Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; Conditional Approval of 15 Percent Reasonable-Further- Progress Plan and 1990 VOC Emission Inventory for the Pittsburgh Ozone Nonattainment Area

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[PA 098-4032; FRL-5679-3]

Approval and Promulgation of Air Quality Implementation Plans;

Pennsylvania; Conditional Approval of 15 Percent Reasonable-Further-

Progress Plan and 1990 VOC Emission Inventory for the Pittsburgh Ozone

Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing to conditionally approve the State

Implementation Plan (SIP) revision submitted by the Commonwealth of

Pennsylvania, for the Pittsburgh ozone nonattainment area, to meet the

15 percent reasonable further progress (RFP, or 15% plan), also known

as rate-of-progress (ROP) requirements of the Clean Air Act. EPA is

proposing conditional approval because the 15 percent plan submitted by

Pennsylvania for the Pittsburgh area requires additional documentation

to quantify the 15% emission reduction. The 1990 emissions inventory

for volatile organic compounds (VOCs) used in the 15% plan as the

baseline for reasonable further progress contains inconsistencies,

which must be reconciled by Pennsylvania. EPA is, therefore, proposing

conditional approval of the 1990 VOC emission inventory.

DATES: Comments on this proposed action must be postmarked by February

21, 1997.

ADDRESSES: Written comments may be mailed to David L. Arnold, Chief,

Ozone/Carbon Monoxide, and Mobile Sources Section, Mailcode 3AT21, 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. Persons interested in examining these documents

should schedule an appointment with the contact person (listed below)

at least 24 hours before the visiting day. Copies of the documents

relevant to this action are also available at the Pennsylvania

Department of Environmental Protection, Bureau of Air Quality, P.O. Box

8468, 400 Market Street, Harrisburg, Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Cynthia H. Stahl, Ozone/Carbon

Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841

Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone

at: (215) 566-2180. Questions may also be addressed via e-mail, at the

following address: [email protected] Please note that while

information may be requested via e-mail, only written comments can be

accepted for inclusion in the docket.

SUPPLEMENTARY INFORMATION:

Background

Section 182(b)(1) of the Clean Air Act (the Act or CAA), as amended

in 1990, requires ozone nonattainment areas classified as moderate or

above to develop plans to reduce VOC emissions by fifteen percent from

the 1990 baseline inventory for the area. These ``15% plans'' were due

to be submitted to EPA by November 15, 1993, with the reductions to

occur within 6 years of enactment of the 1990 Clean Air Act Amendments

(i.e. November 15, 1996). Furthermore, the Act sets limitations on the

creditability of certain control measures toward reasonable further

progress. Specifically, States cannot take credit for reductions

achieved by Federal Motor Vehicle Control Program (FMVCP) measures

(e.g. new car emissions standards) promulgated prior to 1990; or for

reductions stemming from regulations promulgated prior to 1990 to lower

the volatility (i.e., Reid Vapor Pressure) of gasoline. The Act also

does not allow credit towards RFP for post-1990 corrections to existing

motor vehicle inspection and maintenance (I/M) programs or corrections

to reasonably available control technology (RACT) rules, since these

programs were required to be in-place prior to 1990.

Additionally, section 172(c)(9) of the Act requires ``contingency

measures'' to be included in the plan revision. These measures are

required to be implemented immediately if reasonable further progress

is not achieved, or if the NAAQS standard is not attained under the

deadlines set forth in the Act.

In Pennsylvania, three nonattainment areas are subject to the Clean

Air Act 15% rate-of-progress requirements. These are the Philadelphia

severe nonattainment area, the Pittsburgh moderate nonattainment area,

and the Reading moderate nonattainment area. On July, 19, 1995, EPA

published, in the Federal Register, a final rule waiving the 15% rate-

of-progress requirements for the Pittsburgh and Reading moderate ozone

nonattainment areas. The basis

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for that action was a May 10, 1995 EPA policy memo (entitled

