[Federal Register: October 14, 2009 (Volume 74, Number 197)]
[Proposed Rules]
[Page 52717-52723]
[DOCID:fr14oc09-32]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 97

[EPA-R04-OAR-2009-0765; FRL-8968-7]

Approval and Promulgation of Air Quality Implementation Plans;
Tennessee; Clean Air Interstate Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve revisions to the Tennessee State
Implementation Plan (SIP) submitted by the State of Tennessee through
the Tennessee Department of Environment and Conservation on July 13,
2009. This revision incorporates provisions related to the
implementation of EPA's Clean Air Interstate Rule (CAIR), promulgated
on May 12, 2005, subsequently revised on April 28, 2006, and December
13, 2006, and the CAIR Federal Implementation Plan (FIP) concerning
Sulfur Dioxide (SO2), Nitrogen Oxides (NOX)
annual, and NOX ozone season emissions for the State of
Tennessee, promulgated on April 28, 2006, and subsequently revised
December 13, 2006. Although the District of Columbia Circuit Court
found CAIR to be flawed, the rule was remanded without vacatur and thus
remains in place. EPA is continuing to approve CAIR provisions into
SIPs as appropriate. EPA previously approved an ``abbreviated SIP'' for
Tennessee, primarily consisting of rules governing allocation of
allowances to electric generating units (EGUs) for use in the trading
programs established pursuant to CAIR and providing for voluntary opt-
in to these programs on August 20, 2007 (72 FR 46388), effective on
October 19, 2007. Tennessee has now requested, in a revised submittal
dated September 21, 2009, and a clarification letter dated September
24, 2009, that EPA act on a portion of the July 13, 2009, submittal as
an abbreviated SIP.

Consequently, EPA is proposing to approve a SIP revision that addresses
the transition of the State's NOX Budget Trading Program
(Tennessee Air Pollution Control Regulations [TAPCR] Rule 1200-03-
27-.06) to the State's CAIR NOX Ozone Season Trading Program
(TAPCR 1200-03-27-.11); the expansion of the current applicability
provisions in the CAIR NOX Ozone Season Trading program to
include units that are not otherwise subject to the trading program but
are subject to the States NOX Budget Trading Program; and
the methodology to be used to allocate ozone season NOX
allowances to these units under the CAIR FIPs. Tennessee is also
seeking approval of technical corrections to the CAIR NOX
Ozone Season Trading Program opt-in provisions, as noted in the August
20, 2007, approval. EPA is not making any changes to the CAIR FIP, but
is amending the appropriate appendices to note EPA's approval of
Tennessee's SIP revision.

DATES: Comments must be received on or before November 13, 2009.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2009-0765, by one of the following methods:
    1. http://www.regulations.gov: Follow the online instructions for
submitting comments.
    2. E-mail<EMAIL_ADDRESS>    3. Fax:<PHONE_NUMBER>.
    4. Mail: EPA-R04-OAR-2009-0765, Regulatory Development Section, Air
Planning Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303-8960.
    5. Hand Delivery or Courier: Lynorae Benjamin, Chief, Regulatory
Development Section, Air Planning Branch, Air, Pesticides and Toxics
Management Division, U.S. Environmental Protection Agency, Region 4, 61
Forsyth Street, SW., Atlanta, Georgia 30303-8960. Such deliveries are
only accepted during the Regional Office's normal hours of operation.
The Regional Office's official hours of business are Monday through
Friday, 8:30 to 4:30, excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R04-OAR-
2009-0765. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
http://www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit through http://
www.regulations.gov or e-mail, information that you consider to be CBI
or otherwise protected. The http://www.regulations.gov Web site is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through http://www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses. For additional information about EPA's public
docket visit the EPA Docket Center homepage at http://www.epa.gov/
epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the
http://www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in http://
www.regulations.gov or in hard copy at the Regulatory Development
Section, Air Planning Branch, Air, Pesticides and Toxics Management
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth
Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all
possible, you contact the person listed in the FOR FURTHER INFORMATION
CONTACT section to schedule your inspection. The Regional Office's
official hours of business are Monday through Friday, 8:30 to 4:30,
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Steven Scofield, Regulatory
Development Section, Air Planning Branch, Air, Pesticides and Toxics
Management Division, U.S. Environmental Protection Agency, Region 4, 61
Forsyth Street, SW., Atlanta, Georgia 30303-8960. The telephone number
is<PHONE_NUMBER>. Mr. Scofield can also be reached via electronic mail
at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

