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UDUEUUUUUU`.-:i+003|xBU(5hCEKQW]cioAutoList11.1.1.1.1.1.1.1. 1.3#37=CIQYag1.a.i.(1)(a)(i)1)a) i)(;3$2#  0  .3  0  (EEGMSY_ekqAutoList63I.I.I.I.I.I.I.I.<4 9Z+.Courier New RegularI.(%EGMSY_ekqAutoList61I.I.I.I.I.I.I.I.(O;$0  2#  a  .3  0` (#(#(b$0  0` (#(#2#   .3  0 ` (#` (#(xir$0  0` (#(#0 ` (#` (#2#(  0  )3  0 (# (#($0  0` (#(#0 ` (#` (#0 (# (#2#(  a  )3  0h(#(#(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#2#(   )3  0h(#h(#($0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#2#  0  )3  0(#(#({$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#2#  a  )3  0p(#(#hFCEIMQUY]aAutoList2""""""""i)1)a)(UfCEKQW]cioAutoList3I.I.I.I.I.I.I.I.hEGKOSW[_cAutoList16"""""""")1)a)hEGKOSW[_cAutoList14"""""""")1)a) {EGMQW]cioAutoList17a."a.a.a.a.a.a.(EGMSY_ekqAutoList62A.A.A.A.A.A.A.A.mailto:damberg.rich@epa.gov(CEKQW]cioAutoList4A.A.A.A.A.A.A.A.hEGKOSW[_cAutoList18"""""""")1)a)`CEIMQUY]aAutoList7""""""""i)1)a)hCEIMQUY]aAutoList8""""""""i)1)a)(hCEKQW]cioAutoList91.1.1.1.1.1.1.1.(գEGMSY_ekqAutoList101.1.1.1.1.1.1.1.(EGMSY_ekqAutoList111.1.1.1.1.1.1.1.(EGMSY_ekqAutoList121.1.1.1.1.1.1.1.mailto:auby.susan@epa.gov,(O$http://www.sba.gov/size/SIC2NAICmain.html);(EGMSY_ekqAutoList131.1.1.1.1.1.1.1.(%EGMSY_ekqAutoList151.1.1.1.1.1.1.1.(%EGMSY_ekqAutoList21a.a.a.a.a.a.a.a.(5EGMSY_ekqAutoList22a.a.a.a.a.a.a.a.(UEGMSY_ekqAutoList24a.a.a.a.a.a.a.a.h EGKOSW[_cAutoList25"""""""")1)a)(uEGMSY_ekqAutoList26a.a.a.a.a.a.a.a.(UEGMSY_ekqAutoList64I.I.I.I.I.I.I.I.5I.  N($USUS.,    1    _  ҀGX6XXXRecommendationsforImprovingWesternVistas.GCVTC, F June10,1996.(.3$ !USUS.,  (eEGMSY_ekqAutoList65I.I.I.I.I.I.I.I.http://www.epa.gov/fedrgstr/.9I.(EGMSY_ekqAutoList66A.A.A.A.A.A.A.A.<6X9`(Courier New.Courier New Regular<A.(EGMSY_ekqAutoList67I.I.I.I.I.I.I.I.@I.(EGMSY_ekqAutoList68A.A.A.A.A.A.A.A.BA.  N($USUS.,    3    _  ҀX6XXXM XX6June7,2002letterfromLydia_Wegman_,EPA,toRick_Sprott_ԀandJulie F Simpson,cochairs,WRAPInitiativesOversightCommittee. , N($USUS.,    4    _  X6XXXM XX6SeememorandumfromLilyWong,EPARegion9,toDocketOAR20020076. F March2003. i N($USUS.,    5    _  X6XXXԀM XX6Foroption1,theproposalusedthebroadterm"resolution"torefer F toalltypesofemissionsreductionsresultingfromenforcementactions.<4 9Z+.Courier New Regular  N($USUS.,    7    _  ҀX6XXXM XX6ThiscommentrespondedtoEPA'squestiononhowthemilestonesshould F beadjustedwitharecommendationonwhetherallowancesshouldberetiredorconfiscated.TheEPAinterpretsthiscommentasaddressingboththemilestonesandtheallowances,whichadduptothemilestones. i) J N($USUS.,    2    _  VX6XXXԀIndianTribesaregiventheflexibilityunderEPA F regulationstosubmitimplementationplansandoptintotheprogramafterthe2003deadline.TABLE B(.(3($ !USUS.,      0  (#$  0  TABLE B<\( 9Z+&Courier RegularTABLE A<4 9Z+.Courier New Regular&0 d d z N($USUS.,    3    _  ҀwX6XXXJune7,2002letterfromLydia_Wegman_,EPA,toRick F _Sprott_ԀandJulieSimpson,cochairs,WRAPInitiativesOversightCommittee. d2J+M 0_level1  X 2( ` hp x 223  ..  5+ ` hp x 5  2G+M 0_level2   /%` ` hp x /23  ..  5+ ` hp x 5  2D+M 0_level3   ," hp x ,23  ..  5+ ` hp x 5  2A+M 0_level4  ` ) hp x )23  ..  5+ ` hp x 5  2>+M 0_level5   &hhp x &23  ..  5+ ` hp x 5  http://www.epa.gov/rpas/2;+M 0_level6   #p x #23  ..  5+ ` hp x 5  28+M 0_level7  h  p x 23  ..  5+ ` hp x 5  25+M 0_level8   pp x 23  ..  5+ ` hp x 5  22+M 0_level9    x 23  ..  5+ ` hp x 5  2JM 0_levsl1  X 2( ` hp x 223  Ԁ  5+ ` hp x 5  2GM 0_levsl2   /%` ` hp x /23  Ԁ  5+ ` hp x 5  2DM 0_levsl3   ," hp x ,23  Ԁ  5+ ` hp x 5  2AM 0_levsl4  ` ) hp x )23  Ԁ  5+ ` hp x 5  2>M 0_levsl5   &hhp x &23  Ԁ  5+ ` hp x 5  2;M 0_levsl6   #p x #23  Ԁ  5+ ` hp x 5  28M 0_levsl7  h  p x 23  Ԁ  5+ ` hp x 5  25M 0_levsl8   pp x 23  Ԁ  5+ ` hp x 5  22M 0_levsl9    x 23  Ԁ  5+ ` hp x 5  2JM 0_levnl1  X 2( ` hp x 223   5+ ` hp x 5  2GM 0_levnl2   /%` ` hp x /23   5+ ` hp x 5  2DM 0_levnl3   ," hp x ,23   5+ ` hp x 5  2AM 0_levnl4  ` ) hp x )23   5+ ` hp x 5  2>M 0_levnl5   &hhp x &23   5+ ` hp x 5  2;M 0_levnl6   #p x #23   5+ ` hp x 5  28M 0_levnl7  h  p x 23   5+ ` hp x 5  25M 0_levnl8   pp x 23   5+ ` hp x 5  22M 0_levnl9    x 23   5+ ` hp x 5     <4 9Z+.Courier New Regular(.3$ !USUS.,   ? N($USUS.,    9    _  ҀX6XXXԀThenumberofpowerplantswasobtainedfrom"Data F WorksheetsfromICFConsultingDetailingUtilityEmissionsProjections,"Item3insupplementalinformationtransmittedtoTimSmith,EPA,fromPatrickCummins,WRAP.June29,2001.Thenonutilityestimatewasobtainedfrom:TechnicalSupportDocumentation.   VoluntaryEmissionsReductionProgramforMajorIndustrialSourcesofSulfurDioxideinNineWesternStatesandaBackstopMarketTradingProgram.Section g   2.A.RevisedAppendixAforthe_Pechan_ԀReport,tableA1.#XXXX6#  N($USUS.,    4    _  |X6XXXSeememorandumfromLilyWong,EPARegion9,toDocket F OAR20020076.March2003.TABLE A<4 9Z+.Courier New Regular J N($USUS.,    5    _  X6XXXԀForoption1,theproposalusedthebroadterm F "resolution"torefertoalltypesofemissionsreductionsresultingfromenforcementactions.&c$""0 <4 9Z+.Courier New RegularTABLE B܆  N($USUS.,    6    _  X6XXXԀTheEPAinterpretstheterm"administrativerecord"in F theWRAP'scommentstorefertoinformationmadeavailablef  X  ԍinformationYg insupportoftheState'sorf  X  ԍtYg f  V  g f  V  g Tf  Wg f  Wg ribe'simplementationplansubmittaltoEPAunder40CFR51.309(d)(10).(jEGMSY_ekqAutoList60A.A.A.A.A.A.A.A.<4 9Z+.Courier New Regular  N($USUS.,    7    _  ҀX6XXXThiscommentrespondedtoEPA'squestiononhowthe F milestonesshouldbeadjustedwitharecommendationonwhetherallowancesshouldberetiredorconfiscated.TheEPAinterpretsthiscommentasaddressingboththemilestonesandtheallowances,whichadduptothemilestones.TABLE E<4 9Z+.Courier New Regular  N($USUS.,    8    _  ҀX6XXXSeenotefromLilyWong,EPARegion9,todocketOAR F 20020076,March2003.<4 9Z+.Courier New Regular<4 9Z+.Courier New Regular(9 Z6Times New Roman Regular%2A`Helv ' N($USUS.,    8    _  ҀX6XXXM XX6SeenotefromLilyWong,EPARegion9,todocketOAR20020076,March F 2003.  N($USUS.,    10    _ `   X6XXXTheEPAprovidesdocumentationoftheseestimatesina F technicalmemorandum,"SizeofPotentiallyAffectedEntitiesShouldtheWesternRegionalAirPartnershipStatesChoosetoAdoptRegulationsinAccordancewiththeDraftProposedRuleRevisingSection51.309(h)#XXXX6#X6XXX."Allen  _Basala_,EPA,October17,2001.Thismemorandumisincludedinthedocketfortoday'sfinalrule.#XXXX6#X6XXX<4 9Z+.Courier New Regular(9 Z6Times New Roman Regular ` N($USUS.,    11    _  X6XXXICFconsulting,FinalReportonRegionalEconomicImpacts F ofAnnex.TransmittedtoTimSmith,EPA/OAQPSbyPatrickCummins,WRAPCoProjectManager,June29,2001.<4 9Z+.Courier New Regular T N($USUS.,    12    _  ҀX6XXXMemorandumfromJimSoubytoStaffCouncil,State F EnvironmentalDirectorsandStateAirDirectors,"EnergyandAirQualityIssues."February23,2001.<4 9Z+.Courier New Regular  N($USUS.,    13    _  ҀX6XXXTechnicalMemorandum,"AnalysisofNewCoalFiredPower F PlantsUndertheProposedSulfurDioxideEmissionReductionMilestonesfortheNineStateGrandCanyonVisibilityTransportRegion."February22,2001.<4 9Z+.Courier New Regular  N($USUS.,    6    _  X6XXXԀM XX6TheEPAinterpretstheterm"administrativerecord"intheWRAP's F commentstorefertoinformationmadeavailablef  X  ԍinformationYg insupportoftheState'sorf  X  ԍtYg f  V  g f  V  g Tf  Wg f  Wg ribe'simplementationplansubmittaltoEPAunder40CFR51.309(d)(10).  N($USUS.,    1    _;M XX  ҀM  ;MRecommendationsforImprovingWesternVistas.GCVTC,June10,1996. i N($USUS.,    2    _  X6XXXԀM XX6IndianTribesaregiventheflexibilityunderEPAregulationsto F submitimplementationplansandoptintotheprogramafterthe2003deadline. ] N($USUS.,    9    _  ҀX6XXXԀM XX6Thenumberofpowerplantswasobtainedfrom"DataWorksheetsfromICF F ConsultingDetailingUtilityEmissionsProjections,"Item3insupplementalinformationtransmittedtoTimSmith,EPA,fromPatrickCummins,WRAP.June29,2001.Thenonutilityestimatewasobtainedfrom:TechnicalSupportDocumentation.VoluntaryEmissionsReduction  ProgramforMajorIndustrialSourcesofSulfurDioxideinNineWesternStatesandaBackstopMarketTradingProgram.Section2.A.Revised ( x AppendixAforthe_Pechan_ԀReport,tableA1.#;M  M#  N($USUS.,    10    _ `   X6XXXM XX6TheEPAprovidesdocumentationoftheseestimatesinatechnical F memorandum,"SizeofPotentiallyAffectedEntitiesShouldtheWesternRegionalAirPartnershipStatesChoosetoAdoptRegulationsinAccordancewiththeDraftProposedRuleRevisingSection51.309(h)#;M  M#M  ;M."  Allen_Basala_,EPA,October17,2001.Thismemorandumisincludedinthedocketfortoday'sfinalrule.