[Code of Federal Regulations]
[Title 40, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR51.121]
[Page 152-159]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 51--REQUIREMENTS FOR PREPARATION, ADOPTION, AND SUBMITTAL OF
IMPLEMENTATION PLANS--Table of Contents
Subpart G--Control Strategy
Sec. 51.121 Findings and requirements for submission of State implementation
plan revisions relating to emissions of oxides of nitrogen.
(a)(1) The Administrator finds that the State implementation plan
(SIP) for each jurisdiction listed in paragraph (c) of this section is
substantially inadequate to comply with the requirements of section
110(a)(2)(D)(i)(I) of the Clean Air Act (CAA), 42 U.S.C.
7410(a)(2)(D)(i)(I), because the SIP does not include adequate
provisions to prohibit sources and other activities from emitting
nitrogen oxides (``NOX'') in amounts that will contribute
significantly to nonattainment in one or more other States with respect
to the 1-hour ozone national ambient air quality standards (NAAQS). Each
of the jurisdictions listed in paragraph (c) of this section must submit
to EPA a SIP revision that cures the inadequacy.
(2) Under section 110(a)(1) of the CAA, 42 U.S.C. 7410(a)(1), the
Administrator determines that each jurisdiction listed in paragraph (c)
of this section must submit a SIP revision to comply with the
requirements of section 110(a)(2)(D)(i)(I), 42 U.S.C.
7410(a)(2)(D)(i)(I), through the adoption of adequate provisions
prohibiting sources and other activities from emitting NOX in
amounts that will contribute significantly to nonattainment in, or
interfere with maintenance by, one or more other States with respect to
the 8-hour ozone NAAQS.
(b)(1) For each jurisdiction listed in paragraph (c) of this
section, the SIP revision required under paragraph (a) of this section
will contain adequate provisions, for purposes of complying with section
110(a)(2)(D)(i)(I) of the CAA, 42 U.S.C. 7410(a)(2)(D)(i)(I), only if
the SIP revision:
(i) Contains control measures adequate to prohibit emissions of
NOX that would otherwise be projected, in accordance with
paragraph (g) of this section, to cause the jurisdiction's overall
NOX emissions to be in excess of the budget for that
jurisdiction described in paragraph (e) of this section (except as
provided in paragraph (b)(2) of this section),
(ii) Requires full implementation of all such control measures by no
later than May 1, 2003, and
(iii) Meets the other requirements of this section. The SIP
revision's compliance with the requirement of paragraph (b)(1)(i) of
this section shall be considered compliance with the jurisdiction's
budget for purposes of this section.
(2) The requirements of paragraph (b)(1)(i) of this section shall be
deemed satisfied, for the portion of the budget covered by an interstate
trading program, if the SIP revision:
(i) Contains provisions for an interstate trading program that EPA
determines will, in conjunction with interstate trading programs for one
or more other jurisdictions, prohibit NOX emissions in excess
of the sum of the portion of the budgets covered by the trading programs
for those jurisdictions; and
(ii) Conforms to the following criteria:
(A) Emissions reductions used to demonstrate compliance with the
revision must occur during the ozone season.
(B) Emissions reductions occurring prior to the year 2003 may be
used by a source to demonstrate compliance with the SIP revision for the
2003 and 2004 ozone seasons, provided the SIP's provisions regarding
such use comply with the requirements of paragraph (e)(3) of this
section.
(C) Emissions reduction credits or emissions allowances held by a
source or other person following the 2003 ozone season or any ozone
season thereafter that are not required to demonstrate compliance with
the SIP for the relevant ozone season may be banked and used to
demonstrate compliance with the SIP in a subsequent ozone season.
(D) Early reductions created according to the provisions in
paragraph (b)(2)(ii)(B) of this section and used in the 2003 ozone
season are not subject to the flow control provisions set forth in
paragraph (b)(2)(ii)(E) of this section.