Table of Contents

I. What Action Is EPA Proposing to Take?
II. What Is the Regulatory History of CAIR and the CAIR FIPs?
III. What Are the General Requirements of CAIR and the CAIR FIPs?
IV. What Are the Types of CAIR SIP Submittals?
V. Analysis of Tennessee's CAIR SIP Submittal
    A. Elements of Tennessee's Submittal
    B. State Budgets for Allowance Allocations
    C. CAIR Cap-and-Trade Programs
    D. Applicability Provisions
    E. NOX Allowance Allocations
    F. Individual Opt-in Units
VI. Proposed Action
VII. Statutory and Executive Order Reviews

I. What Action Is EPA Proposing To Take?

    EPA is proposing to approve a revision to Tennessee's SIP,
submitted by Tennessee on July 13, 2009, as clarified herein, that
would modify the application of certain provisions of the CAIR FIP
concerning NOX Ozone season emissions. (As discussed below,
this less comprehensive CAIR SIP is termed an abbreviated SIP).
Tennessee is subject to the CAIR FIPs that implement the CAIR
requirements by requiring certain EGUs to participate in the EPA-
administered CAIR cap-and-trade programs addressing SO2,
NOX annual, and NOX ozone season emissions. This
SIP revision provides a methodology for allocating NOX
allowances for the NOX ozone season trading program for
NOX SIP Call trading sources that are not EGUs as defined by
CAIR, but are subject to the CAIR NOX ozone season trading
program. The CAIR FIPs provide that this methodology, if approved, will
be used to allocate NOX Ozone Season allowances to sources
in Tennessee. Consistent with the flexibility provided in the FIPs,
these provisions will also be used to replace or supplement, as
appropriate, the corresponding provisions in the CAIR FIP for
Tennessee. EPA is also proposing to approve technical corrections to
the CAIR NOX Ozone Season Trading Program opt-in provisions,
as noted in the August 20, 2007, approval. Since EPA will no longer
administer the NOX Budget Trading Program, Tennessee has
chosen to terminate its NOX Budget Trading program rules
(TAPCR Rule 1200-03-27-.06). EPA is, therefore, proposing to approve
provisions which terminate the State's NOX Budget

Trading Program because those requirements are now addressed by the
CAIR NOX Ozone Season FIP, as modified by the State's
abbreviated SIP. Finally, EPA is not making any changes to the CAIR
FIP, but is amending the appropriate appendices to note EPA's approval
of Tennessee's SIP revision.

II. What Is the Regulatory History of the CAIR and the CAIR FIPs?

    EPA published CAIR on May 12, 2005 (70 FR 25162). In this rule, EPA
determined that 28 States and the District of Columbia contribute
significantly to nonattainment and interfere with maintenance of the
national ambient air quality standard (NAAQS) for fine particles
(PM2.5) and/or 8-hour ozone in downwind states in the
eastern part of the country. As a result, EPA required those upwind
States to revise their SIPs to include control measures that reduce
emissions of SO2, which is a precursor to PM2.5
formation, and/or NOX, which is a precursor to both ozone
and PM2.5 formation. For jurisdictions that contribute
significantly to downwind PM2.5 nonattainment, CAIR sets
annual state-wide emission reduction requirements (i.e., budgets) for
SO2 and annual state-wide emission reduction requirements
for NOX. Similarly, for jurisdictions that contribute
significantly to 8-hour ozone nonattainment, CAIR sets State-wide
emission reduction requirements or budgets for NOX for the
ozone season (May 1 to September 30). Under CAIR, states may implement
these reduction requirements by participating in the EPA-administered
cap-and-trade programs or by adopting any other control measures.
    CAIR explains to subject states what must be included in SIPs to
address the requirements of section 110(a)(2)(D) of the Clean Air Act
(CAA) with regard to interstate transport with respect to the 8-hour
ozone and PM2.5 NAAQS. EPA made national findings, effective
on May 25, 2005, that the states had failed to submit SIPs meeting the
requirements of section 110(a)(2)(D). The SIPs were due in July 2000, 3
years after the promulgation of the 1997 8-hour ozone and
PM2.5 NAAQS. These findings started a 2-year clock for EPA
to promulgate a FIP to address the requirements of section
110(a)(2)(D). Under CAA section 110(c)(1), EPA may issue a FIP anytime
after such findings are made and must do so within two years unless a
SIP revision correcting the deficiency is approved by EPA before the
FIP is promulgated.
    On April 28, 2006, EPA promulgated FIPs for all states covered by
CAIR in order to ensure the emissions reductions required by CAIR are
achieved on schedule. The CAIR FIPs require EGUs to participate in the
EPA-administered CAIR SO2, NOX annual, and
NOX ozone season trading programs, as appropriate. The CAIR
FIP SO2, NOX annual, and NOX ozone
season trading programs impose essentially the same requirements as,
and are integrated with, the respective CAIR SIP trading programs. The
integration of the FIP and SIP trading programs means that these
trading programs will work together to effectively create a single
trading program for each regulated pollutant (SO2,
NOX annual, and NOX ozone season) in all states
covered by the CAIR FIP or SIP trading program for that pollutant. The
CAIR FIPs also allow states to submit abbreviated SIP revisions that,
if approved by EPA, will automatically replace or supplement the
corresponding CAIR FIP provisions (e.g., the methodology for allocating
NOX allowances to sources in the state), while the CAIR FIP
remains in place for all other provisions.
    On April 28, 2006, EPA published two additional CAIR-related final
rules that added the States of Delaware and New Jersey to the list of
states subject to CAIR for PM2.5 and announced EPA's final
decisions on reconsideration of five issues, without making any
substantive changes to the CAIR requirements. On October 19, 2007, EPA
amended CAIR and the CAIR FIPs to clarify the definition of
``cogeneration unit'' and thus the applicability of the CAIR trading
program to cogeneration units.
    EPA was sued by a number of parties on various aspects of CAIR, and
on July 11, 2008, the U.S. Court of Appeals for the District of
Columbia Circuit issued its decision to vacate and remand both CAIR and
the associated CAIR FIPs in their entirety. North Carolina v. EPA, 531
F.3d 836 (DC Cir. Jul. 11, 2008). However, in response to EPA's
petition for rehearing, the Court issued an order remanding CAIR to EPA
without vacating either CAIR or the CAIR FIPs. North Carolina v. EPA,
550 F.3d 1176 (DC Cir. Dec. 23, 2008). The Court thereby left CAIR in
place in order to ``temporarily preserve the environmental values
covered by CAIR'' until EPA replaces it with a rule consistent with the
Court's opinion. Id. at 1178. The Court directed EPA to ``remedy CAIR's
flaws'' consistent with its July 11, 2008, opinion, but declined to
impose a schedule on EPA for completing that action. Id. Therefore,
CAIR and the CAIR FIP are currently in effect in Tennessee.

