Approval and Promulgation of State Implementation Plan; Illinois

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[IL117-3; FRL-5935-2]

Approval and Promulgation of State Implementation Plan; Illinois

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is taking final action on the following revisions to the

Illinois ozone State Implementation Plan (SIP): Rate-Of-Progress (ROP)

plans for the purpose of reducing Volatile Organic Compound (VOC)

emissions in the Chicago ozone nonattainment area (Cook, DuPage, Kane,

Lake, McHenry, and Will Counties, Oswego Township in Kendall County,

and Aux Sable and Goose Lake Townships in Grundy County) and in the

Metro-East St. Louis ozone nonattainment area (Madison, Monroe, and St.

Clair Counties) by 15 percent by November 15, 1996, relative to 1990

baseline emissions; contingency plans for the same ozone nonattainment

areas for the purpose of achieving an additional 3 percent VOC emission

reductions beyond the 15 percent ROP plans; and transportation control

measures (TCM) for the Metro-East St. Louis area. Previously, on July

14, 1997, EPA issued a direct final approval of these SIP revisions. On

the same day (July 14, 1997), EPA proposed approval and solicited

public comment on the SIP revisions. This proposed rule established a

30-day public comment period noting that if adverse comments were

received regarding the direct final rule EPA would withdraw the direct

final rule and publish an additional final rule to address the public

comments. Adverse comments were received during the public comment

period, and EPA withdrew the direct final rule on September 3, 1997 (62

FR 46446). This final rule addresses these comments and finalizes the

approval of the Chicago and Metro-East area 15 percent and contingency

plans, and the Metro-East area TCMs.

DATES: This final rule is effective January 20, 1998.

ADDRESSES: Copies of the SIP revision request are available for

inspection at the following address: (It is recommended that you

telephone Mark J. Palermo at (312) 886-6082, before visiting the Region

5 office).

U.S. Environmental Protection Agency, Region 5, Air and Radiation

Division, 77 West Jackson Boulevard, Chicago, Illinois, 60604.

FOR FURTHER INFORMATION CONTACT: Mark J. Palermo, Environmental

Protection Specialist, at (312) 886-6082.

SUPPLEMENTARY INFORMATION:

I. Background on Rate-Of-Progress and Contingency Plan Requirements and

EPA Review Criteria

On November 15, 1990, Congress enacted amendments to the Clean Air

Act (Act); Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C.

7401-7671q. Section 182(b)(1) of the Act requires States with ozone

nonattainment areas classified as moderate and above to submit ROP

plans to reduce VOC emissions by 15 percent from 1990 levels by

November 15, 1996, accounting for growth in the VOC emissions occurring

after 1990. For purposes of these plans, the Act, under sections

182(b)(1) (B) and (D), defines baseline emissions as the total amounts

of actual VOC emissions from all anthropogenic sources in the ozone

nonattainment areas during the calendar year of the enactment of the

revision of the Act (1990), subtracting or factoring out emission

reductions achieved by the Federal Motor Vehicle Emissions Control

Program (FMVCP) regulations promulgated before January 1, 1990, and by

the 1990 gasoline Reid Vapor Pressure (RVP) regulations (55 FR 23666,

June 11, 1990).1 The baseline emissions are also referred to

as the ``1990 adjusted base year inventories.'' EPA interprets

``calendar year'' emissions to consist of typical ozone season weekday

emissions, because the applicable ozone National Ambient Air Quality

Standard (NAAQS) (0.12 parts per million, one-hour average) is

generally exceeded or violated during ozone season weekdays when ozone

precursor emissions and meteorological conditions are the most

conducive to ozone formation. (See ``State Implementation Plans:

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

Amendments of 1990,'' proposed rule (57 FR 13507), Federal Register,

April 16, 1992 (hereafter referred to as the General Preamble)).

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\1\ The 1990 RVP regulations limit the volatility of gasoline in

ozone nonattainment areas during the ozone season. The FMVCP

provides vehicle emission limits that automobile manufacturers must

meet in designing and building new automobiles.

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Section 182(b)(1)(D) of the Act places limits on what emission

reductions can be claimed by ROP plans. All permanent and enforceable

VOC emission reductions occurring after 1990 are creditable with the

following exceptions: (1) Those resulting from any emission control

measure relating to

[[Page 66280]]

motor vehicle exhaust and evaporative emissions promulgated by the

Administrator by January 1, 1990; (2) those due to RVP regulations

promulgated by the Administrator by November 15, 1990, or due to

regulations required under section 211(h) of the Act; (3) those due to

measures to correct Reasonably Available Control Technology (RACT)

regulations as required under section 182(a)(2)(A) of the Act; and (4)

those due to measures to correct previously noted problems in an

existing vehicle inspection and maintenance (I/M) program as required

under section 182(a)(2)(B) of the Act.

Section 172(c)(9) of the Act as implemented by EPA requires States

with ozone nonattainment areas classified as moderate and above to

adopt contingency measures by November 15, 1993. Such measures must

provide for the implementation of specific emission control measures if

an ozone nonattainment area fails to achieve ROP or fails to attain the

NAAQS within the time-frames specified under the Act. Section 182(c)(9)

of the Act requires that, in addition to the contingency measures

required under section 172(c)(9), the contingency measure SIP revision

for serious and above ozone nonattainment areas must also provide for

the implementation of specific measures if the area fails to meet any

applicable milestone in the Act. As provided by these sections of the

Act, the contingency measures must take effect without further action

by the State or by the EPA Administrator upon failure by the State to

meet ROP requirements or attainment of the NAAQS by the required

deadline, or other applicable milestones of the Act.

The General Preamble states that the contingency measures, in

total, must generally be able to provide for 3 percent reductions from

the 1990 baseline emissions. While all contingency measures must be

fully adopted rules or measures, States can use the measures in two

different ways. A State can choose to implement contingency measures

before the November 15, 1996, ROP milestone deadline. Alternatively, a

State may decide not to implement a contingency measure until an area

has actually failed to achieve a ROP or attainment milestone. In the

latter situation, the contingency measure emission reduction must be

achieved within one year following identification of a milestone

failure.

The EPA has developed a number of guidelines addressing the review

of ROP and contingency plans and addressing such topics as: (1) The

relationship of ROP plans to other SIP elements required by the Act;

(2) recommended emission reduction levels for various control measures

including Federal emission control measures; and (3) emission inventory

projection procedures. All relevant guidelines are listed below.

1. Procedures for Preparing Emissions Projections, EPA-450/4-91-

019, Environmental Protection Agency, July 1991.

2. State Implementation Plans; General Preamble for the

Implementation of Title I of the Clean Air Act Amendments of 1990;

Proposed rule (57 FR 13498), Federal Register, April 16, 1992.

3. ``November 15, 1992, Deliverables for Reasonable Further

Progress and Modeling Emission Inventories,'' memorandum from J. David

Mobley, Edwin L. Meyer, and G. T. Helms, Office of Air Quality Planning

and Standards, Environmental Protection Agency, August 7, 1992.

4. 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, Environmental Protection Agency, October 1992.

5. ``Quantification of Rule Effectiveness Improvements,''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 1992.

6. Guidance for Growth Factors, Projections, and Control Strategies

for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-002, March

1993.

7. ``Correction to `Guidance on the Adjusted Base Year Emissions

Inventory and the 1996 Target for the 15 Percent Rate of Progress

Plans','' memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide

Programs Branch, Office of Air Quality Planning and Standards,

Environmental Protection Agency, March 2, 1993.

8. ``15 Percent Rate-of-Progress Plans,'' memorandum from G. T.

Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

16, 1993.

9. Guidance on the Relationship Between the 15 Percent Rate-of-

Progress Plans and Other Provisions of the Clean Air Act, EPA-452/R-93-

007, Environmental Protection Agency, May 1993.

10. ``Credit Toward the 15 Percent Rate-of-Progress Reductions from

Federal Measures,'' memorandum from G. T. Helms, Chief, Ozone/Carbon

Monoxide Programs Branch, Environmental Protection Agency, May 6, 1993.

11. Guidance on Preparing Enforceable Regulations and Compliance

Programs for the 15 Percent Rate-of-Progress Plans, EPA-452/R-93-005,

Environmental Protection Agency, June 1993.

12. ``Correction Errata to the 15 Percent Rate-of-Progress Plan

Guidance Series,'' memorandum from G. T. Helms, Chief, Ozone and Carbon

Monoxide Programs Branch, Environmental Protection Agency, July 28,

1993.

13. ``Early Implementation of Contingency Measures for Ozone and

Carbon Monoxide (CO) Nonattainment Areas,'' memorandum from G. T.

Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Environmental

Protection Agency, August 13, 1993.

14. ``Region III Questions on Emission Projections for the 15

Percent Rate-of-Progress Plans,'' memorandum from G.T. Helms, Chief,

Ozone/Carbon Monoxide Programs Branch, Office of Air Quality Planning

and Standards, Environmental Protection Agency, August 17, 1993.

15. ``Guidance on Issues Related to 15 Percent Rate-of-Progress

Plans,'' memorandum from Michael H. Shapiro, Acting Assistant

Administrator for Air and Radiation, Environmental Protection Agency,

August 23, 1993.

16. ``Credit Toward the 15 Percent Requirements from Architectural

and Industrial Maintenance Coatings,'' memorandum from John S. Seitz,

Director, Office of Air Quality Planning and Standards, Environmental

Protection Agency, September 10, 1993.