(E) Starting with the 2004 ozone season, the SIP shall include
provisions to limit the use of banked emissions reduction credits or
emissions allowances
[[Page 153]]
beyond a predetermined amount as calculated by one of the following
approaches:
(1) Following the determination of compliance after each ozone
season, if the total number of emissions reduction credits or banked
allowances held by sources or other persons subject to the trading
program exceeds 10 percent of the sum of the allowable ozone season
NOX emissions for all sources subject to the trading program,
then all banked allowances used for compliance for the following ozone
season shall be subject to the following:
(i) A ratio will be established according to the following formula:
(0.10) x (the sum of the allowable ozone season NOX emissions
for all sources subject to the trading program) / (the total number of
banked emissions reduction credits or emissions allowances held by all
sources or other persons subject to the trading program).
(ii) The ratio, determined using the formula specified in paragraph
(b)(2)(ii)(E)(1)(i) of this section, will be multiplied by the number of
banked emissions reduction credits or emissions allowances held in each
account at the time of compliance determination. The resulting product
is the number of banked emissions reduction credits or emissions
allowances in the account which can be used in the current year's ozone
season at a rate of 1 credit or allowance for every 1 ton of emissions.
The SIP shall specify that banked emissions reduction credits or
emissions allowances in excess of the resulting product either may not
be used for compliance, or may only be used for compliance at a rate no
less than 2 credits or allowances for every 1 ton of emissions.
(2) At the time of compliance determination for each ozone season,
if the total number of banked emissions reduction credits or emissions
allowances held by a source subject to the trading program exceeds 10
percent of the source's allowable ozone season NOX emissions,
all banked emissions reduction credits or emissions allowances used for
compliance in such ozone season by the source shall be subject to the
following:
(i) The source may use an amount of banked emissions reduction
credits or emissions allowances not greater than 10 percent of the
source's allowable ozone season NOX emissions for compliance
at a rate of 1 credit or allowance for every 1 ton of emissions.
(ii) The SIP shall specify that banked emissions reduction credits
or emissions allowances in excess of 10 percent of the source's
allowable ozone season NOX emissions may not be used for
compliance, or may only be used for compliance at a rate no less than 2
credits or allowances for every 1 ton of emissions.
(c) The following jurisdictions (hereinafter referred to as
``States'') are subject to the requirements of this section: Alabama,
Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Maryland,
Massachusetts, Michigan, Missouri, New Jersey, New York, North Carolina,
Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia,
West Virginia, Wisconsin, and the District of Columbia.
(d)(1) The SIP submissions required under paragraph (a) of this
section must be submitted to EPA by no later than September 30, 1999.
(2) The State makes an official submission of its SIP revision to
EPA only when:
(i) The submission conforms to the requirements of appendix V to
this part; and
(ii) The State delivers five copies of the plan to the appropriate
Regional Office, with a letter giving notice of such action.
(e)(1) The NOX budget for a State listed in paragraph (c)
of this section is defined as the total amount of NOX
emissions from all sources in that State, as indicated in paragraph
(e)(2) of this section with respect to that State, which the State must
demonstrate that it will not exceed in the 2007 ozone season pursuant to
paragraph (g)(1) of this section.
(2) The State-by-State amounts of the NOX budget,
expressed in tons per ozone season, are as follows:
------------------------------------------------------------------------
State Budget
------------------------------------------------------------------------
Alabama.................................................... 172,619
Connecticut................................................ 42,849
Delaware................................................... 22,861
District of Columbia....................................... 6,658
Georgia.................................................... 188,572
Illinois................................................... 270,560
Indiana.................................................... 229,965
[[Page 154]]
Kentucky................................................... 162,272
Maryland................................................... 81,898
Massachusetts.............................................. 84,848
Michigan................................................... 229,702
Missouri................................................... 125,603
New Jersey................................................. 96,876
New York................................................... 240,288
North Carolina............................................. 165,022
Ohio....................................................... 249,274
Pennsylvania............................................... 257,592
Rhode Island............................................... 9,378
South Carolina............................................. 123,105
Tennessee.................................................. 198,045
Virginia................................................... 180,195
West Virginia.............................................. 83,833
Wisconsin.................................................. 135,771
------------
Total.................................................. 3,357,786
------------------------------------------------------------------------
(3)(i) Notwithstanding the State's obligation to comply with the
budgets set forth in paragraph (e)(2) of this section, a SIP revision
may allow sources required by the revision to implement NOX
emission control measures by May 1, 2003 to demonstrate compliance in
the 2003 and 2004 ozone seasons using credit issued from the State's
compliance supplement pool, as set forth in paragraph (e)(3)(iii) of
this section.
