relative to the baseline? \244\
It is not always possible to quantitatively assess all three questions.
For instance, in some regulatory contexts it may only be possible to
quantitatively characterize the baseline due to data and modeling
limitations.
---------------------------------------------------------------------------

    \244\ Differential impacts on population groups of concern can
only be identified in relation to a comparison group. A comparison
group can be defined in multiple ways, for instance in terms of
individuals with similar socioeconomic characteristics located at a
broader geographic level or with different socioeconomic
characteristics within an affected area. The goal is to select a
comparison group that allows one to identify how the effects of the
regulation vary by race, ethnicity, and income separate from other
systematic differences across groups or geographic areas.
---------------------------------------------------------------------------

    A good starting point for assessing the need for a more detailed
environmental justice analysis is to review the available evidence from
the published literature and from community input on what factors may
make population groups of concern more vulnerable to adverse effects
(e.g., unique pathways; cumulative exposure from multiple stressors;
behavioral, biological, or environmental factors that increase
susceptibility). It is also important to evaluate the data and methods
available for conducting an environmental justice analysis. A
screening-level analysis is recommended to help characterize population
groups of concern in the context of a specific rulemaking, as well as
identify potential comparison groups, data, methods and analytical
needs.
    Current EPA guidance does not prescribe or recommend a specific
approach or methodology for conducting screening-level analysis,\245\
though a key consideration is consistency with the assumptions
underlying other parts of the regulatory analysis when evaluating the
baseline and regulatory option(s). Even without a more in-depth
analysis of potential environmental justice concerns, the screening-
level analysis can be useful for describing the proximity of regulated
sources to minority populations, low-income populations, and/or
indigenous peoples; the number of sources that may be impacting
population groups of concern; the nature and amounts of pollutant(s)
that may impact population groups of concern; unique exposure pathways
associated with the regulated pollutant(s); stakeholder concern(s)
about the potential regulatory action; and any history of environmental
justice concerns associated with the pollutant(s) being regulated.
---------------------------------------------------------------------------

    \245\ See EPA, Guidelines for Preparing Economic Analyses (Dec.
2010, rev. May 2014), available at https://www.epa.gov/sites/production/files/2017-08/documents/ee-0568-50.pdf; EPA, Guidance on
Considering Environmental Justice During the Development of
Regulatory Actions (May 2015), available at https://www.epa.gov/sites/production/files/2015-06/documents/considering-ej-in-rulemaking-guide-final.pdf; EPA, Technical Guidance for Assessing
Environmental Justice in Regulatory Analysis (June 2016) available
at https://www.epa.gov/sites/production/files/2016-06/documents/ejtg_5_6_16_v5.1.pdf.
---------------------------------------------------------------------------

    In cases where further investigation of potential environmental
justice concerns is warranted, a variety of techniques are available.
These techniques are briefly described below, and EPA refers the reader
to EPA's Technical Guidance for Assessing Environmental Justice in
Regulatory Analysis (2016) for more detailed discussion of each
approach including their advantages and limitations. The approach taken
to conduct environmental justice analysis is informed by the
quantitative information generated for the risk and benefits analysis
conducted in support of the rulemaking and the analytic opportunities
that provides. Building in consideration of environmental justice at
the early stages of the analysis--for instance, to ensure that unique
exposure pathways are adequately characterized--thus is of paramount
importance. When data allow, it is also informative to characterize the
distribution of risks, exposures, or outcomes within each population
group, not just average impacts, with particular attention paid to the
characteristics of populations at the high end of the distribution.
Qualitative approaches may also prove a useful complement to
quantitative assessment in cases where either data are not available at
a sufficiently disaggregated level to conduct distributional analysis
or when they offer insight into considerations omitted from
quantitative assessment (e.g., how environmental quality interacts with
people's values, behaviors, motivations, or cultures).
    Two of the most straightforward analytic approaches to
environmental justice analysis are summary statistics and visual
displays. Summary statistics can be used to characterize the
distribution of health and environmental impacts (e.g., county- or
census-tract level average) for population groups of concern relative
to an appropriate comparison group (e.g., national or state average).
Visual displays such as maps can communicate how the geographic
distribution of pollution overlaps with that of population groups of
concern and therefore can identify potential areas where additional
outreach, data collection, or monitoring may be warranted.
    More sophisticated analytic approaches may also be possible when
data allow. Proximity-based analysis uses the distance to polluting
source(s) as a proxy for risk or exposure. Specifically, it compares
the demographic and socioeconomic characteristics of population groups
relatively close (e.g., within a certain distance or census tract) to
the source of pollution to those living further away. Simple
statistical tests are then used identify whether, on average, there are
statistically discernible differences between those living close to
versus further away from the polluting sources. The validity of the
proximity-based approach rests on the appropriateness of several
assumptions, such as that the effects of the pollutant(s) occur only
within the designated area and that all individuals residing close by
are equivalently exposed. When data are available, it may also be
possible to conduct risk or exposure analysis to evaluate potential
environmental justice concerns. Emissions or other ambient
concentration data can be combined with fate and transport modeling. In
cases where disaggregated information is available on the types of
activities that result in differences in exposure across population
groups of concern, it may be possible to characterize differences in
health effects due to the regulatory action. It also may be possible to
combine exposure data with information on differences in risk across
population groups.

