[Federal Register: November 2, 2007 (Volume 72, Number 212)]
[Notices]
[Page 62238-62245]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02no07-48]
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ENVIRONMENTAL PROTECTION AGENCY
[EPA-HQ-OAR-2004-0076; FRL-8490-4]
Final Notice of Data Availability for EGU NOX Annual and NOX
Ozone Season Allocations for the Clean Air Interstate Rule Federal
Implementation Plan Trading Programs
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of data availability (NODA).
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SUMMARY: On March 15, 2006, EPA promulgated Federal Implementation
Plans (FIPs) for all States covered by the Clean Air Interstate Rule
(CAIR). The CAIR FIPs will regulate electric generating units (EGUs) in
the affected States and achieve the emission reductions required by
CAIR until each affected State has an approved CAIR State
Implementation Plan (SIP) to achieve the reductions. EPA will withdraw
a State's FIP in coordination with approval of a full CAIR SIP
implementing the requirements of CAIR.
The CAIR FIP indicates that the Administrator will determine by
order the CAIR NOX allowance allocations. In the CAIR FIP,
EPA stated that it would publish a NODA with NOX allowance
allocations for 2009 through 2014, provide the public with the
opportunity to object to the allocations and underlying data, and then
publish a final NODA (adjusted if necessary). On August 4, 2006, EPA
published a preliminary NODA in the Federal Register and accepted
objections to the data through an electronic docket. This action
constitutes the final NODA and indicates the existing units receiving
CAIR NOX allowances under the FIPs and the quantity of
allowances to be allocated to each unit. These FIP allowances will only
be recorded for sources located in States that do not have an approved
SIP in place. Most States have an approved SIP in place, and the State
determined allowances will be recorded for sources in these states.
In this NODA, the EPA is making available to the public the
Agency's final determination of the NOX annual and
NOX ozone season allocations under the CAIR FIPs that EPA is
making
[[Page 62239]]
to individual existing units under the CAIR FIP NOX annual
and NOX ozone season trading programs for 2009 through 2014,
as well as the data relating to those allocations. The NODA references,
or presents in tables, all these data and the NOX annual and
NOX ozone season allowance allocations calculated using the
data and the allocation formulas finalized in the CAIR FIPs for
existing units for 2009 through 2014.
DATES: The recordation deadline for 2009 CAIR FIP NOX
allowances is September 30, 2007. EPA intends to record CAIR FIP
NOX allowances in the fall of 2007. EPA is close to taking
final action on many SIPs. Because it is EPA's preference to have
States determine allowances, EPA is trying to finalize these approvals
before allocating FIP allowances, so wherever possible, State-
determined allowances will be allocated to sources.
Docket: The EPA has established a docket for this action under
Docket ID No. EPA-HQ-OAR-2004-0076. All documents in the docket are
listed in the http://www.regulations.gov index. Although listed in the index,
some information is not publicly available, i.e., confidential business
information or other information whose disclosure is restricted by
statute. Certain other material, such as copyrighted material, is not
placed on the Internet and will be publicly available only in hard copy
form. Publicly available docket materials are available either
electronically in http://www.regulations.gov or in hard copy at the EPA Docket
Center, EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington,
DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal holidays. The telephone number for the
Public Reading Room is (202) 566-1744, and the telephone number for the
Air Docket is (202) 566-1742.
FOR FURTHER INFORMATION CONTACT: General questions concerning this
action and technical questions concerning heat input or fuel data
should be addressed to Brian Fisher, USEPA Headquarters, Ariel Rios
Building, 1200 Pennsylvania Ave., Mail Code 6204 J, Washington, DC
20460. Telephone at (202) 343-9633, e-mail at fisher.brian@epa.gov.
If mailing by courier, address package to Brian Fisher, 1310 L St.,
NW., RM 713G, Washington, DC 20005.
SUPPLEMENTARY INFORMATION:
Outline
1. General Information
2. What Is This Action?
3. How Are the Data in this NODA Related to the CAIR FIP
NOX Allowance Allocations?
4. What Are the Sources of the EPA's Data?
5. How Do I Interpret the Data Tables Presented Through This NODA?
6. Is the EPA Requesting Objections to These Data?
7. What Data Is EPA Making Available?
8. Where Can I Get the Data Discussed in This NODA?
1. General Information
This action relates to Sec. Sec. 97.141 and 97.341 of the CAIR
FIP. These sections indicate that the Administrator will determine by
order the CAIR NOX allowance allocations. In the CAIR FIP,
EPA stated that it would publish a NODA with NOX allowance
allocations for 2009 through 2014 (71 FR 25352).
Does This Action Apply to Me?
Categories and entities potentially regulated by this action
include the following:
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Examples of
Category NAICS code potentially
regulated entities
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Industry.................... 221112.............. Fossil fuel-fired
electric utility
steam generating
units.
Federal Government.......... 221122.............. Fossil fuel-fired
electric utility
steam generating
units.
State/local/Tribal 221122.............. Fossil fuel-fired
government. electric utility
steam generating
units owned by
municipalities.
921150.............. Fossil fuel-fired
electric utility
steam generating
units in Indian
Country.
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This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. If you have any questions regarding the applicability of this
action to a particular entity, review Sec. Sec. 97.102, 97.104, and
97.105 in the CAIR FIP concerning NOX annual emissions and
Sec. Sec. 97.302, 97.304, and 97.305 in the CAIR FIP concerning
NOX ozone season emissions. You may also consult the person
listed in the preceding section under FOR FURTHER INFORMATION CONTACT.