III. What Are the General Requirements of CAIR and the CAIR FIPs?

    CAIR establishes state-wide emission budgets for SO2 and
NOX and is to be implemented in two phases. The first phase
of NOX reductions starts in 2009 and continues through 2014,
while the first phase of SO2 reductions starts in 2010 and
continues through 2014. The second phase of reductions for both
NOX and SO2 starts in 2015 and continues
thereafter. CAIR requires states to implement the budgets by either:
(1) Requiring EGUs to participate in the EPA-administered cap-and-trade
programs; or (2) adopting other control measures of the state's
choosing and demonstrating that such control measures will result in
compliance with the applicable state SO2 and NOX
budgets.
    The May 12, 2005, and April 28, 2006, CAIR rules provide model
rules that states must adopt (with certain limited changes, if desired)
if they want to participate in the EPA-administered trading programs.
With two exceptions, only states that choose to meet the requirements
of CAIR through methods that exclusively regulate EGUs are allowed to
participate in the EPA-administered trading programs. One exception is
for states that adopt the opt-in provisions of the model rules to allow
non-EGUs individually to opt into the EPA-administered trading
programs. The other exception is for states that include all non-EGUs
from their NOX SIP Call trading programs in their CAIR
NOX ozone season trading programs.

IV. What Are the Types of CAIR SIP Submittals?

    States have the flexibility to choose the type of control measures
they will use to meet the requirements of CAIR. EPA anticipates that
most states will choose to meet the CAIR requirements by selecting an
option that requires EGUs to participate in the EPA-administered CAIR
cap-and-trade programs. For such states, EPA has provided two
approaches for submitting and obtaining approval for CAIR SIP
revisions. States may submit full SIP revisions that adopt the model
CAIR cap-and-trade rules. If approved, these SIP revisions will fully
replace the CAIR FIPs. Alternatively, states may submit abbreviated SIP
revisions. These SIP revisions will not replace the CAIR FIPs; however,
the CAIR FIPs provide that, when approved, the provisions in these
abbreviated SIP revisions will be used instead of or in conjunction
with, as appropriate, the corresponding provisions of the CAIR FIPs
(e.g., the

