Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of California; Approval of the Maintenance Plan for the San Francisco Bay Area and Redesignation of the San Francisco Bay Area Ozone Nonattainment Area to Attainment; Approval of Emissions Inventory; Approval of NOINFX RACT Exemption Petition

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[CA-64-1-6504; FRL-5080-5]

Approval and Promulgation of Implementation Plans and Designation

of Areas for Air Quality Planning Purposes; State of California;

Approval of the Maintenance Plan for the San Francisco Bay Area and

Redesignation of the San Francisco Bay Area Ozone Nonattainment Area to

Attainment; Approval of Emissions Inventory; Approval of NOX RACT

Exemption Petition

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking (NPR).

SUMMARY: On November 12, 1993 the California Air Resources Board (CARB)

submitted a maintenance plan and a request to redesignate the San

Francisco Bay Area ozone nonattainment area from nonattainment to

attainment. The ozone nonattainment area includes the following

counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo,

Santa Clara, Solano (part), and Sonoma (part). Under the Clean Air Act,

nonattainment areas may be redesignated to attainment if sufficient

data are available to warrant the redesignation and the area meets the

other Clean Air Act redesignation requirements.

In today's action, EPA is proposing to approve the State of

California's submittal because it meets the maintenance plan and

redesignation requirements. In addition, EPA is proposing to approve

the nitrogen oxides (NOx) Reasonably Available Control Technology

(RACT) exemption petition submitted by the Bay Area Air Quality

Management District (BAAQMD) on April 15, 1994 under section 182(f).

Finally, EPA is proposing to expedite the approval of the annual and

peak season 1990 inventory of actual ozone precursor emissions required

by section 182(a)(1) by parallel processing the emissions inventory.

DATES: Comments must be received by December 27, 1994.

ADDRESSES: Written comments should be addressed to: David P. Howekamp,

Director, Air and Toxics Division (A-1), United States Environmental

Protection Agency, Region IX, 75 Hawthorne Street, San Francisco,

California, 94105.

Copies of the redesignation request, State submittal and the EPA's

technical support document (TSD) are available for public review at the

above address and at the California Air Resources Board, 2020 L Street,

Sacramento, CA 95814.

FOR FURTHER INFORMATION CONTACT: Wallace Woo, Chief, Plans Development

Section (A-2-2), Air Planning Branch, United States Environmental

Protection Agency, Region IX, 75 Hawthorne Street, San Francisco,

California, 94105, (415) 744-1207.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.

II. Evaluation Criteria.

III. Review of State Submittal.

1. Attainment of the Standard

A. The Ozone Standard

B. The BAAQMD Monitoring Record

C. The Alum Rock Monitor

2. Meeting the Applicable Requirements of Section 110 and Part D

A. Section 110 Requirements

B. Part D Requirements

B1. Subpart 1 of Part D--Section 172(c) Plan Provisions

B2. Subpart 1 of Part D--Section 176(c) Conformity Plan

Provisions

B3. Subpart 2 of Part D--Sections 182(a) and 182(b) Requirements

B4. Section 182(f) NOX RACT Exemption Petition

a. Section 182(f) Requirements and Exemption Provisions

b. BAAQMD NOX RACT Exemption Petition

c. Proposed Action

3. Fully Approved SIP Under Section 110(k) of the Act

4. Improvement in Air Quality Due to Permanent and Enforceable

Measures

5. Fully Approved Maintenance Plan Under Section 175A

5A. Emission Inventory--Base Year Inventory

5B. Demonstration of Maintenance--Projected Inventories

5C. Verification of Continued Attainment

5D. Contingency Plan

5E. Subsequent Maintenance Plan Revisions

IV. Potential Impact of California FIP and SIPs

V. Conclusion

I. Background

The Clean Air Act, as amended in 1977 (1977 Act) required areas

that were designated nonattainment based on a failure to meet the ozone

national ambient air quality standard (NAAQS) to develop SIPs with

sufficient control measures to expeditiously attain and maintain the

standard. The San Francisco Bay Area was designated under section 107

of the 1977 Act as nonattainment with respect to the ozone NAAQS on

March 3, 1978 (40 CFR 81.305). In accordance with section 110 of the

1977 Act, the California Air Resources Board (CARB) submitted an ozone

SIP as required by part D of the 1977 Act on July 25, 1979, which EPA

took final action to approve in part, disapprove in part (lack of legal

authority and legislation to implement an inspection and maintenance

(I/M) program) and conditionally approve in part (resource and

extension requirements for transportation control measures with respect

to part D) on March 19, 1982 (47 FR 11866) with respect to the

requirements of section 110 and part D of the 1977 Act. On July 26,

1983, CARB submitted the legislation and implementation schedule for an

I/M program which EPA fully approved on November 25, 1983 (48 FR

53114). This approval rescinded EPA's earlier disapproval of the San

Francisco Bay Area's SIP. On February 4, 1983, CARB submitted a SIP

revision for the San Francisco Bay Area which projected attainment of

the ozone and carbon monoxide NAAQS by 1987. EPA published final

approval of this SIP revision and removed the earlier conditional

approval for the San Francisco Bay Area on December 28, 1983 (48 FR

57130). In its SIP, CARB projected that the San Francisco Bay Area

nonattainment area would attain the ozone standard by 1987. The area

failed to attain the standard.

In a May 26, 1988 letter, EPA issued a finding under section

110(a)(2)(H) of the Clean Air Act (the 1988 SIP-Call) that California's

SIP for the San Francisco Bay Area was substantially inadequate to

attain and maintain the NAAQS for ozone and carbon monoxide. This

finding called on California to begin a two phase process which would

lead to the revision of the plans. The first phase consisted of

updating the emissions inventory, making certain corrections to the

area's existing stationary source rules, and beginning to gather other

pertinent data by August 1988. The second phase consisted of submitting

a revised SIP containing changes necessary to attain the NAAQS. On June

13, 1989, EPA notified California that the deadline for the second

phase of this SIP-Call was September 30, 1991.

On November 15, 1990, the Clean Air Act Amendments of 1990 were

enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C.

7401-7671q. The ozone nonattainment designation for the San Francisco

Bay Area continued by operation of law according to section

107(d)(1)(C)(i) of the Clean Air Act, as amended in 1990; furthermore,

the area was classified by operation of law as moderate for ozone under

section 181(a)(1). See 56 FR 56694 (Nov. 6, 1991), codified at 40 CFR

81.305. In a September 5, 1991 letter, EPA notified California that

earlier deadlines for the SIP-Call were revised to conform with the

requirements of the Clean Air Act Amendments of 1990.

The BAAQMD more recently has collected ambient monitoring data that

show no violations of the ozone NAAQS (See discussion in Section III.1

below). Accordingly, on November 12, 1993 California requested

redesignation of the area to attainment with respect to the ozone NAAQS

and submitted an ozone maintenance SIP for the San Francisco Bay Area.