``Reasonable Further Progress, Attainment Demonstration, and Related

Requirements for Ozone Nonattainment Areas Meeting the Ozone National

Ambient Air Quality Standard'') allowing such ``waivers'' for areas

having ambient monitoring data which demonstrated compliance with the

ozone standard. On June 4, 1996, EPA revoked the waiver for the

Pittsburgh area, and reinstated the 15% plan requirement. Pennsylvania

submitted separate SIP revisions for Philadelphia and Pittsburgh. EPA

is taking action today only on Pennsylvania's 15% plan submittal

(including the 1990 VOC emissions inventory), which addresses only the

Pittsburgh ozone nonattainment area. EPA will act separately on the

contingency plan for the Pittsburgh 15% plan and the 1990 NOx

emissions inventory, at a later date. The Pittsburgh moderate ozone

nonattainment area consists of the following counties in Pennsylvania:

Allegheny, Armstrong, Beaver, Butler, Fayette, Washington,

Westmoreland.

EPA has reviewed the March 22, 1996 Pittsburgh area 15% plan

submittal and has identified several deficiencies, which prohibit full

approval of this SIP, per section 110 of the Act. A detailed discussion

of these deficiencies is included below, in the `Analysis' portion of

this rulemaking action, and also in the technical support document

(TSD) for this action. Due to these deficiencies, the 15% plan cannot

be assured of achieving the total reductions required by the rate-of-

progress requirements of the Act. Therefore, EPA is proposing to

conditionally approve this plan.

For further information regarding EPA's analysis of the

Commonwealth's submittal, please refer to the TSD for this action

(found in the official docket). A summary of the EPA's findings

follows.

Analysis of the SIP Revision

Base Year Emission Inventory

The baseline from which states must determine the required

reductions for 15% planning is the 1990 VOC base year emission

inventory. The inventory is broken down into several emissions source

categories: stationary, area, on-road mobile sources, and off-road

mobile sources. Pennsylvania submitted a formal SIP revision containing

their official 1990 base year emission inventory on November 12, 1992.

EPA has not yet taken rulemaking action on that inventory submittal. In

its March 22, 1996 submittal, Pennsylvania stated that the 1990

emission inventory included with that submittal is meant to supercede

the 1992 emission inventory submittal. Therefore, this rulemaking will

address the 1990 VOC emission inventory only as it pertains to the

Pittsburgh ozone nonattainment area and no further rulemaking action

will be taken on the November 12, 1992 emission inventory submittal as

it pertains to the Pittsburgh ozone nonattainment area. The March 1996

inventory submittal of the 1990 inventory contains inconsistencies

including inconsistencies with the inventory summaries in the 15% plan.

Additional information and documentation from Pennsylvania regarding

the March 1996 submittal of the Pittsburgh 1990 emission inventory is

necessary in order for EPA to accept it as a replacement for the

official 1990 base year inventory SIP revision. EPA has been working

with Pennsylvania to compile the necessary documentation to approve the

1990 base year emissions inventory. Pennsylvania has recently submitted

some additional information that may clarify some of the questions

about the 1990 inventory. This additional information has been placed

in the docket for this rulemaking. Please refer to the TSD for a

specific discussion of the inventory. Therefore, EPA is proposing to

conditionally approve the 1990 VOC emission inventory for the

Pittsburgh ozone nonattainment area that was submitted on March 22,

1996.

Growth in Emissions Between 1990 and 1996

EPA has interpreted the Clean Air Act to require that reasonable

further progress towards attainment of the ozone standard must be

obtained after offsetting any growth expected to occur over that

period. Therefore, to meet the 15% RFP requirement, a state must enact

measures achieving sufficient emissions reductions to offset projected

growth in emissions, in addition to a 15 percent reduction of VOC

emissions. Thus, an estimate of VOC emissions growth from 1990 to 1996

is necessary for demonstrating reasonable further progress. Growth is

calculated by multiplying the 1990 base year inventory by acceptable

forecasting indicators. Growth must be determined separately for each

stationary (point) source or by area source category, since sources

typically grow at different rates. Even within a stationary source,

individual emission unit emissions may grow at different rates during

the same time period. EPA's inventory preparation guidance recommends

the following indicators as applied to emission units in the case of

stationary sources or to a source category in the case of area sources,

in order of preference: Product output, value added, earnings, and

employment. As a last resort, population can also serve as a surrogate

indicator.

