$15 million, with an EAV of about $4 million. At a 3-percent discount
rate, the PV of the climate benefits is estimated to be about $101
million, with an EAV of $22 million. The PV of the compliance costs,
discounted at a 7-percent rate, is estimated to be about $83 million,
with an EAV of about $20 million. At a 3-percent discount rate, the PV
of the estimated compliance costs is about $87 million, with an EAV of
about $19 million. The PV of the net benefits of this proposed rule,
discounted at a 7-percent rate, is estimated to be about -$68 million,
with an EAV of about -$17 million. At a 3-percent discount rate, the PV
of net benefits is about $14 million, with an EAV of about $3 million.
See the RIA for additional discussion on costs, benefits, and impacts.

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

    This section describes the proposed amendments to the regulatory
text for the federal implementation plans and the trading program
regulations related to the proposed findings and remedy discussed
elsewhere in this document. The primary amendments to the CFR would be
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
proposed 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 program to the new Group 3
program. The existing regulations for the administrative appeal
procedures in 40 CFR part 78 would also be 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
proposed 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 VIII.C.8. 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 proposed 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 the 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. Proposed
amendments to Sec.  52.38(b)(1) would 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 proposed
amendments to Sec.  52.38(b)(2) would identify the states whose sources
would be 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 proposes to find have further good neighbor obligations
with respect to the 2008 ozone NAAQS under this rule, new Sec.
52.38(b)(2)(iv) would end the requirement to participate in the Group 2
trading program after the 2020 control period and new Sec.
52.38(b)(2)(v) would establish 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) would be replicated in the state-specific CFR sections for each of
the Group 3 states.\179\ 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 would be 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.\180\ A further provision would be 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 would not contain the partial-remedy language, consistent
with EPA's proposed determinations in this rule that participation in
the Group 3 trading program by a state's EGUs would constitute a full
remedy for each such state's underlying good neighbor obligation. No
changes would be made to the CFR sections for the remaining states
whose sources currently participate in the Group 2 trading

program. For these states, EPA's proposed findings in this action would
be consistent with and would 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.\181\
---------------------------------------------------------------------------

    \179\ 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).
    \180\ As discussed elsewhere in this document, EPA is proposing
to correct the approval of Kentucky's SIP revision that previously
led to removal of the partial-remedy language for that state and
instead issue a disapproval. For the remaining states, the partial-
remedy language was removed in the CSAPR Close-Out, which has been
vacated.
    \181\ 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
proposed FIPs under this rule would 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)(11), (12), and (13) would
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. To make use of the
option to submit state-determined allocations for the 2022 control
period, a state would need to notify EPA by 90 days after publication
of the final rule of its intent to submit to EPA by 180 days after
publication a state-approved spreadsheet setting forth the allocations.
To modify or replace the FIP with an abbreviated or full SIP affecting
2023 or 2024 allocations, the state would need to submit a SIP revision
by December 1, 2021.
    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)(12)(i) and (ii) and (b)(13)(i) and (ii) would
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 VIII.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)(14)(ii) \182\ 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.
---------------------------------------------------------------------------

    \182\ Redesignated from Sec.  52.38(b)(10)(ii).
---------------------------------------------------------------------------

    The proposed option discussed in section VIII.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 program is set forth
in new Sec.  52.38(b)(10). This option would be generally similar to
the full SIP option under new Sec.  52.38(b)(13) for states whose
sources are already subject to the Group 3 program under a FIP. To the
extent that EPA had already commenced allocations of Group 1 or Group 2
allowances to sources in the state for future control periods, the
Group 1 or Group 2 allowances already allocated for those control
periods would be converted into Group 3 allowances under revised Sec.
97.526(c)(2) or new Sec.  97.826(c)(2).
    The principal consequences of EPA's approval of a full SIP revision
under Sec.  52.38(b) would be set forth in Sec.  52.38(14) and (15).
Revised Sec.  52.38(b)(14)(i) \183\ would provide 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)(10) or
(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)(15)(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 trading Group 1 and Group 2 trading
programs that would 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)(15)(ii),\184\ which addresses
the Group 3 trading program as well as the Group 1 and Group 2 trading
programs, would preserve 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 would also be
added to the state-specific CFR sections.
---------------------------------------------------------------------------

    \183\ Redesignated from Sec.  52.38(b)(10)(i).
    \184\ 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)(15)(iii), which identifies several
allowance-related provisions of the federal trading program regulations
that would continue to apply when the sources in a state transition to
a different federal trading program (and also would continue to apply
under an integrated state trading program). Revised Sec.
52.38(b)(15)(iii)(A) \185\ would preserve EPA's authority under Sec.
97.526(c) 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 1 trading
program to the Group 3 trading program or following any SIP revision,
adding to the provision's existing coverage with respect to conversions
of Group 1 allowances to Group 2 allowances. New Sec.
52.38(b)(15)(iii)(B) would preserve EPA's analogous authority under new
Sec.  97.826(c) with respect to conversions of Group 2 allowances to
Group 3 allowances in analogous circumstances. New Sec.
52.38(b)(15)(iii)(C) would similarly preserve EPA's authority under new
Sec.  97.811(d), concerning the proposed recall of Group 2 allowances
allocated to sources in Group 3 states for control periods after 2020,
following any SIP revision. For clarity, revisions to the state-
specific CFR sections would replicate the provisions of Sec.
52.38(b)(15)(iii) indicating that the provisions of Sec. Sec.
97.526(c), 97.826(c), and 97.811(d) would continue to apply following
the transition of a state's sources from one trading program to another
or following approval any SIP revision under Sec.  52.38(b).
---------------------------------------------------------------------------

    \185\ Redesignated from Sec.  52.38(b)(11)(ii).
---------------------------------------------------------------------------

    New Sec.  52.38(b)(17)(ii) would provide that, after the control
period in 2020, EPA would stop administering all Group 2 trading
program provisions established under SIP revisions previously approved
for Group 2 states whose sources would be required to

participate in the Group 3 program starting with the 2021 control
period.\186\
---------------------------------------------------------------------------

    \186\ The states with approved SIP revisions that would be
affected under this provision are Indiana and New York.
---------------------------------------------------------------------------

    Finally, new Sec.  52.38(b)(18) would contain 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)(16) and (b)(17)(i) \187\ for the
Group 1 and Group 2 trading programs.
---------------------------------------------------------------------------

    \187\ Redesignated from Sec.  52.38(b)(12) and (13).
---------------------------------------------------------------------------