The three co-lead agencies in the San Francisco Bay Area under section

174 of the Act, the BAAQMD, the Metropolitan Transportation Commission

(MTC), and the Association of Bay Area Governments (ABAG), delegated

authority to the Joint Air Quality Policy Committee (JAQPC), which is

composed of representative board members from the three co-lead

agencies, to hold a joint agency public hearing on the redesignation

request and maintenance plan. On August 18, 1993, JAQPC held a public

hearing on the redesignation request and maintenance plan. The plan and

redesignation request were subsequently adopted by the BAAQMD, MTC and

ABAG on September 1, 1993, September 22, 1993 and September 16, 1993,

respectively, at regularly scheduled agency board meetings.

All SIP submittals to EPA must meet certain minimum administrative

and technical criteria as set forth in 40 CFR part 51, appendix V (the

``completeness'' criteria) in order for the Administrator to review and

take action on the submittal. Section 110(k)(1) of the Act describes

the mandatory timeframe for EPA's determination of completeness and

rulemaking action on plan submissions. In accordance with section

110(k)(1)(B) of the Act, the San Francisco Bay Area's ozone

redesignation request and maintenance plan was deemed complete by

operation of law on May 12, 1994. Thus, the submittal is considered

complete as of November 12, 1993, the date it was submitted.

On July 21, 1994, CARB sent a letter to EPA requesting ``parallel

processing'' of certain revisions to the San Francisco Bay Area's ozone

maintenance plan and SIP, including new contingency measures in the

maintenance plan, a 1990 emissions inventory, emission statement rule,

new source review rule, and amendments to various VOC RACT regulations.

The parallel processing request contained draft copies of the SIP

revisions that the BAAQMD will adopt this year. The parallel processing

provision of 40 CFR part 51, appendix V allows EPA to propose action on

the draft revisions prior to submission of the locally adopted SIP

revision by the State. At the time of final EPA action, the complete

revisions must be submitted to EPA by the State.

II. Evaluation Criteria

The 1990 Amendments revised section 107(d)(1)(E) to provide five

specific requirements that an area must meet in order to be

redesignated from nonattainment to attainment: (1) The area must have

attained the applicable NAAQS; (2) the area has met all relevant

requirements under section 110 and part D of the Act; (3) the area has

a fully approved SIP under section 110(k) of the Act; (4) the air

quality improvement must be permanent and enforceable; and, (5) the

area must have a fully approved maintenance plan pursuant to section

175A of the Act. Section 107(d)(3)(D) allows a Governor to initiate the

redesignation process for an area to apply for attainment status.

III. Review of State Submittal

The California redesignation request for the San Francisco Bay Area

meets the five requirements of section 107(d)(3)(E), noted above.

Following is a brief description of how the State has fulfilled each of

these requirements. EPA's technical support document (TSD) contains a

more detailed analysis of the submittal with respect to certain of

these evaluation criteria.

1. Attainment of the Ozone NAAQS

A. The Ozone Standard

Attainment of the ozone NAAQS is determined based on the expected

number of exceedances in a calendar year. The method for determining

attainment of the ozone NAAQS is contained in 40 CFR 50.9 and appendix

H to that section. The simplest method by which expected exceedances

are calculated is by averaging actual exceedances at each monitoring

site over a three year period. An area is in attainment of the standard

if this average results in expected exceedances for each monitoring

site of 1.0 or less per calendar year. When a valid daily maximum

hourly average value is not available for each required monitoring day

during the year, these missing days must be accounted for when

estimating exceedances for the year. Appendix H provides the formula

used to estimate the expected number of exceedances for each year.

B. The BAAQMD Monitoring Data

The State of California's request is based on an analysis of

quality-assured ozone air quality data which is relevant to both the

maintenance plan and to the redesignation request. This data comes from

the BAAQMD State and Local Air Monitoring Station (SLAMS) network which

is comprised of 23 monitoring stations. The request is based on ambient

air ozone monitoring data for calendar years 1990 through 1992. This

data clearly shows an expected exceedance rate for the ozone standard

of less than 1.0 per year for 22 of the 23 monitors, including each of

the monitors on which the nonattainment designation was based. The

exception is the Alum Rock monitor, discussed below, which is a

monitoring site that was established during the 1992 ozone season. As

described below, the Alum Rock monitoring site recorded one exceedance

of the ozone NAAQS in 1992, but EPA believes that due to the

circumstances of the timing of the establishment of the site, the best

estimate of the expected exceedance rate for this monitoring site leads

to the conclusion that the San Francisco Bay Area achieved the ozone

NAAQS during the 1990-1992 period.

C. The Alum Rock Monitor

The original Alum Rock monitoring site was located at a fire

station in the northeast portion of San Jose. The BAAQMD lost its lease

to this monitoring site in October 1990. Prior to its forced closure,

the site had not recorded any exceedances of the standard since 1987. A

new Alum Rock monitoring location was established in August 1992. This

monitor recorded an exceedance of the ozone NAAQS on September 26,

1992. The actual monitored value was 0.125 ppm, the lowest possible

measured value which would be considered an exceedance of the ozone

NAAQS.

Because the site was operated for only five months during 1992,

there is a large gap in data for the new site for 1992. Appendix H

contains a formula for estimating the number of exceedances for a year

when there is missing data. Normally, for an established site with two

previous years of monitoring data, this number would be added to the

number of exceedances for the two previous years and averaged to yield

an expected exceedance per year. However, because the new site was

established at a nearby but different location, it must be considered

to be a different site. For this reason, the estimated exceedances for

1992 cannot be averaged over the three year period from 1990 through

1992. Therefore, while an expected annual exceedance rate can be

calculated for the Alum Rock site, the lack of three complete years of

data introduces uncertainties into the calculation using the formula

contained in appendix H.

Appendix H does not explicitly address the situation where a new

site starts up and collects data for only a portion of the calendar

year. However, this situation has been addressed in an EPA memorandum,

``Ozone and Carbon Monoxide Design Value Calculations,'' William

Laxton, Director, Technical Support Division, OAQPS, June 18, 1990

(Laxton memo). The memo recognizes the disincentive created by applying

the estimated exceedance calculation for missing data to new sites. The

missing data penalty created by the calculation is designed to

encourage prompt repair or replacement of monitors, rather than to

discourage air pollution control agencies from installing new

monitoring sites in excess of the number required by 40 CFR part 58.

For this reason, the Laxton memo essentially allows an agency which

installs a new monitoring site to base the estimated exceedance

calculation for the initial year on the portion of the year following

start-up of the monitor. Based on the underlying reasoning of the

Laxton memo and the fact that there were no exceedances at any of the

22 established monitoring sites during June, July and August of 1992,

EPA calculated expected exceedances for the new Alum Rock site using

data from August 24, 1992, the date on which the new Alum Rock

monitoring site was established, through the end of December 1992. That

calculation results in an estimated expected exceedance calculation of

1.0 exceedances for 1992. EPA believes that, in light of the

uncertainties attendant to the lack of three full years of data from

the Alum Rock monitor, this calculation represents the ``best

estimate'' of the expected exceedance rate for the Alum Rock monitor in

1992 and leads to the conclusion that, in all likelihood, the San

Francisco Bay Area achieved attainment during the 1990-1992 period. The

lack of any monitored exceedances at any of the other monitors in the

San Francisco Bay Area's extensive SLAMs network during the June-August

1992 period provides additional support for EPA's belief that this

calculation represents the best estimate of expected exceedances at the

Alum Rock site.

