Unknown. Final rule

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

--- schema: federal-register doc_type: fedreg source_file: FR-2007-10-01.xml --- 72 189 Monday, October 1, 2007 Contents Agriculture Agriculture Department See Farm Service Agency See Forest Service Arctic Arctic Research Commission NOTICES Meetings, 55741 07-4830 Centers Centers for Disease Control and Prevention PROPOSED RULES Quarantine, inspection, and licensing: Dogs and cats importation regulations extended to cover domesticated ferrets, 55729 07-4852 NOTICES Agency information collection activities; proposals, submissions, and approvals, 55774-55775 E7-19301 Centers Centers for Medicare & Medicaid Services RULES Medicare:

Hospice wage index (2008 FY) Correction, 55672-55673 07-4851 NOTICES Medicare: Intermediary and carrier performance; evaluation criteria and standards, 55775-55780 07-4826 Commerce Commerce Department See International Trade Administration See National Oceanic and Atmospheric Administration Defense Defense Department NOTICES Civilian health and medical program of uniformed services (CHAMPUS): TRICARE program— Mental health rate updates (2008 FY), 55751-55752 07-4829 Privacy Act; systems of records, 55752-55760 E7-19321 Drug Drug Enforcement Administration PROPOSED RULES Combat Methamphetamine Epidemic Act of 2005:

Scheduled listed chemical products; self-certification fee for regulated sellers, 55712-55717 E7-19215 Education Education Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 55760-55761 E7-19337 Energy Energy Department See Federal Energy Regulatory Commission EPA Environmental Protection Agency RULES Air quality implementation plans: Preparation, adoption, and submittal— Clean Air Interstate Rule; Federal implementation plans; correction, 55657-55659 E7-19323 Air quality implementation plans; approval and promulgation; various States Alabama, 55659-55664 E7-19352 Indiana, 55664-55666 E7-19217 New Jersey, 55666-55672 E7-19216 PROPOSED RULES Air quality implementation plans:

Preparation, adoption, and submittal— Volatile organic compounds; definition revised, 55717-55723 E7-19324 Air quality implementation plans; approval and promulgation; various States New York, 55723-55729 E7-19346 NOTICES Air pollution control: Citizen suits; proposed settlements— Rocky Mountain Clean Air Action, 55765-55767 E7-19333 Meetings: Total Coliform Rule Distribution System Advisory Committee, 55767 E7-19316 Water pollution control: Total maximum daily loads— Arkansas, 55767-55768 07-4827 Louisiana, 55768-55769 E7-19335 Farm Farm Service Agency NOTICES Agency information collection activities; proposals, submissions, and approvals, 55736 E7-19262 FAA Federal Aviation Administration RULES Airworthiness directives:

Eclipse Aviation Corp. Correction, 55657 E7-19193 NOTICES Reports and guidance documents; availability, etc.: Compliance and enforcement program; enforcement policy notice withdrawn, 55853 07-4823 FCC Federal Communications Commission RULES Radio services, special: Fixed microwave services— 10.7-11.7 GHz band; antenna requirements, 55673-55678 E7-19342 NOTICES Agency information collection activities; proposals, submissions, and approvals, 55769-55771 E7-19226 E7-19244 E7-19250 Rulemaking proceedings; petitions filed, granted, denied, etc., 55772 E7-19338 *Applications, hearings, determinations, etc.:* Ace Radio Corp. et al., 55771-55772 E7-19341 Federal Election Federal Election Commission NOTICES Special elections; filing dates:

Ohio, 55772-55773 E7-19261 Federal Emergency Federal Emergency Management Agency NOTICES National Flood Insurance Program: Flood map changes, 55796-55797 E7-19296 Federal Energy Federal Energy Regulatory Commission NOTICES Electric rate and corporate regulation combined filings, 55761-55762 E7-19283 Natural gas companies (Natural Gas Act): Fuel retention practices, 55762-55765 E7-19386 Federal Motor Federal Motor Carrier Safety Administration RULES Technical amendments, 55697-55704 E7-19196 Federal Reserve Federal Reserve System RULES Depository institutions; reserve requirements (Regulation D):

Reserve requirement exemption amount and low reserve tranche (2008); annual indexing, 55655-55657 E7-19263 NOTICES Banks and bank holding companies: Formations, acquisitions, and mergers, 55773-55774 E7-19314 Federal Transit Federal Transit Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 55853-55854 E7-19315 Meetings: Los Angeles, CA; Westside Transit Extension Corridor; alternatives analysis of transit improvements; early scoping notice, 55854-55856 E7-19363 Food Food and Drug Administration NOTICES Human drugs:

Hydrocodone-containing products; enforcement action dates, 55780-55784 E7-19340 Meetings: Nonprescription Drugs and Pediatric Advisory Committees, 55784 E7-19332 Forest Forest Service NOTICES Agency information collection activities; proposals, submissions, and approvals, 55736-55737 E7-19253 Environmental statements; notice of intent: Bitterroot National Forest, MT, 55737-55738 07-4805 Inyo National Forest, CA, 55738-55741 07-4774 Health Health and Human Services Department See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services See Food and Drug Administration See National Institutes of Health See Substance Abuse and Mental Health Services Administration Homeland Homeland Security Department See Federal Emergency Management Agency See Transportation Security Administration See U.S.

Customs and Border Protection Housing Housing and Urban Development Department RULES Mortgage and loan insurance programs: Single family mortgage insurance— Mortgaged property; mortgager's investment standards, 56002-56007 07-4846 NOTICES Agency information collection activities; proposals, submissions, and approvals, 55799-55800 E7-19286 Grant and cooperative agreement awards: Historically Black Colleges and Universities Program, 55800-55801 E7-19288 Low income housing: Housing assistance payments (Section 8)— Housing Choice Voucher Program and Moderate Rehabilitation Single Room Occupancy Program (2008 FY); fair market rents, 55940-56000 07-4801 Privacy Act; systems of records, 55801-55803 E7-19287 E7-19289 Interior Interior Department See Land Management Bureau See National Park Service See Surface Mining Reclamation and Enforcement Office International International Boundary and Water Commission, United States and Mexico NOTICES Environmental statements; availability, etc.:

El Paso County, TX and Dona Ana and Sierra Counties, NM; Rio Grande Canalization Project Levee System; flood control improvements, 55805-55806 E7-19209 International International Trade Administration NOTICES Antidumping: Cut-to-length carbon steel plate from— Russia, 55744-55745 E7-19336 Oil country tubular goods from— Mexico, 55747 E7-19325 Antidumping and countervailing duties: Administrative review requests, 55741-55742 07-4858 Five year (sunset) reviews— Advance notification, 55744 E7-19345 Initiation of reviews, 55742-55744 E7-19339 Grants and cooperative agreements; availability, etc.:

International Buyer Program; domestic trade shows support, 55745-55747 E7-19354 Overseas trade missions: 2008 trade missions— Ghana, Nigeria, and South Africa; Sub-Saharan Trade Mission; business development, 55747-55750 07-4835 *Applications, hearings, determinations, etc.:* University of— California at Irvine et al., 55745 E7-19330 International International Trade Commission NOTICES Import investigations: Sulfanilic acid from— Hungary and Portugal, 55806-55808 E7-19065 Justice Justice Department See Drug Enforcement Administration Labor Labor Department NOTICES Reports and guidance documents; availability, etc.:

Goods from countries produced by child labor or forced labor in violation of international standards; list development and maintenance, 55808-55811 E7-19310 Land Land Management Bureau NOTICES Survey plat filings: Wisconsin, 55803-55804 E7-19302 Mexico Mexico and United States, International Boundary and Water Commission See International Boundary and Water Commission, United States and Mexico NASA National Aeronautics and Space Administration NOTICES Patent licenses; non-exclusive, exclusive, or partially exclusive:

Quest Integrated, 55811 E7-19284 Privacy Act; systems of records, 55811-55833 E7-19266 E7-19267 E7-19268 E7-19278 NIH National Institutes of Health NOTICES Meetings: National Cancer Institute, 55784-55785 07-4819 07-4820 National Center for Complementary and Alternative Medicine, 55785 07-4811 National Heart, Lung, and Blood Institute, 55785-55786 07-4810 07-4822 National Institute of Child Health and Human Development, 55786, 55788 07-4807 07-4808 07-4821 National Institute of Dental and Craniofacial Research, 55787-55788 07-4817 National Institute of Neurological Disorders and Stroke, 55786-55787 07-4812 National Institute on Aging, 55787 07-4814 National Institute on Alcohol Abuse and Alcoholism, 55787 07-4816 Research on Women's Health Advisory Committee, 55788 07-4815 Scientific Review Center, 55788-55793 07-4809 07-4813 07-4818 Senior Executive Service Performance Review Board; membership, 55794 E7-19285 NOAA National Oceanic and Atmospheric Administration RULES Fishery conservation and management:

Northeastern United States fisheries— Atlantic bluefish, 55704 07-4832 Summer flounder, scup, and black sea bass, 55704-55706 E7-19348 West Coast States and Western Pacific fisheries— Salmon, 55706-55710 E7-19358 E7-19367 E7-19368 E7-19374 PROPOSED RULES Fishery conservation and management: Atlantic highly migratory species— Atlantic commercial shark management measures, 55729-55735 E7-19378 NOTICES Fishery conservation and management: Northeastern United States fisheries— Atlantic surfclam and ocean quahog, 55750 E7-19353 Meetings:

Pacific Fishery Management Council, 55750-55751 E7-19319 National Park National Park Service NOTICES National Register of Historic Places; pending nominations, 55804 E7-19241 Navajo Navajo and Hopi Indian Relocation Office NOTICES Senior Executive Service Performance Review Board; membership, 55833-55834 07-4802 Nuclear Nuclear Regulatory Commission RULES Byproduct material; expanded definition requirements, 55864-55937 07-4735 NOTICES *Applications, hearings, determinations, etc.:* Entergy Nuclear Operations, Inc., 55834 E7-19311 U.S.

Army Jefferson Proving Ground Site, IN, 55834-55835 E7-19313 Pipeline Pipeline and Hazardous Materials Safety Administration RULES Hazardous materials: Miscellaneous corrections and clarifications, 55678-55697 E7-19138 NOTICES Agency information collection activities; proposals, submissions, and approvals; correction, 55856-55857 E7-19293 SEC Securities and Exchange Commission NOTICES Investment Company Act of 1940: Citi Investor Services, Inc., et al., 55836-55838 E7-19282 MMA Praxis Mutual Funds et al., 55838-55839 E7-19281 Public Company Accounting Oversight Board:

Inspection frequency requirements for registered public accounting firms; proposed rule filing, 55839-55841 E7-19275 Tax services for persons in financial reporting oversight roles; proposed rule filing, 55841-55843 E7-19274 Self-regulatory organizations; proposed rule changes: American Stock Exchange LLC, 55843-55850 E7-19270 E7-19272 E7-19273 Financial Industry Regulatory Authority, Inc., 55850-55852 E7-19271 *Applications, hearings, determinations, etc.:* Gerdine & Associates, 55835-55836 E7-19291 Substance Substance Abuse and Mental Health Services Administration NOTICES Agency information collection activities; proposals, submissions, and approvals, 55794-55796 E7-19303 Surface Surface Mining Reclamation and Enforcement Office NOTICES Agency information collection activities; proposals, submissions, and approvals, 55804-55805 07-4824 Surface Surface Transportation Board NOTICES Railroad services abandonment:

BNSF Railway Co., 55857 E7-19298 Susquehanna Susquehanna River Basin Commission PROPOSED RULES Projects review and approval: Agricultural water use; definition clarification, etc., 55711-55712 E7-19290 NOTICES Commission actions, 55852-55853 E7-19292 Transportation Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration See Federal Transit Administration See Pipeline and Hazardous Materials Safety Administration See Surface Transportation Board Transportation Transportation Security Administration NOTICES Organization, functions, and authority delegations:

Federal Docket Management System; migration of data and service disruption, 55797-55799 E7-19277 Customs U.S. Customs and Border Protection NOTICES Meetings: Trade Symposium 2007; Partnerships-Meeting Challenges of Securing and Facilitating Trade, 55799 E7-19299 Veterans Veterans Affairs Department NOTICES Agency information collection activities; proposals, submissions, and approvals, 55857-55861 E7-19300 E7-19304 E7-19305 E7-19306 E7-19307 E7-19308 E7-19309 Meetings: Homeless Veterans Advisory Committee, 55861-55862 07-4825 Separate Parts In This Issue Part II Nuclear Regulatory Commission, 55864-55937 07-4735 Part III Housing and Urban Development Department, 55940-56000 07-4801 Part IV Housing and Urban Development Department, 56002-56007 07-4846 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws.

