Approval and Promulgation of Air Quality Implementation Plans; District of Columbia; Nitrogen Oxides Budget Trading Program

EPA is taking direct final action on a revision to the District of Columbia (the District) State Implementation Plan (SIP). This revision was submitted in response to EPA's regulation entitled, "Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for Purposes of Reducing Regional Transport of Ozone," otherwise known as the " NO<INF>X</INF> SIP Call." This revision establishes and requires a nitrogen oxides (NO<INF>X</INF>) allowance trading program for large electric generating and industrial units, beginning in 2003. The intended effect of this action is to approve the District's NO<INF>X</INF> Budget Trading Program because it addresses the requirements of the NO<INF>X</INF> SIP Call. On December 26, 2000, EPA made a finding that the District had failed to submit a SIP response to the NO<INF>X</INF> SIP Call, thus starting the 18 and 24 month clocks for the mandatory imposition of sanctions and the obligation for EPA to promulgate a Federal Implementation Plan (FIP) within 24 months. On May 21, 2001, the District of Columbia submitted its NO<INF>X</INF> Budget Trading Program in response to the NO<INF>X</INF> SIP Call. EPA found that SIP submission complete on June 8, 2001, thereby halting the sanctions clocks. Upon approval of this SIP revision, both the sanctions clocks and EPA's FIP obligation are fully terminated.