WPCn U.j?HBB#!8 UNY % 0( ` 0D5 ^ y w@ 4   m  1u N~ M 0D C B B* B)))@ FMPo{\TjUNkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkkk B$l$l 0DAlAl D+l 0Klllllllllllllll 0cmmmmmmmmmmmmmmmmmmmmmmmmm A$n\\UTSTATE\air-hp5si0(9 Z6Times New Roman RegularX($ V )  __&1%XX__Opt_in/outMilestoneAdjustmentProcedure,May__30,__Ԁ2001$!$!$!(#Page  1  __(3$ !  4*  !"#D$D%U&U'U(Eh*X ǜWpWP3|x+U 3#37=CIQYag1.a.i.(1)(a)(i)1)a)(3$ !   d$ $d&$ d dK Kd WPCgg]6]6!]6,\ƚm%el  .    6]''  ' =d' =d Arial |w|wgw  - 2 ZMilestone Adjustments Due to States or Tribes Opting Out of the Regional Program Under 309S88!==8E==8!Y8=!8H=8!=C!8!88='='=88N=!==N=!=!!=8H8===8C'=='8YH==8'888 Arial |w|wgw  -2 cThese numbers have been generated for the sole purpose of adjusting the regional milestones, and do>882888T88!2881888887888!8888!8828888!8828888828788!87888T828882888882 -S not confer or imply rights or state/tribal specific emissions caps or milestones.M882888!8!T81!7828!288!88288228T2288228828!T828882- Arial |w|wgw  --"System  -'- \"---- O2 0State and Tribal Adjustments to the Milestones C!8!88==='=8E==8!Y8=!8!=!=8S88!==88-]2 = 9(Note: the adjusted milestone remains a regional number)$0)%)%%))%%)<%%))%%<%)%%%)))%))<)%--'- =d Arial |w|wgw  --'- \ 2 1998/99n...... 2  2003.... 2 J 2008.... 2 2013.... 2 2018....-'- =d Arial |w|wgw  - B2 'Regional adjustment if Arizona opts out<........*G..7(.....*..Arial |w|wgw  -2 109,010n......2 C 131,615n......2  131,484n......2 117,161n......2 L89,465.....-F2 |*Regional adjustment if California opts out<........*G..<......*..-2 |( 37,683.....2 |q 36,784.....2 | 33,363.....2 |29,459.....2 |L25,959.....-C2 (Regional adjustment if Colorado opts out<........*G..<.......*..-2 101,442......2 q 97,417.....2  94,592.....2 83,930.....2 L53,311.....-?2 J%Regional adjustment if Idaho opts out<........*G........*..-2 J( 22,300.....2 Jq 17,746.....2 J 15,918.....2 J13,867.....2 JL12,506.....-@2 &Regional adjustment if Nevada opts out<........*G..<.).....*..-2 ( 49,182.....2 q 19,885.....2  19,856.....2 19,438.....2 L19,221.....-F2 *Regional adjustment if New Mexico opts out<........*G..<.;E.**...*..-2 108,725......2 C 105,357......2  102,670......2 92,193.....2 L83,511.....-@2 &Regional adjustment if Oregon opts out<........*G..A......*..-2 ( 23,293.....2 q 25,875.....2  25,521.....2 20,682.....2 z7,206....-=2 $Regional adjustment if Utah opts out<........*G..<....*..-2 ( 39,381.....2 q 42,142.....2  41,526.....2 37,487.....2 L28,797.....-B2 M'Regional adjustment if Wyoming opts out<........*G..S'.G....*..-2 M143,921......2 MC 153,525......2 M 151,130......2 M135,005......2 ML90,738.....-L2 .Regional adjustment if Navajo Nation opts out*<........*G..<.)..<.....*.. -2 ( 51,683.....2 q 53,147.....2  53,427.....2 51,266.....2 L44,772.....--'- --- R2 2Regional adjustment if Shoshone-Bannock Tribes of <........*G..7..*....7....*+4..*.:2 "the Fort Hall Reservation opt out*..3.<.<.*.)....... ---'- =d 2 V 4,994....2  4,994....2  4,994....2 14,994....2 z4,994....--'- --- X2 6Regional adjustment if Ute Indian Tribe of the Uintah <........*G..<.....4.....<...62 Nand Ouray Reservation opts out*...A..'<.*.).....*.. ---'- =d  2 P: 1,135...., 2 P 2 P,  2 P 1,129....2 P 1,135....2 P11,135....2 Pz1,135....--'-  --- U2 4 Regional adjustment if Wind River Reservation opts <........*G..S..<).<.