Approval and Promulgation of Section 182(f) Exemption to the Nitrogen Oxides (NOgreek-kh) Control Requirements for the Baton Rouge Ozone Nonattainment Area; Louisiana

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-22-1-6870; FRL-5280-9]

Approval and Promulgation of Section 182(f) Exemption to the

Nitrogen Oxides (NO) Control Requirements for the Baton Rouge

Ozone Nonattainment Area; Louisiana

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rulemaking.

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SUMMARY: The EPA proposes to approve a petition from the State of

Louisiana requesting that the Baton Rouge ozone nonattainment area be

exempt from NOX control requirements of section 182(f) of the

Clean Air Act (CAA) as amended in 1990. The State of Louisiana bases

its request for Baton Rouge upon a demonstration that additional

NOX reductions would not contribute to ozone attainment in the

nonattainment area.

[[Page 43101]]

DATES: Comments on this proposed action must be received in writing on

or before September 18, 1995.

ADDRESSES: Written comments on this action should be addressed to Mr.

Thomas Diggs, Chief, Air Planning Section, at the EPA Regional Office

listed below. Copies of the documents relevant to this proposed action

are available for public inspection during normal business hours at the

following locations. The interested persons wanting to examine these

documents should make an appointment with the appropriate office at

least 24 hours before the visiting day.

U.S. Environmental Protection Agency, Region 6, Multimedia Planning and

Permitting Division, 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-

2733.

Louisiana Department of Environmental Quality, H. B. Garlock Building,

7290 Bluebonnet, Baton Rouge, Louisiana 70810.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanne McDaniels or Mr. Quang

Nguyen, Air Planning Section (6PD-L), Multimedia Planning and

Permitting Division, U.S. EPA Region 6, 1445 Ross Avenue, Dallas, Texas

75202-2733, telephone (214) 665-7214.

SUPPLEMENTARY INFORMATION:

Background

NOX are precursors to ground level (tropospheric) ozone, or

urban ``smog.'' When released into the atmosphere, NOX will react

with volatile organic compounds (VOC) in the presence of sunlight to

form ozone. Tropospheric ozone is an important factor in the nation's

urban air pollution problem.

The 1990 Clean Air Act Amendments (CAAA) made significant changes

to the air quality planning requirements for areas that do not meet the

ozone NAAQS. Subparts 1 and 2 of part D, title I of the CAA as amended

in 1990 contain the air quality planning requirements for ozone

nonattainment areas. Title I includes new requirements to control

NOX emissions in certain ozone nonattainment areas and ozone

transport regions. Section 182(f) requires States to apply the same

requirements to major stationary sources of NOX as are applied to

major stationary sources of VOC. The new NOX requirements are

reasonably available control technology (RACT) and new source review

(NSR). These provisions are explained more fully in the EPA's NOX

Supplement to the General Preamble published in the Federal Register

(FR) on November 25, 1992 (see 57 FR 55620). In addition, the general

and transportation conformity rules required by section 176(c) (see 58

FR 63214 and 58 FR 62188), and the vehicle inspection and maintenance

(I/M) rules required by section 182(c)(3) (see 57 FR 52989) also

contain new NOX requirements.

Baton Rouge, Louisiana, was designated nonattainment for ozone and

classified as serious pursuant to sections 107(d)(4) and 181(a) of the

CAA. The Baton Rouge nonattainment area consists of the following

parishes: East Baton Rouge, West Baton Rouge, Pointe Coupee,

Livingston, Iberville, and Ascension. Under section 181(a), serious

areas must attain the ozone NAAQS by 1999. Please reference 56 FR 56694

(November 6, 1991, codified for Louisiana at 40 Code of Federal

Regulations 81.319).

Applicable EPA Guidance

The CAA specifies in section 182(f) that if one of the conditions

listed below is met, the new NOX requirements would not apply:

1. In any area, the net air quality benefits are greater without

NOX reductions from the sources concerned;

2. In a nontransport region, additional NOX reductions would

not contribute to ozone attainment in the nonattainment area; or

3. In a transport region, additional NOX reductions would not

produce net ozone benefits in the transport region.