NOX allowance allocation methodology).
    A state submitting a full SIP revision may either adopt regulations
that are substantively identical to the model rules or incorporate by
reference the model rules. CAIR provides that states may only make
limited changes to the model rules if the states want to participate in
the EPA-administered trading programs. A full SIP revision may change
the model rules only by altering their applicability and allowance
allocation provisions to:
    1. Include all NOX SIP Call trading sources that are not
EGUs under CAIR in the CAIR NOX ozone season trading
program;
    2. Provide for State allocation of NOX annual or ozone
season allowances using a methodology chosen by the State;
    3. Provide for State allocation of NOX annual allowances
from the compliance supplement pool (CSP) using the State's choice of
allowed, alternative methodologies; or
    4. Allow units that are not otherwise CAIR units to opt
individually into the CAIR SO2, NOX annual, or
NOX ozone season trading programs under the opt-in
provisions in the model rules.
    With the approval of an abbreviated SIP revision, the CAIR FIP
remains in place, as tailored to sources in the State by that approved
SIP revision.
    Abbreviated SIP revisions can be submitted in lieu of, or as part
of, CAIR full SIP revisions, states may want to designate part of their
full SIP as an abbreviated SIP for EPA to act on first when the timing
of the State's submission might not provide EPA with sufficient time to
approve the full SIP prior to the deadline for NOX
allocations. This will help ensure that the elements of the trading
programs where flexibility is allowed are implemented according to the
State's decisions. Submission of an abbreviated SIP does not preclude
future submission of a CAIR Full SIP revision. In this case the July
13, 2009, submittal (revised on September 21, 2009, and clarified on
September 24, 2009) from Tennessee has been submitted as an abbreviated
SIP revision.

V. Analysis of Tennessee's CAIR SIP Submittal

A. Elements of Tennessee's Submittal

    In response to CAIR, Tennessee adopted rules that it submitted on
September 8, 2006. These rules were intended to constitute a full SIP
submittal, addressing the requirements under CAIR without reliance on
the CAIR FIPs. Nevertheless, to expedite action on key provisions,
Tennessee requested that EPA act on a subset of these rules
constituting an abbreviated SIP (the rules defining the allocation of
NOX allowances to EGUs under the CAIR FIP and provisions for
sources voluntarily to opt into the SO2, NOX
annual, and NOX ozone season trading programs), while
deferring action on the remainder of the rules necessary to constitute
a full SIP.
    Rulemaking on a full SIP submittal involves a broader range of
issues than rulemaking on an abbreviated SIP submittal. EPA wished to
expedite action on Tennessee's NOX allowance allocations and
its rules allowing sources voluntarily to opt into the trading
programs. Therefore, as requested by Tennessee, EPA took action on the
abbreviated SIP portion of Tennessee's submittal and did not act on the
remaining portions of Tennessee's September 8, 2006, submittal. EPA
promulgated a direct final approval of these abbreviated SIP potions of
Tennessee's rules on August 20, 2007 (72 FR 46388), which became
effective on October 19, 2007.
    On February 11, 2009, Tennessee adopted revisions to its CAIR
NOX Ozone Season Trading Program and on July 13, 2009,
submitted a request to EPA for approval of these revisions into the
SIP. That request was revised on September 21, 2009, and supplemented
by letter to EPA dated September 24, 2009, clarifying portions of the
submittal.

B. State Budgets for Allowance Allocations

    The CAIR NOX annual and ozone season budgets were
developed from historical heat input data for EGUs. Using these data,
EPA calculated annual and ozone season regional heat input values,
which were multiplied by 0.15 pounds per million British thermal unit
(lb/mmBtu) for phase 1, and 0.125 lb/mmBtu, for phase 2, to obtain
regional NOX budgets for 2009-2014 and for 2015 and
thereafter, respectively. EPA derived the State NOX annual
and ozone season budgets from the regional budgets using State heat
input data adjusted by fuel factors.
    The CAIR State SO2 budgets were derived by discounting
the tonnage of emissions authorized by annual allowance allocations
under the Acid Rain Program under title IV of the CAA.
    Under CAIR, each allowance allocated in the Acid Rain Program for
the years in phase 1 of CAIR (2010 through 2014) authorizes 0.50 ton of
SO2 emissions in the CAIR trading program, and each Acid
Rain Program allowance allocated for the years in phase 2 of CAIR (2015
and thereafter) authorizes 0.35 ton of SO2 emissions in the
CAIR trading program.
    The CAIR FIPs established budgets for Tennessee as 50,973 (2009-
2014) and 42,478 (2015-thereafter) tons for NOX annual
emissions, 22,842 (2009-2014) and 19,035 (2015-thereafter) tons for
NOX Ozone season emissions, and 137,216 (2010-1014) and
96,051 (2015-thereafter) tons for SO2 emissions. In
Tennessee's SIP revision, submitted on July 13, 2009, Tennessee has
chosen to include all NOX SIP Call trading sources that are
not EGUs under CAIR in the CAIR NOX ozone season trading
program. As a result of this SIP revision, the CAIR NOX
ozone season budget will be increased annually by 5,666 tons to account
for such NOX SIP Call trading sources. The total Tennessee
CAIR NOX Ozone Season budgets are, therefore, 28,508 (2009-
2014) and 24,701 (2015 and thereafter) tons. EPA is proposing to
approve Tennessee's State trading budgets under TAPCR 1200-3-
27-.11(2)(c).
    EPA notes that, in North Carolina, the Court determined, among
other things, that the state SO2 and NOX budgets
established in CAIR were arbitrary and capricious. 531 F.3d at 916-21.
However, as discussed above, the Court also decided to remand CAIR but
to leave the rule in place in order to ``temporarily preserve the
environmental values covered by CAIR'' pending EPA's development and
promulgation of a replacement rule that remedies CAIR's flaws. Id. at
1178. Pursuant to the Court's ruling, EPA is developing a new rule that
will undergo notice and comment which will result in a final
replacement rule for CAIR. In the meantime, EPA is implementing CAIR by
approving SIP revisions that are consistent with CAIR (such as the
provisions setting state SO2 and NOX budgets for
the CAIR trading programs) in order to ``temporarily preserve'' the
environmental benefits achievable under the CAIR trading programs.