*.).....*2  out* .. ---'- =d 2  V 1,384....2  1,384....2  1,384....2  11,384....2  z1,384....-2 Subtotal7333.-2 694,134l......2 C 691,000l......2 677,000l......2 608,000l......2 463,000l......----'- H \ ---- 92 !New Source Set-Aside Adjustment *H8PC=='88C8!!E8=8E==8!Y8=!-]2 9(Note: the adjusted Set-Aside remains a regional number)$0)%)%%))%%)-%-%)%%<%)%%%)))%))<)%--'- =d--'-  \P  2 L 1998/99l...... 2 L  2003.... 2 L J 2008.... 2 L 2013.... 2 L 2018....-'- =d- B2 'Regional adjustment if Arizona opts out<........*G..7(.....*..-2 1,757....2 3,596....2 15,437....2 z5,437....-F2 + *Regional adjustment if California opts out<........*G..<......*..- 2 + 5593...2 + 1,039....2 + 11,532....2 + z1,532....-C2 (Regional adjustment if Colorado opts out<........*G..<.......*..-2 1,480....2 2,945....2 14,364....2 z4,364....-?2 %Regional adjustment if Idaho opts out<........*G........*..- 2 2706... 2 -4966... 2 v7216... 2 7216...-@2 ` &Regional adjustment if Nevada opts out<........*G..<.).....*..- 2 ` 3026... 2 ` -6186...2 ` 11,011....2 ` z1,011....-F2 *Regional adjustment if New Mexico opts out<........*G..<.;E.**...*..-2 1,267....2 2,512....2 13,889....2 z3,889....-@2 .&Regional adjustment if Oregon opts out<........*G..A......*..- 2 . 3938... 2 .-7958...2 .11,075....2 .z1,075....-=2 $Regional adjustment if Utah opts out<........*G..<....*..- 2  6407...2  1,293....2 11,949....2 z1,949....-B2 'Regional adjustment if Wyoming opts out<........*G..S'.G....*..-2  2,333....2  4,706....2 17,020....2 z7,020....--'- .b--- X2 W6 Regional adjustment if one or more of the 211 Tribes <........*G......G........4..*2 opt out ....---'- =d- (2 8Subtotal - New Sources7333.<.B733 ...- 2 ; 0.2 ; 9,000....2 ; 18,000.....2 ;27,000.....2 ;L27,000.....----'- \---- 2  Milestones S88!==88-]2 1T9(Note: the adjusted milestone remains a regional number)$0)%)%%))%%)<%%))%%<%)%%%)))%))<)%--'- =d--'- \ 2 1998/99...... 2  2003.... 2 J 2008.... 2 2013.... 2 2018....-'- =d <2 #Subtotal - State and Tribal Budgetst7333.7...334 3.<333..-2 C 691,000......2  677,000......2 608,000......2 463,000......--'- \o (2 mSubtotal - New Sources7333.<.B733 ...-2 p 9,000....2 p 18,000.....2 p27,000.....2 pL27,000.....-'- =d--'- ;\ 2 Tribal Set Aside4 3.7.9.3.-2 q 20,000.....2  20,000.....2 20,000.....2 L20,000.....-'- =d- 2 ETotal43.-2 HC 720,000......2 H 715,000......2 H655,000......2 H510,000......-2 UMaximum Smelter Set-Aside Adjustment if Suspended Smelters Do Not Resume Operation***S88Y=YCY8!8'C8!!E8=8E==8!Y8=!!C=8=8==8=CY8!8'8H=H=!H88=Y8N=8'8!=='''--'- n\  2 1998/99...... 2  2003.... 2 J 2008.... 2 2013.... 2 2018....-'- =d- 2 }Arizona7(...n 2 }9 (16,000).....0 2 }a 02 }0  2 } (16,000).....y 2 } 02 }y  2 }(12,600).....2 } 02 } I2 }(12,600)..... 2 }< 02 }  -'- H\ 2  New Mexico<.;E.**.,n 2 9 (22,000).....,0 2 a o2 0  ,2  (22,000).....,y 2  o2 y  ,2 (17,400).....,2  o2  ,I2 (17,400)....., 2 < o2   -'- =d L2 U.Total (minimum without two suspended smelters)4..G.G.G;...;.*.*......*G..*R 2 U' 682,000)...... 2 Ua  2 U  2 Up 677,000 ......b 2 U  2 Ub  2 U625,000 ......2 U 2 U -2 U480,000 ......2 U< 2 U  Arial |w|wgw  - ArialW _|w|wgwW _ ---'- \0--- `2 ?;* Tribes with sources that emit 100 tons/year or more of SO)%%"/%"%%"%"%%%9%%%%%"!%%%9%%%-4- 2 `2-2 ?V are listed. Other tribes may participate in the program but the milestones would not%%"%%4%%%%"9%!