17. ``Reclassification of Areas to Nonattainment and 15 Percent

Rate-of-Progress Plans,'' memorandum from John S. Seitz, Director,

Office of Air Quality Planning and Standards, Environmental Protection

Agency, September 20, 1993.

18. ``Clarification of Guidance for Growth Factors, Projections and

Control Strategies for the 15 Percent Rate of Progress Plans,''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 6, 1993.

19. ``Review and Rulemaking on 15 Percent Rate-of-Progress Plans,''

memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide Programs

Branch, Office of Air Quality Planning and Standards, Environmental

Protection Agency, October 6, 1993.

20. ``Questions and Answers from the 15 Percent Rate-of-Progress

Plan

[[Page 66281]]

Workshop,'' memorandum from G. T. Helms, Chief, Ozone/Carbon Monoxide

Programs Branch, Environmental Protection Agency, October 29, 1993.

21. ``Rate-of-Progress Plan Guidance on the 15 Percent

Calculations,'' memorandum from D. Kent Berry, Acting Director, Air

Quality Management Division, Environmental Protection Agency, October

29, 1993.

22. ``Clarification of Issues Regarding the Contingency Measures

that are due November 15, 1993, for Moderate and Above Ozone

Nonattainment Areas,'' memorandum from D. Kent Berry, Acting Director,

Air Quality Management Division, Environmental Protection Agency,

November 8, 1993.

23. ``Credit for 15 percent Rate-of-Progress Plan Reductions from

the Architectural and Industrial Maintenance (AIM) Coating Rule,''

memorandum from John S. Seitz, Director, Office of Air Quality Planning

and Standards, Environmental Protection Agency, December 9, 1993.

24. ``Rule Effectiveness Guidance: Integration of Inventory,

Compliance, and Assessment Applications,'' memorandum from G. T. Helms,

Chief, Ozone/Carbon Monoxide Programs Branch, Office of Air Quality

Planning and Standards, Environmental Protection Agency, January 21,

1994.

25. ``Guidance on Projection of Nonroad Inventories to Future

Years,'' memorandum from Philip A. Lorang, Director, Emission Planning

and Strategies Division, Office of Air and Radiation, Environmental

Protection Agency, February 4, 1994.

26. ``Discussion at the Division Directors Meeting on June 1

Concerning the 15 Percent and 3 Percent Calculations,'' memorandum from

G. T. Helms, Chief, Ozone/Carbon Monoxide Programs Branch, Office of

Air Quality Planning and Standards, Environmental Protection Agency,

June 2, 1994.

27. ``Future Nonroad Emission Reduction Credits for Court-Ordered

Nonroad Standards,'' memorandum from Philip A. Lorang, Director,

Emission Planning and Strategies Division, Office of Air and Radiation,

Environmental Protection Agency, November 28, 1994.

28. ``Credit for the 15 Percent Rate-of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance (AIM)

Coating Rule and the Autobody Refinishing Rule,'' memorandum from John

S. Seitz, Director, Office of Air Quality Planning and Standards,

Environmental Protection Agency, November 29, 1994.

29. ``Transmittal of Rule Effectiveness Protocol for 1996

Demonstrations,'' memorandum from Susan E. Bromm, Director, Chemical,

Commercial Services and Municipal Division, Office of Compliance,

Environmental Protection Agency, December 22, 1994.

30. ``Future Nonroad Emission Reduction Credits for Locomotives,''

memorandum from Philip A. Lorang, Director, Emission Planning and

Strategies Division, Office of Air and Radiation, Environmental

Protection Agency, January 3, 1995.

31. ``Credit for the 15 Percent Rate-of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance (AIM)

Coating Rule,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

22, 1995.

32. ``Fifteen Percent Rate-of-Progress Plans--Additional

Guidance,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, May 5,

1995.

33. ``Regulatory Schedule for Consumer and Commercial Products

under Section 183(e) of the Clean Air Act,'' memorandum from John S.

Seitz, Director, Office of Air Quality Planning and Standards,

Environmental Protection Agency, June 22, 1995.

34. ``Update on the credit for the 15 percent Rate-of-Progress

Plans for Reductions from the Architectural and Industrial Maintenance

Coatings Rule,'' memorandum from John S. Seitz, Director, Office of Air

Quality Planning and Standards, Environmental Protection Agency, March

7, 1996.

II. Rate-Of-Progress and Contingency Plan Submittals for the Chicago

and Metro-East St. Louis Ozone Nonattainment Areas

A. Administrative Actions/Requirements

The Act requires States to observe certain procedural requirements

in developing SIPs and SIP revisions for submittal to the EPA. Sections

110(a)(2) and 110(l) of the Act provide that each SIP submitted by a

State must be adopted by the State after reasonable notice and public

hearing.

The State of Illinois held a public hearing on October 15, 1993, to

hear and collect public comments on the 15 percent ROP and 3 percent

contingency plans for both the Chicago and the Metro-East St. Louis

ozone nonattainment areas. Subsequently, the plans were adopted by the

State and submitted to EPA on November 15, 1993. The submittals

included records of public comments, hearing records, and responses to

public comments. The plans were supplemented with additional submittals

to the EPA on February 18, 1994, November 22, 1994, January 31, 1995,

and May 23, 1995. These subsequent submittals contain supplemental

documentation on the State's emission reduction estimates for various

source categories. At EPA's request, the Illinois Environmental

Protection Agency (IEPA) made additional submittals of technical

support information and updated emission estimates on May 9, 1996, and

July 22, 1996. All of the above submittals are considered to be part of

the record of decision for this rulemaking. All submittals are

available for review at the EPA Region 5 offices noted above.

On January 21, 1994, by letter, the EPA found the November 1993,

submittals to be incomplete due to an incomplete set of State emission

control regulations. Subsequently, the State adopted and submitted all

required regulations. EPA found the ROP and contingency plan submittals

to be complete, by letter, on June 15, 1995.

B. Accurate Emission Inventories

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

plans to include and be based on comprehensive, accurate, and current

inventories of actual emissions from all sources of relevant pollutants

in the nonattainment areas. On March 14, 1995 (60 FR 13631), EPA

approved base year (1990) VOC emission inventories for the Chicago and

Metro-East St. Louis ozone nonattainment areas (the inventories also

included major source emissions from surrounding areas). The VOC

emissions from these emission inventories establish the baseline for

Illinois' ROP and contingency plans.

It should be noted throughout the discussions that follow that

volatile organic emissions are referred to as VOC emissions. In the

Illinois ROP and contingency plans (as well as in the base year

emission inventory documentation), the State uses the term ``Volatile

Organic Material (VOM)'' rather than VOC. The State's definition of VOM

is equivalent to EPA's definition of VOC. The two terms are

interchangeable when discussing volatile organic emissions. For

consistency with the Act and with EPA policy, the term VOC is used in

this rulemaking. VOC emissions referred to in today's action are

identical to VOM emissions referred to in Illinois' ROP and contingency

measure plans.

C. Required VOC Emission Reductions

Following EPA ROP guidelines (primarily guidance contained in the

Guidance on the Adjusted Base Year

[[Page 66282]]

Emissions Inventory and the 1996 Target of the 15 Percent Rate of

Progress Plans, EPA-452/R-92-005, October 1992, and in the Guidance for

Growth Factors, Projections, and Control Strategies for the 15 Percent

Rate-of-Progress Plans, EPA-452/R-93-002, March 1993), the IEPA has

determined that creditable VOC reductions (as opposed to noncreditable

emission reductions defined in section 182(b)(1)(D) of the Act) of

249.98 tons per day (TPD) for the Chicago ozone nonattainment area, and

26.66 TPD for the Metro-East St. Louis ozone nonattainment area are

needed to achieve the 15% ROP requirement. To meet the 3 percent

contingency requirement, the IEPA determined that the contingency

measures must also be able to achieve a 31.92 TPD VOC emission

reduction in the Chicago ozone nonattainment area and 4.96 TPD VOC

emission reduction in the Metro-East St. Louis ozone nonattainment

area. The IEPA has fully documented the calculation of these emission

reduction requirements and has shown that EPA recommended procedures

were followed. This documentation includes identification of emission/

source growth factors and noncreditable emission reductions from

emission controls referenced in section 182(b)(1)(D) of the Act. Tables

1 and 2 summarize the calculation of emission reductions needed by

1996.

Table 1.-- Emission Reductions Required by 1996 for the Chicago Area

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

Calculation of reduction needs by 1996 Tons VOC/day

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

1990 Chicago Area Total VOC Emissions................... 1,363.40

1990 ROP Emissions (Anthropogenic only)................. 1,216.56

1990-1996 Noncreditable Reductions (Reductions from 1990

RVP, Pre-1990 FMVCP, and RACT Fix-up Regulations)...... 199.93

1990 Adjusted Base Year Emissions (1990 ROP Emissions

minus Noncreditable Reductions)........................ 1,064.05

15 Percent of Adjusted Base Year Emissions.............. 159.61

Total Required Emission Reductions by 1996 (15 Percent

of Adjusted Base Year Emissions plus Noncreditable

Reductions)............................................ 359.54

1996 Target Level (1990 ROP Emissions minus Total

Required Emission Reductions by 1996).................. 857.02

1996 Projected Emissions (1990 Adjusted Base Year

Emissions plus Growth Factors)......................... 1,107.00

Reduction Needs By 1996 To Achieve 15 Percent Net Of

Growth (1996 Projected Emissions plus 1996 Target

Level)................................................. 249.98

Contingency Measure Requirement (3% of Adjusted Base

Year Emissions)........................................ 31.92

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Total Emission Reductions Required.................. 281.90

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Table 2.--Emission Reductions Required by 1996 for the Metro-East St.