C. CAIR Cap-and-Trade Programs

    The CAIR NOX annual and ozone-season model trading rules
both largely mirror the structure of the NOX SIP Call model
trading rule in 40 CFR Part 96, subparts A through I. While the
provisions of the NOX annual and ozone-season model rules
are similar, there are some differences. For example, the
NOX annual model rule (but not the NOX ozone
season model rule) provides for a CSP, which is discussed below and
under which allowances may be awarded for early reductions of
NOX annual emissions. As a further example, the
NOX ozone season model rule

reflects the fact that the CAIR NOX ozone season trading
program replaces the NOX SIP Call trading program after the
2008 ozone season and is coordinated with the NOX SIP Call
program. The NOX ozone season model rule provides incentives
for early emissions reductions by allowing banked, pre-2009
NOX SIP Call allowances to be used for compliance in the
CAIR NOX ozone-season trading program. In addition, states
have the option of continuing to meet their NOX SIP Call
requirement by participating in the CAIR NOX ozone season
trading program and including all their NOX SIP Call trading
sources in that program.
    The provisions of the CAIR SO2 model rule are also
similar to the provisions of the NOX annual and ozone season
model rules. However, the SO2 model rule is coordinated with
the ongoing Acid Rain SO2 cap-and-trade program under CAA
title IV. The SO2 model rule uses the title IV allowances
for compliance, with each allowance allocated for 2010-2014 authorizing
only 0.50 ton of emissions and each allowance allocated for 2015 and
thereafter authorizing only 0.35 ton of emissions. Banked title IV
allowances allocated for years before 2010 can be used at any time in
the CAIR SO2 cap-and-trade program, with each such allowance
authorizing 1 ton of emissions. Title IV allowances are to be freely
transferable among sources covered by the Acid Rain Program and sources
covered by the CAIR SO2 cap-and-trade program.
    EPA also used the CAIR model trading rules as the basis for the
trading programs in the CAIR FIPs. The CAIR FIP trading rules are
virtually identical to the CAIR model trading rules, with changes made
to account for Federal rather than state implementation. The CAIR model
SO2, NOX annual, and NOX ozone season
trading rules and the respective CAIR FIP trading rules are designed to
work together as integrated SO2, NOX annual, and
NOX ozone season trading programs.
    Tennessee is subject to the CAIR FIPs concerning SO2,
NOX annual, and NOX ozone season emissions and
the CAIR FIP trading programs for SO2, NOX
annual, and NOX ozone season apply to sources in Tennessee.
Consistent with the flexibility it gives to the states, the CAIR FIPs
provide that states may submit abbreviated SIP revisions that will
replace or supplement, as appropriate, certain provisions of the CAIR
FIP trading programs. The July 13, 2009, submission of Tennessee is
such an abbreviated SIP revision.