Pennsylvania's 15% plan contains growth projections for point,

area, on-road motor vehicle, and non-road vehicle source categories.

For a detailed description of the growth methodologies used by the

Commonwealth, please refer to the TSD for this action. Although EPA has

identified some problematic issues with the methods used to project

growth in the 1996 Pittsburgh inventory, EPA is not conditioning the

approval of the 15% plan on the resolution of these issues. The

rationale for this summarized below and in more detail in the TSD.

Consequently, EPA is proposing to approve the Commonwealth's 1990-1996

emissions growth projections for the Pittsburgh 15% plan.

Pennsylvania did not provide EPA with all the documentation

necessary to verify the growth projections for the on-road vehicle

category. EPA, however, has no reason to believe that the

Commonwealth's methodology or assumptions in making these projections

are flawed. Therefore, EPA is accepting the Commonwealth's 15% plan

projection for highway vehicle emissions growth that is based on growth

in total vehicle miles of travel (VMT) for the region, which the

Commonwealth expects to increase by 2.8 million miles per day. In

addition, the Commonwealth expects that on-road emissions are projected

to decrease by 21.35 tons/day. Emissions from on-highway emissions

control measures are calculated separately in the plan (including

reductions associated with fleet turnover and the pre-1990 motor

vehicle standards) and Pennsylvania indicates that this growth is based

solely upon increasing VMT growth. Typically, growth in highway

emissions is determined independently of mobile source control

strategies. Fifteen percent plans usually indicate what, if any, other

factors effect highway emissions growth, other than the previously

identified VMT influence. EPA cannot definitively determine how motor

vehicle emissions are declining from this data but believes, based on

the sample calculation submitted by Pennsylvania, that Pennsylvania's

mobile model inputs are correct. Those interested in obtaining the data

necessary to verify the Commonwealth's calculations are encouraged to

contact PA DEP for that information. Therefore, EPA is proposing to

approve the

[[Page 3256]]

Commonwealth's on-road motor vehicle growth projection.

For the point source categories, Pennsylvania used the Bureau of

Economic Analysis (BEA) growth factors to project point source

emissions on a point source category basis to 1996. Typically, this is

an acceptable method of estimating point source growth. However,

Pennsylvania operates an emissions bank in the Commonwealth that allows

facilities to bank emission reduction credits for subsequent use or

sale. In addition, Pennsylvania states specifically in its 15% plan

that it is not taking VOC emission reduction credit from shutdown

sources since those sources are being allowed to sell their VOC

emission reductions as credits to other sources. These shutdowns all

occurred after January 1, 1990. Since the BEA growth factors are

devised to account for all economic activity, including the shutdown of

facilities (through loss of employment, income, etc.), allowing both

the use of the BEA point source growth factors for these source

categories where the shutdowns occurred and allowing the sources in

these categories to sell their emission reduction credits could result

in the double counting of emission reductions, which is not allowed. In

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

Act Amendments (57 FR 13498, April 16, 1992), EPA addresses the issue

of accounting for emission reduction credits (ERCs) by stating that

banked emission reduction credits need to be accounted for such that

their use is consistent with the area's 15% rate of progress plan and

attainment plan. For any ERCs that are either used or available for use

prior to the end of the planning period (in this case, the end of

1996), the state must appropriately account or plan for their use in

the applicable air quality plan (in this case, the 15% plan). In

Pennsylvania's March 1996 15% plan submittal, DEP did not identify

which sources had shut down or in which source categories these

shutdowns had occurred. Without the proper identification of these

sources and accounting in the 15% plan, there is no guarantee that the

use of those shutdown or banked ERCs would be consistent with the 15%

plan. This potential double counting of emissions is not a problem

unique to Pennsylvania. EPA guidance to date has not addressed this

issue in detail. Therefore, EPA is not conditioning the approval of the

Pittsburgh 15% plan on the resolution of this issue. EPA will, however,

require that this issue be satisfactorily resolved prior to approval of

any subsequent air quality plans required for the Pittsburgh

nonattainment area such as the attainment demonstration.