(ii) A source may not use credit from the compliance supplement pool
to demonstrate compliance after the 2004 ozone season.
(iii) The State-by-State amounts of the compliance supplement pool
are as follows:
------------------------------------------------------------------------
Compliance
supplement
State pool (tons
of NOX)
------------------------------------------------------------------------
Alabama.................................................... 11,687
Connecticut................................................ 569
Delaware................................................... 168
District of Columbia....................................... 0
Georgia.................................................... 11,440
Illinois................................................... 17,688
Indiana.................................................... 19,915
Kentucky................................................... 13,520
Maryland................................................... 3,882
Massachusetts.............................................. 404
Michigan................................................... 11,356
Missouri................................................... 11,199
New Jersey................................................. 1,550
New York................................................... 2,764
North Carolina............................................. 10,737
Ohio....................................................... 22,301
Pennsylvania............................................... 15,763
Rhode Island............................................... 15
South Carolina............................................. 5,344
Tennessee.................................................. 10,565
Virginia................................................... 5,504
West Virginia.............................................. 16,709
Wisconsin.................................................. 6,920
------------
Total.................................................. 200,000
------------------------------------------------------------------------
(iv) The SIP revision may provide for the distribution of the
compliance supplement pool to sources that are required to implement
control measures using one or both of the following two mechanisms:
(A) The State may issue some or all of the compliance supplement
pool to sources that implement emissions reductions during the ozone
season beyond all applicable requirements in years prior to the year
2003 according to the following provisions:
(1) The State shall complete the issuance process by no later than
May 1, 2003.
(2) The emissions reduction may not be required by the State's SIP
or be otherwise required by the CAA.
(3) The emissions reduction must be verified by the source as
actually having occurred during an ozone season between September 30,
1999 and May 1, 2003.
(4) The emissions reduction must be quantified according to
procedures set forth in the SIP revision and approved by EPA. Emissions
reductions implemented by sources serving electric generators with a
nameplate capacity greater than 25 MWe, or boilers, combustion turbines
or combined cycle units with a maximum design heat input greater than
250 mmBtu/hr, must be quantified according to the requirements in
paragraph (i)(4) of this section.
(5) If the SIP revision contains approved provisions for an
emissions trading program, sources that receive credit according to the
requirements of this paragraph may trade the credit to other sources or
persons according to the provisions in the trading program.
(B) The State may issue some or all of the compliance supplement
pool to sources that demonstrate a need for an extension of the May 1,
2003 compliance deadline according to the following provisions:
(1) The State shall initiate the issuance process by the later date
of September 30, 2002 or after the State issues credit according to the
procedures in paragraph (e)(3)(iv)(A) of this section.
(2) The State shall complete the issuance process by no later than
May 1, 2003.
[[Page 155]]
(3) The State shall issue credit to a source only if the source
demonstrates the following:
(i) For a source used to generate electricity, compliance with the
SIP revision's applicable control measures by May 1, 2003, would create
undue risk for the reliability of the electricity supply. This
demonstration must include a showing that it would not be feasible to
import electricity from other electricity generation systems during the
installation of control technologies necessary to comply with the SIP
revision.
(ii) For a source not used to generate electricity, compliance with
the SIP revision's applicable control measures by May 1, 2003, would
create undue risk for the source or its associated industry to a degree
that is comparable to the risk described in paragraph
(e)(3)(iv)(B)(3)(i) of this section.