The NOX allowance allocations in this NODA are for
existing units. Existing units are units that commenced operation
before January 1, 2001. New units, which commence operation on or after
January 1, 2001, will initially receive allowances through the new unit
set aside. Once new units have established a five-year baseline, they
will be incorporated into the calculation for allowances for existing
units for future years to the extent the allowances for existing units
have not already been allocated.
The CAIR FIP rule states units will be subject to the CAIR FIP
trading programs (i.e, to the CAIR FIP SO2, NOX
annual, or NOX ozone season programs, as appropriate) if
they are a stationary, fossil-fuel-fired boiler or stationary, fossil-
fuel-fired combustion turbine serving at any time on or after November
15, 1990 or the start-up of the unit's combustion chamber, a generator
with nameplate capacity of more than 25 MWe producing electricity for
sale. Certain cogeneration units or solid waste incineration units
meeting these general applicability requirements are exempt from the
CAIR FIPs and are described below. The inventory of existing potential
CAIR units, which comprises the units allocated allowances under this
NODA, is based on EPA's preliminary application of the general
applicability requirements and these exemptions. As discussed in the
preliminary NODA and in this action, the inventory does not reflect a
final determination of which units are subject to the CAIR FIPs.
Cogeneration Unit Exemption
Certain cogeneration units meeting the general applicability
requirements are exempt from the CAIR FIP trading programs.
Cogeneration units are units having equipment used to produce
electricity and useful thermal energy for industrial, commercial,
heating, or cooling purposes through sequential use of energy and
meeting certain operating and efficiency standards. Any cogeneration
unit not serving at any time (since the later of November 15, 1990 or
the start-up of the unit) a generator with a nameplate capacity greater
than 25 MWe, supplying more than \1/3\ potential electric output
capacity, and more than 219,000 Mw-hrs, annually to any utility power
distribution system for sale is exempt from the requirements of the
CAIR FIP trading rules. Otherwise, a cogeneration
[[Page 62240]]
unit meeting the general applicability requirements is subject to the
CAIR FIPs.
The CAIR FIP defined ``cogeneration unit'' as a stationary, fossil-
fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine:
(1) Having equipment used to produce electricity and useful thermal
energy for industrial, commercial, heating, or cooling purposes through
the sequential use of energy; and
(2) Producing during the 12-month period starting on the date the
unit first produces electricity and during any calendar year after the
calendar year in which the unit first produces electricity--
(i) For a topping-cycle cogeneration unit,
(A) Useful thermal energy not less than 5 percent of total energy
output; and
(B) Useful power that, when added to one-half of useful thermal
energy produced, is not less then 42.5 percent of total energy input,
if useful thermal energy produced is 15 percent or more of total energy
output, or not less than 45 percent of total energy input, if useful
thermal energy produced is less than 15 percent of total energy output.
(ii) For a bottoming-cycle cogeneration unit, useful power not less
than 45 percent of total energy input.
Subsequent to the CAIR FIP rulemaking, EPA finalized another action
that modified the definition of ``cogeneration unit'' (and made other
revisions to the definitions under the CAIR FIPs) to exclude energy
input from biomass fuel when calculating efficiency of cogeneration
units that are boilers. This makes it possible for some additional
cogeneration units that co-fire biomass to qualify for exemption from
the CAIR FIP rules. The inventory of existing potential CAIR units and
the allocation tables in this action that are based on the inventory
reflect EPA's preliminary application of the revised cogeneration unit
definition and the other revisions to the definitions under the CAIR
FIPs.
Solid Waste Incinerator Exemption
A solid waste incineration unit meeting the general applicability
requirements and commencing operation before January 1, 1985, for which
the average annual fuel consumption of non-fossil fuels during 1985-
1987 exceeded 80 percent and the average annual fuel consumption of
non-fossil fuels during any 3 consecutive calendar years after 1990
exceeds 80 percent, is not subject to the CAIR FIP cap-and-trade
program. Further, a solid waste incineration unit meeting the general
applicability requirements and commencing operation on or after January
1, 1985, for which the average annual fuel consumption of non-fossil
fuels for the first 3 calendar years of operation exceeds 80 percent
and the average annual fuel consumption of non-fossil fuels during any
3 consecutive calendar years after 1990 exceeds 80 percent, is not
subject to the CAIR FIP cap- and trade program. The inventory of
existing potential CAIR units, and the allocation tables in this action
that are based on the inventory, reflect EPA's preliminary application
of the solid waste incineration unit exemption.
2. What Is This Action?
In the March 15, 2006 final action on the CAIR FIP, the EPA
finalized NOX annual and ozone season trading programs for
EGUs as the federal implementation remedy for CAIR. The EPA decided to
adopt, as the FIP for each State in the CAIR region, the model cap-and-
trade programs in the final CAIR, modified slightly to allow for
federal instead of State implementation (as revised March 15, 2006).
These programs include a NOX annual trading program and
NOX ozone season trading program. As explained in the CAIR
FIP Notice of Final Rulemaking (NFR), the FIP NOX annual and
NOX ozone season trading programs require CAIR sources to
hold allowances sufficient to cover their emissions for each control
period. A CAIR NOX annual allowance will authorize the
emission of a ton of NOX during a calendar year, and a CAIR
NOX ozone season allowance will authorize the emission of a
ton of NOX during an ozone season (May 1 through September
30).
In the CAIR FIP NFR, EPA adopted the State NOX annual
and NOX ozone season emission budgets for each State covered
by a CAIR FIP (see Tables V-1 and V-2 in the CAIR FIP NFR); these are
the same State emission budgets as finalized in the CAIR. For each
State covered by the CAIR FIP NOX trading programs, the
State NOX budgets are the total amount of allowances that
EPA will allocate to sources in that State for use in the FIP
NOX trading programs. EPA determined the method for
allocating NOX annual and NOX ozone season
allowances under the FIP through a process that included extensive
public participation.