Louis Area

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Calculation of reduction needs by 1996 Tons VOC/day

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1990 Metro-East Area Total VOC Emissions................ 234.79

1990 ROP Emissions (Anthropogenic only)................. 174.65

1990-1996 Noncreditable Reductions (1990 RVP, Pre-1990

FMVCP, and RACT Fix-Up Reductions)..................... 10.75

1990 Adjusted Base Year Emissions (1990 ROP Emissions

minus Noncreditable Reductions)........................ 165.24

15 Percent of Adjusted Base Year Emissions.............. 24.79

Total Required Emission Reductions by 1996 (15 Percent

of Adjusted Base Year Emissions plus Noncreditable

Reductions)............................................ 35.54

1996 Target Level (1990 ROP Emissions minus Total

Required Emission Reductions by 1996).................. 139.11

1996 Projected Emissions (1990 Adjusted Base Year

Emissions plus Growth Factors)......................... 165.77

Reduction Needs By 1996 To Achieve 15 Percent Net Of

Growth (1996 Projected Emissions minus 1996 Target

Level)................................................. 26.66

Contingency Measure Requirement (3% of Adjusted Base

Year Emissions)........................................ 4.96

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Total Emission Reductions Required.................. 31.62

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D. Control Measures

Tables 3 and 4 below summarize the creditable emission reductions

from the 15% ROP and 3% contingency plan control measures. These tables

indicate the emission reduction credit the State has claimed for each

control measure, and the actual emission reduction credit which EPA

finds acceptable. Unless otherwise noted, the emission control measures

apply to both the Chicago and Metro-East St. Louis ozone nonattainment

areas. Table 5 indicates the date of EPA approval of State adopted

control measures, date of EPA promulgation of Federal control measures,

or an identification of the source for taking credit for a control

measure, where EPA promulgation has not occurred. Following the tables

is a discussion describing each of the emission control measures

selected to help achieve ROP and contingency measure plan requirements,

and EPA's review of the emission reduction claimed for each control

measure. (Note that the IEPA, in describing the selected emission

control measures and emission reduction impacts, does not distinguish

between ROP plan measures and contingency plan measures).

Emission reductions not needed to achieve 15 percent ROP and 3

percent contingency requirements in the Chicago and Metro-East St.

Louis ozone nonattainment areas, respectively, will be applied toward

achieving the post-1996 ROP requirement, leading to attainment of the

ozone air quality standard. (Post-1996 ROP plans are required to be

submitted under section 182(c)(2)(B) of the Act).

Certain federal measures relied on by Illinois to meet the 15

percent ROP requirement were not implemented by 1996: non-road small

engine standards, Toxic Substance Disposal Facility (TSDF) RACT Phase

II Controls, Architectural and Industrial Maintenance (AIM) coating,

traffic coating, and consumer and commercial products solvent control.

Many of the 15 percent ROP SIPs originally submitted to EPA have relied

on some of these federal measures as well as reductions from enhanced

I/M programs which were not implemented by 1996. Consequently, it is no

longer possible for these States to achieve the portion of the 15

percent reductions attributed to these programs by November 15, 1996.

Under these circumstances, disapproval of the 15 percent SIPs would

serve no

[[Page 66283]]

purpose. Therefore, in these circumstances, EPA will approve a 15

percent ROP plan SIP if the emission reductions under the plan will

achieve the 15 percent level as soon after November 15, 1996, as

practicable. To make this ``as soon as practicable'' determination, the

EPA must determine that the 15 percent ROP plan 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. The EPA does not believe that measures

meaningfully accelerate the 15 percent date if they provide only an

insignificant amount of reductions. However, as a minimum requirement,

EPA will approve a 15 percent SIP only if it achieves the reductions

from the measures needed to reach the 15 percent level by no later than

November 15, 1999.

The federal rules for federal non-road small engine standards and

TSDF RACT Phase II have been promulgated and emission reductions will

occur before November 15, 1999. Proposed rules have been published for

AIM coatings, traffic coatings, and consumer and commercial products,

and EPA expects final rules to be promulgated in 1998, with compliance

dates for these rules to occur no later than November 15, 1999. EPA has

reviewed other VOC SIP measures that are at least theoretically

available to Illinois, and has concluded that implementation of any

such measure that might be appropriate would not accelerate the date of

achieving the 15 percent reductions. Therefore, EPA finds that

Illinois' ROP plans for the Chicago and Metro-East ozone nonattainment

areas achieve 15 percent emission reduction as soon as practicable.

Table 3.--Control Measures for the Chicago Ozone Nonattainment Area

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

VOC reduction

VOC reduction credit

Control Measure state claimed accepted tons/

tons/day day

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

Mobile Source Measures:

Enhanced Vehicle I/M Program........ 19.60 See below

Conventional TCMs................... 2.00 2.00

National Energy Policy Act of 1992.. 0.20 0.20

Post-1994 Tier 1 Vehicle Emission

Rates.............................. 2.40 2.40

1995 Reformulated Gasoline.......... 112.79 112.79

1992 Vehicle I/M Program Amendments. 8.40 8.40

Federal Detergent Additive Gasoline. 2.20 2.20

Federal Non-Road Small Engine

Standards.......................... 4.37 4.37

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

Subtotal........................ 151.96 132.36

Industrial Source Measures:

RACT Geographic Expansion........... 3.43 3.43

Expanded RACT--Lowered Source Size

Cutoffs (25 Tons Per Year)......... 2.78 2.78

New Control Technique Guidelines

(CTG):

Batch Processes................. 12.60 3.21

Industrial Waste Treatment

Facilities (IWTF).............. 0.14 0.14

Volatile Organic Liquid (VOL)

Storage........................ 2.18 2.18

Plastic Parts Coating........... 0.28 0.28

Lithographic Printing........... 4.06 4.06

Automobile Refinishing.......... 16.30 16.30

Coke Oven National Emission Standard

for Hazardous Air Pollutants

(NESHAP)/Maximum Available Control

Technology (MACT).................. 6.93 6.93

SOCMI NESHAP........................ 1.33 1.33

TSDF RACT Phase I and II Controls... 2.08 2.08

Marine Vessel Loading............... 1.40 1.40

Tightening of RACT Standards and

Source Size Cutoffs................ 12.05 12.05

Plant Shut-Downs.................... 31.60 31.60

Improved Rule Effectiveness from

Clean Air Act Permit Program

(CAAPP)............................ 26.30 26.30

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

Subtotal........................ 123.46 114.07

Area Source Measures:

Stage II Service Station Vapor

Recovery........................... 23.67 23.67

AIM Coating......................... 13.28 10.60

Traffic and Maintenance Coatings.... 3.73 3.73

Underground Gasoline Storage Tank

Breathing Control.................. 4.87 4.87

Consumer and Commercial Products

Solvent Control.................... 8.10 8.10

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

Subtotal........................ 53.65 50.97

===============================

Total........................... 329.07 297.40

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

Table 4.--Control Measures for the Metro-East St. Louis Ozone

Nonattainment Area

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

VOC reduction

credit VOC reduction

Control measure requested credit

(TPD) approved (TPD)

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

Mobile Source Measures:

Enhanced Vehicle I/M Program........ 4.80 See below

Conventional TCMs................... 0.20 0.20

[[Page 66284]]

Post-1994 Tier 1 Vehicle Emission

Rates.............................. 0.19 0.19

7.2/8.2 psi RVP Conventional

Gasoline........................... 8.55 8.55

1992 Vehicle I/M Program Amendments. 0.20 0.20

Federal Detergent Additive Gasoline. 0.20 0.20

Federal Non-Road Small Engine

Standards.......................... 0.42 0.42

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

Subtotal........................ 14.56 9.76

Industrial Source Measures:

New CTGs or Available CTGs:

Batch Processes................. 0.36 0.36

IWTF............................ 0.10 0.10

Automobile Refinishing.......... 1.20 1.20

Coke Oven NESHAP/MACT............... 0.10 0.10

SOCMI NESHAP........................ 0.26 0.26

TSDF RACT Phase I and II Controls... 0.06 0.06

Marine Vessel Loading............... 11.82 11.82

Tightening of RACT Standards and

Source Size Cutoffs................ 0.39 0.39

Plant Shut-Downs.................... 1.44 1.44

Improved Rule Effectiveness from

CAAPP.............................. 9.50 9.50

Hazardous Air Pollutant (HAP)

Standards Early Reduction Program.. 0.74 0.74

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

Subtotal........................ 25.97 25.97

Area Source Measures:

AIM Coating......................... 0.94 0.75

Traffic and Maintenance Coating..... 0.62 0.62

Underground Gasoline Storage Tank

Breathing Control.................. 0.44 0.44

Consumer and Commercial Product

Solvent Reduction.................. 0.58 0.58

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

Subtotal........................ 2.58 2.39

===============================

Total........................... 43.11 38.12

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

Table 5.--Federal Approval or Promulgation of Control Measures

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

Control measure Date of EPA approval

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

Chicago Area TCMs............ September 21, 1995 (60 FR 4886).