(iii) For a source subject to an approved SIP revision that allows
for early reduction credits in accordance with paragraph (e)(3)(iv)(A)
of this section, it was not possible for the source to comply with
applicable control measures by generating early reduction credits or
acquiring early reduction credits from other sources.
(iv) For a source subject to an approved emissions trading program,
it was not possible to comply with applicable control measures by
acquiring sufficient credit from other sources or persons subject to the
emissions trading program.
(4) The State shall ensure the public an opportunity, through a
public hearing process, to comment on the appropriateness of allocating
compliance supplement pool credits to a source under paragraph
(e)(3)(iv)(B) of this section.
(4) If, no later than February 22, 1999, any member of the public
requests revisions to the source-specific data and vehicle miles
traveled (VMT) and nonroad mobile growth rates, VMT distribution by
vehicle class, average speed by roadway type, inspection and maintenance
program parameters, and other input parameters used to establish the
State budgets set forth in paragraph (e)(2) of this section or the 2007
baseline sub-inventory information set forth in paragraph (g)(2)(ii) of
this section, then EPA will act on that request no later than April 23,
1999 provided:
(i) The request is submitted in electronic format;
(ii) Information is provided to corroborate and justify the need for
the requested modification;
(iii) The request includes the following data information regarding
any electricity-generating source at issue:
(A) Federal Information Placement System (FIPS) State Code;
(B) FIPS County Code;
(C) Plant name;
(D) Plant ID numbers (ORIS code preferred, State agency tracking
number also or otherwise);
(E) Unit ID numbers (a unit is a boiler or other combustion device);
(F) Unit type;
(G) Primary fuel on a heat input basis;
(H) Maximum rated heat input capacity of unit;
(I) Nameplate capacity of the largest generator the unit serves;
(J) Ozone season heat inputs for the years 1995 and 1996;
(K) 1996 (or most recent) average NOX rate for the ozone
season;
(L) Latitude and longitude coordinates;
(M) Stack parameter information ;
(N) Operating parameter information;
(O) Identification of specific change to the inventory; and
(P) Reason for the change;
(iv) The request includes the following data information regarding
any non-electricity generating point source at issue:
(A) FIPS State Code;
(B) FIPS County Code;
(C) Plant name;
(D) Facility primary standard industrial classification code (SIC);
(E) Plant ID numbers (NEDS, AIRS/AFS, and State agency tracking
number also or otherwise);
(F) Unit ID numbers (a unit is a boiler or other combustion device);
(G) Primary source classification code (SCC);
(H) Maximum rated heat input capacity of unit;
(I) 1995 ozone season or typical ozone season daily NOX
emissions;
[[Page 156]]
(J) 1995 existing NOX control efficiency;
(K) Latitude and longitude coordinates;
(L) Stack parameter information;
(M) Operating parameter information;
(N) Identification of specific change to the inventory; and
(O) Reason for the change;
(v) The request includes the following data information regarding
any stationary area source or nonroad mobile source at issue:
(A) FIPS State Code;
(B) FIPS County Code;
(C) Primary source classification code (SCC);
(D) 1995 ozone season or typical ozone season daily NOX
emissions;
(E) 1995 existing NOX control efficiency;
(F) Identification of specific change to the inventory; and
(G) Reason for the change;
(vi) The request includes the following data information regarding
any highway mobile source at issue:
(A) FIPS State Code;
(B) FIPS County Code;
(C) Primary source classification code (SCC) or vehicle type;
(D) 1995 ozone season or typical ozone season daily vehicle miles
traveled (VMT);
(E) 1995 existing NOX control programs;
(F) identification of specific change to the inventory; and
(G) reason for the change.
(f) Each SIP revision must set forth control measures to meet the
NOX budget in accordance with paragraph (b)(1)(i) of this
section, which include the following:
(1) A description of enforcement methods including, but not limited
to:
(i) Procedures for monitoring compliance with each of the selected
control measures;
(ii) Procedures for handling violations; and
(iii) A designation of agency responsibility for enforcement of
implementation.