Calculation of Target Level Emissions

Pennsylvania calculated a ``target level'' of 1996 VOC emissions,

per EPA guidance. First, the Commonwealth calculated the non-creditable

reductions from the FMVCP program and subtracted those emissions from

the 15 percent plan's 1990 inventory estimate. This yields the 1990

``adjusted inventory''. The emission reduction required to meet the 15

percent rate-of-progress requirement equals the sum of 15 percent of

the adjusted inventory and any reductions necessary to offset emissions

growth projected to occur between 1990 and 1996, plus reductions that

resulted from corrections to the I/M or VOC RACT rules that were

required to be in place before 1990. Table 1 summarizes the

calculations for the seven-county Pittsburgh nonattainment area's VOC

target level.

Table 1.--Calculation of Required Reductions 1 for the Pittsburgh

Nonattainment Area's 15% Plan (Tons/day)

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

1990 Base Year Inventory..................................... 402.20

Adjustments for FMVCP/RVP (pre-1990 program)................. 28.70

1990 Adjusted Base Year Inventory............................ 373.50

15% Reduction Requirement.................................... 56.03

RACT ``fix-ups''............................................. 0.0

FMVCP & RVP Reductions....................................... 8.70

Required Reduction (w/o growth).............................. 84.73

1990 Baseline Emissions...................................... 402.20

Required Reductions (w/o growth)............................. -84.73

1996 Target Level............................................ 317.47

1990-1996 Emissions Growth................................... -20.51

Required Reductions (w/o growth)............................. 84.73

Total Required Reduction..................................... 64.22

Total Reduction Claimed by Pennsylvania...................... 67.48

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1 Emission figures presented here are from the March 27, 1996 submittal.

These figures will likely change once Pennsylvania makes the

corrections to the plan to reconcile inventory inconsistencies, etc.

Control Strategies in the 15% Plan:

The specific measures adopted (either through state or federal

rules) for the Pittsburgh area are addressed, in detail, in the

Commonwealth's 15% plan. The following is a brief description of each

control measure that Pennsylvania has claimed credit for in the

submitted 15% plan, as well as the results of EPA's review of the use

of that strategy towards the Clean Air Act rate-of-progress

requirement.

Creditable Emission Control Strategies

The control measures described below are creditable towards the

rate-of-progress requirements of the Act. However, the documentation

provided by the Commonwealth with the March 22, 1996 submittal does not

clearly show how the claimed emission reductions from the

implementation of the benzene National Emission Standards for Hazardous

Air Pollutants (NESHAP) were obtained and calculated. Pennsylvania has

recently sent EPA additional material pertaining to the calculation of

the NESHAP credit. This additional information has been placed in the

docket for this rulemaking. If EPA determines that the additional

material with the original submittal is adequate to document the NESHAP

credit, EPA will state that Pennsylvania has met the condition that

requires adequate documentation of the NESHAP credit. For the mobile

source measures, which Pennsylvania estimates using a Post-Processor

for Air Quality (PPAQ) computer model, limited documentation was

provided. The PPAQ model uses MOBILE modeling information as input, and

determines total reductions for mobile source control strategies. The

Commonwealth recently provided some sample calculations used in this

modeling, but no detailed documentation of the MOBILE runs. However, as

mentioned earlier, EPA has no reason to believe that Pennsylvania's

methodology is flawed. Therefore, EPA is proposing to approve the

claimed mobile emission reductions.

As described below, EPA cannot fully approve the reductions from

the benzene NESHAP measure without additional documentation to verify

the emissions estimates. As mentioned above, the documentation recently

submitted by the Commonwealth and placed in the docket for this

rulemaking may address this issue. For further details regarding EPA's

review of the Commonwealth's control measures, please refer to the TSD

for this action.

