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C   $X;XXX  21    _Inadditiontothesetwofactors,OTAGconsideredthree  otherfactorsinestablishingthegeographicresolution,  overallsize,andtheextentofthefinegrid.Theseother  factorsdealtwiththecomputerlimitationsandthe | resolutionofavailablemodelinputs.25+M 0_level8   pp x 23  ..  5+ ` hp x 5  22+M 0_level9    x 23  ..  5+ ` hp x 5  <6X9`(Courier New2JM 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  (ZEGMSY_ekqAutoList87A.A.A.A.A.A.A.A.A.www.epa.gov/ttnotag/otag/finalrpt/2AM 0_levsl4  ` ) hp x )23  Ԁ  5+ ` hp x 5  2>M 0_levsl5   &hhp x &23  Ԁ  5+ ` hp x 5  %2A`ArialTable_A2;M 0_levsl6   #p x #23  Ԁ  5+ ` hp x 5  28M 0_levsl7  h  p x 23  Ԁ  5+ ` hp x 5  (EGMSY_ekqAutoList451.1.1.1.1.1.1.1.(JEGMSY_ekqAutoList46A.A.A.A.A.A.A.A.25M 0_levsl8   pp x 23  Ԁ  5+ ` hp x 5  (%EGMSY_ekqAutoList891.1.1.1.1.1.1.1.22M 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  mailto:allman.joann@epa.gov.http://www.epa.gov/ttn/rto/whatsnew.htmlmailto:A-and-R-Docket@epa.gov.http://www.epa.gov/ttn/rto/        $X;XXX  24    _PursuanttothecourtsorderliftingthestayoftheSIP  submissionobligation,the20States,includingAlabamaand  Michigan,wererequiredtosubmitSIPsinresponsetothe  SIPCallbyOctober30,2000.Asdiscussedabove,in | lettersdatedApril11,2000toStateGovernors,weprovided jP thattheStatesthatremainedsubjecttotheSIPCallcould >$ choosetosubmitSIPsmeetingonlythePhaseIemissions   budgetforeachState.WithrespecttoAlabamaand   Michigan,wealsoprovidedthatAlabamaandMichigancould   choosetosubmitSIPsthataddressemissionsonlyinthe  t  finegridportionoftheState.2AM 0_levnl4  ` ) hp x )23   5+ ` hp x 5  2>M 0_levnl5   &hhp x &23   5+ ` hp x 5   $X;XXX  1    _October30,2000wasthefirstbusinessdayfollowingthe  expirationofthe128dayperiod.2;M 0_levnl6   #p x #23   5+ ` hp x 5  28M 0_levnl7  h  p x 23   5+ ` hp x 5  1.25M 0_levnl8   pp x 23   5+ ` hp x 5    $X;XXX  2    _\X;XXX;#X;XX\X;t#\X;XXX;ThePhaseIemissionsreductionsshouldachieve  approximately90percentofthetotalemissionsreductions  calledforbytheNOxSIPCall.#X;XX\X;#  $X;XXX  25    _ԀWeassumedthatsourcesinStatesaffectedundertheOTC e MOUandtheSection126actionwillinstallcontrolsbyMay 9 1,2003,butsourcesintheotherStatesaffectedbytheSIP   Call(Alabama,Illinois,SouthCarolina,Tennesseeand | portionsofIndiana,Kentucky,andMichigan)willhaveuntil P  May31,2004toinstallcontrols.Inthisaction,weare  proposingthatGeorgiaandMissouriwillhaveuntilMay1,  2005toinstallcontrols.Sourcesthatwillnothaveto  completeinstallationofcontrolsuntilMay31,2004 X| representapproximately40percentofthegeneration , P capacityintheSIPCallRegion.newtogether712.wpd  $9 ' jking0jking .   22M 0_levnl9    x 23   5+ ` hp x 5  (եEGMSY_ekqAutoList901.1.1.1.1.1.1.1. 8 $X;XXX  26    _Arkansas,Florida,Iowa,Kansas,Louisiana,Maine, e Minnesota,Mississippi,NorthDakota,Nebraska,New 9 Hampshire,Oklahoma,SouthDakota,Texas,Vermont.(zEGMSY_ekqAutoList61A.A.A.A.A.A.A.A.1.(EGMSY_ekqAutoList911.1.1.1.1.1.1.1. _ X;XXXInterstateOzoneTransport:Responseto#X8XXX;!#X;XXX8Court Decisions#X8XXX;#X;XXX8Ԁ H onthe NOxSIPCall,NOxSIPCallTechnicalAmendments,  (  #X8XXX;#X;XXX8andSection126Rules#X8XXX;#X;XXX8 Page151of151#X8XXX;#     `     h A.<4 9Z .Courier New Regular1.(EGMSY_ekqAutoList62A.A.A.A.A.A.A.A. _ (5H030eEGMSY_ekqAutoList921.a.1.1.1.1.1.1.A.1.(EEGMSY_ekqAutoList631.1.1.1.1.1.1.1.(EGOW_gowAutoList98(1)(1)(1)(1)(1)(1)(1)(1)1.(EGMSY_ekqAutoList941.1.1.1.1.1.1.1.(eEGMSY_ekqAutoList651.1.1.1.1.1.1.1.(EGMSY_ekqAutoList74A.A.A.A.A.A.A.A.1.  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A.(EGMSY_ekqAutoList68A.A.A.A.A.A.A.A.A.(EGMSY_ekqAutoList691.1.1.1.1.1.1.1.1.(UEGMSY_ekqAutoList701.1.1.1.1.1.1.1.(EGMSY_ekqAutoList66A.A.A.A.A.A.A.A.'gacounties &F1.A.(EGMSY_ekqAutoList75A.A.A.A.A.A.A.A.A.A.1.  e 1.mailto:grano.doug@epa.gov;9TABLE FI.(EGMSY_ekqAutoList531.1.1.1.1.1.1.1.i)(EGOW_gowAutoList95(1)(1)(1)(1)(1)(1)(1)(1)&(1)(1),A.-1..A.c1./A.1.A.1I.2A.41.5A.61.7A.(eEGMSY_ekqAutoList991.1.1.1.1.1.1.1.8I.61.0A.(EGMSY_ekqAutoList76I.I.I.I.I.I.I.I.:I.(EGMSY_ekqAutoList77A.A.A.A.A.A.A.A.TABLE BtTABLE ChzTABLE BTABLE CTABLE D e TABLE E<A.(եEGMSY_ekqAutoList781.1.1.1.1.1.1.1.K1.(EGMSY_ekqAutoList791.1.1.1.1.1.1.1.M1.(EGMSY_ekqAutoList80A.A.A.A.A.A.A.A.OA.(EGMSY_ekqAutoList81I.I.I.I.I.I.I.I.QI.( EGMSY_ekqAutoList82A.A.A.A.A.A.A.A.SA.(ťEGMSY_ekqAutoList83I.I.I.I.I.I.I.I.UI.(*EGMSY_ekqAutoList84A.A.A.A.A.A.A.A.WA.0ӨEGMU[agmsAutoList85A.(1)A.A.A.A.A.A.YA.(GIOU[agmsAutoList100A.A.A.A.A.A.A.A.<4 9Z .Courier New Regular $X;XXX  3    _ForIndiana,Kentucky,Michigan,andNewYork,onlysources  inportionsoftheStateareaffectedbythatrule.A.i),A.-1.(F$0  0` (#(#0 ` (#` (#0 (# (#0h(#(#0h(#h(#0(#(#0p(#(#2#     )3  0p(#p(# )bLevel 1Level 2Level 3Level 4Level 5(jEGMSY_ekqAutoList60A.A.A.A.A.A.A.A.eA.  $X;XXX  4    _TheSection126RuleusesthesamedefinitionofEGUsthat  we_ԀareproposingfortheNOxSIPCallintodaysaction.Level 1Level 2Level 3Level 4Level 5 % $X;XXX  6    _X;XXX;AmemodatedJanuary16,2002fromJohnSeitz,Director,  OfficeofAirQualityPlanningandStandardstotheEPA  RegionalAirDivisionDirectors,indicatedourintentto X resetthecompliancedateforEGUsandnonEGUstoMay31, ,| 2004,subjecttoourresponsetothegrowthfactorremand.#X;XXX;t#ԄLevel 1Level 2Level 3Level 4Level 5 $X;XXX  7    _Thenumberingofthestepsinthemethodologyisaddedfor  theconvenienceofthereader.i)Level 1Level 2Level 3Level 4Level 5[A.