To subscribe to the Federal Register Table of Contents LISTSERV electronic mailing list, go to http://listserv.access.gpo.gov and select Online mailing list archives, FEDREGTOC-L, Join or leave the list (or change settings); then follow the instructions. 72 189 Monday, October 1, 2007 Rules and Regulations FEDERAL RESERVE SYSTEM 12 CFR Part 204 [Regulation D; Docket No. R-1297] Reserve Requirements of Depository Institutions AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule. SUMMARY: The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2008. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent reserve requirement in 2008 at $9.3 million, up from $8.5 million in 2007. This amount is known as the reserve requirement exemption amount.

The Regulation D amendment also sets the amount of net transaction accounts at each depository institution that is subject to a three percent reserve requirement in 2008 at $43.9 million, down from $45.8 million in 2007. This amount is known as the low reserve tranche. The adjustments to both of these amounts are derived using statutory formulas specified in the Federal Reserve Act. The Board is also announcing changes in two other amounts, the nonexempt deposit cutoff level and the reduced reporting limit, that are used to determine the frequency at which depository institutions must submit deposit reports.

DATES: *Effective date:* October 31, 2007. *Compliance dates:* For depository institutions that report deposit data weekly, the new low reserve tranche and reserve requirement exemption amount will apply to the fourteen-day reserve computation period that begins Tuesday, November 20, 2007, and the corresponding fourteen-day reserve maintenance period that begins Thursday, December 20, 2007. For depository institutions that report deposit data quarterly, the new low reserve tranche and reserve requirement exemption amount will apply to the seven-day reserve computation period that begins Tuesday, December 18, 2007, and the corresponding seven-day reserve maintenance period that begins Thursday, January 17, 2008.

For all depository institutions, these new values of the nonexempt deposit cutoff level, the reserve requirement exemption amount, and the reduced reporting limit will be used to determine the frequency at which a depository institution submits deposit reports effective in either June or September 2008. FOR FURTHER INFORMATION CONTACT: Heatherun Sophia Allison, Senior Counsel (202/452-3565), Legal Division, or Margaret Gillis DeBoer, Financial Analyst (202/452-3139), Division of Monetary Affairs; for users of Telecommunications Device for the Deaf

(TDD)only, contact (202/263-4869); Board of Governors of the Federal Reserve System, 20th and C Streets, NW., Washington, DC 20551. SUPPLEMENTARY INFORMATION: Section 19(b)(2) of the Federal Reserve Act (12 U.S.C. 461(b)(2)) requires each depository institution to maintain reserves against its transaction accounts and nonpersonal time deposits, as prescribed by Board regulations, for the purpose of implementing monetary policy. Section 11(a)(2) of the Federal Reserve Act (12 U.S.C. 248(a)(2)) authorizes the Board to require reports of liabilities and assets from depository institutions to enable the Board to conduct monetary policy. The Board's actions with respect to each of these provisions are discussed in turn below. 1. Reserve Requirements Pursuant to section 19(b) of the Federal Reserve Act (Act), transaction account balances maintained at each depository institution are subject to reserve requirement ratios of zero, three, or ten percent. Section 19(b)(11)(A) of the Act (12 U.S.C. 461(b)(11)(A)) provides that a zero percent reserve requirement shall apply at each depository institution to total reservable liabilities that do not exceed a certain amount, known as the reserve requirement exemption amount. Section 19(b)(11)(B) provides that, before December 31 of each year, the Board shall issue a regulation adjusting the reserve requirement exemption amount for the next calendar year if total reservable liabilities held at all depository institutions increase from one year to the next. No adjustment is made to the reserve requirement exemption amount if total reservable liabilities held at all depository institutions should decrease during the applicable time period. The Act requires the percentage increase in the reserve requirement exemption amount to be 80 percent of the increase in total reservable liabilities of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. Total reservable liabilities of all depository institutions increased 11.0 percent (from $3,779 billion to $4,200 billion) between June 30, 2006, and June 30, 2007. Accordingly, the Board is amending Regulation D to increase the reserve requirement exemption amount by $0.8 million, from $8.5 million for 2007 to $9.3 million for 2008. 1 1 Consistent with Board practice, the low reserve tranche and reserve requirement exemption amounts have been rounded to the nearest $0.1 million. Pursuant to Section 19(b)(2) of the Act (12 U.S.C. 461(b)(2)), transaction account balances maintained at each depository institution over the reserve requirement exemption amount and up to a certain amount, known as the low reserve tranche, are subject to a three percent reserve requirement. Transaction account balances over the low reserve tranche are subject to a ten percent reserve requirement. Section 19(b)(2) also provides that, before December 31 of each year, the Board shall issue a regulation adjusting the low reserve tranche for the next calendar year. The Act requires the adjustment in the low reserve tranche to be 80 percent of the percentage increase or decrease in total transaction accounts of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. Currently, the low reserve tranche is $45.8 million. Net transaction accounts of all depository institutions decreased 5 percent (from $681 billion to $646 billion) between June 30, 2006 and June 30, 2007. Accordingly, the Board is amending Regulation D (12 CFR part 204) to decrease the low reserve tranche for net transaction accounts by $1.9 million, from $45.8 million for 2007 to $43.9 million for 2008. For depository institutions that file deposit reports weekly, the new low reserve tranche and reserve requirement exemption amount will be effective for the fourteen-day reserve computation period beginning Tuesday, November 20, 2007, and for the corresponding fourteen-day reserve maintenance period beginning Thursday, December 20, 2007. For depository institutions that report quarterly, the new low reserve tranche and reserve requirement exemption amount will be effective for the seven-day reserve computation period beginning Tuesday, December 18, 2007, and for the corresponding seven-day reserve maintenance period beginning Thursday, January 17, 2008. 2. Deposit Reports Section 11(b)(2) of the Federal Reserve Act authorizes the Board to require depository institutions to file reports of their liabilities and assets as the Board may determine to be necessary or desirable to enable it to discharge its responsibility to monitor and control the monetary and credit aggregates. The Board screens depository institutions each year and assigns them to one of four deposit reporting panels (weekly reporters, quarterly reporters, annual reporters, or nonreporters). The panel assignment for annual reporters is effective in June of the screening year; the panel assignment for weekly and quarterly reporters is effective in September of the screening year. In order to ease reporting burden, the Board permits smaller depository institutions to submit deposit reports less frequently than larger depository institutions. The Board permits depository institutions with net transaction accounts above the reserve requirement exemption amount but total transaction accounts, savings deposits, and small time deposits below a specified level (the “nonexempt deposit cutoff”) to report deposit data quarterly. Depository institutions with net transaction accounts above the reserve requirement exemption amount but with total transaction accounts, savings deposits, and small time deposits above the nonexempt deposit cutoff are required to report deposit data weekly. The Board requires certain large depository institutions to report weekly regardless of the level of their net transaction accounts if the depository institution's total transaction accounts, savings deposits, and small time deposits exceeds a specified level (the “reduced reporting limit”). The nonexempt deposit cutoff level and the reduced reporting limit are adjusted annually, by an amount equal to 80 percent of the increase, if any, total transaction accounts, savings deposits, and small time deposits of all depository institutions over the one-year period that ends on the June 30 prior to the adjustment. From June 30, 2006 to June 30, 2007, total transaction accounts, savings deposits, and small time deposits at all depository institutions increased 5 percent (from $5,867 billion to $6,168 billion). Accordingly, the Board is adjusting the nonexempt deposit cutoff level to $216.2 million for 2008. The Board is also adjusting the reduced reporting limit to $1.211 billion for 2008. 2 2 Consistent with Board practice, the nonexempt deposit cutoff level has been rounded to the nearest $0.1 million, and the reduced reporting limit has been rounded to the nearest $1 million. Beginning in 2008, the boundaries of the four deposit reporting panels will be defined as follows. Those depository institutions with net transaction accounts over $9.3 million (the reserve requirement exemption amount) or with total transaction accounts, savings deposits, and small time deposits greater than or equal to $1.211 billion (the reduced reporting limit) are subject to detailed reporting, and must file a Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900 report) either weekly or quarterly. Of this group, those with total transaction accounts, savings deposits, and small time deposits greater than or equal to $216.2 million (the nonexempt deposit cutoff level) are required to file the FR 2900 report each week, while those with total transaction accounts, savings deposits, and small time deposits less than $216.2 million are required to file the FR 2900 report each quarter. Those depository institutions with net transaction accounts less than or equal to $9.3 million (the reserve requirement exemption amount) and with total transaction accounts, savings deposits, and small time deposits less than $1.211 billion (the reduced reporting limit) are eligible for reduced reporting, and must either file a deposit report annually or not at all. Of this group, those with total deposits greater than $9.3 million (but with total transaction accounts, savings deposits, and small time deposits less than $1.211 billion) are required to file the Annual Report of Deposits and Reservable Liabilities (FR 2910a) report annually, while those with total deposits less than or equal to $9.3 million are not required to file a deposit report. A depository institution that adjusts reported values on its FR 2910a report in order to qualify for reduced reporting will be shifted to an FR 2900 reporting panel. *Notice and Regulatory Flexibility Act.* The provisions of 5 U.S.C. 553(b) relating to notice of proposed rulemaking have not been followed in connection with the adoption of these amendments. The amendments involve expected, ministerial adjustments prescribed by statute and by the Board's policy concerning reporting practices. The adjustments in the reserve requirement exemption amount, the low reserve tranche, the nonexempt deposit cutoff level, and the reduced reporting limit serve to reduce regulatory burdens on depository institutions. Accordingly, the Board finds good cause for determining, and so determines, that notice in accordance with 5 U.S.C. 553(b) is unnecessary. Consequently, the provisions of the Regulatory Flexibility Act, 5 U.S.C. 601, do not apply to these amendments. List of Subjects in 12 CFR Part 204 Banks, Banking, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, the Board is amending 12 CFR part 204 as follows: PART 204—RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) 1. The authority citation for part 204 continues to read as follows: Authority: 12 U.S.C. 248(a), 248(c), 371a, 461, 601, 611, and 3105. 2. Section 204.9 is revised to read as follows: § 204.9 Reserve requirement ratios. The following reserve requirement ratios are prescribed for all depository institutions, banking Edge and agreement corporations, and United States branches and agencies of foreign banks: Category Reserve requirement Net transaction accounts: $0 to $9.3 million 0 percent of amount. Over $9.3 million and up to $43.9 million 3 percent of amount. Over $43.9 million $1,038,000 plus 10 percent of amount over $43.9 million. Nonpersonal time deposits 0 percent. Eurocurrency liabilities 0 percent. By order of the Board of Governors of the Federal Reserve System, September 25, 2007. Jennifer J. Johnson, Secretary of the Board. [FR Doc. E7-19263 Filed 9-28-07; 8:45 am] BILLING CODE 6210-01-P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA-2007-28462; Directorate Identifier 2007-CE-056-AD; Amendment 39-15115; AD 2007-13-11] RIN 2120-AA64 Airworthiness Directives; Eclipse Aviation Corporation Model EA500 Airplanes AGENCY: Federal Aviation Administration (FAA), DOT. ACTION: Final rule; correction. SUMMARY: This document makes a correction to Airworthiness Directive

(AD)2007-13-11, which was published in the **Federal Register** on June 22, 2007 (72 FR 34363), and applies to Eclipse Aviation Corporation (Eclipse) Model EA500 airplanes. AD 2007-13-11 requires you to incorporate information into the Limitations section of the airplane flight manual

(817)222-5146; fax:

(817)222-5960. SUPPLEMENTARY INFORMATION: Discussion On June 14, 2007, the FAA issued AD 2007-13-11, Amendment 39-15115 (72 FR 34363, June 22, 2007), which applies to Eclipse EA500 airplanes. AD 2007-13-11 requires you to incorporate information into the Limitations section of the airplane flight manual

(AFM)that will require operation only in day visual flight rules (VFR), allow only a VFR flight plan, and maintain operation with two pilots. The published AD references an incorrect docket of Docket No. FAA-2007-28432 instead of Docket No. FAA-2007-28462. Need for the Correction This correction is needed to incorporate all docket information for this project into its own area in the Docket Management System (DMS). Correction of Publication Accordingly, the publication of June 22, 2007 (72 FR 34363), of Amendment 39-15115; AD 2007-13-11, which was the subject of FR Doc. E7-11933, is corrected as follows: On page 34363, in the third column, in the fourth line, change “Docket No. FAA-2007-28432” to “Docket No. FAA-2007-28462.” On page 34364, in the first column, on line 25 under ADDRESSES , change “Docket No. FAA-2007-28432” to “Docket No. FAA-2007-28462.” On page 343645, in the third column, in the ninth and tenth lines under Comments Invited, change “Docket No. FAA-2007-28432” to “Docket No. FAA-2007-28462.” § 39.13 [Corrected] On page 34365, in the first column, in the fifth and sixth lines of § 39.13, change “Docket No. FAA-2007-28432” to “Docket No. FAA-2007-28462.” Action is taken herein to correct the docket number references and to add this AD correction to section 39.13 of the Federal Aviation Regulations (14 CFR 39.13). The effective date remains June 22, 2007. Issued in Kansas City, Missouri, on September 24, 2007. Kim Smith, Manager, Small Airplane Directorate, Aircraft Certification Service. [FR Doc. E7-19193 Filed 9-28-07; 8:45 am] BILLING CODE 4910-13-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 51 and 97 [EPA-HQ-OAR-2003-0053; FRL-8476-1] RIN 2060-AO54 Clean Air Interstate Rule