K. Congressional Review Act

    This action is subject to the CRA, and EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is a ``major rule'' as defined by 5
U.S.C. 804(2), because OMB has determined that this rule is
``economically significant.''

L. Determinations Under CAA Section 307(b)(1) and (d)

    Section 307(b)(1) of the CAA indicates which federal courts of
appeals are the proper forum for petitions for review of final actions
by EPA under the CAA. This section provides, in part, that petitions
for review must be filed in the Court of Appeals for the District of
Columbia Circuit for: (i) ``Any nationally applicable regulations
promulgated, or final action taken, by the Administrator,'' or (ii)
locally or regionally applicable final action if ``such action is based
on a determination of nationwide scope or effect and if in taking such
action the Administrator finds and publishes that such action is based
on such a

determination.'' For locally or regionally applicable final actions,
the CAA reserves to EPA complete discretion whether to invoke the
exception in (ii).
    This final action is ``nationally applicable'' within the meaning
of CAA section 307(b)(1). In the alternative, the Administrator is
exercising the complete discretion afforded to her under the CAA to
make and publish a finding that this action is based on a determination
of ``nationwide scope or effect'' within the meaning of CAA section
307(b)(1).\246\ This final action implements the good neighbor
provision in 21 states, 6 EPA regions, and 6 federal appellate court
circuits. The final action applies a uniform, nationwide analytical
method and interpretation of CAA section 110(a)(2)(D)(i)(I) across
these states in a single final action, and the final action is based on
a common core of legal, technical, and policy determinations.\247\ The
rule is based on a common core of statutory and case law analysis,
factual findings, and policy determinations concerning the transport of
ozone-precursor pollutants from the different states subject to it, as
well as the impacts of those pollutants and the impacts of options to
address those pollutants in yet other states. In particular, in this
action, EPA is applying its 4-step analytic framework to implement the
good neighbor provision across these states, using a consistent set of
policy and analytical determinations. These determinations include
findings identifying downwind nonattainment and maintenance receptors
and upwind states linked to those receptors; the use of a common multi-
factor test to determine which upwind-state contributions to
nonattainment and maintenance receptors are ``significant'' and must be
eliminated; and the promulgation of emissions budgets, an integrated
interstate emissions trading program, and a regionally consistent set
of other compliance requirements for EGUs across twelve states to
implement the necessary emission reductions.
---------------------------------------------------------------------------

    \246\ In deciding whether to invoke the exception by making and
publishing a finding that this final action is based on a
determination of nationwide scope or effect, the Administrator has
also taken into account a number of policy considerations, including
her judgment balancing the benefit of obtaining the D.C. Circuit's
authoritative centralized review versus allowing development of the
issue in other contexts and the best use of agency resources.
    \247\ In the report on the 1977 Amendments that revised section
307(b)(1) of the CAA, Congress noted that the Administrator's
determination that the ``nationwide scope or effect'' exception
applies would be appropriate for any action that has a scope or
effect beyond a single judicial circuit. See H.R. Rep. No. 95-294 at
323, 324, reprinted in 1977 U.S.C.C.A.N. 1402-03.
---------------------------------------------------------------------------

    For these reasons, this final action is nationally applicable.
Alternatively, the Administrator is exercising the complete discretion
afforded to her by the CAA and hereby finds that this final action is
based on a determination of nationwide scope or effect for purposes of
CAA section 307(b)(1). Pursuant to CAA section 307(b), any petitions
for review of this final action must be filed in the D.C. Circuit
within 60 days from the date this final action is published in the
Federal Register.
    This final action is subject to the provisions of section 307(d).
CAA section 307(d)(1)(B) provides that section 307(d) applies to, among
other things, ``the promulgation or revision of an implementation plan
by the Administrator under [CAA section 110(c)].'' 42 U.S.C.
7407(d)(1)(B). This final action promulgates new and revised federal
implementation plans pursuant to the authority of section 110(c). To
the extent any portion of this rulemaking is not expressly identified
under section 307(d)(1)(B), the Administrator has determined that the
provisions of section 307(d) apply to this action. See CAA section
307(d)(1)(V) (the provisions of section 307(d) apply to ``such other
actions as the Administrator may determine'').

List of Subjects

40 CFR Part 51

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

40 CFR Part 52

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

40 CFR Part 78

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

40 CFR Part 97

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

    Dated: March 15, 2021.
Michael Regan,
Administrator.

    For the reasons stated in the preamble, EPA amends parts 51, 52,
78, and 97 of title 40 of the Code of Federal Regulations as follows:

PART 51--REQUIREMENTS FOR PREPARATION, ADOPTION, AND SUBMITTAL OF
IMPLEMENTATION PLANS

0
1. The authority citation for part 51 continues to read as follows:

    Authority:  23 U.S.C. 101; 42 U.S.C. 7401-7671q.

