Acid Rain Program; Elimination of Direct Sale and IPP Written Guarantee Program

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 73

[FRL-5513-5]

RIN 2060-AG41

Acid Rain Program; Elimination of Direct Sale and IPP Written

Guarantee Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: Title IV of the Clean Air Act, as amended by the Clean Air Act

Amendments of 1990 (the Act), authorized the Environmental Protection

Agency (EPA) to establish the Acid Rain Program to reduce the adverse

health and ecological effects of acidic deposition. Title IV mandates

that EPA hold yearly auctions and direct sales of allowances for a

small portion of the total allowances allocated each year. EPA is also

required to issue to Independent Power Producers (IPPs) guarantees to

purchase allowances in the direct sale. The direct sale and IPP

provisions were designed to help ensure that units, including new IPPs,

have a public source of allowances beyond those already allocated

initially. Because no allowances have been sold through the direct sale

program since it began in 1993, EPA is proposing to revise its

regulations in order to terminate the direct sales. The allowances

available previously in the direct sale program will now be available

in the annual allowance auctions. In addition, because the IPP written

guarantee program is implemented through the direct sale program and no

applications for such guarantees have been received, EPA is proposing

to terminate the guarantee program.

Because the rule revision is not expected to receive any adverse

comments, the revision is also being issued as a direct final rule in

the Final Rules section of this Federal Register.

DATES: Comments on the regulations proposed by this action must be

received on or before July 8, 1996.

ADDRESSES: Comments. All written comments must be identified with the

appropriate docket number (Docket No. A-96-19) and must be submitted in

duplicate to U.S. Environmental Protection Agency, EPA Air Docket

Section (6102), Waterside Mall, Room M1500, 1st Floor, 401 M St. SW.,

Washington, DC 20460.

Docket. Docket No. A-96-19, containing information considered

[[Page 28831]]

during development of the promulgated standards and requirements in

this proposal, is available for public inspection and copying between

8:30 a.m. and 3:30 p.m., Monday through Friday, at EPA's Air Docket

Section at the above address. A reasonable fee may be charged for

copying.

FOR FURTHER INFORMATION CONTACT: Kenon Smith, U.S. Environmental

Protection Agency, Acid Rain Division (6204J), 401 M Street SW.,

Washington, DC 20460, (202) 233-9164, or call the Acid Rain Hotline at

(202) 233-9620.

SUPPLEMENTARY INFORMATION: If no significant, adverse comments are

timely received, no further activity is contemplated in relation to

this proposed rule and the direct final rule in the Final Rules section

of this Federal Register will automatically go into effect on the date

specified in that rule. If significant, adverse comments are timely

received on any portion of the direct final rule, that portion will be

withdrawn and all public comment received on that portion will be

addressed in a subsequent final rule based on the relevant portions of

this proposed rule. Because the Agency will not institute a second

comment period on this proposed rule, any parties interested in

commenting should do so during this comment period.

For further supplemental information, the detailed rationale, and

the rule revision, see the information provided in the direct final

rule in the Final Rules section of this Federal Register.

List of Subjects in 40 CFR Part 73

Environmental protection, Acid rain, Air pollution control,

Electric Utilities, Reporting and record keeping requirements, and

Sulfur dioxide.

Dated: May 24, 1996.

Carol M. Browner,

Administrator.

[FR Doc. 96-14113 Filed 6-5-96; 8:45 am]

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