Metro-East Area TCMs......... Date of EPA approval action is date of

today's Federal Register. See discussion

below.

1992 National Energy Policy Federal Regulation March 14, 1996 (61 FR

Act. 10621).

Post-1994 Tier 1 Vehicle Federal Regulation June 5, 1991 (56 FR

Emission Rates. 25724).

1995 Reformulated Gasoline... Federal Regulation February 16, 1994 (59

FR 7716).

Metro-East area 7.2 psi RVP March 23, 1995 (60 FR 5318).

Conventional Gasoline Rule.

1992 Vehicle I/M Program April 9, 1996 (61 FR 15715).

Amendments.

Federal Gasoline Detergent Federal Regulation November 1, 1994 (59

Additive. FR 54706).

Federal Non-Road Small Engine Federal Regulation August 2, 1995 (60 FR

Standards. 34582) See ``Guidance on Projection of

Nonroad Inventories to Future Years,''

February 4, 1994, and ``Future Nonroad

Emission Reduction Credits for Court-

Ordered Nonroad Standards,'' November

28, 1994.

Chicago Area RACT Geographic September 9, 1994 (59 FR 46562).

Expansion.

Chicago Area Expanded RACT-- October 21, 1996 (61 FR 54556).

Lowered Size Cutoffs (25

Tons VOC Per Year).

Batch Processes.............. April 2, 1996 (61 FR 14484).

IWTF......................... Federal Regulation April 22, 1994 (59 FR

19468).

VOL Storage Tanks............ August 8, 1996 (61 FR 41338).

Plastic Parts Coating........ October 26, 1995 (60 FR 54807).

Lithographic Printing........ November 8, 1995 (60 FR 56238).

Automobile Refinishing....... July 25, 1996 (61 FR 38577).

Coke Oven NESHAP............. Federal Regulation October 27, 1993 (58

FR 57911).

SOCMI NESHAP................. Federal Regulation April 22, 1994 (59 FR

19454).

TSDF RACT (RCRA) Phase I and Federal Regulation Phase I, June 21, 1990

II. (55 FR 25454) Phase II, December 6, 1994

(59 FR 62896) See ``Credit Toward the 15

Percent Rate-Of-Progress Reductions from

Federal Measures,'' May 6, 1993.

Marine Vessel Loading Control April 3, 1995 (60 FR 16801).

Tightened RACT Coating February 13, 1996 (61 FR 5511).

Standards.

Tightened RACT SOCMI Air September 27, 1995 (60 FR 49770).

Oxidation.

Plant Shut-downs............. See discussion below.

Improved Rule Effectiveness March 7, 1995 (60 FR 12478).

from CAAPP.

HAP Standards Early Reduction Federal Regulation November 21, 1994 (59

Program. FR 59924).

Underground Gasoline Storage March 23, 1995 (60 FR 15233).

Tank Breathing Controls.

[[Page 66285]]

Stage II Gasoline Vapor January 12, 1993 (58 FR 3841).

Recovery.

AIM Coatings................. Creditable toward ROP. See ``Update on

the Credit for the 15 Percent ROP Plans

for Reductions from the AIM Coatings

Rule,'' March 7, 1996.

Traffic and Maintenance Creditable toward ROP. See ``Update on

Coatings. the Credit for the 15 Percent ROP Plans

for Reductions from the AIM Coatings

Rule,'' March 7, 1996.

Consumer and Commercial Creditable toward ROP. See ``Regulatory

Products Solvent Control. Schedule for Consumer and Commercial

Products under Section 183(e) of the

Clean Air Act,'' June 22, 1995.

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

1. Mobile Sources

a. Enhanced Vehicle I/M. The Illinois 15 percent ROP plan submittal

claims emission reduction credit for enhanced vehicle I/M for the

Chicago and Metro-East St. Louis areas. The State has signed a contract

for the construction and implementation of enhanced I/M, which provides

that enhanced I/M testing will begin in January 1999. Based on EPA's

review of the State's plan submittal, the State has adopted sufficient

measures, in conjunction with credit from certain Federal measures, to

achieve 15 percent ROP and 3 percent contingency requirements without

enhanced I/M. Enhanced I/M will play a significant role in achieving

post-1996 9 percent ROP requirements, and ultimately, help bring the

Chicago and Metro-East St. Louis ozone nonattainment areas into

attainment of the public health based ozone air quality standards. The

amount of emission reduction credit which can be taken for enhanced I/M

will be determined when Illinois submits and EPA takes action on the

State's 9 percent ROP plan.

b. Conventional TCMs. The Metropolitan Planning Organizations (MPO)

for the Chicago and Metro-East St. Louis areas (Chicago Area

Transportation Study and East-West Gateway Coordinating Council,

respectively) are administering a number of TCM projects to both reduce

vehicle miles traveled (VMT) and the amount of VOC emissions per VMT.

The projects have been programmed and funded through the areas'

Transportation Improvement Programs (TIP) under the federal Congestion

Mitigation and Air Quality Improvement Program (CMAQ).2

Illinois is claiming emission reductions from the TCMs in its 15

percent ROP plans for the Chicago and Metro-East areas.

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

\2\ MPOs can utilize United States Department of Transportation

(DOT) funds from CMAQ. CMAQ is a federal program which provides

funding for transportation related projects and programs designed to

contribute to attainment of air quality standards.

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

States can take credit for TCMs which are approved as revisions to

the SIP. EPA's requirements for TCMs are summarized in the June 1993,

EPA guidance document, Guidance on Preparing Enforceable Regulations

and Compliance Programs for the 15 Percent Rate-of-Progress Plans. The

required elements are (1) a complete description of the measure, and,

if possible, its estimated emissions reduction benefits; (2) evidence

that the measure was properly adopted by a jurisdiction(s) with legal

authority to execute the measure; (3) evidence that funding will be

available to implement the measure; (4) evidence that all necessary

approvals have been obtained from all appropriate government offices;

(5) evidence that a complete schedule to plan, implement, and enforce

the measure has been adopted by the implementing agencies; and (6) a

description of any monitoring program to evaluate the measure's

effectiveness and to allow for necessary in-place corrections or

alterations.

The Chicago area TCMs were approved on September 21, 1995 (60 FR

4886). The Metro-East St. Louis area's 15 percent ROP plan includes

work trip reductions, transit improvements, and traffic flow

improvements TCMs. These TCMs are being approved in today's action as a

revision to the SIP because they fully satisfy all the requirements

based on the following: (1) a complete description of the program and

estimated emission reduction are provided in documentation included in

the docket for this rulemaking action; (2) the measure has been adopted

by the East-West Gateway Coordinating Council, the authorized MPO for

the St. Louis metropolitan area; (3) the program is currently operating

and has received federal CMAQ program money for operation; (4) all

necessary approvals have been obtained from DOT in the FY 1994-1997 TIP

(which includes the TCMs); (5) the TIP provides the schedule,

implementation mechanism, and also the enforcement mechanism for the

TCM (the conformity provisions in 40 CFR part 93 provide that TCMs in

an approved SIP must be implemented on schedule before a conformity

determination can be made by DOT); and (6) the CMAQ program requires

monitoring of programs funded under CMAQ and annual reports to DOT on

achieved emission reductions.

The emission reductions claimed in the ROP plans for both the

Chicago and Metro-East TCMs are adequately documented and acceptable.

c. National Energy Policy Act of 1992. The National Energy Policy

Act (EPAct) was enacted in October 1992. EPAct mandates implementation

(use) of Alternative Fueled Vehicles (AFVs) in federal, State, and

utility fleets. EPAct requires that 25% of new vehicle purchases by

federal fleets, 10% of new vehicle purchases by State fleets, and 30%

of new vehicle purchases by utility fleets must be AFVs beginning in

1996. IEPA estimated that EPAct would implement approximately 2,000

AFVs in the Chicago Area by 1996. The EPA mobile source emission factor

model, MOBILE5a, was used to determine the impacts of EPAct on mobile

source emissions. The State's emission reduction estimates for this

federal measure are adequately documented and acceptable.

d. Post-1994 Tier 1 Emission Rates. Section 202 of the Act sets new

Tier 1 emission standards for motor vehicles, some of which will be

implemented prior to the end of 1996. The Tier 1 standards are

approximately twice as stringent as prior (established prior to the

1990 Clean Air Act amendments) motor vehicle emission standards. For

passenger cars and light-duty trucks weighing up to 6,000 pounds, the

implementation of the standards is to be phased-in over three years, 40

percent of the manufactured vehicles for model year 1994, 80 percent of

the manufactured vehicles in model year 1995, and 100 percent of the

manufactured vehicles in the model year 1996 and later. For gasoline

and diesel powered light-duty trucks weighing more than 6,000 pounds,

the Tier 1 standards are to be met in 50 percent of the manufactured

vehicles in model year 1996 and in 100 percent of the manufactured

vehicles thereafter.