In addition, section 182(f)(2) states that the application of the

new NOX requirements may be limited to the extent that any portion

of those reductions are demonstrated to result in ``excess reductions''

of NOX. The NOX provisions of the conformity requirements

would also not apply in an area that is granted a section 182(f)

exemption (see 58 FR 63214 and 58 FR 62188). In addition, certain

NOX provisions of the I/M requirements would not apply in an area

that is granted a section 182(f) exemption (see 57 FR 52989).

The EPA's Guideline for Determining the Applicability of Nitrogen

Oxides Requirements under Section 182(f) (December 1993) describes how

the EPA will interpret the NOX exemption provisions of section

182(f). In addition, a memorandum signed by John S. Seitz, Director of

the EPA Office of Air Quality Planning and Standards, dated May 27,

1994, and subsequent modifications to that memorandum, describe certain

revisions to the process the EPA currently intends to follow for

granting exemptions from NOX control requirements.

As described more fully in the Seitz memorandum, petitions

submitted under section 182(f)(3) are not required to be submitted as

State Implementation Plan (SIP) revisions. Consequently, the State is

not required under the CAA to hold a public hearing in order to

petition for an areawide NOX exemption determination. Similarly,

it is not necessary to have the Governor submit the petition.

Although the May 27, 1994, Seitz memorandum includes, among the

exemptions that may be submitted under section 182(f)(3), the NOX

requirements of both the general conformity rule (see 58 FR 63214) and

the transportation conformity rule (see 58 FR 62188), the EPA is

currently in the process of revising the transportation conformity rule

to ensure consistency with section 176(c)(3). This impending rule

revision will require areas subject to section 182(b)(1) (i.e.,

moderate, serious, severe, and extreme ozone nonattainment areas) to

submit transportation conformity NOX exemption requests as

revisions to the SIP. All other NOX exemptions (i.e., NOX

NSR, NOX RACT, general conformity NOX requirements, and I/M

NOX requirements) may still be submitted under section 182(f)(3).

In this notice, the EPA is not proposing to approve an exemption from

the transportation conformity NOX requirements. Rather, this will

be accomplished through subsequent rulemaking on a future SIP revision

submitted by the State.

State Submittal

On November 17, 1994, the Louisiana Department of Environmental

Quality (LDEQ) submitted to the EPA a petition pursuant to section

182(f) which requests that the Baton Rouge nonattainment area be

exempted by the EPA from the NOX control requirements of section

182(f) of the CAA.

The State bases its petition on an urban airshed modeling (UAM)

demonstration that additional NOX reductions would not contribute

to attainment in the area. This modeling demonstrates, consistent with

the EPA's December 1993 section 182(f) guidance, that decreases in

ozone concentrations resulting from VOC reductions alone are equal to

or greater than decreases obtained from NOX reductions or a

combination of VOC and NOX reductions. The State's submission

includes a letter from Gustave Von Bodungen, Assistant Secretary of the

LDEQ, to Jane N. Saginaw, Regional Administrator of the EPA Region 6,

requesting exemption from NOX RACT and transportation conformity

requirements for NOX in the Baton Rouge ozone nonattainment area,

along with a summary of modeling results.

[[Page 43102]]

The State of Louisiana also provided supplemental technical reports

based on the modeling demonstration in the Baton Rouge post-1996 rate-

of-progress (ROP) plan submitted to the EPA on November 15, 1994,

pursuant to the requirements of section 182(c)(2)(B) of the CAA. These

reports contained the following: base case model inputs, base case

performance evaluation, 1999 emissions report, and attainment modeling

report. These additional technical reports provided supplemental detail

and documentation on the modeling information provided to the EPA in

the State's petition. In addition, the State submitted follow-up

letters to the petition to (1) provide revisions to several tables

contained in the original petition and (2) broaden the scope of the

original request to also include exemptions under section 182(f) for

NOX NSR, general conformity, and I/M NOX requirements.

