Approval and Promulgation of Implementation Plans; New Jersey 15 Percent Rate of Progress Plan and Phase I and II Ozone Implementation Plans

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region II Docket No. NJ28-1-168, FRL-5816-8]

Approval and Promulgation of Implementation Plans; New Jersey 15

Percent Rate of Progress Plan and Phase I and II Ozone Implementation

Plans

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing action

on a State Implementation Plan (SIP) revision submitted by New Jersey

which is intended to meet several Clean Air Act requirements. EPA is

proposing approval of revisions to the 1990 base year ozone emission

inventory; the 1996 and 1999 ozone projection emission inventories;

photochemical assessment monitoring stations network; demonstration

that emissions from growth in vehicle miles traveled will not increase

motor vehicle emissions and, therefore, offsetting measures are not

necessary; modeling efforts completed to date; transportation

conformity budgets; and enforceable commitments. EPA is also proposing

conditional interim approval of New Jersey's 15 Percent Rate of

Progress Plan and the 9 Percent Reasonable Further Progress Plan. The

intended effect of this action is to approve programs required by the

Clean Air Act which will result in emission reductions that will help

achieve attainment of the national ambient air quality standard (NAAQS)

for ozone.

DATES: Comments must be received on or before May 30, 1997.

ADDRESSES: All comments should be addressed to: Ronald Borsellino,

Chief, Air Programs Branch, Environmental Protection Agency, Region II

Office, 290 Broadway, 25th Floor, New York, New York 10007-1866.

Copies of the New Jersey submittals and EPA's Technical Support

Document are available at the following addresses for inspection during

normal business hours:

Environmental Protection Agency, Region II Office, Air Programs Branch,

290 Broadway, 25th Floor, New York, New York 10007-1866

and

New Jersey Department of Environmental Protection, Office of Air

Quality Management, Bureau of Air Quality Planning, 401 East State

Street, CN418, Trenton, New Jersey 08625

FOR FURTHER INFORMATION CONTACT: Paul R. Truchan, Air Programs Branch,

Environmental Protection Agency, 290 Broadway, 25th Floor, New York,

New York 10007-1866, (212) 637-4249

SUPPLEMENTARY INFORMATION:

I. Introduction/Background

Section 182 of the Clean Air Act (Act) specifies the required State

Implementation Plan (SIP) submissions and requirements for areas

classified as nonattainment for ozone and when these submissions and

requirements are to be submitted to EPA by the states. EPA has issued

the ``General Preamble for the Implementation of Title I of the Clean

Air Act Amendments of 1990'' (General Preamble) describing EPA's

preliminary views on how EPA intends to review SIPs and SIP revisions

submitted under Title I of the Act, [see generally 57 FR 13498 (April

16, 1992) and 57 FR 18070 (April 28, 1992)]. Because EPA is describing

its interpretations here only in broad terms, the reader should refer

to the General Preamble for a more detailed discussion of the

interpretations of Title I advanced in today's proposal and the

supporting rationale.

New Jersey is divided into four ozone nonattainment areas: one

classified as marginal--the Allentown Bethlehem

[[Page 23411]]

Easton Area; one classified as moderate--the Atlantic City Area; and

two classified as severe--the New York, Northern New Jersey, Long

Island Area, and the Philadelphia, Wilmington, Trenton Area. New Jersey

has met the requirements of the Act for the marginal area and EPA has

determined that this area has attained the ozone standard (October 6,

1994, 59 FR 50848). For the moderate Atlantic City Area, EPA has found

that air quality data indicates that this area has attained the

standard and that a 15 Percent Rate of Progress (ROP) Plan and an

attainment demonstration are not needed. EPA will be publishing a

separate Federal Register document for the Atlantic City Area which

will discuss the ozone air quality data and implications and waive the

15 Percent ROP Plan requirement. This finding is contingent on New

Jersey continuing to conduct air quality monitoring and that this data

continues to demonstrate attainment. It should be noted that should the

Atlantic City area monitor a violation of the standard prior to being

redesignated to attainment, the area would have to address all

pertinent Act requirements including a new 15 Percent ROP Plan and the

State would have to submit them as a SIP revision.

The two severe nonattainment areas are the primary subject of this

Federal Register action.

II. State Submittal

On December 31, 1996, Commissioner Shinn of the New Jersey

Department of Environmental Protection (NJDEP) submitted to EPA a major

revision to the SIP to meet requirements related to attainment of the

national ambient air quality standards (NAAQS) for ozone. This was

supplemented on February 25, 1997. These submittals address the

requirements for the two severe ozone nonattainment areas--the New

York, Northern New Jersey, Long Island Area, and the Philadelphia,

Wilmington, Trenton Area. For the purposes of this action these areas

will be referred to as, respectively, the Northern New Jersey ozone

nonattainment area (NAA) and the Trenton NAA. New Jersey's two

submittals revised the previously submitted 15 Percent ROP Plan dated

November 15, 1993. In addition, these revisions are intended to fulfill

EPA's Phase I requirement (``Ozone Attainment Demonstrations,'' March

2, 1995 memo from Mary Nichols) and includes the following: revisions

of the 1990 base year ozone emission inventory; the 1996 and 1999 ozone

projection emission inventories; 9 Percent Reasonable Further Progress

(RFP) Plan; contingency measures; photochemical assessment monitoring

stations network; demonstration that emissions from growth in vehicle

miles traveled will not increase motor vehicle emissions and,

therefore, offsetting measures are not necessary; modeling efforts

completed to date; enforceable commitments for Phase II; and

transportation conformity budgets. EPA will be acting on the

contingency measures in a separate Federal Register document.

III. Clean Air Act Requirements

A. Phase I Elements

1. Revisions to the 1990 Base Year Emissions Inventory

Sections 172(c)(3) and 182(b)(1) of the Act require that SIP

revisions for 15 Percent ROP and 9 Percent RFP Plans include

comprehensive, accurate, current inventories of actual emissions from

all sources of relevant pollutants in the nonattainment area. Because

the approval of such inventories is necessary for an area's 15 Percent

ROP Plan and the Attainment Demonstration, the emissions inventory must

be approved prior to or with the 15 Percent ROP Plan submission.

EPA previously approved New Jersey's 1990 base year inventory on

October 2, 1995 (60 FR 51351). In the Phase I SIP submittal, which

includes the 15 and 9 Percent plans, New Jersey has made minor

revisions to the approved 1990 base year emission inventory. These

revisions are summarized below. The reader is referred to the Technical

Support Document for additional details.

