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58546 Federal Register / Vol. 72, No.

199 / Tuesday, October 16, 2007 / Rules and Regulations

This rule also does not have tribal 40 CFR Part 97 1. * * *


implications because it would not have Wisconsin
Environmental protection, Air
a substantial direct effect on one or pollution control, Electric utilities, * * * * *
more Indian tribes, on the relationship Intergovernmental relations, Nitrogen ■ 5. Appendix A to Subpart EEEE is
between the Federal Government and oxides, Ozone, Particulate matter, amended by adding the entry for
Indian tribes, or on the distribution of Reporting and recordkeeping ‘‘Wisconsin’’ in alphabetical order to
power and responsibilities between the requirements, Sulfur dioxide. read as follows:
Federal Government and Indian tribes,
Dated: September 21, 2007.
as specified by Executive Order 13175 Appendix A to Subpart EEEE of Part
Bharat Mathur, 97—States With Approved State
(65 FR 67249, November 9, 2000). This
action also does not have Federalism Acting Regional Administrator, Region 5. Implementation Plan Revisions
implications because it would not have ■ 40 CFR part 52 is amended as follows: Concerning Allocations
substantial direct effects on the States, * * * * *
on the relationship between the national PART 52—[AMENDED]
Wisconsin
government and the States, or on the ■ 1. The authority citation for part 52 * * * * *
distribution of power and continues to read as follows: [FR Doc. E7–20165 Filed 10–15–07; 8:45 am]
responsibilities among the various Authority: 42 U.S.C. 7401 et seq. BILLING CODE 6560–50–P
levels of government, as specified in
Executive Order 13132 (64 FR 43255, Subpart YY—Wisconsin
August 10, 1999). This action merely ENVIRONMENTAL PROTECTION
approves a State rule implementing a ■ 2. Section 52.2570 is amended by AGENCY
Federal standard and amends the adding paragraph (c)(116) to read as
appropriate appendices in the CAIR FIP follows: 40 CFR Parts 52 and 97
trading rules to note that approval. It § 52.2570 Identification of plan. [EPA–R05–OAR–2007–0390; FRL–8481–2]
does not alter the relationship or the
distribution of power and * * * * *
(c) * * * Approval of Implementation Plans;
responsibilities established in the Clean (116) A revision to the State Ohio; Clean Air Interstate Rule
Air Act. This rule also is not subject to Implementation Plan (SIP) was
Executive Order 13045 ‘‘Protection of AGENCY: Environmental Protection
submitted by the Wisconsin Department Agency (EPA).
Children from Environmental Health of Natural Resources on June 19, 2007.
Risks and Safety Risks’’ (62 FR 19885, ACTION: Direct final rule.
This revision consists of regulations to
April 23, 1997), because it would meet the requirements of the Clean Air SUMMARY: EPA is approving a revision to
approve a State rule implementing a Interstate Rule. the Ohio State Implementation Plan
Federal Standard. (i) Incorporation by reference. The (SIP) submitted on September 26, 2007.
In reviewing SIP submissions, EPA’s following sections of the Wisconsin Ohio initially submitted a SIP revision
role is to approve state choices, Administrative Code are incorporated on April 17, 2007, with a proposed rule
provided that they meet the criteria of by reference: NR 432.01 ‘‘Applicability; and then revised it and submitted a SIP
the Clean Air Act. In this context, in the purpose’’; NR 432.02 ‘‘Definitions’’; NR revision with a final rule on September
absence of a prior existing requirement 432.03 ‘‘CAIR NOX allowance 26, 2007. This SIP revision incorporates
for the state to use voluntary consensus allocation’’; NR 432.05 ‘‘CAIR NOX provisions related to the
standards (VCS), EPA has no authority ozone season allowance allocation’’; NR implementation of EPA’s Clean Air
to disapprove a SIP submission for 432.06 ‘‘Timing requirements for Interstate Rule (CAIR), promulgated on
failure to use VCS. It would thus be allocations of CAIR NOX allowances and May 12, 2005, and subsequently revised
inconsistent with applicable law for CAIR NOX ozone season allowances’’; on April 28, 2006, and December 13,
EPA, when it reviews a SIP submission, and NR 432.07 ‘‘CAIR renewable units’’, 2006, and the CAIR Federal
to use VCS in place of a SIP submission as created and published in the Implementation Plan (CAIR FIP)
that otherwise satisfies the provisions of (Wisconsin) Register, July, 2007, No. concerning sulfur dioxide (SO2), oxides
the Clean Air Act. Thus, the 619, effective August 1, 2007. of nitrogen (NOX) annual, and NOX
requirements of section 12(d) of the * * * * * ozone season emissions for the State of
National Technology Transfer and ■ 40 CFR part 97 is amended as follows: Ohio, promulgated on April 28, 2006
Advancement Act of 1995 (15 U.S.C. and subsequently revised December 13,
272 note) do not apply. This rule would PART 97—[AMENDED] 2006. EPA is not making any changes to
not impose an information collection ■ 3. The authority citation for part 97 the CAIR FIP, but is amending to the
burden under the provisions of the continues to read as follows: extent EPA approves Ohio’s SIP
Paperwork Reduction Act of 1995 (44 revision, the appropriate appendices in
U.S.C. 3501 et seq.). Authority: 42 U.S.C. 7401, 7403, 7410, the CAIR FIP trading rules simply to
7426, 7601, and 7651, et seq.
note that approval.
List of Subjects The Ohio SIP revision that was
■ 4. Appendix A to Subpart EE is
40 CFR Part 52 amended by adding the entry for submitted on April 17, 2007, was a full
Wisconsin in alphabetical order under CAIR SIP revision. In a letter submitted
Environmental protection, Air paragraph 1. to read as follows: on September 26, 2007, Ohio requested
pollution control, Electric utilities, that EPA consider the September 26,
Appendix A to Subpart EE of Part 97—
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Incorporation by reference, 2007, submittal as two separate


Intergovernmental relations, Nitrogen States With Approved State submittals, i.e., as a full CAIR SIP and
oxides, Ozone, Particulate matter, Implementation Plan Revisions as an abbreviated CAIR SIP. Ohio
Reporting and recordkeeping Concerning Allocations requested that EPA act on specific
requirements, Sulfur dioxide. * * * * * portions of the September 26, 2007,