The IEPA has determined that the emission reductions resulting from

these tightened vehicle standards are

[[Page 66286]]

creditable toward the 15 percent ROP plan and used the MOBILE5a

emission factor model to calculate the VOC emission reductions for this

control measure. The State's emission reduction estimates are

adequately documented and acceptable.

e. 1992 I/M Program Amendments. As a result of an agreement

resolving a lawsuit between Wisconsin and EPA, the State of Illinois

added a tamper check and two-speed idle test to the basic I/M program

in the Chicago metropolitan area. The I/M program area coverage was

also increased to encompass almost all of the Chicago metropolitan

area. These changes in the I/M program were implemented in 1992, and

were approved by EPA on April 9, 1996 (61 FR 15715). Similar changes in

the components of the I/M program were implemented in the Metro-East

St. Louis area, as well.

The IEPA used the MOBILE5a emission factor model to estimate the

emission reductions for both areas. The State's emission reduction

estimates are adequately documented and are acceptable.

f. Federal Detergent Gasoline Additive. The Federal detergent

gasoline additive regulation was promulgated November 1, 1994 (59 FR

54706). This regulation requires, beginning January 1, 1995, that

gasoline sold nationwide contain additives to prevent accumulation of

deposits in engines and fuel systems. Preventing such deposits

maintains the efficiencies of engine systems and reduces VOC emissions

resulting from engine efficiency degradation.

The State has reviewed guidance from EPA's Office of Mobile Sources

which indicates that the use of gasoline containing the required

additives will reduce vehicle VOC emissions by 0.7 percent in 1996.

This guidance is the basis for the VOC emission reductions claimed in

the 15 percent ROP plans for this control measure. The emission

reduction estimates are acceptable.

g. Federal Non-Road Small Engine Standards. Federal standards for

non-road engines (25 horsepower and below) were promulgated on July 3,

1995 (60 FR 34582). The standards would primarily affect 2 stroke and 4

stroke lawn and garden equipment and light commercial, construction,

and logging equipment. Although full implementation of this control

measure will not occur until after November 15, 1996, the States can

take credit for this measure pursuant to EPA policy memoranda,

``Guidance on Projection of Nonroad Inventories to Future Years,''

February 4, 1994, and ``Future Nonroad Emission Reduction Credits for

Court-Ordered Nonroad Standards,'' November 28, 1994. Based on this

policy, the IEPA assumed that the Federal non-road small engine

standards would reduce 1996 VOC emissions from these sources by 4.5

percent. The IEPA also assumes that these rules will have a rule

effectiveness of 100 percent because the rules affect all manufacturers

of small engines in the nation. The 4.5 percent emission reduction

claim is assumed to appropriately account for rule penetration (the

fraction of small engine emissions affected by the rule). The assumed

emission reduction percentage is acceptable.

h. Reformulated Gasoline. Beginning January 1, 1995, sellers of

gasoline in the Chicago ozone nonattainment area were required to sell

only reformulated gasoline as required under federal regulation

promulgated February 16, 1994 (59 FR 7716). Using the MOBILE5a emission

factor model, the IEPA has determined that the use of reformulated

gasoline will result in a 15 percent reduction in vehicle VOC

emissions. The IEPA notes that the use of reformulated gasoline will

also result in lower gasoline marketing and off-road engine emissions

in the Chicago ozone nonattainment area. The emission reduction

estimates are adequately documented and acceptable.

i. 7.2 RVP Gasoline. On October 25, 1994, the IEPA submitted to the

EPA a SIP revision request for the purpose of lowering the RVP of

gasoline from 9.0 pounds per square inch (psi) to 7.2 psi in the Metro-

East St. Louis ozone nonattainment area. EPA approved this SIP revision

on March 23, 1995 (60 FR 15233). The Illinois rule requires the use of

7.2 psi RVP gasoline in the Metro-East St. Louis area during the period

of June 1 through September 15 each year beginning in 1995. The rule

grants a 1 psi waiver for ethanol blended gasolines that have an

ethanol content between 9 and 10 percent ethanol by volume.

The IEPA used the MOBILE5a emission factor model to calculate the

resulting VOC emission reduction for on-highway mobile sources.

Illinois used a RVP ratio (reduced RVP versus average RVP of gasoline

sold in 1990) along with 1996 gasoline usage estimates to calculate the

VOC emission reduction from gasoline marketing sources. The calculation

of the emission reduction is adequately documented and acceptable.

2. Industrial Sources

a. RACT Geographic Expansion. The State, on August 13, 1992,

adopted a rule to expand the coverage of existing RACT regulations to

include Oswego Township in Kendall County, and Aux Sable and Goose Lake

Townships in Grundy County. This geographic expansion has affected

several facilities, which are adequately documented in the ROP plan

submittal. EPA approved this expansion on September 9, 1994 (59 FR

46562). The emission reduction estimate is acceptable.

b. RACT--Reduction in Major Source Threshold. Section 182(d) of the

Act defines ``major source'' for severe ozone nonattainment areas to

include any stationary source or group of sources located within a

contiguous area and under common control that emits, or has the

potential to emit, at least 25 tons of VOC per year. This establishes a

maximum source size cutoff for the application of RACT rules (the State

has adopted RACT rules with much smaller source size cutoffs for most

applicable source categories) for severe ozone nonattainment areas,

such as the Chicago area.

On January 6, 1994, the Illinois Pollution Control Board (IPCB)

adopted modified source size cutoffs of 25 tons per year, potential to

emit, for flexographic/rotogravure printing operations, petroleum

solvent dry cleaners, and non-Control Technology Guideline (non-CTG)

sources in the Chicago ozone nonattainment area. Other source

categories regulated in the Chicago area are covered by category-

specific source size applicability cutoffs well below the 25 ton VOC

per year specified in section 182(d) of the Act. EPA approved this

regulation on October 21, 1996 (61 FR 54556). The State's emission

reduction estimates for this rule are adequately documented and

acceptable.

c. Post-1990 CTG Rules. Section 182(b)(2)(A) of the Act requires

States with moderate and above ozone nonattainment areas to adopt RACT

rules covering post-1990 CTG source categories. Illinois claimed

emission reduction credit for many of the State rules adopted to meet

the section 182(b)(2)(A) requirement. The following briefly discusses

these rules and claimed emission reduction credit taken by the State:

i. Batch Processes. Illinois' batch process rule controls VOC

emissions from batch chemical processes found in the following

industries: plastic materials and resin manufacturing; cyclic crudes

and intermediates manufacturing and processing; industrial organic

chemical manufacturing; pharmaceuticals manufacturing; gum and wood

chemicals manufacturing; and agricultural chemicals manufacturing. This

rule was derived from an EPA draft

[[Page 66287]]

CTG dated December 29, 1993, and an EPA Alternative Control Techniques

(ACT) document completed in February 1994. The rule was approved by EPA

on April 2, 1996 (61 FR 14484). The IEPA used RACT flow rate equations

from the draft CTG for the development of the control specifications of

batch processes. Emissions must be controlled using condensers,

absorbers, adsorbers, thermal destruction systems, flares, thermal

incinerators, or catalytic incinerators. In determining the

applicability of the control requirements of the rule, owners or

operators must determine the actual average flow rates for vent

streams. If the actual average vent stream flow rate (standard cubic

feet per minute) is below the applicability flow rate value calculated

using the RACT flow rate equations (specific to volatility), the VOC

from a process vent must be controlled with a reduction efficiency of

90 percent (or down to a VOC concentration of no more than 20 parts per

million volume). Sources are exempted from emission controls if the

annual VOC emissions are less than 500 pounds for individual batch

operations or less than 30,000 pounds for a batch process train. The

owner or operator must keep records of average flow rates during

testing periods and annual VOC mass emission rates. Compliance with

this rule is required by March 15, 1996.

The IEPA has determined there are 15 affected facilities in the

Chicago ozone nonattainment area and 3 affected facilities in the

Metro-East St. Louis ozone nonattainment area. The EPA accepts the

emission reductions of 3.21 TPD claimed for facilities in the Chicago

area, and 0.36 TPD in the Metro-East area.

It should be noted that the State, during discussions with the EPA,

has raised the point that a significant additional VOC emission

reduction may be claimed for this source category. In the earlier

submittals, the State indicated a significant emission reduction of

9.39 TPD for an alcohol stripper unit at the Stepan Company's Millsdale

facility (Chicago ozone nonattainment area) (permit/source number

78030038087). The State and EPA are working with the affected company

to determine the exact timing of the emission reduction. If it is

ultimately determined that the emission reduction occurred after 1990,

the State will seek the correction of the ROP plan to credit this

emission reduction in the post-1996 ROP plans.

ii. IWTF. The State is claiming emission reduction from the NESHAP

for this source category, 40 CFR part 63, subpart G, promulgated April

22, 1994 (59 FR 19468). The State's emission reduction estimates for

this rule are adequately documented and acceptable. It should be noted,

however, that the IEPA is still expected to develop a State rule for

this source category to implement RACT. If a RACT level rule is adopted

and implemented in the near future, the State may claim additional

emission reduction credits for this source category in the post-1996

ROP plans.

iii. VOL Storage. On November 30, 1994, the IEPA submitted an

adopted rule and supporting information for the control of VOC

emissions at VOL storage operations in the Chicago and Metro-East St.

Louis ozone nonattainment areas. The EPA approved this rule on August

8, 1996 (61 FR 41339).

The VOL storage emission control requirements apply to facilities

storing VOLs with vapor pressures of 0.75 pounds per square inch

absolute (psia) or greater (facilities storing VOLs with vapor

pressures equal to or exceeding 0.5 psia must keep records of VOLs

stored including VOL vapor pressures) in any storage tank of 40,000

gallons capacity or greater. The rule does not apply to vessels storing

petroleum liquids, which are covered under other rules.