EPA notes that monitoring at Alum Rock following the end of 1992

continues to show attainment. This provides further support for the

conclusion that the best estimate of expected exceedances at the Alum

Rock site for 1992 is 1.0.

D. Demonstration of Attainment

In sum, while some uncertainty attaches to the monitoring data from

the Alum Rock site established in August 1992, EPA believes that the

data submitted by the BAAQMD provides an adequate demonstration that

the San Francisco Bay Area attained the ozone NAAQS during the 1990-

1992 period. Moreover, monitoring data from all sites in the Bay Area

SLAMs network continues to show attainment in 1993 and so far in 1994.

In order for EPA to take final action approving the San Francisco

Bay Area redesignation request, monitoring data from all 23 sites in

the BAAQMD's SLAMs network must continue to demonstrate attainment up

to the time of final action. Thus, EPA proposes to approve the San

Francisco Bay Area redesignation only if the monitoring data from the

entire SLAMs network continues to demonstrate attainment. If the

monitoring data records a violation of the NAAQS before final action is

taken on this proposal, the proposed approval of the redesignation will

be withdrawn and a proposed disapproval substituted for the proposed

approval.

In addition to the demonstration discussed above, EPA required

completion of air network monitoring requirements set forth in 40 CFR

part 58. This included a quality assurance plan revision and a

monitoring network review to determine the adequacy of the ozone

monitoring network. The BAAQMD fulfilled these requirements to complete

documentation for the air quality demonstration. The BAAQMD has also

committed to continue monitoring in this area in accordance with 40 CFR

part 58.

EPA agreed with the BAAQMD recommendation in its network review

concerning the need for one additional ozone monitor in the area south

of San Jose. As a result, the BAAQMD established an additional State

and Local Air Monitoring Site (SLAMS) at the San Martin site in Santa

Clara County in April 1994. EPA will review data from this new

monitoring station as part of its review of the 1994 ozone season.

2. Meeting Applicable Requirements of Section 110 and Part D

On December 28, 1983 (48 FR 57130), EPA fully approved California's

SIP for the San Francisco Bay Area as meeting the requirements of

section 110(a)(2) and part D of the 1977 Act, with the exception of the

I/M program which was approved on November 25, 1983 (48 FR 53114) and

committed to specific implementation schedules for the San Francisco

Bay Area. The amended Act, however, modified section 110(a)(2) and,

under part D, revised section 172 and added new requirements for all

nonattainment areas. Therefore, for purposes of redesignation, to meet

the requirement that the SIP contain all applicable requirements under

the Act, EPA has reviewed the SIP to ensure that it contains all

measures that were due under the amended Act prior to or at the time

the State submitted its redesignation request, as set forth in EPA

policy.\1\ EPA interprets section 107(d)(3)(E)(v) of the Act to mean

that, for a redesignation request to be approved, the State must have

met all requirements that applied to the subject area prior to or at

the same time as the submission of a complete redesignation request.

Requirements of the Act that come due subsequently continue to be

applicable to the area at later dates (see section 175A(c)) and, if

redesignation of any of the areas is disapproved, the State remains

obligated to fulfill those requirements. These requirements are

discussed below.

---------------------------------------------------------------------------

\1\``Procedures for Processing Requests to Redesignate Areas to

Attainment,'' John Calcagni, Director, Air Quality Management

Division, September 4, 1992.

``State Implementation Plan (SIP) Actions Submitted in Response

to Clean Air Act (CAA) Deadlines,'' John Calcagni, Director, Air

Quality Management Division, October 28, 1992.

``State Implementation Plan (SIP) Requirements for Areas

Submitted Requests for Redesignation to Attainment of the Ozone and

Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS)

on or after November 15, 1992,'' Michael H. Shapiro, Acting

Assistant Administrator, September 17, 1993.

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As discussed earlier in this document, all of the SIP requirements

must be met by the BAAQMD and approved by EPA into the SIP prior to

final action on the redesignation request. In the event that these

requirements are not met, EPA proposes in the alternative to disapprove

the redesignation request. Based on CARB's July 21, 1994 letter to EPA,

EPA is ``parallel processing'' certain SIP revisions in this document

(contingency measures and 1990 emission inventory) and will address the

other requirements (VOC RACT regulations, emission statement rule, new

source review) in a separate Federal Register document prior to final

action on this revision. EPA's decision to parallel process the locally

adopted contingency measures and 1990 emissions inventory reflect EPA's

positive technical and administrative review. An EPA letter dated

August 25, 1994 (Howekamp, EPA, to Boyd, CARB) finds the revised

baseyear inventory complete (for parallel processing purposes) and

rescinds the April 13, 1993 finding of incompleteness for the emission

inventory. An approvability review was performed separately by EPA.

A. Section 110 Requirements

Although section 110 was amended in 1990, the San Francisco Bay

Area SIP meets the requirements of amended section 110(a)(2). A number

of the requirements did not change in substance and, therefore, EPA

believes that the pre-amendment SIP met these requirements. As to those

requirements that were amended, see 57 FR 27936 and 23939 (June 23,

1993), many are duplicative of other requirements of the Act. EPA has

analyzed the SIP and determined that it is consistent with the

requirements of amended section 110(a)(2). The SIP contains enforceable

emission limitations, requires monitoring, compiling, and analyzing

ambient air quality data, requires preconstruction review of new major

stationary sources and major modifications to existing ones, provides

for adequate funding, staff, and associated resources necessary to

implement its requirements, and requires stationary source emissions

monitoring and reporting.

B. Part D Requirements

Before the San Francisco Bay Area may be redesignated to

attainment, it also must have fulfilled the applicable requirements of

part D of the Act. Under part D, an area's classification indicates the

requirements to which it will be subject. Subpart 1 of part D sets

forth the basic nonattainment requirements applicable to all

nonattainment areas, classified as well as nonclassifiable. Subpart 2

of part D establishes additional requirements for nonattainment areas

classified under table 1 of section 181(a)(1) or table 3 of section

186(a). The San Francisco Bay Area was classified under table 1 of

section 181(a)(1) as a moderate ozone nonattainment area (See 56 FR

56694, codified at 40 CFR 81.305). Therefore, in order to be

redesignated to attainment, the State must meet the applicable

requirements of subpart 1 of part D--specifically sections 172(c) and

176, as well as the applicable requirements of subpart 2 of part D.