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submittal as an abbreviated CAIR SIP. If you send an e-mail comment directly A. State Budgets for Allowance Allocations
Consequently, today, EPA is taking final to EPA without going through B. CAIR Cap-and-Trade Programs
action only on the abbreviated SIP www.regulations.gov, your e-mail C. Applicability Provisions for Non-EGUs
NOX SIP Call Sources
revision and not the full CAIR SIP address will be automatically captured
D. NOX Allowance Allocations
revision, which will be the subject of a and included as part of the comment E. Allocation of NOX Allowances From the
separate future action. EPA is approving that is placed in the public docket and Compliance Supplement Pool (CSP)
Ohio’s abbreviated SIP revision that made available on the Internet. If you F. Individual Opt-in Units
addresses the methodology used to submit an electronic comment, EPA VI. Final Action
allocate annual and ozone season NOX recommends that you include your VII. Statutory and Executive Order Reviews
allowances to affected electric name and other contact information in
I. What Action Is EPA Taking?
generating units (EGUs), and the opt-in the body of your comment and with any
provisions, under the CAIR trading disk or CD–ROM you submit. If EPA CAIR SIP Approval
programs and the CAIR FIP. cannot read your comment due to EPA is approving a revision to Ohio’s
DATES: This direct final rule is effective technical difficulties and cannot contact SIP, submitted on September 26, 2007,
December 17, 2007 without further you for clarification, EPA may not be that modifies the application of certain
notice, unless EPA receives adverse able to consider your comment. provisions of the CAIR FIP concerning
comment by November 15, 2007. If EPA Electronic files should avoid the use of SO2, NOX annual, and NOX ozone
receives such comments, it will publish special characters and any form of season emissions. (As discussed below,
a timely withdrawal of the direct final encryption and should be free of any this less comprehensive CAIR SIP is
rule in the Federal Register and inform defects or viruses. For additional termed an abbreviated SIP.) Ohio is
the public that the rule will not take information about EPA’s public docket subject to the CAIR FIPs that implement
effect. visit the EPA Docket Center homepage the CAIR requirements by requiring
at http://www.epa.gov/epahome/ certain EGUs to participate in the EPA-
ADDRESSES: Submit your comments,
dockets.htm. administered Federal CAIR SO2, NOX
identified by Docket ID No. EPA–R05– Docket: All documents in the
OAR–2007–0390, by one of the annual, and NOX ozone season cap-and-
electronic docket are listed in the trade programs. The SIP revision
following methods: www.regulations.gov index. Although
1. http://www.regulations.gov: Follow provides a methodology for allocating
listed in the index, some information is NOX allowances for the NOX annual and
the on-line instructions for submitting
not publicly available, i.e., CBI or other NOX ozone season trading programs.
comments.
information whose disclosure is The CAIR FIPs provide that this
2. E-mail: mooney.john@epa.gov.
3. Fax: (312) 886–5824. restricted by statute. Certain other methodology will be used to allocate
4. Mail: Reference EPA–R05–OAR– material, such as copyrighted material, NOX allowances to sources in Ohio,
2007–0390 Docket, Air Programs is not placed on the Internet and will be instead of the federal allocation
Branch, U.S. Environmental Protection publicly available only in hard copy methodology otherwise provided in the
Agency, (AR–18J), 77 West Jackson form. Publicly available docket FIPs. The SIP revision provides a
Boulevard, Chicago, Illinois 60604. materials are available either methodology for allocating the
5. Hand Delivery or Courier: John electronically in www.regulations.gov or compliance supplement pool in the
Mooney, Chief, Criteria Pollutant in hard copy at the Environmental CAIR NOX annual trading program. The
Section, Air Programs Branch, U.S. Protection Agency, Region 5, Air and SIP also allows for individual units not
Environmental Protection Agency, (AR– Radiation Division, 77 West Jackson otherwise subject to the CAIR trading
18J), 77 West Jackson Boulevard, Boulevard, Chicago, Illinois 60604. EPA programs to opt into such trading
Chicago, Illinois 60604. Such deliveries requests that if at all possible, you programs in accordance with opt-in
are only accepted during the Regional contact the person listed in the FOR provisions of the CAIR FIPs. Consistent
Office’s normal hours of operation. The FURTHER INFORMATION CONTACT section to
with the flexibility provided in the FIPs,
Regional Office’s official hours of schedule your inspection. The Regional these provisions will be used to replace
business are Monday through Friday, Office’s official hours of business are or supplement, as appropriate, the
8:30 to 4:30, excluding Federal holidays. Monday through Friday, 8:30 to 4:30, corresponding provisions in the CAIR
Instructions: Direct your comments to excluding Federal holidays. FIPs for Ohio. EPA is not making any
Docket ID No. ‘‘EPA–R05–OAR–2007– FOR FURTHER INFORMATION CONTACT: John changes to the CAIR FIPs, but is
0390’’. EPA’s policy is that all Paskevicz, Engineer, Criteria Pollutant amending to the extent EPA approves
comments received will be included in Section, Air Programs Branch (AR–18J), Ohio’s SIP revision, the appropriate
the public docket without change and Environmental Protection Agency, appendices in the CAIR FIP trading
may be made available online at Region 5, 77 West Jackson Boulevard, rules simply to note that approval.
www.regulations.gov, including any Chicago, Illinois 60604. The telephone
personal information provided, unless number is (312) 886–6084. Mr. II. What Is the Regulatory History of the
the comment includes information Paskevicz can also be reached via CAIR and the CAIR FIPs?
claimed to be Confidential Business electronic mail at: CAIR was published by EPA on May
Information (CBI) or other information paskevicz.john@epa.gov. 12, 2005 (70 FR 25162). In this rule,
whose disclosure is restricted by statute. SUPPLEMENTARY INFORMATION: EPA determined that 28 States and the
Do not submit through District of Columbia contribute
Table of Contents
www.regulations.gov or e-mail, significantly to nonattainment and
information that you consider to be CBI I. What Action Is EPA Taking? interfere with maintenance of the
or otherwise protected. The II. What Is the Regulatory History of CAIR national ambient air quality standards
and the CAIR FIPs?
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www.regulations.gov Web site is an III. What Are the General Requirements of


