Approval and Promulgation of Air Quality Implementation Plans; Richmond, VirginiaNOINFX Exemption Petition

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[VA 0054-5006a; FRL-5441-1]

Approval and Promulgation of Air Quality Implementation Plans;

Richmond, Virginia--NOX Exemption Petition

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing to approve a request for an exemption

from the oxides of nitrogen (NOX) reasonably available control

technology (RACT) requirement of the Clean Air Act (Act) for the

Richmond moderate ozone nonattainment area. The exemption request,

submitted by the Commonwealth of Virginia's Department of Environmental

Quality, is based upon the most recent three years of ambient air

monitoring data which demonstrate that additional reductions of

NOX would not contribute to attainment of the National Ambient Air

Quality Standard (NAAQS) for ozone in the area. The intended effect of

this action is to propose approval of a request for an exemption from

the NOX RACT requirement for the Richmond moderate ozone

nonattainment area. This action is being taken under section 182(f) of

the Clean Air Act. Elsewhere in today's Federal Register, EPA has

published an interim final determination to stay and defer sanctions

for the duration of EPA's rulemaking process on the exemption petition.

DATES: Comments must be received on or before April 18, 1996.

ADDRESSES: Comments may be mailed to Marcia L. Spink, Associate

Director, Air Programs, Mailcode 3AT00, U.S. Environmental Protection

Agency, Region III, 841 Chestnut Building, Philadelphia, Pennsylvania

19107. Copies of the documents relevant to this action are available

for public inspection during normal business hours at the Air,

Radiation, and Toxics Division, U.S. Environmental Protection Agency,

Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107.

Copies of the documents relevant to this action are available for

public inspection during normal business hours at the EPA address

above.

FOR FURTHER INFORMATION CONTACT: Christopher H. Cripps, (215) 597-0545,

at the EPA Region III address above or via e-mail at

[email protected]. While information may be requested

via e-mail, comments must be submitted in writing to the EPA Region III

address above.

SUPPLEMENTARY INFORMATION: On December 18, 1995, the Virginia

Department of Environmental Quality requested that the Richmond ozone

nonattainment area be exempt from the NOX RACT requirement of

section 182(f) of the Act.

Background

The air quality planning requirements for the reduction of NOX

emissions are set out in section 182(f) of the Act. Section 182(f) of

the Act requires states with areas designated nonattainment for ozone

and classified as moderate and above to impose the same control

requirements for major stationary sources of NOX as apply to major

stationary sources of volatile organic compound (VOC) emissions.

Section 182(f) provides further that these NOX requirements do not

apply to areas outside an ozone transport region if EPA determines that

additional reductions of NOX would not contribute to attainment in

such areas. In an area that did not implement the section 182(f)

NOX requirements, but did attain the ozone standard as

demonstrated by ambient air monitoring data [consistent with 40 CFR

Part 58 and recorded in the Aerometric Information Retrieval System

(AIRS)], it is clear that the additional NOX reductions required

by section 182(f) did not contribute to attainment of the NAAQS.

On July 8, 1994, EPA notified the Governor of Virginia that the

Commonwealth had failed to submit a NOX RACT SIP revision for the

Richmond ozone nonattainment area. This finding commenced the sanctions

process outlined by section 179 of the Act as implemented by 40 CFR

52.31. (See 59 FR 39832, August 4, 1994). The two to one (2:1) offset

sanction has been in effect in the Richmond ozone nonattainment area as

of January 8, 1996 as a result of the July 8, 1994 finding and cannot

be lifted until either a NOX RACT SIP is received by EPA and

deemed complete or a NOX waiver under section 182(f) is granted.

In the Final Rules section of today's Federal Register, EPA has

published an interim final determination to stay and defer sanctions

for the duration of EPA's rulemaking process on the exemption petition.

The Commonwealth of Virginia could have submitted a NOX RACT

regulation to stop the sanction clock resulting from the July 1994

finding since it had started the process to adopt a NOX RACT

regulation for the Richmond ozone nonattainment area. A public hearing

was held on August 28, 1995 to amend

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the existing NOX RACT regulation to extend the applicability of

Part IV, Rule 4-4 Operations, section 120-04-0408 entitled ``Standard

for nitrogen oxides'' to sources with a potential to emit of 100 or

more tons per year of NOX to the Richmond ozone nonattainment

area. This amendment to the existing NOX RACT regulation was not

adopted and submitted to EPA.

The criteria established for the evaluation of an exemption request

from the section 182(f) requirements are set forth in two EPA memoranda

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

and Standards, issued on May 27, 1994 and February 8, 1995, both

entitled, ``Section 182(f) Nitrogen Oxides (NOX) Exemptions-

Revised Process and Criteria'', and an EPA guidance document entitled

``Guidelines for Determining the Applicability of Nitrogen Oxides

Requirements Under Section 182(f),'' dated December 1993, from EPA's

Office of Air Quality Planning and Standards, Air Quality Management

Division.