(2) Should a State elect to impose control measures on fossil fuel-
fired NOX sources serving electric generators with a
nameplate capacity greater than 25 MWe or boilers, combustion turbines
or combined cycle units with a maximum design heat input greater than
250 mmBtu/hr as a means of meeting its NOX budget, then those
measures must:
(i)(A) Impose a NOX mass emissions cap on each source;
(B) Impose a NOX emissions rate limit on each source and
assume maximum operating capacity for every such source for purposes of
estimating mass NOX emissions; or
(C) Impose any other regulatory requirement which the State has
demonstrated to EPA provides equivalent or greater assurance than
options in paragraphs (f)(2)(i)(A) or (f)(2)(i)(B) of this section that
the State will comply with its NOX budget in the 2007 ozone
season; and
(ii) Impose enforceable mechanisms, in accordance with paragraphs
(b)(1) (i) and (ii) of this section, to assure that collectively all
such sources, including new or modified units, will not exceed in the
2007 ozone season the total NOX emissions projected for such
sources by the State pursuant to paragraph (g) of this section.
(3) For purposes of paragraph (f)(2) of this section, the term
``fossil fuel-fired'' means, with regard to a NOX source:
(i) The combustion of fossil fuel, alone or in combination with any
other fuel, where fossil fuel actually combusted comprises more than 50
percent of the annual heat input on a Btu basis during any year starting
in 1995 or, if a NOX source had no heat input starting in
1995, during the last year of operation of the NOX source
prior to 1995; or
(ii) The combustion of fossil fuel, alone or in combination with any
other fuel, where fossil fuel is projected to comprise more than 50
percent of the annual heat input on a Btu basis during any year;
provided that the NOX source shall be ``fossil fuel-fired''
as of the date, during such year, on which the NOX source
begins combusting fossil fuel.
(g)(1) Each SIP revision must demonstrate that the control measures
contained in it are adequate to provide for the timely compliance with
the State's NOX budget during the 2007 ozone season.
[[Page 157]]
(2) The demonstration must include the following:
(i) Each revision must contain a detailed baseline inventory of
NOX mass emissions from the following sources in the year
2007, absent the control measures specified in the SIP submission:
electric generating units (EGU), non-electric generating units (non-
EGU), area, nonroad and highway sources. The State must use the same
baseline emissions inventory that EPA used in calculating the State's
NOX budget, as set forth for the State in paragraph
(g)(2)(ii) of this section, except that EPA may direct the State to use
different baseline inventory information if the State fails to certify
that it has implemented all of the control measures assumed in
developing the baseline inventory.
(ii) The revised NOX emissions sub-inventories for each
State, expressed in tons per ozone season, are as follows:
----------------------------------------------------------------------------------------------------------------
State EGU Non-EGU Area Nonroad Highway Total
----------------------------------------------------------------------------------------------------------------
Alabama....................................... 29,022 43,415 28,762 20,146 51,274 172,619
Connecticut................................... 2,652 5,216 4,821 10,736 19,424 42,849
Delaware...................................... 5,250 2,473 1,129 5,651 8,358 22,861
District of Columbia.......................... 207 282 830 3,135 2,204 6,658
Georgia....................................... 30,402 29,716 13,212 26,467 88,775 188,572
Illinois...................................... 32,372 59,577 9,369 56,724 112,518 270,560
Indiana....................................... 47,731 47,363 29,070 26,494 79,307 229,965
Kentucky...................................... 36,503 25,669 31,807 15,025 53,268 162,272
Maryland...................................... 14,656 12,585 4,448 20,026 30,183 81,898
Massachusetts................................. 15,146 10,298 11,048 20,166 28,190 84,848
Michigan...................................... 32,228 60,055 31,721 26,935 78,763 229,702
Missouri...................................... 24,216 21,602 7,341 20,829 51,615 125,603
New Jersey.................................... 10,250 15,464 12,431 23,565 35,166 96,876
New York...................................... 31,036 25,477 17,423 42,091 124,261 240,288
North Carolina................................ 31,821 26,434 11,067 22,005 73,695 165,022
Ohio.......................................... 48,990 40,194 21,860 43,380 94,850 249,274
Pennsylvania.................................. 47,469 70,132 17,842 30,571 91,578 257,592
Rhode Island.................................. 997 1,635 448 2,455 3,843 9,378
South Carolina................................ 16,772 27,787 9,415 14,637 54,494 123,105
Tennessee..................................... 25,814 39,636 13,333 52,920 66,342 198,045
Virginia...................................... 17,187 35,216 27,738 27,859 72,195 180,195
West Virginia................................. 26,859 20,238 5,459 10,433 20,844 83,833
Wisconsin..................................... 17,381 19,853 11,253 17,965 69,319 135,771
-----------------------------------------------------------------
Total..................................... 544,961 640,317 321,827 540,215 1,310,466 3,357,786
----------------------------------------------------------------------------------------------------------------
Note to paragraph (g)(2)(ii): Totals may not sum due to rounding.