Subpart G--Control Strategy

Sec.  51.121  [Amended]

0
2. In Sec.  51.121, amend paragraph (r)(2) by removing ``40 CFR
52.38(b)(10)(ii),'' and adding in its place ``40 CFR
52.38(b)(13)(ii),''.

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
3. The authority citation for part 52 continues to read as follows:

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

Subpart A--General Provisions

0
4. Amend Sec.  52.38 by:
0
a. Amending paragraph (a) by revising the paragraph heading;;
0
b. Adding a paragraph heading to paragraph (a)(1) and removing
``(NOX).'' and adding in its place ``(NOX),
except as otherwise provided in this section.'';
0
c. Adding a paragraph heading to paragraph (a)(2);
0
d. Adding a paragraph heading to paragraph (a)(3) introductory text and
removing ``Notwithstanding the provisions of paragraph (a)(1) of this
section, a State'' and adding in its place ``A State'';
0
e. Revising paragraph (a)(4) introductory text;
0
f. In paragraph (a)(4)(i)(A), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
g. In paragraph (a)(4)(i)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 1 to this paragraph;'', adding
a heading to the table, removing the table entry for ``2023 and any
year thereafter'', and adding table entries for ``2023 and 2024'' and
``2025 and any year thereafter'';
0
h. In paragraph (a)(4)(i)(C), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2021, or by April 1 of the year following the

control period, for a control period in 2021 or thereafter; and'';
0
i. Adding a paragraph heading to paragraph (a)(5) introductory text and
removing ``Notwithstanding the provisions of paragraph (a)(1) of this
section, a State'' and adding in its place ``A State'';
0
j. In paragraph (a)(5)(i)(A), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
k. In paragraph (a)(5)(i)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 2 to this paragraph;'', adding
a heading to the table, removing the table entry for ``2023 and any
year thereafter'', and adding table entries for ``2023 and 2024'' and
``2025 and any year thereafter'';
0
l. In paragraph (a)(5)(i)(C), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2021, or by April 1 of the year following the control
period, for a control period in 2021 or thereafter; and'';
0
m. In paragraph (a)(5)(v), adding ``and'' after the semicolon at the
end of the paragraph;
0
n. Adding a paragraph heading to paragraph (a)(6) and removing
``Following promulgation'' and adding in its place ``Except as provided
in paragraph (a)(7) of this section, following promulgation'';
0
o. Revising paragraph (a)(7);
0
p. Adding a paragraph heading to paragraph (a)(8) introductory text;
0
q. Revising the paragraph heading to paragraph (b);
0
r. Revising paragraph (b)(1);
0
s. Adding a paragraph heading to paragraph (b)(2);
0
t. In paragraph (b)(2)(ii), removing ``2016 only:'' and adding in its
place ``2016 only, except as provided in paragraph (b)(14)(iii) of this
section:'';
0
u. Revising paragraph (b)(2)(iii);
0
v. Adding paragraphs (b)(2)(iv) and (v);
0
w. Adding a paragraph heading to paragraph (b)(3) introductory text and
removing ``Notwithstanding the provisions of paragraph (b)(1) of this
section, a State'' and adding in its place ``A State'';
0
x. Revising paragraph (b)(4) introductory text;
0
y. In paragraph (b)(4)(ii)(A), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
z. In paragraph (b)(4)(ii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 3 to this paragraph;'', adding
a heading to the table, removing the table entry for ``2023 and any
year thereafter'', and adding table entries for ``2023 and 2024'' and
``2025 and any year thereafter'';
0
aa. In paragraph (b)(4)(ii)(C), removing ``year of such control
period.'' and adding in its place ``year of such control period, for a
control period before 2021, or by April 1 of the year following the
control period, for a control period in 2021 or thereafter; and'';
0
bb. Adding a paragraph heading to paragraph (b)(5) introductory text
and removing ``Notwithstanding the provisions of paragraph (b)(1) of
this section, a State'' and adding in its place ``A State'';
0