B.1. Subpart 1 of part D--Section 172(c) Plan Provisions. Under

section 172(b), the Administrator established that States containing

nonattainment areas shall submit a plan or plan revision meeting the

applicable requirements of section 172(c) no later than three years

after an area is designated as nonattainment, i.e., unless EPA

establishes an earlier date. EPA has determined that the section

172(c)(2) reasonable further progress (RFP) (with parallel requirements

for a moderate ozone nonattainment area under subpart 2 of part D, due

November 15, 1993) was not applicable at the time the State of

California submitted the San Francisco Bay Area redesignation request

on November 12, 1993. Also, the 172(c)(9) contingency measures and

additional 172(c)(1) non-RACT reasonable available control measures

(RACM) beyond what may already be required in the SIP are no longer

necessary, since no earlier date was set for these measures and as RFP

was not due until November 15, 1993. As discussed below in section B3.,

subpart 2 of part D, the BAAQMD is in the process of revising certain

VOC RACT rules to meet the Clean Air Act requirements.

The 172(c)(3) emissions inventory requirement has been met by the

submission and proposed approval of the 1990 base year inventory

required under subpart 2 of part D, section 182(a)(1).

As for the 172(c)(5) NSR requirement, once an area is redesignated

to attainment, this requirement is no longer applicable. The area then

becomes subject to prevention of significant deterioration (PSD)

requirements in lieu of the NSR program (57 FR 13564). Currently, the

San Francisco Bay Area is amending its NSR rule to comply with the

provisions of the 1990 Clean Air Act amendments. Prior to final action

on the redesignation request and maintenance plan, EPA will take final

rulemaking action on the BAAQMD's NSR program with respect to the ozone

requirements of sections 182(a)(2)(C) and 182(b)(5) in a separate

Federal Register document. Upon redesignation to attainment, BAAQMD

will continue with NSR permitting until such time as BAAQMD requests

delegation of the PSD program for VOC. At that time, the nonattainment

area requirements of the BAAQMD's NSR program will be placed in the

contingency plan. See the TSD accompanying this notice for a detailed

discussion of the NSR requirements and deficiencies in the current

regulation.

Finally, for purposes of redesignation, the San Francisco Bay Area

SIP was reviewed to ensure that all requirements of section 110(a)(2),

containing general SIP elements, under the Act were satisfied. Title 40

CFR 52.220 evidences that the San Francisco Bay Area SIP was approved

under section 110 of the Act, and further that it satisfies all

applicable part D, title I requirements with the exception of the

outstanding part D requirements for the ozone SIP, mentioned above.

B.2. Subpart 1 of Part D-- Section 176 Conformity Plan Provisions.

Section 176(c) of the Act requires States to revise their SIPs to

establish criteria and procedures to ensure that Federal actions,

before they are taken, conform to the air quality planning goals in the

applicable State SIP. The requirement to determine conformity applies

to transportation plans, programs and projects developed, funded, or

approved under title 23 U.S.C. or the Federal Transit Act

(``transportation conformity''), as well as to all other Federal

actions (``general conformity''). Section 176 further provides that the

conformity revisions to be submitted by the States must be consistent

with Federal conformity regulations that the Act required EPA to

promulgate. Congress provided for the State revisions to be submitted

one year after the date for promulgation of final EPA conformity

regulations. When that date passed without such promulgation, EPA's

General Preamble for the Implementation of title I informed the State

that its conformity regulations would establish a submittal date (see

57 FR 13498, 13557, (April 16, 1992)).

The EPA promulgated final transportation conformity regulations on

November 24, 1993 (58 FR 62118) and general conformity regulations on

November 30, 1993 (58 FR 63214).

These conformity rules require that States adopt both

transportation and general conformity provisions in the SIP for areas

designated nonattainment or subject to a maintenance plan approved

under CAA section 175A. Pursuant to 40 CFR 51.396 of the transportation

conformity rule and 40 CFR 51.851 of the general conformity rule, the

State of California is required to submit a SIP revision containing

transportation conformity criteria and procedures consistent with those

established in the Federal rule by November 25, 1994. Similarly,

California is required to submit a SIP revision containing general

conformity criteria and procedures consistent with those established in

the Federal rule by December 1, 1994. Because the deadlines for these

submittals have not yet come due, they are not applicable requirements

under section 107(d)(3)(E)(v) and, thus, do not affect approval of this

redesignation request.

Moreover, the BAAQMD has committed to revise its SIP to be

consistent with the final Federal regulations on conformity by the

applicable November 1994 deadlines (see 40 CFR 51.396(a) and 51.851(a),

November 24, 1993 (58 FR 62218) and November 30, 1993 (58 FR 63247),

respectively).

B.3. Subpart 2 of Part D--Section 182(a) and 182(b) Requirements.

The San Francisco Bay Area is a moderate ozone nonattainment area.

Under subpart 2 of part D, such areas must meet the requirements for

marginal areas under section 182(a)(1) as well as the requirements for

moderate areas contained in section 182(b). As discussed in section

2.B.2. above, for purposes of section 107(d)(3)(E)(v), the San

Francisco Bay Area must meet only those requirements of sections 182

(a) and (b) which were due prior to or at the time of the submittal of

a complete redesignation request. The BAAQMD has met the requirements

of section 182 with the exception of VOC RACT rule corrections, the

emissions statement rule, and the NSR rule corrections.

At the request of the CARB, EPA will parallel process the SIP

revisions required pursuant to section 182(a) and (b) in a separate

Federal Register notice before final action on the redesignation

request and maintenance plan (See letter dated July 21, 1994 from James

D. Boyd, Executive Officer, CARB to Felicia Marcus, Regional

Administrator, EPA).

The CARB submitted a 1990 emissions inventory of ozone precursors

as required by section 182(a)(1) on November 12, 1992. On November 18,

1993 the CARB submitted a revised 1990 emissions inventory of ozone

precursors which EPA found incomplete on April 13, 1994 because the

emissions inventory had not gone through an adequate public notice and

hearing process. To correct the deficiency, the BAAQMD held a public

hearing on July 29, 1994 (which was the maintenance plan 1990

attainment inventory submitted on November 12, 1993) and will submit

the appropriate documentation to EPA. Through this document, EPA also

proposes to approve the 1990 emissions inventory as required by section

182(a)(1).

Currently, the BAAQMD is in the process of amending certain VOC

RACT regulations required by sections 182(a)(2)(A) and 182(b)(2) which

EPA must fully approve into the SIP prior to final action on the

redesignation request and maintenance plan.2 The following is a

list of the deficient VOC RACT regulations:

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\2\EPA has received all of the VOC RACT rules required by

section 182(a), but the rules do not meet all of EPA requirements

for full approval. EPA has met extensively with the BAAQMD to

discuss specific revisions to correct RACT deficiencies. EPA is

unable to make a definitive determination on the approvability of

these rules until EPA receives and reviews the formal SIP revision

from the CARB.

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Rule No. Rule title

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8-1..... General Provisions.

8-2..... Miscellaneous Operations.

8-4..... General Solvent & Surface Coating Operations.

8-7..... Gasoline Dispensing Facilities.

8-8..... Wastewater (Oil-Water) Separators.

8-11.... Metal Container Closure and Coil Coating.