In this action, we are finalizing the inventory of existing units
that currently are potential CAIR units solely for purposes of
allocating allowances for 2009-2014, the heat input, fuel type, and
resulting baseline heat input data used to calculate the NOX
allowance allocation to the identified existing potential CAIR units
under the CAIR FIPs, and the resulting allowance allocations themselves
for 2009-2014.\1\
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\1\ EPA notes that if, subsequent to this NODA, a determination
is made that a source included in this inventory is not subject to
CAIR, then the Administrator will deduct any unused allocated
allowances as established in the procedures set forth in Sec. Sec.
97.154(b) and 97.354(b), and transfer them to a new unit set-aside
for the appropriate State.
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The inventory of existing potential CAIR units was proposed, and is
finalized, only for the purpose of making allocations for 2009-2014.
The inventory, and the data on which the inventory is based, can be
revised in future NODAs addressing allocations. Furthermore, the
inclusion of a unit in the inventory (and thus in the FIP allocations
for 2009-2014) does not constitute a determination that the unit is
subject to the requirements of the CAIR FIPs; similarly, the exclusion
of a unit from the inventory (and thus from the allowance allocations
for 2009-2014) does not constitute a determination that the unit is not
covered by the CAIR FIPs. However, EPA has made specific determinations
for certain individual units, for which objections concerning the
inclusion in or exclusion from the inventory were submitted in response
to this NODA or for which a request for an applicability determination
was submitted under Sec. 97.104(c) or 97.304(c) are covered by a CAIR
FIP. These determinations are binding, subject to any conditions set
forth in the respective determinations and to any administrative
appeals under Part 78 of EPA's regulations. Copies of these
determinations are included in the docket for this NODA.
EPA notes that, in some cases where objections to the inclusion of
a unit in or exclusion of a unit from the inventory were submitted in
response to this NODA or where a request for an applicability
determination was submitted under Sec. 97.104(c) or 97.304(c), EPA
issued an applicability determination that is used in developing the
final inventory, and is included in the docket, for this NODA. However,
in some cases EPA was unable to complete the applicability
determination in time for issuance of this NODA. In the latter cases,
the units are being included in the inventory of potential existing
CAIR units and allocated allowances in this NODA. However, EPA intends
to complete the process of issuing an applicability determination in
each of these cases in the relatively near future. The inclusion of
these units in the inventory in no way indicates what
[[Page 62241]]
applicability determination EPA will make and whether the units are
subject to the CAIR FIPs. In fact, as discussed below, the CAIR FIPs
include procedures for addressing units that are allocated CAIR FIP
allowances but are subsequently determined not to be subject to the
CAIR FIPs.
This action explains what heat input and fuel type data, and
resulting baseline heat inputs, are used in calculating the allocation
for each potential existing unit and from where these data came. The
EPA published a draft NODA in 2006 to provide opportunity for the
public (including source owners and operators) to submit objections to
the underlying data (including the resulting baseline heat inputs and
allocations). This action incorporates data submitted through those
objections if the data were determined to be the best available data.
Under the CAIR FIP trading rules (40 CFR 97.142(a)(3) and
97.342(a)(3)), we explained that we determine what data are the best
available by ``weighing the likelihood that data are accurate and
reliable and giving greater weight to data submitted to a governmental
entity in compliance with legal requirements or substantiated by an
independent entity.'' For existing potential CAIR units, this NODA
represents the final determination of the heat input and fuel type data
used in the allocations for 2009-2014. Similarly, this NODA represents
the final determination of the 2009-2014 allocations themselves.
However, EPA will issue NODAs in the future to address CAIR FIP
allocations for 2009-2014 for new potential CAIR units and for 2015 and
thereafter for existing and new potential CAIR units and will provide
an opportunity for objections.
The Agency's preference is for States to make decisions about
NOX allocations for their sources. Although in this action
EPA is determining NOX allocations for the CAIR FIP trading
programs, we intend to record EPA-determined allocations in allowance
accounts only for sources located in a State without a timely, approved
CAIR SIP revision or a timely, approved abbreviated CAIR SIP revision
providing for State-determined allocations. In future NODAs, EPA
intends to determine allowance allocations only for States subject to
the FIP at that time.
Deadlines for States to submit CAIR SIP revisions and associated
NOX allocations and for EPA to record NOX
allocations in source accounts are as finalized in the CAIR (see 70 FR
25162, 25323 and 25326) and CAIR FIP (see 71 FR 25328, 25352-55). EPA
discusses these deadlines herein for informational purposes only. As
finalized in the CAIR and CAIR FIP NFRs, SIP submission deadlines are
as follows:
Full CAIR SIP revision: Submit SIP revision by September
11, 2006 and initial set of NOX allocations (covering at
least 2009 through 2011) by October 31, 2006;
Abbreviated CAIR SIP revision \2\: Submit SIP revision by
March 31, 2007 and initial set of NOX allocations (covering
at least 2009 through 2011) by April 30, 2007.
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\2\ See CAIR FIP NFR (71 FR 25352) for further discussion of
abbreviated CAIR SIP revisions.
