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'dxd( $ Figure  1  Level 1Level 2Level 3Level 4Level 5\X[Z I&mage <=8C HKKKK !  _p&<,(`~0x `$Exxab p (#(#          (#(#H   I]XXMarketTradingForumCharge#XX I]#   ApprovedbytheInitiativeOversightCommitteeonSeptember4,2001  6   Mission:   TheMarketTradingForum(MTF)shallmakerecommendationstotheWesternRegionalAir n Partnership(WRAP)andrelatedWRAPforumsregardingemissioncontrolstrategiesfor Z stationarysources,andthedevelopmentofintegrated,marketbasedprogramsthatincludeother F sourcecategories,suchasmobileandareasources.TheMTFshallusethefollowingbroad 2 guidelines. n " 3"   32#  1  .3  0    Developinformationandsupportingdocumentationthatwillbeneededbystatesand F tribestoimplementtheprovisionsoftheAnnexinthestateandtribalimplementation 2 plans(SIPsandTIPs)in2003. 3 ݌(#(# Ќ  " 3"   32#  2  .3  0    Providestatesandtribeswiththeinformationthattheywillneedinordertomakea   decisiontodevelopaSIPorTIPundereithersection308orsection309oftheregional ! hazerule. 3݌~" (#(# Ќ  3.0  Wherepossible,useinnovative,marketbasedstrategiestoachievetheemissiongoalsfor V$" stationarysources.Considerthedevelopmentofmultipollutant,multisourcetrading B% # programsthatwillencouragethemostcosteffectiveemissionreductionstoachieve .&~!$ visibilityimprovementgoals.'j"%(#(# ! ! (Eh83" 3"   3q 2Eh  4  .3  0    Considerotherregulatoryrequirements,suchasnewsourcereviewandthedevelopment (B$' ofnewSIPsandTIPsforPM2.5toensurethatthescopeandtimingofemissioncontrol ).%( strategiesareintegratedwithcomplementaryprograms. 3q ݌*&)(#(# Ќ   ,'+  Background:   TheMarketTradingForumbeganmeetinginAugust1997todevelopthedetailsofthestationary  sourcerecommendationsoftheGrandCanyonVisibilityTransportCommission(GCVTC), t primarilytheestablishmentofemissionmilestonesforSO2andabackstopregionalcapandtrade ` programforSO2thatwouldbeimplementedifthemilestoneswerenotmetthroughvoluntary L  means. 8  InJuly1999,theEPApublishedarevisionto40CFRPart51,SubpartP,Protectionof  ` Visibility,thatacceptedtherecommendationsoftheGCVTCrecommendationsandestablished  L  requirementsforwesternstatesandtribestodevelopSIPsandTIPsbyDecember31,2003based  8  ontheserecommendations.StatesandtribesalsohavetheoptiontodevelopSIPsandTIPsusing $  differentstrategiestoimprovevisibilityatwesternClassIareasatalaterdate.Thestationary   sourceprovisionsofthisrulecontainedanadditionalrequirementtodevelopanAnnextothe   GCVTCreportbyOctober1,2000thatestablishedemissionmilestonesandthedetailsofa   backstopcapandtradeprogram.   TheWRAPsubmittedtheAnnexbyOctober1,2000,asrequiredbytherule.Theprovisionsof \ theAnnexwillneedtobeadoptedintoindividualSIPsandTIPsandsubmittedtoEPAby H December31,2003.Aplanrevisionmustthenbesubmittedin2008toaddressadditional 4 stationarysourceprovisionsforNOxandPM.  p StatesandtribesalsohavetheoptiontodevelopSIPsandTIPsusingdifferentstrategiesto H improvevisibilityatwesternClassIareas.ImplementationPlansthatarenotbasedontheGrand 4 CanyonCommissionstrategieswillbeduesometimebetween2004and2008,dependingonthe   circumstancesineacharea.    