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

    The proposed Group 3 trading program regulations would be
promulgated in a new subpart GGGGG of part 97 (40 CFR 97.1001 through
97.1035). Definitions, applicability, standard requirements, and other
general provisions would be set forth in Sec. Sec.  97.1001 through
97.1008. State budgets and allocations of allowances to individual
units would be addressed in Sec. Sec.  97.1010 through 97.1012, and
provisions concerning designated representatives would be covered in
Sec. Sec.  97.1013 through 97.1018. Management and use of allowances,
including accounts, recordation, transfers, compliance, and banking,
would be addressed in Sec. Sec.  97.1020 through 97.1028. Provisions
for monitoring, recordkeeping, and reporting would be set forth in
Sec. Sec.  97.1030 through 97.1035.
    In general, the Group 3 trading program provisions would parallel
the existing Group 2 trading program regulations in subpart EEEEE of
part 97 but would 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 would be set
forth in new Sec.  97.1010. That same section would also set forth the
amounts of the Group 3 budgets, new unit set-asides, and variability
limits that Group 1 or Group 2 states could adopt in SIP revisions that
would be approvable under new Sec.  52.38(b)(10).
    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
would begin 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 would
be four years later than the analogous Group 2 trading program
deadlines. The allowance recordation deadlines under Sec.  97.1021
would begin generally four years later than the comparable recordation
deadlines under the Group 2 trading program but would reach the same
schedule by July 1, 2023, which would be the deadline for recordation
of allowances for the control period in 2026 under both trading
programs. However, under new Sec.  97.1021(m), EPA would 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 had been completed in
accordance with new Sec.  97.811(d).
    Like the analogous Group 2 regulations, the Group 3 regulations
would allow a Group 3 allowance that was allocated to any account as a
replacement for removed 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 would be accomplished by adding references to Sec. Sec.  97.526(c)
and 97.826(c)--the sections under which the conversions would be
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).
    Any Group 3 allowances allocated based on conversion of Group 1 or
Group 2 allowances allocated for future years--specifically, the Group
3 allowances that could be allocated under Sec.  97.526(c)(2) or Sec.
97.826(c)(2) if EPA approved a SIP revision from a Group 1 or Group 2
state requiring sources in the state to participate in the Group 3
trading program--would also be treated like any other Group 3 allowance
for purposes of determining shares of responsibility for exceedances
under the assurance provisions. New paragraphs (2)(iii) and (iv) of the
definition of ``common designated representative's assurance level'' in
Sec.  97.1002 would establish this equivalence. However, allocations of
Group 3 allowances converted from banked Group 1 or Group 2 allowances
would be excluded for purposes of determining such shares of
responsibility because such converted allowances would not represent
allowances allocated from the current control period's emissions
budgets. This exclusion would be addressed in new paragraph (2)(ii) of
the definition of ``common designated representative's assurance
level'' in Sec.  97.1002.
    As is currently allowed under the Group 2 trading program, EPA has
proposed that, in order to facilitate NOX SIP Call
compliance, a state would be allowed to expand applicability of the
Group 3 trading program to include any sources that previously
participated in the NOX Budget Trading Program, and that the
state would be able to 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, EPA has also proposed that the assurance provisions would
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 would
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 would
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 would reference only such ``base'' units and
sources.
    Proposed Sec. Sec.  97.1016, 97.1018, and 97.1020(c)(1) and (5)
would 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 has proposed to amend 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 would 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 VIII.C.4., EPA has proposed to establish
three 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, would instead participate in the CSAPR NOX Ozone
Season Group 3 Trading Program.
    The first set of transitional provisions, which would be
implemented at new Sec.  97.811(d), would address the recall of Group 2
allowances previously allocated for control periods after 2020 to Group
3 sources (and other entities in Group 3 states).
    The second set of transitional provisions would address the
possibility that the effective date for the final action in this
rulemaking would fall after 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 would make 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 would
be determined under new Sec.  97.1010(d). The amount of the allocation
to each Group 3 unit would 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 proposes to apply 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 would be 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)(v) 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 third set of transitional provisions would address conversions
of Group 2 allowances (and in some instances Group 1 allowances) to
Group 3 allowances for use in the new Group 3 program. These provisions
would be implemented largely through the addition of new Sec.
97.826(c) to the Group 2 trading program regulations and revisions to
the analogous provisions in the Group 1 trading program regulations in
97.526(c). Most notably, the proposed one-time conversion of banked
2017-2020 Group 2 allowances to Group 3 allowances would be implemented
through the provisions in new Sec.  97.826(c)(1). These provisions set
forth the schedule and mechanics for a default 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
would be applied to all banked Group 2 allowances that as of the
scheduled conversion date are held in any general account and in any
compliance account for a source located in a Group 3 state but would
not be applied to allowances held in a compliance account for a source
located in a Group 2 state. The owner or operator of a source located
in a Group 2 state could retain banked Group 2 allowances for future
use in the Group 2 trading program simply by keeping the allowances in
the source's compliance account as of the conversion date or,
alternatively, could elect to have banked Group 2 allowances converted
to Group 3 allowances simply by transferring the allowances from the
source's compliance account to a general account prior to the
conversion date. The conversion factor would be the greater of 1.0000
or the ratio of the total number of banked Group 2 allowances being
converted to the sum of the variability limits (adjusted to exclude any
portion of the first ozone season before the final rule's effective
date) for all states covered by the Group 3 trading program.
    The proposed option under which the authorized account
representative for a general account could elect to prevent certain
Group 2 allowances from being included in the default conversion
process would be implemented through the provisions in new Sec.
97.826(c)(1)(iv). Under these provisions, before the scheduled date for
converting Group 2 allowances to Group 3 allowances, EPA would
establish a temporary holding account that would accept transfers of
Group 2 allowances from general accounts. Any Group 2 allowances
transferred to the temporary holding account in advance of the
scheduled conversion date would not be converted to Group 3 allowances,
and after completing the conversion procedures for other Group 2
allowances, EPA would transfer the unconverted Group 2 allowances back
to the general accounts from which the transfers into the temporary
holding account were made.
    The additional conversion provisions in Sec.  97.826(c)(2) and (3)
would apply only in instances where a Group 2 state submits and EPA
approves a SIP revision requiring sources in the state to participate
in the Group 3 trading program. In that case, under Sec.  97.826(c)(2),
EPA would replace the allocations of Group 2 allowances to the state's
sources already recorded for future control periods with allocations of
Group 3 allowances, using a conversion factor determined based on the
ratio of the state's emissions budget under the Group 2 trading program
to the state's optional emissions budget under the Group 3 trading
program. If all Group 2 states were to elect this option, following
approval of the SIP submission for the last such state, under Sec.
97.826(c)(3), EPA would convert any remaining banked Group 2 allowances
from prior control periods using a conversion factor based on the ratio
of the total number of Group 2 allowances being converted to that
state's variability limit under the Group 3 program. Allowances would
be converted under these provisions regardless of the accounts in which
they were held.
    Additional provisions of Sec.  97.826(c) would address special
circumstances. Under Sec.  97.826(c)(4), if any Group 2 allowances are
removed for conversion from the compliance account for a source in a
state not covered by the Group 3 program, the owner or operator could
identify to EPA a general account to receive the Group 3 allowances.
This provision would be necessary in such circumstances because Group 3
allowances could not be recorded in any compliance account other than a
compliance account for a source with a unit affected under the Group 3
trading program. If the owner or operator did not identify a general
account to receive