(GIQYaiqyAutoList101(1)(1)(1)(1)(1)(1)(1)(1)o(1) R $X;XXX  27    _X;XXX;NationalEnergyFoundationwebpage: H http://www.nef1.org/ea/eastats.html#X;XXX;u#X8XXX;݋XX8(GIOU[agmsAutoList103A.A.A.A.A.A.A.A. t $X;XXX  8    _ForpurposesoftheJanuary18,2000Section126final  rule,wedefined"electricityforsaleunderfirmcontract  totheelectricgrid"aswhere"thecapacityinvolvedis X intendedtobeavailableatalltimesduringtheperiod ,| coveredbytheguaranteedcommitmenttodeliver,evenunder P adverseconditions"(65FR2694and2731).Asdiscussed $ below,weproposetoadoptintodaysproposedrulethe   definitionforthetermprovidedintheJanuary18,2000 |  Section126finalrule.Thisdefinitionwasbasedon P  languagefromtheGlossaryofElectricUtilityTerms,Edison $ t  ElectricInstitute,PublicationNo.7040(definitionof  H  "firm"power).Generally,capacity"underfirmcontractto    theelectricitygrid"isincludedonEnergyInformation    Administration(EIA)form860A(calledEIAform860before i 1998)orisreportedascapacityprojectedforsummeror = winterpeakperiodsonEIAform411(Item2.1or2.2,line  10). | <  p`+"Courier NewTT r $X;XXX  9    _ForpurposesoftheJanuary18,2000Section126final  rule,weusedthemorefamiliarterm potentialelectrical   outputcapacity,ratherthantheterm usableenergy.We i defined potentialelectricaloutputusingthelong = standingdefinitionofthelattertermas 33percentofa  unitsmaximumdesignheatinput(65FR2694and2731).As | discussedbelow,weproposetoadoptintodaysproposed  P rulethesametermanddefinitionusedintheJanuary18,  $ 2000Section126finalrule. Potentialelectricaloutput a  capacityisused,anddefinedinthisway,inpart72of 5  theAcidRainProgramregulations(40CFR72.2and40CFR   part72,appendixD)andinthenewsourceperformance  t  standards(40CFR60.41a). H  (GIOU[agmsAutoList104A.A.A.A.A.A.A.A. X $X;XXX  10    _ԀInthepart96modelruleintheNOxSIPCall(63FR  57356,5751438)andsubsequentlyforpurposesofthe  January18,2000Section126finalrule(65FR2729and X 2731),weadoptedthelongstandingdefinitionof nameplate ,| capacityas themaximumelectricalgeneratingoutput(in P MWe)thatageneratorcansustainoveraspecifiedperiodof $ timewhennotrestrictedbyseasonalorotherderatingsas   measuredinaccordancewiththeUnitedStatesDepartmentof |  Energystandards.Asdiscussedbelow,weproposetoadopt P  intodaysproposedrulethesamedefinitionusedinthe $ t  January18,2000Section126finalrule.Thetermis  H  definedinthiswayinpart72oftheAcidRainProgram    regulations(40CFR72.2).   (EGMSY_ekqAutoList93a.a.a.a.a.a.a.a. a $X;XXX  11    _ԀInthepart96modelruleintheNOxSIPCall(63FR  57516)andsubsequentlyforpurposesoftheJanuary18,2000  Section126finalrule(65FR2729),wedefined maximum X designheatinputas theabilityofaunittocombusta ,| statedmaximumamountoffuelperhour(inmmBtu/hr)ona P steadystatebasis,asdeterminedbythephysicaldesignand $ physicalcharacteristicsoftheunit.Asdiscussedbelow,   weproposetoadoptintodaysproposedrulethesame |  definitionusedintheJanuary18,2000Section126final P  rule. $ t  za.(GIOU[agmsAutoList1051.1.1.1.1.1.1.1. 4 $X;XXX  15    _AlternativeControlTechniquesdocument, NOxEmissions  fromStationaryReciprocatingInternalCombustionEngines,  EPA453/R93032,July1993. " $X;XXX  16    _AlargeICengineisonethatemitted,onaverage,more  than1tonperdayduringthe1995ozoneseason(May1  throughSeptember30).(GIOU[agmsAutoList102A.A.A.A.A.A.A.A. n $X;XXX  17    _Thediscussioninthetextgenerallyuses grams/brake  horsepowerhourorg/bhphrratherthanlbs/mmBtusincethe  formeristheconventionfortheindustry.Theuncontrolled  estimateof3.0lbs/mmBtu(fromAP42,October1996) | correspondstoabout11.3g/bhphr.The1993ACTdocument jP forICenginesestimatesaverageuncontrolledemissionsat >$ 5.13lb/mmBtuor16.8g/bhphr.A. $X;XXX  18    _NOxSIPCallRuleat63FR57402.(GIOU[agmsAutoList1061.1.1.1.1.1.1.1.  $X;XXX  19    _ NOxEmissionsControlCostsforStationaryReciprocating  InternalCombustionEnginesintheNOxSIPCallStates  preparedbyPechanAvantiGroupforEPA,August11,2000;  annualcostsin1990dollarsperNOxtonsreducedinthe | ozoneseason.  $X;XXX  14    _ԀInfact,useoftheonethirdpotentialelectricaloutput  capacity/25MWesalescriteriaforcogeneratorswould  distinguishbetweenEGUcogeneratorsandnonEGU  cogeneratorsbasedonthecogeneratorsamountof | electricitysalesandwould_raisethe____same_Ԁ_issue._Ԁ_Under_ jP thesecriteria,twophysicallyidenticalcogeneratorscould >$ havedifferentemissionlimitssimplybecauseoneproduces   andsellstherequisiteamountofelectricityandtheother   produceselectricityforinternaluseanddoesnotsellthe   requisiteamount. N $X;XXX  20    _ NOxEmissionsControlCostsforStationaryReciprocating  InternalCombustionEnginesintheNOxSIPCallStates  preparedbyPechanAvantiGroupforEPA,August11,2000.(GIOU[agmsAutoList107A.A.A.A.A.A.A.A.I.i),A.-1..A.c1./A.1.A.1I.2A.41.5A.61.7A.8I.0A.(+GIOU[agmsAutoList108A.A.A.A.A.A.A.A.(XGIQYaiqyAutoList109(1)(1)(1)(1)(1)(1)(1)(1)  $X;XXX  22    _TheOTAGrecommendationonMajorModeling/AirQuality  ConclusionsapprovedbythePolicyGroup,June3,1997X;XXX;(#X;XXX;#X;XXX;62  FR60318,AppendixB#X;XXX;9#X;XXX;,November7,1997).#X;XXX;#  <4 9Z .Courier New Regular $X;XXX  23    _The2007BaseCaseincludesallcontrolmeasuresrequired  bytheCAA.  $X;XXX  13    _ԀWealsonotethatthedollarpertoncostforthis  installationis$2,800to$3,000pertonofNOxremoved.  ThisishigherthantheaveragecostforEGUsbecausethe  unitstartedatalowNOxrate(0.16lb/mmBtu)andcontrols | downto0.070.08lb/mmBtu,notbecausetheunitisa jP cogenerator.Iftheunitonlygeneratedelectricityandhad >$ thesamestartingNOxrate,thecostwouldbethesame. | $X;XXX  12    _ԀX;XXX;Thesetwoconfigurationsareforcogenerationunitsin e toppingcyclecogenerationfacilities,whereenergyisused 9 sequentiallyfirsttoproduceelectricityandthento   producethermalenergyforprocessuseorheatingand | cooling.Inbottomingcyclecogenerationfacilities,energy P isusedsequentiallyfirsttoproducethermalenergyand $ thentoproduceelectricity.