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In this action, EPA determines CAIR NOX allocations
covering 2009 through 2014 under the CAIR FIPs. As finalized in the
CAIR FIP NFR, the Agency will record EPA-determined CAIR NOX
allocations in source accounts one year at a time for 2009 and 2010 in
order to provide flexibility to States to determine allocations for
their sources. The final schedule for recording CAIR NOX
allocations under the FIP in source accounts is shown in Table VI-2 in
the CAIR FIP NFR preamble and reproduced here for informational
purposes:
Table I.--Recordation Deadlines for CAIR FIP NOX Allocations
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Deadline by which FIP NOX
allocations are recorded (EPA-
determined allocations or
CAIR control period State-determined allocations
using abbreviated CAIR SIP
revision)
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2009................................... September 30, 2007.*
2010................................... September 30, 2008.
2011................................... September 30, 2009.
2012................................... September 30, 2009.
2013................................... September 30, 2009.
2014................................... December 1, 2010.
2015................................... December 1, 2011.
2016................................... December 1, 2012.
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* EPA intends to records these allowances in the Fall of 2007.
3. How Are the Data in This NODA Related to the CAIR FIP NOX
Allowance Allocations?
In the CAIR FIP NFR, EPA finalized the schedule for determining and
recording NOX allocations. EPA also finalized a methodology
for calculating unit level NOX allowances. This NODA
provides the unit level NOX allocations for existing
potential CAIR units for 2009 through 2014 calculated using this
methodology, as well as the data used in determining the inventory of
existing potential CAIR units and the heat input and fuel type data and
resulting baseline heat inputs, used in making the allowance
calculations.
As provided in the CAIR FIP NOX annual and ozone season
trading rules (see 40 CFR 97.141 and 97.341), EPA is publishing this
NODA with CAIR FIP NOX allocations for existing potential
CAIR units for 2009 through 2014. This final NODA reflects EPA's
consideration of objections submitted to the 2006 CAIR FIP NODA that
addressed whether any individual unit is treated as an existing
potential CAIR unit eligible for allowance allocations in accordance
with the applicability provisions in these trading rules (see 40 CFR
97.104 and 97.305) and whether any unit allocation is determined in
accordance with the allocation provisions in these trading rules (see
40 CFR 97.142 and 97.342).
In the CAIR FIP NFR, EPA finalized an allocation approach for
NOX annual and ozone season allowances for existing units
(i.e., units commencing operation before January 1, 2001) and new units
(i.e., units commencing operation on or after January 1, 2001) that is
consistent with the example methodology in the CAIR SIP model trading
rules. EPA used the NOX allocation method finalized in the
FIP NFR to calculate the existing unit NOX allocations in
this NODA. This action does not address new unit allocations. New unit
allocation and recordation provisions under the CAIR FIP may be found
in Sec. Sec. 97.141, 97.341, 97.153 and 97.353. See 71 FR 25356-58 for
detailed description of the allocation method. EPA will publish a
preliminary and final NODA in 2009 for new unit allowance allocations
for 2009.
The NOX allocation method in the CAIR FIP NFR was
finalized through a process that involved significant public
participation. The NOX CAIR FIP NODA did not open the
allocation method for public comment. EPA provides a summary of the
NOX allocation method herein for informational purposes
only.
Allocations in this NODA are for existing units for the first 6
control periods (2009 through 2014) of the CAIR NOX annual
and NOX ozone season trading programs. The 2009 allowance
allocations will be recorded in the fall of 2007. It is possible that
future year allowance allocations (2010 through 2014) will differ from
those in this NODA as new potential CAIR units develop baseline heat
input values and are treated as existing potential CAIR units, and as
units that are not potential CAIR units become potential CAIR units.
The NOX allocation method finalized in the CAIR FIP NFR
allocates by using annual heat input data from the years 2000 through
2004 to develop baseline heat inputs. The annual heat input values are
adjusted using fuel
[[Page 62242]]
adjustment factors (1.0 for coal-fired units, 0.6 for oil-fired units,
and 0.4 for units fired with all other fuels (e.g., natural gas)). The
3 highest annual heat input values for the unit are averaged to
determine the unit's baseline heat input. Finally, the total amount of
allowances available for allocation each year to existing units in a
given State (i.e., 95% of the State trading budget) is allocated to
each individual unit in proportion to the unit's share of the total
baseline heat input for all existing potential CAIR units in the State.
The same methodology applies for ozone season allowances, only ozone
season heat input is used in place of annual heat input.
This NODA provides unit NOX allocations calculated
according to the method finalized in the CAIR FIP NFR. Section 8 of
this NODA describes where to locate the allocation tables. The heat
input and fuel type data used to determine these allocations are
described in section 4 of this NODA.
4. What Are the Sources of EPA's Data?
A. Development of the Inventory of Existing Potential CAIR Units
Diagram 1 in the Technical Support Document (TSD) provides a
general overview of how the inventory of existing potential CAIR units
was developed. Any existing unit currently reporting monitoring data
under the Acid Rain Program (referred to in this NODA as ``Acid Rain
units'') in a CAIR FIP State, except for an Acid Rain Program opt-in
unit, was included as an existing potential CAIR unit. The list of Acid
Rain units in the States was generated from EPA's Acid Rain Program
database. Units not reporting monitoring data under the Acid Rain
Program (referred to in this NODA as ``non-Acid Rain units'') that are
existing potential CAIR units were identified using data reported by
owners of generators to the Energy Information Administration (EIA) on
forms 860 and 767 or through objections submitted by the source owners
and operators.