(NAAQS) for fine particles (PM2.5) and/
‘‘anonymous access’’ system, which CAIR and the CAIR FIPs? or 8-hour ozone in downwind States in
means EPA will not know your identity IV. What Are the Types of CAIR SIP the eastern part of the country. As a
or contact information unless you Submittals? result, EPA required those upwind
provide it in the body of your comment. V. Analysis of Ohio’s CAIR SIP Submittal States to revise their SIPs to include

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58548 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations

control measures that reduce emissions pollutant. The CAIR FIPs also allow EGUs to participate in the EPA-
of SO2, which is a precursor to PM2.5 States to submit abbreviated SIP administered CAIR cap-and-trade
formation, and/or NOX, which is a revisions that, if approved by EPA, will programs. For such States, EPA has
precursor to both ozone and PM2.5 automatically replace or supplement the provided two approaches for submitting
formation. For jurisdictions that corresponding CAIR FIP provisions and obtaining approval for CAIR SIP
contribute significantly to downwind (e.g., the methodology for allocating revisions. States may submit full SIP
PM2.5 nonattainment, CAIR sets annual NOX allowances to sources in the state), revisions that adopt the model CAIR
State-wide emission reduction while the CAIR FIP remains in place for cap-and-trade rules. If approved, these
requirements (i.e., budgets) for SO2 and all other provisions. SIP revisions will fully replace the CAIR
annual State-wide emission reduction On April 28, 2006, EPA published FIPs. Alternatively, States may submit
requirements for NOX. Similarly, for two more CAIR-related final rules that abbreviated SIP revisions. These SIP
jurisdictions that contribute added the States of Delaware and New revisions will not replace the CAIR FIPs;
significantly to 8-hour ozone Jersey to the list of States subject to however, the CAIR FIPs provide that,
nonattainment, CAIR sets State-wide CAIR for PM2.5 and announced EPA’s when approved, the provisions in these
emission reduction requirements for final decisions on reconsideration of abbreviated SIP revisions will be used
NOX for the ozone season (May 1st to five issues without making any instead of or in conjunction with, as
September 30th). Under CAIR, States substantive changes to the CAIR appropriate, the corresponding
may implement these emission budgets requirements. provisions of the CAIR FIPs (e.g., the
by participating in the EPA- III. What Are the General Requirements NOX allowance allocation
administered cap-and-trade programs or of CAIR and the CAIR FIPs? methodology).
by adopting any other control measures. A State submitting an abbreviated SIP
CAIR explains to subject States what CAIR establishes State-wide emission revision may submit limited SIP
must be included in SIPs to address the budgets for SO2 and NOX and is to be revisions to tailor the CAIR FIP cap-and-
requirements of section 110(a)(2)(D) of implemented in two phases. The first trade programs to the state submitting
the Clean Air Act (CAA) with regard to phase of NOX reductions starts in 2009 the revision. Specifically, an
interstate transport with respect to the and continues through 2014, while the abbreviated SIP revision may establish
8-hour ozone and PM2.5 NAAQS. EPA first phase of SO2 reductions starts in certain applicability and allowance
made national findings, effective May 2010 and continues through 2014. The allocation provisions that, the CAIR
25, 2005, that the States had failed to second phase of reductions for both FIPs provide, will be used instead of or
submit SIPs meeting the requirements of NOX and SO2 starts in 2015 and in conjunction with the corresponding
section 110(a)(2)(D). The SIPs were due continues thereafter. CAIR requires provisions in the CAIR FIP rules in that
in July 2000, 3 years after the States to implement the budgets by State. Specifically, the abbreviated SIP
promulgation of the 8-hour ozone and either (1) requiring EGUs to participate revisions may:
PM2.5 NAAQS. These findings started a in the EPA-administered cap-and-trade 1. Include NOX SIP Call trading
2-year clock for EPA to promulgate a programs or (2) adopting other control sources that are not EGUs under CAIR
Federal Implementation Plan (FIP) to measures of the State’s choosing and in the CAIR FIP NOX ozone season
address the requirements of section demonstrating that such control trading program;
110(a)(2)(D). Under CAA section measures will result in compliance with 2. Provide for allocation of NOX
110(c)(1), EPA may issue a FIP anytime the applicable State SO2 and NOX annual or ozone season allowances by
after such findings are made and must budgets. the State, rather than the Administrator,
do so within two years unless a SIP The May 12, 2005, and April 28, 2006,
and using a methodology chosen by the
revision correcting the deficiency is CAIR rules provide model rules that
State;
approved by EPA before the FIP is States must adopt (with certain limited
3. Provide for allocation of NOX
promulgated. changes, if desired) if they want to
On April 28, 2006, EPA promulgated annual allowances from the CSP by the
participate in the EPA-administered
FIPs for all States covered by CAIR in State, rather than by the Administrator,
trading programs.
order to ensure the emissions reductions With two exceptions, only States that and using the State’s choice of allowed,
required by CAIR are achieved on choose to meet the requirements of alternative methodologies; and/or
schedule. Each CAIR State is subject to CAIR through methods that exclusively 4. Allow units that are not otherwise
the FIPs until the State fully adopts, and regulate EGUs are allowed to participate CAIR units to opt individually into the
EPA approves, a SIP revision meeting in the EPA-administered trading CAIR FIP cap-and-trade programs under
the requirements of CAIR. The CAIR programs. One exception is for States the opt-in provisions in the CAIR FIP
FIPs require certain EGUs to participate that adopt the opt-in provisions of the rules.
in the EPA-administered CAIR SO2, model rules to allow non-EGUs With approval of an abbreviated SIP
NOX annual, and NOX ozone-season individually to opt into the EPA- revision, the CAIR FIP remains in place,
model trading programs, as appropriate. administered trading programs. The as tailored to sources in the State by that
The CAIR FIP SO2, NOX annual, and other exception is for States that include approved SIP revision.
NOX ozone season trading programs all non-EGUs from their NOX SIP Call Abbreviated SIP revisions can be
impose essentially the same trading programs in their CAIR NOX submitted in lieu of, or as part of, CAIR
requirements as, and are integrated ozone season trading programs. full SIP revisions. States may want to
with, the respective CAIR SIP trading designate part of their full SIP as an
programs. The integration of the CAIR IV. What Are the Types of CAIR SIP abbreviated SIP for EPA to act on first
FIP and SIP trading programs means Submittals? when the timing of the State’s
that these trading programs will work States have the flexibility to choose submission might not provide EPA with
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together to create effectively a single the type of control measures they will sufficient time to approve the full SIP
trading program for each regulated use to meet the requirements of CAIR. prior to the deadline for recording NOX
pollutant (SO2, NOX annual, and NOX EPA anticipates that most States will allocations. This will help ensure that
ozone season) in all States covered by choose to meet the CAIR requirements the elements of the trading programs
CAIR FIP or SIP trading program for that by selecting an option that requires where flexibility is allowed are