the Group 3 allowances within 180 days after the conversion, EPA would
be authorized to retire the allowances. (The provisions in new Sec.
97.826(c)(4) would not be used in the transition from the Group 2
trading program to the Group 3 trading program if, as proposed, sources
in all existing Group 2 states are either transitioned to the Group 3
trading program or continue to be covered by the Group 2 trading
program.)
    Under Sec.  97.826(c)(5), EPA would be able to group multiple
general accounts under common ownership for purposes of performing
conversion computations. Because allowances are only recorded as whole
allowances, allowance conversion computations will necessarily be
rounded to whole allowances. The purpose of the grouping provision
would be to ensure that, given rounding, the total quantities of Group
3 allowances issued would not be unduly affected by how the Group 2
allowances are distributed across multiple general accounts under
common ownership, with potentially adverse consequences to achievement
of the emission reductions required under the rule.
    There is a possibility under the Group 2 trading program that some
new Group 2 allowances could be issued after the conversions to Group 3
allowances have already taken place. Under Sec.  97.826(c)(6), EPA may
convert these allowances to Group 3 allowances as if they had been
issued and recorded before the general conversions.
    Owners and operators of Group 3 sources generally would not be able
to retain banked Group 2 allowances in the compliance accounts for
those sources. However, new Sec.  97.826(c)(7) would authorize the use
of Group 3 allowances to satisfy obligations to hold Group 2 allowances
that might arise after the conversion date, such as an obligation to
hold additional allowances because of excess emissions or for
compliance with the assurance provisions. 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.)
    Amendments addressing conversions of Group 1 allowances to Group 3
allowances in the event Georgia were to elect to join the Group 3
trading program would be reflected in proposed revisions to Sec.
97.526(c)(2) through (7). The revisions would parallel the new
provisions discussed above in Sec.  97.826(c)(2) through (7), and in
the case of 97.526(c)(4) would include changes making that provision
more similar to new Sec.  97.826(c)(4) in two ways. First, the
provision would be simplified by requiring that the account identified
to receive any otherwise unclaimed allowances must be a general
account. Identification of another compliance account would no longer
be allowed, making it possible to eliminate rule provisions
distinguishing eligible compliance accounts from ineligible compliance
accounts. (Any general account would be eligible.) Second, the
provision would be modified to authorize the Administrator to retire
any allowances that remain unclaimed 180 days after the conversion in
question, or, if later, 90 days after the date of publication of a
final rule in this action.
    Finally, in Sec.  78.1(b)(14) and (17), determinations of the EPA
Administrator under Sec. Sec.  97.526(c) and 97.826(c) 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 would be 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 VIII.C.8, EPA has proposed 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 proposal 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, would be 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 proposal to switch 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 2023 control periods
would be 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 would be 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'' would be made in Sec. Sec.  97.402, 97.502, 97.602,
97.702, and 97.802. The proposed simplifications of the assurance
provisions made possible by the changes in the new unit set-aside
provisions would be implemented through revisions to Sec. Sec.
97.425(b), 97.525(b), 97.625(b), 97.725(b), and 97.825(b). The related
extensions to the deadlines for states with approved SIP revisions to
submit to EPA any state-determined allowance allocations would be
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 VIII.C.8., EPA has proposed to replicate
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 programs. These revisions to the Texas SO2 Trading
Program regulations would be implemented at Sec.  97.902 (definitions
of ``allowance transfer deadline'' and ``common designated
representative''), 97.921(b) and (c), and 97.925(b).
    The proposed amendments that would authorize 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, would be
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 proposed amendments to correct the amounts of allowances in the
new unit set-asides to address rounding differences from earlier
amendments would be implemented in Sec. Sec.  97.410, 97.510, 97.610,
and 97.710.
    New Sec.  52.38(a)(7)(i) and (b)(15)(i) and Sec.  52.39(k)(1) would
identify the amended provisions that EPA proposes to 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 proposes to make 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
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 would clarify the definitions by relocating
certain language between them, identifying provisions that would no
longer apply after the control periods in 2023 because of the proposed
revisions to the new unit set-aside allocation procedures, and
correcting the omission of certain words in the terms ``simple cycle
combustion turbine'' and ``combined cycle combustion turbine''.
     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 ``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 would be 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 would not substantively alter
which units would receive allocations or the amounts of those
allocations. Rather, the revisions would 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 would 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 would be analogous to the references that
would be added to part 78 for the proposed 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 would
clarify the regulations.

XI. 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 proposed action would be 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
proposed action. This analysis, which is contained in the ``Regulatory
Impact Analysis for the Proposed Revised Cross-State Air Pollution Rule
Update for the 2008 Ozone NAAQS'' [EPA-452/R-15-009], is available in
the docket and is briefly summarized in Section IX of this preamble.

B. Executive Order 13771: Reducing Regulations and Controlling
Regulatory Costs

    This proposed action is expected to be an E.O. 13771 regulatory
action. Details on the estimated costs of this proposed rule can be
found in EPA's analysis of the potential costs and benefits associated
with this action.

C. Paperwork Reduction Act (PRA)

    This proposed action will not impose any new information collection
burden under the PRA. This proposed action would relocate 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 would neither change the inventory of sources subject to
information collection requirements nor change 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.

D. Regulatory Flexibility Act (RFA)

    I certify that this proposed 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 proposed
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 proposing 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
proposed rule. Details of this analysis are presented in the RIA, which
is in the public docket.

E. Unfunded Mandates Reform Act (UMRA)

    This proposed 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 we expect
the proposal 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 proposal, 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.

F. Executive Order 13132: Federalism

    This proposed action does not have federalism implications. If
finalized, this proposed 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.

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

    This proposed action has tribal implications. However, it would
neither impose substantial direct compliance costs on federally
recognized tribal governments, nor preempt tribal law.
    This action proposes to implement EGU NOX ozone season
emissions 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 proposed action may have
tribal implications if a new affected EGU is built in Indian country.
Additionally, tribes have a vested interest in how this proposed rule
would affect 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.
    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 proposal,
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 proposal 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 rule.
    EPA informed tribes of our development of this proposal through a
National Tribal Air Association--EPA air policy conference call on June
25, 2020. EPA plans to further consult with tribal officials under the
EPA Policy on Consultation and Coordination with Indian Tribes early in
the process of developing this proposed regulation to solicit
meaningful and timely input into its development. EPA will facilitate
this consultation before finalizing this proposed rule.

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

    This proposed action is not subject to E.O. 13045 because EPA does
not believe the environmental health risks or safety risks addressed by
this action present a disproportionate risk to children. This action's
health and risk assessments are contained in Chapter 5 of the
accompanying RIA.

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

    This proposal, which is a significant regulatory action under E.O.
12866, is likely to have a significant effect on the supply,
distribution, or use of energy. EPA has prepared a Statement of Energy
Effects for the proposed 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.

J. National Technology Transfer and Advancement Act (NTTAA)

    This proposed rulemaking does not involve technical standards.