#;M  M#M  ;M  N($USUS.,    11    _  _X6XXXM XX6ICF_Ԁconsulting,FinalReportonRegionalEconomicImpactsofAnnex. F TransmittedtoTimSmith,EPA/OAQPSbyPatrickCummins,WRAPCoProjectManager,June29,2001. s N($USUS.,    12    _  ҀX6XXXM XX6MemorandumfromJimSoubytoStaffCouncil,StateEnvironmental F DirectorsandStateAirDirectors,"EnergyandAirQualityIssues."February23,2001.  N($USUS.,    13    _  Ҁ;M XXM  ;MTechnicalMemorandum,"AnalysisofNewCoalFiredPowerPlantsUnder F theProposedSulfurDioxideEmissionReductionMilestonesfortheNineStateGrandCanyonVisibilityTransportRegion."February22,2001. !USUS.,  _  X6XXX     8>6>XXdd8vrM XX6   p    x    (   656050P    0  @ $$ENVIRONMENTALPROTECTIONAGENCY x   40_CFR_ԀPart51@@-[FRL75044](@*  RevisionstoRegionalHazeRuletoIncorporateSulfurDioxideMilestonesandBackstopEmissionsTradingProgramforNineWesternStatesandEligibleIndianTribesWithinthatGeographicArea       AGENCY: EnvironmentalProtectionAgency(EPA).  `     `   ACTION: Finalrule.    SUMMARY: Thepurposeofthisruleistorevise40_CFR_Ԁ51.309ofEPAsregional 0  hazeruletoincorporatecertainprovisionsforWesternStatesandeligibleIndianTribes. `   TheWesternRegionalAirPartnership(WRAP)submittedanAnnextothe1996reportoftheGrandCanyonVisibilityTransportCommission(_GCVTC_)toEPAonSeptember29,2000.This_submittal_Ԁwasrequiredunder40_CFR_Ԁ51.309oftheregionalhazeruleinorderfornineWesternStates(andIndianTribeswithinthesamegeographicregion)tohavetheoptionofsubmittingplansimplementingthe_GCVTC_Ԁrecommendations.TheAnnexcontainsrecommendationsforimplementingtheregionalhazeruleinnineWesternStates,includingasetofrecommendedregionalemissionsmilestones.Themilestonesaddress,forthetimeperiodbetween2003and2018,emissionsofsulfurdioxide(SO2),akeyprecursortotheformationof  fineparticlesandregionalhaze. `   OnMay6,2002,EPAproposedtoapprovetheprovisionsoftheAnnexsubmittedbytheWRAPasmeetingtherequirementsoftheregionalhazeruleandapplicablerequirementsundertheCleanAirAct(CAA),(67FR30419).Atthattime,wealsoincludedspecificproposedchangesto40_CFR_Ԁ51.309oftheregionalhazeruletoincorporaterecommendationsfromtheAnnex.Thisfinalrulewasdevelopedtakingintoaccountcommentsreceivedontheproposal. DATES: Theregulatoryamendmentsannouncedhereintakeeffecton [Insertdate60 !% daysfromdateofpublicationofthisfinalrule] . `"&  ADDRESSES: TheEPAhasestablishedanofficialpublicdocketforthisaction (#x' underDocketNo. OAR20020076 .Theofficialpublicdocketisthecollectionof #@( materialsthatisavailableforpublicviewingattheAirDocketintheEPADocketCenter,RoomB102,1301ConstitutionAve.,NW,Washington,DC.TheEPADocketCenterPublicReadingRoomisopenfrom8:30a.m.to4:30p.m.,MondaythroughFriday,excludinglegalholidays.#;M  Mc#M  ;M   '`",   \  FORFURTHERINFORMATIONCONTACT: TimSmith(telephone9195414718),Environmental (#. ProtectionAgency,AirQualityStrategiesandStandardsDivision,C50402,ResearchTrianglePark,NC27711orf  g f  g ThomasWebbf  g Ԁ(telephonef  g f  g 4159474139f  g ),EPARegion9(AIR5),75HawthorneStreet,SanFrancisco,CA94105.Internetaddresses:smith.tim@epa.govandf  g f  g webbf  g .f  g f  g thomas@epaf  g .gov.4" ,O  5  6,O  7 )Ԁ +'2  SUPPLEMENTARYINFORMATION:    TABLEOFCONTENTS  @ b (Uf83 b 3   3x2Uf  I  .3  0    GeneralInformation3x݌X$$ Ќ  b B(88b 3   32  A  .3  0    RegulatedEntities3݌ $$ Ќ   3   32  B  .3  0    HowcanIgetcopiesofthisdocumentandotherrelatedinformation?3݌$$ Ќ  b @(88Bb 3   392  II  .3  0    OverviewoftheStationarySourceSO2ReductionProgramCoveredbythisRule39d݌( x$$ Ќ  b #(88@b 3   32  C  .3  0    Whatistheregionalhazerule?3݌ @$$ Ќ   3   32  D  .3  0    WhatarethespecialprovisionsforWesternStatesandeligibleIndian    Tribesin40_CFR_Ԁ51.309oftheregionalhazerule?3݌ $$ Ќ   3   32  E  .3  0    WhatwasrequiredtobeincludedintheAnnextothe_GCVTC_Ԁreport?32݌H  $$ Ќ   3   302  F  .3  0    Whatarethenextstepsinimplementingthisprogram?30[݌` $$ Ќ   3   3,2  G  .3  0    WhattopicswerecoveredinEPA'sMay6,2002proposal?3,W݌( $$ Ќ   3   3*2  H  .3  0    Whatpubliccommentswerereceivedontheproposal?3*U݌ $$ Ќ   3   3$2  I  .3  0    Whattopicsarecoveredinthispreamble?3$O݌h $$ Ќ  b 5(U88#b  3   32U  III  .3  0    DiscussionofIssuesRaisedinCommentsontheMay6,2002Proposal3݌H $$ Ќ  b !(885b 3   3#!2  A  .3  0    GeneralandOverarchingIssues3#!N!݌$$ Ќ   3   3"2  B  .3  0    Milestones3"3"݌$$ Ќ   3   3"2  C  .3  0    AnnualProcessforDeterminingWhetheraTradingProgramisTriggered3"#݌P$$ Ќ   3   3#2  D  .3  0    RequirementsfortheBackstopTradingProgram3#$݌h$$ Ќ  f  g  3   3$2  E  .3  0    ProvisionsRelatedtoTimePeriodAfter20183$%%݌0$$ Ќ  f  g  3   3&2  F  .3  0    ProvisionsRelatedtoIndianTribes3&-&݌$$ Ќ  b 9(e88!b 3   3t'2e  IV  .3  0    StatutoryandExecutiveOrderReviews3t''݌8$$ Ќ  A.0  ExecutiveOrder12866:RegulatoryPlanningandReviewP$$ B.0  PaperworkReductionAct$$ C.0  RegulatoryFlexibilityAct$$ D.0  UnfundedMandatesReformActX$$ E.0  ExecutiveOrder13132:Federalism p$$ F.0  ExecutiveOrder13175:ConsultationandCoordinationwithIndianTribal 8 Governments $$ G.0  ExecutiveOrder13045:ProtectionofChildrenfromEnvironmentalHealthand x! SafetyRisks $$ H.0  ExecutiveOrder13211:ActionsthatSignificantlyAffectEnergySupply,  X# Distribution,orUse $$ I.0  NationalTechnologyTransferAdvancementAct!%$$ b (j889b  3   3u,2j  J  .3  0    ExecutiveOrder12898:FederalActionstoAddressEnvironmentalJusticein `"& MinorityPopulationsandLowIncomePopulations3u,,݌ $$ Ќ   3   3-2j  K  .3  0    CongressionalReviewAct3--݌#@($$ Ќ   3   3.2j  L  .3  0     I.0  GeneralInformation% *$$  A.RegulatedEntities  x    (    '`",   EntitiespotentiallyregulatedbythisactionarenineStatesintheWestern (#. UnitedStates(Arizona,California,Colorado,Idaho,Nevada,NewMexico,Oregon,UtahandWyoming)andIndianf  g f  g Tf  g ribeswithinthatsamegeographicarea.Thisaction,andanearlieractiontakenbyEPAin1999,providesf  g theseStatesandf  g f  g Tf  g ribeswithanoptionalprogramtoprotectvisibilityinfederallyprotected +'2 scenicareas.Theportionoftheprogramaddressedbytoday'sactionisaprogramforstationarysourcesofSO2,involvingasetofregionalannualemissions x milestonesfortheyearsbetween2003and2018thatwouldapplytothetotalSO2 @ emissionsfromallstationarysourcesemittingmorethan100tonsofSO2peryear. X Examplesofpotentiallyaffectedsourcescurrentlyemittingatthislevelarelistedinthefollowingtable.Examplesofregulatedentities ( x CoalfiredpowerplantsIndustrialboilersPetroleumrefineriesNaturalgasprocessingfacilitieswithsulfurrecoveryplantsCementkilnsPapermills0 p 񀀀 B.HowcanIgetcopiesofthisdocumentandotherrelatedinformation?  h    1.Docket.  TheEPAhasestablishedanofficialpublicdocketforthis H  actionunderDocketNo. OAR20020076 . Ԁ6 Theofficialpublicdocketconsistsofthe  documentsspecificallyreferencedinthisaction,anypubliccommentsreceived,andotherinformationrelatedtothisaction.Althoughapartoftheofficialdocket,thepublicdocketdoesnotincludeconfidentialbusinessinformation(CBI)orotherinformationwhosedisclosureisrestrictedbystatute. Theofficial = publicdocketisthecollectionofmaterialsthatisavailableforpublicviewingattheAirDocketintheEPADocketCenter,RoomB102,1301ConstitutionAve.,NW,Washington,DC.TheEPADocketCenterPublicReadingRoomisopenfrom8:30a.m.to4:30p.m.,MondaythroughFriday,excludinglegalholidays.ThetelephonenumberfortheReadingRoomis(202)5661744,andthetelephonenumberfortheAirDocketis(202)5661742.Areasonablefeemaybechargedforcopying.     2.ElectronicAccess.YoumayaccessthisFederalRegisterdocument -} electronicallythroughtheEPAInternetunderthe FederalRegisterlistingsat R 4: ,O  5  http://www.epa.gov/fedrgstr/6V;,Oj;  7 ;. Anelectronicversionofthepublicdocketis   availablethroughEPAselectronicpublicdocketandcommentsystem,EPADockets.YoumayuseEPADocketsat4_ L,O  5  http://www.epa.gov/edocket/6=,O*=  7 =Ԁtoviewpubliccomments, g" accesstheindexlistingofthecontentsoftheofficialpublicdocket,andtoaccessthosedocumentsinthepublicdocketthatareavailableelectronically.Althoughnotalldocketmaterialsmaybeavailableelectronically,youmaystillaccessanyofthepubliclyavailabledocketmaterialsthroughthedocketfacilityidentifiedabove.Onceinthesystem,select search,thenkeyintheappropriatedocketidentificationnumber.  $g( II.0  OverviewoftheStationarySourceSO2ReductionProgram$/ )$$ CoveredbyThisRule  % *   Thepurposeofthisruleistorevise40_CFR_Ԁ51.309oftheregionalhazeruletoincorporateadditionalprovisionstoaddressvisibilityimpairmentin16ClassIareasontheColoradoPlateau. A.Whatistheregionalhazerule?  )$/   Section169AoftheCAAestablishesanationalgoalforprotecting +o&1 visibilityinfederallyprotectedscenicareas.These"ClassI"areasinclude +7'2 nationalparksandwildernessareas.ThenationalvisibilitygoalistoremedyexistingimpairmentandpreventfutureimpairmentintheseClassIareas,consistentwiththerequirementsofsections169Aand169BoftheCAA.  