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implemented according to the State’s available for allocation for each year respective CAIR FIP trading rules are
decisions. Submission of an abbreviated under the EPA-administered cap-and- designed to work together as integrated
SIP revision does not preclude future trade programs under the CAIR FIPs. In SO2, NOX annual, and NOX ozone
submission of a CAIR full SIP revision. short, the abbreviated SIP revision only season trading programs.
In this case, the September 26, 2007, affects allocations of allowances under Ohio is subject to the CAIR FIPs
submittal from Ohio requests an the established budgets. concerning SO2, NOX annual, and NOX
abbreviated SIP revision. As discussed ozone season emissions, and the CAIR
B. CAIR Cap-and-Trade Programs FIP trading programs for SO2, NOX
below, Ohio requested three of the four
provisions for which a State may The CAIR NOX annual and ozone- annual, and NOX ozone season apply to
request an abbreviated SIP. The State season FIPs both largely mirror the sources in Ohio. Consistent with the
requested that its allocation of NOX structure of the NOX SIP Call model flexibility they give to States, the CAIR
annual and NOX ozone season trading rule in 40 CFR part 96, subparts FIPs provide that States may submit
allowances for EGUs under the FIP be A through I. While the provisions of the abbreviated SIP revisions that will
used instead of the corresponding NOX annual and ozone-season FIPs are replace or supplement, as appropriate,
provisions of the CAIR FIPs in effect in similar, there are some differences. For certain provisions of the CAIR FIP
the State. The State requested that its example, the NOX annual FIP (but not trading programs. The Ohio EPA
allocation of NOX annual allowances the NOX ozone season FIP) provides for September 26, 2007, submission is such
from the compliance supplement pool a CSP, which is discussed below and an abbreviated SIP revision.
(CSP) be used instead of the under which allowances may be
awarded for early reductions of NOX C. Applicability Provisions for Non-EGU
corresponding provisions of the CAIR NOX SIP Call Sources
FIPs in effect in the State. Finally, the annual emissions. As a further example,
State asked that units, that are not the NOX ozone season FIP reflects the In general, the CAIR FIP trading
fact that the CAIR NOX ozone season programs apply to any stationary, fossil-
otherwise CAIR units, may opt
trading program replaces the NOX SIP fuel-fired boiler or stationary, fossil-
individually into the CAIR FIP cap-and-
Call trading program after the 2008 fuel-fired combustion turbine serving at
trade program under the opt-in
ozone season and is coordinated with any time, since the later of November
provisions in the CAIR FIP rules.
the NOX SIP Call program. The NOX 15, 1990, or the start-up of the unit’s
V. Analysis of Ohio’s CAIR SIP ozone season FIP provides incentives combustion chamber, a generator with
Submittal for early emissions reductions by nameplate capacity of more than 25
allowing banked, pre-2009 NOX SIP Call MWe producing electricity for sale.
A. State Budgets for Allowance States have the option of bringing in,
allowances to be used for compliance in
Allocations for the CAIR NOX ozone season program
the CAIR NOX ozone-season trading
The CAIR NOX annual and ozone program. In addition, States have the only, those units in the State’s NOX SIP
season budgets were developed from option of continuing to meet their NOX Call trading program that are not EGUs
historical heat input data for EGUs. SIP Call requirement by participating in as defined under CAIR. EPA advises
Using these data, EPA calculated annual the CAIR NOX ozone season trading States exercising this option to use
and ozone season regional heat input program and including all their NOX SIP provisions for applicability that are
values, which were multiplied by 0.15 Call trading sources in that program. substantively identical to the provisions
lb/mmBtu, for phase 1, and 0.125 lb/ The provisions of the CAIR SO2 FIP in 40 CFR 96.304 and add the
mmBtu, for phase 2, to obtain regional are also similar to the provisions of the applicability provisions in the State’s
NOX budgets for 2009–2014 and for NOX annual and ozone season FIPs. NOX SIP Call trading rule for non-EGUs
2015 and thereafter, respectively. EPA However, the SO2 FIP is coordinated to the applicability provisions in 40 CFR
derived the State NOX annual and ozone with the ongoing Acid Rain SO2 cap- 96.304 in order to include in the CAIR
season budgets from the regional and-trade program under CAA title IV. NOX ozone season trading program all
budgets using State heat input data The SO2 FIP uses the title IV allowances units required to be in the State’s NOX
adjusted by fuel factors. for compliance, with each allowance SIP Call trading program that are not
The CAIR State SO2 budgets were allocated for 2010–2014 authorizing already included under 40 CFR 96.304.
derived by discounting the tonnage of only 0.50 ton of emissions and each Under this option, the CAIR NOX ozone
emissions authorized by annual allowance allocated for 2015 and season program must cover all large
allowance allocations under the Acid thereafter authorizing only 0.35 ton of industrial boilers and combustion
Rain Program under title IV of the CAA. emissions. Banked title IV allowances turbines, as well as any small EGUs (i.e.
Under CAIR, each allowance allocated allocated for years before 2010 can be units serving a generator with a
under the Acid Rain Program for the used at any time in the CAIR SO2 cap- nameplate capacity of 25 MWe or less),
years in phase 1 of CAIR (2010 through and-trade program, with each such that the State currently requires to be in
2014) authorizes 0.5 ton of SO2 allowance authorizing 1 ton of the NOX SIP Call trading program.
emissions in the CAIR trading program, emissions. Title IV allowances are to be Consistent with the flexibility given to
and each Acid Rain Program allowance freely transferable among sources States in the CAIR FIP Ohio has not
allocated for the years in phase 2 of covered by the Acid Rain Program and chosen, in the abbreviated CAIR SIP
CAIR (2015 and thereafter) authorizes sources covered by the CAIR SO2 cap- approved here, to expand the
0.35 ton of emissions in the CAIR and-trade program. applicability provisions of the CAIR
trading program. EPA used the CAIR model trading NOX ozone season trading program to
The CAIR FIPs established the rules as the basis for the trading include all non-EGUs in the State’s NOX
budgets for Ohio as 108,667 tons for programs in the CAIR FIPs. The CAIR SIP Call trading program. However, EPA
NOX annual emissions, 45,664 tons for FIP trading rules are virtually identical notes that Ohio has indicated that the
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NOX ozone season emissions, and to the CAIR model trading rules, with full SIP revision submitted on
333,520 tons for SO2 emissions. The changes made to account for federal September 26, 2007, expands the
Ohio SIP revision, approved in today’s rather than state implementation. The applicability provisions of CAIR NOX
action, does not affect these budgets, CAIR model SO2, NOX annual, and NOX ozone season trading program in this
which are total amounts of allowances ozone season trading rules and the manner. As such, EPA is not taking final