8-12.... Paper, Fabric, and Film Coating.

8-13.... Light and Medium Duty Motor Vehicle Assembly Plants.

8-14.... Surface Coating of Large Appliance and Metal Furniture.

8-15.... Emulsified and Liquid Asphalts.

8-16.... Solvent Cleaning Operations.

8-19.... Surface Coating of Miscellaneous Metal Parts and Products.

8-20.... Graphic Arts Printing and Coating Operations.

8-22.... Valves and Flanges at Chemical Plants.

8-23.... Coating of Flat Wood Paneling and Wood Flat Stock.

8-24.... Pharmaceutical and Cosmetic Manufacturing Operations.

8-25.... Pump and Compressor Seals at Petroleum Refineries, Chemical

Plants, Bulk Plants, and Bulk Terminals.

8-28.... Pressure Relief Valves at Petroleum Refineries and Chemical

Plants.

8-29.... Aerospace Assembly and Component Coating Operations.

8-30.... Semiconductor Manufacturing Operations.

8-31.... Surface Coating of Plastic Parts and Products.

8-32.... Wood Product Coatings.

8-33.... Gasoline Bulk Terminals and Gasoline Delivery Vehicles.

8-34.... Solid Waste Disposal Sites.

8-35.... Coating, Ink, and Adhesive Manufacturing.

8-38.... Flexible and Rigid Disk Manufacturing.

8-39.... Gasoline Bulk Plants and Gasoline Delivery Vehicles.

8-40.... Aeration of Contaminated Soil.

8-41.... Vegetable Oil Manufacturing Operations.

8-42.... Large Commercial Bakeries.

8-43.... Surface Coating of Marine Vessels.

8-45.... Motor Vehicle and Mobile Equipment Coating Operations.

8-47.... Air Stripping and Soil Vapor Extraction Operations.

8-50.... Polyester Resin Operations.

------------------------------------------------------------------------

Upon EPA's final approval of these rules and the other corrections

noted above, the BAAQMD will have met the applicable requirements of

the Act.

B4. Section 182(f) NOX RACT Exemption Petition--a. Section

182(f) Requirements and Exemption Provisions. Section 182(f) of the Act

requires that the same ozone provisions that apply to major stationary

sources of VOC under subpart 2 of Part D also apply to major stationary

sources of NOX. Areas designated nonattainment of the NAAQS for

ozone, and classified as moderate nonattainment or above, are required

to adopt RACT rules for major stationary sources of NOX and to

provide for nonattainment area new source review (NSR) for new sources

and modifications that are major for NOX. Section 182(f) provides

further that these requirements do not apply if EPA determines that

additional NOX reductions would not contribute to attainment of

the NAAQS, for areas outside the ozone transport region (OTR). Any

person (including a state) may petition EPA to make such a finding. EPA

guidance interpreting the section 182(f) exemption provisions provides

that a state may submit an exemption petition based on three

consecutive years of air quality monitoring data showing attainment of

the ozone NAAQS.

EPA's NOX exemption policy is contained in several

memoranda3 providing that under section 182(f)(1)(A), an exemption

from the NOX requirements may be granted for nonattainment areas

outside the OTR if EPA determines that additional reductions of

NOX would not contribute to attainment of the NAAQS for those

areas. In cases where a nonattainment area is demonstrating attainment

with three consecutive years of air quality monitoring data, without

having implemented the section 182(f) NOX provisions, it is clear

that the ``contribute to attainment'' test is met. Thus, a State may

submit a petition for a section 182(f) exemption based on air quality

monitoring data.

---------------------------------------------------------------------------

\3\Michael H. Shapiro, Acting Assistant Administrator for Air

and Radiation, issued on September 17, 1993, entitled ``State

Implementation Plan (SIP) Requirements for Areas Submitting Requests

for Redesignation to Attainment of the Ozone and Carbon Monoxide

(CO) National Ambient Air Quality Standards (NAAQS) on or after

November 15, 1992'', and, ``Guideline for Determining the

Applicability of Nitrogen Oxide Requirements under Section 182(f),''

from John Seitz, Director, Office of Air Quality Planning and

Standards, to the Regional Division Directors, December 16, 1993,

and a subsequent revision to portions of these memoranda from John

S. Seitz, Director of EPA's Office of Air Quality Planning and

Standards, issued on May 27, 1994, entitled, ``Section 182(f)

Nitrogen Oxides (NOX) Exemptions--Revised Process and

Criteria''.

---------------------------------------------------------------------------

Pursuant to section 182(f)(1) of the Act, the exemption guidance

outlines circumstances under which EPA would determine whether the new

NOX requirements would be limited or would not apply. For areas

that did not implement the section 182(f) NOX requirements but did

attain the ozone standard, as demonstrated by ambient monitoring data,

it is clear that the additional NOX reductions required by section

182(f) would not contribute to attainment, although they might

contribute to maintenance. In addition, EPA has not received a

demonstration that the NOX exemption would interfere with

attainment or maintenance in downwind areas. (See discussion below in

IV. Potential Impact of California Federal Implementation Plan and

State Implementation Plan.)

EPA's conformity rules4,,5 also reference the section

182(f) exemption process as a means for exempting affected areas from

NOX conformity requirements. Therefore, ozone nonattainment areas

that are granted areawide section 182(f) exemptions under this approach

will also be exempt from the NOX conformity requirements.

---------------------------------------------------------------------------

\4\``Criteria and Procedures for Determining Conformity to State

or Federal Implementation Plans or Transportation Plans, Programs,

and Projects Funded or Approved under Title 23 U.S.C. of the Federal

Transit Act'', November 24, 1993 (58 FR 62188).

\5\``Determining Conformity of General Federal Actions to State

or Federal Implementation Plans; Final Rule'', November 30, 1993 (58

FR 63214).

---------------------------------------------------------------------------

b. BAAQMD NOX RACT Exemption Petition. On April 21, 1993, EPA

notified the Governor of California of a finding that the State failed

to submit the NOX RACT provisions by November 15, 1992 as required

by section 182(f). On April 15, 1994, the BAAQMD submitted a petition

to EPA requesting that the San Francisco Bay Area ozone nonattainment

area be exempted from the requirement to implement NOX RACT

controls pursuant to section 182(f) of the Act. A successful exemption

demonstration or a complete submittal of the NOX RACT rules would

cure this deficiency.

The BAAQMD has not implemented NOX RACT and has submitted

monitoring data as part of its redesignation request to demonstrate

attainment of the standard. As discussed above, the BAAQMD has

monitoring data showing that the area attained the ozone NAAQS since

the 1990-1992 timeframe. See section III.1. of this notice for a

detailed discussion of the ozone air quality monitoring data.

c. Proposed Action. The EPA proposes to grant the BAAQMD section

182(f) NOX RACT exemption petition based upon the evidence

provided by the BAAQMD and the BAAQMD's compliance with the

requirements outlined in EPA's section 182(f) exemption guidance. The

final approval of this proposed action would exempt the San Francisco

Bay Area from the requirements to implement the NOX RACT

requirements and the applicable general and transportation conformity

provisions for NOX. However, the NOX RACT control measures

are included as contingency measures in the San Francisco Bay Area's

maintenance plan (See discussion below, 5E. Contingency Plan).