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

    EPA believes the human health or environmental risk addressed by
this action will not have potential disproportionately high and adverse
human health or environmental effects on minority, low-income, or
indigenous populations.
    EPA notes that this action proposes to revise the CSAPR Update to
reduce interstate ozone transport with respect to the 2008 ozone NAAQS.
This rule uses EPA's authority in CAA section 110(a)(2)(d) (42 U.S.C.
7410(a)(2)(d)) to reduce NOX pollution that significantly
contributes to downwind ozone nonattainment or maintenance areas. As a
result, the rule will reduce exposures to ozone in the most-
contaminated areas (i.e., areas that are not meeting the 2008 ozone
NAAQS). In addition, the proposed rule separately identifies both
nonattainment areas and maintenance areas. This requirement reduces the
likelihood that areas close to the level of the standard will exceed
the current health-based standards in the future. EPA proposes to
implement these emission reductions using the CSAPR NOX
Ozone Season Group 3 program with assurance provisions.
    EPA recognizes that many environmental justice communities have
voiced concerns in the past about emission trading and the potential
for any emission increases in any location. The CSAPR NOX
Ozone Season Group 3 Trading Program in the proposed action is the
result of EPA's application of the 4-step framework to reduce
interstate ozone pollution and implement those reductions, similar to
the trading programs developed in the CSAPR (CSAPR NOX Ozone
Season Group 1 Trading Program) and modified in the CSAPR Update (CSAPR
NOX Ozone Season Group 2 Trading Program), both of which
also resulted from the application of the 4-step framework. EPA
believes that this approach used in the CSAPR and in the CSAPR Update
mitigated community concerns about emissions trading, and that this
proposal, which applies the same 4-step framework and proposes a
trading program similar to those used in the CSAPR and the CSAPR
Update, will also minimize community concerns. EPA seeks comment from
communities on this proposal (Comment C-41).
    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 travel hundreds of miles and
mix with emissions from other sources.
    It is important to note that the section of the Clean Air Act
providing authority for this proposed rule, section 110(a)(2)(D) (42
U.S.C. 7410(a)(2)(D)), unlike some other provisions, does not

dictate levels of control for particular facilities. In this proposed
action, as in the CSAPR and the CSAPR Update, sources in the trading
program may trade allowances with other sources in the same or
different states, but any emissions shifting that may occur is
constrained by an effective ceiling on emissions in each state (the
assurance level). As in the CSAPR and the CSAPR Update, assurance
provisions in the proposed rule outline the allowance surrender
penalties for failing to meet the assurance level (see section
VIII.C.2.); there are additional allowance for failing to hold an
adequate number of allowances to cover emissions.
    This approach will reduce EGU emissions in each state that
significantly contributes to downwind nonattainment or maintenance
areas with respect to the 2008 ozone NAAQS, while allowing power
companies to adjust generation as needed and ensure that the country's
electricity needs will continue to be met. As in the CSAPR and the
CSAPR Update, EPA believes that the existence of these assurance
provisions in the trading program, including the penalties imposed when
triggered, will ensure that emissions from states covered by this
proposal will stay below the level of the budget plus variability
limit.
    In addition, under this proposed rule all sources participating in
the CSAPR NOX Ozone Season Group 3 Trading Program must hold
enough allowances to cover their emissions. Therefore, if a source
emits more than its allocation in a given year, either another source
must have used less than its allocation and be willing to sell some of
its excess allowances, or the source itself had emitted less than its
allocation in one or more previous years (i.e., banked allowances for
future use).
    In summary, like the CSAPR and the CSAPR Update, this proposed rule
minimizes community concerns about localized hot spots and reduces
ambient concentrations of pollution where they are most needed by
sensitive and vulnerable populations by: Considering the science of
ozone transport to set strict state emissions budgets to reduce
significant contributions to ozone nonattainment and maintenance (i.e.,
the most polluted) areas; implementing air quality-assured trading;
requiring any emissions above the level of the allocations to be offset
by emission decreases; and imposing strict penalties for sources that
contribute to a state's exceedance of its budget plus variability
limit. In addition, it is important to note that nothing in this
proposed rule allows sources to violate their title V permit or any
other federal, state, or local emissions or air quality requirements.
    In addition, it is important to note that CAA section 110(a)(2)(D),
which addresses transport of criteria pollutants between states, 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 has already taken steps to begin informing communities of our
development of this proposal through a National Tribal Air
Association--EPA air policy conference call on June 25, 2020. EPA plans
to further consult with communities early in the process of developing
this regulation to permit them to have meaningful and timely input into
its development. EPA will facilitate this engagement before finalizing
this proposed rule.

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

    Section 307(b)(1) of the CAA indicates which federal courts of
appeals have venue for petitions of review of final actions by EPA.
This section provides, in part, that petitions for review must be filed
in the D.C. Circuit if (i) the Agency action consists of ``nationally
applicable regulations promulgated, or final action taken, by the
Administrator,'' or (ii) such action is locally or regionally
applicable, 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.'' EPA
anticipates that final action related to this proposed rulemaking will
be ``nationally applicable'' and of ``nationwide scope and effect''
within the meaning of CAA section 307(b)(1). Through this rulemaking
action, EPA interprets section 110 of the CAA, a provision which has
nationwide applicability, and thus it appears that the final action
would be based on a determination of nationwide scope and effect. In
addition, the rule would apply to 21 States. Also, the rule would be
based on a common core of factual findings and analyses concerning the
transport of 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. For these reasons, the
Administrator proposes to determine that this proposed action is of
nationwide scope and effect for purposes of CAA section 307(b)(1). If
the Administrator makes this proposed determination final, then
pursuant to CAA section 307(b) any petitions for review of any final
actions regarding the rulemaking would be filed in the D.C. Circuit
within 60 days from the date any final action is published in the
Federal Register.
    In addition, pursuant to sections 307(d)(1)(B) and 307(d)(1)(V) of
the CAA, the Administrator determines that all aspects of this proposed
action are 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).
Under CAA section 307(d)(1)(V), the provisions of section 307(d) also
apply to ``such other actions as the Administrator may determine.'' 42
U.S.C. 7407(d)(1)(V). The Agency will comply with the procedural
requirements of CAA section 307(d) in this rulemaking.

Revised Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS

List of Subjects

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: October 15, 2020.
Andrew Wheeler,
Administrator.