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action on the non-EGU portion of the The State’s energy-efficiency/renewable indicated that it will clarify its
State’s September 26, 2007, full CAIR energy (EE/RE) and innovative allocation provisions consistent with
SIP revision. The full CAIR SIP revision technology set-aside program provisions this statement in the September 28,
including actions to approve the non- establish two set-asides for each control 2007, letter.
EGU portions of the State’s CAIR rule period, one set-aside for EE/RE projects Consequently, EPA interprets Ohio’s
will be the subject of a separate future and one set-aside for innovative abbreviated SIP to limit the total
action. technology projects, and specify allocations for each control period of
procedures for allocating the allowances CAIR NOX ozone season allowances
D. NOX Allowance Allocations (whether from current or expanded set-
in the set-asides. Each set-aside is
Under the NOX allowance allocation limited to one percent of the state asides or under the other allocation
methodology in the CAIR model trading trading budget for NOX ozone season provisions in the abbreviated SIP) to the
rules and in the CAIR FIP, NOX annual allowance allocations. Beginning with state trading budget, consistent with the
and ozone season allowances are the end of 2009 and every three years requirements of 40 CFR
allocated to units that have operated for thereafter, Ohio EPA will review the 51.123(ee)(2)(ii)(B).
five years, based on heat input data from number of allowances allocated from E. Allocation of NOX Allowances From
a three-year period that are adjusted for the set-asides and will, under certain the Compliance Supplement Pool (CSP)
fuel type by using fuel factors of 1.0 for circumstances, increase the size of each
coal, 0.6 for oil, and 0.4 for other fuels. set-aside in future years as necessary, up The CSP provides an incentive for
The CAIR model trading rules and the to a maximum of five percent of the early reductions in NOX annual
CAIR FIP also provide a new unit set- state trading budget. emissions. The CSP consists of 200,000
aside from which units without five EPA notes that the set-aside CAIR NOX annual allowances of vintage
years of operation are allocated provisions do not explicitly state how 2009 for the entire CAIR region, and a
allowances based on the units’ prior allowances will be reserved in the set- State’s share of the CSP is based upon
year emissions. asides if the total amount of allowances the State’s share of the projected
The CAIR FIP provides States the requested from a set-aside exceeds the emission reductions under CAIR. States
flexibility to establish a different NOX total amount of allowances in that set- may distribute CSP allowances, one
allowance allocation methodology that aside. However, set-aside provisions allowance for each ton of early
will be used to allocate allowances to explicitly limit the amount of reduction, to sources that make NOX
sources in the States if certain allowances available from each set-aside reductions during 2007 or 2008 beyond
requirements are met concerning the to one percent of the state trading what is required by any applicable State
timing of submission of units’ budget unless Ohio EPA expands the or Federal emission limitation. States
allocations to the Administrator for set-asides in future years. In addition, also may distribute CSP allowances
recordation and the total amount of Ohio informed EPA, in the September based upon a demonstration of need for
allowances allocated for each control 26, 2007, letter, that its guidance for the an extension of the 2009 deadline for
period. In adopting alternative NOX set-asides provides that set-aside implementing emission controls.
allowance allocation methodologies, allowances will be reserved on a pro- The CAIR NOX annual FIP establishes
States have flexibility with regard to: rata basis if the total requested specific methodologies for allocations of
1. The cost to recipients of the allowances exceed the size of the set- CSP allowances. States may choose an
allowances, which may be distributed aside. Ohio has indicated that it will allowed, alternative CSP allocation
for free or auctioned; clarify its set-aside provisions consistent methodology to be used to allocate CSP
2. The frequency of allocations; with this guidance. allowances to sources in those States.
3. The basis for allocating allowances, The set-aside provisions also do not Consistent with the flexibility given to
which may be distributed, for example, explicitly state how a set-aside will be States in the FIP, Ohio has chosen to
based on historical heat input or electric increased up to five percent of the state modify the provisions of the CAIR NOX
and thermal output; and/or trading budget if the existing set-aside annual FIP concerning the allocation of
4. The use of allowance set-asides amounts plus the total amounts allowances from the CSP. Ohio has
and, if used, the size of the set-aside. allocated to units with and without chosen to distribute CSP allowances
Consistent with the flexibility given to baseline heat input under Ohio’s other using an allocation methodology that
States in the CAIR FIPs, Ohio has allocation provisions for NOX ozone provides more certainty to unit owners
chosen to replace the provisions of the season allowances already equal the and operators that a known quantity of
CAIR NOX annual FIP concerning the state trading budget. However, Ohio’s allowances per unit will be available for
allocation of NOX annual allowances CAIR NOX ozone season allocation distribution at the beginning of the
with its own methodology. Ohio has provisions clearly limit the total control period. Ohio also provides
chosen to distribute NOX annual allocations for each control period of owners and operators with an incentive
allowances based upon heat input data CAIR NOX ozone season allowances to for the operation of expensive post-
from a three year period adjusted for the amount of the state trading budget combustion control equipment year-
fuel type by using fuel adjustment for that control period. Further, as round and provides incentives for early
factors of 1.0 for coal, 0.6 for oil, and 0.4 written, the provisions for expanding reductions in emissions before 2009.
for other fuels. Based on this the set-asides cannot have any effect on Ohio EPA is required to submit
methodology, Ohio determined NOX the current allocations, which Ohio has allocations from the CSP to the
allocations for EGUs in the State under already submitted to the Administrator Administrator by July 1, 2009, or such
the CAIR FIP, and submitted its for phase 1 of the trading program. In time when unit’s 2008 emissions data
allocations to EPA on April 24, 2007. addition, Ohio informed EPA, in the are available so that the allocations can
Ohio also has included, in the September 28, 2007, letter, that Ohio be determined. Ohio’s abbreviated SIP
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abbreviated SIP revision, provisions EPA will reduce the total amount of also states that the Administrator will
regarding set-aside programs for energy allowances allocated to existing units record the allocations by January 1,
efficiency/renewable energy and under the other allocation provisions to 2010. While Ohio’s abbreviated SIP does
innovative technology projects under the extent the size of a set-aside is not explicitly state that allocations will
the CAIR NOX Ozone Season program. increased in the future. Ohio has be submitted to the Administrator by