D. Applicability Provisions

    In general, the CAIR model trading rules apply to any stationary,
fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion
turbine serving at any time, since the later of November 15, 1990, or
the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 megawatt electrical (MWe) producing
electricity for sale.
    States have the option of bringing in, for the CAIR NOX
ozone season program only, those units in the state's NOX
SIP Call trading program that are not EGUs as defined under CAIR. EPA
advises states exercising this option to add the applicability
provisions in the state's NOX SIP Call trading rule for non-
EGUs to the applicability provisions in 40 CFR 96.304 in order to
include in the CAIR NOX ozone season trading program all
units required to be in the state's NOX SIP Call trading
program that are not already included under 40 CFR 96.304. Under this
option, the CAIR NOX ozone season program must cover all
large industrial boilers and combustion turbines, as well as any small
EGUs (i.e., units serving a generator with a nameplate capacity of 25
MWe or less) that the state currently requires to be in the
NOX SIP Call trading program.
    In this SIP revision, Tennessee has chosen to expand the
applicability provisions of the CAIR NOX ozone season
trading program to include all units required to be in the state's
NOX SIP Call trading program that are not already included
under 40 CFR 96.304. EPA is proposing to approve Tennessee's CAIR
NOX ozone season applicability provisions, under TAPCR 1200-
3-27-.11(2)(b)3. In addition, Tennessee has revised the definitions for
``commence commercial operation'' and ``commence operation'' in order
to support the expanded applicability. Although omitted by error from
its original request, by a submittal dated September 21, 2009,
Tennessee has requested that EPA approve Tennessee's revised
definitions. Through this action, EPA is proposing to approve
Tennessee's revised definitions, i.e., TAPCR 1200-3-27-.11(2)(a).

E. NOX Allowance Allocations

    Under the NOX allowance allocation methodology in the
CAIR model trading rules and in the CAIR FIP, NOX annual and
ozone season allowances are allocated to units that have operated for
five years, based on heat input data from a three-year period that are
adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for
oil, and 0.4 for other fuels. The CAIR model trading rules and the CAIR
FIP also provide a new unit set-aside from which units without five
years of operation are allocated allowances based on the units' prior
year emissions.
    States may establish in their SIP submissions a different
NOX allowance allocation methodology that will be used to
allocate allowances to sources in the States if certain requirements
are met concerning the timing of submission of units' allocations to
the Administrator for recordation and the total amount of allowances
allocated for each control period. In adopting alternative
NOX allowance allocation methodologies, states have
flexibility with regard to:
    1. The cost to recipients of the allowances, which may be
distributed for free or auctioned;
    2. The frequency of allocations;
    3. The basis for allocating allowances, which may be distributed,
for example, based on historical heat input or electric and thermal
output; and
    4. The use of allowance set-asides and, if used, their size.
    Consistent with the flexibility given to states in the CAIR FIPs,
Tennessee, in a SIP revision submitted to EPA on September 8, 2006,
chose to distribute CAIR NOX annual and CAIR NOX
ozone season allowances with its own methodology. That SIP revision was
approved by EPA on August 20, 2007, and became effective on October 19,
2007 (see 72 FR 46388; August 20, 2007). In today's SIP revision,
Tennessee is seeking approval of the expansion of the current
applicability provisions in the CAIR NOX ozone season
trading program to include units that are not otherwise subject to the
CAIR trading program but are subject to Tennessee's NOX SIP
Call trading program. Consistent with the expansion of the CAIR
NOX ozone season trading program applicability, Tennessee is
revising the allocation methodology provisions in the CAIR
NOX ozone season trading program to cover these units.
Tennessee's SIP revision indicates that the units that are being
brought into CAIR NOX ozone season as a result of the
expansion of the CAIR NOX ozone season trading program
applicability will be allocated allowances in the amounts specified in
the SIP.
    EPA understands, and it is explained in a revised submission by
Tennessee on September 21, 2009, that the reference to the SIP in
Tennessee's SIP revision (TAPCR 1200-3-27-.11(2)(d)2.(ii)) refers to
the allocation methodology identified in the State's NOX SIP
Call and that the Tennessee does not intend to change the allocation
methodology for these sources, just to

include it in the new rules. In addition, the allocation provisions in
section (d)1.(ii)(I) reference the ``State trading budget under part
(b)1. of this paragraph.'' However, the Tennessee State trading budgets
are now located in part ``TAPCR 1200-3-27-.11(2)(c)1.'' Tennessee has
identified the reference to the ``State budget under part (b)1.'' as a
typographical error and explained that the reference should instead be
to the ``State trading budget under part (c)1. of this paragraph'' in a
letter dated September 24, 2009.
    Finally, the Tennessee revision under TAPCR 1200-3-
27-.11(2)(d)2.(iii) refers to CAIR NOX ozone season units
identified in ``part (2)(b)2. of this rule'' that do not yet have a
baseline heat input. Since it is Tennessee's intention to describe the
procedure for allocating CAIR NOX ozone season allowances to
units that are being brought into the CAIR NOX ozone season
trading program from the NOX Budget Trading Program under
TAPCR 1200-3-27-.11(2)(b)3., Tennessee has clarified in a letter dated
September 24, 2009, that the reference to units identified in ``part
(2)(b)2.'' is a typographical error and should instead reference units
identified in ``part (2)(b)3.'' EPA is proposing to approve Tennessee's
allocation procedures under TAPCR 1200-3-27-.11(2)(d), as explained and
clarified in the September 24, 2009, letter.