Analysis of State Submission

The following items are the basis for the EPA's action proposing to

approve the State of Louisiana's section 182(f) NOX exemption

petition for the Baton Rouge ozone nonattainment area. Please refer to

the EPA's Technical Support Document and the State's submittal for more

detailed information.

A. Consistency With EPA Section 182(f) Guidance

Chapter 4 of the EPA's December 1993 section 182(f) guidance

requires that photochemical grid modeling be used to simulate

conditions resulting from three emission reduction scenarios: (1)

Substantial VOC reductions; (2) substantial NOX reductions; and

(3) both VOC and NOX reductions. To demonstrate that NOX

reductions would not contribute to attainment, the areawide predicted

maximum 1-hour ozone concentration for each day modeled under scenario

(1) must be less than or equal to that from scenarios (2) and (3) for

the same day. Chapter 7 specifies that the application of UAM should be

consistent with the techniques specified in the EPA ``Guideline on Air

Quality Models (Revised),'' and ``Guideline for Regulator Application

of the UAM (July 1991).'' In addition, Chapter 8 of the EPA's December

1993 section 182(f) guidance requires that the modeling simulating

conditions from the NOX emission reduction scenarios include

NOX emission increases after November 15, 1992, due to new or

modified stationary sources of NOX. (Many of these sources would

be subject to the best available control technology requirement through

the prevention of significant deterioration program, but not to NSR

offsets.) As discussed in the next section, the State has met these

requirements by using the UAM consistent with the EPA's guidance.

B. UAM Modeling Analysis

The LDEQ used UAM version IV, an EPA-approved photochemical grid

model, to develop the attainment demonstration for the Baton Rouge

area. The State's modeling activities were performed as outlined in the

UAM modeling protocols, according to the EPA's ``Guideline for

Regulatory Application of the Urban Airshed Model.'' A specific

modeling protocol was developed by the State for its modeling

activities. The State's modeling protocol was reviewed and approved by

the EPA. The discussion below summarizes the EPA's analysis of how the

State's modeling demonstrations complied with the EPA's guidance.

Please refer to the EPA's Technical Support Document for more detailed

information.

1. Episode Selection

The State used the EPA ``Guideline For Regulatory Application of

The Urban Airshed Model'' to select episodes for use in the Baton Rouge

UAM modeling exercises. Data from 1987 through 1991 were examined for

episodes which cover at least 48 consecutive hours and the worst-case

meteorological conditions. Three episodes were selected for the UAM

analysis for the area.

2. Model Domain and Meteorological Input

The LDEQ used a sufficiently large modeling domain for Baton Rouge

to ensure that the model captures the movement of ozone episodes as a

result of the VOC and NOX emissions emitted from the surface

sources. Meteorological data were collected from numerous monitoring

stations in the area. The LDEQ followed the methods described in the

UAM user's guides to develop model inputs for wind field data, mixing

heights, temperature, and meteorological scalars for the areas.

3. Emissions Inventory

The Baton Rouge modeling exercises were conducted using VOC and

NOX emission inventories compiled by survey and direct measurement

by the LDEQ. The modeling emissions inventories are composed of point

source, area, on-road mobile, off-road mobile, and biogenic emissions.

Where applicable, emissions were adjusted for pertinent conditions

related to the episode day to be modeled, thus producing day-specific

emissions. The State followed the EPA's procedures for developing

episode-specific emission inventories.

The EPA's section 182(f) guidance explains that, in general, the

purpose of the section 182(f) requirements for NOX is related to

attainment of the ozone standard, which suggests that an analysis be

focussed on the time that attainment of that standard is required. For

the purpose of a section 182(f) modeling demonstration, this means that

the projected emissions inventory for the attainment year should be

used.

