Air Plan Approval; SC; Updates to the Cross-State Air Pollution Rule

ENVIRONMENTAL PROTECTION AGENCY <CFR>40 CFR Part 52</CFR> <DEPDOC>[EPA-R04-OAR-2024-0006; FRL-12050-01-R4]</DEPDOC> <SUBJECT>Air Plan Approval; SC; Updates to the Cross-State Air Pollution Rule</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Environmental Protection Agency (EPA). <HD SOURCE="HED">ACTION:</HD> Proposed rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Environmental Protection Agency (EPA) is proposing to approve a State Implementation Plan (SIP) revision submitted through the South Carolina Department of Health and Environmental Control (SC DHEC) on September 26, 2023, regarding updates to the State's Cross-State Air Pollution Rule (CSAPR) emissions trading programs. The SIP revision incorporates by reference (IBRs) certain amendments EPA has made to the regulations for the Federal CSAPR trading programs for annual emissions of nitrogen oxides (NO <E T="52">X</E> ) and sulfur dioxide (SO <E T="52">2</E> ) for large electric generating units (EGUs). EPA created these Federal trading programs in 2011 as market-based mechanisms for South Carolina and certain other States to address their obligations to downwind States under the Clean Air Act (CAA or Act)'s good neighbor provision with respect to the national ambient air quality standards (NAAQS) for fine particulate matter (PM <E T="52">2.5</E> ). EPA is proposing to approve South Carolina's September 26, 2023, SIP revision because it is consistent with EPA's good neighbor CSAPR trading programs and the CAA. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments must be received on or before January 9, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> Submit your comments, identified by Docket ID No. EPA-R04-OAR-2024-0006 at <E T="03">www.regulations.gov.</E> Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from <E T="03">Regulations.gov</E> . EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission ( <E T="03">i.e.,</E> on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit <E T="03">https://www.epa.gov/dockets/commenting-epa-dockets.</E> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Josue Ortiz Borrero, Air Regulatory Management Section, Air Planning and Implementation Branch, Air and Radiation Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW, Atlanta, Georgia 30303-8960. Mr. Ortiz can be reached via phone number (404) 562-8085 or via electronic mail at <E T="03">ortizborrero.josue@epa.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">I. Overview</HD> EPA is proposing to approve the portions of SC DHEC's  <SU>1</SU> <FTREF/> September 26, 2023, SIP submission that updates South Carolina's State trading programs at Regulation 61-62.97, Cross-State Air Pollution Rule (CSAPR) Trading Program, Subpart A—South Carolina CSAPR NO <E T="52">X</E> Annual Trading Program, and Subpart B—South Carolina CSAPR SO <E T="52">2</E> Group 2 Trading Program. Large EGUs in South Carolina are subject to these two State CSAPR trading programs for annual NO <E T="52">X</E> and SO <E T="52">2</E> emissions, which are precursors to PM <E T="52">2.5</E> , to address the State's good neighbor obligation for the 1997 annual PM <E T="52">2.5</E> NAAQS. The State CSAPR trading programs are integrated with the Federal CSAPR NO <E T="52">X</E> Annual Trading Program and the Federal CSAPR SO <E T="52">2</E> Group 2 Trading Program established by EPA's regulations at 40 CFR part 97, subparts AAAAA and DDDDD, respectively. As adopted by the State before this SIP revision and as previously approved by EPA into the SIP, the State's CSAPR trading program regulations generally IBR the Federal CSAPR trading program regulations as the Federal regulations had been amended through October 26, 2016. The September 26, 2023, SIP submission would update the IBR language to reflect amendments EPA made to the Federal CSAPR trading program regulations in the 2021 Revised CSAPR Update  <SU>2</SU> <FTREF/> and the 2022 Recordation Rule. <SU>3</SU> <FTREF/> The SIP revision would also correct two cross-references in the State's rule. Section II, below, briefly summarizes the framework of the CSAPR trading programs and how those programs are implemented in South Carolina. <FTNT> <SU>1</SU>  On July 1, 2024, SC DHEC was restructured into a health agency, the Department of Public Health, and an environmental agency, the Department of Environmental Services (DES). In a letter dated June 20, 2024, South Carolina represented to EPA that all the functions, powers, and duties of the environmental