Response to Court Remand on NOX SIP Call and Section 126 Rule

In today's document, EPA is responding to two court decisions directing EPA to reconsider heat input growth rates projected and used in setting nitrogen oxides (NO<INF>X</INF>) emission budgets in two rules designed to reduce interstate transport of ozone and NO<INF>X</INF>, an ozone precursor. After reviewing the heat input growth rates and considering the court decisions and additional comments, EPA has decided to continue to use the heat input growth rates developed in the rules. One rule, the NO<INF>X</INF> State Implementation Plan Call (NO<INF>X</INF> SIP Call) under Section 110 of the Clean Air Act (CAA), set ozone season NO<INF>X</INF> emission budgets based, in part, on emissions reductions calculated for large, fossil fuel-fired electric generating units (EGUs) in 22 States and the District of Columbia. The second rule, issued in response to petitions by northeastern States under Section 126 of the CAA (Section 126 Rule), included ozone season NO<INF>X</INF> emission budgets for EGUs in 12 States and the District of Columbia. The U.S. Court of Appeals for the District of Columbia Circuit (the Court) remanded the heat input growth rates to EPA to either properly justify the growth rates currently used by EPA or to develop and justify new growth rates. After reviewing the matter, EPA believes that the methodology used in developing the heat input growth rates and the resulting growth rates are reasonable based on the information available at the time the rules were issued, confirmed by new information concerning activity to date.