The major point source inventory was revised to reflect changes due

to more accurate information collected from major oxides of nitrogen

(NOX) emitters in New Jersey as part of the Ozone Transport

Commission NOX Baseline Project and further quality

assurance of New Jersey's emissions data. The highway mobile source

inventory was revised to reflect different methodology used to

calculate highway mobile source emissions. New Jersey originally used

the Highway Performance Monitoring System (HPMS) to estimate vehicle

miles traveled (VMT), but now uses the more comprehensive,

Transportation Demand Model. There were no changes to the minor point

sources, area sources, off-highway mobile sources, and biogenic sources

portion of the emission inventory.

Tables 1A and 1B contain the revised 1990 base year volatile

organic compounds (VOC), NOX, and carbon monoxide (CO)

emission inventories for the Northern New Jersey and Trenton NAAs:

Table 1A.--Northern New Jersey NAA, 1990 Base Year, 1996 and 1999 Projection Year Inventories; Ozone Seasonal

VOC, NOX, and CO Emissions (tons/day)

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

Highway Off-highway

Pollutant Major point Minor point Area mobile mobile Biogenic Total

sources sources sources sources sources sources

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

Revised 1990 Base Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. 238 164 123 297 137 210 b 959

NOX.................. 486 44 9 332 141 N/A 1012

CO................... 73 8 33 2371 974 N/A 3459

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

1996 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. a212 163 125 247 140 N/A 887

NOX.................. 459 42 9 305 143 N/A 958

CO................... 69 7 33 1812 993 N/A 2914

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

1999 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. a216 167 126 241 141 N/A 891

NOX.................. 482 43 9 301 144 N/A 979

[[Page 23412]]

CO................... 72 8 34 1662 1002 N/A 2778

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

N/A = not applicable

a With 1993 rule effectiveness factors applied.

b Rate of Progress base year emission inventory (without biogenic source emissions).

Note: Numbers in a table are rounded to nearest whole number.

Table 1B.--Trenton NAA, 1990 Base Year, 1996 and 1999 Projection Year Inventories Ozone Seasonal VOC, NOX, and

CO Emissions (tons/day)

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

Highway Off-highway

Pollutant Major point Minor point Area mobile mobile Biogenic Total

sources sources sources sources sources sources

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

Revised 1990 Base Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. 112 61 37 103 46 203 b 359

NOX.................. 278 9 3 115 41 N/A 446

CO................... 55 1 14 686 314 N/A 1070

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

1996 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. a 86 61 39 89 48 N/A 323

NOX.................. 264 8 3 105 43 N/A 423

CO................... 53 1 14 575 330 N/A 973

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

1999 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)

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

VOC.................. a 88 63 40 89 49 N/A 329

NOX.................. 276 9 3 104 44 N/A 436

CO................... 54 1 15 543 338 N/A 951

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

a With 1993 rule effectiveness factors applied.

b Rate of Progress base year emission inventory (without biogenic source emissions).

Note: Numbers in a table are rounded to nearest whole number.

The revisions have been made in accordance with EPA guidance.

Therefore, EPA is proposing to approve the revisions to the 1990 base

year VOC, NOX, and CO emission inventories for the Northern

New Jersey and Trenton ozone NAAs.

2. 1996 Projection Year Inventory

A projection of 1996 man-made emissions is required to determine

the reductions needed for the 15 Percent ROP Plan. The 1996 projection

year emission inventory is calculated by multiplying the 1990 ROP base

year inventory by factors which estimate growth from 1990 to 1996. A

specific growth factor for each source type in the inventory is

required since sources typically grow at different rates.

The difference between the 1990 ROP base year inventory estimates

and the 1996 emissions projection is the emissions growth estimate.

Total 1996 growth for the four source categories including the

emissions offsets is estimated to be a reduction of 72 tons per day

(tpd) in the Northern New Jersey NAA and a reduction of 36 tpd in the

Trenton NAA. In addition, the 1996 projection year inventory reflects

1993 rule effectiveness factors. The reader is referred to the

technical support document for further details.

Projection Methodology. Major Point Sources. For the major point

source category, New Jersey projected emissions to 1996 using value

added data available at the two-digit Standard Industrial

Classification (SIC) Code level from 1984 to 1991. For the years 1987

to 1991, value added data showed a sharp decline. In extrapolating to

determine the 1996 value added, New Jersey constrained these growth

rates at a 1.0 percent decline each year rather than the larger

predicted decline to prevent any significant under-prediction of the

1996 emissions. For cases where value added data were not available,

New Jersey used a State average to project emissions for those

remaining SIC codes.

Since value added is one of the preferred growth indicators to use,

as outlined in EPA's ``Procedures for Preparing Emissions

Projections,'' July 1991, EPA finds New Jersey's 1996 major point

source projection methodology to be acceptable.

Minor Point Sources. For the minor point source category, New

Jersey projected emissions to 1996 using value added data available at

the two-digit SIC Code level for all categories with the following

exceptions. For traffic paints, New Jersey used 1996 lane mile growth

rates. For gasoline handling categories (such as gasoline unloading,

gasoline tank breathing, gasoline refueling, gasoline transit by rail

car, and gasoline transit by truck), New Jersey used daily VMT growth

rates to project emissions to 1996.

Since value added is one of the preferred growth indicators, EPA

finds New Jersey's 1996 minor point source projection methodology to be

acceptable. The methods used for the exceptions above are also

acceptable.

Area Sources. For the area source category, New Jersey projected

emissions to 1996 using population growth rates. This is in accordance

with EPA's recommended growth indicators for projecting emissions for

area source categories outlined in ``Procedures for

[[Page 23413]]

Preparing Emissions Projections,'' July 1991. EPA finds New Jersey's

area source projection methodology to be acceptable.

Highway Mobile Sources. For the highway mobile source category, New

Jersey projected emissions to 1996 using VMT growth rates. New Jersey

used zonal transportation demand models to model VMT. EPA finds New

Jersey's methodology for projecting highway mobile sources to be

acceptable.

Off-highway Mobile Sources. For the off-highway mobile source

category, New Jersey projected emissions using population growth rates

for all subcategories with one exception, the aircraft category. For

the aircraft category, emissions were projected to 1996 using landing

and takeoff operations. EPA finds New Jersey's methodology for

projecting off-highway mobile sources to be acceptable.