%%"%%%%%%%%%%9%%%%9%"%%%"/%%%%%--'- =d 2  need to be adjusted based on their participation. Emission inventory data for non-utility sources on tribal lands are based on state inventories.%%%%%%%%%%"%%%%"%%%%%%%%"%%%%-9""%%%!%%%!%%%%%%%%!"%%"%"%%%%%%%"%%%%"%%%%"%%%!%%%%"2 W The tribes are currently working to improve their emission inventory capabilities. )%%%%"%%"%%%!/%"%%%9%%!%%%%9""%%%!%%%!"%%%%%"2 t** The new source set-aside will not be adjusted if tribes opt in or out of the program. Participating tribes will still have equal access to the regional new)%%%%/"%%"%"%%"%%/%%%%%%%"%%%%"%%%%%%%%%%%%%9-%"%%%%%%"/"%%!%%%%%%""%""%%%%%%%%%%/2  source set-aside in the same manner as states. In addition, the tribal set-aside may be used by the tribes to provide additional opportunities for"%%"%"%%"%%%%%"%9%9%%%%%""%%"%%%%%%%%%%"%%"%%9%!%%%"%%%!%%%%"%%%!%%%%%%%%%%%%%%%"%=2 B$ new source growth on tribal lands.%%/"%%"%%%/%%%%%%%%"2 u*** The two suspended smelters are Phelps Dodge, Hidalgo Smelter in New Mexico and BHP San Manuel Smelter in Arizona.)%%/%"%"%%%%%%"9%%"%%-%%%"0%%%%0%%%%-9%%%0%/7% "%%%%-0--%%7%%%%-9%%%-!%%%2  The values listed here represent the maximum adjustment that would be made for each smelter. There are additional provisions in the Annex)%%!%%%""%%%%%%%%"%%%%9% 9%9%%%"9%%%%/%%%%%9%%%%%%"%"9%%)%%%%%%%%%%%%%!"%%"%%%-%%% 2 w that would reduce this adjustment by up to 13,600 tons if one or both of these smelters does not resume operation, and other smelters ine%%/%%%%%%"%%"%%%"9%%%!%%%%%%%%%%"%%%%%%%%%%"%"9%%"%%%"%%%"%9%%%%%%%%%%%%%"9%%"%2  the region increase production to meet regional demand for copper. A small adjustment of up to 100 tons may occur in Utah under this circumstance.%%%%%%%"%%"%%%%%"%%%9%%%%%%%%%9%%%%"%%%%-"9%%%%"9%%%%%%%%%%%"9%!%""%%0%%%%%%%"""%9"%%"%--'- &Mb 2  No adjustment<....*G..-'- =d-'- 6]-  - - !e- - !]- 1 1 - !]1 - z z - !]z - - !]-   - !] - UU- !]U ! ! !) !r ! ! !M- H  - !eH - P  - !]P - P 1  1 - !]P 1 - P z  z - !]P z - P  - !]P - P  - !]P - P U U- !]P U- ZZ) - !1Z- ZA Zr - !1ZA - Z Z- !1Z - ZZ- !1Z ! ) ! r !  !  ! !  !s>) !s>r !s> !s> ! M- - !e- - !]- 1 1 - !]1 - z z - !]z - - !]-   - !] - UU- !]U ! !  ! ) ! r !  !  ! M- f- !e-  UfU- !] U !ef-  f- !] -  1 f1 - !] 1 -  z fz - !] z -  f- !] -   f - !]   !M~M- ]- !U !U !Uz  !U - H H ]- !UH  !U - ZZM- !1Z !U& !U- ]- !U !U !U3 !U- ]- !U !Uf !U@ !U-  -'- =d-4' )  _&1%XXRevisedOptin/outMilestoneAdjustmentProcedure,May_4,_Ԁ2001$!$!$!(#Page  1  __(9 Z6Times New Roman Regular d(3$ !  'dxd( $ Figure  1  Level 1Level 2Level 3Level 4Level 5(;3$2#  0  .3  0  \X[Z I&mage <=8C HKKKK !  _H(__(((   e!XX  _MilestoneAdjustmentstoAccountforStatesandTribesOptingIntoor  OutoftheRegionalBackstopSulfurDioxideTradingProgram#X5X! e# < "  "&&$$"RecommendationtotheWesternRegionalAirPartnershipfromtheMarketTradingForumMay4,2001s"$$%% Background   < WhenEPApromulgatedtheregionalhazeruleinJuly1999,westernstatesandtribeswereofferedtwooptionsforcomplyingwiththerule.ThefirstoptionwastoimplementtheGrandCanyonVisibilityTransportCommission(GCVTC)recommendations,asoutlinedinsection309oftherule,withaStateImplementationPlan(SIP)submittalduein2003.ThesecondoptionwastodevelopaSIPbytheyear2008,asoutlinedinsection308oftherule,thatwoulddemonstratethatthestatewasona60yearglidepathtoreachnaturalvisibilityconditions.TheGCVTCrecommendationscalledforaseriesofdecliningregionalmilestonesforsulfurdioxide(SO2).Thegoalistomeetthesemilestonesthroughvoluntarymeasuresandtheability $t forsourcestoplanfornewpollutioncontrolequipmentintheirlongrangebusinessplans.Iftheregionalmilestonesarenotmet,abackstopemissiontradingprogramforSO2wouldbe L implementedtoreduceemissionsandensurethattheregionalemissiongoalsweremet.ThedetailsofthisprogramweresubmittedtotheEnvironmentalProtectionAgency(EPA)inOctober,2000inareporttitled VoluntaryEmissionsReductionProgramforMajorIndustrial  SourcesofSulfurDioxideinNineWesternStatesandaBackstopTradingProgram,anAnnextotheReportoftheGrandCanyonVisibilityTransportCommission (Annex).  Theregionalmilestonesforsulfurdioxideweredevelopedbasedonemissionprojectionsfortheentiretransportregion,whichincludes9statesand211tribes.Becausestatesandtribeshaveanoptiontodevelopadifferentemissionreductionstrategyundersection308oftheregionalhazerule,itisnotknownatthistimehowmanystatesandtribeswillchoosetoparticipateinthisbackstopemissiontradingprogram.TheAnnexaddressedthisuncertaintybyincludingprovisionstoautomaticallyadjustthemilestonesdependingontheparticipationofindividualstatesandtribesintheregionalbackstoptradingprogramforSO2.Theadjustmentisimportantbecauseitwouldnotbeequitableto "  triggeratradingprogrambasedontheactivitiesofstatesandtribesthatarenotparticipatingintheprogram.Themethodformakingtheadjustment,asdescribedonpage20theAnnex,wastouseindividualsourceallocationsasthemeansofcalculatingstateandtribalspecificcontributionstothemilestones.SincethesubmissionoftheAnnex,ithasbeendeterminedthatthisapproachwasnotpracticable,primarilybecauseoftheadditionaleffortthatwasnecessarytocalculatesourcespecificallocations.ThisproposedsupplementtotheAnnexreliesonemissioninventoryprojections.##TheEPAhasrequested,andtheMarketTradingForumagrees,thattheWRAPprovidespecificstateandtribalemissionsprojectionsthatwillbeusedtomakethemilestoneadjustments.Thiswillprovidethepublic,andstateandtribalpolicymakerstheabilitytobetterunderstandhowthemilestoneswillchangeifspecificstatesandtribesdonotparticipateintheprogram.TheMarketTradingForumrecommendsthattheWRAPsubmittheattachedtablesthatspecifystateand .*- tribalemissionprojections,includingthenewsourcesetaside,toEPAaspartoftheSupplementaryAnnexSubmittal.   HowwilltheStateandTribalProjectionsbeUsed?  t  Thestateandtribalemissionprojectionswillonlybeusedtoadjusttheregionalmilestone, L  includingtheregionalnewsourcesetaside ,andwillnotestablishallocations,budgets, 8  emissioncaps,orindividualobligationsonstatesandtribesintheregion.Oncethemilestonehasbeenadjusted,allocationswillbeestablishedusingthenewregionalnumber,asoutlinedintheAnnex. HowweretheAdjustmentsCalculated?  (  TheregionalmilestonesforSO2werebasedonregionalemissionprojectionsfortheyears2003   