6560-50

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2004-0076; FRL     ]

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)

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 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   HYPERLINK "http://www.regulations.gov"  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 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, email 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:

General Information.

What Is this Action? 

How Are the Data in this NODA Related to the CAIR FIP NOx Allowance
Allocations?

What Are the Sources of the EPA’s Data?

How do I Interpret the Data Tables Presented through this NODA?

Is the EPA Requesting Objections to these Data?

What Data Is EPA making available?

Where can I get the Data Discussed in this NODA?

General Information

This action relates to ((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:

Category	

NAICS code	Examples of potentially regulated entities

Industry	221112	Fossil fuel-fired electric utility steam generating
units

Federal Government	221122	Fossil fuel-fired electric utility steam
generating units

State/local/Tribal government	221122

921150	Fossil fuel-fired electric utility steam generating units owned
by municipalities.

Fossil fuel-fired electric utility steam generating units in Indian
Country.



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 §§97.102, 97.104, and 97.105 in the CAIR
FIP concerning NOX annual emissions and §§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 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%, 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.  

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 §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 §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 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:  submit SIP revision by March 31, 2007
and initial set of NOx allocations (covering at least 2009 through 2011)
by April 30, 2007.

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 

CAIR Control Period	Deadline by which FIP NOx Allocations Are Recorded

(EPA-determined allocations or State-determined allocations using
abbreviated CAIR SIP revision)

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

* EPA intends to records these allowances in the Fall of 2007.

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 §§ 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 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.

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
genera潴⁲慭⁹敢猠扵敪瑣琠⁯桴⁥䅃剉䘠偉⹳†

●	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, §§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 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 §§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 §§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.  

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 website at   HYPERLINK
"http://www.eia.doe.gov/cneaf/electricity/page/data.html" 
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.   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.  

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).

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 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.  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.

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 website 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 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.

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.  

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.  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.

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.

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 website at http://www.epa.gov/airmarkets/cair/NODA. The “NODA”
link will open a webpage 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 website through the link given in section
4 of this NODA.

 

_______________

Dated

________________

Brian McLean

Director

Office of Atmospheric Programs

  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 §§97.154(b) and 97.354(b),
and transfer them to a new unit set-aside for the appropriate State.

   See CAIR FIP NFR (71 FR 25352) for further discussion of abbreviated
CAIR SIP revisions.

  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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㜀$␸䠀$Ā ᨀ therefore the heat input for these reflect less than a
full year's operation.  

  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.

  See note 2.

 See note 1.

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