(iii) Each revision must contain a summary of NOX mass
emissions in 2007 projected to result from implementation of each of the
control measures specified in the SIP submission and from all
NOX sources together following implementation of all such
control measures, compared to the baseline 2007 NOX emissions
inventory for the State described in paragraph (g)(2)(i) of this
section. The State must provide EPA with a summary of the computations,
assumptions, and judgments used to determine the degree of reduction in
projected 2007 NOX emissions that will be achieved from the
implementation of the new control measures compared to the baseline
emissions inventory.
(iv) Each revision must identify the sources of the data used in the
projection of emissions.
(h) Each revision must comply with Sec. 51.116 of this part
(regarding data availability).
(i) Each revision must provide for monitoring the status of
compliance with any control measures adopted to meet the NOX
budget. Specifically, the revision must meet the following requirements:
(1) The revision must provide for legally enforceable procedures for
requiring owners or operators of stationary sources to maintain records
of and periodically report to the State:
(i) Information on the amount of NOX emissions from the
stationary sources; and
[[Page 158]]
(ii) Other information as may be necessary to enable the State to
determine whether the sources are in compliance with applicable portions
of the control measures;
(2) The revision must comply with Sec. 51.212 of this part
(regarding testing, inspection, enforcement, and complaints);
(3) If the revision contains any transportation control measures,
then the revision must comply with Sec. 51.213 of this part (regarding
transportation control measures);
(4) If the revision contains measures to control fossil fuel-fired
NOX sources serving electric generators with a nameplate
capacity greater than 25 MWe or boilers, combustion turbines or combined
cycle units with a maximum design heat input greater than 250 mmBtu/hr,
then the revision must require such sources to comply with the
monitoring provisions of part 75, subpart H.
(5) For purposes of paragraph (i)(4) of this section, the term
``fossil fuel-fired'' means, with regard to a NOX source:
(i) The combustion of fossil fuel, alone or in combination with any
other fuel, where fossil fuel actually combusted comprises more than 50
percent of the annual heat input on a Btu basis during any year starting
in 1995 or, if a NOX source had no heat input starting in
1995, during the last year of operation of the NOX source
prior to 1995; or
(ii) The combustion of fossil fuel, alone or in combination with any
other fuel, where fossil fuel is projected to comprise more than 50
percent of the annual heat input on a Btu basis during any year,
provided that the NOX source shall be ``fossil fuel-fired''
as of the date, during such year, on which the NOX source
begins combusting fossil fuel.
(j) Each revision must show that the State has legal authority to
carry out the revision, including authority to:
(1) Adopt emissions standards and limitations and any other measures
necessary for attainment and maintenance of the State's NOX
budget specified in paragraph (e) of this section;
(2) Enforce applicable laws, regulations, and standards, and seek
injunctive relief;
(3) Obtain information necessary to determine whether air pollution
sources are in compliance with applicable laws, regulations, and
standards, including authority to require recordkeeping and to make
inspections and conduct tests of air pollution sources;
(4) Require owners or operators of stationary sources to install,
maintain, and use emissions monitoring devices and to make periodic
reports to the State on the nature and amounts of emissions from such
stationary sources; also authority for the State to make such data
available to the public as reported and as correlated with any
applicable emissions standards or limitations.