RelatedReferences   0  VoluntaryEmissionReductionProgramforMajorIndustrialSourcesofSulfurDioxide X  inNineWesternStatesandaBackstopMarketTradingProgram,anAnnextotheReport D! oftheGrandCanyonVisibilityTransportCommission,WesternRegionalAir 0"  Partnership,September29,2000.#l!(#(# 0  RecommendationsforImprovingWesternVistas,ReportoftheGrandCanyonVisibility $D # TransportCommissiontotheUnitedStatesEnvironmentalProtectionAgency,June10, %0!$ 1996.&"%(#(# 0  40CFRPart51,SubpartP,ProtectionofVisibility(#'(#(# Additionalbackgroundinformation,includingmeetingminutes,technicalmaterials,andworking |*%) draftdocumentscanbefoundontheMTFpageontheWRAPwebsite,locatedat h+&* 4 O  5  www.wrapair.org.6O  7 ^  T,'+  @-(,  StructureoftheForum   Anumberofcriticaltasksneedtobecompletedtoaddressthestationarysourcerequirementsfor  theregionalhazerule,aswellasthedevelopmentofmarketbasedstrategiestoachievethe t visibilityimprovementgoalsinthemostcosteffectivemanner.Thesetasksneedtobe ` coordinatedtoensurethatthereisconsistencywiththerecommendationsoftheGCVTCreport L  andtheAnnex,however,thetaskswillalsorequiretheinputofalargenumberofstakeholders 8  andtechnicalexperts.TheInitiativesOversightCommittee(IOC)recommendsthattheMTF $ t createanumberoftargetedworkgroupstoaddressthespecifictasksoutlinedinthisworkplan.  ` Theseworkgroupswilldevelopspecificrecommendationsunderthebroaderpolicyguidanceand  L  supervisionoftheMTF.Thefollowingtasksanddeliverablesaredividedintofunctionalgroups  8  thatwouldbeappropriateforindividualworkgroupstoaddress.Thisdiscussionofthesubject $  matterjurisdictionfortheseworkgroupsisintendedtoprovidegeneralguidance.Oncethe   workgroupsareformed,theMTFwillworkwiththeworkgroupstorefinetheirscopeofworkas   appropriate.    TasksandDeliverables  \ A.ProgramEffectivenessandIntegrationWorkgroup 4 0  1.CriticalMass.TheAnnexwasdevelopedbasedonaregionalanalysis,assumingthat  \ all9statesand211tribesintheGrandCanyonVisibilityTransportRegionwould H participateintheprogram.However,statesandtribeshavetheoptiontodevelop 4 implementationplansusingadifferentsetofstrategies.Thebenefitsoftheprogram,   includingcostsavingsandoverallvisibilityimprovementwillchangedependingonthe   numberofstatesandtribesthatchoosetoparticipateintheprogram.(#(# 0  0` (#(#(i)TheMTFshouldevaluatethegoalsoftheprogram,andprovideareporttothe  IOCthatoutlineshowthesegoalswillbeaffectedifoneormorestatesandtribes l choosenottoparticipateintheprogram.X ` (#` (# 0  0` (#(#Schedule:ThistaskshouldbecompletedbyDecember31,2001.0" ` (#` (# 0  2.RABART/GeographicEnhancements.TheSO2milestonesweredevelopedtomeet $X" therequirementsforregionalhazevisibilityimpairmentthroughabackstoptrading $D # program,inlieuofcasebycaseBARTdeterminations.Priorto2018whenBARTwill %0!$ besatisfiedforalleligibleBARTsourcesparticipatinginthe309backstopregional &"% tradingprogram,theremaybe hotspotissues,whereindividualsourcesorasmall '#& groupofsourcesuniquelyaffectvisibilityataClassIarea.Thevisibilityruleaddresses (#' thisissuethroughtheapplicationofBARTduetoreasonableattribution.Theinteraction )$( betweenthesetworequirementsinthecontextofatradingprograminlieuofBARTis |*%) referredtoasgeographicenhancements.h+&*(#(# 0  0` (#(#(i)FinalizethedraftMOUbetweenthestates,tribes,andthefederalland @-(, managerstoaddressthecircumstancesunderwhichtheFLMswoulddetermine  thatreasonablyattributablevisibilityimpairment(RAVI)isoccurringataClassI  area.ThisMOUwillbesubmittedaspartoftheimplementationplansin2003.