cc. In paragraph (b)(5)(ii)(A), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
dd. In paragraph (b)(5)(ii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 4 to this paragraph;'', adding
a heading to the table, removing the table entry for ``2023 and any
year thereafter'', and adding table entries for ``2023 and 2024'' and
``2025 and any year thereafter'';
0
ee. In paragraph (b)(5)(ii)(C), removing ``year of such control
period.'' and adding in its place ``year of such control period, for a
control period before 2021, or by April 1 of the year following the
control period, for a control period in 2021 or thereafter; and'';
0
ff. In paragraph (b)(5)(vi), adding ``and'' after the semicolon at the
end of the paragraph;
0
gg. Removing and reserving paragraph (b)(6);
0
hh. Adding a paragraph heading to paragraph (b)(7) introductory text,
removing ``Notwithstanding the provisions of paragraph (b)(1) of this
section, a State'' and adding in its place ``A State'', and adding ``or
(iv)'' after ``(b)(2)(iii)'';
0
ii. Revising paragraphs (b)(8) introductory text and (b)(8)(ii);
0
jj. In paragraph (b)(8)(iii)(A)(2), removing the period at the end of
the paragraph and adding in its place a semicolon;
0
kk. In paragraph (b)(8)(iii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 5 to this paragraph;'', adding
a heading to the table, and revising the table entry for ``2025 and any
year thereafter'';
0
ll. In paragraph (b)(8)(iii)(C), removing ``year of such control
period.'' and adding in its place ``year of such control period, for a
control period before 2021, or by April 1 of the year following the
control period, for a control period in 2021 or thereafter; and'';
0
mm. In paragraph (b)(8)(iii)(D), removing ``Sec.  97.526(c)'' and
adding in its place ``Sec.  97.526(d)'';
0
nn. Adding a paragraph heading to paragraph (b)(9) introductory text,
removing ``Notwithstanding the provisions of paragraph (b)(1) of this
section, a State'' and adding in its place ``A State'', and adding ``or
(iv)'' after ``(b)(2)(iii)'' each time ``(b)(2)(iii)'' appears;
0
oo. Revising paragraph (b)(9)(ii);
0
pp. In paragraph (b)(9)(iii)(A)(2), removing the period at the end of
the paragraph and adding in its place a semicolon;
0
qq. In paragraph (b)(9)(iii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 6 to this paragraph;'', adding
a heading to the table, and revising the table entry for ``2025 and any
year thereafter'';
0
rr. In paragraph (b)(9)(iii)(C), removing ``year of such control
period.'' and adding in its place ``year of such control period, for a
control period before 2021, or by April 1 of the year following the
control period, for a control period in 2021 or thereafter; and'';
0
ss. In paragraph (b)(9)(iii)(D), removing ``Sec.  97.526(c)'' and
adding in its place ``Sec.  97.526(d)'';
0
tt. In paragraph (b)(9)(vii), adding ``and'' after the semicolon at the
end of the paragraph;
0
uu. Redesignating paragraphs (b)(10) through (13) as paragraphs (b)(13)
through (16), respectively, and adding new paragraphs (b)(10) through
(12), and further redesignating newly redesignated paragraphs
(b)(16)(ii) through (iv) as paragraphs (b)(16)(i)(A) through (C),
respectively;
0
vv. Revising newly redesignated paragraph (b)(13) introductory text;
0
ww. In newly redesignated paragraph (b)(13)(i), removing ``The
provisions of paragraph (b)(2)(i) or (iii)'' and adding in its place
``Except as provided in paragraph (b)(14) of this section, the
provisions of paragraph (b)(2)(i), (iii), (iv), or (v)'';
0
xx. In newly redesignated paragraph (b)(13)(ii), adding ``or
(b)(12)(ii)'' after ``(b)(9)(ii)'' and removing ``such sources.'' and
adding in its place ``such sources, provided that the Administrator and
the State continue to carry out their respective functions under such
regulations.'';
0
yy. Revising newly redesignated paragraph (b)(14);
0
zz. Adding a paragraph heading to newly redesignated paragraph (b)(15)
introductory text;
0
aaa. Revising newly redesignated paragraphs (b)(16) introductory text
and (b)(16)(i);
0
bbb. In newly redesignated paragraph (b)(16)(i)(C), removing
``(b)(2)(iii),'' and adding in its place ``(b)(2)(iii) or (iv),''; and

