Acid Rain Program; Auction Offerors to Set Minimum Prices in Increments of $0.01

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 73

[FRL-5961-5]

Acid Rain Program; Auction Offerors to Set Minimum Prices in

Increments of $0.01

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

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. The program

utilizes an innovative system of marketable allowances that are

allocated to electric utilities. Title IV mandates that EPA hold yearly

auctions of allowances for a small portion of the total allowances

allocated each year. Private parties may also offer their allowances

for sale in the EPA auctions and specify a minimum sales price.

Currently, the regulations require that an offeror's minimum sales

price be in whole dollars (see 40 CFR part 73, Subpart E, Sec. 73.70 ).

No such restriction applies to auction bidders and since 1995, EPA has

allowed bidders to submit bids in increments of less than a dollar. The

restriction on minimum offer prices was originally intended to

facilitate administrative ease, but allowing minimum sales prices in

increments of $0.01 would not change the design, operation, or

administrative burden of the auctions in any way. In addition, it would

be consistent with the flexibility afforded auction bidders. Thus, EPA

is proposing to amend the current regulations to allow offerors to

submit their minimum offer price in increments of $0.01.

Because this rule revision was discussed in an Advance Notice of

[[Page 5774]]

Proposed Rulemaking (see the June 6, 1996 Federal Register, 61 FR

28995-28998) and EPA received no adverse comments, this 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 March 6, 1998.

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

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) 564-9164.

SUPPLEMENTARY INFORMATION: If no significant, adverse comments are

received by the close of the comment period, 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 received, they will be addressed in a

subsequent final 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, 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 recordkeeping requirements, Sulfur

dioxide.

Dated: January 29, 1998.

Carol M. Browner,

Administrator, U.S. Environmental Protection Agency.

[FR Doc. 98-2718 Filed 2-3-98; 8:45 am]

BILLING CODE 6560-50-P