(CAIR)and CAIR Federal Implementation Plans; Corrections AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule; correcting amendments. SUMMARY: In this rule, EPA is making a minor correction to the Clean Air Interstate Rule

(CAIR)to restore a phrase of regulatory text related to State annual emissions reporting requirements that was inadvertently deleted when the rule was amended in 2006. This rule also corrects typographical errors in the spellings of three States in the CAIR regulatory text and corrects a typographical error in a section citation in the CAIR Federal Implementation Plans

(FIPs)regulatory text. DATES: *Effective Date:* These correcting amendments are effective on October 1, 2007. ADDRESSES: The EPA has established a docket for this action under Docket ID No. EPA-HQ-OAR-2003-0053. All documents in the docket are listed in the www.regulations.gov index. Although listed in the index, some information is not publicly available, e.g., confidential business information or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in *www.regulations.gov* or in hard copy at the EPA Docket Center EPA/DC, EPA West, Room 3334, 1301 Constitution Ave., 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 EPA Docket Center is

(202)566-1742. This action and other rulemaking actions related to the CAIR and CAIR FIPs are also available at EPA's CAIR Web site at *http://www.epa.gov/cair* . FOR FURTHER INFORMATION CONTACT: Carla Oldham, U.S. EPA, Office of Air Quality Planning and Standards, Air Quality Policy Division, C539-04, Research Triangle Park, NC 27711; telephone number

(919)541-3347, e-mail address: *oldham.carla@epa.gov* . SUPPLEMENTARY INFORMATION: I. Background On May 12, 2005, EPA published the CAIR in a final rule entitled, “Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule); Revisions to Acid Rain Program; Revisions to NO X SIP Call” (70 FR 25162). The CAIR requires affected States to reduce emissions of nitrogen oxides (NO X ) and sulfur dioxide (SO 2 ) that contribute significantly to nonattainment and maintenance problems in downwind States with respect to the national ambient air quality standards (NAAQS) for fine particulate matter (PM 2.5 ) and 8-hour ozone. Among other things, the rule establishes emissions reporting requirements for the affected States. On April 28, 2006, EPA amended the CAIR to include two additional States in CAIR with respect to the PM 2.5 NAAQS (71 FR 25288). On April 28, 2006, EPA published FIPs for the CAIR as part of a final rule entitled, “Rulemaking on Section 126 Petition From North Carolina to Reduce Interstate Transport of Fine Particulate Matter and Ozone; Federal Implementation Plans To Reduce Interstate Transport of Fine Particulate Matter and Ozone; Revisions to the Clean Air Interstate Rule; Revisions to the Acid Rain Program” (71 FR 25328). For a detailed description of the CAIR and the CAIR FIPs, please see the rulemaking actions which are available on EPA's Web site at *http://www.epa.gov/cair* and in the **Federal Register** at 70 FR 25162 (May 12, 2005), 71 FR 25328 (April 28, 2006), 71 FR 74792 (December 13, 2006), and 71 FR 25328 (April 28, 2006). II. Why Are the Corrections Needed? 40 CFR 51.125 sets forth SO 2 and NO X emission reporting requirements that must be included in State SIP revisions to meet the requirements of CAIR. Section 51.125(a)(1) as promulgated in the original CAIR read as follows: “Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Missouri, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin and the District of Columbia, must report annual (12 months) emissions of SO 2 and NO X .” (See 70 FR at 25333; May 12, 2005.) When EPA revised the CAIR in 2006 to add two additional States (Delaware and New Jersey) to the CAIR region for the PM 2.5 NAAQS, EPA revised § 51.125 to add the two States to the list of those required to report annual NO X and SO 2 emissions. However, in revising the regulatory text, EPA inadvertently deleted the phrase “must report annual (12 months) emissions of SO 2 and NO X ” (71 FR at 25302; April 28, 2006). Therefore, EPA is correcting the error and restoring the phrase as originally promulgated in CAIR. The EPA is also taking this opportunity to correct the typographical errors in the spelling of three States in the list of States in § 51.125(a)(2) of CAIR. EPA is also correcting a typographical error in a section reference in Appendix A to subpart EEEE of part 97 in the CAIR NO X Ozone Season FIP. III. What Is the Rulemaking Procedure? The EPA is issuing this final rule without prior proposal or the opportunity for public comment because EPA finds that it is unnecessary and not in the public interest to provide such notice and opportunity for comment. Section 553 of the Administrative Procedure Act (APA), 5 U.S.C. 553(b)(B), provides that when an Agency for good cause finds that notice and public procedure are impracticable, unnecessary, or contrary to public interest, the Agency may issue a rule without providing notice and an opportunity to comment. Section 307(d)(1) of the Clean Air Act (CAA), among other things, further provides that CAA subsection 307(d) does not apply when EPA has made a good cause finding pursuant to subparagraph

(B)of APA subsection 553(b). (See 42 U.S.C. 7607(d)(1).) In this rule, EPA finds that it is unnecessary and would serve no useful purpose for EPA to provide an opportunity for public comment because the changes to the CAIR and CAIR FIPs merely correct minor, inadvertent, and nonsubstantive errors. As explained above, the correction to 40 CFR section 51.125(a)(1) corrects a minor error that was inadvertently introduced in 2006 and restores the original language properly promulgated with significant public input in 2005. The additional spelling and citation corrections are minor, nonsubstantive corrections to eliminate errors in the regulatory text. Further, EPA provided notice, public hearings, and an opportunity to comment when promulgating the CAIR and CAIR FIPs. For these reasons, EPA finds pursuant to APA section 553 that good cause exists to promulgate this final rule without publishing notice of a proposed rule or providing an opportunity for public comment. Section 553(d)(3) also allows an agency, upon a finding of good cause, to make a rule effective immediately. Because this action corrects inadvertent errors and helps to clarify requirements in the underlying rules, EPA finds good cause exists to make these corrections effective immediately. IV. Statutory and Executive Order Reviews This action only corrects minor, inadvertent and nonsubstantive errors in the CAIR and the CAIR FIPs promulgated in 2005 and 2006 respectively. For that reason, this rule: is not subject to review by the Office of Management and Budget under Executive Order 12866 Regulatory Planning and Review (58 FR 51735, October 4, 1993); is not a “major rule” as defined by 5 U.S.C. 804(2); and does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). Because EPA found that for this action it is unnecessary to issue a proposed rule and invite public comment, this action is also not subject to the regulatory flexibility provisions of the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ), or to sections 202 and 205 of the Unfunded Mandates Reform Act of 1995

(UMRA)(Pub. L. 104B4). In addition, this action does not significantly or uniquely affect small governments or impose a significant intergovernmental mandate, as described in sections 203 and 204 of the UMRA. The corrections do not have substantial direct effects on the States, or on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132, Federalism (64 FR 43255; August 10, 1999). This action also does not significantly or uniquely affect the communities of Tribal governments, as specified in Executive Order 13175, Consultation and Coordination with Indian Tribal Governments (65 FR 67249, November 9, 2000). The corrections also are not subject to Executive Order 13045, Protection of Children from Environmental Health and Safety Risks (62 FR 19885, April 23, 1997) because this action is not economically significant. The corrections are not subject to Executive Order 13211, Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use (66 FR 28355, May 22, 2001) because this action is not a significant regulatory action under Executive Order 12866. The corrections do not involve changes to technical standards related to test methods or monitoring methods; thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272) do not apply. The corrections also do not involve special consideration of environmental justice-related issues as required by Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations (59 FR 7629, February 16, 1994). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. The EPA will submit a report containing this final action and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the U.S. prior to publication of this action in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). The final rule will be effective on October 1, 2007. The EPA's compliance with the above statutes and Executive Orders for the underlying rules is discussed in Section X of the CAIR at 70 FR 25305 and in Section IX of the CAIR FIPs at 71 FR 25365. List of Subjects 40 CFR Part 51 Environmental protection, Administrative practice and procedure, Air pollution control, Electric utilities, Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur dioxide. 40 CFR Part 97 Environmental protection, Administrative practice and procedure, Air pollution control, Electric utilities, Intergovernmental relations, Nitrogen oxides, Reporting and recordkeeping requirements, Sulfur dioxide. Dated: September 25, 2007. Stephen L. Johnson, Administrator. For the reasons set forth in the preamble, parts 51 and 97 of title 40, chapter I of the Code of Federal Regulations are amended as follows: PART 51—[AMENDED] 1. The authority citation for part 51 continues to read as follows: Authority: 23 U.S.C. 101; 42 U.S.C. 7401-7671q. § 51.125 [Amended] 2. Section 51.125 is amended as follows: a. In paragraph (a)(1), by removing the word “Columbia” and adding in its place the words “Columbia must report annual (12 months) emissions of SO 2 and NO X ”. b. In paragraph (a)(2), by removing the word “Deleware” and adding in its place the word “Delaware”, by removing the word “Indinia” and adding in its place “Indiana”, and by removing the word “Lousianna” and adding in its place “Louisiana”. PART 97—[AMENDED] 3. The authority citation for part 97 continues to read as follows: Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 7651, *et seq.* Appendix A to Subpart EEEE of Part 97 [Amended] 4. Appendix A to Subpart EEEE is amended by revising the citation “97.344(a)” to read “97.343(a)”. [FR Doc. E7-19323 Filed 9-28-07; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R04-OAR-2007-0359-200736; FRL-8475-9] Approval and Promulgation of Implementation Plans; Alabama; Clean Air Interstate Rule AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: EPA is taking final action to approve a revision to the Alabama State Implementation Plan

(SIP)submitted on March 7, 2007. The Alabama Department of Environmental Management

(ADEM)also previously submitted a final submittal dated June 16, 2006, which was subsequently updated in a prehearing request for parallel processing on November 16, 2006, to comply with EPA's revisions to the model rule. Alabama's final March 7, 2007, submittal replaces the State's June 16, 2006, and November 16, 2006, submittals. This revision addresses the requirements of EPA's Clean Air Interstate Rule

(CAIR)promulgated on May 12, 2005, and subsequently revised on April 28, 2006, and December 13, 2006. EPA has determined that the SIP revision fully implements the CAIR requirements for Alabama. As a result of this action, EPA will also withdraw, through a separate rulemaking, the CAIR Federal Implementation Plans

(FIPs)concerning sulfur dioxide (SO 2 ), nitrogen oxides (NO X ) annual, and NO X ozone season emissions for Alabama. The CAIR FIPs for all States in the CAIR region were promulgated on April 28, 2006, and subsequently revised on December 13, 2006. CAIR requires States to reduce emissions of SO 2 and NO X that significantly contribute to, and interfere with maintenance of, the National Ambient Air Quality Standards (NAAQS) for fine particulates (PM 2.5 ) and/or ozone in any downwind state. CAIR establishes State budgets for SO 2 and NO X and requires States to submit SIP revisions that implement these budgets in States that EPA concluded did contribute to nonattainment in downwind states. States have the flexibility to choose which control measures to adopt to achieve the budgets, including participating in the EPA-administered cap-and-trade programs. In the SIP revision that EPA is approving, Alabama has met the CAIR requirements by electing to participate in the EPA-administered cap-and-trade programs addressing SO 2 , NO X annual, and NO X ozone season emissions. DATES: This rule is effective on October 31, 2007. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA-R04-OAR-2007-0359. All documents in the docket are listed on the *www.regulations.gov* web site. 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 through *www.regulations.gov* or in hard copy at the Regulatory Development Section, Air Planning Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you contact the person listed in the FOR FURTHER INFORMATION CONTACT section to schedule your inspection. The Regional Office's official hours of business are Monday through Friday, 8:30 to 4:30 excluding federal holidays. FOR FURTHER INFORMATION CONTACT: Stacy Harder, Regulatory Development Section, Air Planning Branch, Air, Pesticides and Toxics Management Division, Region 4, U.S. Environmental Protection Agency, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. The telephone number is