From the EIA form 860 database, EPA identified, for non-Acid Rain
units, all generators with a nameplate capacity greater than 25 MWe
served by a boiler or turbine with a fossil fuel energy source. In
determining whether a unit has a fossil fuel energy source, EPA applied
the definition of ``fossil fuel'' in the CAIR FIPs (40 CFR 97.102 and
97.302). From that list we then excluded generators as follows:
EPA excluded non-utility generators which did not sell
electricity to a utility based on EIA form 860b data from 1999 and
2000. EIA form 860b sales data were not available after 2000 due to
changes in the EIA form 860b. Consequently, the exclusion of generators
for purposes of allocating allowances in this NODA does not necessarily
mean that these generators are excluded for purposes of determining
whether boilers or turbines serving them are subject to the CAIR FIPs.
EPA believes, based on preliminary consideration of the applicability
provisions of the CAIR FIPS, that many of these units may not be
subject to the CAIR FIPs. However, if, on or after November 15, 1990,
any of these generators produced electricity that was sold, the units
serving that generator may be subject to the CAIR FIPs.
From EIA form 860, EPA excluded generators at municipal
waste combustors. The CAIR rule provides an exemption for solid waste
incineration units similar to the Acid Rain Program exemption in 40 CFR
Part 72.
From EIA form 860b (1999 and 2000), EPA excluded all
generators at facilities that were certified (in accordance with
Federal Energy Regulatory Commission (FERC) regulations) as qualifying
cogeneration facilities and that had annual, plant-wide sales of one
third or less of the potential generating capacity, or had annual sales
less than 219,000 MW-hrs, to an electric utility. This information was
only available at the plant level. Since electricity sales data were
not available at the unit level for other years and a unit must meet
these criteria annually to qualify for the cogeneration exemption,
exclusion of generators for allocating allowances in this notice does
not necessarily mean that boilers and combustion turbines serving the
generators are not subject to the CAIR FIPs. Moreover, FERC regulations
require, as part of the criteria for qualifying cogeneration facilities
that facilities meet certain efficiency requirements to the extent
natural gas or oil is combusted. Under CAIR, a unit must meet the
efficiency requirements with regard to all fuel types combusted,
except, in the case of boilers, biomass. Consequently, exclusion of
generators for allocating allowances in this notice does not
necessarily mean that boilers and combustion turbines serving the
generators are not subject to the CAIR FIPs.
From the EIA form 767 database, EPA identified as potential CAIR
units all boilers located at non-Acid Rain plants (commencing operation
before January 1, 2001) serving the generators remaining on the
generator list after the above-described exclusions. Simple and
combined cycle combustion turbines were identified based directly on
the generator ID and prime mover type in EIA form 860.
From EIA form 860 EPA identified all simple combustion turbines, at
Acid Rain plants, with a nameplate capacity greater than 25 MWe, a
fossil fuel energy source, and an online date prior to January 1991.
These simple combustion turbines are potential CAIR units even though
they may be non-Acid Rain units since they have reported to EIA that
they sell electricity to a utility based on utility ownership or EIA
form 860b data from 1999 and 2000 and serve a generator greater than 25
MWe.
The resulting list of non-Acid Rain units was also checked against
EPA's National Electric Energy Data System (NEEDS) database. The NEEDS
database contains a list of electric generating units used to construct
the ``model'' plants that represent existing and planned/committed
units in EPA modeling applications of the Integrated Planning Model
(IPM). The NEEDs check resulted in the addition of a number of non-Acid
Rain pre-1991 combined cycle combustion turbines at Acid Rain plants.
EPA also included specific units in the inventory of existing
potential CAIR units based on objections and supporting data submitted
to the EPA by the owners or operators of the units involved.
EPA notes, as discussed above, that inclusion of a unit in, or
exclusion of a unit from, the inventory of existing potential CAIR
units (and thus the allocations for 2009-2014) reflects only a
preliminary application of the applicability provisions of the CAIR
FIPs and does not constitute a determination of whether the unit is
subject to a CAIR FIP. The inventory was developed in order to enable
EPA to calculate allowance allocations for existing units, and the data
that EPA used in developing the inventory are not complete and have
certain limitations. In contrast, the applicability on the CAIR FIPs to
individual units must be determined based on a complete review of all
relevant data, whether or not all such data were provided at the time
the inventory was developed, and final application of the applicability
provisions to that data. In fact, because an inventory developed for
purposes of allowance allocation may not be entirely consistent with
final applicability determinations, Sec. Sec. 97.142(e) and 97.342(e)
establish procedures to be applied when the Administrator determines
that a unit that has been allocated allowances turns out not to
actually be a CAIR unit, i.e., not to
[[Page 62243]]
actually be a unit subject to the requirements of a CAIR FIP. For
example, if this determination is made after the allowance allocation
is recorded but before deductions for compliance with the allowance-
holding requirement are made under Sec. Sec. 97.154(b) and 97.354(b),
the Administrator will deduct the allowances and transfer them to a new
unit set-aside for the appropriate State.
The public, including owners and operators of units that should
have been, but were not included in the inventory of existing potential
CAIR units in the preliminary NODA, was asked to submit objections, in
response to the August 4, 2006 NODA, informing EPA that the units
should be added to the inventory and allocated allowances, consistent
with the applicability criteria in the CAIR FIP (in Sec. Sec. 97.104
and 97.304). The data necessary for allowance allocations were also to
be provided.
Applicability objections received in response to the August 4, 2006
NODA, and EPA's response concerning whether to add the units or remove
the units from the inventory of existing potential CAIR units are
described in the Response to Objections Document and copies of the
applicability determinations are included in the CAIR FIP docket.
A unit that is not allocated allowances because of its exclusion
from the inventory may ultimately be determined to be a CAIR unit. Each
CAIR unit is subject to the allowance-holding requirements of CAIR
regardless of whether the unit is allocated any allowances.