(S#X;XXX;v#X;XXX;eeCogenerationApplications ]  Considerations,R.W.FiskandR.L.VanHousen,GEPower =  Systems,1996,Docket#A9656,item#XIIL04#X;XXX;#X;XXX;Ԁat12.)   Thecogenerationunitssubjecttothe#X;XXX;#X;XXX;NOxSIPCallandthe    Section126Rule#X;XXX;#X;XXX;Ԁareboilers,turbines,orcombinedcycle  `  systemsandsoarelikelytooperateintoppingcycle  4  cogenerationfacilities.#X;XXX;#i)A.(GIQYaiqyAutoList110(1)(1)(1)(1)(1)(1)(1)(1)   (JEGMSY_ekqAutoList86A.A.A.A.A.A.A.A. J $X;XXX  5    _Asdiscussedinthenextsection,onAugust24,2001,the  D.C.CircuitsuspendedthecompliancedateforEGUswhilewe  resolvearemandedissuerelatedtoEGUgrowthfactors.mailto:A-and-R-docket@epa.gov   (5EGMSY_ekqAutoList961.1.1.1.1.1.1.1.1.(EGOW_gowAutoList97(1)(1)(1)(1)(1)(1)(1)(1)(1)(GIOU[agmsAutoList111A.A.A.A.A.A.A.A.A. !  _8;XXdd8X;XXXQRQR OY/P#,&W"O:p FA0.V `     h 󀀀XXXX;0  0(#(#0p(#(#656050P#X;XXXޖ#Ԁ ' Ѐ p(#p(#  @-   ENVIRONMENTALPROTECTIONAGENCY  40CFRParts51,52,96,and97 g @ [FRLXXXXX] '  X;XXX;InterstateOzoneTransport:Responseto#X;XXX;"#Court DecisionsX;XXX;Ԁ    onthe NOxSIPCall,NOxSIPCallTechnicalAmendments,     #X;XXX;#andSection126RulesX;XXX;     AGENCY : EnvironmentalProtectionAgency(EPA). g@   ACTION:0 Proposedrule.  (# (#  `     h    SUMMARY : Intodaysaction,weareproposingtoamendtwo  relatedfinalrulesweissuedundersections110and126of h theCleanAirAct(CAA)relatedtointerstatetransportof 7 nitrogenoxides(NOx),oneofthemainprecursorstoground  levelozone.Wearerespondingtothe#X;XXX;g#March3,2000X;XXX; ` decisionoftheUnitedStatesCourtofAppealsforthe / DistrictofColumbiaCircuit(D.C.Circuit)inwhichthe  CourtlargelyupheldtheNOxStateImplementationPlanCall  X (NOxSIPCall),butremandedfournarrowissuestousfor '"! furtherrulemakingaction;#X;XXX;8#ԀtherelateddecisionbytheD.C. ## CircuitonJune8,2001,concerningtherulemakings w%P% providingtechnicalamendmentstotheNOxSIPCall,inwhich ' ' theCourt,amongotherthings, vacatedandremandedanissue (") forfurtherrulemaking;andthedecisionbytheD.C.Circuit o*H$+ onMay15,2001,concerningtherelated,section126 ,%- rulemaking,inwhichtheCourt,amongotherthings,vacated ' andremandedanissueforfurtherrulemaking;andthe  relateddecisionbytheD.C.CircuitonAugust24,2001, w P concerningtheSection126Rule,inwhichtheCourtremanded   anissue.    ` InthefinalNOxSIPCall,wefoundthatemissionsof oH  NOxfrom22StatesandtheDistrictofColumbia(23States)   significantlycontributetodownwindareasnonattainmentof   the1hourozonenationalambientairqualitystandards g@  (NAAQS).WeestablishedstatewideNOxX;XXX;emissionsbudgetsfor  theaffectedStates.#X;XXX;d #:X;XXX;Inrulemakingsprovidingtechnical  amendmentstotheNOxSIPCallbudgets,werevisedthose _8 budgets.#X;XX:X; #X;XXX;Todaysactionaddressestheissuesremandedby  theCourt#X;XXX;#:X;XXX;inthetwocasesinvolvingchallengestoboththe  NOxSIPCallandtherulemakingsprovidingtechnical W0 amendments#X;XX:X;I#X;XXX;Ԁfornoticeandcommentrulemakingandproposes  relatedamendments.#X;XXX;$#    :X;XXX; ` Intodaysaction,wearealsorespondingtotheD.C. O"(" Circuitsdecisionsinathirdcaseconcerningarelated #$ rulemaking,theSection126Rule,inwhichtheCourt %x& remandedanissue#X;XX:X;#:X;XXX;Ԁandvacatedanissue.Thisaction G' !( addressesthevacated#X;XX:X;#:X;XXX;Ԁissue.#X;XX:X;# ("*  DATES :Commentsmustbepostmarked,faxed,oremailedby *p$, April15,2002.Apublichearing,ifrequested,willbe W,0&. heldinWashington,D.C.onf  March15g ,2002beginningat9:00 ' am.    ADDRESSES :Comments(induplicateifpossible)maybe w P submittedtotheOfficeofAirandRadiationDocketand 7  InformationCenter(6102),Attention:DocketNo.A9656,   U.S.EnvironmentalProtectionAgency,401MStreet,SW, `  Washington,DC20460,telephone(202)2607548,fax(202) /  2604400,andemail4 TO  5  AandRdocket@epa.gov6TO  7 0.Weencourage   electronicsubmissionsofcommentsanddatafollowingthe X  instructionsunderSUPPLEMENTARYINFORMATIONofthis ' document.Noconfidentialbusinessinformation(CBI)should  besubmittedthroughe-mail. wP  ` Thepublichearing,ifrequested,willbeheldatX;XXX;f  g f    CrystalMall2(Room1110;the fishbowl),CrystalCity,  1921JeffersonDavisHwy,Arlington,VA22202f  g .#X;XXX;#Ԁ oH  ` Documentsrelevanttothisactionareavailablefor  inspectionattheU.S.EnvironmentalProtectionAgency,401    MStreet,SW,WatersideMall,RoomM1500,Washington,DC g"@" 20460,betweeng f  8:00f  g Ԁa.m.and5:30p.m.,Mondaythrough $$ Friday,excludinglegalholidays.Areasonablefeemaybe %& chargedforcopying. _'8!(  FORFURTHERINFORMATIONCONTACT :Generalquestions )"* concerningtoday'sactionshouldbeaddressedtoJanKing, *$, OfficeofAirQualityPlanningandStandards,AirQuality o,H&. StrategiesandStandardsDivision,C53902,Research ' TrianglePark,NC,27711,telephone(919)5415665,email  at4 pTO  5  king.jan@epa.gov.6TO  7 hԀ X;XXX;TechnicalquestionsconcerningEGUsin w P todaysdocumentshouldbedirectedtoKevinCulligan,   OfficeofAtmosphericPrograms,CleanAirMarketsDivision,   (6204M),1200PennsylvaniaAve.,NW,Washington,DC20460, oH  telephone(202)5649172,email4 TO  5  culligan.kevin@epa.gov6TO  7 ;   technicalquestionsconcerninginternalcombustionengines   shouldbedirectedtoDougGrano,OfficeofAirQuality g@  PlanningandStandards,C53902,ResearchTrianglePark,  NorthCarolina27711,telephone(919)5413292,email  4 TO  5  grano.doug@epa.gov;6 TO cume  7s Ԁlegalquestionsshouldbedirectedto _8 HowardJ.Hoffman,OfficeofGeneralCounsel,(2344A),1200  PennsylvaniaAve.,NW,Washington,DC20460,telephone(202)  5645582,email4 TO  5  hoffman.howard@epa.gov.6R"TOf"  7 "Ԁ#X;XXX;B#  W0 SUPPLEMENTARYINFORMATION :   ` Todaysactionaddressestheissuesremandedorvacated    fornoticeandcommentrulemakingbytheD.C.Circuitin g"@" Michiganv.EPA,213F.3d663(D.C.Cir.2000),cert. $$ denied,121S.Ct.1225,149L.ED.135(2001), which %& concernedtheNOxSIPCall(the SIPcallcase); _'8!