Tables 1A and 1B show the 1996 and 1999 projected emissions using

the above-mentioned growth indicators/methodologies. States are

required to account for banked emission offsets which will be used

during the period covered by the 15 Percent ROP Plan. New Jersey did

this and accounted for 5 tpd of pre-1990 emissions offsets in the

Northern New Jersey NAA and 3 tpd of pre-1990 emissions offsets in the

Trenton NAA.

The 1996 projection year emission inventories were calculated in

accordance with EPA guidance. Therefore, EPA is proposing to approve

the 1996 projection year VOC, NOx, and CO emission inventories for the

Northern New Jersey and Trenton ozone NAAs.

3. 1999 Projection Year Inventory

A projection of 1999 man-made emissions is required for the 9

Percent RFP calculation. The calculation is made by multiplying the

1996 projection year inventory by factors which estimate growth from

1996 to 1999. A specific growth factor for each source type in the

inventory is required since sources typically grow at different rates.

The difference between the 1996 projection year inventory and the

1999 emissions projection is the emissions growth estimate. Total

growth for the four source categories is estimated at 5 tpd in the

Northern New Jersey NAA and 5 tpd in the Trenton NAA. In addition, the

1999 projection year inventory reflects 1993 rule effectiveness

factors. The reader is referred to the technical support document for

further details.

Projection Methodology. Major Point Sources. For the major point

source category, New Jersey projected emissions from 1996 to 1999 using

historical and projected data for the years 1973, 1979, 1983, 1988, and

every fifth year from 1995 to 2040. These data were obtained from the

United States Department of Commerce, Bureau of Economic Analysis

(earnings data). The data for the relevant years, i.e., 1996 and 1999,

were obtained by interpolating between the two closest years.

Since the use of earnings data is one of the preferred growth

indicators, as outlined in EPA's ``Procedures for Preparing Emissions

Projections,'' July 1991, EPA finds New Jersey's 1999 major point

source projection methodology to be acceptable.

Minor Point Sources. For the minor point source category, New

Jersey projected emissions to 1999 using earnings data available at the

two-digit SIC code level for all categories with two exceptions,

traffic paint and gasoline handling. Since the use of earnings data is

one of the preferred growth indicators, EPA finds New Jersey's 1999

minor point source projection methodology to be acceptable.

Unlike 1996, for which New Jersey used lane miles as a growth

indicator for traffic paints, New Jersey did not project any growth in

traffic paint emissions to 1999 since there were no projected lane mile

data available for 1999. For gasoline handling categories (such as

gasoline unloading, gasoline tank breathing, gasoline refueling,

gasoline transit by rail car, and gasoline transit by truck), as done

for 1996, New Jersey used daily VMT growth rates to project emissions

to 1999. These approaches are also acceptable.

Area Sources. The 1996 area source projection methodology was also

used for 1999 projections and is therefore, acceptable.

Highway Mobile Sources. The 1996 highway mobile source projection

methodology was also used for 1999 projections and is therefore,

acceptable.

Off-highway Mobile Sources. The 1996 off-highway projection

methodology was also used for 1999 projections and is therefore,

acceptable.

The 1999 projection year emission inventories have been calculated

in accordance with EPA guidance. Therefore, EPA is proposing to approve

the 1999 projection year VOC, NOX, and CO emission

inventories for the Northern New Jersey and Trenton ozone NAAs.

4. 15 Percent Rate of Progress Plan

Section 182(b)(1) of the Act as amended in 1990 requires ozone

nonattainment areas with classifications of moderate and above to

develop plans to reduce area-wide VOC emissions by 15 percent from a

1990 adjusted baseline. The plans were to be submitted by November 15,

1993 and the reductions were required to be achieved within six years

of enactment or by November 15, 1996. The Act also sets limitations on

the creditability of certain types of reductions. Specifically, states

cannot take credit for reductions achieved by Federal Motor Vehicle

Control Program (FMVCP) measures (new car emissions standards)

promulgated prior to 1990 and Reid Vapor Pressure (RVP) programs

promulgated prior to 1990. Furthermore, the Act does not allow credit

for corrections to vehicle Inspection and Maintenance Programs (I/M) or

corrections to reasonably available control technology (RACT) rules

(RACT fix-ups) that were required to have been made to meet

requirements in effect prior to 1990.

The target emission reductions were calculated in accordance with

EPA guidance. The reader is referred to ``Guidance On The Adjusted Base

Year Emissions Inventory and The 1996 Target For The 15 Percent Rate of

Progress Plans,'' (EPA-452/R-92-005). New Jersey's 15 Percent ROP Plan

is summarized in Table 2.

The reader should note that the differences in VOC emissions

between 1990 and 1996 as depicted in Tables 1A and 1B are not the same

as the emission reductions for the same time period depicted in Table

2, Summary of 15 Percent ROP Plan. This is because the emissions

changes between 1990 and 1996 have been adjusted for purposes of the 15

Percent ROP Plan to eliminate emission changes not creditable according

to the Act. These adjustments are explained in detail in the previously

referenced guidance.

[[Page 23414]]

Table 2.--Summary of 15 Percent ROP Plan

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

Northern New

Jersey NAA VOC Trenton NAA

(tons/day) VOC (tons/day)

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

Required VOC reductions to meet 15

Percent Plan........................... 129.82 37.18

Creditable reductions

Mobile source control measures:

Tier I vehicles..................... 1.96 0.73

Reformulated gasoline--on highway... 47.99 17.51

Reformulated gasoline--off highway.. 4.32 1.33

Enhanced inspection & maintenance... 33.08 11.91

Stationary source control measures:

Barge loading....................... 21.08 1.21

Subchapter 16--VOC RACT............. 16.34 3.75

Consumer products rule--Subchapter

23................................. 5.93 1.79

Federal HON rule.................... 0.12 0.06

Total VOC reductions............ 130.82 38.28

Surplus................................. 1.00 1.10

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

Reductions not credited in today's

action

Employer trip reduction and

transportation control measures........ 2.36 0.64

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

Measures Achieving the Projected Reductions. New Jersey has

provided a plan to achieve the reductions required for the two

nonattainment areas. The following is a concise description of each

control measure New Jersey used to achieve emission reduction credit

within its 15 Percent ROP Plan. All the State measures have been

adopted and submitted as SIP revisions. EPA has previously approved

some of the control measures, others EPA has proposed action upon,

including the enhanced vehicle I/M program. EPA agrees with the

emission reductions projected in the State submittal except where noted

in Table 2 under the heading ``Reductions not credited in today's

action.''