F. Individual Opt-in Units

    The opt-in provisions allow for certain non-EGUs (i.e., boilers,
combustion turbines, and other stationary fossil-fuel-fired devices)
that do not meet the applicability criteria for a CAIR trading program
to participate voluntarily in (i.e., opt into) the CAIR trading
program. A non-EGU may opt into one or more of the CAIR trading
programs. In order to qualify to opt into a CAIR trading program, a
unit must vent all emissions through a stack and be able to meet
monitoring, recordkeeping, and recording requirements of 40 CFR part
75. The owners and operators seeking to opt a unit into a CAIR trading
program must apply for a CAIR opt-in permit. If the unit is issued a
CAIR opt-in permit, the unit becomes a CAIR unit, is allocated
allowances, and must meet the same allowance-holding and emissions
monitoring and reporting requirements as other units subject to the
CAIR trading program. The opt-in provisions provide for two
methodologies for allocating allowances for opt-in units, one
methodology that applies to opt-in units in general and a second
methodology that allocates allowances only to opt-in units that the
owners and operators intend to repower before January 1, 2015.
    In an earlier SIP revision approved by EPA on August 20, 2007,
Tennessee chose to allow non-affected units meeting certain
requirements to participate in the CAIR NOX annual trading
program, CAIR NOX Ozone Season Trading program and CAIR
SO2 Trading Program by adopting by reference EPA's model
rule provisions for opt-in units in 40 CFR part 96, subpart II, subpart
III and subpart IIII, respectively. In adopting by reference the CAIR
opt-in provisions, Tennessee had included in its rule a full written
version of those provisions, which contained some technical errors, and
did not specifically reference the CAIR model rule provisions related
to opt-in units in other subparts of the CAIR model trading rules.
Because Tennessee intended to adopt entirely the CAIR model rule opt-in
provisions and because Tennessee indicated that it would correct the
minor errors in the rule text, in the August 20, 2007, approval, EPA
interpreted the Tennessee provisions as substantively identical to the
CAIR model rule opt-in. As a result, the opt-in provisions in the CAIR
FIP trading programs apply to units in Tennessee. In this SIP revision,
Tennessee submitted corrections to the CAIR NOX Ozone Season
rule that had been identified in the earlier submittal approved by EPA
on August 20, 2007. Today, EPA is proposing to approve those
corrections to the CAIR NOX Ozone Season trading program
opt-in provisions.

VI. Proposed Action

    EPA is proposing to approve Tennessee's SIP revision that includes
an abbreviated CAIR SIP submitted on July 13, 2009, and revised
September 21, 2009, as clarified herein. Tennessee is covered by the
CAIR FIPs which require participation in the EPA administered CAIR FIP
cap and trade programs for SO2, NOX annual, and
NOX ozone season emissions. Under this SIP revision and
consistent with the flexibility given to the states in the FIPs, EPA is
proposing to approve Tennessee's CAIR NOX ozone season
provisions expanding the current applicability provisions in the CAIR
NOX ozone season trading program to include units that are
not otherwise subject to the trading program but are subject to
Tennessee's NOX Budget Trading Program; revisions to the
allocation methodology provisions (interpreted as discussed above) in
the CAIR NOX ozone season trading program to cover these
units; and corrections to the CAIR NOX Ozone season trading
program opt-in provisions (as discussed above).
    As provided for in the CAIR FIPs, the provisions in the abbreviated
SIP revision will replace or supplement the corresponding provisions of
the CAIR FIPs in Tennessee. The abbreviated SIP revision meets the
applicable requirements in 40 CFR 51.123(ee), with regard to
NOX ozone season emissions. EPA is not making any changes to
the CAIR FIP, but is amending the appropriate appendices to note EPA's
approval of Tennessee's SIP revision.
    This action also approves the termination of the State's
NOX Budget Trading Program as discussed in Section I.

VII. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
proposed action merely approves state law as meeting Federal
requirements and does not impose additional requirements beyond those
imposed by State law. For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because

application of those requirements would be inconsistent with the CAA;
and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Electric
utilities, Intergovernmental relations, Incorporation by reference,
Carbon monoxide, Nitrogen oxides, Ozone, Particulate matter, Reporting
and recordkeeping requirements, Sulfur dioxide.