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Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations 58551

November 30, 2009, EPA notes that without the ability for units to opt into Executive Order 13211: Actions That
units’ 2008 emissions data should the program. Significantly Affect Energy Supply,
certainly be available before that date Consistent with the flexibility given to Distribution, or Use
and that the allocations need to be States in the FIPs, Ohio has chosen to
submitted by that date in order to Because it is not a ‘‘significant
allow non-EGUs meeting certain regulatory action’’ under Executive
ensure that the Administrator will
requirements to participate in the CAIR Order 12866 or a ‘‘significant energy
complete recordation of allowances by
January 1, 2010. Further, Ohio has NOX annual trading program, the CAIR action,’’ this action is also not subject to
indicated, in the September 26, 2007, NOX ozone season trading program and Executive Order 13211, ‘‘Actions
letter, that it will clarify its CSP the CAIR SO2 trading program. Ohio Concerning Regulations That
provisions to provide for a deadline of EPA submitted the CAIR SIP program Significantly Affect Energy Supply,
November 30, 2009, for submission of rules, OAC 3745–109–08 and OAC Distribution, or Use’’ (66 FR 28355, May
CSP allocations to the Administrator. 3745–109–14 and OAC 3745–109–21, 22, 2001).
Consequently, EPA considers the Ohio which incorporate the opt-in provisions
as provided in the final EPA CAIR rule Regulatory Flexibility Act
abbreviated SIP to meet the
requirements of 40 CFR 51.123(p)(2). of April 28, 2006. These rules address This action merely approves state law
opt-ins for NOX ozone season, NOX as meeting Federal requirements and
F. Individual Opt-in Units
annual, and SO2 annual programs. imposes no additional requirements
The opt-in provisions allow for
VI. Final Action beyond those imposed by state law.
certain non-EGUs (i.e., boilers,
Accordingly, the Administrator certifies
combustion turbines, and other
EPA is approving the rules contained that this rule will not have a significant
stationary fossil-fuel-fired devices) that
in Ohio’s abbreviated CAIR SIP revision economic impact on a substantial
do not meet the applicability criteria for
submitted on September 26, 2007. Ohio number of small entities under the
a CAIR trading program to participate
voluntarily in (i.e., opt into) the CAIR is covered by the CAIR FIPs, which Regulatory Flexibility Act (5 U.S.C. 601
trading program. A non-EGU may opt require participation in the EPA- et seq.).
into one or more of the CAIR trading administered CAIR FIP cap-and-trade
Unfunded Mandates Reform Act
programs. In order to qualify to opt into programs for SO2, NOX annual, and NOX
a CAIR trading program, a unit must ozone season emissions. Under this Because this rule approves pre-
vent all emissions through a stack and abbreviated SIP revision, and consistent existing requirements under State law
be able to meet monitoring, with the flexibility given to States in the and does not impose any additional
recordkeeping, and recording FIPs, Ohio adopts provisions for enforceable duty beyond that required
requirements of 40 CFR part 75. The allocating allowances under the CAIR by State law, it does not contain any
owners and operators seeking to opt a FIP NOX annual and ozone season unfunded mandate or significantly or
unit into a CAIR trading program must trading programs. In addition, Ohio uniquely affect small governments, as
apply for a CAIR opt-in permit. If the adopts in the abbreviated SIP revision described in the Unfunded Mandates
unit is issued a CAIR opt-in permit, the provisions that establish a methodology Reform Act of 1995 (Pub. L. 104–4).
unit becomes a CAIR unit, is allocated for allocating allowances in the CSP and
allowances, and must meet the same allow for individual non-EGUs to opt Executive Order 13175: Consultation
allowance-holding and emissions and Coordination With Indian Tribal
into the CAIR FIP SO2, NOX annual,
monitoring and reporting requirements Governments
NOX ozone season cap-and-trade
as other units subject to the CAIR programs. As provided for in the CAIR This rule also does not have tribal
trading program. The opt-in provisions FIPs, these provisions in the abbreviated implications because it will not have a
provide for two methodologies for SIP revision will replace or supplement substantial direct effect on one or more
allocating allowances for opt-in units, the corresponding provisions of the Indian tribes, on the relationship
one methodology that applies to opt-in CAIR FIPs in Ohio. The abbreviated SIP between the Federal Government and
units in general and a second
revision meets the applicable Indian tribes, or on the distribution of
methodology that allocates allowances
requirements in 40 CFR 51.123(p) and power and responsibilities between the
only to opt-in units that the owners and
operators intend to repower before (ee), with regard to NOX annual and Federal Government and Indian tribes,
January 1, 2015. NOX ozone season emissions, and 40 as specified by Executive Order 13175
States have several options CFR 51.124(r), with regard to SO2 (59 FR 22951, November 9, 2000).
concerning the opt-in provisions. The emissions. EPA is not making any
Executive Order 13132: Federalism
rules for each of the CAIR FIP trading changes to the CAIR FIPs, but is
programs include opt-in provisions that amending the appropriate appendices in This action also does not have
are essentially the same as those in the the CAIR FIP trading rules simply to Federalism implications because it does
respective CAIR SIP model rules, except note that approval. not have substantial direct effects on the
that the CAIR FIP opt-in provisions States, on the relationship between the
VII. Statutory and Executive Order
become effective in a State only if the national government and the States, or
Reviews
State’s abbreviated SIP revision adopts on the distribution of power and
the opt-in provisions. The State may Executive Order 12866: Regulatory responsibilities among the various
adopt the opt-in provisions entirely or Planning and Review levels of government, as specified in
may adopt them but exclude one of the Executive Order 13132 (64 FR 43255,
allowance allocation methodologies. Under Executive Order 12866 (58 FR August 10, 1999). This action merely
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The State also has the option of not 51735, October 4, 1993), this action is approves a State rule implementing a
adopting any opt-in provisions in the not a ‘‘significant regulatory action’’ Federal standard, and does not alter the
abbreviated SIP revision and thereby and, therefore, is not subject to review relationship or the distribution of power
providing for the CAIR FIP trading by the Office of Management and and responsibilities established in the
program to be implemented in the State Budget. Clean Air Act.