Mobile source control measures. Tier I Federal Motor Vehicle

Control Program (FMVCP). EPA promulgated standards for 1994 and later

model year light-duty vehicles and light-duty trucks (56 FR 25724, June

5, 1991). Since the standards were adopted after the Clean Air Act

Amendments of 1990, the resulting emission reductions are creditable

toward the 15 percent reduction goal. EPA agrees with the emission

reductions calculated by the State due to the FMVCP.

Reformulated Gasoline. Section 211(k) of the Act requires that

after January 1, 1995 in severe and above ozone nonattainment areas,

only reformulated gasoline be sold or dispensed. This gasoline is

reformulated to burn cleaner and produce fewer evaporative emissions.

On December 6, 1991 the State requested that the entire State of New

Jersey participate in the reformulated gasoline program. EPA's approval

of this request was published in the Federal Register on March 26,

1991, 57 FR 11077. EPA agrees with the emission reductions calculated

by the State due to the sale of reformulated gasoline for both on-road

and off-road use.

Enhanced I/M. On October 31, 1996 (61 FR 56172), EPA proposed a

conditional interim approval of New Jersey's enhanced I/M program

submittal.

The reader is referred to that proposal for the details on the

enhanced I/M program and EPA's findings. That notice called for the

State to commit within 30 days to correct the major deficiencies in the

submittal by specific dates. EPA identified two major deficiencies and

dates by which the State was to address them: (1) Test procedures,

standards, and equipment specifications which were to be submitted by

January 31, 1997, and (2) program performance modeling which is to be

submitted within one year after conditional interim approval. On

November 27, 1996, New Jersey committed to submit test procedures and

equipment specifications by the date specified and program modeling by

October 30, 1997. The equipment information was received as scheduled

and is currently under review. In a separate action, EPA will be

publishing conditional interim approval of the enhanced I/M program.

New Jersey's 15 Percent ROP Plan includes I/M modeling to provide

estimates for the level of reduction expected from the program (see

Table 2). However, New Jersey's modeling was completed prior to and is

not consistent with, EPA's final guidance on the methodology to be used

for making these calculations (December 23, 1996 memo entitled

``Modeling 15% VOC Reductions from I/M in 1999--Supplemental Guidance).

Therefore, the State must commit within 30 days of the publication of

this document to submit, within 12 months of the final conditional

interim approval of the 15 Percent ROP and the 9 Percent RFP Plans,

recalculated emission reduction benefits attributable to the I/M

program for both the 15 Percent ROP Plan and the 9 Percent RFP Plan.

This recalculation must take into account actual I/M program conditions

as they are scheduled to occur, including, but not limited to, program

start date, cut points, and test type. Also, New Jersey must still

fulfill the condition in the October 31, 1996 Federal Register document

to perform modeling in order to determine if the I/M program meets the

enhanced performance standard. The State has committed to submit the

performance standard modeling by October 30, 1997.

By today's action, EPA proposes to approve emission credits for the

15 Percent ROP and 9 Percent RFP Plans on an interim basis, pending

verification of the I/M Program's performance, pursuant to section 348

of the NHSDA. This interim approval of the 15 Percent ROP and the 9

Percent RFP Plans will expire at the end of the 18 month period, and

will be replaced by appropriate EPA action based on the evaluation EPA

receives concerning the Program's performance. If the evaluation

indicates a shortfall in emission reductions compared to the remodeling

that the 15 Percent ROP and 9 Percent RFP Plans is conditioned on, the

State would need to find additional emission credits. Failure of the

State to make up for an emission shortfall from the enhanced I/M

program may subject the

[[Page 23415]]

State to sanctions and imposition of a Federal Implementation Plan.

In addition, in a separate document, EPA is taking both a limited

conditional approval of the New Jersey enhanced I/M program under

section 110 which strengthens the SIP, as well as an interim

conditional approval under section 348 of the NHDSA. The limited

approval of the enhanced I/M program will not expire at the time the

interim approval of the 15 Percent ROP and 9 Percent RFP plans and the

interim approval of the enhanced I/M program under the NHSDA expire. As

explained above, the credits provided by the I/M program on an interim

basis for those plans may be adjusted based on EPA's evaluation of the

I/M Program's performance.

Enhanced I/M ``as soon as practicable''. Section 182(b)(1) of the

Act requires that states containing ozone nonattainment areas

classified as moderate or above prepare SIPs that provide for a 15

percent VOC emissions reduction by November 15, 1996. Most of the 15

Percent ROP Plans originally submitted to EPA contained enhanced I/M

programs because this program achieves more VOC emission reductions

than most, if not all other, control strategies. However, many states

became concerned over the cost and convenience of the enhanced I/M

program as they were originally envisioned.

In a response to these concerns in September 1995, EPA finalized

revisions to its enhanced I/M rule allowing states significant

flexibility in designing I/M programs appropriate for their needs.

Subsequently, Congress enacted the NHSDA, which provides states with

more flexibility in determining the design of enhanced I/M programs.

The substantial amount of time needed by states to redesign enhanced I/

M programs, in accordance with the guidance contained within the NHSDA,

and set up the infrastructure to perform the testing program has

precluded states that revised their I/M programs from obtaining

emission reductions from such revised programs by November 15, 1996.

Given the heavy reliance by many states upon enhanced I/M programs

to help achieve the 15 percent VOC emissions reduction required under

section 182(b)(1), and the recent NHSDA and regulatory changes

regarding enhanced I/M programs, EPA recognized that it was no longer

possible for many states to achieve the portion of the 15 percent

reductions that are attributed to I/M by November 15, 1996. Under these

circumstances, disapproval of the 15 Percent ROP Plans would serve no

purpose. Consequently, under certain circumstances, EPA will propose to

allow states that pursue redesign of enhanced I/M programs to receive

emission reduction credit from these programs within their 15 Percent

ROP Plans, even though the emissions reductions from the I/M program

will occur after November 15, 1996.

