Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

Acid Rain Division

[FRL-5269-4]

Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: EPA today announces the allocation of allowances to small

diesel refineries for desulfurization of fuel

[[Page 39384]]

during 1994, plus additional allocations for desulfurization 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, and the notice published at 60 FR 14836, March 21, 1995.

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

(6204J), 401 M St., SW, Washington DC; 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 allocations may install 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 that desulfurize diesel fuel from October 1, 1993

through December 31, 1999. Small 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.

On July 7, 1994, EPA announced the first allocation of allowances under

the small diesel refinery program.

In late 1994, EPA was informed by several refiners that there was

confusion regarding eligibility for the program. To resolve the

confusion, EPA provided notice on March 21, 1995 (60 FR 14836) that

extended the submittal date for requesting allowances for

desulfurization in 1993 and in 1994 until May 15, 1995.

The following table lists 1,458 allowances to be allocated to five

eligible refineries for desulfurization from October 1, 1993 through

December 31, 1993. These refineries and allowances are in addition to

the 7,944 allowances allocated in 1994 to fifteen refiners (see 59 FR

34811, July 7, 1994), bringing the total number of allowances allocated

to 9,402. The allowances have a compliance year of 1995.

------------------------------------------------------------------------

Refiner Refinery name or location Allocation

------------------------------------------------------------------------

Big West Oil................ Flying J.................... 303

Crysen...................... Woods Cross, Utah........... 162

Hunt........................ Tuscaloosa, Alabama......... 580

La Gloria................... Crown....................... 400

Witco....................... Golden Bear................. 13

------------------------------------------------------------------------

The following table lists the allowances allocated to eligible

small diesel refineries for desulfurization in 1994. A total of 28215

allowances are allocated to 19 refiners. These allowances have a

compliance year of 1995.

------------------------------------------------------------------------

Refiner Refinery name or location Allocation

------------------------------------------------------------------------

Big West Oil................ Flying J.................... 1230

Cenex....................... Laurel, Montana............. 1500

Crysen...................... Woods Cross, Utah........... 278

Frontier.................... Cheyenne, Wyoming........... 1500

Gary Williams............... Bloomfield.................. 1232

Giant....................... Ciniza...................... 1275

Holly....................... Lea......................... 1438

Navajo...................... 1479

Montana..................... 334

Hunt........................ Tuscaloosa, Alabama......... 1500

Kern........................ Bakersfield, California..... 1500

La Gloria................... Crown....................... 1500

Lion........................ El Dorato................... 1500

Paramount................... Paramount, California....... 1500

Pennzoil.................... Atlas....................... 1500

Roosevelt................... 214

Powerine.................... Santa Fe Springs............ 1500

Pride....................... Abilene, Texas.............. 1263

Sinclair.................... Little America.............. 1362

Sinclair, Wyoming........... 1500

Tulsa, Oklahoma............. 1500

U.S. Oil & Refining......... Tacoma, Washington.......... 936

Witco....................... Golden Bear................. 51

Wyoming Refining............ Denver, Colorado............ 623

------------------------------------------------------------------------

[[Page 39385]]

Requests for allowances for desulfurization during 1995 are due no

later than April 1, 1996. Allowances allocated in 1996 will have a

compliance year of 1996.

Dated: July 27, 1995.

Paul M. Stolpman,

Director, Office of Atmospheric Programs.

[FR Doc. 95-18989 Filed 8-1-95; 8:45 am]

BILLING CODE 6560-50-P