(k)(1) The provisions of law or regulation which the State
determines provide the authorities required under this section must be
specifically identified, and copies of such laws or regulations must be
submitted with the SIP revision.
(2) Legal authority adequate to fulfill the requirements of
paragraphs (j)(3) and (4) of this section may be delegated to the State
under section 114 of the CAA.
(l)(1) A revision may assign legal authority to local agencies in
accordance with Sec. 51.232 of this part.
(2) Each revision must comply with Sec. 51.240 of this part
(regarding general plan requirements).
(m) Each revision must comply with Sec. 51.280 of this part
(regarding resources).
(n) For purposes of the SIP revisions required by this section, EPA
may make a finding as applicable under section 179(a)(1)-(4) of the CAA,
42 U.S.C. 7509(a)(1)-(4), starting the sanctions process set forth in
section 179(a) of the CAA. Any such finding will be deemed a finding
under Sec. 52.31(c) of this part and sanctions will be imposed in
accordance with the order of sanctions and the terms for such sanctions
established in Sec. 52.31 of this part.
(o) Each revision must provide for State compliance with the
reporting requirements set forth in Sec. 51.122 of this part.
(p)(1) Notwithstanding any other provision of this section, if a
State adopts regulations substantively identical to 40 CFR part 96 (the
model NOX budget
[[Page 159]]
trading program for SIPs), incorporates such part by reference into its
regulations, or adopts regulations that differ substantively from such
part only as set forth in paragraph (p)(2) of this section, then that
portion of the State's SIP revision is automatically approved as
satisfying the same portion of the State's NOX emission
reduction obligations as the State projects such regulations will
satisfy, provided that:
(i) The State has the legal authority to take such action and to
implement its responsibilities under such regulations, and
(ii) The SIP revision accurately reflects the NOX
emissions reductions to be expected from the State's implementation of
such regulations.
(2) If a State adopts an emissions trading program that differs
substantively from 40 CFR part 96 in only the following respects, then
such portion of the State's SIP revision is approved as set forth in
paragraph (p)(1) of this section:
(i) The State may expand the applicability provisions of the trading
program to include units (as defined in 40 CFR 96.2) that are smaller
than the size criteria thresholds set forth in 40 CFR 96.4(a);
(ii) The State may decline to adopt the exemption provisions set
forth in 40 CFR 96.4(b);
(iii) The State may decline to adopt the opt-in provisions set forth
in subpart I of 40 CFR part 96;
(iv) The State may decline to adopt the allocation provisions set
forth in subpart E of 40 CFR part 96 and may instead adopt any
methodology for allocating NOX allowances to individual
sources, provided that:
(A) The State's methodology does not allow the State to allocate
NOX allowances in excess of the total amount of
NOX emissions which the State has assigned to its trading
program; and
(B) The State's methodology conforms with the timing requirements
for submission of allocations to the Administrator set forth in 40 CFR
96.41; and
(v) The State may decline to adopt the early reduction credit
provisions set forth in 40 CFR 96.55(c) and may instead adopt any
methodology for issuing credit from the State's compliance supplement
pool that complies with paragraph (e)(3) of this section.
(3) If a State adopts an emissions trading program that differs
substantively from 40 CFR part 96 other than as set forth in paragraph
(p)(2) of this section, then such portion of the State's SIP revision is
not automatically approved as set forth in paragraph (p)(1) of this
section but will be reviewed by the Administrator for approvability in
accordance with the other provisions of this section.
(q) Stay of Findings of Significant Contribution with respect to the
8-hour standard. Notwithstanding any other provisions of this subpart,
the effectiveness of paragraph (a)(2) of this section is stayed.
[63 FR 57491, Oct. 27, 1998, as amended at 63 FR 71225, Dec. 24, 1998;
64 FR 26305, May 14, 1999; 65 FR 11230, Mar. 2, 2000; 65 FR 56251, Sept.
18, 2000]