Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

Acid Rain Division

[FRL-5008-4]

Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice.

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SUMMARY: EPA today announces the allocation of allowances to small

diesel refineries for desulfurization of fuel from October 1, 1993

through December 31, 1993. The eligibility for and calculation of

allowances to small diesel refineries is in accordance with Section

410(h) of the Clean Air Act, implemented at 40 CFR part 73 subpart G.

FOR FURTHER INFORMATION CONTACT: Kathy Barylski, EPA Acid Rain Division

(6204J), 401 M St., SW., Washington DC 20460; telephone (202) 233-9074.

SUPPLEMENTARY INFORMATION: EPA's Acid Rain Program was established by

Title IV of the Clean Air Act Amendments of 1990 (CAAA) to reduce acid

rain in the continental United States. The Acid Rain Program will

achieve a 50 percent reduction in sulfur dioxide (SO2) emissions

from utility units. The SO2 reduction program is a flexible

market-based approach to environmental management. As part of this

approach, EPA allocates ``allowances'' to affected utility units. Each

allowance is a limited authorization to emit up to one ton of SO2.

At the end of each calendar year, each unit must hold allowances in an

amount equal to or greater than its SO2 emissions for the year.

Allowances may be bought, sold, or transferred between utilities and

other interested parties. Those utility units whose annual emissions

are likely to exceed their allocation of allowances may either install

pollution control technologies or switch to cleaner fuels to reduce

SO2 emissions, or buy additional allowances.

Section 410(h) of the Clean Air Act provides allowances for small

diesel refineries which desulfurize diesel fuel from October 1, 1993

through December 31, 1999. Small diesel refineries are not otherwise

affected by the Acid Rain Program and do not need the allowances to

comply with any provision of the Clean Air Act. Thus, the allowances

serve as a financial benefit to small diesel refineries desulfurizing

diesel fuel. The following table lists the allowances to be allocated

to each eligible small diesel refinery for desulfurization of fuel from

October 1, 1993 to December 31, 1993:

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Refiner Refinery/Location Allocation

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Cenex........................ Laurel, Montana.............. 682

Ergon........................ Vicksburg, Mississippi....... 11

Frontier..................... Cheyenne, Wyoming............ 813

Gary Williams................ Bloomfield................... 306

Giant........................ Ciniza....................... 300

Holly........................ Lea.......................... 275

Holly........................ Navajo....................... 367

Kern Oil..................... Bakersfield, California...... 432

Lion Oil..................... El Dorado.................... 216

Paramount.................... Paramount, California........ 555

Pennzoil..................... Atlas........................ 369

Pennzoil..................... Roosevelt.................... 82

Powerine..................... Santa Fe Springs, CA......... 595

Pride........................ Abilene, Texas............... 365

Sinclair/Little America...... Casper....................... 349

Sinclair..................... Sinclair, Wyoming............ 592

Sinclair..................... Tulsa, Oklahoma.............. 1174

U.S. Oil & Refining Co....... Tacoma, Washington........... 269

Wyoming Refining Company..... Denver, Colorado............. 192

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A total of 7944 allowances are allocated. Allowances for

desulfurization which occurs from 1994 through 1999 will be made

annually.

The allowances listed above will be placed in the refiners'

accounts in the Allowance Tracking System (ATS) this fall. Until that

time, the refiners can trade their allowances but the trades cannot be

recorded in the ATS. Allowances allocated to small diesel refineries in

1994 (for 1993 desulfurization) and 1995 (for 1994 desulfurization)

will have a compliance year of 1995, the first compliance year of the

Acid Rain Program. The compliance year of allowances allocated

subsequent to 1995 will be the year the allowances are allocated.

Dated: June 19, 1994.

Paul Stolpman,

Director, Office of Atmospheric Programs.

[FR Doc. 94-16459 Filed 7-6-94; 8:45 am]

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