( AppalachianPowerv.EPA,251F.3d1026(D.C.Cir.2001), )"* whichconcernedthetechnicalamendmentsrulemakingsforthe *$, NOxSIPCall(the TechnicalAmendmentscase);and W,0&. AppalachianPowerv.EPA,249F.3d1042(D.C.Cir.2001)and ' AppalachianPowerv.EPA,No.991200,Order(D.C.Cir.,  August24,2001),whichconcernedthesection126rulemaking w P (the Section126case).    ` Inthisaction,weareproposingto:   (1)0 ` retainthedefinitionofEGUsasitrelatesto oH  cogenerationunitsintheNOxSIPCallandinthe   Section126Rule,andretainthedefinitionofEGUsas   itrelatestocogenerationunitsintheNOxSIPCall g@  withonlyminorrevisionstomakethedefinition  consistentwiththeSection126Rule.` (#` (# (2)0 ` revisethecontrollevelsforstationaryinternal _8 combustionenginesthatwereassumedincalculatingNOx  SIPcallbudgetsforeachState,` (#` (# (3)0 ` excludeportionsofGeorgia,Missouri,Alabamaand W0 MichiganfromtheNOxSIPCall(thecourtruling  focusedonGeorgiaandMissouri,butthesameissueis    relevanttoAlabamaandMichigan),O"("` (#` (# (4)0 ` revisestatewideemissionsbudgetsintheNOxSIPCall #$ toreflectthedispositionofthefirstthreeissues %x& above,G' !(` (#` (# (5)0 ` setarangeofdatesfor19StatesandtheDistrictof ("* ColumbiatosubmitStateimplementationplansto *p$, achievetheemissionsreductionsrequiredbythis ?,&. P#    secondphaseoftheNOxSIPCall,andforGeorgiaand  MissouritosubmitSIPsmeetingthefullNOxSIPCall:  6monthsthrough1yearfromfinalpromulgationofthis n P rulemakingbutnolaterthanApril1,2003, ` (#` (# (6)0 ` setacompliancedateofMay31,2004,forallsources   exceptthoseinGeorgiaandMissouri;andsourcesin fH  thosetwoStateswouldhaveaMay1,2005compliance   date, ` (#` (# (7)0 ` excludeWisconsinfromNOxSIPCallrequirements.^@ ` (#` (#  ` Groundlevelozonehaslongbeenrecognizedtoaffect  publichealth.Ozoneinduceshealtheffects,including  decreasedlungfunction(primarilyinchildrenactive V8 outdoors),increasedrespiratorysymptoms(particularlyin  highlysensitiveindividuals),increasedhospitaladmissions  andemergencyroomvisitsforrespiratorycauses(among N0 childrenandadultswithpreexistingrespiratorydisease  suchasasthma),increasedinflammationofthelungs,and    possiblelongtermdamagetothelungs. F"("  PublicHearing  #$  ` Apublichearing,ifrequested,willbeheldonf  g f  g ԀMarch %& 15f  g ,2002beginningat9:00am.Thehearingwillbeheldat V'8!( CrystalMall2(Room1110,the fishbowl),CrystalCity, ("* 1921JeffersonDavisHwy,Arlington,VA22202.f  g ԀThemetro *$, stopisX;XXX;f  g f  g CrystalCityf  g ,whichisg locatedabout1blocksfrom N,0&. CrystalMall2#X;XXX;G4#f  g .Ifyouwishtorequestahearingand  presentoraltestimonyorattendthehearing,youshould  notify,onorbeforef  g f  g ԀMarch7f  g ,2002,Ms.JoAnnAllman , Office n P ofAirQualityPlanningandStandards,AirQuality .  StrategiesandStandardsDivision,C53902,Research     TrianglePark,NC27711,telephone(919)5411815,email ~`  4 %TO  5  allman.joann@epa.gov.6D7TOX7  7 f!7ԀOraltestimonywillbelimitedto5 &  minuteseach.Thehearingwillbestrictlylimitedtothe   subjectmatteroftheproposal,thescopeofwhichis vX  discussedbelow.Anymemberofthepublicmayfilea  writtenstatementbythecloseofthecommentperiod.  Writtenstatements(duplicatecopiespreferred)shouldbe nP submittedtoDocketNo.A9656and,totheextentthey  concerntheSection126Rule,DocketNo.A9743,atthe  addresslistedaboveforsubmittingcomments.Thehearing fH schedule,includinglistsofspeakers,willbepostedon  EPAswebpageat4 TO  5  http://www.epa.gov/ttn/rto/whatsnew.html6:TO;  7 ?;.    Averbatimtranscriptofthehearingandwrittenstatements ^"@" willbemadeavailableforcopyingduringnormalworking $$ hoursattheOfficeofAirandRadiationDocketand %& InformationCenterattheaboveaddresslistedfor V'8!( inspectionofdocuments. ("*  ` Ifnorequestsforapublichearingarereceivedby *$, closeofbusinessMarch7,2002,thehearingwillbe N,0&. cancelled.Thecancellationwillbeannouncedonthe  webpageattheaddressshownabove.   ElectronicAvailability  n P  ` Electroniccommentsareencouragedandcanbesent .  directlytoEPAat:4 ITO  5  AandRDocket@epa.gov6>TO ?  7 ;?.Electronic   commentsmustbesubmittedasanASCIIfileavoidingtheuse ~`  ofspecialcharactersandanyformofencryption.Comments &  anddatawillalsobeacceptedondisksinWordPerfectin   8.0fileformatorASCIIfileformat.Allcommentsanddata vX  inelectronicformmustbeidentifiedbythedocketnumber  A9656and,totheextenttheyconcerntheSection126  Rule,docketnumberA9743.Electroniccommentsonthis nP proposedrulemaybefiledonlineatmanyFederalDepository  Libraries.   AvailabilityofRelatedInformation  fH  ` TheofficialrecordsfortheNOxSIPCallrulemaking & (includingtheTechnicalAmendments)andfortheSection126    Rule,aswellasthepublicversionsoftherecords,have v"X" beenestablishedunderdocketnumbersA9656andA9743, $$ respectively(includingcommentsanddatasubmitted %& electronicallyasdescribedbelow).Wehaveaddednew n'P!( sectionstothosedocketsforpurposesoftodaysproposed )"* rulemaking.Thepublicversionoftheserecords,including *$, printed,paperversionsofelectroniccomments,whichdoes f,H&. notincludeanyinformationclaimedasCBI,areavailable  forinspectionfrom8:00a.m.to5:30p.m.,Mondaythrough  Friday,excludinglegalholidays.Therulemakingrecords n P arelocatedattheaddressinADDRESSESatthebeginningof   thisdocument.Inaddition,theFederalRegister   rulemakingsandassociateddocumentsarelocatedat fH  4 TO  5  http://www.epa.gov/ttn/rto/6CGTOWG  747G.   -,-  Outline     (5H03"3"  3H25H  I  .3  0 `   Background3HI݌vX ` (#` (# Ќ  ! ! (80"3"  3gJ2  A  .3  0 `   WhatWasContainedintheNOxSIPCall?3gJJ݌J,` (#` (# Ќ  "3"  3WK2  B  .3  0 `   WhatWeretheCourtDecisionsontheNOxSIPCall?3WKK݌` (#` (# Ќ  ! ! -(Uh88"3"  3L2Uh  1  .3  0 `   WhatWastheDecisionoftheCourtonthe8HourNAAQS?3L!M݌` (#` (# Ќ  "3"  3M2Uh  2  .3  0 `   WhatEffectDidTheCourtDecisionHaveonthe8Hour  PortionoftheNOxSIPCall?3M!N݌|` (#` (# Ќ  "3"  3)O2Uh  3  .3  0 `   WhatWastheD.C.CircuitDecisionontheStayofthe nP SIPSubmittalSchedulefortheNOxSIPCall?3)OVO݌B$` (#` (# Ќ  "3"  3hP2Uh  4  .3  0 `   WhatWastheCourtsDecisionontheNOxSIPCall?3hPP݌` (#` (# Ќ  "3"  3fQ2Uh  5  .3  0 `   HowDidtheCourtRespondtoEPAsRequesttoLiftthe  Stayofthe1HourSIPSubmissionSchedule?3fQQ݌` (#` (# Ќ  "3"  3R2Uh  6  .3  0 `   WhatWastheCourtsOrderfortheComplianceDate t Order?3RR݌fH` (#` (# Ќ   .(88-! !"3"  3dT2  C  .3  0 `   WhatWastheSection126Rule?3dTT݌:` (#` (# Ќ  ! ! c(ʽ88.1.0 ` WhatWastheD.C.CircuitDecisionontheSection126  Rule?` (#` (#  /(ڽ88c! !"3"  3 W2ڽ  D  .3  0 `   WhatWeretheTechnicalAmendmentsRulemakings?3 W8W݌  ` (#` (# Ќ  ! ! (h88/"3"  3X2h  1  .3  0 `   WhatWastheD.C.CircuitDecisionontheTechnical !l! Amendments?3XX݌^"@"` (#` (# Ќ   (88! !"3"  3cZ2  E  .3  0 `   WhatistheOverviewofD.C.CircuitRemands/Vacaturs?3cZZ݌2##` (#` (# Ќ  "3"  3b[2  F  .3  0 `   WhatisEPAsProcessforAddressingthe $$ Remands/Vacaturs?3b[[݌$%` (#` (# Ќ   :(88! !"3"  3]2  II  .3  0 `   WhatistheScopeofthisProposal?3]K]݌%&` (#` (# Ќ  ! ! x(88:"3"  3^2  A  .3  0 `   HowDoWeTreat_Cogenerators_ԀandNonAcidRainUnits?3^^݌&d '` (#` (# Ќ  ! ! ~(88x"3"  3n`2  1  .3  0 `   WhatistheHistoricalDefinitionofUtilityUnit?3n``݌V'8!(` (#` (# Ќ  "3"  3ia2  2  .3  0 `   WhatistheNOxSIPCallDefinitionofEGU?3iaa݌*( ")` (#` (# Ќ  "3"  3]b2  3  .3  0 `   WhatMinorRevisionsAreBeingMadetotheDefinition ("* ofEGUintheNOxSIPCallandtheSection126Rule?3]bb݌)#+` (#` (# Ќ  "3"  3c2  4  .3  0 `   WhatMethodologyAreWeUsingtoClassifyEGU/nonEGU *$, CogenerationUnits?3cc݌z+\%-` (#` (# Ќ  "3"  3d2  5  .3  0 `   WhatistheEffectonCogenerationUnitClassification N,0&. p  C   ofApplyingtheSameMethodologyAsUsedForOther  Units,RatherThantheOnethirdPotentialElectrical  OutputCapacity/25MWeSalesCriteria?3dd݌` (#` (# Ќ   5(J88~! !"3"  3}g2J  B  .3  0 `   WhatControlLevelisBeingProposedforStationary [| ReciprocatingInternalCombustion(IC)Engines?3}gg݌/ P` (#` (# Ќ  ! ! (885"3"  3_i2  1  .3  0 `   WhatControlLevelWasUsedintheNOxSIPCall?3_ii݌ $` (#` (# Ќ  "3"  3Xj2  2  .3  0 `   WhatWastheMarch3,2000CourtDecisionRegardingIC   Engines?3Xjj݌ ` (#` (# Ќ  "3"  3tk2  3  .3  0 `   WhatAretheEmissionsfromICEngines?3tkk݌ ` (#` (# Ќ  "3"  3dl2  4  .3  0 `   WhatControlTechnologiesAreAvailableForICEngines?3dll݌S t ` (#` (# Ќ  "3"  3dm2  5  .3  0 `   IsSCRAnAppropriateTechnologyForNaturalGasFired 'H  LeanBurnICEngines?3dmm݌ ` (#` (# Ќ  "3"  3n2  6  .3  0 `   IsLECTechnologyAppropriateForNaturalGasFired   LeanBurnICEngines?3nn݌ ` (#` (# Ќ  "3"  3o2  7  .3  0 `   WhatNOxSIPCallBudgetCalculationsAreWe w  Proposing?3oo݌Kl ` (#` (# Ќ   O(88! !"3"  3jq2  C  .3  0 `   WhatisOurResponsetotheCourtDecisiononGeorgia @  andMissouri?3jqq݌` (#` (# Ќ  "3"  3r2  D  .3  0 `   WhatAreWeProposingforAlabamaandMichiganinLight  oftheCourtDecisiononGeorgiaandMissouri?3rr݌` (#` (# Ќ  "3"  3s2  E  .3  0 `   WhatModificationsWillbeMadetotheNOxEmissions o Budgets?3ss݌Cd` (#` (# Ќ  "3"  3t2  F  .3  0 `   HowWilltheComplianceSupplementPoolsBeHandled?3tu݌8` (#` (# Ќ  "3"  3u2  G  .3  0 `   WilltheEGUBudgetChangesAffecttheStatesIncluded   intheThreeStateMemorandumofUnderstanding?3uv݌` (#` (# Ќ  "3"  3'w2  H  .3  0 `   HowDoestheTerm BudgetRelatetoConformity  Budgets?3'wTw݌g` (#` (# Ќ  "3"  3Bx2  I  .3  0 `   HowWillPartialStateTradingBeAdministered?3Bxox݌;\` (#` (# Ќ  "3 "  3:y2  J  .3  0 `   WhatSIPSubmittalDatesAreWeProposing?3:ygy݌0` (#` (# Ќ  "3 "  3-z2  K  .3  0 `   WhatComplianceDatesAreWeProposing?3-zZz݌` (#` (# Ќ  ! ! (88 O"3"  3{2  1  .3  0 `   WhatistheTechnicalFeasibilityoftheCompliance  Dates?3{{݌` (#` (# Ќ  "3"  3|2  2  .3  0 `   HowWillThisAffectElectricReliability?3|}݌_  ` (#` (# Ќ  ! ! (8 8"3 "  3k~2  L  .3  0 `   WhatAreWeProposingforWisconsin?3k~~݌3!T!` (#` (# Ќ   S( 88 "3"  32   A  .3  0 `   HowArethe8HourNAAQSRulesAffectedbyThisAction?3݌"("` (#` (# Ќ   U(ť88S! !"3"  3{2ť  III  .3  0 `   WhatAretheAdministrativeRequirements?3{݌"#` (#` (# Ќ  ! ! (+88U"3"  32+  A  .3  0 `   ExecutiveOrder12866:RegulatoryImpactAnalysis3>݌#$` (#` (# Ќ  "3"  3 2+  B  .3  0 `   ExecutiveOrder12898:EnvironmentalJustice3 8݌$%` (#` (# Ќ  "3"  32+  C  .3  0 `   ExecutiveOrder13045:ProtectionofChildrenfrom W%x& EnvironmentalHealthRisksandSafetyRisks3.݌+&L '` (#` (# Ќ  "3"  3<2+  D  .3  0 `   ExecutiveOrder13132:Federalism3<i݌& !(` (#` (# Ќ  "3"  3&2+  E  .3  0 `   ExecutiveOrder13175:ConsultationandCoordination '!) withIndianTribalGovernments3&S݌("*` (#` (# Ќ  "3"  3V2+  F  .3  0 `   ExecutiveOrder13211:ActionsConcerningRegulations {)#+ ThatSignificantlyAffectEnergySupply,Distribution, O*p$, orUse3V݌#+D%-` (#` (# Ќ  "3"  32+  G  .3  0 `   UnfundedMandatesReformAct3݌+&.` (#` (# Ќ  "3"  32+  H  .3  0 `   RegulatoryFlexibilityAct(RFA),asAmendedbythe  SmallBusinessRegulatoryEnforcementFairnessActof  1996(SBREFA)3̊݌` (#` (# Ќ  "3"  32+  I  .3  0 `   PaperworkReductionAct34݌[|` (#` (# Ќ  "3 "  32+  J  .3  0 `   NationalTechnologyTransferandAdvancementAct3݌/ P` (#` (# Ќ  _H I.Background     A.WhatWasContainedintheNOxSIPCall ?    ` BynoticedatedOctober27,1998(63FR57356),we Wx  tookfinalactiontoprohibitspecifiedamountsofemissions   ofoneofthemainprecursorsofgroundlevelozone,NOx,in   ordertoreduceozonetransportacrossStateboundariesin Op  theeasternhalfoftheUnitedStates.Basedonextensive  airqualitymodelingandanalyses,wefoundthatsourcesin  23StatesemitNOxinamountsthatsignificantlycontribute Gh tononattainmentofthe1hourozoneNAAQSindownwind  States.Wesetforthrequirementsforeachoftheaffected  upwindStatestosubmitSIPrevisionsprohibitingthose ?