(404)562-9042. Ms. Harder can also be reached via electronic mail at *harder.stacy@epa.gov.* SUPPLEMENTARY INFORMATION: Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. Table of Contents I. What Action Is EPA Taking? II. What Is the Regulatory History of CAIR and the CAIR FIPs? III. What Are the General Requirements of CAIR and the CAIR FIPs? IV. Analysis of Alabama's CAIR SIP Submittal A. State Budgets for Allowance Allocations B. CAIR Cap-and-Trade Programs C. NO X Allowance Allocations D. Allocation of NO X Allowances From the Compliance Supplement Pool E. Individual Opt-in Units V. Final Action VI. Statutory and Executive Order Reviews I. What Action Is EPA Taking? EPA is taking final action to approve a revision to Alabama's SIP submitted on March 7, 2007. In its SIP revision, Alabama has met the CAIR requirements by requiring certain electric generating units

(EGUs)to participate in the EPA-administered State CAIR cap-and-trade programs addressing SO 2 , NO X annual, and NO X ozone season emissions. Alabama's regulations adopt by reference most of the provisions of EPA's SO 2 , NO X annual, and NO X ozone season model trading rules, with certain changes discussed below. EPA has determined that the SIP as revised will meet the applicable requirements of CAIR. As a result of this action, the Administrator of EPA will also issue a final rule to withdraw the FIPs concerning SO 2 , NO X annual, and NO X ozone season emissions for Alabama. The Administrator's action will delete and reserve 40 CFR 52.54 and 40 CFR 52.55, relating to the CAIR FIP obligations for Alabama. The withdrawal of the CAIR FIPs for Alabama is a conforming amendment that must be made once the SIP is approved because EPA's authority to issue the FIPs was premised on a deficiency in the SIP for Alabama. Once a SIP is fully approved, EPA no longer has authority for the FIPs. Thus, EPA does not have the option of maintaining the FIPs following full SIP approval. Accordingly, EPA does not intend to offer an opportunity for a public hearing or an additional opportunity for written public comment on the withdrawal of the FIPs. EPA proposed to approve Alabama's request to amend the SIP on July 12, 2007 (72 FR 38045). In that proposal, EPA also stated its intent to withdraw the FIP, as described above. The comment period closed on August 13, 2007. No comments were received. EPA is finalizing the approval as proposed based on the rationale stated in the proposal and in this final action. II. What is the Regulatory History of CAIR and the CAIR FIPs? The CAIR was published by EPA on May 12, 2005 (70 FR 25162). In this rule, EPA determined that 28 States and the District of Columbia contribute significantly to nonattainment and interfere with maintenance of the NAAQS for PM 2.5 and/or 8-hour ozone in downwind States in the eastern part of the country. As a result, EPA required those upwind States to revise their SIPs to include control measures that reduce emissions of SO 2 , which is a precursor to PM 2.5 formation, and/or NO X , which is a precursor to both ozone and PM 2.5 formation. For jurisdictions that contribute significantly to downwind PM 2.5 nonattainment, CAIR sets annual State-wide emission reduction requirements (i.e., budgets) for SO 2 and annual State-wide emission reduction requirements for NO X . Similarly, for jurisdictions that contribute significantly to 8-hour ozone nonattainment, CAIR sets State-wide emission reduction requirements for NO X for the ozone season (May 1 to September 30). Under CAIR, States may implement these reduction requirements by participating in the EPA-administered cap-and-trade programs or by adopting any other control measures. CAIR explains to subject States what must be included in SIPs to address the requirements of section 110(a)(2)(D) of the Clean Air Act

(CAA)with regard to interstate transport with respect to the 8-hour ozone and PM 2.5 NAAQS. EPA made national findings, effective on May 25, 2005, that the States had failed to submit SIPs meeting the requirements of section 110(a)(2)(D). The SIPs were due in July 2000, three years after the promulgation of the 8-hour ozone and PM 2.5 NAAQS. III. What Are the General Requirements of CAIR and the CAIR FIPs? CAIR establishes State-wide emission budgets for SO 2 and NO X and is to be implemented in two phases. The first phase of NO X reductions starts in 2009 and continues through 2014, while the first phase of SO 2 reductions starts in 2010 and continues through 2014. The second phase of reductions for both NO X and SO 2 starts in 2015 and continues thereafter. CAIR requires States to implement the budgets by either:

(1)Requiring EGUs to participate in the EPA-administered cap-and-trade programs; or

(2)adopting other control measures of the State's choosing and demonstrating that such control measures will result in compliance with the applicable State SO 2 and NO X budgets. The May 12, 2005, and April 28, 2006, CAIR rules provide model rules that States must adopt (with certain limited changes, if desired) if they want to participate in the EPA-administered trading programs. With two exceptions, only States that choose to meet the requirements of CAIR through methods that exclusively regulate EGUs are allowed to participate in the EPA-administered trading programs. One exception is for States that adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into the EPA-administered trading programs. The other exception is for States that include all non-EGUs from their NO X SIP Call trading programs in their CAIR NO X ozone season trading programs. IV. Analysis of Alabama's CAIR SIP Submittal A. State Budgets for Allowance Allocations In this action, EPA is taking final action to approve Alabama's SIP revision that adopts the following budgets for the State, i.e., 69,020 (2009-2014) and 57,517 (2015-thereafter) tons for NO X annual emissions, 34,510 (2009-2014) and 29,146 (2015-thereafter) tons for NO X ozone season emissions, and 157,582 (2010-2014) and 110,307 (2015-thereafter) tons for SO 2 emissions. The NO X ozone season budget properly reflects the inclusion of NO X SIP Call trading program units in the CAIR NO X ozone season trading program, as discussed below. Alabama's SIP revision sets these budgets as the total amounts of allowances available for allocation for each year under the EPA-administered cap-and-trade programs. B. CAIR Cap-and-Trade Programs The CAIR NO X annual and ozone season model trading rules both largely mirror the structure of the NO X SIP Call model trading rule in 40 CFR part 96, subparts A through I. While the provisions of the NO X annual and ozone season model rules are similar, there are some differences. For example, the NO X annual model rule (but not the NO X ozone season model rule) provides for a compliance supplement pool (CSP), which is discussed below and under which allowances may be awarded for early reductions of NO X annual emissions. As a further example, the NO X ozone season model rule reflects the fact that the CAIR NO X ozone season trading program replaces the NO X SIP Call trading program after the 2008 ozone season and is coordinated with the NO X SIP Call program. The NO X ozone season model rule provides incentives for early emissions reductions by allowing banked, pre-2009 NO X SIP Call allowances to be used for compliance in the CAIR NO X ozone season trading program. In addition, States have the option of continuing to meet their NO X SIP Call requirement by participating in the CAIR NO X ozone season trading program and including all their NO X SIP Call trading sources in that program. The provisions of the CAIR SO 2 model rule are also similar to the provisions of the NO X annual and ozone season model rules. However, the SO 2 model rule is coordinated with the ongoing Acid Rain SO 2 cap-and-trade program under CAA title IV. The SO 2 model rule uses the title IV allowances for compliance, with each allowance allocated for 2010-2014 authorizing only 0.50 ton of emissions and each allowance allocated for 2015 and thereafter authorizing only 0.35 ton of emissions. Banked title IV allowances allocated for years before 2010 can be used at any time in the CAIR SO 2 cap-and-trade program, with each such allowance authorizing one ton of emissions. Title IV allowances are to be freely transferable among sources covered by the Acid Rain Program and sources covered by the CAIR SO 2 cap-and-trade program. EPA also used the CAIR model trading rules as the basis for the trading programs in the CAIR FIPs. The CAIR FIP trading rules are virtually identical to the CAIR model trading rules, with changes made to account for Federal rather than State implementation. The CAIR model SO 2 , NO X annual, and NO X ozone season trading rules and the respective CAIR FIP trading rules are designed to work together as integrated SO 2 , NO X annual, and NO X ozone season trading programs. In the SIP revision, Alabama has chosen to implement its CAIR budgets by requiring EGUs to participate in EPA-administered cap-and-trade programs for SO 2 , NO X annual, and NO X ozone season emissions. Alabama has adopted a full SIP revision (with the revisions discussed above) that adopts, with certain allowed changes discussed below, the CAIR model cap-and-trade rules for SO 2 , NO X annual, and NO X ozone season emissions. C. Applicability Provisions for Non-EGU NO X SIP Call Sources In general, the CAIR model trading rules apply to any stationary, fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine serving at any time, since the later of 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. States have the option of bringing in, for the CAIR NO X ozone season program only, those units in the State's NO X SIP Call trading program that are not EGUs as defined under CAIR. States exercising this option need to add the applicability provisions in the State's NO X SIP Call trading rule for non-EGUs to the applicability provisions in 40 CFR 96.304 in order to include in the CAIR NO X ozone season trading program all units required to be in the State's NO X SIP Call trading program that are not already included under 40 CFR 96.304. Under this option, the CAIR NO X ozone season program must cover all large industrial boilers and combustion turbines, as well as any small EGUs (i.e. units serving a generator with a nameplate capacity of 25 MWe or less) that the State currently requires to be in the NO X SIP Call trading program. Alabama has chosen to expand the applicability provisions of the CAIR NO X ozone season trading program to include all non-EGUs in the State's NO X SIP Call trading program. D. NO X Allowance Allocations Under the NO X allowance allocation methodology in the CAIR model trading rules and in the CAIR FIP, NO X annual and ozone season allowances are allocated to units that have operated for five years, based on heat input data from a three-year period that are adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for oil, and 0.4 for other fuels. The CAIR model trading rules and the CAIR FIP also provide a new unit set-aside from which units without five years of operation are allocated allowances based on the units' prior year emissions. States may establish in their SIP submissions a different NO X allowance allocation methodology that will be used to allocate allowances to sources in the States if certain requirements are met concerning the timing of submission of units' allocations to the Administrator for recordation and the total amount of allowances allocated for each control period. In adopting alternative NO X allowance allocation methodologies, States have flexibility with regard to:

(1)The cost to recipients of the allowances, which may be distributed for free or auctioned;

(2)the frequency of allocations;

(3)the basis for allocating allowances, which may be distributed, for example, based on historical heat input or electric and thermal output; and