Regionalhazeisatypeofvisibilityimpairmentcausedbyairpollutantsemittedbynumeroussourcesacrossabroadregion.TheEPAusesthetermregionalhazetodistinguishthistypeofvisibilityproblemfromthosewhicharemorelocalinnature.In1999,EPAissuedaregionalhazerulerequiringStatestodevelopimplementationplansthatwillmake reasonableprogresstowardthenationalvisibilitygoal,(64FR35714,July1,1999).#;M  M #M  ;MԀThefirstStateplansfor    regionalhazeareduebetween2003and2008.Theregionalhazeruleprovisionsappearat40_CFR_Ԁ51.308and40_CFR_Ԁ51.309.. B.WhatarethespecialprovisionsforWesternStatesandeligibleIndianTribes (  in40_CFR_Ԁ51.309oftheregionalhazerule?      Theregionalhazeruleat40_CFR_Ԁ51.308setsforththerequirementsforStatef  g f  g if  g mplementationf  g f  g pf  g lans(_SIPs_)undertheregionalhazeprogram.TherulerequiresStateplanstoincludevisibilityprogressgoalsforeachClassIarea,aswellasemissionsreductionsstrategiesandothermeasuresneededtomeetthesegoals.Therulealsoprovidesanoptionalapproach,describedin40_CFR_Ԁ51.309,thatmaybefollowedbythenineWesternStates(Arizona,California,Colorado,Idaho,Nevada,NewMexico,Oregon,Utah,andWyoming)thatcomprisethetransportregionanalyzedbythe_GCVTC_Ԁduringthe1990's.ThisoptionalapproachisalsoavailabletoeligibleIndianTribeswithinthisgeographicregion.Theregulatoryprovisionsat40_CFR_Ԁ51.309arebasedonthefinalreportissuedbythe_GCVTC_Ԁin1996,_#7 O#  1      _Ԁ P whichincludedanumberofrecommendedemissionsreductionsstrategies P designedtoimprovevisibilityinthe16ClassIareasontheColoradoPlateau.  Indevelopingtheregionalhazerule,EPAreceivedanumberofcommentsontheproposedruleencouragingtheAgencytorecognizeexplicitlytheworkofthe_GCVTC_.Inaddition,inJune1998,GovernorLeavittofUtahprovidedcommentstoEPAonbehalfoftheWesternGovernorsAssociation(_WGA_),furtheremphasizingthecommitmentofWesternStatestoimplementingthe_GCVTC_Ԁrecommendations.The_WGA_'scommentsalsosuggestedthetranslationofthe_GCVTC_'srecommendationsintospecificregulatorylanguage.TheEPAissuedaNoticeofAvailabilityduringthefallof1998requestingfurthercommentonthe_WGA_Ԁproposalandregulatorylanguagebaseduponthe_WGA_'srecommendations.BasedonthecommentsreceivedonthisFederalRegisternotice,EPAdevelopedtheprovisionsset `"& forthin40_CFR_Ԁ51.309thatallowthenineTransportRegionStatesandeligibleTribeswithinthatgeographicareatoimplementmanyofthe_GCVTC_Ԁrecommendationswithintheframeworkofthenationalregionalhazerule.  Theprovisionsin40_CFR_Ԁ51.309compriseacomprehensivelongtermstrategy foraddressingsourcesthatcontributetovisibilityimpairmentwithinthis '`", geographicregion.Thestrategyaddressesthetimeperiodbetweentheyear2003,2_%22K2 O#  2      _   whentheimplementationplansaredue,andtheyear2018.Theprovisionsaddressemissionsfromstationarysources,mobilesources,andareasourcessuchasemissionsfromfiresandwindblowndust.  Oneelementofthe_GCVTC_'sstrategytoaddressregionalhazeisaprogramtoreducestationarysourceemissionsofSO2.Thisprogramcallsforsettingaseries `  ofdecliningcapsonemissionsofSO2.Thesedecliningcapsonemissionsare ( x referredtoasemissionsmilestonesandprovideforareductioninSO2emissions  @ overtime.Indesigningthisprogram,the_GCVTC_Ԁintendedforthesemilestonestobereducedthroughvoluntarymeasures,butalsoincludedprovisionsforanenforceablemarketbasedprogramthatwouldserveasa"backstop"ifvoluntarymeasuresdidnotsucceed.Atthetimetheregionalhazerulewaspublished,however,itwasbroadlyrecognizedthatthespecificemissionmilestones,andthedetailsofhowboththevoluntaryandenforceablephasesoftheprogramwouldbeimplemented,werenecessaryelementsofaregulatoryprogram.Accordingly,theregionalhazerule,in40_CFR_Ԁ51.309(f),requiredthedevelopmentofan"Annex"tothereportofthe_GCVTC_Ԁthatwouldfillinthesedetails.Theregionalhazeruleprovidedthattheoptionaffordedby40_CFR_Ԁ51.309wouldonlybeavailableifanAnnex,addressingthespecificrequirementsof40_CFR_Ԁ51.309(f),weresubmittedtoEPAbyOctober1,2000.TheEPArequiredthesubmissionofanAnnexbythisdatetoensurethatEPAwouldbeabletoactonitbeforetheDecember31,2003deadlinefor_SIPs_Ԁunder40_CFR_Ԁ51.309(c). C.WhatwasrequiredtobeincludedintheAnnextothe_GCVTC_Ԁreport?  8   Theregionalhazerulerequiredthe_GCVTC_Ԁ(oraregionalplanningbodyformedtoimplementtheCommissionrecommendations,suchastheWesternRegionalAirPartnership(WRAP)toproviderecommendationstofillinthedetailsfortwomainaspectsoftheprogram:0  EmissionsreductionsmilestonesforstationarysourceSO2emissionsforthe 8 years2003,2008,2013,and2018.Themilestonesmustprovidefor steadyandcontinuingemissionsreductionsforthe20032018timeperiod.Inaddition,themilestonesmustensuregreaterreasonableprogressthanwouldbeachievedbyapplicationofbestavailableretrofittechnology(BART)pursuanttosection51.308(e)(2). $$ 0  Documentationsettingforf  g thf  g Ԁthedetailsforhowamarkettradingprogramwouldbeimplementedintheeventthatvoluntarymeasuresarenotsufficienttomeettherequiredmilestones.Thisdocumentationmustincludemodelrules,memorandaofunderstanding,andotherdocumentationdescribingindetailhowemissionsreductionsprogresswillbemonitored,whatconditionswillresultintheactivationofthemarkettradingprogram,howallocationswillbeperformed,andhowtheprogramwilloperate. $$   '`",   TheEPAreceivedtheAnnexfromtheWRAPinatimelymanner,onSeptember 29,2000.TheEPArecognizesthesignificantamountofworkthatwasdevotedtodevelopingtheAnnexandwecommendtheWRAPparticipantsfortheirefforts.Under40_CFR_Ԁ51.309(f)(3),ifEPAfindsthattheAnnexmeetstherequirementsoftheregionalhazerule,EPAcommittedtorevisetheregionalhazerulebasedontheAnnextoincorporateprovisionsrequiringcompliancewiththemilestonesandbackstoptradingprogram.Alongwiththeexistingelementsof40_CFR_Ԁ51.309,thesenewprovisionswouldalsobeaddressedinthe2003_SIPs_Ԁbythe9WesternStates.   @ D.Whatarethenextstepsinimplementingthisprogram?       Today'srulemodifiestherequirementsin40_CFR_Ԁ51.309oftheregionalhazerule.Asaresult,40_CFR_Ԁ51.309providesacompleteregulatoryframeworktobeusedbyWesternStatesandTribesindevelopingregionalhazeimplementationplans.TheEPAwillcontinuetoworkcloselywiththeStatesandTribestosupporttheireffortstodevelopplansthatmeettheapplicablerequirementsoftheregionalhazerule.OnceStateandtribalplansthatmeettheapplicablerequirementsoftheregionalhazerulearereviewedandapprovedbyEPA,theywillbefederallyenforceable.   E.WhattopicswerecoveredinEPA'sMay6,2002proposal? h   TheMay6,2002proposaladdressedthefollowingtopics:  c  ci"0    TheproposedregionalSO2milestonesandWRAPsdeterminationthatthe 8 milestonesmeetthecriteriaforapprovalintheregionalhazerule.The  ] EPAreviewedtheWRAPsmethodologyfordevelopingspecificmilestonesforSO2fortheyearsbetween2003and2018.TheEPAproposedtoapprovethe  milestonesassatisfyingtherequirementsoftheregionalhazerule.TheEPAnoteditsconclusionthatthemilestonesprovidefor steadyandcontinuingemissionsreductions."TheEPAalsoproposedtoconcludethatthemilestonesprovidefor greaterreasonableprogress"thantheBARTemissionlimitsthatwouldotherwiseberequiredbytheregionalhazerule.ci3i݌ $$ Ќ  c  cl"0    Waysinwhichthemilestonesmaybeadjustedinthefuture.Theproposal " r# discussesthelimitedcircumstancesunderwhichthemilestonesmaybeadjustedinthefutureandtheproposedadministrativeprocessformakingthosechanges.cll݌ $$ Ќ  c  cn"0    ThestationarysourcesofSO2thatareincludedintheprogram.Theproposal $$t( discussedthestationarysourcesofSO2thatwouldberequiredtoparticipate $I ) intheprogram,andwhosecumulativeemissionswouldbecomparedtothemilestones.cn4n݌ $$ Ќ  )c  c`p"0    )c  cp"0    Theannualprocessfordeterminingwhetheramilestoneisexceeded,thereby &(v#- triggeringthetradingprogram.Theproposaldescribedthestepstobe (K$. followedinevaluatingemissionsdataattheState,tribalandregionallevels.ItalsodescribedamechanismbywhichStatesandTribescanactivatethetradingprogramin2013ifevidenceindicatesthatthe2018milestonewillnotbereachedwithoutsuchaction.cp5p݌(,x'2$$ Ќ  c  cnr"0    Keytradingprogramelementsthatarerequiredin_SIPs_Ԁandtribal  implementationplans(_TIPs_).Thepreamblediscussedproposedrequirements  regardingthebackstoptradingprogram,anddiscussedtradingprogramelementssuchas:issuanceofandcompliancewithallowances;emissions_quantification_Ԁprotocolsandtrackingsystem;theannualreconciliationprocess;andpenaltyprovisions.cnrr݌ $$ Ќ  c  c u"0    Statusoftheprogramafter2018.TheproposaldiscussedEPA's O  understandingofwhathappenstothemilestonesandbackstoptradingprogramatthecompletionofthefirstimplementationperiod,in2018.,c u%u݌ $$ Ќ  c  cvv"0    ,cvvv݌  $$ Ќ  ThepreambletotheMay6,2002proposaldescribedeachoftheseprogrammaticareasindetail,includingEPAsreviewoftherelevantportionoftheWRAP_submittal_. -  \  -F.Whatpubliccommentswerereceivedontheproposal?      