3. Fully Approved SIP Under Section 110(k) of the Act

In order for EPA to take final action approving the redesignation

request and maintenance plan, the San Francisco Bay Area must have a

fully approved SIP under section 110(k), which also meets the

applicable requirements of section 110 and Part D. As discussed in

Section 2.A. above, EPA approved numerous provisions of the San

Francisco Bay Area SIP under the pre-amended Act and finds that these

provisions meet the requirements of section 110(a)(2). In addition, EPA

will take action on the following SIP revisions prior to taking final

action on the redesignation request and maintenance plan: VOC RACT

rules, NSR rule, and the emission statement rule. Also, EPA is

proposing to approve the emissions inventory as required by section

182(a)(1) through this document. Assuming that these SIP revisions meet

all requirements for approval, EPA will undertake rulemaking to approve

them. Once EPA approves these revisions, the San Francisco Bay Area

will have fulfilled the requirement to have a fully approved SIP under

section 110(k).

The proposed approval of the redesignation request is contingent

upon the BAAQMD fulfilling the requirements of sections 173 and 182

discussed above prior to final rulemaking. In the alternative, if the

requirements are not fulfilled, EPA must disapprove the redesignation

request for the San Francisco Bay Area.

4. Improvement in Air Quality Due to Permanent and Enforceable Measures

Under the pre-amended Act, EPA approved California's SIP control

strategy for the San Francisco Bay Area nonattainment area, satisfied

that the rules and the emission reductions achieved as a result of

those rules were enforceable. Since enactment of the amended Act, the

State has made additional submittals as identified in section 182(b)

above. In addition, EPA finds that the measures listed below contribute

to the permanence and enforceability of reductions in ambient ozone

levels in the San Francisco Bay Area.

------------------------------------------------------------------------

Emission

BAAQMD reg reductions

Selected control measures\1\ 8 rule # 1987-1990

VOC (TPD)

------------------------------------------------------------------------

Stationary Sources:

Architectural Coatings........................ 3 1.8

Emulsified and Liquid Asphalts................ 15 2.0

Solvent Cleaning Operations................... 16 0.8

Valves and Flanges at Petroleum Refinery

Complexes.................................... 18 1.4

Graphic Arts Printing and Coating Operations.. 20 0.7

Pump and Compressor Seals at Petroleum

Refineries................................... 25 1.1

Solid Waste Disposal Sites.................... 34 3.1

Natural Gas and Crude Oil Production

Refineries................................... 37 0.6

Motor Vehicles and Mobile Equipment Coating

Operations................................... 45 0.6

Marine Tank Vessel to Marine Tank Vessel

Loading...................................... 46 0.5

Aerosol Paint Coatings........................ 49 0.8

Stationary Sources Subtotal................. .......... 13.4

Mobile Sources:

ARB Motor Vehicle Program (including Basic I/

M)........................................... n/a 56

Total..................................... .......... 69

------------------------------------------------------------------------

\1\Control Measures achieving at least 0.5 TPD reduction of VOC between

1987 and 1990.

The actual reduction in VOC emissions from 1987 to 1990 was 61 TPD

which reflects growth in emissions from some sources and reductions in

emissions due to all control measures.

In association with its emission inventory discussed in Section

5.A. below, the State demonstrated that point source VOC emissions were

not artificially low due to local economic downturn. The BAAQMD

included trend data for vehicle miles traveled (VMT) and employment in

the maintenance plan to demonstrate that attainment was not due to

economic downturn. These trend data indicate that neither VMT growth

nor daily VMT actually decreased during the attainment period. In

addition, using employment data as an indicator for stationary source

emissions, the BAAQMD demonstrated a modest decrease during the

calendar years 1991 and 1992. The overall effect on the stationary

source inventory should have been less than a 2% reduction, not enough

to significantly affect the San Francisco Bay Area's attainment of the

ozone NAAQS. EPA finds that the combination of existing EPA-approved

SIP and Federal measures contribute to the permanence and

enforceability of reductions in ambient ozone levels that have allowed

the area to attain the NAAQS.

5. Fully Approved Maintenance Plan Under Section 175A

In today's document, EPA is proposing approval of the State's

maintenance plan for the San Francisco Bay Area because EPA finds that

the BAAQMD's submittal meets the requirements of section 175A. If EPA

determines after public notice and comment that it should give final

approval to the maintenance plan, the San Francisco Bay Area

nonattainment area will have a fully approved maintenance plan in

accordance with section 175A. Section 175A of the Act sets forth the

elements of a maintenance plan for areas seeking redesignation from

nonattainment to attainment. The plan must demonstrate continued

attainment of the applicable NAAQS for at least ten years after the

Administrator approves a redesignation to attainment. Eight years after

the redesignation, the State must submit a revised maintenance plan

which demonstrates attainment for the ten years following the initial

ten-year period. To provide for the possibility of future NAAQS

violations, the maintenance plan must contain contingency measures,

with a schedule for implementation, adequate to assure prompt

correction of any air quality problems. Each of the section 175A plan

requirements is discussed below.

5.A. Emissions Inventory--Base Year Inventory. The BAAQMD adopted

comprehensive inventories of VOC, NOX, and CO emissions from area,

stationary, and mobile sources using 1990 as the base year for

calculations to demonstrate maintenance of the ozone NAAQS. EPA has

determined that 1990 is an appropriate year on which to base attainment

level emissions because EPA policy allows States to select any one of

the three years in the attainment period as the attainment year

inventory.6

---------------------------------------------------------------------------

\6\``Procedures for Processing Requests to Redesignate Areas to

Attainment,'' John Calcagni, Director, Air Quality Management

Division, September 4, 1992.

---------------------------------------------------------------------------

CARB originally submitted the annual and peak ozone season 1990

comprehensive inventories of actual emissions as a SIP revision on

November 12, 1992, and revised them in a submission dated November 18,

1993. CARB also submitted the San Francisco Bay Area's ozone

maintenance plan on November 12, 1993 which contained a comprehensive

1990 emission inventory. EPA policy (September 29, 1992, Calcagni and

Laxton) allows the public hearing and adoption of the 1990 base year

inventories to occur with the first related regulatory submittal. CARB

developed the inventories to meet the requirements of sections

172(c)(3) and 182(a)(1), in accordance with EPA guidance.

The State submittal contains the detailed inventory data and

summaries by county and source category. The BAAQMD provided the

stationary source estimates, based on source test and mass balance

computations, as required for annual permit renewal. The CARB and

BAAQMD generated area source emissions for each source category based

on emission and activity factors for each county in the nonattainment

area. These factors are cited or their sources referenced in Methods

for Assessing Area Source Emissions in California, California Air

Resources Board, September 1991.