B. Annual and Ozone Season Fuel Heat Input Data for Acid Rain Units
EPA used heat input data reported by units under the Acid Rain
Program for 2000 through 2004 in order to develop annual and ozone
season baseline heat input. Fuel-adjusted heat input was calculated
based on the reported heat input and the primary fuel type (by year)
that was reported to EPA in the unit's Acid Rain Program monitoring
plan. For units that reported coal as their primary fuel for the year,
EPA did not adjust their heat input. For units reporting oil as their
primary fuel, EPA multiplied their heat input by 0.6. If the primary
fuel was not coal or oil, the heat input for the year was multiplied by
0.4.
For some units, the use of the primary fuel type to identify the
appropriate CAIR fuel adjustment factor may not yield the same result
as using the CAIR FIP definition of ``coal-fired'' or ``oil-fired'' to
identify the appropriate factor. Under the CAIR FIP, a coal-fired unit
is a unit which burns any amount of coal in a year, and an oil-fired
unit is a unit which had more than 15% of its yearly heat input from
oil and burned no coal. The use of primary fuel type will not match the
CAIR FIP definition in cases where coal was burned in a year, but was
not listed as the primary fuel, or when more than 15% of a year's heat
input was from oil, but oil was not listed as the primary fuel. EPA
used the primary fuel type, as a surrogate for the data necessary to
apply the terms ``coal-fired'' and ``oil-fired'', because under the
Acid Rain Program, more detailed fuel use data are reported only for
units using non-continuous emission monitoring methods. Because of this
limitation on the data used by EPA, the fuel-adjusted heat input
calculated for some units may be lower than if the calculation were
based on more precise data. Owners and operators were asked to provide,
in response to the August 4, 2006 NODA, any available, more precise
data on fuel use. Fuel type objections and EPA's response are described
in the Response to Objections document. EPA accepted the fuel type
objections to the fuel determinations based on monitoring plan data in
the preliminary NODA.
C. Annual and Ozone Season Fuel Heat Input Data for Non-Acid Rain Units
EIA data, as well as Federal Energy Regulatory Commission (FERC)
form 423 data, were used to calculate annual and ozone season fuel-
adjusted heat input for non-Acid Rain units.\3\
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\3\ In some cases, heat input information was not available for
all or a portion of the baseline period. It was not clear whether
this was the result of a unit not operating or a unit failing to
report its operations. A zero value was applied for heat input in
these cases. This may have resulted in an incorrect baseline heat
input for the unit involved.
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The data sources and calculation methods vary by the type of unit
and data year. The EIA and FERC databases that were used were
downloaded in October 2005 and are available on EIA's Web site at
http://www.eia.doe.gov/cneaf/electricity/page/data.html.
For the August 4, 2006 NODA inventory, we also replaced the
calculated ozone season heat input data with data reported to EPA under
the OTC NOX Budget Program and the NOX SIP Call
NOX Budget Trading Program, if available. For the final
inventory, based on objections received, we also replaced the
calculated annual values with data reported to EPA for a full twelve
months under the OTC NOX Budget Program and the
NOX SIP Call NOX Budget Trading Program.\4\ The
reported heat input was used in conjunction with information regarding
the primary fuel for the year (reported in the monitoring plan) to
calculate the fuel-adjusted heat input.
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\4\ Initially EPA did not use data reported under the
NOX Budget programs for non-Acid Rain units. Some units
only report ozone season quarters, and therefore the heat input for
these reflect less than a full year's operation.
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In addition, EPA also utilized information provided as part of the
CAIR rulemaking process. More specifically, EPA used annual heat input
data submitted in response to EPA's Supplemental CAIR Proposal
published in the Federal Register on June 10, 2004.
Boilers
For 2000, fuel-adjusted annual and ozone season heat input were
calculated for each utility boiler based on EIA form 767 monthly fuel
use and heat content data. The fuel-adjusted 2000 annual heat input was
calculated at the plant level for non-utility boilers based on EIA form
860b data. The fuel usage and heat content information in EIA form 860b
is reported at the plant level, so the fuel-adjusted heat input was
first calculated for the plant and then apportioned equally to each
boiler (at the plant) that is a potential CAIR unit. The ozone season
heat input for non-utility boilers was based on multiplying the annual
heat input by the fraction of the five ozone-season months to 12 annual
months (\5/12\).\5\
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\5\ Plants that were sold in 2000 and changed status from
utility to non-utility sometimes reported using both the utility and
non-utility forms for that year. To avoid double counting of heat
input in these cases, EPA used only the data from utility form or
the data from the non-utility form for the plant, whichever set of
data resulted in the higher heat input for the plant.
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Beginning in 2001, both utility and non-utility boilers reported
using EIA form 767, so fuel-adjusted heat input was calculated for each
boiler based on monthly fuel usage and heat content data from that EIA
form for the 2001 through 2004 period.
Although data for 2000 was developed as described above, EPA
decided not to use the 2000 data in certain cases, i.e., where a plant
included both existing potential CAIR units and existing units that are
not treated as potential CAIR units. Since in those cases the 2000 unit
level heat input could not be determined for existing potential CAIR
units alone without attributing to them heat input that actually may be
for units that are not potential CAIR units and this additional heat
input could be significant, EPA decided, in those cases, to exclude the
2000 heat input data and use the average of the three highest annual
heat input values during 2001
[[Page 62244]]
through 2004 in calculating NOX allowance allocations. In
any case where the use of unit level data (for 2000 or for any other
relevant period) will affect the calculation of the baseline heat input
of a unit, the owners and operators of the unit were given the
opportunity to provide EPA, in response to the preliminary NODA, the
unit level data.