OnMay6,2002(67FR30418),theproposedrulewaspublishedintheFederal ,|  Register.TheEPArequestedwrittencommentsontheproposalandheldapublic D hearing.ThepublichearingwasheldinPhoenix,ArizonaonJune4,2002.Atranscriptforthispublichearingisavailableinthepublicdocketfortheregulation(DocketOAR20020076).TheEPAreceivedelevenwrittencommentsonthepackage,primarilyfromWesternstakeholdergroups. G.Whattopicsarecoveredinthispreamble? ,   TheEPAhasmadeanumberofchangestotheproposedruleinresponsetothe l commentswereceived.Thecommentsontheproposalwerelimitedtoarelativelysmallsubsetofthebroadrangeoftopicsdiscussedindetailintheproposal.Accordingly,EPAbelievesthatitisnotnecessarytorepeatthecomprehensivediscussioncontainedinthepreambletotheproposal.Instead,EPAhaslimitedthediscussioninthispreambletoissuesraisedby_commenters_,andchangesmadetothefinalrulebasedonthoseissues... III.DiscussionofIssuesRaisedinCommentsontheMay6,2002Proposal/ ! / A.GeneralandOverarchingIssues0 < # 0 1.ImpactofMay24,2002AmericanCornGrowersDecision  !%   OnMay24,2002,thef  g f  g Uf  g .f  g f  g Sf  g .f  g ԀCourtofAppeals#;M  ME#M  ;Mf  g ԀfortheD.C.Circuitf  g Ԁissueda \#' decisioninAmericanCornGrowersetal.v.EPA,291F.3d1(D.C.Cir.,2002)that $$t( invalidatedpartofEPA'sregionalhazerule.BecausetheWRAPAnnexwouldbeincorporatedintotheregionalhazerule,anumberof_commenters_Ԁaskedwhetherthef  g f  g cf  g ourtsdecisionwouldhaveanimpactonthis_rulemaking_ԀregardingtheAnnex.Some_commenters_ԀrecommendedthatEPAnotproceedwiththefinalruleuntilEPAhasaddressedtheissuesraisedbythecourtregardingtheregionalhazerulein general.Incontrast,anumberof_commenters_ԀagreedwiththepositionthatEPA4 (1$. 465565 (1$. 5tookinaJune7letter7_D77X7 O#  3      _ԀthattheAnnexisfullyconsistentwiththecourt's   ruling.Anumberof_commenters_ԀrequestedthatEPAclarifyitspositionandrationaleonthisissue.TheEPAcontinuestobelievethatthedecisioninAmericanCornGrowersdoesnotinanywayaffecttheWRAPAnnexorEPAsability X toincorporatetheAnnexintoitsregionalhazerule.  InordertobetterunderstandEPAsconclusionregardingtheAnnex,EPA m  believesitishelpfultoreviewthehistoryofthe_GCVTC_ԀandtheWRAP.Inits1996reporttoEPA,the_GCVTC_Ԁrecommendedawiderangeofcontrolstrategiestoaddressregionalhaze,includingstrategiestoreduceemissionsofSO2#;M  M~#M  ;MԀfromlarge    stationarysources.Thus,the_GCVTC_Ԁspecificallyrecognizedthatstationarysourceswouldneedtobeanimportantpartofanoverallvisibilitystrategyand,inparticular,thatcontrollingsulfatesfromthesesourceswasakeystrategyforaddressinghaze.Aspartofthisoverallstrategy,the11_GCVTC_Ԁalsoconcludedthatinterimtargetsthatprovidedfor steadyandcontinuingemissionreductionsovertheentiretyoftheplanningperiodmightalsobeneeded.  In1997,EPAproposedtheregionalhazerule,andin1998,the_WGA_ԀsubmittedcommentstoEPArequestingtheadditionofspecificlanguagetotheruletoaddresstherecommendationsofthe_GCVTC_.Inthesecomments,the_WGA_ԀreemphasizedthecommitmentoftheWesterngovernorstothe_GCVTC_Ԁrecommendations.Followingpublicnoticeandanopportunitytocommentonthe_WGA_sproposal,EPAissuedthefinalregionalhazerule(64FR35714,July1,1999).In40_CFR_Ԁ51.309oftherule,EPAestablishedaspecificsetofSIPrequirementsfortheStatesandTribesthatparticipatedinthe_GCVTC_.AsEPAnotedinthepreambletotherule,theserequirementsacknowledgedandgaveeffecttothesubstantialbodyofworkalreadycompletedbythe_GCVTC_ԀandtheWRAP.  f  g f  g Oneoftherequirementsin40_CFR_Ԁ51.309addressedf  g Ԁthe_GCVTC_srecommendationthattheStatesestablishacaponregionalemissionsofSO2hh MԀ#M hh#from e stationarysources.Under40_CFR_Ԁ51.309f  g (f)f  g Ԁoftheregionalhazerule,theWRAPwasrequiredtosubmitanannextothe_GCVTC_ԀReportthatwouldcontainspecificemissionreductionmilestonesfortheyears2003,2008,2013,and2018.Thisprovisionexplicitlyreferencestherecommendationsofthe_GCVTC_Ԁfor steadyandcontinuingemissionsreductions...consistentwiththeCommissionsdefinitionofreasonableprogressanditsgoalof50to70percentreductioninemissionsofSO2between1990and2040.f  g f  g f  g f  g Ԁf  g Inthepreambletothefinalregionalhazerule,EPA  -$ explainedthattheWRAPwouldhavetotakeintoaccountfourspecificfactorsinsettingthesemilestones.Thepreamblespecificallynotedthat [_t]he_Ԁfirstfactoraffectingtheselectionofinterimmilestonesisthe_GCVTC_sdefinitionofreasonableprogress.(64FR35756).Theotherfactorslistedintheruleare:(1)theultimatetargetin2040ofa50to70percentreductioninemissionsofSO2 $ ) fromstationarysources;(2)therequirementthattheemissionscapprovideforgreaterprogressthanwouldbeachievedthroughsourcespecificBARTrequirements;and(3)thetimingofprogressassessmentandtheidentificationofmechanismstoaddressthecaseswhereemissionsexceedmilestones. '5#- Ї  Intheregionalhazerule,EPAconcludedthatthespecificSIPrequirementsin40_CFR_Ԁ51.309provideforreasonableprogresstowardthenationalvisibilitygoal.TheWRAPsplanforcappingSO2emissionsfromstationarysourcesisapart @ oftheWesternStatesandTribeslongtermstrategyforachievingreasonableprogress.Asdescribedabove,theSO2programgrewoutofthe_GCVTC_s   recommendationsformeasurestoremedyadverseimpactsonvisibility.  Some_commenters_ԀexpressedconcernsthattheWRAPsprogramforcontrollingSO2emissionsintheWest,asfurtherdefinedbytheAnnextothe_GCVTC_sReport,  @ isa BARTprovisionsubjecttotheAmericanCornGrowerscourtremand.Forseveral    reasons,EPAbelievesthatthisisnotthecase.  UndertheCAA,theBARTprovisionsrequiretheinstallationofcontroltechnologyonspecificsourcesthatwerebuiltbetween1962and1977.NothingintheAnnexrequiresspecificcontrolsonanyindividualsource.Akeycomponentof u  theAnnexsSO2programisthegoalthatallreductionscalledforbytheprogram =  remainvoluntary.Ifthereductionsareachievedthroughvoluntarymeasures,thentherewillbenorequirementsofanykind.EveniftheSO2milestonesarenot  achievedthroughvoluntaryactions,theAnnexdoesnotprovideforsourcespecificcontrols.Rather,thefailuretoachievethesemilestoneswouldtriggera backstopemissionstradingprogram.Suchaprogram,byitsverynature,doesnotdictatethatanyparticularsourceinstallcontroltechnologyorotherwisereduceitsemissions.  TheEPAalsonotesthattheAnnexcoversallstationarysourcesthatemit E morethan100tonsperyearofSO2!notjustsourcesbuiltbetween1962and1977! j andthusgoeswellbeyondthescopeofthestatutoryBARTprovisions.Forthisreason(andothersnotedabove),f  g f  g EPAbelievesf  g ԀthattheSO2programisacomponent  oftheWRAPsstrategyforensuringreasonableprogress,anaspectoftheregionalhazeprogramthatwasnotaddressedbytheAmericanCornGrowersdecision.f  g 9@*9f  g  :   TheEPAapprovedtheWRAPslongtermstrategyforaddressingvisibilityconsistentwiththebroaddiscretionaffordedStatesbysection169AandtitleIoftheCAAindevelopingstrategiestomeetreasonableprogressgoalsandnationalstandards.SeeUnionElectricCo.v.EPA,427U.S.246(1976);Trainv._NRDC_,421 / # U.S.60(1975).TheSO2program,whichcapsemissionsofSO2fromalllarge !T$ stationarysources,reflectstheWRAPStatesandTribesjudgementastooneappropriatemeansforaddressinghazeandensuringreasonableprogress.ThedecisiontolimitemissionsfromthiscategoryofsourcesiswellwithinthediscretionoftheStatesandTribes.ThecourtsdecisioninAmericanCorn $$t( Growers,whichaddressesonlytheBARTprovisions,doesnotinanywaylimitthe $I ) generalauthorityoftheStatestochooseappropriatecontrolmeasurestoensurereasonableprogress.AnysuggestionthatthedecisionrequiresStatestoundertakeasourcespecificanalysisofasourcescontributiontotheproblemofregionalhazebeforetheStatecansubjectasourcetoregulationwouldgofarbeyondtheactualholdinginthecase.  Asdiscussedabove,40_CFR_Ԁ51.309doesnotrequireparticipatingStatestoassessandimposeBARTonindividualsources.BestavailableretrofittechnologyisonlyrelevantasoneoffourfactorsthattheWRAPmustconsiderin ,^'2 establishingtheappropriateemissionreductionmilestonesforSO2!i.e.,the  levelofthecap.TheregionalhazerulerequiresthatthemilestonesintheAnnextothe_GCVTC_ԀReport mustbeshowntoprovideforgreaterreasonableprogressthanwouldbeachievedbyapplicationofbestavailableretrofittechnology(BART)pursuantto51.308(e)(2)."40_CFR_Ԁ51.309(f)(1)(_i_).ThisisnotarequirementforBART.Therequirementthatthemilestones provideforgreaterreasonableprogressthanBARTisbasedonthedecisionbyEPAtoprovideStateswiththeflexibilitytoadoptalternativemeasuresinlieuoftheBARTrequirementssetforthinstatutesolongasthesealternativemeasureswere  @  betterthanBART.See40_CFR_Ԁ51.308(e)(2).Inshort,theSO2program    describedintheregionalhazerule,asfurtherdefinedbytheAnnex,doesnotimposecontrolsonspecificsourcesbutratherensuresthatgreaterreasonableprogressismadethanwouldbethroughinstallationofsourcespecificcontrolsontheBART::sources.TheregionalhazeruleaccordinglyauthorizesStatestoachieveimprovementsinvisibilitythroughthemostcosteffectivemeasuresavailable.  