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

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart A--General Provisions

0
2. Amend Sec.  52.38 by:
0
a. Revising the paragraph (a) subject heading;
0
b. In paragraph (a)(1), adding a subject heading and removing
``(NOX).'' and adding in its place ``(NOX),
except as otherwise provided in this section.'';
0
c. Adding a subject heading to paragraph (a)(2);
0
d. Adding a subject 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
(a)(4)(i)(B);'', 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 2023, or by April 1 of the year following the control
period, for a control period in 2023 or thereafter; and'';
0
i. Adding a subject 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
(a)(5)(i)(B);'', 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 2023, or by April 1 of the year following the control
period, for a control period in 2023 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 subject 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 subject heading to paragraph (a)(8) introductory text;
0
q. Revising the paragraph (b) subject heading;
0
r. Revising paragraph (b)(1);
0
s. Adding a subject 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)(15)(iii) of this
section:'';
0
u. Revising paragraph (b)(2)(iii);
0
v. Adding paragraphs (b)(2)(iv) and (v);
0
w. Adding a subject 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
(b)(4)(ii)(B);'', 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 2023, or by April 1 of the year following the
control period, for a control period in 2023 or thereafter; and'';
0
bb. Adding a subject 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
(b)(5)(ii)(B);'', 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 2023, or by April 1 of the year following the
control period, for a control period in 2023 or thereafter; and'';
0
ff. In paragraph (b)(5)(vi), adding ``and'' after the semicolon at the
end of the paragraph;
0
gg. Adding a subject heading to paragraph (b)(6) introductory text and
removing ``Notwithstanding the provisions of paragraph (b)(1) of this
section, a State'' and adding in its place ``A State'';
0
hh. In paragraph (b)(6)(i), removing ``SIP revision.'' and adding in
its place ``SIP revision; and'';
0
ii. Revising paragraph (b)(6)(ii);
0
jj. Adding a subject 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
kk. Revising paragraphs (b)(8) introductory text and (b)(8)(ii);
0
ll. In paragraph (b)(8)(iii)(A)(2), removing the period at the end of
the paragraph and adding in its place a semicolon;
0
mm. In paragraph (b)(8)(iii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 5 to this paragraph
(b)(8)(iii)(B);'', adding a heading to the table, and revising the
table entry for ``2025 and any year thereafter'';
0
nn. 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 2023, or by April 1 of the year following the
control period, for a control period in 2023 or thereafter; and'';
0
oo. Adding a subject 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)'' wherever ``(b)(2)(iii)'' appears;
0
pp. Revising paragraph (b)(9)(ii);
0
qq. In paragraph (b)(9)(iii)(A)(2), removing the period at the end of
the paragraph and adding in its place a semicolon;
0
rr. In paragraph (b)(9)(iii)(B), removing ``the following dates:'' and
adding in its place ``the dates in Table 6 to this paragraph
(b)(9)(iii)(B);'', adding a heading to the table, and

revising the table entry for ``2025 and any year thereafter'';
0
ss. 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 2023, or by April 1 of the year following the
control period, for a control period in 2023 or thereafter; and'';
0
tt. In paragraph (b)(9)(vii), adding ``and'' after the semicolon at the
end of the paragraph;
0
uu. Revising paragraphs (b)(10) and (11);
0
vv. Redesignating paragraphs (b)(12) and (13) as paragraphs (b)(16) and
(17), respectively, and adding new paragraphs (b)(12) through (15), and
further redesignating newly redesignated paragraphs (b)(17)
introductory text and (b)(17)(i) through (iv) as paragraphs (b)(17)(i)
introductory text and (b)(17)(i)(A) through (D), respectively;
0
ww. Adding a subject headings to newly redesignated paragraphs (b)(16)
introductory text and (b)(17) introductory text;
0
xx. In newly redesignated paragraph (b)(17)(i)(D), adding ``or (iv)''
after ``(b)(2)(iii)''; and
0
yy. Adding paragraphs (b)(17)(ii) and (b)(18).
    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 purposes of
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
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 allocating CSAPR NOX
Annual allowances from new unit set-asides (except where the State
allocates or auctions such 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 CSAPR NOX Annual
allowances allocated in accordance with Sec.  97.411(a) or Sec.
97.412(a) of this chapter or allocated or auctioned under an approved
SIP revision 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, 2018, 2019, and 2020 only, except as provided in
paragraph (b)(15)(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.
------------------------------------------------------------------------

* * * * *
    (6) Full SIP revisions to voluntarily join the CSAPR NOX Ozone
Season Group 2 Trading Program. * * *
* * * * *
    (ii) Following promulgation of an approval by the Administrator of
such a SIP revision, the provisions of the SIP revision will apply to
sources in the State with regard to emissions occurring in the control
period that begins May 1 immediately after promulgation of such
approval, or such later control period as may be adopted by the State
in its regulations and approved by the Administrator in the SIP
revision, and in each subsequent control period, except as provided in
paragraph (b)(15) of this section.
    (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) Full SIP revisions to voluntarily join the CSAPR NOX Ozone
Season Group 3 Trading Program. A State listed in paragraph (b)(2)(i)
or (iii) 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)(i), and (b)(3) and (4) of this section or
paragraphs (b)(1), (b)(2)(iii), and (b)(7) and (8) of this section, as
applicable, 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, subject to the following requirements
and exceptions:
    (i) The provisions of paragraphs (b)(13)(i) through (viii) of this
section apply to any such SIP revision; and
    (ii) Following promulgation of an approval by the Administrator of
such a SIP revision, the provisions of the SIP revision will apply to
sources in the State with regard to emissions occurring in the control
period that begins May 1 immediately after promulgation of such
approval, or such later control period as may be adopted by the State
in its regulations and approved by the Administrator in the SIP
revision, and in each subsequent control period, except as provided in
paragraph (b)(15) of this section.
    (11) 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 [DATE 60 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN
THE FEDERAL REGISTER], 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)(11)(i) through (iv) of this
section by [DATE 180 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE
IN THE FEDERAL REGISTER]; and

    (B) The State must submit to the Administrator a complete SIP
revision described in paragraph (b)(11)(v)(A) of this section by [DATE
180 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE FEDERAL
REGISTER].
    (12) 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)(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; 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)(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)(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)(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 7 to
this paragraph (b)(12)(iii)(B);

                  Table 7 to Paragraph (b)(12)(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)(12)(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, Sec.
97.526(c) of this chapter, or Sec.  97.826(c) of this chapter;
    (iv) Provided that the State must submit a complete SIP revision
meeting the requirements of paragraph (b)(12)(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)(12)(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)(12)(i), (ii), or (iii) of this
section.
    (13) 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)(11) and (12) 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)(13)(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)(13)(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)(13)(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)(13)(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)(13)(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 (b)(13)(iii)(B);

                  Table 8 to Paragraph (b)(13)(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)(13)(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, Sec.
97.526(c) of this chapter, or Sec.  97.826(c) of this chapter;

