Acid Rain Program: Early Reduction Credits

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 73

[FRL-5845-2]

Acid Rain Program: Early Reduction Credits

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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

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

Agency (EPA or Agency) to establish the Acid Rain Program in order to

reduce the adverse health and ecological impacts of acidic deposition.

On March 23, 1993, the Agency promulgated final rules allocating

allowances to utility units, including the criteria and method of

allocating early reduction credits under section 404(e) of the Act.

This action implements a settlement of litigation between EPA and a

utility regarding Phase II early reduction credits. The settlement

provides a method by which additional allowances may be loaned to units

receiving early reduction credits as an incentive to further reduce

emissions prior to the units becoming subject to the applicable Acid

Rain Program emission limitations.

The revisions of the early reduction credit program proposed today

are also being issued as a direct final rule because the Agency views

the revisions as noncontroversial and anticipates no adverse comments.

The detailed rationale for the revisions, and the revised rule

provisions, are set forth in the preamble of the direct final rule. If

no significant, adverse comments are timely received (see DATES

section), no further action will be taken on this proposal and the

direct final rule will become final on the date provided in that

action.

DATES: Comments. Comments on the regulations proposed by this action

must be received on or before July 24, 1997, unless a hearing is

requested by July 7, 1997. If a hearing is requested, written comments

must be received by August 8, 1997.

Public Hearing. Anyone requesting a public hearing must contact EPA

no later than July 7, 1997. If a hearing is held it will take place

July 8, 1997, beginning at 10:00 am.

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

appropriate docket number (Docket No. A-97-31) and must be submitted in

duplicate to EPA Air Docket Section (6102), Waterside Mall, Room M1500,

1st Floor, 401 M Street, SW, Washington DC 20460.

Public Hearing. If a public hearing is held, it will be held at the

EPA Headquarters Auditorium, 401 M Street, SW, Washington, DC. Persons

interested in attending the hearing or wishing to present oral

testimony should notify Kathy Barylski, telephone 202-233-9074, in

advance.

Docket. Docket No. A-97-31, containing supporting information used

to develop the proposal, is available for public inspection and copying

from 8:00 a.m. to 5:30 p.m., Monday through Friday, excluding legal

holidays, at

[[Page 34040]]

EPA's Air Docket Section at the above address. Information concerning

the original rules is found in Docket No. A-92-06. A reasonable fee may

be charged for copying.

FOR FURTHER INFORMATION CONTACT: Kathy Barylski at (202) 233-9074 Acid

Rain Division (6204J), U.S. Environmental Protection Agency, 401 M St.,

S.W., Washington, DC 20460; or the Acid Rain Hotline at (202) 233-9620.

Electronic copies of this rulemaking can be accessed through the Acid

Rain Division website at http://www.epa.gov/acidrain.

SUPPLEMENTARY INFORMATION: In this documet, EPA proposes revisions

to the early reduction credit regulation of the Acid Rain Program

that are presented and discussed in detail in a direct final rule

published in the Final Rules Section of this Federal Register. The

proposed revisions provide a method by which additional allowances

may be loaned to units receiving early reduction credits as an

incentive to further reduce emissions prior to the units becoming

subject to the applicable Acid Rain Program emission limitations.

EPA is seeking comment on these proposed revisions. EPA considers

these revisions to be noncontroversial and anticipates no adverse

comments. If EPA timely receives significant, adverse comments, EPA

will publish a document in the Federal Register withdrawing the

direct final rule. In that event, all public comments received will

be treated as comments on this proposed rule and will be addressed

in a subsequent final rulemaking document. EPA will not institute a

second comment period on this document. Any parties interested in

commenting on these revisions to Part 73 should do so at this time.

The direct final rule includes the rule revisions and a detailed

rationale for them.