CARB based on-road mobile source emission and activity estimates on

CARB's EMFAC7F and BURDEN7C models, respectively. Different emission

factors and activity rates apply to each type of vehicle, roadway, and

road condition. Vehicle mix and age data from vehicle registration vary

within each county. Off-road engine estimates were derived from both

State and local sources, as cited in the area source document,

referenced above. The CARB derived VMT estimates from a mix of the

California ``Highway Performance Monitoring System'' (HPMS) and local

surveys. Actual, as opposed to allowable, emission estimates were used

for all source categories.

The comprehensive base year emissions inventory discussed above has

been entered into the Aerometric Information Retrieval System (AIRS).

AIRS is EPA's computerized data storage system for air quality and

emission source data. EPA, under contract with Radian Corporation, has

entered the base year emissions inventory of stationary sources into

AIRS and has also prepared computer software to convert the California

Emission Data System stationary source data to AIRS/AFS format for

entry into AIRS. California is responsible for entering 1990 area and

mobile source (AMS) data into AIRS by October 1994, according to a

fiscal year 1994 Clean Air Act section 105 air program grant agreement.

EPA's TSD contains a more detailed analysis of the base year inventory

for the San Francisco Bay Area.

On April 13, 1994, EPA found the 1990 base year inventory

submission incomplete for lack of adequate public notice and adoption.

Instead of adopting the November 12, 1992 and November 18, 1993 base

year inventories as submitted by CARB, the BAAQMD held a public hearing

on a revised 1990 base year inventory on July 29, 1994 which was the

attainment inventory submitted as part of the maintenance plan. The

State requested parallel processing of this revised emissions inventory

to fulfill section 182(a)(1). Based on the State's parallel processing

request and submission of associated documentation, EPA rescinded the

finding of incompleteness in an EPA letter dated August 25, 1994 to

CARB (Howekamp, EPA to Boyd, CARB).

Following is a table of the revised average peak ozone season

weekday VOC and NOx emissions for the biogenic and major

anthropogenic source categories for 1990 (the attainment year

inventory, 1995, 2000, and 2005.

VOC Emission Inventory Summary\1\ (Tons Per Day)

------------------------------------------------------------------------

1990 1995 2000 2005

------------------------------------------------------------------------

Point....................................... 78 73 75 77

Area........................................ 173 154 141 141

Mobile On-Road.............................. 300 204 142 104

Mobile Non-Road............................. 81 85 82 84

Anthropogenic Total......................... 631 515 440 406

Biogenics................................... 300 300 300 300

Total................................. 931 815 740 706

------------------------------------------------------------------------

\1\Entries are rounded to the nearest whole number. Totals may not equal

to sum of column entries.

NOX Emission Inventory Summary\1\ (Tons Per Day)

------------------------------------------------------------------------

1990 1995 2000 2005

------------------------------------------------------------------------

Point....................................... 131 130 141 146

Area........................................ 15 16 17 18

Mobile On-Road.............................. 251 194 166 158

Mobile Non-Road............................. 159 164 176 186

Total................................. 557 504 499 508

------------------------------------------------------------------------

\1\Entries are rounded to the nearest whole number, totals may not equal

to sum of column entries.

The BAAQMD provided EPA with the appropriate documentation for

technical (Base Year 1990 Emission Inventory--Source Category

Methodologies) and administrative requirements. The revised VOC and

NOX inventories are 3.4 and 13.5 percent lower, respectively, than

the reactive organic compound (ROG) and NOX inventories previously

submitted by the State. The primary reason for the difference between

the inventories is the use of the BURDEN7F model in place of the

BURDEN7C model to estimate vehicular emissions. In addition, ROG

inventories include ethane, which are approximately 4 percent higher

than VOC inventories.

5.B. Demonstration of Maintenance--Projected Inventories. The

BAAQMD developed projected VOC and NOX emissions inventories for

the years 1990, 1995, 2000 and 2005 by applying growth factors in

accordance with EPA guidance. The CARB included these 1990 emissions

inventories for VOC, NOX and CO in the maintenance plan

submission. These 1990 emission inventories will be entered into AIRS.

The projected inventories show that the ozone standard will be

maintained and that emissions are not expected to exceed the level of

the 1990 inventory during the maintenance period. EPA's TSD contains a

detailed analysis of the projected emission inventories for the San

Francisco Bay Area.

5.C. Verification of Continued Attainment. Continued attainment of

the ozone NAAQS in the San Francisco Bay Area depends, in part, on the

State's efforts to track indicators of continued attainment during the

maintenance period. The BAAQMD will analyze annually the three most

recent consecutive years of air quality monitoring data to verify

continued attainment of the national ozone standard, in accordance with

40 CFR part 50, appendix H. The BAAQMD will submit to EPA an annual

report by July 1 of each year for data collected from the previous

calendar year. This information in conjunction with the reports from

the previous two years will provide adequate information for

determining continued compliance with the ozone NAAQS. The BAAQMD has

chosen a violation of the NAAQS as the trigger for the contingency

plan.

5.D. Contingency Plan. The level of VOC and NOX emissions in

the San Francisco Bay Area will largely determine its ability to stay

in compliance with the ozone NAAQS in the future. Despite best efforts

to demonstrate continued compliance with the NAAQS, the ambient air

pollutant concentrations may exceed or violate the NAAQS. Therefore, as

required pursuant to section 175A, the BAAQMD has provided contingency

measures with a schedule for implementation in the event of a future

ozone air quality problem.

At the time of local adoption of the redesignation request and

maintenance plan, the BAAQMD identified the enhanced vehicle inspection

and maintenance program (I/M), required for serious and above ozone

nonattainment areas, as the contingency measure which would be

triggered in the event of a violation during the maintenance period.

Since that time, the State of California has passed legislation for an

enhanced I/M program which restricts the implementation of the test-

only program to nonattainment areas which are required to implement the

program under the Clean Air Act. Thus, BAAQMD is prohibited from opting

into the test-only portion of the enhanced I/M program. However, the

BAAQMD has selected new measures to fulfill the contingency plan

requirements of section 175A(d) which are discussed below.

On April 15, 1994, the BAAQMD, MTC, and ABAG sent a letter to the

CARB Executive Officer, James Boyd, which committed to adopt basic

improvements to the I/M program and NOX control measures as the

new contingency provisions for the maintenance plan. In this letter,

the BAAQMD, MTC and ABAG, have proposed to implement the basic

improvements to the I/M program beginning in January 1995 in order to

ensure continued maintenance of the NAAQS. The emission reductions

associated with this program go beyond the necessary emission

reductions required for maintenance and the reductions are not included

in the BAAQMD's projected inventories in the maintenance plan. These

improvements yield approximate emission reductions in the amount of 8

tons per day (TPD) VOC and 7 TPD NOX. The early implementation of

this contingency provision provides an additional margin of safety for

the area in maintaining the NAAQS. In addition, in the event of a

violation during the maintenance period, the BAAQMD will meet with EPA

within 30 days following the violation to determine which additional

measures would be appropriate to implement. The additional measures

contained in the proposal include numerous NOX RACT control

measures which yield additional NOX reductions through the year

2001. The chart below lists the additional measures and their

associated emission reductions. The TSD contains detailed information

concerning the basic improvements to the I/M program and the NOX

RACT control measures.