    (iv) 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 CSAPR NOX Ozone Season Group 3 allowance
allocation or auction provisions adopted under paragraph (b)(13)(iii)
of this section;
    (v) May substitute the name of the State for the term ``State'' as
used in subpart GGGGG of part 97 of this chapter, to the extent the
Administrator determines that such substitutions do not make
substantive changes in the provisions in Sec. Sec.  97.1002 through
97.1035 of this chapter; and
    (vi) Must not include any of the requirements imposed on any unit
in Indian country within the borders of the State in the provisions in
Sec. Sec.  97.1002 through 97.1035 of this chapter and must not include
the provisions in Sec. Sec.  97.1011(b)(2) and (c)(5)(iii), 97.1012(b),
and 97.1021(h) and (j) of this chapter, all of which provisions will
continue to apply under any portion of the CSAPR Federal Implementation
Plan that is not replaced by the SIP revision;
    (vii) Provided that, if and when any covered unit is located in
Indian country within the borders of the State, the Administrator may
modify his or her approval of the SIP revision to exclude the
provisions in Sec. Sec.  97.1002 (definitions of ``base CSAPR
NOX Ozone Season Group 3 source'', ``base CSAPR
NOX Ozone Season Group 3 unit'', ``common designated
representative'', ``common designated representative's assurance
level'', and ``common designated representative's share''),
97.1006(c)(2), and 97.1025 of this chapter and the portions of other
provisions of subpart GGGGG of part 97 of this chapter referencing
these sections and may modify any portion of the CSAPR Federal
Implementation Plan that is not replaced by the SIP revision to include
these provisions; and
    (viii) Provided that the State must submit a complete SIP revision
meeting the requirements of paragraphs (b)(13)(i) through (vi) 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)(13)(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)(13)(i), (ii), or (iii) of this section.
    (14) Withdrawal of CSAPR FIP provisions relating to NOX ozone
season emissions. Following promulgation of an approval by the
Administrator of a State's SIP revision as correcting the SIP's
deficiency that is the basis for the CSAPR Federal Implementation Plan
set forth in paragraphs (b)(1), (b)(2)(i), and (b)(3) and (4) of this
section, paragraphs (b)(1), (b)(2)(iii) or (iv), and (b)(7) and (8) of
this section, or paragraphs (b)(1), (b)(2)(v), and (b)(11) and (12) of
this section for sources in the State--
    (i) Except as provided in paragraph (b)(15) of this section, the
provisions of paragraph (b)(2)(i), (iii), (iv), or (v) of this section,
as applicable, will no longer apply to sources in the State, unless the
Administrator's approval of the SIP revision is partial or conditional,
and will continue to apply to sources in any Indian country within the
borders of the State, provided that if the CSAPR Federal Implementation
Plan was promulgated as a partial rather than full remedy for an
obligation of the State to address interstate air pollution, the SIP
revision likewise will constitute a partial rather than full remedy for
the State's obligation unless provided otherwise in the Administrator's
approval of the SIP revision; and
    (ii) For a State listed in Sec.  51.121(c) of this chapter, the
State's adoption of the regulations included in such approved SIP
revision will satisfy with regard to the sources subject to such
regulations, including any sources made subject to such regulations
pursuant to paragraph (b)(9)(ii) or (b)(13)(ii) of this section, the
requirement under Sec.  51.121(r)(2) of this chapter for the State to
revise its SIP to adopt control measures with regard to such sources,
provided that the Administrator and the State continue to carry out
their respective functions under such regulations.
    (15) Continued applicability of certain federal trading program
provisions for NOX ozone season emissions. (i) Notwithstanding the
provisions of paragraph (b)(14)(i) of this section or any State's SIP,
when carrying out the functions of the Administrator under any State
CSAPR NOX Ozone Season Group 1 Trading Program or State
CSAPR NOX Ozone Season Group 2 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 BBBBB of part 97 of this chapter, as amended, or
subpart EEEEE 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.  97.502 of this chapter or Sec.  97.802
of this chapter;
    (B) The provisions in Sec.  97.510(a) of this chapter concerning
the amounts of the new unit set-asides;
    (C) The provisions in Sec. Sec.  97.511(b)(1) and 97.512(a) of this
chapter or Sec. Sec.  97.811(b)(1) and 97.812(a) of this chapter
concerning the procedures for allocating CSAPR NOX Ozone
Season Group 1 allowances or CSAPR NOX Ozone Season Group 2
allowances from new unit set-asides (except where the State allocates
or auctions such allowances under an approved SIP revision);
    (D) The provisions in Sec.  97.511(c)(5) of this chapter or Sec.
97.811(c)(5) of this chapter concerning the disposition of incorrectly
allocated CSAPR NOX Ozone Season Group 1 allowances or CSAPR
NOX Ozone Season Group 2 allowances;
    (E) The provisions in Sec.  97.521(f), (g), and (i) of this chapter
or Sec.  97.821(f), (g), and (i) of this chapter concerning the
deadlines for recordation of CSAPR NOX Ozone Season Group 1
allowances or CSAPR NOX Ozone Season Group 2 allowances
allocated in accordance with Sec.  97.511(a) or Sec.  97.512(a) of this
chapter or Sec.  97.811(a) or Sec.  97.812(a) of this chapter or
allocated or auctioned under an approved SIP revision and the
provisions in paragraphs (b)(4)(ii)(B) and (C) and (b)(5)(ii)(B) and
(C) of this section or paragraphs (b)(8)(iii)(B) and (C) and
(b)(9)(iii)(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.  97.525(b) of this chapter or Sec.
97.825(b) of this chapter concerning the procedures for administering
the assurance provisions.
    (ii) Notwithstanding the provisions of paragraph (b)(6)(ii),
(b)(10)(ii), or (b)(14)(i) 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 Ozone Season Group 1 allowances under subpart BBBBB of
part 97 of this chapter, or allocations of CSAPR NOX Ozone
Season Group 2 allowances under subpart EEEEE of part 97 of this
chapter, or allocations of CSAPR NOX Ozone Season Group 3
allowances under subpart GGGGG 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, including the provisions of Sec. Sec.  97.526(c) and
97.826(c) of this chapter, shall continue to apply, unless provided
otherwise by such approval of the State's SIP revision.
    (iii) Notwithstanding any discontinuation of the applicability of
other provisions of subpart BBBBB or EEEEE of part 97 of this chapter
to the sources in a State pursuant to paragraph