` amountsofNOxemissionswhichsignificantlycontributeto  downwindairqualityproblems.WeestablishedstatewideNOx    emissionsbudgetsfortheaffectedStates.Thebudgetswere 7"X" calculatedbyassumingtheemissionsreductionsthatwould #$ beachievedbyapplyingavailable,highlycosteffective %& controlstosourcecategoriesofNOx.Stateshavethe /'P!( flexibilitytoadopttheappropriatemixofcontrolsfor ("* theirStatetomeettheNOxemissionsreductions *$, requirementsoftheSIPCall.:X;XXX;Anumberofparties, ',H&. includingcertainStatesaswellasindustryandlabor  groups,challengedourNOxSIPCallRule.#X;XX:X; #   ` Independently,wealsofoundthatsourcesandemitting / P activitiesin23StatesemitNOxinamountsthat   significantlycontributetononattainmentofthe8hour   ozoneNAAQS.However,wehaveindefinitelystayedtheNOx 'H  SIPCallasitappliesforthepurposesofthe8hourNAAQS   (65FR56245,September18,2000). w   B.WhatWeretheCourtDecisions ontheNOxSIPCall?  @   1.WhatWastheDecisionoftheCourtonthe8HourNAAQS?    ` OnMay14,1999,theD.C.Circuitissuedanopinion  which,inrelevantparts,questionedtheconstitutionality Gh oftheCAAasappliedbyEPAinits1997revisionofthe  ozoneNAAQS.SeeAmericanTrucking_Assn_Ԁv.EPA,175F.3d  1027(D.C.Cir.,1999).TheCourtsrulingcurtailedour ?` abilitytorequireStatestocomplywithamorestringent  ozoneNAAQS.     ` OnOctober29,1999,theD.C.Circuitgrantedinpart 7"X" anddeniedinpartourrehearingrequest.AmericanTrucking #$ _Assn_Ԁv.EPA,194F.3d4(D.C.Cir.1999).InMay2000,the %& SupremeCourtgrantedourpetitionandcertainpetitioners /'P!( crosspetitionsofcertiorari.OnFebruary27,2001,the ("* SupremeCourthandeddownitsdecisioninWhitmanv. *$, AmericanTruckingAssociation,531U.S.457(2001).In ',H&. vacatingtheD.C.Circuitsholdingonthepoint,the  SupremeCourtheldthattheCAAwasnotunconstitutionalin  itsdelegationofauthorityforustopromulgatearevised / P ozoneNAAQS.ThecasewasremandedtotheD.C.Circuitto   considerchallengestotherevisedozoneNAAQSonother   grounds. 'H   (E88 ! !"3"  3:2E  2  .3  0 `   WhatEffectDidThisHaveOnthe8hourPortionofthe     NOxSIPCall? 3:j݌ ` (#` (# Ќ   ` Thelitigationcreateduncertaintywithrespecttoour Op  abilitytorelyuponthe8hourozonestandardsasan  alternativebasisfortheNOxSIPCall.Asaresult,we  stayedindefinitelythefindingsofsignificantcontribution Gh basedonthe8hourstandard,pendingfurtherdevelopments  intheNAAQSlitigation(65FR56245,September18,2000).  BecausetheNOxSIPCallRulewasbasedindependentlyonthe ?` 1hourstandards,astayofthefindingsbasedonthe8hour  standardshadnoeffectontheremedyrequiredbythe1998    NOxSIPCall.Thatis,thestaydoesnotaffectour 7"X" findingsbasedonthe1hourstandards. #$  3.WhatWastheD.C.CircuitDecisionontheStayofthe %& SIPSubmittalSchedulefortheNOxSIPCall?  G'h!(  ` TheNOxSIPCallRulerequiredStatestosubmitSIP )(#* revisionsbySeptember30,1999.StatePetitioners *$, challengingtheNOxSIPCallfiledamotionrequestingthe W,x&. CourttostaythesubmissionscheduleuntilApril27,2000.  Inresponse,theD.C.CircuitissuedastayoftheSIP  submissiondeadlinependingfurtherorderoftheCourt. / P Michiganv.EPA,213F.3d663(D.C.Cir.2000)(May25,1999   ordergrantingstayinpart).    4.WhatWastheCourtsDecisionontheNOxSIPCall?  'H  :X;XXX; ) !#$%'((Ax8 ` #X;XX:X; #:X;XXX;OnMarch3,2000,theD.C.Circuit#X;XX:X;ܦ#issueditsdecision   ontheNOxSIPCall,rulinginourfavorontheissuesthat   affectedtherulemakingasawhole,butrulingagainstuson 7X  severalgeographicandproceduralissues.Michiganv.EPA,  213F.3d663(D.C.Cir.2000).TheCourtsdecisionin  Michiganv.EPA,213F.3d663(D.C.Cir.2000)concernsonly /P the1hourbasisfortheNOxSIPCall,andnotthe8hour  basis. TherequirementsoftheNOxSIPCall,includingthe  findingsofsignificantcontributionbythe23States,the 'H emissionsreductionsthatmustbeachieved,andthe  requirementforStatestosubmitSIPsmeetingstatewideNOx w   emissionsreductionsrequirements,arefullyand "@" independentlysupportedbyourfindingsunderthe1hour #$ NAAQSalone.TheCourtdeniedpetitionersrequestsfor o%& rehearingorrehearingenbanc onJuly22,2000. '8!( Specifically,theCourtfoundinourfavoronthefollowing ("* claims: *$, ! ! (8x) !#$%'("3"   ` 32(  1  )3  0   wecouldcallfortheSIPrevisionswithout ',H&. conveningatransportcommission;3݌ (# (# Ќ   (88"3"   ` 32(  2  )3  0   weundertookasufficientlyState-specific  determinationofozonecontribution;3֮݌/ P (# (# Ќ   (88"3"   ` 3W2(  3  )3  0   wedidnotunlawfullyoverridepastprecedent   regarding"significant"contribution;3W݌  (# (# Ќ   (G88"3"   ` 32G(  4  )3  0   ourconsiderationofthecostofNOxreductionas 'H  partofthedeterminationofsignificant   contributionisconsistentwiththestatuteand w  judicialprecedent;3N݌@  (# (# Ќ   (708! !" ;"   ;g0 ` 27(  5  )3  0 ` (#` (#  ourschemeofuniformemissionsreductions  requirementsisreasonable; ;g݌o (# (# Ќ  " ;"   ;0 ` 27(  6  )3  0 ` (#` (#  CAAsection110(a)(2)(D)(i)(I)asconstruedbyus 8 doesnotviolatethenondelegationdoctrine; ;̵݌ (# (# Ќ   (80" ;"   ;p0 ` 2(  7  )3  0 ` (#` (#  wedidnotintrudeonthestatutoryrightsof g StatestofashiontheirSIPs; ;p݌0 (# (# Ќ   (88" ;"   ;.0 ` 2(  8  )3  0 ` (#` (#  weproperlyincludedSouthCarolinaintheSIP  Call;and ;.[݌_   (# (# Ќ   (88" ;"   ;ٺ0 ` 2(  9  )3  0 ` (#` (#  wedidnotviolatetheRegulatoryFlexibilityAct. ;ٺ݌"(" (# (# Ќ   ` However,theCourtruledagainstusonfourspecific #$ issues.Specifically,theCourt: W%x& !  ! (88 "3"   ` 32(  1  )3  0   remandedandvacatedtheinclusionofWisconsin & !