(4)the use of allowance set-asides and, if used, their size. Alabama has chosen to replace the provisions of the CAIR NO X annual and CAIR NO X ozone season model trading rules concerning the allocation of allowances with its own methodology. Alabama has chosen to distribute NO X annual allowances based upon allocation methods for existing, replacement, and new units. As explained in the proposed approval, EPA understands that the language is intended to mean that allocations will be determined by the dates and only for the years identified or described in 40 CFR 96.141 and 40 CFR 96.341. EPA did not receive any comments on this issue, and concludes that this understanding is a correct interpretation of Alabama's rules. Additionally, Alabama's CAIR NO X Annual and CAIR NO X ozone season rules establish permanent allocations for specified units designated as “existing units” or “new units” and do not include provisions of the EPA's model rules that call for adjusting the allocations for existing units to provide allocations for future, new units. Finally, Alabama's CAIR NO X ozone season rule includes special provisions concerning the allocation of allowances for the 2009 control period. As discussed above, Alabama's rule expanded the applicability provisions of the model rule to include—as CAIR NO X ozone season units—those units in Alabama's NO X SIP Call program (i.e., Alabama's NO X Budget Trading Program) that are not covered by model rule applicability provisions. Alabama already issued NO X allowances to some of those units for 2009 under the NO X Budget Trading Program. Alabama's rule (in Rule 335-3.8-.29(3)(d)1.(i)) states that, if a unit was allocated more allowances under the NO X Budget Trading Program for 2009 than it would otherwise be allocated under Alabama's allocation provisions generally applicable to CAIR NO X ozone season units, then the Department “will allocate the same number of CAIR Ozone Season allowances” to that unit. The allocations to other units under the generally applicable allocation provisions will be reduced for 2009 in order to take account of this adjustment of the NO X Budget Trading Program unit's 2009 allocation. Further, Alabama's rule (in Rule 335-3.8-.29(2)(a)1.) states that, for the 2009 control period, the Department will submit to the Administrator, for the purpose of recording allocations, “only the difference between the CAIR NO X Ozone Season allowance allocations and the 2009 NO X Budget Trading Program allowance allocations.” In short, Alabama's rule treats each unit's 2009 NO X Budget Trading Program allocation as a 2009 CAIR NO X ozone season allocation for that unit that has been previously recorded by the Administrator. EPA therefore interprets Alabama's rule to provide that each 2009 NO X Budget Trading Program allowance is a 2009 CAIR NO X ozone season allowance, whether the NO X Budget Trading Program allowance is still held by the owners and operators of the unit or has been transferred to other parties. Consistent with this interpretation of Alabama's rule, the Administrator—in operating the CAIR NO X Ozone Season Tracking System—will treat each such allowance as usable for compliance with the allowance-holding requirements of the CAIR NO X Ozone Season Trading Program by any CAIR NO X ozone season source that holds the allowances in the source's compliance account as of the allowance transfer deadline, regardless of the State in which the source is located. EPA is taking final action to approve the above-described variations in Alabama's rule from the model rule provisions because the changes are consistent with the flexibility that CAIR provides States with regard to allocation methodologies. E. Allocation of NO X Allowances From the Compliance Supplement Pool The CAIR establishes a compliance supplement pool to provide an incentive for early reductions in NO X annual emissions. The CSP consists of 200,000 CAIR NO X annual allowances of vintage 2009 for the entire CAIR region, and a State's share of the CSP is based upon the projected magnitude of the emission reductions required by CAIR in that State. States may distribute CSP allowances, one allowance for each ton of early reduction, to sources that make NO X reductions during 2007 or 2008 beyond what is required by any applicable State or Federal emission limitation. States also may distribute CSP allowances based upon a demonstration of need for an extension of the 2009 deadline for implementing emission controls. The CAIR annual NO X model trading rule establishes specific methodologies for allocations of CSP allowances. States may choose an allowed, alternative CSP allocation methodology to be used to allocate CSP allowances to sources in the States. Alabama has chosen to modify the provisions from the CAIR NO X annual model trading rule concerning the allocation of allowances from the CSP. Alabama has chosen to distribute CSP allowances using an allocation methodology that allows the Department to allocate up to 10,166 additional CAIR NO X allowances for the control period in 2009. CAIR NO X units that achieve emissions reductions in 2007 and 2008, that are not necessary to comply with applicable emissions limitations during those years, may request early reduction credits. The units requesting CSP allocations must submit a request by May 1, 2009, to ADEM. Sources are eligible to receive CSP allowances only to the extent that that the total number of allowances issued does not exceed 15 percent of the total number of NO X allowances issued to that unit from the initial allowance allocation. Any remaining CSP allowances after the initial distribution will be allocated to eligible units on a pro rata basis, provided that no unit is issued more allowances than the early reduction credits requested by that unit in accordance with ADEM's CSP provisions. F. Individual Opt-In Units The opt-in provisions of the CAIR SIP model trading rules allow certain non-EGUs (i.e., boilers, combustion turbines, and other stationary fossil-fuel-fired devices) that do not meet the applicability criteria for a CAIR trading program to participate voluntarily in (i.e., opt into) the CAIR trading program. A non-EGU may opt into one or more of the CAIR trading programs. In order to qualify to opt into a CAIR trading program, a unit must vent all emissions through a stack and be able to meet monitoring, recordkeeping, and recording requirements of 40 CFR part 75. The owners and operators seeking to opt a unit into a CAIR trading program must apply for a CAIR opt-in permit. If the unit is issued a CAIR opt-in permit, the unit becomes a CAIR unit, is allocated allowances, and must meet the same allowance-holding and emissions monitoring and reporting requirements as other units subject to the CAIR trading program. The opt-in provisions provide for two methodologies for allocating allowances for opt-in units, one methodology that applies to opt-in units in general and a second methodology that allocates allowances only to opt-in units that the owners and operators intend to repower before January 1, 2015. States have several options concerning the opt-in provisions. States may adopt the CAIR opt-in provisions entirely or may adopt them but exclude one of the methodologies for allocating allowances. States may also decline to adopt the opt-in provisions at all. Alabama has chosen to allow non-EGUs meeting certain requirements to opt into the CAIR trading programs by adopting by reference the entirety of EPA's model rule provisions for opt-in units in the CAIR SO 2 , CAIR NO X annual, and CAIR NO X ozone season trading programs. V. Final Action EPA is taking final action to approve Alabama's full CAIR SIP revision submitted on March 7, 2007. Under this SIP revision, Alabama is choosing to participate in the EPA-administered cap-and-trade programs for SO 2 , NO X annual, and NO X ozone season emissions. EPA has determined that the SIP revision meets the applicable requirements in 40 CFR 51.123(o) and (aa), with regard to NO X annual and NO X ozone season emissions, and 40 CFR 51.124(o), with regard to SO 2 emissions. EPA has determined that the SIP as revised will meet the requirements of CAIR. The Administrator of EPA will also issue, without providing an opportunity for a public hearing or an additional opportunity for written public comment, a final rule to withdraw the CAIR FIPs concerning SO 2 , NO X annual, and NO X ozone season emissions for Alabama. The Administrator's action will delete and reserve 40 CFR 52.54 and 40 CFR 52.55. EPA will take final action to withdraw the CAIR FIPs for Alabama in a separate rulemaking. VI. Statutory and Executive Order Reviews Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This action merely approves State law as meeting Federal requirements and would impose no additional requirements beyond those imposed by State law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Because this action approves pre-existing requirements under State law and does not impose any additional enforceable duty beyond that required by State law, it does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4). This rule also does not have tribal implications because it will not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a State rule implementing a Federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the CAA. This rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it approves a State rule implementing a Federal standard. In reviewing SIP submissions, EPA's role is to approve State choices, provided that they meet the criteria of the CAA. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the CAA. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by November 30, 2007. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2)). List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds. Dated: September 21, 2007. J.I. Palmer, Jr., Regional Administrator, Region 4. 40 CFR part 52 is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42.U.S.C. 7401 *et seq.* Subpart B—Alabama 2. Section 52.50(c) is amended by: a. Under Chapter 335-3-5 add in numerical order new entries for “335-3-5-.06,” “335-3-5-.07,” “335-3-5-.08,” “335-3-5-.11,” “335-3-5-.12,” “335-3-5-.13,” and “335-3-5-.14,” b. Under Chapter 335-3-8 revise entries for “335-3-8-.05,” and “335-3-8-.10,” c. Under Chapter 335-3-8 add in numerical order new entries for “335-3-8-.16,” “335-3-8-.17,” 335-3-8-.18,” 335-3-8-.20,” 335-3-8-.21,” “335-3-8-.23,” “335-3-8-.24,” “335-8-.25,” 335-3-8-.26,” “335-3-8-.27,” “335-3-8-.29,” “335-3-8-.30,” “335-3-8-.32,” and “335-3-8-.33.” § 52.50 Identification of plan.

(c)* * * EPA-Approved Alabama Regulations State citation Title/subject State effective date EPA approval date Explanation Chapter 335-3-5—Control of Sulfur Compound Emissions * * * * * * * 335-3-5-.06 State Clean Air Interstate Rule

(CAIR)SO 2 Trading Program Provisions 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.07 CAIR Designated Representative for CAIR SO 2 Sources 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.08 Permits 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.11 CAIR SO 2 Allowance Tracking System 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.12 CAIR SO 2 Allowance Transfers 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.13 Monitoring and Reporting 04/03/07 10/01/07 [Insert citation of publication] 335-3-5-.14 CAIR SO 2 Opt-In Units 04/03/07 10/01/07 [Insert citation of publication] * * * * * * * Chapter 335-3-8—Control of Nitrogen Oxide Emissions * * * * * * * 335-3-8-.05 NO X Budget Trading Program 04/03/07 10/01/07 [Insert citation of publication] * * * * * * * 335-3-8-.10 NO X Allowance Tracking System 04/03/07 10/01/07 [Insert citation of publication] * * * * * * * 335-3-8-.16 CAIR NO X Annual Budget Trading Program 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.17 CAIR Designated Representative for CAIR NO X Sources 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.18 CAIR Permits 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.20 CAIR NO X Allowance Allocations 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.21 CAIR NO X Allowance Tracking System 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.23 CAIR Monitoring and Reporting 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.24 CAIR NO X Opt-In Units 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.25 CAIR NO X Ozone Season Trading Program 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.26 CAIR Designated Representative for CAIR NO X Ozone Season Sources 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.27 CAIR NO X Ozone Season Permits 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.29 CAIR NO X Ozone Season Allowance Allocations 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.30 CAIR NO X Ozone Season Allowance Tracking System 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.32 CAIR NO X Ozone Season Monitoring and Reporting 04/03/07 10/01/07 [Insert citation of publication] 335-3-8-.33 CAIR NO X Ozone Season Opt-In Units 04/03/07 10/01/07 [Insert citation of publication] * * * * * * * [FR Doc. E7-19352 Filed 9-28-07; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA-R05-OAR-2006-0540; FRL-8472-4] Approval and Promulgation of Air Quality Implementation Plans; Indiana; Oxides of Nitrogen Regulations, Phase II AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: The EPA is approving Indiana's oxides of nitrogen (NO X ) rules which satisfy the requirements of EPA's NO X SIP Call Phase II Rule (the Phase II Rule). EPA is approving these regulations based on Indiana's demonstration that they will result in the achievement of the Phase II budget through source compliance with rules affecting stationary internal combustion

(IC)engines which are identified in the NO X plan submittal. Limiting NO X emissions from IC engines will enable the State to meet the Phase II incremental difference of 4,244 tons during the ozone season, thereby improving air quality and protecting the health of Indiana citizens. EPA is also approving other changes to Indiana's NO X rules. These are minor clerical corrections and changes in definitions made by Indiana to conform to the revisions made by EPA in the Phase II Rule. DATES: This final rule is effective on October 31, 2007. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA-R05-OAR-2006-0540. All documents in the docket are listed on the *www.regulations.gov* Web site. Although listed in the index, some information is not publicly available, i.e., Confidential Business Information

(CBI)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 through *www.regulations.gov* or in hard copy at the Environmental Protection Agency, Region 5, Air and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. We recommend that you telephone John Paskevicz, Engineer, at

(312)886-6084 before visiting the Region 5 office. FOR FURTHER INFORMATION CONTACT: John Paskevicz, Engineer, Criteria Pollutant Section, Air Programs Branch (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604,

(312)886-6084, *paskevicz.john@epa.gov.* SUPPLEMENTARY INFORMATION: Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA. This supplementary information section is arranged as follows: I. What action is being taken by EPA? II. Is my IC engine subject to these regulations? III. Why is the Indiana IC engine program approvable? IV. Statutory and Executive Order Reviews I. What action is being taken by EPA? We are approving the Phase II Rule, submitted by Indiana on March 8, 2006 and supplemented on June 22, 2006, to control NO X emissions from IC engines in Indiana. EPA proposed to approve the Phase II Rule on May 30, 2007 (72 FR 29897), and received no comments. Indiana's Phase II Rule is consistent with the NO X SIP Call Technical Amendments published in the **Federal Register** dated April 21, 2004, (69 FR 21604). The State has shown, through its budget demonstration, that it can achieve the Phase II budget increment through source compliance with the State's rules affecting IC engines and the State's permitting program. Meeting the Phase II budget increment and the Phase I increment means the State will meet its total overall ozone season NO X budget and bring about reductions in ozone concentrations in the State and downwind from Indiana. EPA is also approving other changes to Indiana's NO X SIP. These other changes are minor clerical corrections and changes in definitions to conform to the changes made by EPA in the NO X Phase II Rule. II. Is my IC engine subject to these regulations? New rule 326 IAC 10-5 applies to any person who owns or operates a large stationary reciprocating IC engine or other smaller stationary IC engines that are included in a compliance plan. A large IC engine is defined as an engine that emits more than one ton of NO X per ozone season day, based on operation during the 1995 ozone season. Pipeline energy companies are the major users of large IC engines and the State developed its budget demonstration based on control of engines used in this energy transport industry. III. Why is the Indiana IC engine program approvable? The Indiana IC engine program is approvable because implementation of the program will result in reduction of NO X and meet the cap in emissions for units in this source category. The Indiana program meets the Phase II incremental difference of 4,244 tons per ozone season, as specified in the April 21, 2004 **Federal Register** (69 FR 21604). The minor amendments to 326 IAC 10-3 and 326 IAC 10-4 are also approvable as they clarify regulatory language and correct various clerical errors. They also incorporate changes applicable to EGUs and non-EGUs, made in accordance with EPA's Phase II Rule, including the definitions of “EGU” and “non-EGU” as applied to co-generation units. IV. Statutory and Executive Order Reviews Executive Order 12866: Regulatory Planning and Review Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use Because it is not a “significant regulatory action” under Executive Order 12866 or a “significant regulatory action,” this action is also not subject to Executive Order 13211, Actions Concerning Regulations That Significantly “Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). Regulatory Flexibility Act This action merely approves state law as meeting federal requirements and imposes no additional requirements beyond those imposed by state law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Unfunded Mandates Reform Act Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4). Executive Order 13175: Consultation and Coordination With Indian Tribal Governments This rule also does not have tribal implications because it will not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). Executive Order 13132: Federalism This action also does not have Federalism implications because it does not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a state rule implementing a federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the Clean Air Act (CAA). Executive Order 13045: Protection of Children From Environmental Health and Safety Risks This rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it is not economically significant. National Technology Transfer Advancement Act In reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. In this context, in the absence of a prior existing requirement for the state to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the CAA. Thus, the requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. Paperwork Reduction Act This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). Congressional Review Act The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. 804(2). Under Section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by November 30, 2007. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. ( *See* Section 307(b)(2).) List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements. Dated: September 17, 2007. Walter W. Kovalick, Jr., Acting Regional Administrator, Region 5. For the reasons stated in the preamble, part 52, chapter I, of title 40 of the Code of Federal Regulations is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Subpart P—Indiana 2. Section 52.770 is amended by adding paragraph (c)(184) to read as follows: § 52.770 Identification of plan.