State Petition

On December 18, 1995, the Commonwealth of Virginia's Department of

Environmental Quality submitted a NOX exemption petition that

would exempt the Richmond ozone nonattainment area from the NOX

RACT requirement under section 182(f) of the Act. The exemption request

is based upon ambient air monitoring data for 1993, 1994, and 1995,

which demonstrate that the NAAQS for ozone has been attained in the

area without additional reductions of NOX.

EPA Analysis of the Petition

An exceedance of the ozone NAAQS occurs when the daily-maximum,

hourly ozone value exceeds 0.12 parts per million (ppm). A violation of

the ozone NAAQS occurs when the average number of expected exceedances,

which is determined by using the procedure of 40 CFR Part 51, Appendix

H, is greater than 1.0 at any one ozone monitoring site in the area

during a three year period. The Richmond ozone nonattainment area

contains four monitors for measuring ambient concentrations of ozone.

Information on the monitors and on the number of exceedances for 1993

through 1995 are detailed in the technical support document (TSD).

Appendix C of the TSD provides calculations of the estimated number of

exceedances for each monitor, as well as the three-year average number

of expected exceedances. The sites with the greatest number of expected

exceedances for the period from 1993 to 1995 were the monitors located

in Charles City County and Hanover County. Both have an annual average

exceedance value of 1.0. Three exceedances were recorded at the monitor

in Charles City County during 1993, but no exceedances were recorded in

either 1994 or 1995. The monitor in Hanover County recorded one

exceedance per year for the period from 1993 to 1995. Both the monitor

in Charles City County and the monitor in Hanover County have an

average, annual number of expected exceedances that does not exceed

1.0. Only one exceedance was recorded during 1995 at the monitor in

Henrico County for the period from 1993 to 1995. The monitor in

Chesterfield County recorded one exceedance in 1993, none in 1994 and

one in 1995. Thus, the Richmond ozone nonattainment area is currently

not recording any violations of the air quality standard for ozone.

EPA has reviewed the ambient air monitoring data for ozone

submitted by the Commonwealth of Virginia in support of the exemption

request and has determined that a violation of the ozone NAAQS has not

occurred in the Richmond ozone nonattainment area for the relevant

three year period. Because the ambient air data for Richmond adequately

demonstrates that the nonattainment area is meeting the ozone NAAQS,

and the exemption request for the area meets the applicable criteria

contained in the EPA policy and guidance documents referenced above,

the petition is approvable.

Once a petition has been granted, but during the period while the

area is still designated nonattainment for ozone, the continuation of

the section 182(f) exemption is contingent upon continued monitoring

that demonstrates continued attainment of the ozone NAAQS in the entire

Richmond ozone nonattainment area. If there is a violation of the ozone

NAAQS in any portion of the Richmond ozone nonattainment area, the

exemption will no longer be applicable as of the date of such

determination as provided in a notice in the Federal Register. A

determination that the NOX exemption no longer applies would mean

that NOX requirements would once more be applicable to the

affected area. EPA believes some reasonable period of notice is

necessary to provide major stationary sources subject to the RACT

requirements time to purchase, install, and operate any required

controls. Accordingly, the Commonwealth may provide sources a

reasonable time period to meet the RACT emission limits after the EPA

determination that NOX RACT requirements are necessary. EPA

expects the time period to be as expeditious as practicable, but in no

case longer than 24 months.

Sanctions

If EPA takes final action approving the December 18, 1995 exemption

petition, then the Richmond ozone nonattainment area would not be

subject to the NOX RACT requirement for the duration of the

exemption. Further, approval of the December 18, 1995 exemption

petition would stop the application of the offset sanction imposed on

January 8, 1996 and defer application of further sanctions contingent

on continued attainment of the ozone NAAQS. If, prior to the area being

redesignated to attainment, the NOX exemption is revoked due to a

monitored violation of the NAAQS, EPA believes it is appropriate to

provide the State a reasonable period of time before the re-application

of sanctions would become effective. EPA's notice in the Federal

Register of the waiver revocation would address when sanctions would be

re-applied.

Other Environmental Effects

While EPA is proposing to waive the requirements to control

NOX emissions in the Richmond ozone nonattainment area on the

basis that NOX emission reductions would not contribute to

attainment of the ozone NAAQS in Richmond, EPA recognizes that there

are other benefits to controlling NOX. These benefits include

reducing acid deposition, reducing nitrogen deposition in sensitive

estuaries, and their watersheds, in particular the Chesapeake Bay, and

mitigating ozone nonattainment problems further downwind. The EPA has

performed several simulations using the Regional Oxidant Model (ROM)

analyzing alternative regional emissions control strategies for the

Ozone Transport Commission (OTC). Several of the major findings of

these OTC/EPA ROM simulations were: (1) From a regional perspective,

NOX reductions generally provide greater benefits than VOC

reductions; (2) combined regional NOX controls, with urban VOC

controls, may be an effective strategy; (3) the controls mandated by

the Act are estimated to effectively reduce ozone concentrations, but

will be insufficient to achieve the NAAQS throughout the ozone

transport region (OTR); and (4) extending NOX controls to outside

of the OTR may have some benefits in reducing ozone concentrations

inside the OTR depending on weather conditions.