Administrative Requirements

A. Executive Order 12866

Under Executive Order 12866, 58 FR 51735 (October 4, 1993), the

Administrator must determine whether the regulatory action is

``significant'' and therefore subject to Office of Management and

Budget (OMB) review and the requirements of the Executive Order. The

Order defines ``significant regulatory action'' as one that is likely

to result in a rule that may:

(1) Have an annual effect on the economy of $100 million or more or

adversely affect in a material way the economy, a sector of the

economy, productivity, competition, jobs, the environment, public

health or safety, or State, local, or tribal governments or

communities;

(2) Create a serious inconsistency or otherwise interfere with an

action taken or planned by another agency;

(3) Materially alter the budgetary impact of entitlements, grants,

user fees, or loan programs or the rights and obligations of recipients

thereof; or

(4) Raise novel legal or policy issues arising out of legal

mandates, the President's priorities, or the principles set forth in

the Executive Order.

Pursuant to the terms of Executive Order 12866, it has been

determined that this rule is not a ``significant regulatory action''

because the rule does not meet any of the criteria listed above. As

such, this action was not submitted to OMB for review.

B. Unfunded Mandates Act

Section 202 of the Unfunded Mandates Reform Act of 1995 (``Unfunded

Mandates Act'') requires that the Agency prepare a budgetary impact

statement before promulgating a rule that includes a federal mandate

that may result in expenditure by State, local, and tribal governments,

in aggregate, or by the private sector, of $100 million or more in any

one year. Section 203 requires the Agency to establish a plan for

obtaining input from and informing, educating, and advising any small

governments that may be significantly or uniquely affected by the rule.

Under section 205 of the Unfunded Mandates Act, the Agency must

identify and consider a reasonable number of regulatory alternatives

before promulgating a rule for which a budgetary impact statement must

be prepared. The Agency must select from those alternatives the least

costly, most cost-effective, or least burdensome alternative that

achieves the objectives of the rule, unless the Agency explains why

this alternative is not selected or the selection of this alternative

is inconsistent with law.

Because this rule is estimated to result in the expenditure by

State, local, and tribal governments or the private sector of less than

$100 million in any one year, the Agency has not prepared a budgetary

impact statement or specifically addressed the selection of the least

costly, most cost-effective, or least burdensome alternative. Because

small governments will not be significantly or uniquely affected by

this rule, the Agency is not required to develop a plan with regard to

small governments.

The revisions to part 73 will not have a significant effect on

regulated entities or State permitting authorities. The revisions

represent an economic benefit to the affected utility and a benefit to

the environment. The early reduction credit program is operated

entirely by the EPA and, therefore, the changes will not burden the

State or local permitting authorities.

C. Paperwork Reduction Act

This rule will increase the information collection requirements of

the existing regulations, but only for the utilities that are eligible

and wish to participate in the early reduction credit program. As only

two utilities are eligible for early reduction credits, an information

collection report is not required. Therefore, no information collection

report has been prepared or submitted to the OMB under the Paperwork

Reduction Act, 44 U.S.C. 3501, et seq.

D. Regulatory Flexibility

The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., requires

each federal agency to consider potential impacts of its regulations on

small business ``entities.'' Under 5 U.S.C. 604(a), an agency issuing a

notice of proposed rulemaking must prepare and make available for

public comment a regulatory flexibility analysis. Such an analysis is

not required if the head of an agency certifies that a rule will not

have a significant economic impact on a substantial number of small

entities, pursuant to 5 U.S.C. 605(b).

Today's rule does not impact small entities. The only two utilities

eligible for early reduction credits are large corporations, not small

entities. Pursuant to the provisions of 5 U.S.C. 605(b), I hereby

certify that the revised rule will not have a significant, adverse

impact on a substantial number of small entities.

E. Miscellaneous

In accordance with section 117 of the Act, issuance of this rule

was preceded by consultation with any appropriate advisory committees,

independent experts, and federal departments and agencies.

List of Subjects in 40 CFR Part 73

Air pollution control, Electric utilities, Reporting and

recordkeeping requirements, Sulfur dioxide.

Dated: June 16, 1997.

Carol M. Browner,

Administrator.

[FR Doc. 97-16512 Filed 6-23-97; 8:45 am]

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