(c)* * *

(184)Indiana Department of Environmental Management submitted amendments to the State Implementation Plan to control nitrogen oxide emissions from internal combustion engines in 326 Indiana Administrative Code

(IAC)10-5 and corrections to 326 IAC 10-3-3 and 326 IAC 10-4 on March 8, 2006.

(i)*Incorporation by reference.* The following sections of the Indiana Administrative Code

(IAC)are incorporated by reference.

(A)Title 326: Air Pollution Control Board, Article 10: Nitrogen Oxides Rules, Rule 3: Nitrogen Oxide Reduction Program for Specific Source Categories, Section 3: Emissions limits. Filed with the Secretary of State on January 27, 2006, effective February 26, 2006. Published in the Indiana Register on March 1, 2006 (29 IR 1876).

(B)Title 326: Air Pollution Control Board, Article 10: Nitrogen Oxides Rules, Rule 4: Nitrogen Oxides Budget Trading Program, Section 1: Applicability, Section 2: Definitions, Section 3: Retired unit exemption, Section 9: NO X allowance allocations, Section 13: Individual opt-ins, Section 14: NO X allowance banking, and Section 15: Compliance supplement pool. Filed with the Secretary of State on January 27, 2006, effective February 26, 2006. Published in the Indiana Register on March 1, 2006 (29 IR 1877).

(C)Title 326: Air Pollution Control Board, Article 10: Nitrogen Oxides Rules, Rule 5: Nitrogen Oxide Reduction Program for Internal Combustion Engines (ICE). Filed with the Secretary of State on January 27, 2006, effective February 26, 2006. Published in the Indiana Register on March 1, 2006 (29 IR 1899). [FR Doc. E7-19217 Filed 9-28-07; 8:45 am] BILLING CODE 6560-50-P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 52 and 97 [EPA-R02-OAR-2007-0233; FRL-8472-5] Approval and Promulgation of Implementation Plans; New Jersey: Clean Air Interstate Rule AGENCY: Environmental Protection Agency (EPA). ACTION: Final rule. SUMMARY: EPA is taking final action to approve a revision to New Jersey's State Implementation Plan

(SIP)submitted on February 6, 2007, and subsequently revised on July 9, 2007. This revision incorporates provisions related to the implementation of EPA's Clean Air Interstate Rule (CAIR), and the CAIR Federal Implementation Plan (CAIR FIP) concerning SO 2 , NO X annual, NO X ozone season emissions for the State of New Jersey. The SIP revision that EPA is fully approving is an “abbreviated” SIP revision that addresses the methodology to be used to allocate annual and ozone season NO X allowances under the CAIR FIPs. The SIP revision that EPA is approving will also satisfy New Jersey's 110(a)(2)(D)(i) obligations to submit a SIP revision that contains adequate provisions to prohibit air emissions from adversely affecting another state's air quality through interstate transport. EPA is not making any changes to the CAIR FIP, but is amending the appropriate appendices in the CAIR FIP trading rules simply to note approval of New Jersey's SIP revision. DATES: This rule is effective on October 31, 2007. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA-R02-OAR-2007-0233. All documents in the docket are available online at *http://www.regulations.gov* . Although listed in the index, some information is not publicly available, i.e., Confidential Business Information

(CBI)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 *http://www.regulations.gov* or in hard copy at the Air Programs Branch, Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th Floor, New York, New York 10007-1866. FOR FURTHER INFORMATION CONTACT: For information, contact Mr. Kenneth Fradkin, Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th Floor, New York, New York 10007-1866, phone number

(212)637-3702 or by e-mail at: *fradkin.kenneth@epa.gov* . SUPPLEMENTARY INFORMATION: Table of Contents I. What Action Is EPA Taking? II. What Is the Regulatory History of CAIR and the CAIR FIPs? III. What Are the General Requirements of CAIR and the CAIR FIPs? IV. What Is the Result of EPA's Evaluation of New Jersey's CAIR SIP Submittal? A. State Budgets for Allowance Allocations B. CAIR Cap-and-Trade Programs C. Applicability Provisions for Non-EGUs NO X SIP Call Sources D. NO X Allowance Allocations E. Allocation of NO X Allowances From the Compliance Supplement Pool F. Individual Opt-in Units G. Satisfying Section 110(a)(2)(D)(i) of the Clean Air Act V. Final Action VI. Statutory and Executive Order Reviews I. What Action Is EPA Taking? CAIR SIP and 110(a)(2)(D)(i) Approval EPA is taking final action to approve a revision to New Jersey's SIP, submitted on February 6, 2007, as revised. In response to EPA's comments provided during New Jersey's rulemaking and in the proposed approval, New Jersey adopted new rules regarding the Clean Air Interstate Rule

(CAIR)NO X Trading Program on June 19, 2007. The State submitted these rules to EPA on July 9, 2007. The adoption was published in the New Jersey Register on July 16, 2007 (39 N.J.R. 2637(a)). The SIP revision modifies the application of certain provisions of the CAIR FIPs that require emission reductions of SO 2 , NO X annual, and NO X ozone season emissions. This less comprehensive CAIR SIP is termed an abbreviated SIP. This revision includes a new regulation, N.J.A.C. 7:27-30, Clean Air Interstate Rule

(CAIR)NO X Trading Program. As part of the revision, New Jersey has also adopted N.J.A.C. 7:27-31.23 to provide the date when New Jersey's CAIR NO X Trading Program will replace New Jersey's NO X Budget Trading Program (Subchapter 31). New Jersey has also adopted “7:27A-3.10 Civil administrative penalties for violation of the rules adopted pursuant to the Act.” New Jersey is subject to the CAIR FIPs that implement the CAIR requirements by requiring certain Electric Generating Units

(EGUs)to participate in the EPA-administered Federal CAIR SO 2 , NO X annual, and NO X ozone season cap-and-trade programs. The SIP revision provides a methodology for allocating NO X allowances for the NO X annual, and NO X ozone season trading programs. The CAIR FIPs provide that this methodology, upon approval by EPA, will be used to allocate NO X allowances to sources in New Jersey, instead of the federal allocation methodology otherwise provided in the FIPs. The SIP revision also retires rather than allocates allowances from the NO X annual Compliance Supplement Pool (CSP). EPA has determined that New Jersey's CAIR NO X Trading Program, as finalized in the New Jersey Register on July 16, 2007 ((39 N.J.R. 2637(a)), satisfies the applicable requirements for an abbreviated CAIR SIP revision. Consistent with the flexibility provided in the FIPs, the provisions of New Jersey's CAIR NO X Trading Program will be used to replace or supplement, as appropriate, the corresponding provisions in the CAIR FIPs for New Jersey. EPA will not make any changes to the CAIR FIP, but will amend the appropriate appendices in the CAIR FIP trading rules simply to note approval of the New Jersey CAIR NO X Trading Program. EPA is also approving “N.J.A.C. 7:27-31.23 Replacement of the NO X Budget Program” which establishes a transition date for the replacement of the State's NO X Budget Program (Subchapter 31), beginning with the 2009 control period, with the New Jersey CAIR program. In addition, EPA is also approving a revision to New Jersey's SIP to address the requirements of section 110(a)(2)(D)(i) of the Clean Air Act (CAA). This section of the CAA requires each state to submit a SIP that contains adequate provisions to prohibit sources in the state from emitting any air pollutants in amounts which will:

(1)Contribute significantly to downwind nonattainment of the NAAQS,

(2)interfere with maintenance of the NAAQS,

(3)interfere with provisions to prevent significant deterioration of air quality, and

(4)interfere with efforts to protect visibility. On July 3, 2007, EPA proposed full approval of New Jersey's SIP revision provided that New Jersey's final rule was consistent with the modifications provided in EPA's comments during rulemaking and in its proposal (72 FR 36406). EPA has determined that New Jersey's revised CAIR rule, adopted June 19, 2007, has addressed the concerns, discussed in its comments during rulemaking and in the proposed approval, regarding shutdown units, correction of allocations to new and existing units, and prorating for the New Source/Growth Reserve. The comment period for the EPA proposal closed on August 2, 2007. No comments were received. EPA is finalizing full approval based on the rationale stated in the proposal and in this final action. II. What Is the Regulatory History of the CAIR and the CAIR FIPs? The Clean Air Interstate Rule

(CAIR)was published by EPA on May 12, 2005 (70 FR 25162). In this rule, EPA determined that 28 states and the District of Columbia contribute significantly to nonattainment and interfere with maintenance of the National Ambient Air Quality Standards (NAAQS) for fine particles (PM 2.5 ) and/or 8-hour ozone in downwind states in the eastern part of the country. As a result, EPA required those upwind states to revise their SIPs to include control measures that reduce emissions of SO 2 , which is a precursor to PM 2.5 formation, and/or NO X , which is a precursor to both ozone and PM 2.5 formation. For jurisdictions that contribute significantly to downwind PM 2.5 nonattainment, CAIR sets annual state-wide emission reduction requirements (i.e., budgets) for SO 2 and annual state-wide emission reduction requirements for NO X . Similarly, for jurisdictions that contribute significantly to 8-hour ozone nonattainment, CAIR sets state-wide emission reduction requirements for NO X for the ozone season (May 1st to September 30th). Under CAIR, states may implement these emission budgets by participating in the EPA-administered cap-and-trade programs or by adopting any other control measures. CAIR explains to subject states what must be included in SIPs to address the requirements of section 110(a)(2)(D) of the CAA with regard to interstate transport with respect to the 8-hour ozone and PM 2.5 NAAQS. EPA made national findings, effective May 25, 2005, that the subject states had failed to submit SIPs meeting the requirements of section 110(a)(2)(D). The SIPs were due in July 2000, 3 years after the promulgation of the 8-hour ozone and PM 2.5 NAAQS. These May 25, 2005 findings started a 2-year clock for EPA to promulgate a Federal Implementation Plan

(FIP)to address the requirements of section 110(a)(2)(D). Under CAA section 110(c)(1), EPA may issue a FIP anytime after such findings are made and must do so within two years unless a SIP revision correcting the deficiency is approved by EPA before the FIP is promulgated. On August 17, 2006, EPA issued guidance for SIP submissions states should make to address the requirements of section 110(a)(2)(D)(i) for the 8-hour ozone and PM 2.5 NAAQS. On April 28, 2006, EPA promulgated FIPs for all states covered by CAIR in order to ensure the emissions reductions required by CAIR are achieved on schedule. Each CAIR state is subject to the FIPs until the state fully adopts, and EPA approves, a SIP revision meeting the requirements of CAIR. The CAIR FIPs require certain EGUs to participate in the EPA-administered CAIR SO 2 , NO X annual, and NO X ozone-season model trading programs, as appropriate. The CAIR FIP SO 2 , NO X annual, and NO X ozone season trading programs impose essentially the same requirements as, and are integrated with, the respective CAIR SIP trading programs. The integration of the CAIR FIP and SIP trading programs means that these trading programs will work together to create effectively a single trading program for each regulated pollutant (SO 2 , NO X annual, and NO X ozone season) in all states covered by a CAIR FIP or SIP trading program for that pollutant. The CAIR FIPs also allow states to submit abbreviated SIP revisions that, if approved by EPA, will automatically replace or supplement the corresponding CAIR FIP provisions (e.g., the methodology for allocating NO X allowances to sources in the state), while the CAIR FIP remains in place for all other provisions. On April 28, 2006, EPA published CAIR-related final rules that added the states of Delaware and New Jersey to the list of states subject to CAIR for PM 2.5 . III. What Are the General Requirements of CAIR and the CAIR FIPs? CAIR establishes state-wide emission budgets for SO 2 and NO X and is to be implemented in two phases. The first phase of NO X reductions starts in 2009 and continues through 2014, while the first phase of SO 2 reductions starts in 2010 and continues through 2014. The second phase of reductions for both NO X and SO 2 starts in 2015 and continues thereafter. CAIR requires states to implement the budgets by either:

(1)Requiring EGUs to participate in the EPA-administered cap-and-trade programs, or