Benzene NESHAP

EPA promulgated the benzene NESHAP (40 CFR part 61, subpart L,

National Emission Standard for Benzene Emissions from Coke By-Product

Recovery Plants) on September 19, 1991. The coke oven battery NESHAP

(40 CFR part 63, National Emission Standards for Hazardous Air

Pollutants for Source Categories and for Coke Oven Batteries) was

promulgated on October 27, 1993. The rule regulates the emissions from

new and existing coke oven batteries. The benzene NESHAPs are expected

to produce high emission

[[Page 3257]]

reductions. However, EPA is unable to fully verify the 35.0 tons/day

credit estimate claimed by the Commonwealth for this program, due to a

lack of detail regarding the methodology used to quantify the benzene

NESHAP emission reductions and inconsistencies with the emission

inventory figures for sources where this credit is being claimed for

the 15% plan. Therefore, while it is not unlikely that a 35 ton/day

credit from these requirements, Pennsylvania must provide the

documentation that supports it. As stated earlier, Pennsylvania has

recently provided some additional information regarding this

calculation that may clarify how the credits were calculated.

Architectural and Industrial Maintenance (AIM) Coating

EPA is in the process of adopting a national rule to control VOC

emissions from solvent evaporation through reformulation of coatings

used in architectural and industrial maintenance coatings, such as

building and bridge paints, etc. This is a national rule that EPA

proposed on June 25, 1995 (61 FR 32729), which expected compliance with

the coating requirements by April 1997. Subsequently, EPA has been sued

over this proposed national rule and has negotiated a compliance date

of no earlier than January 1, 1998. VOC emissions emanate from the

evaporation of solvents used in the coating process. In a memorandum

dated March 22, 1995 (``Credit for the 15% Rate-of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance (AIM)

Coating Rule''), EPA allowed states to claim a 20% reduction of total

AIM emissions from the national rule. In this memorandum, EPA stated

that although the emission reductions are not expected to occur until

April 1997, states will be allowed to use the expected emission

reduction credit from this measure in their 15% plans. EPA believes

that even though the compliance date has been pushed to January 1,

1998, the emission reduction from the national AIM rule are creditable

in state 15% plans.

Use of emissions reductions from EPA's expected national rule is

acceptable towards the 15% plan target. Pennsylvania claims a 20%

reduction, or 5.0 tons/day (1996 uncontrolled emissions x 20% emission

reduction) from their 1996 projected uncontrolled AIM emissions. Since

the 1996 uncontrolled emissions are 20.83 tons/day, a 20% emission

reduction is 4.16 tons/day. Therefore, there appears to be a

discrepancy in the calculated emission reduction expected from the

implementation of this national rule. Pennsylvania must resolve this

discrepancy and determine the proper emission credit from this national

rule.

Treatment Storage and Disposal Facilities (TSDFs)

TSDFs are private facilities that manage dilute wastewater,

organic/inorganic sludges, and organic/inorganic solids. Waste disposal

can be done by various means including: incineration, treatment, or

underground injection or landfilling. EPA promulgated a national rule

on June 21, 1990 for the control of TSDF emissions (55 FR 25454).

Pennsylvania claims an expected VOC reduction of 9.59 tons/day from

this national rule in one part of the 15% plan submittal; although in

the narrative description of the TSDF credit, Pennsylvania claims 10.0

tons per day (TPD) credit. Using the figures provided by Pennsylvania,

the expected emission reduction from this measure is calculated using

the 12.75 TPD projected 1996 emissions and multiplying this by the

control efficiency (94%) and rule effectiveness (80%), resulting in an

emission credit of 9.59 TPD. EPA believes that the creditable emissions

from this control measure, given the inventory information provided by

Pennsylvania, is 9.59 TPD.

Consumer/Commercial Products National Rule

Section 183(e) of the Clean Air Act required EPA to conduct a study

of VOC emissions from consumer and commercial products. EPA was then

required to list (and eventually) to regulate those product categories

that account for 80% of those consumer products emissions in ozone

nonattainment areas. Group I of EPA's regulatory schedule lists 24

categories of consumer products to be regulated by national rule--

including personal, household, and automotive products. EPA intends to

issue a final rule covering these products in Spring 1997. The

Commonwealth claims a 20% reduction from the consumer products portion

of their 1996 uncontrolled inventory, or a 4.0 tons/day reduction.