( becauseemissionsfromWisconsindidnotshowa ("* significantcontributiontodownwindnonattainment O*p$, oftheNAAQS;3P݌+&. (# (# Ќ   (88"3"   ` 3J2(  2  )3  0   remandedandvacatedtheinclusionofGeorgiaand  MissouriinlightoftheOzoneTransport  AssessmentGroup(OTAG)conclusionsthatemissions / P fromcoarsegridportionsdidnotmeritcontrols;3J݌  (# (# Ќ   (88"3"   ` 32(  3  )3  0   heldthatwefailedtoprovideadequatenoticeof   thechangeinthedefinitionofEGUasappliedto 'H  cogenerationunitsthatsellelectricitytothe   gridinamountsofeitheronethirdorlessof w  theirpotentialelectricaloutputcapacityor25 @  megawattsorlessperyear(smallcogenerators);  and3݌o (# (# Ќ  "3"   ` 32(  4  )3  0   heldthatwefailedtoprovideadequatenoticeof 8 thechangeincontrollevelassumedforlarge  stationaryinternalcombustionengines.3K݌g (# (# Ќ  TheCourtremandedthelasttwomattersforfurther 0 rulemaking.  ! ! z(u88 5.HowDidtheCourtRespondtoEPAsRequesttoLiftthe _   Stayofthe1HourSIPSubmissionSchedule?  "@"  ` OnApril11,2000,wefiledamotionwiththeCourtto #$ liftthestayoftheSIPsubmissiondate.Werequestedthat %& theCourtliftthestayasofApril27,2000.We /'P!( recognized,however,thatatthetimethestaywasissued, ("* Stateshadapproximately4months(128days)remainingto *$, submitSIPs.Therefore,ourmotiontoliftthestay ',H&. indicatedthatwewouldallowStatesuntilSeptember1,2000  tosubmitSIPsaddressingtheSIPCallandprovidedthat  StatescouldsubmitonlythoseportionsoftheSIPCall / P upheldbytheCourt(PhaseISIPs).Theexistingrecordin   theNOxSIPCallrulemakingprovidesabreakdownofthedata   onwhichtheoriginalbudgetsweredevelopedsufficientto 'H  allowStatestodevelopPhaseISIPs.However,wereviewed   therecordandfortheconvenienceoftheStatesandin w  letterstotheStateGovernorsandStateAirDirectors, @  datedApril11,2000,weidentifiedanadjustedPhaseINOx  budgetforeachStateforwhichtheSIPCallapplies. o  ` OnJune22,2000,theCourtgrantedourrequestin 8 part.TheCourtorderedthatweallowtheStates128days  fromtheJune22,2000dateoftheordertosubmittheir g SIPs.Therefore,SIPsinresponsetotheNOxSIPCallwere 0 dueOctober30,2000. X;XXX;  1      ׀   ` Inourmotiontoliftthestay,weinformedtheCourt _   thattheAgencyasked19StatesandtheDistrictof "(" Columbia,inletterstotheGovernorsdatedApril11,2000, #$ tosubmitSIPssubjecttotheCourtsresponsetoourmotion W%x& toliftthestay.The19Statesare:Alabama,Connecticut, & !( Delaware,Illinois,Indiana,Kentucky,Massachusetts, ("* Maryland,Michigan,NorthCarolina,NewJersey,NewYork,  Ohio,Pennsylvania,RhodeIsland,SouthCarolina,Tennessee,  VirginiaandWestVirginia.RatherthansubmitaSIPthat / P fullymeetstheNOxSIPCall,these19Statesandthe   DistrictofColumbiamaychoosetosubmitSIPsthatcover   alloftheNOxSIPCallrequirementsexceptforasmallpart 'H  oftheEGUportionandlargeinternalcombustionengine   portionofthebudget.Werefertothesepartialplansthat w  addresstheportionoftheruleunaffectedbytheCourts @  remandasthe PhaseISIPs. X;XXX;  2      ׀BecausetheSIPCallwas  vacatedwithrespecttoGeorgia,Missouri,andWisconsin, o thoseStateswerenotobligatedtosubmitanySIPsby 8 October30,2000.TheSIPsthatcovertheportionofthe  ruleaffectedbytheCourtdecision!andthesubjectof g todaysaction!aretermed,the PhaseIISIPs. 0  6.0 ` WhatWastheCourtsOrderfortheComplianceDate ?` (#` (#  ` OnAugust30,2000,theD.C.Circuitorderedthatthe w   courtorderfiledonJune22,2000beamendedtoextendthe "@" deadlineforfullimplementationoftheNOxSIPCallfrom #$ May1,2003toMay31,2004.Thisextensionwascalculated o%& inthesamemannerusedbytheCourtinextendingthe '8!( deadlineforSIPsubmissions,sothatsourcesinStates  subjecttotheNOxSIPCallwouldhave1,309daysfor  implementingtheSIPasprovidedintheoriginalNOxSIP / P Call.Thisactionwasinresponsetoamotionfiledbythe   industry/laborpetitioners.    <(08z C.0 ` WhatWastheSection126Rule? 0` (#` (#'H (#(#  (e80< ` WehavealsoaddressedinterstateNOxtransportina   finalrule(Section126Rule)thatrespondstopetitions   submittedbyeightNortheastStatesundersection126ofthe 7X  CAA(65FR2674,January18,2000)(theSection126Rule).  Inthisrule,wemadefindingsthat392sourcesin12States  andtheDistrictofColumbiaaresignificantlycontributing /P to1hourozonenonattainmentproblemsinthepetitioning  StatesofConnecticut,Massachusetts,NewYork,and  Pennsylvania.TheupwindStateswithsourcesaffectedby 'H theSection126Ruleare:Delaware,Indiana,Kentucky,  Maryland,Michigan,NorthCarolina,NewJersey,NewYork, w   Ohio,Pennsylvania,Virginia,WestVirginia,andthe "@" DistrictofColumbia.] XXXX;XXXXXXXXX;XXX  3      ׀Thetypesofsourcesaffectedare #$ largeEGUsg8 XXXX;XXXXXXXXX;XXX  4      ׀andlargeindustrialboilersandturbines(non o%& - C   EGUs).TheruleestablishedFederalNOxemissionslimits r fortheaffectedsourcesandsetaMay1,2003compliance  date. X;XXX;  5      ׀WepromulgatedaNOxcapandtradeprogramasthe  P controlremedy.AllofthesourcesaffectedbythisSection j  126RulearelocatedinStatesthataresubjecttotheNOx   SIPCall. H   ` TheSection126Ruleincludesaprovisiontocoordinate b  theSection126RulewithStateactionsundertheNOxSIP    Call.ThisprovisionautomaticallywithdrawstheSection @  126findingsandcontrolrequirementsforsourcesinaState Z iftheStatesubmits,andwegivefinalapprovalto,aSIP  revisionmeetingthefullNOxSIPCallrequirements, 8 includingtheoriginallypromulgatedMay1,2003compliance R deadline(40CFR52.34(i)).WhiletheCourthaschangedthe  NOxSIPCallcompliancedeadlinetoMay31,2004,we 0 promulgatedandjustifiedtheautomaticwithdrawalprovision J basedonapprovalofaSIPwithaMay1,2003compliance    date(64FR2827476,May25,1999;65FR26792684,January "(" 18,2000).Thus,theautomaticwithdrawalprovisioninthe B$$ Section126Ruledoesnotaddressanyothercircumstances. %x& AdditionalissuesregardingtheinteractionoftheSection ' !( QR 8;XXdXXd8   126RuleandSIPsundertheNOxSIPCallmaybeaddressed r throughfuturerulemaking._i X;XXX;  6      _Ԁ  :X;XXX; 1.WhatWastheD.C.CircuitDecisionontheSection126  P Rule?    #X;XX:X;l#:X;XXX; ` OnMay15,2001,apaneloftheD.C.Circuitlargely B  upheldtheSection126RuleinAppalachianPowerv.EPA,249 x  F.3d1032(2001).