0
ccc. Adding paragraphs (b)(16)(ii) and (b)(17).
    The additions and revisions read as follows:

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

    (a) NOX annual emissions--(1) General requirements. * * *
    (2) Applicability of CSAPR NOX Annual Trading Program provisions. *
* *
* * * * *
    (3) State-determined allocations of CSAPR NOX Annual allowances for
2016. * * *
* * * * *
    (4) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR NOX Annual Trading Program. A State listed in paragraph
(a)(2)(i) of this section may adopt and include in a SIP revision, and
the Administrator will approve, regulations replacing specified
provisions of subpart AAAAA of part 97 of this chapter for the State's
sources, and not substantively replacing any other provisions, as
follows:
    (i) * * *
    (B) * * *

                    Table 1 to Paragraph (a)(4)(i)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR NOX Annual allowances are       allocations or auction results
         allocated or auctioned                to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2023 and 2024..........................  June 1 of the fourth year
                                          before the year of the control
                                          period.
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (5) Full SIP revisions adopting State CSAPR NOX Annual Trading
Programs. * * *
    (i) * * *
    (B) * * *

                    Table 2 to Paragraph (a)(5)(i)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR NOX Annual allowances are       allocations or auction results
         allocated or auctioned                to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2023 and 2024..........................  June 1 of the fourth year
                                          before the year of the control
                                          period.
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (6) Withdrawal of CSAPR FIP provisions relating to NOX annual
emissions. * * *
    (7) Continued applicability of certain federal trading program
provisions for NOX annual emissions. (i) Notwithstanding the provisions
of paragraph (a)(6) of this section or any State's SIP, when carrying
out the functions of the Administrator under any State CSAPR
NOX Annual Trading Program pursuant to a SIP revision
approved under this section, the Administrator will apply the following
provisions of this section, as amended, and the following provisions of
subpart AAAAA of part 97 of this chapter, as amended, with regard to
the State and any source subject to such State trading program:
    (A) The definitions in Sec.  97.402 of this chapter;
    (B) The provisions in Sec.  97.410(a) of this chapter (concerning
in part the amounts of the new unit set-asides);
    (C) The provisions in Sec. Sec.  97.411(b)(1) and 97.412(a) of this
chapter (concerning the procedures for administering the new unit set-
asides), except where the State allocates or auctions CSAPR
NOX Annual allowances under an approved SIP revision;
    (D) The provisions in Sec.  97.411(c)(5) of this chapter
(concerning the disposition of incorrectly allocated CSAPR
NOX Annual allowances);
    (E) The provisions in Sec.  97.421(f), (g), and (i) of this chapter
(concerning the deadlines for recordation of allocations or auctions of
CSAPR NOX Annual allowances) and the provisions in
paragraphs (a)(4)(i)(B) and (C) and (a)(5)(i)(B) and (C) of this
section (concerning the deadlines for submission to the Administrator
of State-determined allocations or auction results); and
    (F) The provisions in Sec.  97.425(b) of this chapter (concerning
the procedures for administering the assurance provisions).
    (ii) Notwithstanding the provisions of paragraph (a)(6) of this
section, if, at the time of any approval of a State's SIP revision
under this section, the Administrator has already started recording any
allocations of CSAPR NOX Annual allowances under subpart
AAAAA of part 97 of this chapter to units in the State for a control
period in any year, the provisions of such subpart authorizing the
Administrator to complete the allocation and recordation of such
allowances to units in the State for each such control period shall
continue to apply, unless provided otherwise by such approval of the
State's SIP revision.
    (8) States with approved SIP revisions addressing the CSAPR NOX
Annual Trading Program. * * *
* * * * *
    (b) NOX ozone season emissions--(1) General requirements. The CSAPR
NOX Ozone Season Group 1 Trading Program provisions, the
CSAPR NOX Ozone Season Group 2 Trading Program provisions,
and the CSAPR NOX Ozone Season Group 3 Trading Program
provisions set forth respectively in subparts BBBBB, EEEEE, and GGGGG
of part 97 of this chapter constitute the CSAPR Federal Implementation
Plan provisions that relate to emissions of NOX during the
ozone season (defined as May 1 through September 30 of a calendar
year), except as otherwise provided in this section.
    (2) Applicability of CSAPR NOX Ozone Season Group 1, Group 2, and
Group 3 Trading Program provisions. * * *
* * * * *

    (iii) The provisions of subpart EEEEE of part 97 of this chapter
apply to sources in each of the following States and Indian country
located within the borders of such States with regard to emissions
occurring in 2017 and each subsequent year: Alabama, Arkansas, Iowa,
Kansas, Mississippi, Missouri, Oklahoma, Tennessee, Texas, and
Wisconsin.
    (iv) The provisions of subpart EEEEE of part 97 of this chapter
apply to sources in each of the following States and Indian country
located within the borders of such States with regard to emissions
occurring in 2017 through 2020 only, except as provided in paragraph
(b)(14)(iii) of this section: Illinois, Indiana, Kentucky, Louisiana,
Maryland, Michigan, New Jersey, New York, Ohio, Pennsylvania, Virginia,
and West Virginia.
    (v) The provisions of subpart GGGGG of part 97 of this chapter
apply to sources in each of the following States and Indian country
located within the borders of such States with regard to emissions
occurring in 2021 and each subsequent year: Illinois, Indiana,
Kentucky, Louisiana, Maryland, Michigan, New Jersey, New York, Ohio,
Pennsylvania, Virginia, and West Virginia.
    (3) State-determined allocations of CSAPR NOX Ozone Season Group 1
allowances for 2016. * * *
* * * * *
    (4) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR NOX Ozone Season Group 1 Trading Program. A State listed
in paragraph (b)(2)(i) of this section may adopt and include in a SIP
revision, and the Administrator will approve, regulations replacing
specified provisions of subpart BBBBB of part 97 of this chapter for
the State's sources, and not substantively replacing any other
provisions, as follows:
* * * * *
    (ii) * * *
    (B) * * *

                   Table 3 to Paragraph (b)(4)(ii)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
     CSAPR NOX Ozone Season Group 1       allocations or auction results
 allowances are allocated or auctioned         to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2023 and 2024..........................  June 1 of the fourth year
                                          before the year of the control
                                          period.
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (5) Full SIP revisions adopting State CSAPR NOX Ozone Season Group
1 Trading Programs. * * *
* * * * *
    (ii) * * *
    (B) * * *