Specifically, EPA can propose approval of 15 Percent ROP Plans if

the emissions reductions from the revised, enhanced I/M programs, as

well as from the other 15 Percent ROP Plan measures, will achieve the

15 percent level as soon after November 15, 1996 as practicable. To

make this ``as soon as practicable'' determination, EPA must determine

that the SIP contains all VOC control strategies that are practicable

for the nonattainment area in question and that meaningfully accelerate

the date by which the 15 percent level is achieved. EPA does not

believe that measures meaningfully accelerate the 15 percent date if

they provide only an insignificant amount of reductions.

In the case of New Jersey, the State has submitted a 15 Percent ROP

Plan that would achieve the amount of reductions needed from I/M by

November 15, 1999. New Jersey has submitted a 15 Percent ROP Plan that

achieves all other reductions by 1996. In addition, EPA is pursuing

federal rulemaking on a national scope which will result in additional

emission reductions. EPA proposes to determine that this SIP does

contain all measures, including enhanced I/M, that achieves the

required reductions as soon as practicable.

EPA has examined other potentially available SIP measures to

determine if they are practicable for New Jersey and if they would

meaningfully accelerate the date by which the area reaches the 15

percent level of reductions. In most cases New Jersey has already

adopted and implemented stationary control measures that other states

are considering or which other states have included in their 15 Percent

ROP Plans. EPA proposes to determine that the SIP does contain the

appropriate measures.

Stationary source measures. Barge loading. New Jersey has adopted a

VOC control regulation for the loading of marine vessels with gasoline.

The State submitted an adopted revision to Subchapter 16 ``Control and

Prohibition of Air Pollution by Volatile Organic Substances'' which

regulates the loading of gasoline into marine vessels to EPA on June

20, 1990. On November 10, 1992, EPA published a final rulemaking (57 FR

53440) approving the rule as a revision to the SIP. EPA agrees with the

reductions projected in the New Jersey 15 Percent ROP Plan due to the

implementation of this rule.

Subchapter 16--VOC RACT. New Jersey has submitted adopted revisions

to Subchapter 16 ``Control and Prohibition of Air Pollution by Volatile

Organic Compounds'' which regulates major sources not covered in EPA

issued control techniques guidelines (CTG) documents. This is referred

to as ``non-CTG major sources.'' It also regulates sources for which

EPA has published CTGs since 1990. On April 11, 1997 (62 FR 17766), EPA

published a proposal approving the rule as a revision to the SIP. EPA

agrees with the reductions projected in the New Jersey 15-Percent ROP

Plan due to the implementation of this rule.

Consumer Products rule--Subchapter 24. New Jersey has adopted a VOC

control regulation limiting the VOC content of designated consumer and

commercial products. The State submitted an adopted revision to

Subchapter 24 ``Control and Prohibition of Volatile Organic Compounds

from Consumer and Commercial Products'' to EPA on January 25, 1996. On

January 21, 1997 (62 FR 2984), EPA published a proposal approving the

rule as a revision to the SIP. EPA received no comments on this

proposal and is preparing a notice announcing its final action. EPA

agrees with the reductions projected in the New Jersey 15 Percent ROP

Plan due to the implementation of this rule.

Federal HON rule. On April 22, 1994 EPA promulgated Part 63,

Subpart H--National Emission Standards for Organic Hazardous Air

Pollutants for Equipment Leaks. This requires facilities which

manufacture or process organic hazardous air pollutants to develop and

implement a program for leak detection and repair. EPA agrees with the

reductions projected in the New Jersey 15 Percent ROP Plan due to the

implementation of this rule.

Measures Not Creditable in Today's Action. Employer Trip Reduction

and Transportation Control Measures. On November 15, 1993, New Jersey

submitted a SIP revision for an Employer Trip Reduction program (ETR),

as required in section 182(d)(1)(B) of the Act. EPA proposed approval

of that program on December 6, 1994 (59 FR 62646). Subsequently, the

State made changes to this program, but failed to submit these changes

to EPA as a SIP revision. On December 23, 1995, Congress repealed the

mandatory nature of the employer commute option program (which New

Jersey calls ``ETR''), allowing states discretion to implement the

program on a voluntary basis. On November 1, 1996, the New

[[Page 23416]]

Jersey Legislature repealed the State's mandatory ETR program.

On October 15, 1996, EPA published direct final approval of

revisions to New Jersey's SIP for ozone submitted by New Jersey on

November 15, 1992 and November 15, 1993 (61 FR 53624). One of the

intended effects of this action was to incorporate TCMs as part of New

Jersey's effort to attain the national ambient air quality standard for

ozone. Those TCMs included New Jersey's ETR program. On November 13,

1996, New Jersey indicated it was in the process of amending the list

of TCMs. Consequently, at New Jersey's request, EPA withdrew this

approval on December 18, 1996 (61 FR 66606).

New Jersey plans on replacing its mandatory ETR program with an

``ETR Replacement Package,'' including TCMs and transportation

technology measures, and has provided a schedule. While EPA

acknowledges that the ETR program may have achieved emission reductions

during the 1996 ozone season, the program the State implemented was not

submitted as a SIP revision and the State did not require the employers

to report on the results of their programs. Without this reporting, EPA

is unable to verify the effectiveness of the program. Because of the

uncertainties associated with both ETR and TCMs, EPA is considering the

emissions reductions associated with ETR and TCMs to be noncreditable

with respect to New Jersey's Phase I Ozone SIP at this time. EPA will

take action on the State's ``ETR Replacement Package'' once it is

submitted as a SIP revision.

15 Percent ROP Plan Evaluation. New Jersey has identified the

control measures necessary for achieving the required emission

reductions and, with the exception of enhanced I/M, all the measures

have been adopted and implemented. New Jersey may also have achieved

emission reductions from the ETR program as part of the 15 Percent ROP

Plan, but EPA is unable to verify the reductions. EPA is proposing to

find that the 15 Percent ROP Plan contains the necessary measures as

identified in Table 2 to achieve the required emission reductions. The

Plan also satisfies the requirement of achieving these reductions ``as

soon as practicable'' and there are no remaining measures which could

be implemented any sooner to offset the delay in the enhanced I/M

program. Therefore, EPA is proposing conditional interim approval of

the 15 Percent ROP Plan.

5. The 9 Percent Reasonable Further Progress Plan (24 Percent Plan)

Section 182(c)(2)(B) of the Act requires ozone nonattainment areas

with classifications of serious and above to develop plans to reduce

area-wide VOC emissions by 3 percent per year averaged over the next

three-year period (1997-1999) from a 1990 baseline. This is referred to

as the 9 Percent RFP Plan. The plan was to be submitted by November 15,

1994 and the reductions are required to be achieved by November 15,

1999. The Act also sets limitations on the creditability of certain

types of reductions.