(AppalachianPower!Section126).   However,theCourtremandedtousthemethodfordetermining :  growthtotheyear2007inheatinpututilizationbyEGUs. p  Thiscalculationisimportantfordeterminingthe  requirementsforEGUs.Inaddition,theCourtvacatedand 2 remandedtoustheportionoftheruleclassifyingas#X;XX:X;#:X;XXX;EGUs h smallcogenerators(cogenerationunitsthatsellelectricity  tothegridinamountsofeitheronethirdorlessoftheir * potentialelectricaloutputcapacityor25megawattsorless ` peryear).Althoughin#X;XX:X;#theMichigandecision(concerning z theNOxSIPCallrulemaking),theD.C.Circuitremandedthis "!  issueontheproceduralgroundofinadequatenotice,inthe "X" AppalachianPower!Section126decision,theCourtvacated r$$ andremandedongroundsthatwedidnotjustifyour && QR 8;XXdXXd8   classificationofsmall_cogenerators_ԀasEGUs.Inanorder r datedOnAugust24,2001,theD.C.Circuitissuedanorder  intheAppalachianPower!Section126:X;XXX;ԀCase,remandingthe  P Section126Rulewithregardtotheclassificationofany j  cogeneratorsasEGUsandtolling(suspending)thedatefor   EGUstoimplementcontrolspendingEPAsresolutionofthe H  EGUgrowthfactorremand.#X;XX:X;#:X;XXX; b   ` DuringthecourseofthelitigationontheSection126    Rule,individualsourcesorgroupsofsourceschallengedthe @  ruleongroundsthatourallocationsofallowanceswere Z improper.Wesettledthesecaseswithseveralofthose  sources#X;XX:X;|#:X;XXX;Ԁwithouragreementtoproposearulemakingrevising 8 theallocations.#X;XX:X; #:X;XXX; R  D.0 ` WhatWeretheTechnicalAmendmentsRulemakings? ` (#` (#  ` WhenwepromulgatedtheNOxSIPCallRule,wedecided H toreopenpubliccommentonthesourcespecificdatausedto b establisheachStates2007EGUbudget(63FR57427,October  !  28,1998).Weextendedthiscommentperiodbynoticedated "@" December24,1998(63FR71220).Weindicatedthatwewould Z$$ entertainrequeststocorrectthe2007EGUbudgetstotake && intoaccounterrorsorupdatesinsomeoftheunderlying '8!( emissionsinventoryandcertainotherspecifieddata. R)"*  ` Followingourreviewofthecommentsreceived,we *$, publishedarulemakingprovidingTechnicalAmendmentsto, r amongotherthings,the2007EGUbudgets(64FR26298,May  14,1999).Inresponsetoadditionalcommentsreceived,we  P publishedasecondrulemaking,makingadditionalTechnical j  Amendmentstothe2007EGUbudgets(65FR11222,March2,   2000).(Thesetworulemakingsmaybereferredto,together, H  astheTechnicalAmendmentsRule.)Inpromulgatingthe b  TechnicalAmendmentsRule,wekeptintactourmethodfor    determiningthebudgets,includingthemethodsfor @  determininggrowthto2007.Wesimplymadeadjustmentsfor Z particularsources#X;XX:X;#:X;XXX;ԀconcerningwhethertheywerelargeEGUs  ornonEGUs,andadjustmentsintheappropriatebaselines 8 forthosesources. R  1.WhatWastheD.C.CircuitDecisionontheTechnical  Amendments?  H  ` OnJune8,2001,theD.C.Circuitissueditsopinionin z acaseinvolvingtheTechnicalAmendments.Appalachian "!  Powerv.EPA,251F.3d1026(D.C.Cir.2001).(Appalachian "X" Power!TechnicalAmendments).Althoughlargelyupholdingthe r$$ TechnicalAmendments,thecourt,asintheAppalachian && Power!Section126case,remandedtheEGUgrowthfactorsand 'P!( vacatedandremandedtheportionoftheruleclassifying j)"* smallcogeneratorsasEGUs.Inaddition,intheAppalachian +$, PowerTechnicalAmendmentsdecision,theCourtremandedand r vacatedthebudgetundertheTechnicalAmendmentsRulefor  Missouriunderboththe1hourand8hourozoneNAAQS.#X;XX:X;l#:X;XXX;  P  #X;XX:X;B#:X;XXX;E.WhatistheOverviewofD.C.CircuitRemands/Vacaturs?#X;XX:X;#:X;XXX;  j   ` Insummary,theD.C.Circuitdecisionsdescribedabove *  revisedorremanded/vacatedportionsoftheNOxSIPCall, `  Section126,andTechnicalAmendmentsrulemakingsas z  follows:#X;XX:X;#:X;XXX; "   (X88"3"  32X(  1  )3  0 `   remandedtheportionoftheNOxSIPCallrequirements X  basedontheassumedcontrollevelforstationary r internalcombustionengines;3K݌` (#` (# Ќ  "3"  32X(  2  )3  0 `   delayedtheNOxSIPCallSIPsubmittaldatetoOctober P 30,2000.Michigan(NOxSIPCall);3݌j` (#` (# Ќ  "3"  32X(  3  )3  0 `   delayedthedateforimplementationoftheNOxSIPCall  reductionstoMay31,2004.Michigan;3݌H` (#` (# Ќ  "3"  3 2X(  4  )3  0 `   remandedandvacatedtheinclusionofWisconsin. b Michigan;3 :݌ ! ` (#` (# Ќ  "3"  3,2X(  5  )3  0 `   remandedandvacatedtheNOxSIPCallbudgetsfor "@" GeorgiaandMissouriunderthe1hourozoneNAAQS. Z$$ Michigan;3,Y݌&&` (#` (# Ќ  "3"  32X(  6  )3  0 `   remandedandvacatedtheNOxSIPCallbudget,as '8!( revisedbytheTechnicalAmendments,forMissouri, R)"* underthe1hourand8hourozoneNAAQS.Appalachian *$, Power!TechnicalAmendments;3݌r` (#` (# Ќ  "3"  3W 2X(  7  )3  0 `   remandedtheEGUgrowthformula.Appalachian  Power!Section126,AppalachianPower!Technical  P Amendments;3W  ݌j ` (#` (# Ќ  "3"  3 2X(  8  )3  0 `   remanded,orremandedandvacated,theclassification   ofsmallcogeneratorsasEGUS.Michigan,Appalachian H  PowerSection126,AppalachianPower!Technical b  Amendments;and3  ݌  ` (#` (# Ќ  "3"  3 2X(  9  )3  0 `   remandedtheclassificationofanycogeneratorsas @  EGUs.AppalachianPowerSection126#X;XX:X;i#:X;XXX;.#X;XX:X;#:X;XXX;3  ݌Z` (#` (# Ќ  #X;XX:X;# (88 ! ! :X;XXX;F.WhatisOurProcessforAddressingtheRemands/  Vacaturs? #X;XX:X;#:X;XXX; P  ` Todate,wehaverespondedtothesedecisionsas  follows: *  ` InlettersdatedApril11,2000,totheGovernorsof ` theaffectedStates,weadvisedthattheStatesmaysubmit z byOctober30,2000PhaseISIPsthatincludeabudget "!  allowingmoreemissionsthanundertheNOxSIPCallRule. "X" Thisbudgetneednotincludeanyreductionsfromasetof r$$ EGUsthatwebelieveincludesallofthesmallcogenerators && orreductionsfrominternalcombustionengines.In 'P!( addition,weadvisedWisconsinthatitneednotsubmitaNOx j)"* SIPCallSIPrevision.Further,weadvisedGeorgiaand +$, Missourith