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Federal Register / Vol. 86, No. 39 / Tuesday, March 2, 2021 / Rules and Regulations CONTACT section to schedule your inspection. The Regional Offices official hours of business are Monday through Friday 8:30 a.m. to 4:30 p.m., excluding Federal holidays.
FOR FURTHER INFORMATION CONTACT:
Steven Scofield, 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 303038960.
The telephone number is 404 562
9034. Mr. Scofield can also be reached via electronic mail at scofield.steve@
epa.gov.
SUPPLEMENTARY INFORMATION:

I. Background
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Under Clean Air Act CAA or Act section 110a2DiI, which EPA has traditionally termed the good neighbor provision, states are required to address the interstate transport of air pollution.
Specifically, the good neighbor provision requires that each states implementation plan contain adequate provisions to prohibit air pollutant emissions from within the state that will significantly contribute to nonattainment of the national ambient air quality standards NAAQS, or that will interfere with maintenance of the NAAQS, in any other state.
In October 1998 63 FR 57356, EPA
finalized the Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone NOX SIP Call. The NOX SIP
Call required eastern states, including Tennessee, to submit SIPs that prohibit excessive emissions of ozone season NOX by implementing statewide emissions budgets.1 The NOX SIP Call addressed the good neighbor provision for the 1979 ozone NAAQS and was designed to mitigate the impact of transported NOX emissions, one of the precursors of ozone. EPA developed the NOX Budget Trading Program, an allowance trading program that states could adopt to meet their obligations under the NOX SIP Call. This trading program allowed the following sources to participate in a regional cap and trade program: Generally electric generating units EGUs with capacity greater than 25 megawatts MW; and large industrial non-EGUs, such as boilers and 1 See 63 FR 57356 October 27, 1998. As originally promulgated, the NOX SIP Call also addressed good neighbor obligations under the 1997
8-hour ozone NAAQS, but EPA subsequently stayed and later rescinded the rules provisions with respect to that standard. See 65 FR 56245
September 18, 2000; 84 FR 8422 March 8, 2019.

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combustion turbines, with a rated heat input greater than 250 million British thermal units per hour. The NOX SIP
Call also identified potential reductions from cement kilns and stationary internal combustion engines.
On January 22, 2004, EPA approved into the Tennessee SIP the States NOX
Budget Trading Program rule.2 The NOX
Budget Trading Program was implemented from 2003 to 2008. The provisions required EGUs and large non-EGUs in the state to participate in the NOX Budget Trading Program.
In 2005, EPA published the Clean Air Interstate Rule CAIR, which required eastern states, including Tennessee, to submit SIPs that prohibited emissions consistent with ozone season and annual NOX budgets. See 70 FR 25162
May 12, 2005. CAIR addressed the good neighbor provision for the 1997
ozone NAAQS and 1997 fine particulate matter PM2.5 NAAQS and was designed to mitigate the impact of transported NOX emissions with respect to not only ozone but also PM2.5. CAIR
established several trading programs that EPA implemented through federal implementation plans FIPs for EGUs greater than 25 MW in each affected state, but not large non-EGUs; states could submit SIPs to replace the FIPs that achieved the required emission reductions from EGUs and, at their discretion, could include other types of sources as well.3 When the CAIR trading program for ozone season NOX was implemented beginning in 2009, EPA
discontinued administration of the NOX
Budget Trading Program; however, the requirements of the NOX SIP Call continued to apply.
On August 20, 2007, EPA approved into the Tennessee SIP an abbreviated CAIR SIP revision with allowance allocations and opt-in provisions.4 On November 25, 2009, EPA approved into the Tennessee SIP a further abbreviated CAIR SIP revision expanding applicability of the CAIR ozone season NOX trading program to NOX SIP Call non-EGUs.5
In 2011, EPA published the CrossState Air Pollution Rule CSAPR to replace CAIR and address the good neighbor provisions for the 1997 ozone NAAQS, the 1997 PM2.5 NAAQS, and the 2006 PM2.5 NAAQS. See 76 FR
48208 August 8, 2011. Through FIPs, CSAPR required EGUs in eastern states, including Tennessee, to meet annual 2 See
69 FR 3015 January 22, 2004.
had separate trading programs for annual sulfur dioxide emissions, seasonal NOX emissions and annual NOX emissions.
4 See 72 FR 46388.
5 See 74 FR 61535.
3 CAIR

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and ozone season NOX emission budgets and annual SO2 emission budgets implemented through new trading programs. Implementation of CSAPR
began on January 1, 2015.6 CSAPR also contained provisions that would sunset CAIR-related obligations on a schedule coordinated with the implementation of the CSAPR compliance requirements.
In 2016, EPA published the CSAPR
Update to address the good neighbor provision for the 2008 ozone NAAQS.
See 81 FR 74504 October 26, 2016.
Although for most covered states, EPA
found the CSAPR Update may only partially address the states good neighbor obligations for this NAAQS, EPA found the rule fully addresses Tennessees good neighbor obligation for this NAAQS.7 The CSAPR Update trading program replaced the original CSAPR trading program for ozone season NOX for most covered states.
Tennessees EGUs participate in the CSAPR Update trading program, generally also addressing the states obligations under the NOX SIP Call for EGUs. However, Tennessee has not chosen to expand applicability of the CSAPR Update trading program to its large non-EGUs.
Through a letter to EPA dated February 27, 2017,8 Tennessee provided a SIP revision to incorporate a new provisionTACPR 12000327.12, NOX SIP Call Requirements for Stationary Boilers and Combustion Turbines TN 2017 NOX SIP Call Ruleinto the SIP. The TN 2017 NOX
SIP Call Rule established a state control program for sources that are subject to the NOX SIP Call, but not covered under CSAPR or the CSAPR Update. The TN
2017 NOX SIP Call Rule contains several subsections that together comprise a non-EGU control program under which Tennessee will allocate a specified budget of allowances to affected sources. Subsequently, on May 11, 2018, and October 11, 2018, Tennessee submitted letters requesting conditional approval of the TN 2017 NOX SIP Call Rule and committing to provide a SIP
revision to EPA by December 31, 2019, to address a deficiency by revising the definition of affected unit to remove the unqualified exclusion for any unit that serves a generator that produces power for sale. Based on the States commitment to submit a SIP revision 6 See 79 FR 71663 December 3, 2014 and 81 FR
13275 March 14, 2016.
7 See 81 FR at 74540. EPA notes that the aspects of the CSAPR Update affecting Tennessee were not challenged in the litigation over the rule and are not affected by the remand of the rule in Wisconsin v.
EPA, 983 F.3d 303 D.C. Cir. 2019.
8 EPA notes that it received the submittal on February 28, 2017.

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