{"abstract":"In this document, EPA is proposing to: set national emission standards for hazardous air pollutants (NESHAP) pursuant to section 112 of the Clean Air Act (CAA); alternatively, to revise the regulatory finding that it made on December 20, 2000 (65 FR 79825) pursuant to CAA section 112(n)(1)(A); and if the December 2000 finding is revised as proposed herein, to set standards of performance for mercury (Hg) for new and existing coal-fired electric utility steam generating units (Utility Units), as defined in CAA section 112(a)(8), and for nickel (Ni) for new and existing oil-fired Utility Units pursuant to CAA section 111. The decision concerning which authority to base regulation of Hg and Ni emissions on, CAA section 112 or section 111, will depend upon whether EPA takes final action to revise the December 2000 section 112(n)(1)(A) finding in the manner described herein. In either event, however, EPA intends to require reductions in the emissions of Hg and Ni from coal- and oil-fired Utility Units, respectively. This action is one part of a broader effort to issue a coordinated set of emissions limitations for the power sector. In December 2000, EPA found pursuant to CAA section 112(n)(1)(A) that regulation of coal- and oil-fired Utility Units under CAA section 112 is appropriate and necessary. Today's proposed section 112 ``MACT'' rule would require coal- and oil-fired Utility Units to meet hazardous air pollutant (HAP) emissions standards reflecting the application of the maximum achievable control technology (MACT) determined pursuant to the procedures set forth in CAA section 112(d). The EPA also is co- proposing and soliciting comment on implementing a cap-and-trade program under section 112, similar to that being proposed under section 111 of the CAA. Coal- and oil-fired Utility Units emit a wide variety of metal, organic, and inorganic HAP, depending on the type of fuel that is combusted. The proposed CAA section 112 MACT rule would limit emissions of Hg and Ni. Exposure to Hg and Ni above identified thresholds has been demonstrated to cause a variety of adverse health effects. Today's proposed amendments to CAA section 111 rules would establish a mechanism by which Hg emissions from new and existing coal- fired Utility Units would be capped at specified, nation-wide levels. A first phase cap would become effective in 2010 and a second phase cap in 2018. Facilities would demonstrate compliance with the standard by holding one ``allowance'' for each ounce of Hg emitted in any given year. Allowances would be readily transferrable among all regulated facilities. We believe that such a ``cap and trade'' approach to limiting Hg emissions is the most cost effective way to achieve the reductions in Hg emissions from the power sector that are needed to protect human health and the environment. The added benefit of this cap-and-trade approach is that it dovetails well with the sulfur dioxide (SO2) and nitrogen oxides (NOX) Interstate Air Quality Rule (IAQR) published elsewhere in today's Federal Register. That proposed rule would establish a broadly-applicable cap and trade program that would significantly limit SO2 and NOX emissions from the power sector. The advantage of regulating Hg at the same time and using the same regulatory mechanism as for SO2 and NOX is that significant Hg emissions reductions can and will be achieved by the air pollution controls designed and installed to reduce SO2 and NOX. In other words, significant Hg emissions reductions can be obtained as a ``co-benefit'' of controlling emissions of SO2 and NOX. Thus, the coordinated regulation of Hg, SO2, and NOX allows Hg reductions to be achieved in a cost effective manner. This is consistent with Congress's intent expressed in CAA section 112(n), that EPA would regulate HAP emissions from Utility Units only after taking into account compliance with other CAA programs. This action also proposes to add Performance Specification 12A, ``Specification and Test Methods for Total Vapor Phase Mercury Continuous Emission Monitoring Systems in Stationary Sources'' to 40 CFR part 60, appendix B, and to add one EPA method to 40 CFR part 63, appendix A: Method 324, ``Determination of Vapor Phase Flue Gas Mercury Emissions from Stationary Sources Using Dry Sorbent Trap Sampling.''","action":"Proposed rule.","agencies":[{"raw_name":"ENVIRONMENTAL PROTECTION AGENCY","name":"Environmental Protection Agency","id":145,"url":"https://www.federalregister.gov/agencies/environmental-protection-agency","json_url":"https://www.federalregister.gov/api/v1/agencies/145","parent_id":null,"slug":"environmental-protection-agency"}],"body_html_url":"https://www.federalregister.gov/documents/full_text/html/2004/01/30/04-1539.html","cfr_references":[{"chapter":null,"citation_url":null,"part":60,"title":40},{"chapter":null,"citation_url":null,"part":63,"title":40}],"citation":"69 FR 4652","comment_url":null,"comments_close_on":null,"correction_of":null,"corrections":[],"dates":"Comments. Submit comments on or before March 30, 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