BAAQMD NOX Rules as Contingency Measures

------------------------------------------------------------------------

NOX

Title regulation 9 Adopted Implementation Reductions

year(s) (TPD)

------------------------------------------------------------------------

NOX and CO from Industrial,

Institutional and Commercial

Boilers, Steam Generators

(rule 7)..................... 9/16/92 1/1/96 14.9

NO2 and CO2 Emissions from

Stationary Internal

Combustion Engines (rule 8).. 1/20/93 1/1/97 8.3

NOX from Stationary Gas

Turbines (rule 9)............ 5/5/93 1/1/97 7/0

Refinery Boilers, Steam

Generators and Process

Heaters (rule 10)............ 1/5/94 5/31/95 n/a

NOX and CO from Utility

Electric Power Generating

Boilers (rule 11)............ 2/16/94 5/31/95 1-2.6

NOX from Glass Melting

Furnaces (rule 12)........... 1/19/94 1/1/97-1/1/200

1 1.2

------------------------------------------------------------------------

1Sources already meet RACT standards.

At the request of CARB, the changes to the contingency plan are

being parallel processed in accordance with 40 CFR part 51, appendix V

in order to expedite the approval of the redesignation request and

maintenance plan. The BAAQMD, MTC and ABAG held a public hearing on the

new contingency plan on July 29, 1994.

The contingency measures proposed by the BAAQMD meet the

requirements of section 175A(d) of the Act.

5E. Subsequent Maintenance Plan Revisions. In accordance with

section 175A(b) of the Act, the State has agreed to submit a revised

maintenance SIP eight years after the area is redesignated to

attainment. Such revised SIP will provide for maintenance for an

additional ten years (See letter dated April 15, 1994 from Milton

Feldstein, BAAQMD to James Boyd, CARB attached to the TSD).

IV. Potential Impact of California Federal Implementation Plans and

State Implementation Plans

EPA is under court order to promulgate final federal implementation

plans (FIPs) for ozone for Los Angeles-South Coast Air Basin Area, the

Sacramento Metro Area, and the Ventura County Area and for carbon

monoxide for Los Angeles-South Coast Air Basin Area by February 15,

1995. EPA discusses the phenomenon of pollutant transport within air

basins in the proposed FIPs (59 FR 23393, May 5, 1994). EPA

acknowledges that future modeling analyses could eventually result in

revisions to the FIP, which may impose additional FIP controls for

areas not covered by the proposed FIPs, such as the San Francisco Bay

Area, which is upwind of Sacramento. EPA's proposed action to

redesignate the San Francisco Bay Area to an attainment area does not

exclude the possibility of future FIP controls in the area.

In addition, States are responsible for developing and submitting

demonstrations which show that the standard will be attained by the

applicable date for areas where the demonstration of attainment is

complicated by transport between two areas of different classifications

(See General Preamble to title I of the Clean Air Act (57 FR 13528,

April 16, 1992)). Thus, EPA expects the ozone modeling demonstrations

due by November 15, 1994 required by section 182(c)(2) to address

transport and to demonstrate attainment for all areas within

California.

A recent report released by CARB, ``Preliminary Assessment of

Transport on San Joaquin Valley Ozone,'' discusses recent simulations

to assess the impact of transported emissions in the San Joaquin

Valley. It should be noted that the results discussed in the report are

based on an extreme scenario in which anthropogenic emissions for the

San Francisco Bay Area and the Sacramento area are set to zero. In this

scenario, the report indicates that there would be a decrease in ozone

measurements of 27% in the Northern San Joaquin Valley, ten percent in

the Central San Joaquin Valley and seven percent in Southern San

Joaquin Valley. The results discussed in this report are preliminary.

EPA will review the final report when it is available.

EPA is soliciting comment on whether transport has any impact on

EPA's proposed redesignation of the San Francisco Bay Area to

attainment.

V. Conclusion

EPA is soliciting public comments on this document and on issues

relevant to EPA's proposed action. Comments will be considered before

taking final action. Interested parties may participate in the Federal

rulemaking procedure by submitting written comments to the person and

address listed in the ADDRESSES section at the beginning of this

notice.

Proposed Action

In today's document, EPA proposes to approve the San Francisco Bay

Area's ozone maintenance plan because it meets the requirements of

section 175A. In addition, the Agency is proposing approval of the

redesignation request for the ozone nonattainment area, subject to

final approval of the maintenance plan and provided the hearing notice

and adoption documentation are submitted for the amendments to the

contingency plan, because the State has demonstrated compliance with

the requirements of section 107(d)(3)(E) for redesignation. Finally,

EPA proposes to approve the emissions inventory as meeting the

requirements of section 182(a)(1), provided the hearing notice and

adoption documentation are submitted, and the NOX exemption

petition which fulfills the requirements of section 182(f). Nothing in

this action should be construed as permitting or allowing or

establishing a precedent for any future request for revision to any

SIP. Each request for revision to the SIP shall be considered

separately in light of specific technical, economic, and environmental

factors and in relation to relevant statutory and regulatory

requirements.

Ozone State implementation plans (SIP's) are designed to satisfy

the requirements of part D of the Clean Air Act and to provide for

attainment and maintenance of the ozone NAAQS. This proposed

redesignation should not be interpreted as authorizing the State to

delete, alter, or rescind any of the VOC or NOX emission

limitations and restrictions contained in the approved ozone SIP.

Changes to ozone SIP VOC regulations rendering them less stringent than

those contained in the EPA approved plan cannot be made unless a

revised plan for attainment and maintenance is submitted to and

approved by EPA. Unauthorized relaxations, deletions, and changes could

result in both a finding of nonimplementation (section 173(b) of the

Clean Air Act) and in a SIP deficiency call made pursuant to section

110(a)(2)(H) of the Clean Air Act.

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises,

and government entities with jurisdiction over populations of less than

50,000.

SIP approvals under section 110 and subchapter I, part D of the CAA

do not create any new requirements, but simply approve requirements

that the State is already imposing. Therefore, because the Federal SIP-

approval does not impose any new requirements, it does not have any

economic impact on any small entities. Redesignation of an area to

attainment under section 107(d)(3)(E) of the CAA does not impose any

new requirements on small entities.

Redesignation is an action that affects the status of a

geographical area and does not impose any regulatory requirements on

sources. Accordingly, I certify that the approval of the redesignation

request will not have an impact on any small entities.

The Office of Management and Budget has exempted this rule from the

requirements of section 6 of Executive Order 12866.

List of Subjects

40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Ozone.

40 CFR Part 81

Air pollution control, National parks, Wilderness areas.

Authority: 42 U.S.C. 7401-7671q.

Dated: August 31, 1994.

Felicia Marcus,

Regional Administrator.

[FR Doc. 94-23983 Filed 9-27-94; 8:45 am]

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