1
IX.
Interactions
with
Other
Clean
Air
Act
Requirements
A.
How
Does
this
Rule
Interact
with
the
NOx
SIP
Call?

A
majority
of
States
affected
by
the
CAIR
are
also
affected
by
the
NOx
SIP
Call.
This
section
addresses
the
interactions
between
the
two
programs.

The
EPA
proposed
that
States
achieving
all
of
the
annual
NOx
reductions
required
by
the
CAIR
from
only
EGUs
would
not
need
to
continue
to
impose
seasonal
NOx
limitations
on
EGUs
from
which
they
required
reductions
for
purposes
of
complying
with
the
NOx
SIP
Call.
Also,
EPA
proposed
that
States
would
have
the
option
of
retaining
such
seasonal
NOx
limitations.
The
EPA
also
proposed
to
keep
the
NOx
SIP
Call
in
place
for
non­
EGUs
currently
subject
to
the
NOx
SIP
Call
and
to
continue
working
with
States
to
run
the
NOx
SIP
Call
Budget
Trading
Program
for
all
sources
that
would
remain
in
the
program.
In
response
to
commenters,
EPA
is
making
several
modifications
to
its
proposed
approach.

States
Affected
by
the
CAIR
for
Ozone
and
PM2.5
Will
Be
Subject
to
a
Seasonal
and
an
Annual
NOx
Limitation
A
number
of
commenters
recommended
leaving
the
current
NOx
SIP
Call
ozone
season
NOx
limitation
in
place
as
a
way
to
ensure
that
ozone
season
NOx
reductions
from
EGUs
required
by
the
NOx
SIP
Call
would
continue
to
be
achieved.
Some
commenters
argued
2
this
would
also
help
non­
EGUs
currently
subject
to
the
NOx
SIP
Call
by
allowing
them
to
continue
trading
with
EGUs
in
a
seasonal
NOx
program.
Many
of
the
same
commenters
suggested
a
dual­
season
or
bifurcated
CAIR
trading
program
as
a
mechanism
for
maintaining
an
ozone
season
NOx
limitation
for
EGUs
under
the
CAIR.
In
response
to
these
commenters,
EPA
is
requiring
that
States
subject
to
the
CAIR
for
PM2.5
be
subject
to
an
annual
limitation
and
that
States
subject
to
the
CAIR
for
ozone
be
subject
to
an
ozone
season
limitation.
This
means
that
States
subject
to
the
CAIR
for
both
PM2.5
and
ozone
are
subject
to
both
an
annual
and
an
ozone
season
NOx
limitation.
The
annual
and
ozone
season
NOx
limitations
are
described
in
section
IV.
States
subject
to
the
CAIR
for
ozone
only
are
only
subject
to
an
ozone
season
NOx
limitation.
To
implement
these
NOx
limitations,
EPA
will
establish
and
operate
two
NOx
trading
programs,
i.
e.,
a
CAIR
annual
NOx
trading
program
and
a
CAIR
ozone
season
NOx
trading
program.
The
CAIR
ozone
season
NOx
trading
program
will
replace
the
current
NOx
SIP
Call
as
discussed
in
more
detail
later
in
this
section.

What
Will
Happen
to
Non­
EGUs
Currently
in
the
NOx
SIP
Call?

A
number
of
commenters
were
concerned
that
the
cost
of
compliance
for
non­
EGUs
in
the
NOx
SIP
Call
would
increase
if
they
were
not
allowed
to
continue
to
trade
with
EGUs.
In
3
response
to
these
commenters,
EPA
is
modifying
its
proposed
approach.
The
EPA
is
allowing
States
affected
by
the
NOx
SIP
Call
that
wish
to
use
EPA's
model
trading
rule
to
include
non­

EGUs
currently
covered
by
the
NOx
SIP
Call
in
the
CAIR
ozone
season
NOx
trading
program.
This
will
ensure
that
non­
EGUs
in
the
NOx
SIP
Call
will
continue
to
be
able
to
trade
with
EGUs
as
they
currently
do
under
the
NOx
SIP
Call.
This
will
not
require
States
to
get
additional
reductions
from
non­
EGUs.
Budgets
for
these
units
would
remain
the
same
as
they
are
currently
under
the
NOx
SIP
Call.
States
will,
however,
be
required
to
modify
their
existing
NOx
SIP
Call
regulations
to
reflect
the
replacement
of
the
NOx
SIP
Call
with
the
CAIR
ozone
season
NOx
trading
program.

