Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

[FRL-5503-5]

Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice.

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SUMMARY: EPA today announces the allocation of allowances to small

diesel

[[Page 21463]]

refineries for desulfurization of fuel during 1995. 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 73 subpart G.

FOR FURTHER INFORMATION CONTACT: Kenon Smith, EPA Acid Rain Division

(6204J), 401 M St., SW, Washington DC; telephone (202) 233-9164.

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.

The following table lists the allowances allocated to eligible

small diesel refineries for desulfurization in 1995. A total of 29,411

allowances are allocated to 19 refiners. These allowances have a

compliance year of 1996.

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Refinery name or

Refiner location Allocation

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Big West Oil........................ Flying J, Utah........ 1,277

Cenex............................... Laurel, Montana....... 1,500

Crysen.............................. Woods Cross, Utah..... 806

Frontier............................ Cheyenne, Wyoming..... 1,500

Gary Williams....................... Bloomfield*........... 867

Giant............................... Bloomfield*........... 271

Ciniza, New Mexico.... 1,500

Holly............................... Lea, New Mexico....... 1,500

Navajo, New Mexico.... 1,500

Montana............... 358

Hunt................................ Tuscaloosa, Alabama... 1,500

Kern................................ Bakersfield, 1,500

California.

La Gloria........................... Tyler, Texas.......... 1,500

Lion................................ El Dorado, Arkansas... 1,500

Paramount........................... Paramount,California.. 1,500

Pennzoil............................ Atlas................. 1,500

Products.............. 512

Powerine............................ Santa Fe Springs...... 1,479

Pride............................... Abilene, Texas........ 1,316

Sinclair............................ Little America, 1,439

Wyoming.

Sinclair, Wyoming..... 1,500

Tulsa, Oklahoma....... 1,500

U.S. Oil & Refining................. Tacoma, Washington.... 932

Witco............................... Golden Bear, 101

California.

Wyoming Refining.................... New Castle, Wyoming... 553

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* Gary Williams sold the Bloomfield refinery to Giant on October 4,

1995. Gary Williams is allocated allowances for production through

October 3 and Giant is credited with production from October 4 through

December 31.

Requests for allowances for desulfurization during 1996 are due no

later than April 1, 1997. Allowances allocated in 1997 will have a

compliance year of 1997.

Dated: May 3, 1996.

Brian J. McLean,

Director, Acid Rain Division.

[FR Doc. 96-11752 Filed 5-9-96; 8:45 am]

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