Maintenance Benefits of NOX RACT

EPA believes that adoption and implementation of NOX RACT

controls

[[Page 11172]]

in the Richmond ozone nonattainment area would assist maintenance of

the ozone NAAQS in the Richmond area by compensating for future growth

in point, area and mobile source NOX emissions. Consequently, the

Commonwealth of Virginia may choose, at any time, to implement such

NOX controls by adoption and implementation of their NOX RACT

regulation for the Richmond area. Nothing in this notice or approval of

the December 18, 1995 exemption petition will preclude the Commonwealth

of Virginia from adopting a NOX RACT regulation for the Richmond

area and withdrawing the exemption petition.

Detailed descriptions of the petition addressed in this document,

and EPA's evaluation of this petition, are contained in the TSD

prepared for this action. Copies of the TSD are available from the EPA

Regional office listed in the ADDRESSES section of this document.

EPA's review of this material indicates that the Virginia petition

meets applicable requirements of the Act and EPA policy. EPA is

proposing to approve the exemption from the NOX requirements

discussed herein. EPA is soliciting public comments on the issues

discussed in this notice or on other relevant matters. These comments

will be considered before taking final action. Interested parties may

participate in the Federal rulemaking procedure by submitting written

comments to the EPA Regional office listed in the ADDRESSES section of

this document.

Proposed Action

EPA is proposing approval of Virginia's request to exempt the

Richmond moderate ozone nonattainment area from the section 182(f)

NOX RACT requirement. This proposed approval is based upon the

evidence provided by Virginia that the criteria outlined in the EPA

guidance for section 182(f) exemptions have been met for the Richmond

ozone nonattainment area. If a violation of the ozone NAAQS occurs in

the Richmond ozone nonattainment area while this area is designated

nonattainment for ozone, the exemption from the NOX RACT

requirement under section 182(f) of the Act shall no longer apply.

Final approval of Virginia's NOx exemption petition would stop

application of the offset sanction imposed on January 8, 1996 and defer

application of future sanctions on the effective date of the waiver

approval. Sanctions would then remain stopped or deferred contingent

upon continued monitoring that demonstrates continued attainment of the

ozone NAAQS in the entire Richmond ozone nonattainment area. If there

is a violation of the ozone NAAQS in any portion of the Richmond ozone

nonattainment area while this area is designated nonattainment for

ozone, the exemption will no longer be applicable as of the date of any

such determination. Should this occur, EPA will provide notice both of

the waiver revocation and of the date sanctions will re-apply in the

Federal Register. A determination that the NOx exemption no longer

applies would mean that the NOx requirements become once more

applicable to the affected area, that the sanctions would be

reinstated, and that deferred sanctions would be imposed on the date

originally due or the effective date of the notice, whichever is later.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for NOx

exemptions under section 182(f). Each request for an exemption under

section 182(f) shall be considered separately in light of specific

technical, economic, and environmental factors and in relation to

relevant statutory and regulatory requirements.

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. Exemptions under section 182(f) do not create any new

requirements, but allow suspension of the indicated requirements for

the life of the exemptions. Therefore, because the approval does not

impose any new requirements, the Administrator certifies that it does

not have a significant impact on any small entities affected.

Under Section 202 of the Unfunded Mandates Reform Act of 1995

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

must prepare a budgetary impact statement to accompany any proposed or

final rule that includes a Federal mandate that may result in estimated

costs to State, local, or tribal governments in the aggregate; or to

the private sector, of $100 million or more. Under section 205, EPA

must adopt the most cost-effective and least burdensome alternative

that achieves the objectives of the rule and is consistent with

statutory requirements. Section 203 requires EPA to establish a plan

for informing and advising any small governments that may be

significantly or uniquely impacted by the rule.

EPA has determined that the proposed approval action does not

include a Federal 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. EPA's proposed action will relieve

requirements otherwise imposed under the Clean Air Act and, hence does

not impose any Federal intergovernmental mandate, as defined in section

101 of the Unfunded Mandates Act. Accordingly, no additional costs to

State, local, or tribal governments, or to the private sector, result

from this action.

This action is not a SIP revision and is not subject to the

requirements of section 110 of the Act. The authority to approve or

disapprove exemptions from NOX requirements under section 182 of

the Act was delegated to the Regional Administrator from the

Administrator in a memo dated July 6, 1994, from Jonathan Cannon,

Assistant Administrator, to the Administrator, titled, ``Proposed

Delegation of

Authority: Exemptions from Nitrogen Oxide Requirements Under Clean

Air Act Section 182(f) and Related Provisions of the Transportation and

General Conformity Rules'--Decision Memorandum.''

The EPA's decision to approve or disapprove the Virginia petition

to exempt the Richmond ozone nonattainment area from NOx RACT

requirements will be based on whether it meets the requirements of

section 182(f) of the Clean Air Act.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Intergovernmental

relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping

requirements.

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

Dated: March 7, 1996.

Stanley L. Laskowski,

Acting Regional Administrator, Region III.

[FR Doc. 96-6465 Filed 3-18-96; 8:45 am]

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