                   Table 4 to Paragraph (b)(5)(ii)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
     CSAPR NOX Ozone Season Group 1       allocations or auction results
 allowances are allocated or auctioned         to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2023 and 2024..........................  June 1 of the fourth year
                                          before the year of the control
                                          period.
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (7) State-determined allocations of CSAPR NOX Ozone Season Group 2
allowances for 2018. * * *
* * * * *
    (8) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR NOX Ozone Season Group 2 Trading Program. A State listed
in paragraph (b)(2)(iii) or (iv) of this section may adopt and include
in a SIP revision, and the Administrator will approve, regulations
replacing specified provisions of subpart EEEEE of part 97 of this
chapter for the State's sources, and not substantively replacing any
other provisions, as follows:
* * * * *
    (ii) The State may adopt, as applicability provisions replacing the
provisions in Sec.  97.804(a) and (b) of this chapter with regard to
the State, provisions substantively identical to those provisions,
except that applicability is expanded to include all other units
(beyond any units to which applicability could be expanded under
paragraph (b)(8)(i) of this section) that would have been subject to
any emissions trading program regulations approved as a SIP revision
for the State under Sec.  51.121 of this chapter; and
    (iii) * * *
    (B) * * *

                   Table 5 to Paragraph (b)(8)(iii)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
     CSAPR NOX Ozone Season Group 2       allocations or auction results
 allowances are allocated or auctioned         to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (9) Full SIP revisions adopting State CSAPR NOX Ozone
Season Group 2 Trading Programs. * * *
* * * * *
    (ii) May adopt, as applicability provisions replacing the
provisions in Sec.  97.804(a) and (b) of this chapter with regard to
the State, provisions substantively identical to those provisions,
except that applicability is expanded to include all other units
(beyond any units to which applicability could be expanded under
paragraph (b)(9)(i) of this section) that would have been subject to
any emissions trading program regulations approved as a SIP revision
for the State under Sec.  51.121 of this chapter;
    (iii) * * *
    (B) * * *

                   Table 6 to Paragraph (b)(9)(iii)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
     CSAPR NOX Ozone Season Group 2       allocations or auction results
 allowances are allocated or auctioned         to the administrator
------------------------------------------------------------------------

                              * * * * * * *
2025 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

* * * * *
    (10) State-determined allocations of CSAPR NOX Ozone
Season Group 3 allowances for 2022. A State listed in paragraph
(b)(2)(v) of this section may adopt and include in a SIP revision, and
the Administrator will approve, as CSAPR NOX Ozone Season
Group 3 allowance allocation provisions replacing the provisions in
Sec.  97.1011(a) of this chapter with regard to the State and the
control period in 2022, a list of CSAPR NOX Ozone Season
Group 3 units and the amount of CSAPR NOX Ozone Season Group
3 allowances allocated to each unit on such list, provided that the
list of units and allocations meets the following requirements:
    (i) All of the units on the list must be units that are in the
State and commenced commercial operation before January 1, 2019;
    (ii) The total amount of CSAPR NOX Ozone Season Group 3
allowance allocations on the list must not exceed the amount, under
Sec.  97.1010(a) of this chapter for the State and the control period
in 2022, of the CSAPR NOX Ozone Season Group 3 trading
budget minus the sum of the new unit set-aside and Indian country new
unit set-aside;
    (iii) The list must be submitted electronically in a format
specified by the Administrator; and
    (iv) The SIP revision must not provide for any change in the units
and allocations on the list after approval of the SIP revision by the
Administrator and must not provide for any change in any allocation
determined and recorded by the Administrator under subpart GGGGG of
part 97 of this chapter;
    (v) Provided that:
    (A) By June 29, 2021, the State must notify the Administrator
electronically in a format specified by the Administrator of the
State's intent to submit to the Administrator a complete SIP revision
meeting the requirements of paragraphs (b)(10)(i) through (iv) of this
section by September 1, 2021; and
    (B) The State must submit to the Administrator a complete SIP
revision described in paragraph (b)(10)(v)(A) of this section by
September 1, 2021.
    (11) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR NOX Ozone Season Group 3 Trading Program. A State listed
in paragraph (b)(2)(v) of this section may adopt and include in a SIP
revision, and the Administrator will approve, regulations replacing
specified provisions of subpart GGGGG of part 97 of this chapter for
the State's sources, and not substantively replacing any other
provisions, as follows:
    (i) The State may adopt, as applicability provisions replacing the
provisions in Sec.  97.1004(a)(1) and (2) of this chapter with regard
to the State, provisions substantively identical to those provisions,
except that the words ``more than 25 MWe'' are replaced, wherever such
words appear, by words specifying a uniform lower limit on the amount
of megawatts that is not greater than the amount specified by the words
``more than 25 MWe'' and is not less than the amount specified by the
words ``15 MWe or more'';
    (ii) The State may adopt, as applicability provisions replacing the
provisions in Sec.  97.1004(a) and (b) of this chapter with regard to
the State, provisions substantively identical to those provisions,
except that applicability is expanded to include all other units
(beyond any units to which applicability could be expanded under
paragraph (b)(11)(i) of this section) that would have been subject to
any emissions trading program regulations approved as a SIP revision
for the State under Sec.  51.121 of this chapter; and
    (iii) The State may adopt, as CSAPR NOX Ozone Season
Group 3 allowance allocation or auction provisions replacing the
provisions in Sec. Sec.  97.1011(a) and (b)(1) and 97.1012(a) of this
chapter with regard to the State and the control period in 2023 or any
subsequent year, any methodology under which the State or the
permitting authority allocates or auctions CSAPR NOX Ozone
Season Group 3 allowances and may adopt, in addition to the definitions
in Sec.  97.1002 of this chapter, one or more definitions that shall
apply only to terms as used in the adopted CSAPR NOX Ozone
Season Group 3 allowance allocation or auction provisions, if such
methodology--
    (A) Requires the State or the permitting authority to allocate and,
if applicable, auction a total amount of CSAPR NOX Ozone
Season Group 3 allowances for any such control period not exceeding the
amount, under Sec. Sec.  97.1010(a) and 97.1021 of this chapter for the
State and such control period, of the CSAPR NOX Ozone Season
Group 3 trading budget minus the sum of the Indian country new unit
set-aside and the amount of any CSAPR NOX Ozone Season Group
3 allowances already allocated and recorded by the Administrator, plus,
if the State adopts regulations expanding applicability to additional
units pursuant to paragraph (b)(11)(ii) of this section, an additional
amount of CSAPR NOX Ozone Season Group 3 allowances not
exceeding the lesser of:
    (1) The highest of the sum, for all additional units in the State
to which applicability is expanded pursuant to paragraph (b)(11)(ii) of
this section, of the NOX emissions reported in accordance
with part 75 of this chapter for the ozone season in the year before
the year of the submission deadline for the SIP revision under
paragraph (b)(11)(iv) of this section and the corresponding sums of the
NOX emissions reported in accordance with part 75 of this
chapter for each of the two immediately preceding ozone seasons,
provided that each such seasonal sum shall exclude the amount of any
NOX emissions reported by any unit for all hours in any
calendar day