Simple Combustion Turbines and Combined Cycle Units at Non-Acid Rain
Plants
The following procedures were used for simple combustion turbines
and combined cycle units at non-Acid Rain plants, which include certain
utility and non-utility plants.\6\ For 2000, data from the EIA form
860b was used to calculate simple combustion turbine and combined cycle
unit fuel-adjusted heat input for the non-utility plants in a similar
manner as the 2000 non-utility boiler calculation. Annual fuel-adjusted
heat input was calculated at the plant level. Data from the EIA form
759 and FERC form 423 were used to calculate simple combustion turbine
and combined cycle heat input for the utility plants. The EIA form 759
provided monthly fuel usage at the prime mover level (simple combustion
turbine, combined cycle combustion turbine, and combined cycle steam
turbine), and the FERC form 423 provided gaseous and liquid fuel heat
content for the plants. The prime mover fuel-adjusted heat input for
the plant was apportioned equally to each potential CAIR unit at the
plant by prime mover type (with combined cycle combustion turbine and
steam turbine heat inputs combined to provide a single combined cycle
heat input). To the extent the plant includes both potential CAIR units
and units that are not treated as potential CAIR units, this approach
may have resulted in calculated heat input values exceeding the actual
heat input for the potential CAIR units. Unlike the boiler data, that
required apportioning plant level data only for 2000, combustion
turbine EIA data are only available at the plant level for all of the
years. Therefore the approach taken for boilers, i.e., exclusion of a
year of plant level data when that data may be impacted by units not
subject to CAIR, was not available. In any case where the use of unit
level data (for 2000 or for any other relevant period) will affect
calculation of the baseline heat input of a unit, the owners and
operators were given the opportunity to provide to the EPA, in response
to the preliminary NODA in 2006, the unit level data. Ozone-season heat
input was calculated based on the \5/12\ fraction of ozone-season
months to annual months.
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\6\ See note 2.
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In 2001 the EIA form 759 was renamed as form 906, with separate
similar versions for non-utility and utility plant prime mover level
fuel usage. Data for the non-utility and utility plants from these
forms were combined with the FERC form 423 heat content data to
calculate prime mover level fuel-adjusted heat input. This prime mover
level annual and ozone season heat input was then apportioned equally
to each simple combustion turbine or combined cycle turbine (at the
plant) that is a potential CAIR unit by prime mover type as described
earlier for the 2000 utility units.
EIA combined the utility and non-utility reporting forms in 2002
and changed the format. The EIA form 906 for 2002 through 2004 provided
both fuel usage and fuel heat input on a monthly basis. The annual and
ozone season fuel-adjusted heat input was totaled for each of the non-
utility and utility plants at the prime mover level and then
apportioned equally to each potential CAIR unit at the plant, as
described above for the 2000 and 2001 EIA form 759 and 906 data.
Non-Acid Rain Simple Combustion Turbines at Acid Rain Plants
The fuel-adjusted heat inputs for non-Acid Rain simple combustion
turbines located at Acid Rain plants with no Acid Rain combustion
turbines were calculated and apportioned in a similar manner as
described above for simple combustion turbines and combined cycle units
at non-Acid Rain plants.
Heat inputs, however, for non-Acid Rain combustion turbines located
at plants with Acid Rain combustion turbines had to be calculated in a
different manner in order to not double count heat input. At these
plants the plant or prime mover level heat input, calculated with EIA
data as described above, included heat input from both the non-Acid
Rain and Acid Rain turbines. Since the baseline heat input for the Acid
Rain turbines at the plant was taken from data reported to EPA under
the Acid Rain Program, the Acid Rain data was subtracted from the total
EIA-based combustion turbine and combined cycle heat input. The
remaining fuel-adjusted heat input was then apportioned equally to each
of the non-Acid Rain turbines. In some cases the difference between EIA
and Acid Rain heat input was zero or even negative resulting in zero
heat input for the non-Acid Rain units.
Heat input and fuel type objections received in response to the
August 4, 2006 NODA, and EPA's response concerning whether to modify
the baseline heat input, are described in the Response to Objections
Document. EPA accepted objections that provided unit level data for
units for which EPA has relied on plant level EIA data. EPA also
accepted objections for units for which EPA had used unit level EIA
data, if the objector identified that it had notified EIA of data
issues. EPA also accepted heat input objections if the source provided
an objection with new heat input data and an explanation of why the
newly submitted data constituted best available data. Also some
objectors had pointed out an error in EPA's calculation of 2002 through
2004 ozone season boiler heat input that were based on EIA form 767
data. EPA corrected the calculation error and has revised the EIA based
ozone season heat input for those years.
5. How Do I Interpret the Data Tables Presented Through This NODA?
This section provides a brief description of the types of data
included in each table of this NODA. A more detailed description of the
data tables may be found in the TSD titled ``Data Field Description for
the Final CAIR FIP NOX Annual and NOX Ozone-
season Allocation Tables'', which is available in the docket and on the
Web site mentioned in Section 8. The CAIR Annual and Ozone Season
NOX Allocation tables were created primarily using data
reported to EPA (under the Acid Rain Program) and the EIA. For a number
of units, annual and ozone season allocations were based on heat input
and fuel information provided in response to the August 4, 2006 NODA.
In addition, for a small number of non-Acid Rain units, annual
allocations incorporated heat input information provided by the source
owner or operator in response to EPA's June 10, 2004 Supplemental CAIR
Proposal.
Tables 1 and 2 contain the annual and ozone season unit
NOX allowance allocations and the baseline heat input.