Using the amended emission inventory figures provided by DEP on October

7, 1996, the actual emission credit available is 5.06 TPD. This is a

creditable emission reduction for the Pittsburgh 15% plan.

Tier I Federal Motor Vehicle Control Program

EPA promulgated a national rule establishing ``new car'' standards

for 1994 and newer model year light-duty vehicles and light-duty trucks

on June 5, 1991 (56 FR 25724). Since the standards were adopted after

the Act was amended in 1990, the resulting emission reductions are

creditable toward the 15% reduction goal. The EPA agrees with the

Commonwealth's projected emission reductions. Due to the three-year

phase-in period for this program, and the associated benefits stemming

from fleet turnover, the reductions prior to 1996 are somewhat limited.

Pennsylvania claimed a reduction of 6.0 tons/day from this post-1990

Federal Motor Vehicle Control Program. EPA accepts this estimate of

expected emission reductions from this program.

Inspection and Maintenance Program

Section 182(b)(1) of the CAA requires that States containing ozone

nonattainment areas classified as Moderate or above prepare State

Implementation Plans (SIPs) that provide for a 15% VOC emissions

reduction by November 15, 1996. Most of the 15% SIPs originally

submitted to the EPA contained enhanced I/M programs because this

program achieves more VOC emission reductions than most, if not all

other, control strategies. However, because most States experienced

substantial difficulties with these enhanced I/M programs, only a few

States are currently actually testing cars using their original

enhanced I/M protocols.

On September 18, 1995, EPA finalized revisions to its enhanced I/M

rule allowing states significant flexibility in designing I/M programs

appropriate for their needs (60 FR 48029). Subsequently, Congress

enacted the National Highway Systems Designation Act of 1995 (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 re-design enhanced I/M programs in accordance with the

guidance contained within the NHSDA, secure state legislative approval

when necessary, and set up the infrastructure to perform the testing

program precludes States that revise 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% VOC emissions reduction required under CAA

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

changes regarding enhanced I/M programs, EPA believes that it is no

longer possible for many states to achieve the portion of the 15%

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

[[Page 3258]]

circumstances, disapproval of the 15% SIPs would serve no purpose.

Consequently, under certain circumstances, EPA will propose to allow

States that pursue re-design of enhanced I/M programs to receive

emission reduction credit from these programs within their 15% plans,

even though the emissions reductions from the I/M program will occur

after November 15, 1996.

Specifically, EPA will propose approval of 15% SIPs if the

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

as from the other 15% SIP measures, will achieve the 15% 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% level is achieved. EPA does not believe that measures meaningfully

accelerate the 15% date if they provide only an insignificant amount of

reductions. However, as a minimum requirement, EPA will approve a 15%

SIP only if it achieves the reductions from I/M needed to reach the 15%

level by no later than November 15, 1999.

In the case of Pittsburgh, the Pennsylvania has submitted a 15% SIP

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

1998. The Pennsylvania I/M program is an annual program with

implementation required to begin no later than November 15, 1997.

Pennsylvania has submitted a 15% SIP for Pittsburgh that includes

control measures that are creditable toward the 15% plan. Emission

reductions in the Pittsburgh nonattainment area resulting from the

implementation of the benzene NESHAP and from implementation of FMVCP--

Tier I have already occurred. EPA believes that this SIP contains all

measures, including I/M, that achieves the required reductions as soon

as practicable for this nonattainment area.

EPA has examined other potentially available SIP measures to

determine if they are practicable for the Pittsburgh moderate ozone

nonattainment area and if they would meaningfully accelerate the date

by which the area reaches the 15% level of reductions. EPA proposes to

determine that the SIP contains the appropriate measures. For the

Pittsburgh area, reformulated gasoline (RFG) and Stage II vapor

recovery, are regulatory options that, theoretically, might be

implemented prior to 1998. For RFG, since the Commonwealth has not

petitioned EPA to opt back into the program, and since the section

211(k)(6)(A) of the Act provides a one year implementation timeframe

for opt-ins of the RFG program, EPA believes the Commonwealth is

meeting 15% as soon as practicably possible. For Stage II, the

Commonwealth currently has a compliance moratorium in the Pittsburgh

nonattainment area on their existing Stage II regulation (Pennsylvania

Code Title 25, Subpart C, Article III, Chapter 129.82). Even if the

Commonwealth were to choose to lift their moratorium, the emission

reductions from the implementation of Stage II are unlikely to occur

prior to 1998 since the regulated community will have to be given some

time to make the capital investments, purchase and install the

equipment to implement this program.