divisions, offices, and programs of DHEC, including the authority to administer and enforce State Implementation Plans, are retained and continued in full force and effect under DES. The letter is in the docket for this proposed rulemaking. The State agency will simply be referred to as the State or South Carolina for the remainder of this document. </FTNT> <FTNT> <SU>2</SU>  Revised Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS, 86 FR 23054 (Apr. 30, 2021). </FTNT> <FTNT> <SU>3</SU>  Deadlines for Submission and Recordation of Allowance Allocations Under the Cross-State Air Pollution Rule (CSAPR) Trading Programs and the Texas SO <E T="52">2</E> Trading Program, 87 FR 52473 (Aug. 26, 2022). </FTNT> EPA is proposing to approve South Carolina's September 26, 2023, SIP revision because it is consistent with EPA's good neighbor CSAPR trading programs and the CAA. <SU>4</SU> <FTREF/> Please refer to the <E T="04">Federal Register</E> citations referenced herein, for additional detailed background on the CSAPR and subsequent rulemakings. <FTNT> <SU>4</SU>  EPA is not taking action on changes reflected in this submittal to South Carolina Regulation 61-62.60, subpart XXX, subpart IIII, subpart JJJJ, and South Carolina Regulation 61-62.63, subpart C, subpart AAAA, subpart YYYY, subpart ZZZZ, subpart DDDDD, subpart GGGGG, subpart IIIII, and subpart HHHHHH, since these rules are not part of the SIP. </FTNT> <HD SOURCE="HD1">II. Background on CSAPR and CSAPR-Related Rulemakings</HD> EPA published the original CSAPR in August 2011 to address the requirements of CAA section 110(a)(2)(D)(i)(I), known as the “good neighbor” provision, concerning interstate transport of air pollution. <SU>5</SU> <FTREF/> <E T="03">See</E> 42 U.S.C. 7410(a)(2)(D)(i)(I). Acting to address the same statutory provision, EPA published the CSAPR Update  <SU>6</SU> <FTREF/> in October 2016 and the Revised CSAPR Update in April 2021. The three rules collectively require 27 southern, midwestern, and eastern States to limit their statewide emissions of SO <E T="52">2</E> and/or NO <E T="52">X</E> in order to mitigate transported air pollution unlawfully impacting other States' ability to attain or maintain one or more of the following four NAAQS: the 1997 annual PM <E T="52">2.5</E> NAAQS, the 2006 24-hour PM <E T="52">2.5</E> NAAQS, the 1997 8-hour ozone NAAQS, and the 2008 8-hour ozone NAAQS. To implement the required emissions reductions, the rules include Federal implementation plans (FIPs) that require EGUs in each covered State to participate in one or more of six Federal emissions trading programs established under regulations set forth at 40 CFR part 97, subparts AAAAA through EEEEE and GGGGG. <SU>7</SU> <FTREF/> <FTNT> <SU>5</SU>  Federal Implementation Plans: Interstate Transport of Fine Particulate Matter and Ozone and Correction of SIP Approvals, 76 FR 48208 (Aug. 8, 2011). </FTNT> <FTNT> <SU>6</SU>  Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS, 81 FR 74504 (Oct. 26, 2016). </FTNT> <FTNT> <SU>7</SU>  The trading programs established under CSAPR, the CSAPR Update, and the Revised CSAPR Update include a program for annual NO <E T="52">X</E> emissions; two geographically separate programs for annual SO <E T="52">2</E> emissions; and three geographically separate programs for ozone-season NO <E T="52">X</E> emissions. While some of the requirements set forth in these three rules have been amended in subsequent rules, the subsequent amendments are not relevant to the South Carolina SIP revision addressed in this action. </FTNT> As part of the original CSAPR in 2011, EPA determined that emissions from South Carolina significantly contributed to nonattainment or interference with maintenance of the 1997 ozone NAAQS and the 1997 24-hour PM <E T="52">2.5</E> NAAQS in other States. <SU>8</SU> <FTREF/> To address South Carolina's good neighbor obligations with respect to the 1997 ozone NAAQS, the State's large EGUs became subject to the Federal CSAPR NO <E T="52">X</E> Ozone Season Trading Program established in subpart BBBBB of 40 CFR part 97, and to address the State's good neighbor obligations with respect to the 1997 PM <E T="52">2.5</E> NAAQS, the State's large EGUs because subject to the Federal CSAPR NO <E T="52">X</E> Annual Trading Program established in subpart AAAAA of 40 CFR part 97 and the Federal CSAPR SO <E T="52">2</E> Group 2 Trading Program established in subpart DDDDD of 40 CFR part 97. <SU>9</SU ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 29k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━