` (#` (# 0  0` (#(#(ii)Developaprocessguidelinethatstatesandtribesmayusetodetermine ` reasonableattributionincaseswheretheFLMshavecertifiedthatRAVIis L  occurring.Thisguidelineshouldaddresstheinteractionbetweenthebackstop 8  tradingprogramthathasbeendevelopedtoaddressregionalhaze,andthehotspot $ t issuesthatarethesubjectofreasonablyattributableimpairment.Itisanticipated  ` thatthisguidelinemaybedevelopedthroughacontractwithWESTARthatis  L  currentlyunderconsiderationthroughtheNorthernAirManagersCommittee.  8  However,ifWESTARisnotavailabletodothisworkthenothermechanisms $  shouldbeexplored. ` (#` (# 0  0` (#(#Schedule:TheprocessguidelineshouldbecompletedbyMarch2002.TheMOU   shouldbecompletedbyMay2002. ` (#` (# 0  3.OtherClassIAreas.TheModelingForumisworkingonamodelofvisibility \ improvementsduetothesection309strategies.Preliminaryresultsofthemodelare H expectednearthebeginningof2002,withfinalresultsinthesummerof2002.The 4 workgroupwillneedtoreviewtheresultsofthemodelingtodeterminewhether greater  p reasonableprogressthanBARThasbeenmetforallClassIAreas.Itisanticipatedthat  \ thisworkwouldbecompletedintimetoaddressthismatterinthe2003SIPsandTIPs.H(#(# B.AllocationsWorkgroup.TheAnnexoutlinesthemethodologythatwillbeusedtoallocate   SO2allowancestoindividualsourcesifthebackstoptradingprogramistriggered.Additional   detailisneededtohelpstatesandtribesunderstandtheimpactsoftheprogramintheirarea.The  StatesandTribeswillalsoneeddetaileddocumentationtosubmitwiththeirSIPsandTIPs.  0  1.Floorleveldeterminationmethodology.Preparearecommendedfloorlevel l technologyoremissioncontrollevelforallcategoriesofsourcesthatwouldbesubjectto X  theregionalbackstoptradingprogram.Thefloorlevelrecommendationsshouldprovide D! enoughdetailtoallowconsistencywithintheregion.Initialrecommendationsforcopper 0"  smelters,electricutilities,refineries,limeplantsandcementplantsshouldbecompleted #l! byOctober1,2001.Finalrecommendationsforallcategoriesshouldbesubmittedtothe $X" WRAPattheirSpring2002meetingforapproval.$D #(#(# 0  2.Obtainfloorlevelallocationestimatesfromthetransportregionstatesandtribesby &"% March,2002.Basedontheregionalfloorlevelestimates,prepareareportthatestimates '#& allocationsforallsourcesinthetransportregion.Thisreportshouldbesubmittedtothe (#' WRAPforconsiderationattheirSpring2002meeting.)$((#(#  @-(, C.309SIPDevelopmentWorkgroup.Thefollowingdocumentsneedtobefinalizedsothat  statesandtribescanbegindevelopSIPsandTIPsundersection309oftheRHrule.  0  1.ModelRuleandMOU.TheAnnexcontainedadraftmodelruleandMOUamong t statesandtribesparticipatingintheSection309programthatoutlinethedetailsofthe ` backstoptradingprogramaswellastheinteractionthatwilloccurbetweenstatesand L  tribesintheregion.RecommendationsshouldbesubmittedtotheWRAPfor 8  considerationattheirSpring2002meeting.