The target emission reductions were calculated in accordance with

EPA guidance. The reader is referred to ``Guidance On The Post-1996

Rate of Progress Plan and the Attainment Demonstration,'' (EPA-452/R-

93-015). New Jersey's 9 Percent RFP Plan (New Jersey refers to this as

its 24 Percent Plan) is summarized in Table 3.

Table 3.--Summary of New Jersey 9 Percent RFP Plan

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

Northern New Jersey NAA (tons/ Trenton NAA (tons/day)

day) -------------------------------

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

VOC \1\ NOx\1\ VOC \1\ NOx\1\

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

Required VOC reductions to meet 9 Percent Plan.. 94.66 .............. 40.34 ..............

Creditable Reductions

Mobile source control measures:

Tier I vehicles............................. 12.87 29.53 4.80 10.14

Reformulated gasoline--on highway........... .............. 0.74 .............. 0.22

Reformulated gasoline--off highway.......... 0.05 .............. 0.03 ..............

Enhanced inspection & maintenance........... 3.77 33.70 1.58 10.81

National low emission vehicle program....... 0.48 0.44 0.18 0.17

Stationary source control measures:

Barge and tanker loading.................... 0.23 .............. 0.06 ..............

Subchapter 16 & 19--RACT.................... 0.17 70.92 .............. 58.21

Federal CTG--RACT........................... 0.22 .............. 0.04 ..............

Consumer products rule--Subchapter 24....... 0.05 .............. 0.05 ..............

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

Total reductions........................ 17.84 \2\ 135.33 6.74 \2\ 79.55

Shortfall....................................... 76.82 .............. 33.60 ..............

VOC equivalents from NOX substitution........... 124.48 .............. 62.63 ..............

Surplus reduction............................... 47.66 .............. 29.03 ..............

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

\1\ VOC emission reductions claimed occur from 1997 through 1999. NOX emission reductions claimed occur from

1990 through 1999.

\2\ 135 tons/day of NOX converts to 124.48 tons/day of VOC equivalent in the Northern New Jersey NAA. 79.55 tons/

day of NOX converts to 62.63 tons/day of VOC equivalent in the Trenton NAA.

Measures Achieving the Projected Reductions. New Jersey has

provided a plan to achieve the reductions required for the two

nonattainment areas. The following is a concise description of each

control measure New Jersey used to achieve the emission reduction

credit within its 9 Percent RFP Plan. All of the State's measures have

been adopted and submitted as SIP revisions. EPA has previously

approved some of the control measures, others EPA has proposed action

on, including the enhanced vehicle I/M program. EPA agrees with the

emission reductions projected in the State's submittal as they appear

in Table 3. In addition, New Jersey has shown that NOX

reductions will contribute toward attaining the ozone standard (See

section B.1., Modeling discussion below). Section 182(c)(2)(C)

therefore allows NOX reductions to be used toward meeting

RFP requirements. Table 3 includes columns showing the VOC and

NOX reductions that will result from the implementation of

the control measures.

Mobile Source Measures. Tier I Federal Motor Vehicle Control

Program. This is the same measure as contained

[[Page 23417]]

in the 15 Percent ROP Plan except it is only taking the additional

credit that would be generated for the years 1997-1999. EPA agrees with

the calculated emission reductions associated with the FMVCP.

Reformulated Gasoline. This is the same measure as contained in the

15 Percent ROP Plan except it is only taking the additional credit that

would be generated for the years 1997-1999. EPA agrees with the

calculated emission reductions associated with reformulated gasoline.

Enhanced Inspection and Maintenance. This is the same measure as

contained in the 15 Percent ROP Plan except it is only taking the

additional credit that would be generated for the years 1997-1999. EPA

agrees with the calculated emission reductions associated with

reformulated gasoline.

National Low Emissions Vehicle Program. On October 10, 1995, EPA

proposed a national low emission vehicle program (60 FR 52734) and is

soon expected to sign a final rulemaking. This would provide more

stringent tailpipe standards for cars and light-duty trucks and be a

substitute for the Ozone Transport Commission low emission vehicle

program. EPA agrees with the calculated emission reductions associated

with this program.

Stationary Source Measures. Barge and Tanker Loading. AThis is the

same measure as contained in the 15 Percent ROP Plan except it is only

taking the additional credit that would be generated for the years

1997-1999. EPA agrees with the calculated emission reductions

associated with barge and tanker controls.

Subchapter 16. This is the same measure as contained in the 15

Percent ROP Plan except it is only taking the additional credit that

would be generated for the years 1997-1999. EPA agrees with the

calculated emission reductions associated with Subchapter 16.

Subchapter 19. New Jersey has submitted adopted revisions to

Subchapter 19 ``Control and Prohibition of Air Pollution From Oxides of

Nitrogen'' which regulates combustion sources that emit NOX.

On January 27, 1997, EPA published a final rulemaking (62 FR 3804)

approving the rule as a revision to the SIP. EPA agrees with the

calculated emission reductions associated with Subchapter 19.

Federal CTG--RACT. This is the same measure as contained in the 15

Percent ROP Plan except it is only taking the additional credit that

would be generated for the years 1997-1999. EPA agrees with the

calculated emission reductions associated with the post-1990 CTG source

categories included in Subchapter 16.

Consumer Products rule--Subchapter 24. This is the same measure as

contained in the 15 Percent ROP Plan except it is only taking the

additional credit that would be generated for the years 1997-1999. EPA

agrees with the calculated emission reductions associated with

Subchapter 24.

9 Percent RFP Plan Evaluation. New Jersey has identified the

control measures necessary for achieving the required emission

reductions and, with the exception of enhanced I/M, all the measures

have been adopted and implemented. EPA is proposing to find that the 9

Percent RFP Plan contains the necessary measures as identified in Table

3 to achieve the required emission reductions. However, as discussed

under the 15 Percent ROP Plan section, the State must remodel the

effectiveness of the enhanced I/M program as it pertains to the 9

Percent RFP Plan. Therefore, EPA is proposing conditional interim

approval.