For Baton Rouge, the 1999 attainment year modeling inventory was

developed from the 1990 base year emission inventory and adjusted to

reflect the projected conditions for the attainment year. Demographic

and econometric forecasting methods were employed to project activities

levels to 1999, which, in turn, were used to develop a projected

emissions inventory for 1999. The State then applied the VOC emission

reductions that are projected to be realized through 1996 from the

control regulations contained in the Baton Rouge 15 percent ROP SIP

submitted to the EPA on November 15, 1994, and the NOX controls

implemented between 1990 and 1994 due to facilities' voluntary

participation in the early NOX reduction program. The 1999

inventories did not incorporate any additional NOX emission

reductions that would have been achieved through implementation of the

NOX RACT, NSR, general conformity, or NOX-related I/M

provisions.

4. Model Performance

For Baton Rouge, both graphical and statistical performance

measures were used to evaluate the model. Using these analyses, the

predicted results from the model were compared to the observed results

for each episode. These analyses indicated that, overall, the model

performed satisfactorily for the three episodes used for the UAM

demonstration.

5. Section 182(f) Demonstration

The EPA's section 182(f) guidance requires the State to model three

emission reduction scenarios to evaluate the benefits of NOX

reductions: (1) Substantial VOC reductions; (2) substantial NOX

reductions; and (3) both VOC and NOX reductions.

For the section 182(f) demonstration, the LDEQ modeled the three

emission reduction scenarios for all three episodes using the 1999

projected emission inventory, which includes the voluntary early (1990-

1994) point

[[Page 43103]]

source NOX reductions and the VOC emission controls to be

implemented through 1996 (i.e., 15 percent ROP). The LDEQ modeled the

scenarios using across-the-board reductions in the projected VOC and

NOX point source emission inventories. The State first modeled

substantial NOX and VOC emission reductions as follows: a 100

percent reduction in point source VOC emissions alone; a 100 percent

reduction in point source NOX emissions alone; and a 100 percent

reduction in both VOC and NOX emissions combined. This reduction

represents approximately 46 percent of the total projected

anthropogenic VOC emissions and approximately 57% of the total

projected NOX emissions. The State also modeled smaller across-

the-board reductions in the projected VOC and NOX point source

emissions of 25%, 50%, and 75% separately and then combined in order to

more accurately characterize near-term VOC and NOX control

scenarios.

As explained in the EPA's section 182(f) guidance, the EPA believes

it is appropriate to focus this analysis on the areawide maximum 1-hour

predicted ozone concentration, since this value is critical for the

attainment demonstration. For all three episodes, the controlling day

showed that the domain-wide predicted maximum ozone concentrations are

lowest when only VOC reductions are modeled. In contrast, further

NOX reductions increase the domain-wide maximum ozone

concentrations. Please refer to the EPA's Technical Support Document

for more detailed information.

Proposed Rulemaking Action

In this action, the EPA proposes to approve the section 182(f)

NOX exemption petition submitted by the State of Louisiana for the

Baton Rouge ozone nonattainment area. If finally approved, the

exemption would stop the mandatory sanctions clock started on July 1,

1994, under section 179(a), as a result of the EPA's finding of failure

to submit the NOX RACT SIP. Pursuant to section 179(a), if within

18 months after the finding of failure to submit, the State has not

made a complete submittal or received full approval for a section

182(f) NOX exemption, the EPA would be required to impose the

requirement to provide two-to-one NSR offsets. If the State has not

corrected its deficiency within six months after imposing the offset

sanction, the EPA would impose a second sanction, on highway funding.

Any sanction the EPA imposes must remain in place until the EPA

determines that the State has corrected the deficiency. In addition,

the finding of failure to submit triggered the 24-month clock for the

EPA to impose a Federal Implementation Plan as provided under section

110(c)(1) of the CAA. It should be noted that, if finally approved, the

section 182(f) exemption would not affect any other sanctions clocks

that might be running at that time for findings issued for other

mandatory submittals.

The EPA believes that all section 182(f) exemptions that are

approved should be approved only on a contingent basis. As described in

the EPA's NOX Supplement to the General Preamble (57 FR 55628,

November 25, 1992), the EPA would rescind a NOX exemption in cases

where NOX reductions were later found to be beneficial in the

area's attainment plan. That is, a modeling based exemption would last

for only as long as the area's modeling continued to demonstrate

attainment without the additional NOX reductions required by

section 182(f).