$ t(#(# 0  2.TribalSetAside.TheAnnexcontainsatribalsetasideof20,000tonsofSO2  L  allowances.Theprocessfordistributingtheseallowancesamongtribesneedstobe  8  defined.Recommendationsregardinghowthetribalsetasidewillfunctionwithinthe $  broadertradingprogramwillbeneededintimeforstatestoincludethisinformationin   their2003SIPs.Detailsregardingtheactualdistributionofallowancesmaynotbe   neededuntilalaterdate. (#(# D.TrackingandRecordKeepingWorkgroup.TheAnnexprovidesanoverviewofthetracking p andrecordkeepingrequirementsbothpriortoandafterthebackstopprogramhasbeentriggered. \ Additionaldetailwillbeneededinthe309SIPsandTIPs.Thefollowingdocumentationshould H besubmittedtotheWRAPforconsiderationattheirSpring2002meeting. 4 0  1.MonitoringProtocols.Detailedmonitoringprotocolsshouldbedevelopedforall  \ sourcecategoriesthataresubjecttothebackstoptradingprogramtoensurethatthe H monitoringisequivalenttotherequirementsof40CFRPart75.4(#(# 0  2.Allowanceandemissionstrackingsystem(afterprogramistriggered).Ifthebackstop   tradingprogramistriggered,anallowanceandemissionstrackingsystemwillbeneeded  todeterminecompliancewiththeprogram.Thesystemitselfdoesnotneedtobecreated  atthistime,butaframeworkisneededthatacontractorcouldthenusetobuildasystem  inthefuture.TheacidrainATSandETScouldbeusedasthestartingpointforthe l system,oranewsystemcouldbedesignedtomeettheneedsoftheWRAP.X (#(# 0  3.Newenergydevelopmentimpactsonmilestoneassumptions.Trackthedevelopment 0"  ofnewandplannedenergysources(utilities,refineries,renewableenergysources) #l! PrepareareporttosubmittotheWRAPattheirSpring2002meetingthatdescribesthe $X" SO2emissionsfromthesenewenergysources,aswellasSO2emissionchangesfrom $D # existingenergyproductionandotherindustrial.%0!$(#(# E.StationarySourceNOxandPMWorkgroup.Theworkgroupshouldprepareareport,as '#& outlinedin40CFR51.309(d)(4)(v),thataddressesstationarysourceemissionsofNOxandPM. (#' ThisreportshouldbesubmittedtotheWRAPforconsiderationbythespringof2003toallow )$( statesandtribestimetoincludethereportintheirSIP/TIPsubmittalsinDecember2003.The |*%) reportshouldaddressthefollowingitems. h+&* 0  1.Assessmentofemissionscontrolstrategies.Prepareareport,asoutlinedin40CFR @-(, 51.309(d)(4)(v)whichassessesemissioncontrolstrategiesforstationarysourceNOxand  PMandthedegreeofvisibilityimprovementthatwouldresultfromsuchstrategies.(#(# 0  2.BackstopTradingProgram.Evaluateanddiscusstheneedtoestablishmilestonesfor t NOxandPMtoavoidanynetincreaseinthesepollutantsfromstationarysourceswithin ` theGrandCanyonvisibilitytransportregion,andtosupportfuturedevelopmentand L  implementationofamultipollutant,andpossiblymultisourcemarketbasedprogram. 8  backstoptradingprogramforNOxandPM.$ t(#(# 0  0` (#(#(i)Evaluatethebenefitsandpossibledifficultiesthatwouldbeencounteredby  L  allowinginterpollutanttradingforstationarysourcestomeetthevisibility  8  improvementgoalsfortheregion.