TheAmericanCornGrowerscourtdecisiondidnotaddresstheprovisionsin J  theregionalhazeruleallowingStatestoadoptatradingprogramorotheralternativemeasuresinplaceofsourcespecificcontrolmeasuresforBARTsources.TheEPAfindsnothinginthecourtsdecisionthatwouldinvalidatethetradingprogramalternativetoBART,asprovidedforin40_CFR_Ԁ51.308(e)(2).Inthepreambletotheregionalhazerule,EPAsetsforththebasisforitsdecisiontoallowStatesthisflexibilityanddescribestheprocessforStatestomakeashowingthatthealternativemeasuresprovideforgreaterreasonableprogress.Significantly,nothingintheD.C.CircuitsopinionsuggeststhatsuchanalternativeisinconflictwiththerequirementsofthevisibilityprovisionsoftheCAA.AnapproachthatallowsStatestoadoptalternativemeasuresinlieuofBARTfullycomportswiththecourtsviewoftheStatesbroadauthorityinthisarea.Accordingly,theAnnexmeetstherequirementssetoutin40f  g f  g _CFR_Ԁ51f  g .309(f),andEPAbelievesthatitmayapprove;;theproposedrevisionstotheregionalhazeruleincorporatingtheemissionreductionmilestonesandothermeasuressetforthintheAnnex.<< 2.WhethertheDecember31,2003SIPDeadlineShouldbeExtended !   Under40_CFR_Ԁ5f  g 1f  g .309oftheregionalhazerule,_SIPs_Ԁfortheoptionalprogram / # forthenineWesternStatesareduebyDecember31,2003.TheEPAreceivedanumberofcommentsontheproposedrulewithrespecttothisdeadline.Four_commenters_,includingtheStateofColoradoandthreeindustrytradegroups,requestedthatEPAextendthedeadlinefor_SIPs_Ԁunder40_CFR_Ԁ51.309.One_commenter_,representinganenvironmentalorganization,recommendedthatthisdeadlineshouldnotchange.  TheprimaryargumentofthoserecommendinganextensionoftheDecember31,2003deadline,isthattheAmericanCornGrowersf  g decisioncreatesadditional 7'", uncertaintyforStatesf  g Ԁdecidf  g f  g ingf  g Ԁwhethertosubmitregionalhaze_SIPs_Ԁunder40_CFR_51.309or40_CFR_Ԁ51.308.Some_commenters_ԀrequestedthatEPAextendthedeadlinebytheamountoftimeittakestoresolvetheremandedportionsoftheregionalhazerule.Theenvironmentalgroup_commenter_Ԁopposedtotheextensionstatedthatthereisnolegalorpolicybasisforanextensionbecausethedeadlineisrequiredbytherule.Inaddition,this_commenter_f  g Ԁnotedthatf  g f  g Sf  g tateshavehad +D'2 severalyearstoprepare_SIPs_Ԁunder40_CFR_Ԁ51.309,andthatthemarketbasedalternativetoBARTisunaffectedbythecourtdecision.Finally,this_commenter_believedthatdelaysintheSIP_submittals_ԀcouldundermineEPAsfindingthatthef  g f  g 40_CFR_Ԁ51.f  g 309programconstitutesgreaterreasonableprogressthanBART. 򀀀  X   Inthefinalrule,EPAretainstheDecember31,2003deadlineforanumberofreasons.First,asnotedabove,EPAdoesnotbelievethattheAmericanCorn `  GrowersdecisionaffectstheWRAPStates'abilitytomoveforwardinimplementing 5  section40_CFR_Ԁ51.309.WhilethecourtdecisionmayaffectaState'sdecisiononwhethertf  g f  g of  g Ԁpursuetheoptionalprogramunder40_CFR_Ԁ5.309,EPAdoesnotbelievethatthisisanadequatejustificationfordelayingtheprogram.Second,EPAbelievesthatthe2003deadlineisafundamentalelementoftheoveralloptionalstrategyprovidedby40_CFR_Ԁ51.309.Thestrategywassupportableundertheregionalhazeruleinlargepartbecauseitwasanf  g earlyf  g Ԁstrategythatwouldbeinplacewellbefore_SIPs_Ԁunder40_CFR_Ԁ51.308.Thefactthatitwasreceivedearlyandcontainedcomprehensivestrategieswasan==importantpartoftherationaleforitsacceptance.TheEPAbelievesthatthelongerthestrategyisdelayedinitsimplementation,thelessvalidthisrationalebecomes.>> 3.ProceduralIssues     One_commenter_ԀstatedthatEPAcannotapprovetheAnnexbecauseofproceduralflawsrelatedto40_CFR_Ԁ51.309(f)(1)oftheregionalhazerule.The_commenter_assertedthatEPA's_rulemaking_ԀtoapprovetheAnnexisprocedurallyflawedbecauseEPAdidnotpublishtheAnnexuponitsreceipt.Additionally,the_commenter_ԀnotesthatEPAdidnotamendtheregionalhazerulewithin1yearafterreceiptoftheAnnex. p #;M  M#=M  ;MTheEPAdisagreeswiththeassertionsthatthis_rulemaking_Ԁis j procedurallyflawed.TheEPApublishedaNoticeofAvailabilityinthe#;M  =M#=M  ;MFederal 2 Register#;M  =M #=M  ;MԀfortheAnnexonNovember15,2000(65FR68999),indicatingwherethe  AnnexcouldbefoundonEPA'swebsite.The_commenter_ԀiscorrectthatEPAestablishedadeadline#;M  =Mv#=M  ;Mforitself#;M  =M#=M  ;Mof1yearfortheAgencytoincorporatethe : provisionsoftheAnnexifEPAfoundthattheAnnexmettherequirementsoftherule.#;M  =M#=M  ;MԀ#;M  =M#=M  ;MAlthoughthe#;M  =M#=M  ;Mstatement#;M  =MN#=M  ;MԀ#;M  =M#=M  ;MthatEPA"willact"within1yearsignaledEPA's   intentionstoactwithinthattimeperiod,nothingintheregionalhazeruleprecludesEPAfromactingafterthisselfimposeddeadline.Inparticular,actionwithinthe1yeardeadlineshouldnotbeinterpretedasaprerequisiteforapprovingtheAnnexorforincorporatingtheAnnexintotheregionalhazerule.Itisclearfromthe_commenter_'sstatements,however,thatthestatementthatEPAwillactwithin1yearhascreatedconfusionastothemeaningoftheprovision.TheEPAisclarifyingthisprovisionbyremovingthephrase"1year"fromsection309(f)(3).??#;M  =M#P  ;MԀ#;M  P#M  ;M $" ) #;M  M #M  ;M B.Milestones  % *   AcentralfeatureoftheprogramintheWRAPannex,andinEPA'sproposed +'{", rule,isasetofemissionsmilestonesforSO2fromstationarysourcesforthetime 'C#- periodbetween2003and2018.Intheproposedrule,EPAincludedtheAnnexmilestones.Inthefinalrule,EPAincludesthesamemilestonesasproposed.f  g   f  g Inaddition,theproposedruleincludedspecificlanguagetof  g f  g allowf  g Ԁforf  g futuref  g Ԁadjustmentstothemilestonesf  g f  g .IntheAnnex,theWRAPdescribedf  g Ԁalimited ++'2 setoff  g f  g futurecircumstancesthatwouldnecessitateadjustmentstothemilestones.Foreachofthesecircumstances,theAnnexincludedadetaileddescriptionofhowthemilestonewouldbeadjusted,includingadiscussionoftheadministrativeprocessformakingeachadjustment.Intheproposedrule,EPAincludedregulatorylanguageforeachadjustment,closelyfollowingtheprovisionsoftheAnnexf  g .Inthefinalrule,EPAhasmadeafewchangestof  g thf  g eadjustmentsbaseduponcommentsreceived. f  g  `    f  g Inthisunitofthepreamble,wediscusscommentsreceivedrelatedtothemilestonesandtheadjustments.@    @ 1.WhetherMilestonesSatisfyRequirementsintheRegionalHazeRule  H     Proposedrule. Intheproposal,EPAindicateditsagreementwiththeWRAP's 5  conclusionthattheemissionsmilestonesmeettherequirementsoftheCAAandtheregionalhazerule.TheEPAdevotedasignificantportionofthepreambleoftheproposedruletoadiscussionofitsrationaleforthisproposedfinding,(67FR3042030426).Inthisdiscussion,EPAconcludedthattheWRAP'sprogramforSO2 b  wasappropriateinlieuofsourcespecificBARTlimitsbecausethemilestonefor * theyear2018providedfor"greaterreasonableprogress"invisibilityimprovementthanWRAPStateswouldobtainbyimplementingtherequirementforf  g sourcespecificf  g BART.Inaddition,thepreambletotheproposaldiscussesEPA'sfindingthatthemilestonesfortheyearsbetween2003and2017providefor"steadyandcontinuing"progress.  WithrespecttoEPA'sfindingsonBART,thepreamblediscussionfortheproposedrulefocusedlargelyonthedemonstrationprovidedbytheWRAPinAttachmentCoftheAnnex.TheEPAnotedthef  g WRAPusedthef  g followingf  g f  g proceduretoidentifyf  g Ԁtheyear2018milestone:AAf  g f  g 0  !f  g f  g Developedanef  g stimatef  g f  g Ԁoff  g ԀbaselineSO2emissionsfortheyearf  g f  g Ԁf  g 2018,(f  g i.f  g e.f  g , : thepredictedSO2emissionsintheyear2018intheabsenceofaprogramto R reduceSO2emissions);B $$ B0  !DevelopedalistofBARTeligiblesourcesintheC $$  $$  0 CDDregion;E $$ E0  f  g f  g Developedanef  g stimatef  g f  g Ԁoff  g ԀtheemissionsreductionsthatBARTsourcesf  g f  g Ԁf  g couldachieve,and $$ 0  !Selectedayear2018milestonethatreducestheFFG $$ 00$$GbaselineemissionsbyanamountthatwouldachievegreaterreasonableprogressinimprovingvisibilitythanbyrequiringeachBARTeligiblesourcetoinstallBART. $$   Intheproposal,EPAdiscussedthedataandmethodsreliedonbytheWRAPforeachofthesesteps.TheEPAagreedwiththeconclusionreachedbytheWRAPthatthe2018milestonemeetstherequirementsoftheregionalhazerule,takingintoaccounttheuncertaintiesinherentinthecalculationsofpredictedemissionsin2018.  PublicComments.f  g Publiccomments,withoneexception,weresupportiveof J*%0 EPA'sfindingthattheyear2018milestonerepresented"greaterreasonableprogress"thanBART.One_commenter_,representingthetruckingindustry, +7'2 disagreedwiththisfinding,citinganumberofareaswhereitbelievedthatthedemonstrationwaslackingorinadequate.  TheWRAPcommentedthatEPA'spreamblediscussiondidnotcompletelycapturethescopeandmethodologyoftheyear2018milestonedecision.Intheircomments,theWRAPagreedthatEPAhadcorrectlydescribedthemethodtheWRAPusedtodeterminethattheprogramachievedgreaterreasonableprogressthanBART.However,theWRAP'scommentsstressthatwhilethemilestoneswereinformedbythesecalculations,themilestoneswerenegotiatednumbersreflectingabroaderviewofthebackstoptradingprogramandtherelevantfactorsintheCAA.Inaddition,theWRAPnotesthatindividualelementsofthecalculationsdonotrepresentaconsensuspositioninisolationfromthebalancedpackageintheAnnex.  