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58552 Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations

Executive Order 13045: Protection of within which a petition for judicial Administrative Code (OAC) are
Children From Environmental Health review may be filed, and shall not incorporated by reference.
and Safety Risks postpone the effectiveness of such rule (A) OAC 3745–109–01(B)(59) ‘‘Energy
This rule also is not subject to or action. This action may not be efficiency/renewable energy project’’;
Executive Order 13045 ‘‘Protection of challenged later in proceedings to OAC 3745–109–01(B)(72) ‘‘Innovative
Children from Environmental Health enforce its requirements. (See section technology project’’; OAC 3745–109–04
Risks and Safety Risks’’ (62 FR 19885, 307(b)(2).) ‘‘CAIR NOX allowance allocations’’;
April 23, 1997), because it approves a List of Subjects OAC 3745–109–08 ‘‘CAIR NOX opt-in
State rule implementing a Federal units’’; OAC 3745–109–14 ‘‘CAIR SO2
Standard. 40 CFR Part 52 opt-in units’’; and OAC 3745–109–21
National Technology Transfer Environmental protection, Air ‘‘CAIR NOX ozone season opt-in units’’;
Advancement Act pollution control, Electric utilities, effective on September 27, 2007.
Incorporation by reference, (B) OAC 3745–109–17 ‘‘CAIR NOX
In reviewing SIP submissions, EPA’s Intergovernmental relations, Nitrogen
role is to approve State choices, ozone season allowance allocations’’;
oxides, Ozone, Particulate matter, effective on September 27, 2007, except
provided that they meet the criteria of Reporting and recordkeeping
the Clean Air Act. In this context, in the the following: the language in paragraph
requirements, Sulfur dioxide. (A) referencing the state trading budget
absence of a prior existing requirement
for the State to use voluntary consensus 40 CFR Part 97 for non-EGUs in 3745–109–17–01(C)(4),
standards (VCS), EPA has no authority Environmental protection, paragraphs (C)(1)(a)(i)(d), (C)(2)(b),
to disapprove a SIP submission for Administrative practice and procedure, (C)(2)(d), (C)(2)(e), and (C)(2)(f), and the
failure to use VCS. It would thus be Air pollution control, Electric utilities, language in paragraph (C)(3)(a)
inconsistent with applicable law for Intergovernmental relations, Nitrogen referencing non-EGUs.
EPA, when it reviews a SIP submission, oxides, Ozone, Particulate matter,
to use VCS in place of a SIP submission PART 97—[AMENDED]
Reporting and recordkeeping
that otherwise satisfies the provisions of requirements, Sulfur dioxide.
the Clean Air Act. Thus, the ■ 3. The authority citation for part 97
requirements of section 12(d) of the Dated: September 28, 2007. continues to read as follows:
National Technology Transfer and Bharat Mathur,
Authority: 42 U.S.C. 7401, 7403, 7410,
Advancement Act of 1995 (15 U.S.C. Acting Regional Administrator, Region 5.
7426, 7601, and 7651, et seq.
272 note) do not apply. ■ For the reasons set forth in the
Paperwork Reduction Act preamble, parts 52 and 97 of chapter 1 ■ 4. Appendix A to subpart EE is
of title 40 of the Code of Federal amended by adding in alphabetical
This rule does not impose an Regulations are amended as follows: order the entry ‘‘Ohio’’ under
information collection burden under the
paragraphs 1. and 2. to read as follows:
provisions of the Paperwork Reduction PART 52—[AMENDED]
Act of 1995 (44 U.S.C. 3501 et seq.). Appendix A to Subpart EE of Part 97—
■ 1. The authority citation for part 52 States With Approved State
Congressional Review Act continues to read as follows: Implementation Plan Revisions
The Congressional Review Act, 5 Authority: 42 U.S.C. 7401 et seq. Concerning Allocations
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement 1. * * *
Subpart KK—Ohio Ohio
Fairness Act of 1996, generally provides
that before a rule may take effect, the ■ 2. In § 52.1870 is amended by adding * * * * *
agency promulgating the rule must paragraph (c)(140) to read as follows: 2. * * *
submit a rule report, which includes a Ohio
copy of the rule, to each House of the § 52.1870 Identification of plan.
* * * * *
Congress and to the Comptroller General * * * * *
of the United States. EPA will submit a (c) * * * ■ 5. Appendix A to subpart II is
report containing this rule and other (140) Ohio Environmental Protection amended by adding in alphabetical
required information to the U.S. Senate, Agency submitted amendments on order the entry ‘‘Ohio’’ under
the U.S. House of Representatives, and September 26, 2007, to the State paragraphs 1. and 2. to read as follows:
the Comptroller General of the United Implementation Plan to control
States prior to publication of the rule in emissions from electric generating units Appendix A to Subpart II of Part 97—
the Federal Register. A major rule (EGU). Rules affecting these units States With Approved State
cannot take effect until 60 days after it include: Ohio Administrative Code Implementation Plan Revisions
is published in the Federal Register. (OAC) 3745–109–01 (B)(59) and (72), Concerning CAIR NOX Opt-In Units
This action is not a ‘‘major rule’’ as 3745–109–04, 3745–109–08, 3745–109–
1. * * *
defined by 5 U.S.C. 804(2). 14, 3745–109–17 (except the following:
Ohio
Under section 307(b)(1) of the Clean the language in paragraph (A)
Air Act, petitions for judicial review of referencing the state trading budget for * * * * *
this action must be filed in the United non-EGUs in 3745–109–17–01(C)(4), 2. * * *
States Court of Appeals for the paragraphs (C)(1)(a)(i)(d), (C)(2)(b), Ohio
appropriate circuit by December 17, (C)(2)(d), (C)(2)(e), and (C)(2)(f), and the * * * * *
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2007. Filing a petition for language in paragraph (C)(3)(a)