If the EPA later determines that NOX reductions are beneficial

based on new photochemical grid modeling in an area initially exempted,

the area would be removed from exempt status and would be required to

adopt NOX RACT and the NOX provisions of the NSR, I/M, and

general conformity rules except to the extent that modeling shows

NOX reductions to be ``excess reductions.'' In the rulemaking

action which removes the exempt status, the EPA would specify a

schedule for States to adopt the NOX RACT and NSR rules and for

sources to comply with the NOX RACT emission limits.

In summary, the UAM modeling results for the Baton Rouge

nonattainment area indicate that additional NOX reductions as well

as NSR control of any NOX increases related to expected growth

would not contribute to attainment of the ozone standard by 1999. The

EPA therefore proposes to approve a NOX exemption for the Baton

Rouge area. This exemption will remain effective for only as long as

modeling continues to show that NOX control activities would not

contribute to attainment in the Baton Rouge nonattainment area.

Request for Public Comments

The EPA requests comments on all aspects of this proposal. As

indicated at the outset of this action, the EPA will consider any

comments received by September 18, 1995.

Regulatory Process

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

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

significant economic 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.

Approvals of NOX exemption petitions under section 182(f) of

the CAA do not create any new requirements. Therefore, because the

Federal approval of the petition does not impose any new requirements,

the EPA certifies that it does not have a significant impact on

affected small entities. Moreover, due to the nature of the Federal-

State relationship under the CAA, preparation of a regulatory

flexibility analysis would constitute Federal inquiry into the economic

reasonableness of State action. The CAA forbids the EPA to base its

actions concerning SIP's on such grounds [Union Electric Co. v. U.S.

E.P.A., 427 U.S. 246, 256-66 (S. Ct. 1976); 42 U.S.C. 7410(a)(2)].

Unfunded Mandates

Under sections 202, 203, and 205 of the Unfunded Mandates Reform

Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22,

1995, EPA must assess whether various actions undertaken in association

with proposed or final regulations include a Federal mandate that may

result in estimated costs of $100 million or more to the private

sector, or to State, local, or tribal governments in the aggregate.

EPA's proposed action would relieve requirements otherwise imposed

under the CAA and, hence, would not impose any federal

intergovernmental mandate, as defined in section 101 of the Unfunded

Mandates Act. This action also would not impose a mandate that may

result in estimated costs of $100 million or more to either State,

local or tribal governments in the aggregate, or to the private sector.

Executive Order 12866

The Office of Management and Budget has exempted this action from

review under Executive Order 12866.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Nitrogen dioxide, Ozone, Volatile organic

compounds.

[[Page 43104]]

Dated: August 14, 1995.

Carol M. Browner,

Administrator.

40 CFR part 52 is proposed to be amended as follows:

1. The authority citation for part 52 continues to read as follows:

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

Subpart T--Louisiana

2. Section 52.992 is proposed to be amended by adding paragraph (b)

to read as follows:

Sec. 52.992 Area-wide nitrogen oxides (NOX) exemptions.

* * * * *

(b) The LDEQ submitted to the EPA on November 17, 1994, a petition

requesting that the Baton Rouge ozone nonattainment area be exempted

from the NOX control requirements of section 182(f) of the CAA. In

addition, supplemental information was submitted to the EPA by the LDEQ

on January 26, 1995, June 6, 1995, and June 16, 1995. The Baton Rouge

nonattainment area consists of East Baton Rouge, West Baton Rouge,

Point Coupee, Livingston, Iberville, and Ascension parishes. The

exemption request was based on photochemical grid modeling which shows

that reductions in NOX would not contribute to attainment in the

nonattainment area. On (insert date 60 days after date of final

approval), the EPA approved the State's request for an areawide

exemption from the following requirements: NOX new source review,

NOX reasonable available control technology, NOX general

conformity, NOX inspection and maintenance requirements.

[FR Doc. 95-20526 Filed 8-17-95; 8:45 am]

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