f  g f  g The_commenter_f  g Ԁfromthetruckingindustryf  g f  g wasf  g ԀcriticalofEPA'sacceptanceoftheyear2018milestones.f  g The_commentf  g f  g er_f  g Ԁnotedf  g f  g thatinthepreamblef  g ԀEPAappearedtof  g f  g haveconcernswithf  g :(1)howtheWRAPidentifiedBARTeligiblesources,(2)howtheWRAPcalculatedemissionsreductionsfromthosesources,and(3)theWRAP'sinclusionofthe35,000tonsfor"headroomanduncertainty."f  g f  g Thisf  g Ԁ_commentf  g f  g er_f  g Ԁbelievedthattakenoverall,EPAshouldhaveconsideredtheWRAP'smilestoneforyear2018tobedeficient.f  g Thf  g e_commentf  g f  g er_Ԁwasf  g Ԁalsocriticaloftheprovisionforabackstoptradingprogram,arguingthatsuchaprogramwouldallowforemissionsreductionsfarawayfromtheColoradoPlateautobesubstitutedformoreeffectivereductionsatacloserdistance.  Thecomments,withoneexception,supportedEPA'sproposedconclusionthatthemilestonesfortheyears2003through2017represented"steadyandcontinuingf  g "f  g progress.f  g ԀCommentsfromthetruckingindustrywerecriticalofthisfinding.Intheirview,themilestonesdonotprovidef  g Ԁforsteadyandcontinuingprogressbecausesomeoftheearlyyearmilestonesexceedyear2000actualemissionslevels.  Finalrule.Thefinalruleretainsthemilestonescontainedintheproposed   rule.TheEPAcontinuestobelievethatthemilestonesprovidefor"greaterreasonableprogressthanBART"andfor"steadyandcontinuingprogress."TheEPAdisagreeswithcommentsthatthemilestonesaredeficientinthisregard.TheEPAf  g f  g agreeswithstakeholdersthatitisacriticalconsiderationthattheWRAP'smilestonesf  g providea"cap"onemissionswhichmaynotbeexceeded.f  g ԀAnyprogramprovidingforcasebycaseHHcontrolsonaspecificsetofsourcesdoesnotestablishsucha"cap"fortheregion.f  g ԀMoreover,thiscapappliestoapopulationofsourcesthatincludesallsourcesintheregionemittingmorethan100tonsofSO2#;M  Md#M  ;M,whichisamuchbroaderpopulationthanifonlytheBARTeligiblesourceswere $ ) included.TheEPAcontinuestoconcludethattheWRAPmilestonesarereasonableinlightoftheinherentuncertaintiesthatexistinanyforecasttotheyear2018.f  g f  g Mf  g odelingresultsshowedf  g predictedvisibilityf  g f  g improvementsequivalentf  g Ԁto,orgreaterthan,thosethatwouldresultfroma"commandandcontrol"scenario.f  g Ԁf  g ԀII  TheEPAdisagreeswithcommentsthatthemilestonesf  g f  g cannotf  g Ԁbeconsideredtoprovidefor"steadyandf  g continuing"reductionsifactualemissionswereallowedtoincreaseintheearlyyears.Asnotedintheproposal,EPAbelievesthattheWRAPappropriatelyusedthe_GCVTC_Ԁgoalofa13percentreductioninemissionsbetween +'2 1990and2000asastartingpointorframeofreference,ratherthananestimateofactualemissionsfortheyear2000.Giventhatagreaterthanexpecteddegreeofreductionhasalreadyoccurred,EPAagreesthattheregionshouldnotbeeffectivelypenalizedforachievingearlyreductionsinemissions. J X J2.AdjustmentsforStatesandTribesthatChoosenottoParticipate   b (5h88b KK  Proposedrule.Whendevelopingthef  g f  g Annexf  g ,theWRAPunderstoodthatf  g Ԁsome ( x StatesandTribesmaychoosenottoparticipateintheoptionalprogramprovidedby40_CFR_Ԁ51.309.Thus,theWRAPprovidedtoEPAindividualoptoutamountsforeachStateandf  g f  g Tf  g ribeandforeachyearfrom2003to2018.f  g ԀTheseoptoutamountsrepresentedtheamountofemissionsthatwouldbedeductedfromthemilestonesforeachStatef  g andTribef  g thatdoesnotparticipate.f  g ԀTheEPAincludedatableintheproposedrule(67FR30446,May6,2002)thatshowstheseoptoutamountsforeachStateandf  g f  g Tf  g ribe.Theproposedrulenoted,astheWRAPrecommended,thattheemissionsamountsbudgetedinthistableareonlyforthepurposeofdeterminingthemilestonesatthebeginningoftheprogramifsomeStatesandTribeschoosenottoparticipate.TheEPAcautionedthattheamountsbudgetedtoeachStateandf  g f  g Tf  g ribeinthistablearenotnecessarilytheamountsthatwillbeallocatedtosourceswithintherelevantState'sorf  g f  g Tf  g ribe'sjurisdictionifatradingprogramistriggered.LL񀀀  Theproposaldescribef  g df  g Ԁtheprocessf  g f  g byf  g Ԁwhichthemilestoneswouldbeadjusted = totakeintoaccounttheindividualStateandtribaloptoutamounts.ForStates,f  g f  g Ԁ_SIPs_ԀforallparticipatingStatesareduebytheDecember31,2003deadline.Accordingly,EPAassumedintheproposalthatafterthisdeadlinehaspasseditwillbeknownwhichStatesareparticipatingandwhicharenot.Thus,theproposalcalledfor_SIPs_Ԁtoprovidefordeductingf  g ԀtheStatespecificamountsinTable2(67FR30446,May6,2002)#;M  MC#M  ;Mf  g f  g for"optoutStates"f  g ԀfromtheamountsinTable  1(67FR30425,May6,2002)f  g f  g atf  g Ԁthef  g Ԁoutsetoff  g Ԁtheprogramf  g .#;M  M+#M  ;Mf  g f  g ԀForTribes,tf  g he e proposedrulef  g f  g providesf  g Ԁflexibilityf  g f  g foroptingf  g Ԁintotheprogramafterthe2003SIPsubmissiondeadline.f  g f  g Undertf  g hef  g f  g proposal,forf  g ԀTribesthathavenotoptedintotheprogrambythe2003f  g f  g deadlinef  g ,theamountsinTable2(67FR30446,May6,2002)f  g f  g wouldf  g ԀbedeductedfromtheamountsinTable1attheoutsetoftheprogram.ForTribesthatoptintotheprogramatalaterdate,f  g theproposalrequiredf  g theseamountsf  g f  g tof  g ԀbeautomaticallyaddedtotheamountsinTable1(67FR30425,May6,2002),beginningwiththefirstyearafteraTIPimplementing40_CFR_Ԁ51.309isapprovedbyEPA.  Intheproposal,EPAstatedthatfortheprogramunder40_CFR_Ԁ51.309toachievetheWRAPand_GCVTC_Ԁobjectives,asufficientnumberofStatesmustparticipateintheprogram.TheEPAproposedtodefertotheWRAP'sjudgmentontheissueofhowmanyStateswouldconstitutea"criticalmass"fortheprogram,andwerequestedcommentonthisissue.  PublicComments.Afewcommentswerereceivedonissuesrelatedtothe '5#- proposedoptoutamountsanddiscussion.  Two_commenters_ԀagreedwithEPA'sclarificationthattheoptoutamountsdidnotnecessarilyrepresenttheamountofallocationsthataStatef  g 'sf  g Ԁorf  g f  g Tf  g ribe'ssourceswouldreceiveifthebackstoptradingprogramweretriggered.One +*'2 _commenter_ԀrecommendedthattheStateoptoutamountsshouldbetreatedasthe  amountofallocationsforagivenState,because:(1)theoptoutamountsrepresentthebestestimateofemissionsreductionsfortheBARTeligiblesourcesineachStateorTribe,and(2)inclusionofthetablesmaycreateaperceptionthatanyStatethatissuesfewerallocationsthantheoptoutamountsistreatingthesourceswithintheStateinequitably.     Several_commenters_ԀagreedwithEPA'srecommendationtodeferjudgmentson ( x "criticalmass"issuestotheWRAP.Oneenvironmentalgroup_commenter_Ԁrecommendedthat,inevaluatingwhetherthereareenoughStatesandTribesparticipatingin40_CFR_Ԁ51.309,EPAmustthoroughlyconsidertheextenttowhichtheSO2decliningcap    willeffectivelypreventdegradationfromthevisibilityimpairingemissionsfromnewsourcegrowthacrosstheregion.  `    Subsequenttothecommentperiod,theWesternStatesAirResourcesCouncil   (_WESTAR_)ModelRule/_MOU_ԀWorkingGroupnotedNENNzN O#  4      ׀thatasStatesandTribesfollowtheir h  processforadopting_SIPs_Ԁand_TIPs_Ԁunder40_CFR_Ԁ51.309,theStatesandTribeswillnotnecessarilybeawareofwhichotherStatesandTribeswillchoosetoparticipateintheprogram.Accordingly,the_WESTAR_ԀWorkingGroupbelievedthatStatesandTribeswouldneedtoincludeallofTable2andcalculationproceduresintheirSIP/TIP_submittals_,suchthattheSIP/TIP_submittal_ԀcouldaccountforallpossibilitiesofparticipationbyotherStatesandTribes.Further,the_WESTAR_ h WorkingGroupnotedthatintheinitialyearsoftheprogram,EPAmaynothaveapprovedtheSIPforallparticipatingStatesbeforethedateoftheannualdeterminationofwhetherthemilestoneisexceeded.Lastly,TribesarenotrequiredtosubmitaTIPby2003andcanchoosetoparticipateintheprogramatanytime.Accordingly,the_WESTAR_ԀWorkingGrouprecommendedthatEPAclarify P whetherthecomparisonofemissionstotheMMmilestoneswouldtakeintoaccountallStatesthathavesubmitted_SIPs_,oronlythosewithapproved_SIPs_Ԁasofthedateofthedetermination.#;M  M#M  ;M  X   FinalRule.Thefinalruleretainstheoptouttablesfromtheproposal.f  g Ԁ 8 TheEPAcontinuestoagreewiththeWRAPthattheoptouttablesdonotnecessarilyrepresenttheamountsthatwouldbeallocatedtoagivenStateorf  g f  g Tf  g ribeunderatradingprogram.TheWRAPhasdevelopedadetailedmethodologyfordeterminingandestablishingtradingprogramallocationsforeachsource.Thismethodologyisdescribedindetailinsections_II.D_ԀandIII.D.7oftheAnnex.Itisthismethodologythatwillresultinallocationsshouldthetradingprogrambeneeded.TheEPAbelievesthatestablishingtheamountsintheoptouttablesastheamountsfortradingprogramallocationswouldunnecessarilyconstraintheWRAPfromimplementingitsmethodology.f  g   f  g TheEPAcontinuestobelievef  g ,asdiscussedintheproposal,f  g Ԁthatjudgmentsontheissueof"criticalmass"arebestlefttotheWRAP.f  g ԀRegardingthecommentthattheSO2decliningcapmaynoteffectivelypreventdegradationofvisibility 'm", fromnewsourcesthroughouttheregionifnotenoughStatesandTribesparticipate,EPAnotesthatvisibilityprogressissuesasageneralmatterwill (#. needtobeaddressedin_SIPs_Ԁsubmittedunder40_CFR_Ԁ51.308.Accordingly,EPAdoesnotbelievethatthiscommentwarrantsanychangetotheproposedrulelanguage.  