Approval and Promulgation of Implementation Plans; State of MO

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: August 11, 2003 (Volume 68, Number 154)]
[Rules and Regulations]
[Page 47466-47468]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au03-13]

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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[MO 188-1188a; FRL-7542-3]

AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.

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SUMMARY: EPA is announcing it is approving a revision to the Missouri
State Implementation Plan (SIP) which establishes a state-wide air
emissions banking and trading program. Approval of this revision will
ensure consistency between the state and Federally-approved rules, and
ensure Federal enforceability of the current state rules.

DATES: This direct final rule will be effective October 10, 2003,
unless EPA receives adverse comments by September 10, 2003. If adverse
comments are received, EPA will publish a timely withdrawal of the
direct final rule in the Federal Register informing the public that the
rule will not take effect.

ADDRESSES: Comments may be submitted either by mail or electronically.
Written comments should be submitted to Wayne Kaiser, Environmental
Protection Agency, Air Planning and Development Branch, 901 North 5th
Street, Kansas City, Kansas 66101. Electronic comments should be sent
either to kaiser.wayne@epa.gov. or to http://www.regulations.gov,
which is an alternative method for submitting electronic comments to EPA.
To submit comments, please follow the detailed instructions described in
``What action is EPA taking'' in the SUPPLEMENTARY INFORMATION section.
Copies of documents relative to this action are available for
public inspection during normal business hours at the above-listed
Region 7 location. The interested persons wanting to examine these
documents should make an appointment with the office at least 24 hours
in advance.

FOR FURTHER INFORMATION CONTACT: Wayne Kaiser at (913) 551-7603, or by
e-mail at kaiser.wayne@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. This section provides
additional information by addressing the following questions:

What Is a SIP?
What Is the Federal Approval Process for a SIP?
What Does Federal Approval of a State Regulation Mean to Me?
What Is Being Addressed in This Document?
Have the Requirements for Approval of a SIP Revision Been Met?
What Action Is EPA Taking?

What Is a SIP?

Section 110 of the Clean Air Act (CAA) requires states to develop
air pollution regulations and control strategies to ensure that state
air quality meets the national ambient air quality standards
established by EPA. These ambient standards are established under
section 109 of the CAA, and they currently address six criteria
pollutants. These pollutants are: Carbon monoxide, nitrogen dioxide,
ozone, lead, particulate matter, and sulfur dioxide.
Each state must submit these regulations and control strategies to
us for approval and incorporation into the Federally-enforceable SIP.
Each Federally-approved SIP protects air quality primarily by
addressing air pollution at its point of origin. These SIPs can be
extensive, containing state regulations or other enforceable documents
and supporting information such as emission inventories, monitoring
networks, and modeling demonstrations.

What Is the Federal Approval Process for a SIP?

In order for state regulations to be incorporated into the
Federally-enforceable SIP, states must formally adopt the regulations
and control strategies consistent with state and Federal requirements.
This process generally includes a public notice, public hearing, public
comment period, and a formal adoption by a state-authorized rulemaking
body.
Once a state rule, regulation, or control strategy is adopted, the
state submits it to us for inclusion into the SIP. We must provide
public notice and seek additional public comment regarding the proposed
Federal action on the state submission. If adverse comments are
received, they must be addressed prior to any final Federal action by
us.
All state regulations and supporting information approved by EPA
under section 110 of the CAA are incorporated into the Federally-
approved SIP. Records of such SIP actions are maintained in the Code of
Federal Regulations (CFR) at Title 40, Part 52, entitled ``Approval and
Promulgation of Implementation Plans.'' The actual state regulations
which are approved are not reproduced in their entirety in the CFR
outright but are ``incorporated by reference,'' which means that we
have approved a given state regulation with a specific effective date.

What Does Federal Approval of a State Regulation Mean to Me?

Enforcement of the state regulation before and after it is
incorporated into the Federally-approved SIP is primarily a state
responsibility. However, after the regulation is Federally approved, we
are authorized to take enforcement action against violators. Citizens
are also offered legal recourse to address violations as described in
section 304 of the CAA.

What Is Being Addressed in This Document?