during which the unit did not have at least one quality-assured monitor
operating hour, as defined in Sec.  72.2 of this chapter; or
    (2) The portion of the emissions budget under the State's emissions
trading program regulations approved as a SIP revision under Sec.
51.121 of this chapter that is attributable to the units to which
applicability is expanded pursuant to paragraph (b)(11)(ii) of this
section;
    (B) Requires, to the extent the State adopts provisions for
allocations or auctions of CSAPR NOX Ozone Season Group 3
allowances for any such control period to any CSAPR NOX
Ozone Season Group 3 units covered by Sec.  97.1011(a) of this chapter,
that the State or the permitting authority submit such allocations or
the results of such auctions for such control period (except
allocations or results of auctions to such units of CSAPR
NOX Ozone Season Group 3 allowances remaining in a set-aside
after completion of the allocations or auctions for which the set-aside
was created) to the Administrator no later than the dates in Table 7 to
this paragraph;

                  Table 7 to Paragraph (b)(11)(iii)(B)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
     CSAPR NOX Ozone Season Group 3       allocations or auction results
 allowances are allocated or auctioned         to the Administrator
------------------------------------------------------------------------
2023...................................  June 1, 2022.
2024...................................  June 1, 2022.
2025...................................  June 1, 2023.
2026...................................  June 1, 2023.
2027 and any year thereafter...........  June 1 of the third year before
                                          the year of the control
                                          period.
------------------------------------------------------------------------