For fixed roof tanks, the VOL storage rule requires the

installation of internal floating roofs with foam or liquid-filled

seals and secondary seals to close the gap between the tank's inner

wall and the floating roof. These controls must be implemented by March

15, 1996.

External floating roof tanks must be equipped with primary and

secondary seals before March 15, 2004, or at the time of the next tank

cleaning, whichever comes first.

For internal floating roof tanks, the internal floating roofs must

be equipped with primary and secondary seals before March 15, 2004, or

at the time of the next tank cleaning, whichever comes first.

Sources may also use closed vent systems and emission control

devices provided the emission control systems are operated with no

detectable emissions or monitored VOC concentrations above 500 parts

per million above background levels. Control devices must be operated

to reduce VOC emissions by at least 95 percent. Storage vessels of

40,000 gallons or greater storage capacity that store VOLs with a

maximum true vapor pressure equal to or greater than 11.1 psia must be

equipped with a closed vent system and emission control device with

emission control efficiency equal to or greater than 95 percent.

Recognizing that only fixed roof tanks would be required to

implement emission controls by the end of 1996, the IEPA claimed

emission reductions for only these types of tanks. The emission

reduction estimates are adequately documented and acceptable.

iv. Plastic Parts Coating. On May 5, 1995, the IEPA submitted an

adopted rule for the control of VOC emissions from automotive/

transportation and business machine plastic parts coating operations in

the Chicago and Metro-East St. Louis ozone nonattainment areas (no

applicable sources exist in the Metro-East St. Louis area). The EPA

approved this rule on October 25, 1995 (60 FR 54807).

The rule specifies the VOC content limits for various types of

coating distinguishing between coating of automotive/transportation

plastic parts and business machine plastic parts (see 60 FR 54808).

Sources may also choose to use add-on control devices which achieve

equivalent emission reductions. Compliance with this rule must be met

by March 15, 1996. The emission reductions claimed for this source

category are adequately documented and acceptable.

v. Lithographic Printing. Using EPA's September 1993 draft CTG for

this source category, the IEPA developed a regulation establishing VOC

content limits, emission control requirements, and required work

practices for this source category. The State's rule includes

limitations on the VOC content of fountain solutions and cleaning

solutions. The rule also provides for the use of afterburners and other

emission control devices for heat set web offset lithographic printing

operations. The rule establishes recordkeeping, testing, and reporting

requirements as well as work-practice requirements, such as a

requirement for the storage of cleaning materials and spent cleaning

solutions in air-tight containers.

The rule is applicable to all lithographic printing lines at a

facility if the VOC emissions, in total, from the lithographic printing

lines exceed 45.5 kilograms per day or 100 pounds per day. The rule

also applies to facilities with heat set web offset printing lines if

the maximum theoretical emissions of VOC, in total, ever exceed 90.7

megagrams per year or 100 tons per year. Compliance with the rule is

required by March 15, 1996. The EPA approved this rule on November 8,

1995 (60 FR 56238).

The IEPA has determined that 113 facilities in the Chicago ozone

nonattainment area will be potentially affected by the rule, with 49

facilities likely to require new emission controls

[[Page 66288]]

or process modifications. Only one facility in the Metro-East St. Louis

area is expected to be affected by the rule, with no anticipated

reduction in VOC emissions. Emission reduction credits for the Chicago

facilities were calculated using the emission reduction factors for

add-on controls, fountain solution reformulation or process

modification, and cleaning solution reformulation provided for model

plants in the September 1993 draft CTG. The emissions reduction credit

claimed is adequately documented and acceptable.

vi. Automobile Refinishing. The EPA, on the behalf of the IEPA,

contracted with Midwest Research Institute (MRI) to conduct a study of

the motor vehicle refinishing industry in the Chicago and Metro-East

ozone nonattainment areas. This study included an estimate of the 1990

base year emissions and the study report recommended emission control

strategies and possible resultant emission reductions. The study

concluded that approximately 1,463 refinishing shops are located in the

Chicago ozone nonattainment area, and 107 are located in the Metro-East

ozone nonattainment area.

Based on the study, review of similar regulations developed by the

California Air Resources Board (CARB), and discussions with local

automobile refinishing representatives, the IEPA adopted the following

coating VOC content limits (pounds VOC per gallon of coating, minus

water and exempt compounds):

Pretreatment Wash Primer....................................... 6.5

Precoat........................................................ 5.5

Primer/Primer Surfacer Coating................................. 4.8

Primer Sealer.................................................. 4.6

Topcoat System................................................. 5.0

Basecoat/Clearcoat............................................. 5.0

Three or Four Stage Topcoat System............................. 5.2

Specialty Coatings............................................. 7.0

Anti-Glare/Safety Coating...................................... 7.0

In addition to these VOC content limits, the regulation also

establishes VOC content limits for surface preparation/cleaning

products (6.5 pounds VOC per gallon of plastic parts cleaning compounds

and 1.4 pounds of VOC per gallon of other surface cleaning/preparation

products). The rule also requires the use of gun cleaners designed to

minimize solvent evaporation during the cleaning, rinsing, and draining

operations with recirculation of solvent during the cleaning operation

and collection of spent solvent. Spent and fresh solvent must be stored

in closed containers. Coating application must be done using High

Volume, Low Pressure guns or electrostatic application systems. As an

alternative to the VOC content limits, a facility may use add-on

control systems, such as incinerators or carbon adsorbers, which would

reduce VOC emissions by at least 90 percent. Facilities that use less

than 20 gallons of coatings per year total are exempted from the

coating application and gun cleaner equipment requirements.

Refinishing facilities are required to keep monthly records of

coating purchases and the VOC contents of these coatings. Facilities

are also required to use coatings in accordance with the coating

manufacturer's specifications. Compliance with the rule must be met by

March 15, 1996. The EPA approved the rule on July 25, 1996 (61 FR

38577). The emission reduction estimates for this rule are adequately

documented and acceptable.

d. Coke Oven NESHAP. The coke oven NESHAP, 40 CFR part 63, subpart

L, promulgated on October 27, 1993 (58 FR 57911), control emissions

from coke oven doors, off-takes, lids, and charging. The emission

control requirements of the rule must be met by the end of 1995. The

emission reduction estimates are adequately documented and acceptable.

e. Hazardous Organic NESHAP--SOCMI. The SOCMI NESHAP, 40 CFR part

63, subpart F, promulgated April 22, 1994, (59 FR 19454) affects

processes which produce one or more of the 396 designated SOCMI

chemicals using one or more designated HAPs as a reactant or producing

HAPs as a byproduct or co-product. Under EPA policy memorandum,

``Credit Toward the 15 Percent Rate-Of-Progress Reductions from Federal

Measures,'' May 6, 1993, 5 percent emission reduction from 1990 base

line levels can be claimed from this rule. The State's emission

reduction estimates are acceptable.

f. TSDF RACT Phase I and II. Under RCRA, EPA is taking action to

control VOC emissions in three phases. Phase I regulations were

promulgated by the EPA in June 1990 and became effective in December

1990. Phase II regulations were promulgated on December 6, 1994. The

effective date for the Phase II regulations was suspended until

December 6, 1996 (see 61 FR 59932, November 25, 1996). The Phase II

compliance date is December 8, 1997. Although final compliance with the

Phase II regulation will occur after November 15, 1996, States can take

emission reduction credit for Phase II TSDF regulations toward the 15

percent ROP plan pursuant to EPA policy memorandum, ``Credit Toward the

15 Percent Rate-Of-Progress Reductions from Federal Measures,'' May 6,

1993. Illinois' emission reduction estimates for these federal rules

are acceptable.

g. Marine Vessel Loading Controls. The State's rule requires a 95

percent reduction in VOC emissions resulting from the loading of

gasoline and crude oil into marine vessels at all marine terminals in

the Chicago and Metro-East St. Louis ozone nonattainment areas which

load gasoline or crude oil into tank ships and barges. The rule applies

between May 1 and September 30 each year beginning in 1996, and

requires that vessel cargo compartments be closed to the atmosphere

during loading using: (1) Devices to protect tanks from

underpressurization and overpressurization; (2) level-monitoring and

alarm systems designed to prevent overfilling; and (3) devices for

cargo gauging and sampling. VOC capture must be achieved with either

(1) a vacuum-assisted vapor collection system, or (2) certification of

vessel vapor-tightness. Piping used in the transfer of gasoline or

crude oil must be maintained and operated to prevent visible liquid

leaks, significant odors, and visible fumes. Owners and operators must

use leak inspection procedures similar to those used at petroleum

refineries.

Based on IEPA's records, there are five affected facilities in the

Chicago ozone nonattainment area and six affected facilities in the

Metro-East St. Louis ozone nonattainment area. To calculate VOC

emission reduction for this source category, the IEPA assumed that

vapor recovery and emissions control systems can reduce VOC emissions

by 90 percent. The rule was adopted on October 20, 1994, and was

approved by the EPA on April 3, 1995 (60 FR 16801). The emission

reduction credits claimed are adequately documented and acceptable.

h. Tightening of RACT Standards and Cutoffs. Based on an April

1993, Science Applications International Corporation (SAIC) report

titled, ``Technical Document for Reasonably Available Control

Technology for Illinois to Assist in Achieving 15 Percent Reduction in

Ozone Nonattainment Areas,'' the IEPA determined that the VOC content

limits for coatings could be lowered for the following source

categories: Automobile/Truck Coating; Paper Coating; Fabric Coating;

Metal Furniture Coating; Flexographic/Rotogravure Printing;

Miscellaneous Surface Coating; Can Coating; Metal Coil Coating; Vinyl

Coating; Miscellaneous Metal Coating; and Large Appliance Coating.