40 CFR Part 97

    Environmental protection, Air pollution control, Electric
utilities, Intergovernmental relations, Incorporation by reference,
Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur dioxide.

    Dated: October 5, 2009.
Beverly H. Banister,
Acting Regional Administrator, Region 4.
[FR Doc. E9-24705 Filed 10-13-09; 8:45 am]

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[Federal Register: December 4, 2009 (Volume 74, Number 232)]
[Notices]
[Page 63818-63819]
[DOCID:fr04de09-127]

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DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

Proposed Modification of the Atlanta, GA, Class B Airspace Area;
Public Meetings

AGENCY: Federal Aviation Administration (FAA), DOT.

ACTION: Notice of meetings.

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SUMMARY: This notice announces four fact-finding informal airspace
meetings to solicit information from airspace users and others,
concerning a proposal to revise Class B airspace at Atlanta, GA. The
purpose of these meetings is to provide interested parties an
opportunity to present views, recommendations, and comments on the
proposal. All comments received during these meetings will be
considered prior to any issuance of a notice of proposed rulemaking.

DATES: The informal airspace meetings will be held on Monday, February
22, 2010; Thursday, February 25, 2010; Monday, March 1, 2010; and
Thursday, March 4, 2010. All meetings will run from 3 p.m. until 8:30
p.m. Comments must be received on or before April 3, 2010.

ADDRESSES: (1) The meeting on Monday, February 22, 2010, will be held
at the Cobb Co. PD, Precinct 1, 2380 North Cobb Parkway, Kennessaw, GA
30152 [Call<PHONE_NUMBER> for directions]; (2) The meeting on Thursday,
February 25, 2010, will be held at the City of Covington City Hall,
2116 Stallings Street NW., Covington, GA 30014 [Call<PHONE_NUMBER> for
directions]; (3) The meeting on Monday, March 1, 2010, will be held at
the Chamblee Civic Center, 3540 Broad Street, Chamblee, GA 30341 [Call
770-986-5016 for directions]; and (4) the meeting on Thursday, March 4,
2010, will be held at Peachtree City Falcon Field, 7 Falcon Drive,
Peachtree City, GA 30269 [Call<PHONE_NUMBER> for directions].
    Comments: Send comments on the proposal, in triplicate, to: Mark
Ward, Manager, Operations Support Group, Eastern Service Area, Air
Traffic Organization, Federal Aviation Administration, P.O. Box 20636,
Atlanta, GA 30320.

FOR FURTHER INFORMATION CONTACT: Mike Richardson, Support Manager,
Atlanta TRACON, 784 South Highway 74, Peachtree City, GA; telephone:
(678) 364-6306.

SUPPLEMENTARY INFORMATION:

Meeting Procedures

    (a) The meetings will be informal in nature and will be conducted
by one or more representatives of the FAA Eastern Service Area. A
representative from the FAA will present a briefing on the planned
Class B airspace area modification. Each participant will be given an
opportunity to deliver comments or make a presentation, although a time
limit may be imposed. Only comments concerning the plan to modify the
Atlanta Class B airspace will be accepted.
    (b) The meetings will be open to all persons on a space-available
basis. There will be no admission fee or other charge to attend and
participate.
    (c) Any person wishing to make a presentation to the FAA panel will
be asked to sign in and estimate the amount of time needed for such
presentation. This will permit the panel to allocate an appropriate
amount of time for each presenter. These meetings will not be adjourned
until everyone on the list has had an opportunity to address the panel.
    (d) Position papers or other handout material relating to the
substance of these meetings will be accepted. Participants wishing to
submit handout material should present an original and two copies (3
copies total) to the presiding officer. There should be additional
copies of each handout available for other attendees.
    (e) These meetings will not be formally recorded. However, a
summary of comments made at the meetings will be filed in the docket.

Agenda for the Meetings

--Sign-in.
--Presentation of Meeting Procedures.
--Informal Presentation of the planned Class B Airspace area
Modification.
--Public Presentations and Discussions.
--Closing Comments.

    At all meetings, the informal presentation will be conducted at 3
p.m., 5 p.m., and again at 7 p.m. Each presentation will be the same,
so attendees may arrive at any time at their convenience, and it will
not be necessary to remain until the end. Following each presentation
there will be time for questions and presentations by attendees.

    Issued in Washington, DC, on November 23, 2009.
Edith V. Parish,
Manager, Airspace and Rules Group.
[FR Doc. E9-28900 Filed 12-3-09; 8:45 am]

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