The Commonwealth has recently concluded the Southwestern

Pennsylvania Stakeholders Group process that will result in

recommendations to the Governor of Pennsylvania as to the control

measures that should be implemented in the Pittsburgh nonattainment

area in order to reach attainment of the ozone national ambient air

quality standard. The stakeholders final report and recommendation to

the Governor is expected to be released soon. For the Pittsburgh 15%

plan, the Commonwealth has chosen to implement the I/M program in the

Pittsburgh nonattainment area, which is expected to produce a 13 ton

per day emission reduction beginning in 1998. The details of this

analysis are contained in the accompanying TSD.

Summary of Creditable Emission Reductions for the Pittsburgh Ozone

Nonattainment Area

[Tons/day]

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

Required Reduction for the Pittsburgh area 64.22

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

Creditable reductions:

Benzene NESHAP \1\............................................ 35.00

FMVCP (Tier I)................................................ 6.00

Inspection and Maintenance Program \2\........................ 5.00

AIM Coatings Rules............................................ 4.16

Consumer/Commercial Products.................................. 5.06

TSDF Controls................................................. 9.59

-------

Total..................................................... 64.81

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

\1\ The emission reductions from this program have not been

substantiated by Pennsylvania.

\2\ Partial credit from this program is taken in the 15% plan with the

remaining credit taken in the contingency plan, which is not the

subject of this rulemaking notice.

III. Proposed Action

The EPA has evaluated this submittal for consistency with the Act,

applicable EPA regulations, and EPA policy. On its face, this RFP plan

for Pittsburgh achieves the required 15% VOC emission reduction to meet

the requirements of section 182(b)(1) of the Act. While all the

emissions inventory figures have not been substantiated and the amount

of creditable reductions for certain control measures has not been

adequately documented to qualify for Clean Air Act approval, EPA

believes that the submittal for Pittsburgh contains enough of the

required structure to warrant conditional approval.

In light of the above deficiencies, EPA is proposing to

conditionally approve this SIP revision, which includes the 15% plan

and the 1990 emission inventory, under section 110(k)(4) of the Act.

The submittal does not fully satisfy the requirements of section

182(b)(1) of the Act regarding the 15 percent reasonable further

progress plan or section 182(a)(1) of the Act regarding emission

inventories.

Today's notice of proposed rulemaking begins a 30-day clock for the

Commonwealth to make a commitment to EPA to correct the major elements

of the SIP that EPA considers deficient, by date certain, within 1 year

of conditional approval. These elements are described as follows. In

order to make this 15% plan approvable, Pennsylvania must fulfill the

following conditions by no later than 12 months after EPA's final

conditional approval:

(1) Reconcile the 1990 VOC point source emissions inventory with

all the appendices, tables and narratives throughout the 15% document,

wherever emissions are cited;

(2) After establishing consistent figures as described in (1)

above, provide sample calculations for point source 1990, 1990

adjusted, and 1996 projected emissions showing how each of these

figures were obtained (The level of documentation must be equivalent to

that required for approval of a 1990 emissions inventory as described

in the emission inventory documents at the beginning of this technical

support document.);

(3) Provide additional documentation for the emissions for those

sources categories where credit is claimed (NESHAP);

(4) Provide a written commitment to remodel the I/M program as

implemented in the Pittsburgh nonattainment area in accordance with EPA

guidance (December 23, 1996 memo entitled ``Modeling 15% VOC Reductions

from I/M in 1999--Supplemental Guidance), submit the remodeling to EPA;

and

[[Page 3259]]

(5) Fulfill the conditions listed in the I/M SIP rulemaking notice

(proposed October 3, 1996, 61 FR 51638) and summarized here as: (a)

Geographic program coverage and program start dates, (b) ongoing mass-

based transient program evaluation, (c) test types, test procedures and

emission standards, (d) test equipment specifications, and (e) motorist

compliance enforcement demonstration.