10 CSR 10-6.410 Emissions Banking and Trading

In order to fulfill the requirements of Section 643.220 of the
Revised Statutes of Missouri, the Missouri Department of Natural
Resources (MDNR) proposed and adopted a new emissions banking and
trading rule, 10 CSR 10-6.410. This rule became effective on April 30,
2003.
Banking and trading programs are a market-based approach to
improving air quality. The basic unit for transactions in this program
is the emission reduction credit (ERC), which is a certified, permanent
emission reduction equal to one ton per year of a criteria pollutant or
precursor. A facility generates ERCs by voluntarily emitting below
applicable requirements. As this new, lower emission level is
incorporated into the facility's operating permit, this reduction is
permanent. These credits can be traded, sold, or banked for later use.
Another facility can purchase these credits and use them to offset
emissions from expansion of existing facilities or construction of new
facilities. ERCs cannot be used to avoid New Source Review (NSR)
applicability or requirements for technology-based standards such as
lowest achievable emission rate, best available control technology or
reasonably available control technology. Credits can also be purchased
to be retired, thereby reducing potential emissions in an area.
Missouri's emissions banking and trading program contains a number
of measures to ensure that air quality is protected. First of all, ERCs
must be real, properly quantified, permanent and surplus (not already
relied upon or required by the SIP, a state or local law, ordinance or
regulation, the Clean Air Act or other Federal law or regulation, an
enforcement action, or a consent decree). Second, ERCs may only be used
in the same maintenance area, nonattainment area or modeling domain in
which they were generated. ERCs

[[Page 47467]]

may be used to offset only emissions of the same criteria pollutant or
precursor as were reduced to generate them. For example, volatile
organic compound (VOC) reductions may only be used to offset VOC
emissions. If credits are to be used in an area subject to an offset
ratio, enough credits must be purchased to compensate for emissions
plus the area's offset ratio. These credits are permanently retired.
Also, the available emissions credits in an area are reduced by an
annual three per cent (3%) from the pool of banked credits. Finally,
nothing in the rule is intended to limit the authority of the Missouri
Air Conservation Commission to terminate or limit a facility's
authorization to emit.
We note, in particular, that the new rule merely provides a
mechanism for tracking ERCs. It does not in any way impact how ERCs may
be used under rules such as Missouri's prevention of significant
deterioration and nonattainment new source review programs (10 CSR 10-
6.410(3)(B)5).
The management of the emissions banking and trading program will be
handled by the Air Pollution Control Program (APCP) of the MDNR.

10 CSR 10-6.060 Construction Permits Required

The offset and banking provisions of this rule were deleted since
these provisions were incorporated into the new emissions banking and
trading rule. Specifically, Appendix C, Offsets, and Appendix D,
Banking, were deleted. Additionally, references to these appendices
were deleted and references to the new banking and trading rule were
added in sections (7)(B), (8)(C), and (8)(E). This revision became
effective April 30, 2003.
The state submittal has met the public notice requirements for SIP
submissions in accordance with 40 CFR 51.102. The submittal also
satisfied the completeness criteria of 40 CFR part 51, appendix V. In
addition, as explained above and in more detail in the technical
support document which is part of this document, the revision meets the
substantive SIP requirements of the CAA, including section 110 and
implementing regulations.

What Action Is EPA Taking?