$ ` (#` (# 0  0` (#(#(ii)Evaluatethebenefitsandpossibledifficultiesthatwouldbeencounteredby   expandingthebackstoptradingprogramtoothersourcecategories,suchasarea   sourcesandmobilesources. ` (#` (# 0  3.ImpactonTribalLands.Identifypotentialeffectsthatstationarysourceemission \ reductionstrategiesforNOxandPMmayhaveontriballands,includingimpactson H economicdevelopment.Identifyanycriticaldatagapsregardingstationarysource 4 emissionsontriballands,andmakerecommendationsforaddressingthesedatagaps. p(#(# 0  4.BARTRequirementsforsection309SIPs.The2003SIP/TIPmustprovideforan H implementationplanrevisionbyDecember31,2008thatcontainsanylongtermstrategy 4 andBARTrequirementsforstationarysourcePMandNOx.Thereportin2003should   addressthepotentialforemissionreductionsthatwillbeachievedduetothe   establishmentofmilestonesandabackstoptradingprogramforSO2.(#(# 0  0` (#(#(i)ThereportshouldalsoaddresswhethertheMTFshouldconsiderthe  establishmentofmilestonesforNOxandPM,asoutlinedintask2,thatwill l achievegreaterreasonableprogressthanwouldbeachievedthroughthe X  installationandoperationofsourcespecificBART.D!` (#` (# 0  0` (#(#(ii)Ifatradingprogramisnotrecommended,thereportshouldidentifyoptions #l! andsupplybackgroundtechnicalinformationtoassiststatesandtribesinthe $X" developmentofcasebycaseBARTanalysesforNOxandPM.$D #` (#` (# 0  5.BARTRequirementsforsection308SIPs.Thereportshouldidentifyoptionsand &"% supplybackgroundtechnicalinformationtoassiststatesandtribesinthedevelopmentof '#& BARTdeterminationsforallvisibilityimpairingpollutants,asrequiredin40CFR (#' 51.308(e).)$((#(# ̀ @-(, F.Section308stationarysourcesWorkgroup.  0  1.Theworkgroupshouldprepareareportthatidentifiesstationarysourcecategoriesin  theregion,projectedemissionsfromthesecategories,emissioncontroloptionsincluding t costsandexpectedbenefits,andrecommendationsregardingtheneedforregionalcontrol ` strategiestoaddressthevisibilityimpactduetoemissionsfromthesesources.This L  reportisintendedtoprovidebackgroundinformationthatstatesandtribesmayuseto 8  determinewhetheradditionalemissionreductionstrategies,beyondthoserequiredto $ t meettherequirementsforBART,areneededtomeetthevisibilityimprovementgoalsof  ` section308oftheregionalhazerule. L (#(# 0  0` (#(#(i)Evaluatetheuseofinnovative,marketbasedsolutionstoachieveemission $  reductionsfromstationarysourcesintheregion,includingtradingprograms,clean   airinvestmentfunds,andemissionfees. ` (#` (# 0  2.ExpansionofBackstopTradingProgramtoWRAPstatesandtribesoutsideofthe   GrandCanyonTransportRegion.Makerecommendationsregardingtheexpansionofthe p regionalSO2milestonesandbackstoptradingprogramtoWRAPstatesandtribesthatare \ outsideoftheGrandCanyonvisibilitytransportregion.H(#(# 0  0` (#(#(i)EvaluatetheeffectofexpansiononthedemonstrationthattheSO2milestones  p achievegreaterreasonableprogressthanBART. \` (#` (# 0  0` (#(#(ii)Identifyanyregulatorybarriersthatwouldpreventexpansionoftheprogram.4` (#` (# Tribalissuesandcapacitydevelopment.Overarchingissuethatshouldbeaddressedbyeachof   theworkgroupsinregardstotheindividualtasks  Note:TheTribalCaucusiscurrentlyevaluatingtheissueofdatadevelopment,andthebestway  toprovidetribalinputintothevariousforumsoftheWRAP.Thislanguageisincludedasa l placeholder,andwillberevisedaspartofthisbroadertribaleffort. X  0  1.Identifytribalculturalconsiderationsthatmayaffectthecontrolofst