After making all the necessary corrections to establish accuracy

and consistency in the emission inventory, baseline and projected

figures, and the creditability of chosen control measures, Pennsylvania

must demonstrate that 15% emission reduction is obtained in the

Pittsburgh nonattainment area as required by section 182(b)(1) of the

Act and in accordance with EPA's policies and guidance issued pursuant

to section 182(b)(1). Resolution of the issues pertaining to banked

emissions and projected growth is not a condition of this 15% plan

approval. Satisfactory resolution of these issues will be required for

any approval of subsequent air quality plans. If the Commonwealth does

not make the required written commitment to EPA within 30 days, EPA is

today proposing in the alternative that this SIP revision be

disapproved.

EPA and Pennsylvania have worked closely since the March 1996

submittal in order to resolve all the issues necessary to fully approve

the Pittburgh 15% plan. Pennsylvania is aware of the above deficiencies

and is currently working to amend the Pittsburgh 15% plan to address

the above-named deficiencies. Some of these amendments have been sent

to EPA and others remain to be sent. While some of these deficiencies

currently remain, EPA believes that all issues will be resolved no

later than 12 months after EPA's final conditional approval of the

Pittsburgh 15% plan. While this rulemaking was being prepared,

Pennsylvania has provided some additional information pertaining to

their March 1996 submittal. This additional information has been placed

in the rulemaking docket and is available to the public. EPA will

consider all information submitted as a supplement or amendment to the

March 1996 submittal prior to any final rulemaking action. In addition,

since Congress passed the National Highway Systems Designation Act of

1995, which amended federal I/M program requirements and granted states

authority to revise their I/M programs, and Pennsylvania has utilized

that authority to revise its I/M program, revision of the 15% plan to

reflect the I/M program changes is expected. When the Commonwealth

submits an amended 15% plan, EPA will review the whole Pittsburgh 15%

plan and the Pittsburgh 1990 base year emissions inventory, including

its amendments, for compliance with the requirements of the Clean Air

Act. At that time, EPA will re-propose rulemaking action based on the

merits of the original submittal and its amendments.

Nothing in today's action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any state implementation plan. Each request for revision to

the state implementation plan shall be considered separately in light

of specific technical, economic, and environmental factors and in

relation to relevant statutory and regulatory requirements.

This proposed conditional approval action for the Pennsylvania 15%

plan and the 1990 VOC emission inventory for Pittsburgh 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.

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 CAA do not create any new requirements but

simply approve requirements that the State is already imposing.

Therefore, because the Federal SIP approval does not impose any new

requirements, 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 CAA, preparation of a flexibility

analysis would constitute Federal inquiry into the economic

reasonableness of state action. The Clean Air 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.

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

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/promulgated

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. This Federal action

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

imposes no new Federal requirements. Accordingly, no additional costs

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

result from this action.

Under section 801(a)(1)(A) of the Administrative Procedures Act

(APA) as amended by the Small Business Regulatory Enforcement Fairness

Act of 1996, EPA submitted a report containing this rule and other

required information to the U.S. Senate, the U.S. House of

Representatives and the Comptroller General of the General Accounting

Office prior to publication of the rule in today's Federal Register.

This rule is not a ``major rule'' as defined by section 804(2) of the

APA as amended.

The Regional Administrator's decision to approve or disapprove the

[[Page 3260]]

SIP revision pertaining to the Pittsburgh ozone nonattainment area 15%

plan and 1990 VOC emission inventory will be based on whether it meets

the requirements of section 110(a)(2)(A)-(K) and part D of the Clean

Air 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, Reporting and recordkeeping requirements,

Ozone, Volatile organic compounds.

Dated: January 13, 1997.

W. Michael McCabe,

Regional Administrator.

[FR Doc. 97-1493 Filed 1-21-97; 8:45 am]

BILLING CODE 6560-50-P