6. Analysis of Growth in Emissions Due to Increases in VMT

Section 182(d)(1)(A) of the Act requires states containing ozone

nonattainment areas classified as ``severe'' pursuant to section 181(a)

of the Act to adopt transportation control measures and transportation

strategies to offset growth in emissions from growth in VMT or number

of vehicle trips, and to attain reductions in motor vehicle emissions

(in combination with other emission requirements) as necessary to

comply with the Act's RFP milestone and attainment requirements. The

requirements for establishing a VMT offset program are discussed in the

section 182(d)(1)(A) and the General Preamble.

Section 182(d)(1)(A) requires New Jersey to offset any growth in

emissions from growth in VMT. As discussed in the General Preamble, the

purpose is to prevent a growth in motor vehicle emissions from

canceling out the emission reduction benefits of the federally mandated

programs in the Act. EPA interprets this provision to require that

sufficient measures be adopted so that projected motor vehicle VOC

emissions will never be higher during the ozone season in one year than

during the ozone season in the year before. When growth in VMT and

vehicle trips would otherwise cause a motor vehicle emissions upturn,

this upturn must be prevented by offsetting reductions. The emissions

level at the point of an upturn becomes a ceiling on motor vehicle

emissions. This requirement applies to projected emissions in the years

between the submission of the SIP revision and the attainment deadline,

and is above and beyond the separate requirements for the RFP and the

Attainment Demonstrations. The ceiling level is defined, therefore, up

to the point of an upturn, as motor vehicle emissions that would occur

in the ozone season of that year, with VMT growth, if all measures for

that area in that year were implemented as required by the Act. When

this curve begins to turn up due to growth in VMT or vehicle trips, the

ceiling becomes a fixed value. The ceiling line would include the

effects of federal measures such as new motor vehicle standards, phase

II reid vapor pressure controls, and reformulated gasoline, as well as

the Act mandated SIP requirements.

As noted previously, on October 15, 1996, EPA published direct

final approval of revisions to New Jersey's SIP for ozone submitted by

New Jersey on November 15, 1992 and November 15, 1993 (61 FR 53624). In

addition to the intended approval of New Jersey's ETR program, this

action was also intended to approve New Jersey's demonstration that

emissions from growth in vehicle miles traveled will not increase motor

vehicle emissions and, therefore, offsetting measures are not

necessary. While this approval was subsequently withdrawn at New

Jersey's request, EPA's rationale for separating the three elements of

Section 182(d)(1)(A) (i.e., offsetting growth in mobile source

emissions, attainment of the RFP reduction, and attainment of ozone

NAAQS) is outlined therein and is still valid.

Included in the 15 Percent ROP Plan, New Jersey submitted an

analysis of the growth in motor vehicle emissions due to growth in VMT:

emissions from motor vehicles are projected to continually decline from

1990 levels in both the Northern New Jersey and Trenton NAAs through

the year 2012. The attainment deadline for the Northern New Jersey NAA

is 2007 and for the Trenton NAA is 2005. Therefore, the State is not

required to implement any measures to offset growth in emissions due to

growth in VMT. Should increases occur after these dates, they would be

addressed in the Attainment Demonstration or maintenance plan. EPA is

proposing to find that the State has adequately demonstrated that

transportation control measures are not needed to offset growth in

emissions due to growth in VMT.

[[Page 23418]]

7. Photochemical Assessment Monitoring Station

Section 182(c)(1) of the Act and the General Preamble (57 FR 13515)

require that EPA promulgate rules for enhanced monitoring of ozone,

NOX and VOCs (see 58 FR 8452, February 12, 1993) and that

states classified serious and above develop and operate a photochemical

assessment monitoring station network (PAMS). NJDEP submitted its PAMS

Network Plan which included a schedule for implementation. This

submittal was reviewed and approved on January 27, 1994 by EPA and was

judged to satisfy the requirements of 40 CFR 58.40(a). NJDEP has been

establishing its PAMS network according to its approved Work Plan and

implementation schedule. EPA is proposing to approve New Jersey's PAMS

network.

B. Other Phase I Elements

1. Modeling Work Completed to Date

Photochemical grid modeling is used to support the State's

submittal in two ways: first, meet the requirements set out in EPA's

March 2, 1995 memo for a preliminary modeling analysis and to support

the State's ability to use reductions in VOC and NONOX

emission as part of its ROP and RFP Plans.

New Jersey has submitted a preliminary modeling analysis using

assumptions about transported ozone and precursors, as required by the

March 2, 1995 memo previously referenced. This analysis does not have

to show attainment of the ozone standard. Two episodes were modeled and

ozone concentrations were predicted using emission control programs

mandated by the Act plus various strategies proposed by the Ozone

Transport Commission for reduction of ozone and its precursors in the

Ozone Transport Region. Even with these programs, the modeling predicts

that the State will not attain the ozone standard. To address this, New

Jersey has actively participated in the multi-state Ozone Transport

Assessment Group as required in the March 2, 1995 policy memo.

The modeling also predicts that ozone will be reduced if emissions

of VOC or of NOX are reduced. This is based on modeling the

impact of proportionally reducing emissions of VOC and NOX

together and separately and showing that the peak ozone concentration

is reduced. Thus, emissions of either VOC and NOX can be

reduced to improve ozone air quality in New Jersey and either can be

used in the 15 Percent ROP and 9 Percent RFP Plans to the extent

allowed in the Act. EPA is proposing to accept New Jersey's modeling

efforts as fulfilling EPA's Phase I requirements.

2. Ozone Transport Commission NOX MOU

On September 27, 1994, the Ozone Transport Commission agreed to

develop a regional program to achieve significant reduction in

NOX emissions from large combustion sources. New Jersey

signed the Memorandum of Understanding (MOU) which formalized this

program. EPA's March 2, 1995 policy requires states to provide

enforceable commitment to implement the NOX MOU. New Jersey

provided a schedule for completing the rule development effort by

November 1997 which will implement the NOX MOU. EPA is

proposing to accept this as satisfying EPA's Phase I requirement for

NOX MOU.

3. Commitments to Future Action

EPA's March 2, 1995 policy requires states to provide enforceable

commitments to: (1) participate in the consultative process to address

regional transport; (2) adopt additional control measures as necessary

to attain the ozone standard, meet rate of progress requirements, and

eliminate significant contribution to nonattainment downwind; and (3)

identify any reductions that are needed from upwind areas for the area

to meet the ozone standard.