(b)(2)(ii) or (iv) or (b)(14)(i) of this section, the following
provisions shall continue to apply with regard to all CSAPR
NOX Ozone Season Group 1 allowances and CSAPR NOX
Ozone Season Group 2 allowances at any time allocated to or held by any
source or other entity in the State and to all sources or other
entities, wherever located, that received or at any time hold such
allowances:
    (A) The provisions of Sec.  97.526(c)(1) through (6) of this
chapter authorizing the Administrator to remove CSAPR NOX
Ozone Season Group 1 allowances from any Allowance Management System
account where such CSAPR NOX Ozone Season Group 1 allowances
are held and to allocate and record amounts of CSAPR NOX
Ozone Season Group 2 allowances or CSAPR NOX Ozone Season
Group 3 allowances in place of any CSAPR NOX Ozone Season
Group 1 allowances that have been so removed or that have not been
initially recorded, and the provisions of Sec.  97.526(c)(7) of this
chapter authorizing the use of CSAPR NOX Ozone Season Group
2 allowances or CSAPR NOX Ozone Season Group 3 allowances to
satisfy requirements to hold CSAPR NOX Ozone Season Group 1
allowances;
    (B) The provisions of Sec.  97.826(c)(1) through (6) of this
chapter authorizing the Administrator to remove CSAPR NOX
Ozone Season Group 2 allowances from any Allowance Management System
account where such CSAPR NOX Ozone Season Group 2 allowances
are held and to allocate and record amounts of CSAPR NOX
Ozone Season Group 3 allowances in place of any CSAPR NOX
Ozone Season Group 2 allowances that have been so removed or that have
not been initially recorded, and the provisions of Sec.  97.826(c)(7)
of this chapter authorizing the use of CSAPR NOX Ozone
Season Group 3 allowances to satisfy requirements to hold CSAPR
NOX Ozone Season Group 2 allowances; and
    (C) The provisions of Sec.  97.811(d) of this chapter recalling all
allocations of CSAPR NOX Ozone Season Group 2 allowances for
control periods after 2020 to sources and other entities in States
listed in paragraph (b)(2)(iv) of this section, requiring such sources
and other entities to surrender of equal amounts of CSAPR
NOX Ozone Season Group 2 allowances allocated for the same
control periods to accomplish such recalls, authorizing the
Administrator to record the removal of such surrendered CSAPR
NOX Ozone Season Group 2 allowances from any Allowance
Management Account, and establishing potential remedies for any failure
to comply with such surrender requirements.
    (16) States with approved SIP revisions addressing the CSAPR NOX
Ozone Season Group 1 Trading Program. * * *
* * * * *
    (17) States with approved SIP revisions addressing the CSAPR NOX
Ozone Season Group 2 Trading Program. * * *
* * * * *
    (ii) Notwithstanding any provision of subpart EEEEE of part 97 of
this chapter or any State's SIP, with regard to any State listed in
paragraph (b)(2)(iv) of this section and any control period that begins
after December 31, 2020, the Administrator will not carry out any of
the functions set forth for the Administrator in subpart EEEEE of part
97 of this chapter, except Sec. Sec.  97.811(d) and 97.826(c) of this
chapter, or in any emissions trading program provisions in a State's
SIP approved under paragraph (b)(8) or (9) of this section.
    (18) States with approved SIP revisions addressing the CSAPR NOX
Ozone Season Group 3 Trading Program. The following States have SIP
revisions approved by the Administrator under paragraph (b)(10), (11),
(12), or (13) of this section:
    (i) For each of the following States, the Administrator has
approved a SIP revision under paragraph (b)(10) of this section as
correcting the SIP's deficiency that is the basis for the CSAPR Federal
Implementation Plan set forth in paragraphs (b)(1), (b)(2)(i), and
(b)(3) and (4) of this section or paragraphs (b)(1), (b)(2)(iii), and
(b)(7) and (8) of this section with regard to sources in the State (but
not sources in any Indian country within the borders of the State):
[none].
    (ii) For each of the following States, the Administrator has
approved a SIP revision under paragraph (b)(11) of this section as
replacing the CSAPR NOX Ozone Season Group 3 allowance
allocation provisions in Sec.  97.1011(a) of this chapter with regard
to the State and the control period in 2022: [none].
    (iii) For each of the following States, the Administrator has
approved a SIP revision under paragraph (b)(12) of this section as
replacing the CSAPR NOX Ozone Season Group 3 applicability
provisions in Sec.  97.1004(a) and (b) or Sec.  97.1004(a)(1) and (2)
of this chapter or the CSAPR NOX Ozone Season Group 2
allowance allocation 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: [none].
    (iv) For each of the following States, the Administrator has
approved a SIP revision under paragraph (b)(13) of this section as
correcting the SIP's deficiency that is the basis for the CSAPR Federal
Implementation Plan set forth in paragraphs (b)(1), (b)(2)(v), and
(b)(11) and (12) of this section with regard to sources in the State
(but not sources in any Indian country within the borders of the
State): [none].
0
3. Amend Sec.  52.39 by:
0
a. Adding a subject heading to paragraph (a) and removing
``(SO2).'' and adding in its place ``(SO2),
except as otherwise provided in this section.'';
0
b. Adding a subject heading to paragraph (b);
0
c. Adding a subject heading to paragraph (c);
0
d. Adding a subject heading to paragraph (d) introductory text and
removing ``Notwithstanding the provisions of paragraph (a) of this
section, a State'' and adding in its place ``A State'';
0
e. Revising paragraph (e) introductory text;
0
f. In paragraph (e)(1)(i), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
g. In paragraph (e)(1)(ii), removing ``the following dates:'' and
adding in its place ``the dates in Table 1 to this paragraph
(e)(1)(ii);'', 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 (e)(1)(iii), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2023, or by April 1 of the year following the control
period, for a control period in 2023 or thereafter; and'';
0
i. Adding a subject heading to paragraph (f) introductory text and
removing ``Notwithstanding the provisions of paragraph (a) of this
section, a State'' and adding in its place ``A State'';
0
j. In paragraph (f)(1)(i), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
k. In paragraph (f)(1)(ii), removing ``the following dates:'' and
adding in its place ``the dates in Table 2 to this paragraph
(f)(1)(ii);'', 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 (f)(1)(iii), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2023, or by April 1 of the year following the

control period, for a control period in 2023 or thereafter; and'';
0
m. In paragraph (f)(5), adding ``and'' after the semicolon at the end
of the paragraph;
0
n. Adding a subject heading to paragraph (g) introductory text and
removing ``Notwithstanding the provisions of paragraph (a) of this
section, a State'' and adding in its place ``A State'';
0
o. Revising paragraph (h) introductory text;
0
p. In paragraph (h)(1)(i), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
q. In paragraph (h)(1)(ii), removing ``the following dates:'' and
adding in its place ``the dates in Table 3 to this paragraph
(h)(1)(ii);'', 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
r. In paragraph (h)(1)(iii), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2023, or by April 1 of the year following the control
period, for a control period in 2023 or thereafter; and'';
0
s. Adding a subject heading to paragraph (i) introductory text and
removing ``Notwithstanding the provisions of paragraph (a) of this
section, a State'' and adding in its place ``A State'';
0
t. In paragraph (i)(1)(i), removing the period at the end of the
paragraph and adding in its place a semicolon;
0
u. In paragraph (i)(1)(ii), removing ``the following dates:'' and
adding in its place ``the dates in Table 4 to this paragraph
(i)(1)(ii);'', 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
v. In paragraph (i)(1)(iii), removing ``year of such control period.''
and adding in its place ``year of such control period, for a control
period before 2023, or by April 1 of the year following the control
period, for a control period in 2023 or thereafter; and'';
0
w. In paragraph (i)(5), adding ``and'' after the semicolon at the end
of the paragraph;
0
x. Adding a subject heading to paragraph (j) and removing ``Following
promulgation'' and adding in its place ``Except as provided in
paragraph (k) of this section, following promulgation'';
0
y. Revising paragraph (k); and
0
z. Adding a subject headings to paragraphs (l) introductory text and
(m) introductory text.
    The additions and revisions read as follows:

Sec.  52.39  What are the requirements of the Federal Implementation
Plans (FIPs) for the Cross-State Air Pollution Rule (CSAPR) relating to
emissions of sulfur dioxide?