After further consideration, the IEPA determined that no additional

tightening of existing coating VOC

[[Page 66289]]

content limits could be justified at this time for automobile/truck

coating and flexographic/rotogravure printing.

The State's tightened RACT coating limits are similar to those used

in the South Coast Air Quality Management District of California. The

tightened limits were adopted by the Illinois Pollution Control Board

on April 20, 1995, and were approved by EPA on February 13, 1996 (61 FR

5511). The tightened SOCMI air oxidation requirements were adopted on

October 20, 1994, and were approved by EPA on September 27, 1995 (60 FR

49770). The 15 percent ROP documentation indicates that for the Chicago

area an estimated 8.00 TPD emission reduction has occurred from sources

covered under the tightened RACT coating limit rule, and 4.05 TPD

emission reduction has occurred from sources covered under the

tightened SOCMI air oxidation rule. In the Metro-East area, 0.39 TPD

were claimed, while no emission reductions occurred due to the SOCMI

air oxidation rule. The emission reductions claimed are acceptable.

i. Plant Shut-downs. Facilities or plant units which have been

shut-down since 1990 were identified through: (1) Facility responses to

permit renewals; (2) responses to Annual Emission Report (AER)

requests; (3) direct field inspections; and (4) requests from the

facilities themselves to have their source permits withdrawn due to

shut-down. Facility closings and emission reductions were verified

through review of Emission Inventory System (EIS) records, permit file

data, and field reports.

To further support the estimated emission reductions, the IEPA has

provided the EPA with a list of closed facilities. The IEPA maintains a

plant shut-down file which documents the methods of verification.

The shut-down credits were calculated using 1990 emissions

projected to 1996 using the Emissions Growth Assessment System (EGAS)

growth factors for specific source units. The projected 1996 emissions

were used because these emissions had already been built into the

projected 1996 emissions used to calculate the emission targets under

the ROP plans.

Emission reductions from the plant shut-downs are made permanent

through the closing of source permits and, therefore, are acceptable.

The source permits for these facilities will not be reissued by the

IEPA. If these sources wish to restart, they will have to go through

new source review and will be controlled through new source emission

control requirements.

j. Improved Rule Effectiveness. Illinois' Title V program, the

CAAPP, covers most source facilities in the two ozone nonattainment

areas. The IEPA submitted the CAAPP to the EPA in November 1993, and

the EPA gave the program interim approval on March 7, 1995 (60 FR

12478). The program became effective in 1996.

A primary emphasis of the CAAPP is rigorous recordkeeping,

reporting, and monitoring. The CAAPP regulations include recordkeeping,

reporting, and monitoring requirements not covered under existing

regulations or emphasizes existing regulations for such requirements.

Sources must submit progress reports to the IEPA at a minimum of every

6 months and the permittees must certify no less frequently than

annually that the facilities are in compliance with the permit

requirements. Source owners or operators must also promptly report any

deviances from permit conditions to the IEPA. The CAAPP requirements

contain significant civil and criminal penalties for source owners or

operators failing to comply with the permit requirements, including the

recordkeeping, reporting, and monitoring requirements.

The IEPA used EPA's rule effectiveness evaluation questionnaire,

and, based on the requirements of the CAAPP regulations, determined

that the CAAPP requirements should lead to a rule effectiveness of 95

percent for all source facilities covered by the CAAPP. The IEPA

determined the VOC emission reduction credit for this rule

effectiveness improvement by considering the ``current'' rule

effectiveness for each facility or source category used to develop the

1990 base year emissions inventory (80 percent for most facilities,

with some facilities starting at 92 percent based on prior study

results). The IEPA documented the rule effectiveness improvement

findings in a report titled ``Impact of CAAPP on Inventory RE.''

In comments on a draft version of the ROP plan, the EPA had

indicated to the IEPA that recent changes in Title V requirements and

guidelines to allow more source flexibility could jeopardize the

anticipated improvement in rule effectiveness since some of the changes

in EPA policy could relax compliance monitoring. Particularly, the

increased flexibility would allow sources to switch from enhanced

monitoring procedures to less stringent Compliance Assurance Monitoring

(CAM) procedures. The IEPA, however, views this increased source

flexibility as having minimal impact on the rule effectiveness to be

obtained from the CAAPP, in light of the overall requirements sources

are still subject to under CAAPP. It is pointed out that the EPA

engineers who are technically supporting the compliance assurance

monitoring procedures in EPA's revised Title V policy agree with a rule

effectiveness estimate of 95 percent for programs like the CAAPP. The

EPA agrees with this view and accepts the estimated emission reduction

claimed.

k. HAP Early Reduction Program. This program, promulgated on

November 21, 1994 (59 FR 59924), allows an existing source subject to

an applicable section 112(d) standard to be granted a 6-year compliance

extension upon commitment by the owner or operator of the source that

the source has achieved a reduction of 90 percent or more of HAP by

1994. Emission reductions are determined by comparing the post-control

emissions with verifiable and actual emissions in a base year not

earlier than 1987, except that 1985 or 1986 may be used as a base year

if the emissions data are based on information received before November

15, 1990. In the Metro-East St. Louis nonattainment area, only one

applicable facility has committed to the early reduction program. Under

the program, such commitments are federally enforceable. The reduction

in VOC from this facility due to the program, therefore, is creditable.

3. Area Sources

a. Stage II Vapor Recovery. On August 13, 1992, Illinois adopted

Stage II vapor recovery rules, which require the return of gasoline

vapors to underground storage tanks during automobile refueling. Full

phase-in of the requirements occurred on November 1, 1994. EPA approved

these rules on January 12, 1993 (58 FR 3841).

The IEPA has monitored the effectiveness of the Stage II

regulations and the status of service station compliance. The Stage II

controls have been established at most service stations in the Chicago

nonattainment area and have been certified to reduce VOC emissions by

at least 95 percent. The emission reduction estimates derived from this

observation are acceptable.

b. Architectural Coating. EPA is in the process of adopting a

national rule applicable to manufacturers of AIM coatings. EPA proposed

this rule on June 25, 1995 (61 FR 32729). Based on EPA policy

memoranda, the State has assumed that an emission reduction credit of

20 percent could be taken for this source category. Even though the

final rule has not been promulgated, and the compliance with the rule

is not expected until 1998, the EPA is allowing States to take credit

for 20

[[Page 66290]]

percent emission reduction credit for this source category, relative to

1990 emission levels. See ``Credit for the 15 Percent Rate-Of-Progress

Plans for Reductions from the AIM Coating Rule,'' March 22, 1995, and

``Update on the Credit for the 15 Percent Rate-Of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance Coatings

Rule,'' March 7, 1996. The State has calculated emission reductions for

architectural coatings separate from the traffic marking and

maintenance coating provisions of the AIM rule. The State's emission

reduction estimates for architectural coatings are acceptable.

c. Traffic Marking and Maintenance Coating. The State has chosen to

rely on the Federal AIM rule (now expected to be implemented in 1998)

for emission reductions in this source category. Although EPA policy

memoranda,''Credit for the 15 Percent Rate-Of-Progress Plans for

Reductions from the Architectural and Industrial Maintenance Coating

Rule,'' March 22, 1995, and ``Update on the Credit for the 15 Percent

Rate-Of-Progress Plans for Reductions from the Architectural and

Industrial Maintenance Coatings Rule,'' March 7, 1996, indicated that

the State can assume a 20 percent emission reduction for this source

category, the State notes that a more appropriate method for

determining the emission reduction for traffic marking and maintenance

coatings would involve consideration of the VOC content limit (150

grams VOC/liter coating) proposed in EPA's draft AIM rule. Data

supplied by the Illinois Department of Transportation indicates that

the median VOC content in traffic/maintenance coatings in the State of

Illinois in 1990 was 413 grams/liter coating (this median VOC content

level is assumed to apply to both ozone nonattainment areas in the

State). Comparing the proposed limit to this median VOC content level

indicates that a 63.7 percent reduction in VOC emissions would occur if

the proposed VOC content limit were attained. This leads to VOC

reduction estimates of 3.73 TPD for the Chicago area and 0.62 TPD for

the Metro-East St. Louis area. These estimates are acceptable.

d. Underground Gasoline Storage Tank Breathing Controls. The State

rule, adopted by the State on September 15, 1994, requires the

installation of Pressure/Vacuum relief-control valves (P/V valves) on

gasoline storage tank vents by March 15, 1995. The P/V valves must

remain closed against tank pressures of at least 3.5 inches water

column and tank vacuums of at least 6 inches water column. Gasoline

storage tank owners must maintain records of malfunctions and repairs

and must register installation of the P/V valves with the IEPA prior to

March 15, 1995. The P/V valves must be tested annually and the owners

must keep records of the tests. EPA approved this rule on March 23,

1995 (60 FR 15233).