through2018,includingassumptionsforemissionreductionsduetotheapplicationofBestAvailableRetrofitTechnology(BART).Theadjustmentsinthetablewerecalculatedbyfirstseparatingtheregionalinventoryprojectionintoseparateprojectionsforindividualstatesandtribes.Newsourcegrowthwasthendistributedbasedonthedistributionofemissionsintheregion.Themilestoneassumptionsweredevelopedtobegoodregionallevelestimates.Theseassumptionshaveamuchlargerdegreeofuncertaintywhenappliedtosmallerareasorgroupsofsources.Forthisreason,thetribalprojectionsweretreateddifferently.Emissionsfromsourcesontriballandswereassumedtoremainconstant,andthenewsourcesetasideadjustmentwasnotcalculatedfortribes.Tribesthatparticipateintheprogramwouldnotfaceanyrestrictionsonnewsourcegrowthbecauseofthewaythenewsourcesetasideadjustmentwascalculated.Thisismerelyareflectionoftheuncertaintysurroundinggrowthandretirementassumptionsfortheseareas.Amoredetaileddescriptionofthemethodologyisattached,includingdetailedspreadsheetsthatwereusedtocalculatethemilestoneadjustments. IsthisDifferentfromtheAnnexRecommendations?  4"  Thisisatechnicaladjustmentthatclarifiestheproceduresthatwillbeusedtorecalculatetheregionalmilestones.WhiletheAnnexincludedprovisionsforadjustingthemilestonesifstatesandtribesdecidedtooptinoroptoutoftheregionalbackstoptradingprogramforSO2,the %4!$ milestoneadjustmentsweretobecalculatedbasedontheallocationmethodologythatisdescribedintheAnnex.TheMarketTradingForumdoesnotexpecttocompleteallocationestimatesforindividualsourcesintheregionuntil2003,whichwouldnotmeetthetimeframerequiredforEPAtoapprovetheAnnex.Therefore,theMarketTradingForumrecommendschangingthemethodologytouseemissioninventoryprojections,asdescribedabove,asthebasisforadjustingthemilestones.'' D-(,  WilltheTribalSetAsidebeAffectedbythisChange?   No.TheTribalSetAsideof20,000tonswillnotbeaffectedbythedecisionofindividualstatesandtribestoparticipateintheregionalbackstoptradingprogramforSO2.Thetribesinthe t regionarestilldiscussingoptionsforhowtobestdistributethisTribalSetAside. WhyareonlyFourTribesIncludedontheList?  8  TheStateandTribalprojectionshavebeencalculatedforallstatesandtribeswithjurisdictionoversourcesthatemitgreaterthan100tons/yearofSO2.Thefourtribesincludedonthelist  L  meetthiscriterion.Anyothertribeintheregionmaychoosetoparticipateintheprogram.Themilestoneswouldnotbeadjustedupwardordownwardwhentheseothertribesjoinedtheprogram. WilltheNewSourceSetAsideAdjustmentsBeaCaponNewSourceGrowthonStateand   TribalLands?    No.Theadjustmentswillonlybeusedforthepurposesofadjustingtheregionalmilestonesandregionalnewsourcesetaside.Theseadjustmentsdonotrepresentacapforindividualstatesandtribes,oralimitationontheconstructionofnewsourcesintheregionasawhole.Ifaparticularstateorstatesdidnotparticipateintheprogram,thenewsourcesetasidewouldbereducedbytheamountlistedforthenonparticipatingstates.Theremainingnewsourcesetasidewouldapplyregionallytoallnewsourcestheregionmadeupoftheparticipatingstatesandtribes.Ifthemilestonewasexceededandthebackstopcapandtradeprogramwastriggered,thissetasidewouldbeallocatedtonewsourcesonafirstcome,firstservedbasisattheregionallevel.Ifthenewsourcesetasideisdepleted,newsourcescouldstillbeconstructed,buttheywouldneedtopurchaseallowancesontheopenmarkettocovertheiroperationsuntilthenextfiveyearperiodbegan(i.e.,in2008or2013).Atthatpoint,thenewsourcesthathadtopurchaseallowancesinordertooperatewouldbefirstinlinetoreceiveaportionofthenewsourcesetaside,gratis.(Seepages30through32oftheAnnexforamorecompleteexplanation.)Thenewsourcesetasidewascalculatedtocoverallexpectednewsourcegrowthintheregion.Newsourceswouldnotneedtopurchaseallocationsunlessgrowthintheregionexceedscurrentforecasts.  #l!  n:*&`>9$ `}%E9$9$ee)%n  p<,(`~0 * `}%E))lr*p "(#"(#(#(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# "(#"(#"(#"(# @-(,"(#"(#