Tables 3, 4, 5, and 6 contain the EIA, EPA, and objector data regarding
heat input and primary fuel used to calculate the annual allocations.
Tables 7, 8, and 9 contain additional EIA, EPA, and objector data used
to calculate ozone season allocations.
Some units (i.e., units not reporting under the Acid Rain Program,
OTC NOX Budget Program, or NOX SIP Call
NOX Budget Trading Program during a portion of the baseline
period) use heat input data available from both EIA and EPA to compile
the baseline heat input. For these units the EIA annual heat input data
are used until the first full
[[Page 62245]]
year of Acid Rain Program or NOX Budget Program data are
available. Ozone season heat inputs used for the ozone season
allocation are from the data reported under the Acid Rain Program, OTC
NOX Budget Program, and NOX SIP Call
NOX Budget Trading Program, if available, in Table 8.
Otherwise EIA data in Table 7 or source-provided data in Table 9 were
used.
6. Is the EPA Requesting Objections to These Data?
EPA is not requesting objections to the data in the data tables in
this NODA. This action constitutes a final action for determining the
CAIR FIP NOX allowance allocations for existing units for
2009-2014.
7. What Data Is the EPA Making Available?
EPA has used the best data currently available to develop an
inventory of existing units that currently are potentially covered by
the CAIR FIPs and to calculate each existing unit's allowance
allocations for 2009 through 2014. Through the NODA, EPA is making
available to the public, including unit owners and operators, the data
used in developing the inventory of potential existing CAIR units, the
heat input and fuel type data and resulting baseline heat inputs used
in the allocation calculations, and the allocations resulting from such
calculations.
As discussed above, the inventory of existing potential CAIR units,
and the data on which the inventory is based, are final for purposes of
determining what units should be allocated allowances in this NODA and
are not final for purposes of future NODAs concerning future
allocations and for purposes of determining whether a unit is subject
to the requirements of the CAIR FIPs.\7\ Further, the heat input and
fuel type data and resulting baseline heat inputs used in this NODA are
final for purposes of determining CAIR NOX FIP allowances
for 2009-2014. EPA intends to use, for the units in the inventory in
this NODA, these data (including the baseline heat inputs) in
calculating allocations in future NODA addressing future years. These
data include: EPA heat input and fuel type data under the Acid Rain
Program for the years 2000 through 2004, under the NOX
Budget Program (NBP) for 2000 through 2002 for Ozone Transport
Commission (OTC) units, and under the NOX Budget Trading
Program for 2003 and 2004 for units under the NOX SIP Call;
and heat input and fuel data obtained in EIA databases for units that
are not under these programs. The 2009-2014 allocations in the NODA,
calculated using these data, are also final.
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\7\ See note 1.
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In particular, this action makes available to the public:
NOX annual and NOX ozone season allocations for
individual units in CAIR States for the FIP; the adjusted heat input
values for each unit for 2000 through 2004; the baseline heat inputs
used to calculate the allocations; the other data used to include units
in, or exclude units from, the inventory of existing potential CAIR
units for which allocations are calculated; and objector data received
during the objection period that were used in the final inventory and
allowance determinations for units.
In particular, EPA is making the following data available:
EIA Annual Heat Input: EIA data were used to obtain heat
input and fuel type data for those units that are subject to the CAIR
rule, but are not reporting annually under the Acid Rain Program, OTC
NOX Budget Program, or the NOX SIP Call
NOX Budget Trading Program.
EIA Ozone Season Heat Input.
EPA Acid Rain Program Annual Heat Input.
EPA Acid Rain Program, OTC NOX Budget Program,
and NOX SIP Call NOX Budget Trading Program Ozone
Season Heat Input.
Unit NOX Annual Allowance Allocation Table.
Unit NOX Ozone Season Allocation Table.
Objector data that were used in inventory and the final
allocations.
8. Where Can I Get the Data Discussed in This NODA?
Tables 1 through 9, which include the allowance allocations,
baseline heat input, adjusted heat input, and fuel type data, are
available in an Excel file titled ``Final Data for EGU NOX
Annual and NOX Ozone Season Allocations for the Clean Air
Interstate Rule Federal Implementation Plan Trading Programs (2009
through 2014 allowance allocations) on the CAMD Web site at http://www.epa.gov/airmarkets/cair/NODA.
The ``NODA'' link will open a Web
page which contains this excel file, along with the NODA, Technical
Support Document, Response to Objections Document, and copies of the
applicability determinations made in connection with this NODA in PDF
format. The NODA is titled ``Final Notice of Data Availability for EGU
NOX Annual and NOX Ozone Season Allocations for
the Clean Air Interstate Rule Federal Implementation Plan Trading
Program (2009 through 2014 allowance allocations).'' The TSD is titled
``Data Field Description for the CAIR FIP NOX Annual and
NOX Ozone Season Allocation Tables (2009 through 2014
allowance allocations).'' The Response to Objections document is titled
``Response to the Objections for the Notice of Data Availability
(NODA), Proposed Allocation of NOX Allowances under the
Clean Air Interstate Rule (CAIR) Federal Implementation Plan (FIP).''
In addition, these files are in the CAIR FIP Docket (Docket ID no. EPA-
HQ-OAR-2004-0076).
Other data used in developing the inventory of potential existing
CAIR units can be found on the EIA Web site through the link given in
section 4 of this NODA.
Dated October 25, 2007.
Brian McLean,
Director, Office of Atmospheric Programs.
[FR Doc. E7-21603 Filed 11-1-07; 8:45 am]
BILLING CODE 6560-50-P