TheEPAagreeswiththe_WESTAR_ԀWorkingGroupthatStatesandTribes X submittingtheir_SIPs_Ԁand_TIPs_Ԁunder40_CFR_Ԁ51.309shouldincludeTable2andthecalculationproceduresintheirSIPorTIPregulationsinordertoaccountforallpossibilitiesofparticipationbyotherStatesandTribes.TheEPAalsoagreeswiththe_WESTAR_ԀWorkingGrouprecommendationtoaddtothefinalrule ( x clarificationthattheoptoutadjustmentunder40_CFR_Ԁ51.309(h)(1)(_i_)willincludetheStatesandTribesforwhich_SIPs_Ԁand_TIPs_ԀhavenotbeenapprovedbyEPAasofthedateofthedetermination.#;M  M#M  ;Mf  g P    P 3.AdjustmentsforSmelterOperations m     Proposedrule.  AtthetimetheWRAPwassubmittedtoEPA,twocopper   smeltersintheregion,thePhelpsDodgeHidalgosmelterandtheBHPSanManuelsmelter,hadsuspendedoperations.IntheAnnex,theWRAPrecommendedthattheprogramspecificallyaccountforthepossibilitythatthesesmelterscouldcomebackonlineshouldeconomicconditionschange.Accordingly,theAnnexcontainedaspecificsetofcomplexdecisioncriteriatoadjustthemilestonesinthefutureforanumberofspecificscenariosrelatedtothetwosmelters.TheEPAintheproposalattemptedtoclarifytheWRAP'sadjustmentswithaseriesof"ifthen"tables,andwerequestedcommentonwhetherthesetablesaccuratelyreflectthedecisioncriteriaintheAnnex.      Publiccomments._Commenters_ԀagreedthattheEPA'sproposedtableaccurately R reflectedtheAnnex.Two_commenters_ԀnotedthatsubsequenttothedevelopmentoftheAnnex,athirdsmelter,thePhelpsDodgeChinosmelter,suspendedoperations.Thesetwo_commenters_Ԁrecommendedthattheregionalhazeruleshouldrecognizethiswithoutreopeningthenegotiatedagreementonthemilestones.Further,the_commenters_ԀrecommendedthattheregionalhazeruleshouldprovidesomeassurancethatwhentheChinoSmeltercomesbackonlineagain,its16,000allowanceswillbeavailabletoitwithoutprematurelytriggeringtheprogram. '    Finalrule.Thefinalruleretainsthesmelteradjustmenttablesas t" proposed.TheEPAconsideredwhetherthefinalruleshouldcontaincontingenciesfortheChinoSmeltersimilartothoseforHidalgoandSanManuel.Forexample,oneapproachwouldbetodeducttheamountfromtheChinosmelterfromthemilestonesandtodevelopaseriesofadjustmentstoaccountforthepossibilitythatitmaycomebackonline,similartotheapproachfortheothertwosmelters.TheEPAhasnottakenthisapproach,becauseofthecomplexitythatwouldbeaddedtotheadjustments,andbecausethisscenariowasnotspecificallydiscussedastheWRAPwasnegotiatingtheAnnex. Q %!* Q4.AdjustmentsforUtilityBoilersOptingtoUseMoreRefinedFlowRateMethods   Proposedrule.Theproposedrulerequestedcommentonthespecificmethod (1$. andprocessforadjustingthemilestonesforsourcesusingarefinedmethodformeasuringstackflowrates.Thiswasseenasasignificantissue,becausetheflowrateaffectsthedeterminationofemissionsratefromacontinuousemissionsmonitoringsystem(_CEMS_). ,^'2 Ї  In1999,EPAadoptedrevisionstoEPA'sReferenceMethod2,thestandard  methodformeasuringstackflowrates(64FR26484,May14,1999).Therevisionsprovidedthreenewprocedures:Methods2F,2G,and2H.Thenewprocedures,ifusedforagivensource,allowforamoredetailedassessmentofthestackflowratestoprovidemoreaccurateflowrateresults.ThechangesaddressedconcernsraisedbyutilitiesthatReferenceMethod2mayoverestimateflowincertaincases,suchaswhentheflowisnotgoingstraightupthestack.Iftheflowrateisoverestimated,thiswouldalsoleadtotheoverestimationofSO2emissions ( x becausethefacility'scontinuousflowratemonitoriscalibratedtocorrespondtotheflowtestmethod.FacilitiessubjecttotheacidrainprogramundertitleIVoftheCAAmustperformtheseflowtestsatleastonceayeartodeterminetheaccuracyoftheircontinuousflowmonitors.FacilitieshaveanoptiontouseeithertheoldMethod2,oroneormoreofthenewmethods.  WhentheWRAPmadeitsemissionprojectionsforpurposesofdevelopingthemilestones,thenewmethodswerenotyetinplace.Accordingly,ifasourceownerchoosestousethenewflowmethods,andifasexpecteditresultsinareducedflowrateforthesamelevelofoperation,thentherewillbeacorrespondingdecreaseinthemeasuredemissions.Inthepreambletotheproposal,EPAagreedwiththeWRAPthatthiswouldcreatethepossibilityofa"paper"decreaserelativetothemilestoneifthemilestonereflectstheoldmethod.AsdiscussedinsectionIII.A.5oftheAnnex,theWRAPnotesthataprotocolisneededforadjustingthemilestonestoreflectchangesinthebaselineemissionforutilityboilersanytimethatasourceoptstochangeits_CEMs_Ԁmethod.TheWRAPaddressedthisissueingreaterdetailinasupplementalpaperentitled"EmissionsTracking p PriortoTriggeringtheBackstopTradingProgram,"whichwassubmittedtoEPAonJune1,2001.  TheWRAPhasidentifiedthreepossibletechnicalproceduresfordevelopingan"adjustmentfactor"forthenewflowmethod.TheEPAagreesthatanyofthesethreeprocedureswouldbeacceptable.Underthefirstprocedure,therewouldbeasidebysidecomparisonofflowratesusingboththenewandtheoldflowreferencemethods.Forexample,ifthenewmethodmeasured760,000cubicfeetperminute,andtheoldmethodmeasured800,000cubicfeetperminute,theadjustmentfactorwouldbe(760,000/800,000),or0.95.Thesecondmethodwoulduseannualaverageheatrate,whichisreportedtotheEnergyInformationAdministration(EIA),asasurrogatefortheflowrate.Underthismethod,theflowadjustmentfactorwouldbecalculatedusingtheannualaverageheatrateusingacidrainheatinputdata(_MMBtu_)andtotalgeneration(_MWHrs_)reportedtoEIA,calculatedasthefollowingratio:&  Heatf  g f  g Input/MWhrsf  g Ԁforfirstfullyearofdatausingnewflowratemethod̄Heatf  g f  g Input/MWhrsf  g Ԁforlastfullyearofdatausingoldflowratemethod'#6ThethirdmethodwouldusedatareportedtoEPA'sacidrainprogram.Underthismethod,therewouldbeacomparisonofRRthestandardcubicfeetperminute(CFM)permegawatt(MW)beforeandafterthenewflowreferencemethodbasedon_CEMs_data,calculatedasthefollowingratio:SS +'2 B  M_SCF_/UnitofGenerationforfirstfullyearofdatausingnewflowratemethod  Є_SCF_/UnitofGenerationforlastfullyearofdatausingoldflowratemethod#M  B9#Ԁ (x   Inthesupplementalinformationpaper,theWRAPidentifiedthreepossibleapproachesforusingtheadjustmentfactorsformakingacorrectcomparisonofemissionstothemilestones.TheWRAPdidnotindicateapreferenceforanysingleapproach.Thethreeoptionsareasfollows:UU0  (a)Usingoneoftheoptionsdescribedabove_forWV $$ V $$ Wdetermining_Ԁtheflowadjustmentfactor,revisethesourcesbaselineemissionsforecastfor2003,2008and2013.Foreachyearfollowingtheadoptionofthenewflowreferencemethodthrough2017,reducetheinterimmilestonebythecorrespondingamount.f  g f  g Toillustratehowthisapproachwouldwork,f  g Ԁthef  g proposalusedanf  g Ԁexamplef  g wheretheadjustmentfactorf  g foragivenstackf  g is0.95f  g .Asdiscussedabovef  g ,f  g Ԁthismeansthattheemissionswiththenewmethodisdeemedtobe0.95timestheemissionswiththeoldmethod.Forthisexample,foroption(a)f  g Ԁthismeansthatthepreviousbaselineemissionsforthatsourcewouldbemultipliedby0.95.TheannualcompliancecheckwouldthenbedonebycomparingregionalSO2emissions(unadjusted,asreportedto p EPA'sacidrainprogram)totherevisedmilestone.Z $$ Z0  (b)UsingoneoftheoptionsdescribedaboveforXXY $$ Ydeterminingtheflowadjustmentfactor,revisethesourcesreportedemissionsonanannualbasis,anddonotadjustthemilestone.Fortheexamplenotedabove,f  g underoption(b)f  g theemissionsreportedtoEPA'sacidrainprogramwouldbeadjustedupwardbymultiplyingtheamounttimes(1/0.95).Foreachyearfollowingtheadoptionofthenewflowreferencemethodthrough2017,theannualcompliancecheckwouldbedonebycomparingtheadjustedregionalSO2 x emissionstotheunadjustedmilestones.[ $$ [0  (c)Useacombinationofthetwoapproaches.Under\ $$ \]]thisapproach,interimmilestoneswouldbeadjustedonlyevery5years[usingoption(a)above]andthereportedemissionsforadditionalsourcesmakingthechangeintheinterveningyearsareadjustedforcomparisontothemilestones[usingoption(b)above].@#$$   Intheproposal,EPAstatedthatanyoneofthesethreeapproacheswouldbeacceptable,butthataspecificapproachneedstobeselectedforthefinalrule.TheEPAalsonoteditsviewthattheseadjustmentstothemilestoneortothe #`' reportedemissionswouldnotnecessarilyrequireSIPorTIPrevisions,becausetheprecisemethodformakingtheadjustment,andthepubliclyavailabledataelementsthatwillbeusedformakingtheadjustment,couldbespecificallyidentifiedinthefinalrule.  0&!+    Publiccomments.  _Commenters_ԀgenerallyagreedwithEPA'sassessmentthatany '#- ofthethreeapproachesfordetermininganadjustmentfactorwouldbeacceptable.^^  TheWRAPnotedinitscommentsthatthe2018milestonealreadyincluded assumptionsabouttheeffectofthisflowrateadjustment.TheWRAPrecognized *J&1 thatthepreambletotheruleimpliesthisdistinctionbuttheWRAPrecommendedthatthisbereflectedintheregulatorytextaswell.  