(2)adopting other control measures of the State's choosing and demonstrating that such control measures will result in compliance with the applicable State SO 2 and NO X budgets. The May 12, 2005 and April 28, 2006 CAIR rules provide model rules that states must adopt (with certain limited changes, if desired) if they want to participate in the EPA-administered trading programs. With two exceptions, only states that choose to meet the requirements of CAIR through methods that exclusively regulate EGUs are allowed to participate in the EPA-administered trading programs. One exception is for states that adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into the EPA-administered trading programs. The other exception is for states that include all non-EGUs from their NO X SIP Call trading programs in their CAIR NO X ozone season trading programs. IV. What Is the Result of EPA's Evaluation of New Jersey's CAIR SIP Submittal? A. State Budgets for Allowance Allocations The CAIR FIP established the EGU budgets for New Jersey as 12,670 tons for the years 2009-2014 (Phase I) and 10,558 tons for the years 2015 and beyond (Phase II) for NO X annual emissions; 6,654 tons for the years 2009-2014 (Phase I) and 5,545 tons for the years 2015 and beyond (Phase II) for NO X ozone season emissions; and 32,392 tons for the years 2010-2014 (Phase I) and 22,674 tons for the years 2015 and beyond (Phase II) for SO 2 emissions. New Jersey's SIP revision does not affect these budgets, which are the total amount of allowances available for allocation for each year under the EPA-administered cap-and-trade program under the CAIR FIP. In short, the abbreviated SIP revision only affects allocations of allowances under the established budgets. B. CAIR Cap-and-Trade Programs The CAIR NO X annual and ozone-season FIPs both largely mirror the structure of the NO X SIP Call model trading rule in 40 CFR part 96, subparts A through I. While the provisions of the NO X annual and ozone-season FIPs are similar, there are some differences. For example, the NO X annual FIP (but not the NO X ozone season FIP) provides for a Compliance Supplement Pool (CSP), discussed below, under which allowances may be awarded for early reductions of NO X annual emissions. As a further example, the NO X ozone season FIP reflects the fact that the CAIR NO X ozone season trading program replaces the NO X SIP Call trading program for EGUs after the 2008 ozone season and is coordinated with the NO X SIP Call program. States also have the option of continuing to meet their NO X SIP Call non-EGU reduction obligations by participating in the CAIR NO X ozone season trading program and including all their NO X SIP Call trading sources in that program. In addition, the NO X ozone season FIP provides incentives for early emissions reductions by allowing banked, pre-2009 NO X SIP Call allowances to be used for compliance in the CAIR NO X ozone-season trading program. The provisions of the CAIR SO 2 FIP are also similar to the provisions of the NO X annual and ozone season FIPs. However, the SO 2 FIP is coordinated with the ongoing Acid Rain SO 2 cap-and-trade program under CAA title IV. The SO 2 FIP uses the title IV allowances for compliance, with each allowance allocated for 2010-2014 authorizing only 0.50 ton of emissions and each allowance allocated for 2015 and thereafter authorizing only 0.35 ton of emissions. Banked title IV allowances allocated for years before 2010 can be used at any time in the CAIR SO 2 cap-and-trade program, with each such allowance authorizing 1 ton of emissions. Title IV allowances are to be freely transferable among sources covered by the Acid Rain Program and sources covered by the CAIR SO 2 cap-and-trade program. EPA used the CAIR model trading rules as the basis for the trading programs in the CAIR FIPs. The CAIR FIP trading rules are virtually identical to the CAIR model trading rules, with changes made to account for federal rather than state implementation. The CAIR model SO 2 , NO X annual, and NO X ozone season trading rules and the respective CAIR FIP trading rules are designed to work together as integrated SO 2 , NO X annual, and NO X ozone season trading programs. New Jersey is subject to the CAIR FIPs for ozone and PM 2.5 and the CAIR FIP trading programs for SO 2 , NO X annual, and NO X ozone season apply to sources in New Jersey. Consistent with the flexibility it gives to states, the CAIR FIPs provide that states may submit abbreviated SIP revisions that will replace or supplement, as appropriate, certain provisions of the CAIR FIP trading programs. The submission by New Jersey on February 6, 2007, as subsequently revised and submitted on July 9, 2007, is such an abbreviated SIP revision. C. Applicability Provisions for non-EGU NO X SIP Call Sources States have the option of bringing in, for the CAIR NO X ozone season program only, those units in a state's NO X SIP Call trading program that are not EGUs as defined under CAIR. EPA advises states exercising this option to use provisions for applicability that are substantively identical to the provisions in 40 CFR 96.304 and add the applicability provisions in the State's NO X SIP Call trading rule for non-EGUs to the applicability provisions in 40 CFR 96.304 in order to include in the CAIR NO X ozone season trading program all units required to be in the State's NO X SIP Call trading program that are not already included under 40 CFR 96.304. Under this option, the CAIR NO X ozone season program must cover all large industrial boilers and combustion turbines, as well as any small EGUs (i.e. units serving a generator with a nameplate capacity of 25 MWe or less), that the State currently requires to be in the NO X SIP Call trading program. Consistent with the flexibility given to states in the CAIR FIP, New Jersey has chosen not to expand the applicability provisions of the CAIR NO X ozone season trading program to include all non-EGUs in the State's NO X SIP Call trading program. New Jersey's non-EGUs and small electric generating units

(EGUs)will be subject to Reasonable Available Control Technology

(RACT)or state of the art rules. D. NO X Allowance Allocations Under the NO X allowance allocation methodology in the CAIR model trading rules and in the CAIR FIPs, NO X annual and NO X ozone season allowances are allocated to units that have operated at least for five years, based on heat input data from a three-year period that are adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for oil, and 0.4 for other fuels. The CAIR model trading rules and the CAIR FIPs also provide a new unit set-aside from which units without five years of operation are allocated allowances based on the units' prior year emissions. The CAIR FIPs provide states the flexibility to establish a different NO X allowance allocation methodology that will be used to allocate allowances to sources in the states if certain requirements are met concerning the timing of submission of units' allocations to the Administrator for recordation and the total amount of allowances allocated for each control period. New Jersey has chosen to replace the provisions of the CAIR NO X annual and ozone season FIP concerning allowance allocations with its own methodology. New Jersey will distribute NO X annual and ozone season allowances to CAIR units based upon historical electrical and thermal output. Allowances will be distributed and not auctioned. The distribution of allowances will be based on the previous three years of data. New Jersey has established set-asides for new source/growth (“New Source/Growth Reserve”), and energy efficiency and renewable energy programs or techniques (“Incentive Reserve”). Each year, New Jersey is allocating ten percent of the State's CAIR NO X annual and CAIR NO X ozone season budgets to the New Source/Growth Reserve, and five percent of the State's CAIR NO X annual and CAIR NO X ozone season budgets to the Incentive Reserve. Additional details regarding New Jersey's NO X allocation methodology can be found in EPA's proposal to approve New Jersey's SIP revision, which was published in the **Federal Register** on July 3, 2007 (72 FR 36406). In the proposal published on July 3, 2007, EPA stated that several provisions of New Jersey's NO X allocation proposal were inconsistent with the NO X allocation timing requirements of the abbreviated SIP revision requirements and the CAIR FIP trading programs. EPA further stated that full approval of New Jersey's proposed regulation was contingent upon New Jersey modifying their proposed rule in order to clarify that EPA's NO X allocation timing requirements will be met under New Jersey's program. Sections 51.123(p)(1)(ii)(B) and (ee)(2)(ii)(C) of CAIR require that the State determines and notifies the Administrator of each existing unit's allowance allocation at least 3 years in advance of the CAIR FIP NO X annual and ozone season programs. Sections 51.123(p)(1)(ii)(C) and (ee)(2)(ii)(D) require that the state determines, and notifies the Administrator of each new unit's allowances by October 31 (for the CAIR NO X annual trading program) or July 31 (for the CAIR NO X ozone season trading program) of the year for which the allowances are being allocated. As we indicated in our July 3, 2007 proposal, New Jersey's proposed regulation did not meet NO X allocation timing requirements for existing or new units that must surrender and transfer allowances to EPA for retirement for the year in which the unit shuts down and any year thereafter. As written in New Jersey's proposed rule, the owner or operator of an existing unit that is required to surrender allowances will no longer be able to buy or sell allowances, or undertake other allowance market activities, that were provided three years in advance and already recorded into their compliance account. EPA indicated that it was not clear from New Jersey's proposal what the timing would be for surrendering the allowances, and whether the State intended for recorded allowances to be surrendered. In response to EPA's comment, New Jersey modified its rule concerning allocations for shutdown units. EPA has determined that the modification is acceptable because it terminates future allocations once a unit is permanently shut down, but does not take back any allowances that were previously allocated to the unit. EPA also indicated, in our July 3, 2007 proposal, that New Jersey's regulation as proposed did not meet NO X allocation timing requirements with regard to the provision in New Jersey's rule that provides the state may determine that existing (or new) units for current or past years had been erroneously allocated too many or too few allowances based on inaccurate data or projections. As written in the proposed rule, it was unclear how long after determination and recordation of an allocation New Jersey may determine that the allocation was incorrect. In response to EPA's comment, New Jersey modified its rule concerning the correction of allocations for existing and new units. EPA has determined that the modification is acceptable because it allows corrections only before, and not after, the EPA Administrator records the allocations. This removes the potential for taking back units' allocations after recordation. EPA also indicated in our July 3, 2007 proposal that New Jersey's proposed rule also provided that if the sum of new unit allocations (determined by October 31 or July 31 of the year for which allocations are made) and the existing unit growth allocations (determined by the end of the year for which allocations are made) exceeded the total amount of the New Source/Growth Reserve for the year, all the allocations from the reserve will be reduced on a pro-rata basis so that the total amount allocated to these new and existing units does not exceed the reserve. We stated that New Jersey should clarify that the allocation-proration provisions will be applied to new unit allocations before the October 31 deadline for NO X annual submission, or before the July 31 deadline for the NO X ozone season submission of new unit allocations to EPA and applied to the existing unit growth allocations before the March 1 deadline for submission of those allocations to EPA. New Jersey modified the proposed rule concerning allocations from the New Source/Growth Reserve so that the application of pro-rata distribution of such allocations is performed separately for new units and for existing units with growth and the process for new units is performed before new-unit allowances are allocated. EPA has determined that the modification is acceptable because it removes the potential for take back of new units' allocations. EPA is taking final action to approve New Jersey's methodology for allocating NO X allowances for the NO X annual and NO X ozone season trading programs because the methodology is consistent with the flexibility that CAIR provides states with regard to allocation methodologies. E. Allocation of NO X Allowances From the Compliance Supplement Pool The Compliance Supplement Pool

(CSP)provides an incentive for early reductions in NO X annual emissions. The CSP consists of 200,000 CAIR NO X annual allowances of vintage 2009 for the entire CAIR region, and a state's share of the CSP is based upon the state's share of the projected emission reductions under CAIR. The CAIR NO X annual FIP establishes specific methodologies for allocations of CSP allowances. States may choose an allowed, alternative CSP allocation methodology to be used to allocate CSP allowances to sources in those states. EPA had allocated to New Jersey allowances equal to 660 tons of NO X annual emissions for possible distribution. New Jersey has chosen to modify the provisions of the CAIR NO X annual FIP concerning the allocation of allowances from the CSP. New Jersey has chosen to retire all of the CSP allowances budgeted for New Jersey by not allocating them to CAIR units. EPA is taking final action to approve New Jersey's retirement of the CSP allowances budgeted to New Jersey since this is consistent with the flexibility provided to states under CAIR. F. Individual Opt-In Units The opt-in provisions allow for certain non-EGUs (i.e., boilers, combustion turbines, and other stationary fossil-fuel-fired devices) that do not meet the applicability criteria for a CAIR trading program to participate voluntarily in (i.e., opt into) the CAIR trading program. A non-EGU may opt into one or more of the CAIR trading programs. In order to qualify to opt into a CAIR trading program, a unit must vent all emissions through a stack and be able to meet monitoring, recordkeeping, and recording requirements of 40 CFR part 75. The owners and operators seeking to opt a unit into a CAIR trading program must apply for a CAIR opt-in permit. If the unit is issued a CAIR opt-in permit, the unit becomes a CAIR unit, is allocated allowances, and must meet the same allowance-holding and emissions monitoring and reporting requirements as other units subject to the CAIR trading program. The opt-in provisions provide for two methodologies for allocating allowances for opt-in units, one methodology that applies to opt-in units in general and a second methodology that allocates allowances only to opt-in units that the owners and operators intend to repower before January 1, 2015. States have several options concerning the opt-in provisions. The rules for each of the CAIR FIP trading programs include opt-in provisions that are essentially the same as those in the respective CAIR SIP model rules, except that the CAIR FIP opt-in provisions become effective in a state only if the state's abbreviated SIP revision adopts the opt-in provisions. The state may adopt the opt-in provisions entirely or may adopt them but exclude one of the allowance allocation methodologies. The state also has the option of not adopting any opt-in provisions in the abbreviated SIP revision and thereby providing for the CAIR FIP trading program to be implemented in the State without the ability for units to opt into the program. New Jersey has chosen not to allow non-EGUs meeting the FIP specified requirements to participate in the CAIR NO X annual trading program, the CAIR NO X ozone season trading program, and the SO 2 trading program. G. Satisfying Section 110(a)(2)(D)(i) of the Clean Air Act Section 110(a)(2)(D)(i) of the CAA requires each state to submit a SIP that prohibits emissions that could adversely affect another state. The SIP must prevent sources in the state from emitting pollutants in amounts that will:

(1)Contribute significantly to downwind nonattainment of the NAAQS,

(2)interfere with maintenance of the NAAQS,

(3)interfere with provisions to prevent significant deterioration of air quality, and

(4)interfere with efforts to protect visibility. EPA issued guidance on August 15, 2006, relating to SIP submissions to meet the requirements of section 110(a)(2)(D)(i). As discussed below, New Jersey's SIP revision with respect to the statutory requirements is consistent with the guidance. New Jersey addresses the first two of these four elements by complying with the requirements of CAIR. New Jersey satisfies these requirements either by relying on the existing CAIR FIPs, or through approval of this SIP revision. The third element New Jersey addresses is prevention of significant deterioration (PSD). In accordance with the guidance issued on August 15, 2006, states may continue to rely on their existing Nonattainment New Source Review

(NNSR)and PSD permitting programs to prevent significant deterioration of air quality within their own boundaries and in adjacent states. For 8-hour ozone, the state has met the obligation by confirming that the existing ozone Nonattainment New Source Review

(NNSR)permitting program remains in effect and applies to the 8-hour ozone NAAQS for the State's major stationary sources. New Jersey has noted that the State's current NNSR program retains the lower applicability levels and higher off-set ratios previously required under the states 1-hour ozone classification. EPA anticipates that the state will adopt a final attainment demonstration for the 8-hour ozone NAAQS by September 8, 2007. For PM 2.5 , the State has confirmed that the state's NNSR and PSD programs are being implemented in accordance with EPA's interim guidance calling for the use of PM 10 as a surrogate for PM 2.5 . New Jersey commits to revising its NNSR program and adopting a PSD program after EPA finalizes its PM 2.5 implementation rule. It should be noted that the entire State of New Jersey is nonattainment for 8-hour ozone, necessitating only a NNSR program (not PSD) for ozone. For PM 2.5 the State has both attainment and non-attainment areas, necessitating both NNSR and PSD programs for PM 2.5 . Consistent with EPA's August 15, 2006 guidance, at this time, it is impossible for New Jersey to accurately determine whether there is interference with measures in another state's SIP designed to protect visibility, which is the fourth element that was addressed. New Jersey has indicated that it will address the visibility protection requirements once the regional haze SIP is completed and submitted to EPA in December of 2007. EPA is taking final action finding that the SIP revision adequately addresses the required elements of 110(a)(2)(D)(i) with the exception of the requirement to protect visibility. This requirement will be re-evaluated after the regional haze SIP is completed and submitted to EPA in December 2007. V. Final Action EPA is taking final action to fully approve New Jersey's abbreviated SIP revision submitted on February 6, 2007, and subsequently revised on July 9, 2007. New Jersey is covered by the CAIR FIPs, which require participation in the EPA-administered CAIR FIP cap-and-trade for SO 2 , NO X annual, NO X ozone season emissions. Under this abbreviated SIP revision and consistent with the flexibility given to states in the FIPs, New Jersey has adopted under N.J.A.C. 7:27-30, the CAIR NO X Trading Program, provisions for allocating allowances under the CAIR FIP NO X annual and ozone season trading programs. In addition, New Jersey has also adopted at N.J.A.C. 7:27-31.23 the date when New Jersey's CAIR NO X Trading Program will replace New Jersey's NO X Budget Trading Program (Subchapter 31). New Jersey has also adopted in the abbreviated SIP revision provisions that retire CSP allowances. As provided for in the CAIR FIPs, New Jersey provisions for allocating NO X annual and ozone season allowances and for retiring CSP allowances, will replace or supplement the corresponding provisions of the CAIR FIPs in New Jersey. EPA has determined that New Jersey's abbreviated CAIR SIP revision meets the applicable requirements in 40 CFR 51.123(p) and

(ee)with regard to NO X annual and NO X ozone season emissions. EPA is not making changes to the CAIR FIP, but is amending the appropriate appendices of 40 CFR part 97 in the CAIR FIP trading rules simply to note approval of New Jersey's SIP revision. EPA is also taking final action regarding the required elements of 110(a)(2)(D)(i). EPA has determined that, with the exception of the protection of visibility requirement, that the SIP revision adequately addresses the requirements of 110(a)(2)(D)(i). This requirement will be re-evaluated after the regional haze SIP is completed and submitted to EPA in December 2007. VI. Statutory and Executive Order Reviews Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This action merely approves State law as meeting Federal requirements and would impose no additional requirements beyond those imposed by State law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 *et seq.* ). Because this rule approves pre-existing requirements under State law and does not impose any additional enforceable duty beyond that required by State law, it does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4). This rule also does not have tribal implications because it will not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a State rule implementing a Federal standard, and does not alter the relationship or the distribution of power and responsibilities established in the CAA. This rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it approves a State rule implementing a Federal standard. In reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the CAA. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 *et seq.* ). The Congressional Review Act, 5 U.S.C. 801 *et seq.* , as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the **Federal Register** . A major rule cannot take effect until 60 days after it is published in the **Federal Register** . This action is not a “major rule” as defined by 5 U.S.C. section 804(2). Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by November 30, 2007. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).) List of Subjects 40 CFR Part 52 Environmental protection, Air pollution control, Electric utilities, Incorporation by reference, Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur dioxide. 40 CFR Part 97 Environmental protection, Air pollution control, Administrative practice and procedure, Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur dioxide. Dated: September 18, 2007. Alan J. Steinberg, Regional Administrator, Region 2. 40 CFR parts 52 and 97 are amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: Authority: 42 U.S.C. 7401 *et seq.* Subpart FF—New Jersey 2. Section 52.1570 is amended by adding new paragraph (c)(83) to read as follows: § 52.1570 Identification of plans.

(c)* * *

(83)Revisions to the State Implementation Plan and submitted on February 6, 2007 as proposed, and subsequently adopted and submitted on July 9, 2007 by the State of New Jersey Department of Environmental Protection (NJDEP) that establishes rules for the allowance allocation of oxides of nitrogen (NO X ) for the annual and ozone season Clean Air Interstate Rule

(CAIR)NO X Cap and Trade Programs. The submission also establishes a date when the CAIR NO X Trading Programs will replace the State's NO X Budget Program, and satisfies New Jersey's 110(a)(2)(D)(i) obligations to submit a SIP revision that contains adequate provisions to prohibit air emissions from adversely affecting another state's air quality through interstate transport.

(i)Incorporation by reference:

(A)Title 7, Chapter 27, Subchapter 30 of the New Jersey Administrative Code entitled “Clean Air Interstate Rule

(CAIR)NO X Trading Program,” effective July 16, 2007 and Title 7, Chapter 27, Subchapter 31, Section 23 of the New Jersey Administrative Code entitled “NO X Budget Program,” effective July 16, 2007.

(ii)Additional information:

(A)February 2, 2007 letter from Commissioner Lisa P. Jackson, NJDEP, to Alan J. Steinberg, EPA, submitting proposed SIP revision, and request for parallel processing.

(B)June 26, 2007 letter from Commissioner Lisa P. Jackson, NJDEP, to Alan J. Steinberg, EPA, submitting SIP revision.

(C)December 29, 2006 letter from Commissioner Lisa P. Jackson, NJDEP, to Alan J. Steinberg, EPA, indicating how New Jersey has addressed the required elements of 110(a)(2)(D)(i). 3. In 52.1605, the table is amended by adding an entry for Subchapter 30 and revising the entry for Subchapter 31 under the heading “Title 7, Chapter 27” to read as follows: § 52.1605 EPA-approved New Jersey regulations. State regulation State effective date EPA approved date Comments * * * * * * * Title 7, Chapter 27 * * * * * * * Subchapter 30, “Clean Air Interstate Rule

(CAIR)NO X Trading Program.” July 16, 2007 October 1, 2007 [Insert FR page citation] Subchapter 31, “NO X Budget Program.” July 16, 2007 October 1, 2007 [Insert FR page citation] * * * * * * * PART 97—[AMENDED] 1. The authority citation for part 97 continues to read as follows: Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 7651, *et seq.* 2. Appendix A to Subpart EE is amended by adding the entry for “New Jersey” in alphabetical order under paragraphs 1. and 2. to read as follows: Appendix A to Subpart EE of Part 97—States With Approved State Implementation Plan Revisions Concerning Allocations 1. * * * New Jersey 2. * * * New Jersey 3. Appendix A to Subpart EEEE is amended by adding the entry for “New Jersey” in alphabetical order under the introductory text to read as follows: Appendix A to Subpart EEEE of Part 97—States With Approved State Implementation Plan Revisions Concerning Allocations New Jersey [FR Doc. E7-19216 Filed 9-28-07; 8:45 am] BILLING CODE 6560-50-P DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services 42 CFR Part 418 [CMS-1539-CN] RIN 0938-AO72 Medicare Program; Hospice Wage Index for Fiscal Year 2008 Correction AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS. ACTION: Correction of final rule. SUMMARY: This document corrects typographical errors that appeared in the final rule published in the August 31, 2007 **Federal Register** entitled “Medicare Program; Hospice Wage Index for Fiscal Year 2008.” DATES: *Effective Date:* These corrections are effective on October 1, 2007. FOR FURTHER INFORMATION CONTACT: Terri Deutsch,

(410)786-9462. SUPPLEMENTARY INFORMATION: I. Background In FR Doc. 07-4292 of August 31, 2007 (72 FR 50214), there were errors that are identified and corrected in “Section III Correction of Errors”. The provisions in this correction notice are effective as if they had been included in the August 31, 2007 final rule. Accordingly, these corrections are effective October 1, 2007. II. Summary of Errors Table A of the Addendum lists the fiscal year

(FY)2008 urban wage index values for hospice providers by Core-Based Statistical Areas

(CBSA)designations. To ensure that hospice providers are able to identify their FY 2008 wage index value, table A contains the CBSA codes, CBSA county name (urban area), and CBSA wage index for urban geographic areas. However, for CBSA codes 29940 and 44140, on pages 50238 and 50245, respectively, we inaccurately specified the urban areas. These errors do not represent a change in policy. In addition, these changes are consistent with the proposed rule (72 FR 24146 and 24162) and how the urban areas have been defined in the past. III. Correction of Errors FR Doc. 07-4292 of August 31, 2007 (72 FR 50214), make the following corrections: 1. On page 50238, in “TABLE A—HOSPICE WAGE INDEX FOR URBAN AREAS BY CBSA,” the urban area for CBSA code 29940 is corrected to read as follows: CBSA code Urban area (constituent counties or county equivalents) 2 Wage index 1 29940 Lawrence, KS, Douglas, KS 0.8923 2. On page 50245, in “TABLE A—HOSPICE WAGE INDEX FOR URBAN AREAS BY CBSA,” the urban area for CBSA code 44140 is corrected to read as follows: CBSA code Urban area (constituent counties or county equivalents) 2 Wage index 1 44140 Springfield, MA, Franklin, MA, Hampden, MA, Hampshire, MA 1.0751 IV. Waiver of Proposed Rulemaking We ordinarily publish a notice of proposed rulemaking in the **Federal Register** to provide a period for public comment before the provisions of a rule take effect, in accordance with section 553(b) of the Administrative Procedure Act

(APA)(5 U.S.C. 553(b)). However, we can waive this notice and comment procedure if the Secretary finds, for good cause, that the notice and comment process is impracticable, unnecessary, or contrary to the public interest, and incorporates a statement of the finding and the reasons therefore in the notice. Section 553(d) of the APA ordinarily requires a 30-day delay in effective date of final rules after the date of their publication in the **Federal Register** . This 30-day delay in effective date can be waived, however, if an agency finds for good cause that the delay is impracticable, unnecessary, or contrary to the public interest, and the agency incorporates a statement of the findings and its reasons in the rule issued. The revisions contained in this document merely correct typographical errors in Table A of the Addendum. These corrections are necessary to ensure that the final rule accurately reflects the correct urban areas. Since these changes do not represent any policy changes, but are merely technical in nature, we find that public comments on these revisions are unnecessary. Therefore, we find good cause to waive notice and comment procedures and the 30-days delay in effective date. (Catalog of Federal Domestic Assistance Program No. 93.773, Medicare—Hospital Insurance; and Program No. 93.774, Medicare—Supplementary Medical Insurance Program) Dated: September 26, 2007. Ann C. Agnew, Executive Secretary to the Department. [FR Doc. 07-4851 Filed 9-28-07; 8:45 am]

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