    (C) Requires, to the extent the State adopts provisions for
allocations or auctions of CSAPR NOX Ozone Season Group 3
allowances for any such control period to any CSAPR NOX
Ozone Season Group 3 units covered by Sec. Sec.  97.1011(b)(1) and
97.1012(a) of this chapter, that the State or the permitting authority
submit such allocations or the results of such auctions (except
allocations or results of auctions to such units of CSAPR
NOX Ozone Season Group 3 allowances remaining in a set-aside
after completion of the allocations or auctions for which the set-aside
was created) to the Administrator by April 1 of the year following the
year of such control period; and
    (D) Does not provide for any change, after the submission deadlines
in paragraphs (b)(11)(iii)(B) and (C) of this section, in the
allocations submitted to the Administrator by such deadlines and does
not provide for any change in any allocation determined and recorded by
the Administrator under subpart GGGGG of part 97 of this chapter or
Sec.  97.526(d) or Sec.  97.826(d) of this chapter;
    (iv) Provided that the State must submit a complete SIP revision
meeting the requirements of paragraph (b)(11)(i), (ii), or (iii) of
this section by December 1 of the year before the year of the deadlines
for submission of allocations or auction results under paragraphs
(b)(11)(iii)(B) and (C) of this section applicable to the first control
period for which the State wants to replace the applicability
provisions, make allocations, or hold an auction under paragraph
(b)(11)(i), (ii), or (iii) of this section.
    (12) Full SIP revisions adopting State CSAPR NOX Ozone Season Group
3 Trading Programs. A State listed in paragraph (b)(2)(v) of this
section may adopt and include in a SIP revision, and the Administrator
will approve, as correcting the deficiency in the SIP that is the basis
for the CSAPR Federal Implementation Plan set forth in paragraphs
(b)(1), (b)(2)(v), and (b)(10) and (11) of this section with regard to
sources in the State (but not sources in any Indian country within the
borders of the State), regulations that are substantively identical to
the provisions of the CSAPR NOX Ozone Season Group 3 Trading
Program set forth in Sec. Sec.  97.1002 through 97.1035 of this
chapter, except that the SIP revision:
    (i) May adopt, as applicability provisions replacing the provisions
in Sec.  97.1004(a)(1) and (2) of this chapter with regard to the
State, provisions substantively identical to those provisions, except
that the words ``more than 25 MWe'' are replaced, wherever such words
appear, by words specifying a uniform lower limit on the amount of
megawatts that is not greater than the amount specified by the words
``more than 25 MWe'' and is not less than the amount specified by the
words ``15 MWe or more'';
    (ii) May adopt, as applicability provisions replacing the
provisions in Sec.  97.1004(a) and (b) of this chapter with regard to
the State, provisions substantively identical to those provisions,
except that applicability is expanded to include all other units
(beyond any units to which applicability could be expanded under
paragraph (b)(12)(i) of this section) that would have been subject to
any emissions trading program regulations approved as a SIP revision
for the State under Sec.  51.121 of this chapter;
    (iii) May adopt, as CSAPR NOX Ozone Season Group 3
allowance allocation provisions replacing the provisions in Sec. Sec.
97.1011(a) and (b)(1) and 97.1012(a) of this chapter with regard to the
State and the control period in 2023 or any subsequent year, any
methodology under which the State or the permitting authority allocates
or auctions CSAPR NOX Ozone Season Group 3 allowances and
that--
    (A) Requires the State or the permitting authority to allocate and,
if applicable, auction a total amount of CSAPR NOX Ozone
Season Group 3 allowances for any such control period not exceeding the
amount, under Sec. Sec.  97.1010(a) and 97.1021 of this chapter for the
State and such control period, of the CSAPR NOX Ozone Season
Group 3 trading budget minus the sum of the Indian country new unit
set-aside and the amount of any CSAPR NOX Ozone Season Group
3 allowances already allocated and recorded by the Administrator, plus,
if the State adopts regulations expanding applicability to additional
units pursuant to paragraph (b)(12)(ii) of this section, an additional
amount of CSAPR NOX Ozone Season Group 3 allowances not
exceeding the lesser of:
    (1) The highest of the sum, for all additional units in the State
to which applicability is expanded pursuant to paragraph (b)(12)(ii) of
this section, of the NOX emissions reported in accordance
with part 75 of this chapter for the ozone season in the year before
the year of the submission deadline for the SIP revision under
paragraph (b)(12)(viii) of this section and the corresponding sums of
the NOX emissions reported in accordance with part 75 of
this chapter for each of the two immediately preceding ozone seasons,
provided that each such seasonal sum shall exclude the amount

of any NOX emissions reported by any unit for all hours in
any calendar day during which the unit did not have at least one
quality-assured monitor operating hour, as defined in Sec.  72.2 of
this chapter; or
    (2) The portion of the emissions budget under the State's emissions
trading program regulations approved as a SIP revision under Sec.
51.121 of this chapter that is attributable to the units to which
applicability is expanded pursuant to paragraph (b)(12)(ii) of this
section;
    (B) Requires, to the extent the State adopts provisions for
allocations or auctions of CSAPR NOX Ozone Season Group 3
allowances for any such control period to any CSAPR NOX
Ozone Season Group 3 units covered by Sec.  97.1011(a) of this chapter,
that the State or the permitting authority submit such allocations or
the results of such auctions for such control period (except
allocations or results of auctions to such units of CSAPR
NOX Ozone Season Group 3 allowances remaining in a set-aside
after completion of the allocations or auctions for which the set-aside
was created) to the Administrator no later than the dates in Table 8 to
this paragraph;

                  Table 8 to Paragraph (b)(12)(iii)(B)
------------------------------------------------------------------------
  Year of the control period
  for which CSAPR NOX Ozone    Deadline for submission of allocations or
Season Group 3 allowances are     auction results to the Administrator
    allocated or auctioned
------------------------------------------------------------------------
2023.........................  June 1, 2022.
2024.........................  June 1, 2022.
2025.........................  June 1, 2023.
2026.........................  June 1, 2023.
2027 and any year thereafter.  June 1 of the third year before the year
                                of the control period.
------------------------------------------------------------------------

    (C) Requires, to the extent the State adopts provisions for
allocations or auctions of CSAPR NOX Ozone Season Group 3
allowances for any such control period to any CSAPR NOX
Ozone Season Group 3 units covered by Sec. Sec.  97.1011(b)(1) and
97.1012(a) of this chapter, that the State or the permitting authority
submit such allocations or the results of such auctions (except
allocations or results of auctions to such units of CSAPR
NOX Ozone Season Group 3 allowances remaining in a set-aside
after completion of the allocations or auctions for which the set-aside
was created) to the Administrator by April 1 of the year following the
year of such control period; and
    (D) Does not provide for any change, after the submission deadlines
in paragraphs (b)(12)(iii)(B) and (C) of this section, in the
allocations submitted to the Administrator by such deadlines and does