As part of the December 31, 1996 SIP revision, New Jersey made

commitments for all three of the above requirements. New Jersey is an

active participant to the Ozone Transport Assessment Group process and

chairs the Modeling and Assessment Subgroup. EPA is proposing to accept

these commitments as satisfying EPA's Phase I requirements.

4. Clean Fuel Fleet

Section 182(c)(4) requires a Clean Fuel Fleet or substitute

measure. New Jersey submitted a substitute measure on February 15, 1996

and supplemented the submittal on March 6, 1997. EPA will be taking

action on this requirement in a separate Federal Register document.

IV. Transportation Conformity Budgets

By virtue of proposing approval of the 15 Percent ROP Plan and 9

Percent RFP Plan, EPA is also proposing approval of the motor vehicle

emissions budgets for VOC and NOX. For the purpose of

transportation conformity determinations, final approval of this 15

Percent ROP Plan revision will eliminate the need for a build/no-build

test and less-than-1990 emissions test for VOC and NOX for

the 1996 analysis year. For the 1999 analysis year and later,

conformity determinations addressing VOC and NOX must

demonstrate consistency with the 9 Percent RFP Plan revision's VOC and

NOX motor vehicle emissions budget.

The tables 5 and 6 summarize New Jersey's Emission Budgets.

Table 4.--Emission Budgets for Conformity

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

VOC (tons/ NOX (tons/

day) day)

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

1996

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

North Jersey Transportation Planning Authority 164.71 270.99

Delaware Valley Regional Planning Commission

(NJ portion)................................. 52.26 79.66

South Jersey Transportation Planning

Organization................................. 29.62 32.64

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

1999

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

North Jersey Transportation Planning Authority 144.06 244.93

Delaware Valley Regional Planning Commission

(NJ portion)................................. 46.48 72.36

South Jersey Transportation Planning

Organization................................. 17.44 29.53

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

[[Page 23419]]

Table 5.--Emission Budgets for McGuire Air Force Base

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

VOC (tons/ NOX (tons/

year) year)

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

1990 Baseline................................. 1,112 1,038

1996.......................................... 1,186 1,107

1999.......................................... 1,223 1,142

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

EPA is proposing to approve New Jersey's emission budgets.

V. Phase I Findings

On July 3, 1996, EPA notified the Governor of New Jersey that EPA

was making a finding of failure to submit all the Act elements required

to fulfill the March 2, 1995 ``Ozone Attainment Demonstration'' policy

as committed to by New Jersey. EPA announced the start of the sanction

process in a July 10, 1996 Federal Register notice (61 FR 36292). With

New Jersey's submittals of December 31, 1996 and February 25, 1997

(Phase I SIP revision), and March 6, 1997 (Clean Fuel Fleets Program

SIP revision), New Jersey has now submitted all the Phase I

requirements. EPA has determined these submittals are complete and will

notify New Jersey in a letter shortly that the sanction process that

started on July 3, 1996 is terminated.

VI. Summary

EPA has evaluated these submittals for consistency with the Act,

applicable EPA regulations, and EPA policy. EPA is proposing approval

of New Jersey's: revisions to the 1990 base year ozone emission

inventory; the 1996 and 1999 ozone projection emission inventories;

photochemical assessment monitoring stations network; demonstration

that emissions from growth in vehicle miles traveled will not increase

motor vehicle emissions; modeling efforts completed to date;

transportation conformity budget; and enforceable commitments for Phase

II.

In addition, EPA is proposing conditional interim approval of New

Jersey's 15 Percent ROP Plan and the 9 Percent RFP Plan if New Jersey

commits, in writing, within 30 days of EPA's proposal to correct the

following condition. New Jersey must remodel the enhanced I/M program

to estimate the emission reductions that will result from the I/M

program as implemented. This remodeling must be completed and submitted

to EPA within one year of EPA's final action on the 15 Percent ROP and

the 9 Percent RFP Plans.

If New Jersey submits a commitment to this effect, EPA will publish

a conditional interim approval of New Jersey's 15 Percent ROP Plan and

the 9 Percent RFP Plan. EPA will consider all information submitted as

a supplement or amendment to the December 31, 1996 submittal prior to

any final rulemaking action.

If New Jersey does not make the required commitment to EPA within

30 days, EPA is today proposing in the alternative that the 15 Percent

ROP Plan and 9 Percent RFP Plan be disapproved.

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.

VII. Administrative Requirements

Executive Order 12866

This action has been classified as a Table 3 action for signature

by the Regional Administrator under the procedures published in the

Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a

July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for

Air and Radiation. The Office of Management and Budget (OMB) has

exempted this regulatory action from E.O. 12866 review.

Regulatory Flexibility 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.

Conditional approvals of SIP submittals under section 110 and

subchapter I, part D of the Act 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, EPA certifies that it does not have a significant impact

on any small entities affected. Moreover, due to the nature of the

Federal-State relationship under the Act, preparation of a flexibility

analysis would constitute federal inquiry into the economic

reasonableness of state action. The Act forbids EPA to base its actions

concerning SIPs on such grounds. Union Electric Co. v. U.S. EPA, 427

U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

section 110(k), based on the State's failure to meet the commitment, it

will not affect any existing State requirements applicable to small

entities. Federal disapproval of the State submittal does not affect

its State-enforceability. Moreover, EPA's disapproval of the submittal

does not impose a new federal requirement. Therefore, EPA certifies

that this disapproval action would not have a significant impact on a

substantial number of small entities because it does not remove

existing requirements nor does it substitute a new federal requirement.

Unfunded Mandates

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

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

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

must select 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 approval action proposed does not

include a federal mandate that may result in estimated annual costs of

$100 million or more to either State, local, or tribal governments in

the aggregate, or to the private sector. This federal action approves

pre-existing requirements under State or local law, and imposes

[[Page 23420]]

no new requirements. Accordingly, no additional costs to State, local,

or tribal governments, or to the private sector, result from this

action.

The Regional Administrator's decision to approve or disapprove the

SIP revision will be based on whether it meets the requirements of

section 110(a)(2)(A)-(K) and part D of the Act, as amended, and EPA

regulations in 40 CFR Part 51.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and

recordkeeping requirements, Volatile organic compounds.

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

Dated: April 16, 1997.

William J. Muszynski,

Deputy Regional Administrator.

[FR Doc. 97-11125 Filed 4-29-97; 8:45 am]

BILLING CODE 6560-50-P