We are approving as an amendment to the Missouri SIP a revision to
rule 10 CSR 10-6.060 and new rule 10 CSR 10-6.410, which were effective
in the state on April 30, 2003.
We are processing this action as a final action because the
revisions make routine changes to the existing rules which are
noncontroversial. Therefore, we do not anticipate any adverse comments.
Please note that if EPA receives adverse comment on part of this rule
and if that part can be severed from the remainder of the rule, EPA may
adopt as final those parts of the rule that are not the subject of an
adverse comment.
You may submit comments either electronically or by mail. To ensure
proper receipt by EPA, identify the appropriate rulemaking
identification number, MO 188-1188a, in the subject line on the first
page of your comment. Please ensure that your comments are submitted
within the specified comment period. Comments received after the close
of the comment period will be marked ``late.'' EPA is not required to
consider these late comments.
1. Electronically. If you submit an electronic comment as
prescribed below, EPA recommends that you include your name, mailing
address, and an e-mail address or other contact information in the body
of your comment. This ensures that you can be identified as the
submitter of the comment and allows EPA to contact you in case EPA
cannot read your comment due to technical difficulties or needs further
information on the substance of your comment. EPA's policy is that EPA
will not edit your comment, and any identifying or contact information
provided in the body of a comment will be included as part of the
comment that is placed in the official public docket. If EPA cannot
read your comment due to technical difficulties and cannot contact you
for clarification, EPA may not be able to consider your comment.
a. Electronic mail. Comments may be sent by e-mail to
kaiser.wayne@epa.gov. Please include identification number, MO 188-
1188a, in the subject line. EPA's e-mail system is not an ``anonymous
access'' system. If you send an e-mail comment directly without going
through Regulations.gov, EPA's e-mail system automatically captures
your e-mail address. E-mail addresses that are automatically captured
by EPA's e-mail system are included as part of the comment that is
placed in the official public docket.
b. Regulations.gov. Your use of Regulations.gov is an alternative
method of submitting electronic comments to EPA. Go directly to http://
www.regulations.gov, click on ``To Search for Regulations,'' then
select Environmental Protection Agency and use the ``go'' button. The
list of current EPA actions available for comment will be listed.
Please follow the online instructions for submitting comments. The
system is an ``anonymous access'' system, which means EPA will not know
your identity, e-mail address, or other contact information unless you
provide it in the body of your comment.
2. By Mail. Written comments should be sent to the name and address
listed in the ADDRESSES section of this document.

Statutory and Executive Order Reviews

Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely approves state law as meeting Federal requirements and imposes
no additional requirements beyond those imposed by state law.
Accordingly, the Administrator certifies that this rule will not have a
significant economic impact on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because
this rule approves pre-existing requirements under state law and does
not impose any additional enforceable duty beyond that required by
state law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4).
This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175
(65 FR 67249, November 9, 2000). This action also does not have Federalism
implications because it does not have substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government, as specified in Executive Order 13132
(64 FR 43255, August 10, 1999). This action merely approves a state rule
implementing a Federal standard, and does not alter the relationship or
the distribution of power and responsibilities established in the CAA.
This rule also is not subject to Executive Order 13045, ``Protection of
Children from Environmental Health Risks and Safety Risks'' (62 FR
19885, April 23, 1997), because it is not economically significant.
In reviewing SIP submissions, EPA's role is to approve state
choices,

[[Page 47468]]

provided that they meet the criteria of the CAA. In this context, in
the absence of a prior existing requirement for the State to use
voluntary consensus standards (VCS), EPA has no authority to disapprove
a SIP submission for failure to use VCS. It would thus be inconsistent
with applicable law for EPA, when it reviews a SIP submission, to use
VCS in place of a SIP submission that otherwise satisfies the
provisions of the CAA. Thus, the requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) do not apply. This rule does not impose an information collection
burden under the provisions of the Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.).
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by October 10, 2003. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action may not be challenged later in proceedings to enforce its
requirements. (See section 307(b)(2).)

List of Subjects 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Particulate matter, Ozone, Reporting and recordkeeping
requirements, Sulfur dioxide, Volatile organic compounds.

Dated: July 31, 2003.
William Rice,
Acting Regional Administrator, Region 7.

? Chapter I, title 40 of the Code of Federal Regulations is amended as
follows:

PART 52--[AMENDED]

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

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

Subpart AA--Missouri

? 2. In Sec. 52.1320(c) the table is amended under chapter 6 by revising
the entry for 10-6.060 and adding a new entry for 10-6.410 to read as
follows:

Sec. 52.1320 Identification of plan.

* * * * *
(c) * * *

EPA-Approved Missouri Regulations
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State
Missouri citation Title effective date EPA approval date Explanation
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Missouri Department of Natural Resources
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------
Chapter 6--Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control
Regulations for the State of Missouri
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------
10-6.060......................... Construction 4/30/03 August 11, 2003 and Section 9,
Permits Required. [FR page citation]. pertaining to
hazardous air
pollutants, is not
SIP approved.
----------------------------------
* * * * * * *
----------------------------------
10-6.410......................... Emissions Banking 4/30/03 August 11, 2003 and
and Trading. [FR page citation].
----------------------------------
* * * * * * *
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[FR Doc. 03-20300 Filed 8-8-03; 8:45 am]
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Approval and Promulgation of Implementation Plans; State of MO

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