The
EPA
will
continue
to
operate
the
NOx
SIP
Call
trading
program
until
implementation
of
the
CAIR
begins
in
2009.
The
EPA
will
no
longer
operate
the
NOx
SIP
Call
trading
program
after
the
2008
ozone
season
and
the
CAIR
ozone
season
NOx
trading
program
will
replace
the
NOx
SIP
Call
trading
program.
If
States
affected
by
the
NOx
SIP
Call
do
not
wish
to
use
EPA's
CAIR
ozone
season
NOx
trading
program
to
achieve
reductions
from
non­
EGU
boilers
and
turbines
required
by
the
NOx
SIP
Call,
they
would
be
required
to
submit
a
SIP
Revision
deleting
the
requirements
related
to
non­

EGU
participation
in
the
NOx
SIP
Call
Budget
Trading
Program
and
replacing
them
with
new
requirements
that
achieve
the
same
level
of
reduction.
4
Compliance
with
the
NOx
SIP
Call
for
States
that
Are
Subject
to
Both
the
CAIR
Ozone
Season
NOx
Reduction
Requirements
and
the
NOx
SIP
Call
If
the
only
changes
a
State
makes
with
respect
to
its
NOx
SIP
Call
regulations
are:
1)
to
bring
non­
EGUs
that
are
currently
participating
in
the
NOx
SIP
Call
Budget
Trading
Program
into
the
CAIR
ozone
season
program
using
the
same
non­
EGU
budget
and
applicability
requirements
that
are
in
their
existing
NOx
SIP
Call
Budget
Trading
Program;
and
2)
to
achieve
all
of
the
emissions
reductions
required
under
the
CAIR
from
EGUs
by
participating
in
the
CAIR
ozone
season
NOx
trading
program,
EPA
will
find
that
the
State
continues
to
meet
the
requirements
of
the
NOx
SIP
Call.

If
the
only
changes
a
State
makes
with
respect
to
its
NOx
SIP
Call
regulations
are
not
those
described
above,
see
section
VII
for
a
discussion
of
how
the
State
would
satisfy
its
NOx
SIP
Call
obligations.

States
in
the
NOx
SIP
Call
but
not
Affected
by
the
CAIR
(
Rhode
Island)

Rhode
Island
is
the
only
State
in
the
NOx
SIP
Call
that
is
5
not
affected
by
the
CAIR.
To
continue
meeting
its
NOx
SIP
Call
obligations
in
2009
and
beyond,
Rhode
Island
will
have
two
choices.
It
may
either
modify
its
NOx
SIP
Call
trading
rule
to
conform
to
the
new
CAIR
ozone
season
NOx
trading
rule
if
it
wishes
to
allow
its
sources
to
continue
to
participate
in
an
interstate
NOx
trading
program
run
by
EPA
or,
it
will
need
to
develop
an
alternative
method
for
obtaining
the
required
NOx
SIP
Call
reductions.
In
either
case,
Rhode
Island
must
continue
to
meet
the
budget
requirements
of
the
existing
NOx
SIP
Call.

Use
of
Banked
SIP
Call
Allowances
in
the
CAIR
Program
As
explained
earlier
in
today's
final
rule,
banked
allowances
from
the
NOx
SIP
Call
may
be
used
in
the
CAIR
ozone
season
NOx
trading
program.

Other
Comments
and
EPA's
Responses
One
commenter
wrote
that
because
attainment
demonstrations
for
early
action
compacts
were
made
based
on
having
EGUs
and
non­

EGUs
together
in
the
NOx
SIP
Call,
EPA
could
not
allow
EGUs
to
leave
the
NOx
SIP
Call
and
still
have
valid
early
action
compacts
(
EACs).
As
discussed
above,
EPA
is
allowing
States
to
keep
EGUs
and
non­
EGUs
in
the
NOx
SIP
Call
together
in
one
ozone
season
program
(
CAIR
ozone
season
trading
program).
The
NOx
reductions
6
required
by
the
CAIR
ozone
season
trading
program
are
slightly
more
stringent
than
the
reductions
required
by
the
NOx
SIP
Call.

As
a
result,
the
attainment
demonstrations
for
EACs
would
remain
valid
under
the
CAIR.
Having
said
that,
the
EAC
program
will
have
ended
(
April
2008)
before
the
CAIR
rule
is
implemented.

Thus,
the
compacts
will
no
longer
be
applicable
when
the
CAIR
takes
effect.

Another
commenter
proposed
to
have
non­
EGUs
under
the
NOx
SIP
Call
subject
to
an
annual
NOx
cap
similar
to
EGUs
under
the
CAIR
so
that
non­
EGUs
could
continue
to
trade
with
EGUs.
By
adopting
a
CAIR
ozone
season
trading
program
that
includes
non­

EGUs
covered
by
the
NOx
SIP
Call,
non­
EGUs
will
be
able
to
continue
to
trade
with
EGUs.