reconsideration by the Administrator of referencing non-EGUs), and 3745–109– ■ 6. Appendix A to subpart III of part 97
this final rule does not affect the finality 21. is amended by adding in alphabetical
of this rule for the purposes of judicial (i) Incorporation by reference. The order the entry ‘‘Ohio’’ under
review nor does it extend the time following sections of the Ohio paragraphs 1. and 2. to read as follows:

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Federal Register / Vol. 72, No. 199 / Tuesday, October 16, 2007 / Rules and Regulations 58553

Appendix A to Subpart III of Part 97— ACTION: Final rule. proof Flood Insurance Study and FIRM
States With Approved State available at the address cited below for
Implementation Plan Revisions SUMMARY: Base (1% annual chance) each community. The BFEs and
Concerning CAIR SO2 Opt-In Units Flood Elevations (BFEs) and modified modified BFEs are made final in the
BFEs are made final for the communities listed below. Elevations at
1. * * * communities listed below. The BFEs
Ohio selected locations in each community
and modified BFEs are the basis for the are shown.
* * * * * floodplain management measures that
2. * * * National Environmental Policy Act.
each community is required either to This final rule is categorically excluded
Ohio
adopt or to show evidence of being from the requirements of 44 CFR part
* * * * * already in effect in order to qualify or 10, Environmental Consideration. An
■ 7. Appendix A to subpart EEEE of part remain qualified for participation in the environmental impact assessment has
97 is amended by adding in alphabetical National Flood Insurance Program not been prepared.
order the entry ‘‘Ohio’’ to read as (NFIP).
Regulatory Flexibility Act. As flood
follows: DATES: The date of issuance of the Flood elevation determinations are not within
Appendix A to Subpart EEEE of Part Insurance Rate Map (FIRM) showing the scope of the Regulatory Flexibility
97—States With Approved State BFEs and modified BFEs for each Act, 5 U.S.C. 601–612, a regulatory
Implementation Plan Revisions community. This date may be obtained flexibility analysis is not required.
Concerning Allocations by contacting the office where the maps Regulatory Classification. This final
are available for inspection as indicated rule is not a significant regulatory action
* * * * * on the table below.
Ohio under the criteria of section 3(f) of
ADDRESSES: The final BFEs for each Executive Order 12866 of September 30,
* * * * * community are available for inspection 1993, Regulatory Planning and Review,
■ 8. Appendix A to subpart IIII of part at the office of the Chief Executive 58 FR 51735.
97 is amended by adding in alphabetical Officer of each community. The Executive Order 13132, Federalism.
order the entry ‘‘Ohio’’ under respective addresses are listed in the This final rule involves no policies that
paragraphs 1. and 2. to read as follows: table below. have federalism implications under
FOR FURTHER INFORMATION CONTACT: Executive Order 13132.
Appendix A to Subpart IIII of Part 97—
William R. Blanton, Jr., Engineering Executive Order 12988, Civil Justice
States With Approved State
Management Section, Mitigation Reform. This final rule meets the
Implementation Plan Revisions
Directorate, Federal Emergency applicable standards of Executive Order
Concerning CAIR NOX Ozone Season
Management Agency, 500 C Street, SW., 12988.
Opt-In Units
Washington, DC 20472, (202) 646–3151.
1. * * * List of Subjects in 44 CFR Part 67
SUPPLEMENTARY INFORMATION: The
Ohio Federal Emergency Management Agency Administrative practice and
2. * * *
Ohio (FEMA) makes the final determinations procedure, Flood insurance, Reporting
listed below for the modified BFEs for and recordkeeping requirements.
* * * * * each community listed. These modified
[FR Doc. E7–20252 Filed 10–15–07; 8:45 am] ■ Accordingly, 44 CFR part 67 is
elevations have been published in amended as follows:
BILLING CODE 6560–50–P newspapers of local circulation and
ninety (90) days have elapsed since that PART 67—[AMENDED]
publication. The Mitigation Division
DEPARTMENT OF HOMELAND Director of FEMA has resolved any ■ 1. The authority citation for part 67
SECURITY appeals resulting from this notification. continues to read as follows:
This final rule is issued in accordance Authority: 42 U.S.C. 4001 et seq.;
Federal Emergency Management with section 110 of the Flood Disaster Reorganization Plan No. 3 of 1978, 3 CFR,
Agency Protection Act of 1973, 42 U.S.C. 4104, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367,
and 44 CFR part 67. FEMA has 3 CFR, 1979 Comp., p. 376.
44 CFR Part 67 developed criteria for floodplain
§ 67.11 [Amended]
Final Flood Elevation Determinations management in floodprone areas in
accordance with 44 CFR part 60. ■ 2. The tables published under the
AGENCY:Federal Emergency Interested lessees and owners of real authority of § 67.11 are amended as
Management Agency, DHS. property are encouraged to review the follows:

*Elevation in feet
(NGVD)
+Elevation in feet
Flooding Location of referenced elevation (NAVD) Communities affected
source(s) # Depth in feet
above ground.
Modified

Breathitt County, Kentucky, and Incorporated Areas Docket No.: FEMA–B–7714

North Fork Kentucky River ....... Approximately 7.43 miles downstream of the confluence +717 Breathitt County (Unincor-
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with Frozen Creek near Cy Bend. porated Areas), City of


Jackson.
Approximately 2.83 miles upstream of the Robinson Road +754
Bridge at Quick Sand.

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