    (a) General requirements for SO2 emissions. * * *
    (b) Applicability of CSAPR SO2 Group 1 Trading Program provisions.
* * *
    (c) Applicability of CSAPR SO2 Group 2 Trading Program provisions.
* * *
* * * * *
    (d) State-determined allocations of CSAPR SO2 Group 1 allowances
for 2016. * * *
* * * * *
    (e) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR SO2 Group 1 Trading Program. A State listed in paragraph
(b) of this section may adopt and include in a SIP revision, and the
Administrator will approve, regulations replacing specified provisions
of subpart CCCCC of part 97 of this chapter for the State's sources,
and not substantively replacing any other provisions, as follows:
    (1) * * *
    (ii) * * *

                     Table 1 to Paragraph (e)(1)(ii)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR SO2 Group 1 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.
------------------------------------------------------------------------

* * * * *
    (f) Full SIP revisions adopting State CSAPR SO2 Group 1 Trading
Programs. * * *
    (1) * * *
    (ii) * * *

                     Table 2 to Paragraph (f)(1)(ii)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR SO2 Group 1 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.
------------------------------------------------------------------------

* * * * *
    (g) State-determined allocations of CSAPR SO2 Group 2 allowances
for 2016. * * *
* * * * *
    (h) Abbreviated SIP revisions replacing certain provisions of the
federal CSAPR SO2 Group 2 Trading Program. A State listed in paragraph
(c)(1) of this section may adopt and include in a SIP revision, and the
Administrator will approve, regulations replacing specified provisions
of subpart DDDDD of part 97 of this chapter for the State's sources,
and not substantively replacing any other provisions, as follows:
    (1) * * *
    (ii) * * *

                     Table 3 to Paragraph (h)(1)(ii)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR SO2 Group 2 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.
------------------------------------------------------------------------

* * * * *
    (i) Full SIP revisions adopting State CSAPR SO2 Group 2 Trading
Programs. * * *
    (1) * * *
    (ii) * * *

                     Table 4 to Paragraph (i)(1)(ii)
------------------------------------------------------------------------
  Year of the control period for which      Deadline for submission of
    CSAPR SO2 Group 2 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.
------------------------------------------------------------------------

* * * * *
    (j) Withdrawal of CSAPR FIP provisions relating to SO2 emissions. *
* *
    (k) Continued applicability of certain federal trading program
provisions for SO2 emissions. (1) Notwithstanding the provisions of
paragraph (j) of this section or any State's SIP, when carrying out the
functions of the Administrator under any State CSAPR SO2
Group 1 Trading Program or State CSAPR SO2 Group 2 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 CCCCC of part 97 of
this chapter, as amended, or subpart DDDDD of part 97 of this chapter,
as amended, with regard to the State and any source subject to such
State trading program:
    (i) The definitions in Sec.  97.602 of this chapter or Sec.  97.702
of this chapter;
    (ii) The provisions in Sec.  97.610(a) of this chapter or Sec.
97.710(a) of this chapter concerning the amounts of the new unit set-
asides;
    (iii) The provisions in Sec. Sec.  97.611(b)(1) and 97.612(a) of
this chapter or Sec. Sec.  97.711(b)(1) and 97.712(a) of this chapter
concerning the procedures for allocating CSAPR SO2 Group 1
allowances or CSAPR SO2 Group 2 allowances from new unit
set-asides (except where the State allocates or auctions such
allowances under an approved SIP revision);
    (iv) The provisions in Sec.  97.611(c)(5) of this chapter or Sec.
97.711(c)(5) of this chapter concerning the disposition of incorrectly
allocated CSAPR SO2 Group 1 allowances or CSAPR
SO2 Group 2 allowances;
    (v) The provisions in Sec.  97.621(f), (g) and (i) of this chapter
or Sec.  97.721(f), (g) and (i) of this chapter concerning the
deadlines for recordation of CSAPR SO2 Group 1 allowances or
CSAPR SO2 Group 2 allowances allocated in accordance with
Sec.  97.611(a) or Sec.  97.612(a) of this chapter or Sec.  97.711(a)
or Sec.  97.712(a) of this chapter or allocated or auctioned under an
approved SIP revision and the provisions in paragraphs (e)(1)(ii) and
(iii) and (f)(1)(ii) and (iii) of this section or paragraphs (h)(1)(ii)
and (iii) and (i)(1)(ii) and (iii) of this section concerning the
deadlines for submission to the Administrator of State-determined
allocations or auction results; and
    (vi) The provisions in Sec.  97.625(b) of this chapter or Sec.
97.725(b) of this chapter concerning the procedures for administering
the assurance provisions.
    (2) Notwithstanding the provisions of paragraph (i) of this
section, if, at the time of an approval of a State's SIP revision under
this section, the Administrator has already started recording any
allocations of CSAPR SO2 Group 1 allowances under subpart
CCCCC of part 97 of this chapter, or allocations of CSAPR
SO2 Group 2 allowances under subpart DDDDD 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.
    (l) States with approved SIP revisions addressing the CSAPR SO2
Group 1 Trading Program. * * *
* * * * *
    (m) States with approved SIP revisions addressing the CSAPR SO2
Group 2 Trading Program. * * *
* * * * *

Subpart O--Illinois

0
4. Amend Sec.  52.731 by revising paragraphs (b)(2) and (3) and adding
paragraph (b)(4) to read as follows:

Sec.  52.731  Interstate pollutant transport provisions; What are the
FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
    (b) * * *
    (2) The owner and operator of each source and each unit located in
the State of Illinois and for which requirements are set forth under
the CSAPR NOX Ozone Season Group 2 Trading Program in
subpart EEEEE of part 97 of this chapter must comply with such
requirements with regard to emissions occurring in 2017, 2018, 2019,
and 2020. The obligation to comply with such requirements will be
eliminated by the promulgation of an approval by the Administrator of a
revision to Illinois' State Implementation Plan (SIP) as correcting the
SIP's deficiency that is the basis for the CSAPR Federal Implementation
Plan (FIP) under Sec.  52.38(b)(1) and (b)(2)(iv), except to the extent
the Administrator's approval is partial or conditional, provided that
because the CSAPR FIP was

promulgated as a partial rather than full remedy for an obligation of
the State to address interstate air pollution, the SIP revision
likewise will constitute a partial rather than full remedy for the
State's obligation unless provided otherwise in the Administrator's
approval of the SIP revision.
    (3) The owner and operator of each source and each unit located in
the State of Illinois and for which requirements are set forth under
the CSAPR NOX Ozone Season Group 3 Trading Program in
subpart GGGGG of part 97 of this chapter must comply with such
requirements with regard to emissions occurring in 2021 and each
subsequent year. The obligation to comply with such requirements will
be eliminated by the promulgation of an approval by the Administrator
of a revision to Illinois' State Implementation Plan (SIP) as
correcting the SIP's deficiency that is the basis for the CSAPR Federal