x    Regardingthethreeoptionsrelatedtotheprocessforusingtheadjustment X factors , theWRAPrecommendedoption(c)initscomments.Thatis,themilestones   wouldbeadjustedevery5yearswiththeperiodicSIPrevisions , andadjustments  wouldbemadetothereportedemissionsfortheinterimperiod.Other_commenters_,whilesupportingtheconceptofadjustingthemilestoneswiththeSIPrevisions,didnotaddresswhetherthereportedemissionsshouldbeadjustedintheinterimperiod.TheEPAinfersfromthesecommentsthatthese_commenters_Ԁarelikelyrecommendingthatemissionadjustmentsneednotbemadeintheinterimperiod.        Finalrule.  Thefinalruleincludesregulatorylanguageagreeingwiththe m  WRAP'srecommendationsf  g regardingtheflowrateadjustment.Statesarerequiredinthe_SIPs_Ԁf  g tof  g f  g Ԁprovideforreportingoff  g Ԁ"adjusted"emissionratespendingf  g f  g anf  g Ԁupdatetothemilestonesf  g ,whichwouldoccuratthetimeoftheplanrevisionsrequiredunder40_CFR_Ԁ51.309(d)(10)f  g . _ J  _5.AdjustmentsforEnforcementActions  * b '(h88 b  Proposedrule.Theproposedrulef  g ԀincludedaprovisionintheAnnexfor  adjustmentstothemilestonesfor"illegalemissions."Indevelopingthemilestones,theWRAPidentifiedthebaselineemissionsforeachsourceduringthebaseyear,andf  g f  g "forecasted"f  g Ԁemissionsforthesourceduringthe2003to2018timeperiod,takingintoconsiderationgrowth,utilization,retirement,andtheabsenceofanyadditionalrequirements.Thecompilationofthesesourcespecificbaselineemissionsresultedinthebaselineemissioninventorytotals,whichserveasa startingpointformeasuringprogressfromtheprogram.TheWRAPrecognizedintheAnnexthatifasourcewasinviolationofapplicablerequirementsduringthebaseyearwhenitsemissionsweredetermined,thebaselineemissionsduring20032018wouldbeoverestimated.  Intheproposal,EPAincludedthisprovisionwithgeneralregulatorylanguageprovidingfortheadjustmentofbaselineemissionsforillegalemissions,andwerequestedcommentonpossiblewaysofclarifyingtheprovisioninthefinalrule.TheEPAnotedinthepreambletotheproposalthatthereareinstanceswhereitmaybeunclearwhetherundertheapproachintheAnnex,f  g emissionswouldbeconsideredas"illegal,"forexamplewhere:``0  !disputingpartiesresolvetheirdifferencesthrough(1)aconsentdecreethatiseitherenteredthroughFederalorStatecourts,or(2)anadministrativeenforcementproceedingbyeitheraState,Tribe,orEPA;or#;M  M#M  ;MԀ#;M  MW#M  ;M$g($$ aa0  aStatedisagreeswithEPAoracitizensf  g 'f  g Ԁgroupoverwhetherornotaparticularallegedviolationf  g f  g occurredf  g .f  g  $$   f  g f  g Tf  g hef  g ԀEPArequestedcommentonhowthesef  g Ԁsituationsshouldaffectthemilestones.#;M  MW#M  ;MSpecifically,EPArequestedcommentonthefollowingpossible ($. options:  W*%0   Option1.Underthisoption,therulewouldrequirethatifthereisany  resolutionf  g l_Fll}l O#  5      _f  g ԀtoallegedillegalSO2emissions,thenallofthereductionsresulting x  fromtheresolutionwouldbeconsideredas"illegalemissions."Takingintoaccountthesereductions,theStateorf  g f  g Tf  g ribewouldthen"reforecast"thesource'semissionsanditseffectonthemilestone."Reforecast"meanstoreapplytheforecastingprocess,thatistheprocesstheWRAPoriginallyusedtoprojectfutureemissionsanddevelopthemilestones,usingthecorrectedbaselineSO2#;M  M$Z#M  ;M `  emissionsfortheaffectedsource.Acomparisonofthisreforecastofemissionswiththepreviousforecastofemissionswoulddeterminetheamountoftheadjustmentforeachyearupthrough2018.#;M  MX^#M  ;MԀ    #;M  Mu_#M  ;Mc0  cid0  dij  jOption2.Underthisoption,therulewouldallowforeefH  $$ fcasebycase H   judgmentsontheappropriatenessofadjustingbaselineemissionsfollowingresolutionofallegationsofillegalSO2emissions.Therulewould,however, (  clarifytheentityresponsiblefordecidingwhetheracaseinvolvesillegalemissionswarrantinganadjustmenttothemilestones.#;M  M_#M  ;MUnderthisoption,we h  requestedcommentonf  g f  g whichf  g Ԁentityf  g Ԁshouldbef  g Ԁresponsibleforthisdetermination,thatis,whethertheruleshouldclarifywhetherthepartiesggh $$ henteringintoasettlement,theStates,theTribes,theWRAP,orEPAwoulddeterminethesettlement'simpactonthemilestones.#;M  M%b#M  ;M    TheEPAnotedthatunderanyoftheproposedoptions,adjustmentstothemilestonewouldoccuronlyafterthesourceintheenforcementcasehasachievedtherequisitereductionofSO2emissions.Consequently,adjustmentstothe  milestoneswouldhavenoeffectonanyotherfacilitysoperationbecauseallofthereductionswouldbeachievedbythesourcesubjecttotheenforcementaction.#;M  M1d#M  ;M    #;M  M=f#M  ;MTheEPAalsosolicitedcommentsintheproposalonhowtotreatanyextraSO2  emissionsreductionsthatafacilitymightachieveasaresultofasettlement.TheEPAwilloftenallowacompanythatissettlingthroughaconsentdecreeorsettlementagreementtoperformasupplementaryenvironmentalprojectandallowtheexpendituresonthisprojecttopartiallyoffsetpenaltiesthatthecompanywouldotherwisebeassessed.TheEPAnotedinthepreambletotheproposalthatifthemilestonesarenotreducedbytheamountofextraemissionsreductionsfromthistypeofproject,thentheenvironmentmayseelittlebenefit,sinceanothercompanywouldbeallowedmoreSO2emissions.Thus,intheproposal,EPAsought  $ inputonwhetherthese extrakkemissionsreductionsshouldbeconsideredpartofthis"illegalemission"adjustmentandfactoredintoarecalculationofthemilestone.#;M  Mf#M  ;M (#x'   PublicComments.#;M  Mj#M  ;MTheEPAreceivedanumberofcommentsonthisprovision.f  g f  g  $ )   f  g Afew_commenters_Ԁrecommendedthatthisprovisionbedeletedfromtheruleentirely.Some_commenters_Ԁcriticizedthisprovisionbecauseitwouldlowerthemilestonesandreducethepotentialpoolofallowancesunderthebackstoptrading '5#- program.Accordingly,these_commenters_Ԁbelievedthattheprovisionwouldservetopunishthe"nonviolators"intheprogramatlarge.#;M  Mk#M  ;MԀf  g Another_commenter_Ԁbelieved x thatanyadjustmentfor"illegalemissions"isnotappropriateunlessithasbeendemonstratedthattheprovisionwouldimprovevisibility.  f  g Other_commenters_Ԁsupportedtheprovisionbutrecommendedthattheterm"adjustmentsforillegalemissions"bereplacedwiththeterm"adjustmentsduetoenforcementactions."Some_commenters_Ԁrequestedclarificationf  g f  g onwhetherf  g Ԁtheseadjustmentswouldonlyapplytoenforcementactionsthatwouldhaveaffectedtheassumptionsusedinbaselineemissionsprojections.One_commenter_ԀrecommendedthattheproposedadjustmentforillegalemissionsshouldapplyonlytoemissionsreductionsresultingfromconsentdecreesoradministrativeorderswheretheEPAorauthorizedStatehascommencedtheenforcementaction,andnotwhereemissionsreductionsariseoutoff  g "f  g voluntarysettlementsf  g "f  g Ԁinitiatedbythecompany.#;M  Mm#M  ;M (    Regardingthetwooptionsforclarifyingthisprovision,theWRAPandother_commenters_Ԁrecommendedthesecondoption.These_commentf  g erf  g s_Ԁnotedthatcasebycasejudgmentswillbeneededtodeterminewhetherandthedegreetowhichthemilestonesshouldbeadjusted.f  g f  g RespondingtoEPA'srequesttoclarifytheentityresponsibleforcalculatingtheadjustment,tf  g heWRAPrecommendedthattheentityresponsiblef  g Ԁshouldbethepartiesenteringintoasettlement,inconjunctionwiththerelevantStateorf  g f  g Tf  g ribe.f  g Thf  g e_commentf  g erf  g s_ԀenvisionedthatEPAwouldhaveanoversightrf  g f  g of  g leintheSIPapprovalprocesstodeterminethattheadjustmentagreedtothroughtheenforcementprocessisproperlyreflectedinthemilestoneadjustment.  TheWRAPcommentsrecommendedthatspecificlanguagebeaddedtothefinalrulerequiringStatesandf  g f  g Tf  g ribestodocument,andincludeintheadministrativerecord,nnnn O#  6      ׀f  g adiscussionofwhetheranyadjustmentstothemilestonesareappropriate  baseduponadministrativeorjudicialenforcementactions,andtoincludeanexplanationofthebasisfortheState'sorTribe'sdecision.  RegardingEPA'srequestforcommentonhow"extra"emissionsreductionsinenforcementactionsshouldbetreated,theWRAPandother_commenters_Ԁbelievedthattheseextraemissionsreductionsshouldalsobetreatedonacasebycasebasis.TheWRAP_commenters_ԀrecommendedthatEPAincludeaprovisionintherulerequiringStatesorTribestoaddressintheperiodicSIPrevisionwhetherSO2allowancesp  $ pq  $ qshouldberetiredorconfiscatedt_H_ttt O#  7      _Ԁasaresultofanadministrativeorjudicial !% enforcementactionandtherationalefortheState'sorTribe'sdecision. `"& Ї  Finalrule.TheEPAhasretainedthisprovisioninthefinalrule.TheEPA  agreeswiththeWRAPthatthisprovisionisnecessarytoensurethatthe"baseline,"thestartingpointforthemilestonecalculations,reflectscompliancewithregulations.Solongasthereductionstothemilestonesdonotoccurbeforethedateasourcecomesbackintocompliance,EPAdoesnotbelievethatthisadjustmenthastheeffectof"penalizing"theothersources.Regardingthecommentthatthisprovisionisdeficientduetoalackofdemonstratedvisibilityimprovements,EPAbelievesthattheWRAPwasnotrequiredtomakeademonstrationofthevisibilityimprovementsofthisspecificprovision,whichispartoftheWRAP'soverallprogramforSO2reductionsfromstationarysources.