The IEPA estimates that this rule will reduce gasoline breathing

emissions by 90 percent. This emission reduction estimate is acceptable

as are the emission reduction credits claimed for the Chicago and

Metro-East St. Louis areas.

e. Consumer and Commercial Solvents. The March 23, 1995 Federal

Register contained EPA's list of affected product categories and

schedule for regulation of consumer and commercial solvent contents as

required by section 183(e) of the Act. The EPA intends to regulate the

solvent contents in 24 product categories. The Federal Register action

states that the EPA expects the regulation to achieve a 25 percent

reduction in VOC emissions from the regulated product categories. This

regulation was scheduled to be promulgated in 1996. Under EPA policy

memorandum ``Regulatory Schedule for Consumer and Commercial Products

under Section 183(e) of the Clean Air Act,'' June 22, 1995, EPA will

grant an emission reduction credit for this source category even though

emission reductions are not expected to occur until after 1996.

The IEPA cites an EPA study which states that the best estimate of

VOC emissions for consumer and commercial products is 8.03 pounds per

person per year. The study further states that the Federal regulation

of consumer and commercial product solvents is expected to reduce these

emissions by 1 pound per person per year. Using the 1996 projected

populations and the ratio of 6.3 pounds VOC per person per year used

for this source category in the 1990 base year emissions inventory to

the 8.03 pounds per person per year specified in the EPA study, the

IEPA has determined that the Federal rule gives an 8.10 tons VOC per

day reduction in the Chicago ozone nonattainment area and a 0.58 tons

VOC per day reduction in the Metro-East St. Louis ozone nonattainment

area. The emission reduction credits are acceptable.

III. Public Comments and Response

During the 30-day public comment period for the July 14, 1997,

proposed rulemaking, EPA received two comment letters adverse to

approval of the Chicago and Metro-East area 15 percent plans: an August

13, 1997, letter from the American Lung Association of Metropolitan

Chicago, Citizens for a Better Environment (Wisconsin), Citizens

Commission for Clean Air in the Lake Michigan Basin, the Hoosier

Environmental Council, the Illinois Chapter of the Sierra Club, and the

Michigan Environmental Council (ALA et al); and an August 6, 1997

letter from a concerned citizen. The following discussion summarizes

the comments and EPA's response to those comments.

A. Post-1996 Federal Measures

Comments: ALA et al indicate that Illinois should not be allowed to

take credit for certain federal control measures which were not

implemented by November 15, 1996, including Federal Non-Road Small

Engine Standards, TSDF RACT Phase II, AIM coating, and Consumer and

Commercial Products Solvent Control. According to the commenters,

section 182(b)(1) of the Act clearly requires States to submit plans

that demonstrate a 15 percent emission reduction before November 15,

1996. The commenters also state the policy memoranda regarding credit

for post-1996 measures cited in the July 14, 1997, proposed rulemaking

provide no good basis for thwarting the clear intent and requirements

of the Clean Air Act, and were issued without formal public comment.

Response: Section 182(b)(1)(A) of the Act requires States to submit

their 15% SIP revisions by November 15, 1993. Section 182(b)(1)(C) of

the Act provides the following general rule for creditability of

emissions reductions toward the 15 percent requirement: ``Emissions

reductions are creditable toward the 15 percent required, to the extent

they have actually occurred, as of [November 15, 1996], from the

implementation of measures required under the applicable implementation

plan, rules promulgated by the Administrator, or a permit under Title

V.'' In addition, section 182(b)(1)(D) identifies specific control

measures which cannot be creditable toward the 15 percent plan,

including pre-1990 FMVCP, 1990 RVP, RACT fix-ups, and I/M fix-ups.

Between 1992 and 1996, EPA issued a series of policy memoranda

indicating its intention to implement several federal measures before

November 15, 1996, and provided emission reductions estimates from

these measures for States to use in their 15 percent plans. However,

several federal measures have been significantly delayed. By the time

it was realized that some federal measures would not be implemented by

November 1996, several States had already completed and submitted their

[[Page 66291]]

15 percent plans relying on the federal measures.

Section 182(b)(1)(C) is ambiguous as to whether emission reductions

from federal measures expected to occur by November 1996 are creditable

now that the deadline has passed. Read literally, section 182(b)(1)(C)

provides that although the 15 percent SIPs are required to be submitted

by November 1993, emissions reductions are creditable as part of those

SIPs only if ``they have actually occurred, as of [November 1996]''.

This literal reading renders the provision internally inconsistent.

Accordingly, EPA believes that the provision should be interpreted to

provide, in effect, that emissions reductions are creditable ``to the

extent they will have actually occurred, as of [November 1996], from

the implementation of [the specified measures]'' (the term ``will'' is

added). This interpretation renders the provision internally

consistent.

Moreover, section 182(b)(1)(C) of the Act explicitly includes as

creditable reductions those resulting from ``rules promulgated by the

Administrator.'' This provision does not state the date by which those

measures must be promulgated, i.e., does not indicate whether the

measures must be promulgated by the time the 15% SIPs were due

(November 1993), or whether the measures may be promulgated after this

due date.

Because the statute is silent on this point, EPA has discretion to

develop a reasonable interpretation, under Chevron U.S.A. Inc. v. NRDC,

467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). EPA believes it is

reasonable to interpret section 182(b)(1)(C) of the Act to credit

reductions from federal measures as long as those reductions were

expected to occur by November, 1996, even if the federal measures are

not promulgated by the November 1993 due date for the 15 percent SIPs.

EPA's interpretation is consistent with the Congressionally

mandated schedule for promulgating regulations for consumer and

commercial products, under section 182(e) of the Act. This provision

requires EPA to promulgate regulations controlling emissions from

consumer and commercial products that generate emissions in

nonattainment areas. Under the schedule, by November 1993--the same

date that the States were required to submit the 15% SIPs--EPA was to

issue a report and establish a rulemaking schedule for consumer and

commercial products. Further, EPA was to promulgate regulations for the

first set of consumer and commercial products by November 1995. It is

reasonable to conclude that Congress anticipated that reductions from

these measures would be creditable as part of the 15% SIPs.

Since all the federal measures Illinois relied on were expected to

occur by November 1996, these measures are creditable for purposes of

the 15 percent plan. It is not intended under section 182(b)(1)(C) of

the Act for EPA to disapprove 15 percent plans which claim credit for

federal measures which were not implemented as was expected during plan

development. To interpret the Act otherwise would unfairly punish the

State for delays in federal rule implementation for which the State had

no power to control.

In addition, all the post-1996 federal measures for which Illinois

has claimed credit are close to being implemented since the measures

either have been promulgated or have been proposed. The following table

indicates the post-1996 federal measures included in Illinois' 15

percent plans, the statutory provisions which require the measures'

promulgation, and the status of the measures' implementation:

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

Federal measure Statutory requirement Status

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

Non-road Engines 25 hp and below Act Section 213(a)(2).................. Phase I standards published July 3,

(Phase I). 1995 (60 FR 34582).

Final Compliance date MY 1997,

except Class V engine families,

which must comply January 1, 1998.

TSDF RACT and RCRA Phase II RCRA Section 3004(n)................... Final rule published December 6,

Control. 1994 (59 FR 62896).

Final Compliance Date December 8,

1997 (61 FR 59932).

AIM Coatings...................... Act Section 183(e)(3).................. Proposed rule published June 25,

1996 (61 FR 32729).

Traffic and Maintenance Coatings.. Act Section 183(e)(3).................. Proposed rule published June 25,

1996 (61 FR 32729).

Consumer and Commercial Products.. Act Section 183(e)(3).................. Proposed rule published April 2,

1996 (61 FR 14531).

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

To exclude credit for these mandated federal measures would mean

the State would have to develop and submit a new 15 percent plan and

adopt substitute State measures. This would force the State to achieve

more than a 15 percent emission reduction once the reductions from the

mandated federal measures occur. EPA believes this over compliance with

the 15 percent requirement would not be supported by the intent of the

Act and would be unreasonably burdensome for the State, especially

since the State is already obligated to secure substantial additional

VOC reductions in the Chicago area to meet post-1996 ROP requirements.

The fact that EPA cannot determine precisely the amount of credit

available for federal measures not yet promulgated does not preclude

granting the credit. The credit can be granted as long as EPA is able

to develop reasonable estimates of the amount of VOC reductions from

the measures EPA expects to promulgate. EPA believes that it is able to

develop reasonable estimates, particularly because EPA has either

already proposed or promulgated the measures at issue. Many other parts

of the SIP, including State measures, typically include estimates and

assumptions concerning VOC amounts, rather than actual measurements.

For example, EPA's document to estimate emissions, ``Compilation of Air

Pollutant Emission Factors,'' January 1995, AP-42), provide emission

factors used to estimate emissions from various sources and source

processes. AP-42 emission factors have been used, and continue to be

used, by States and EPA to determine base year emission inventory

figures for sources and to estimate emissions from sources where such

information is needed. Estimates in the expected amount of VOC

reductions are commonly made in air quality plans, even for those

control measures that are already promulgated. Moreover, the fact that

EPA is occasionally delayed in its rulemaking is not an argument

against granting credits from these measures. The measures are

statutorily required, and States and citizens could bring suit to

enforce the requirements that EPA promulgate them. If the amount of

credit that EPA allows the State to claim turns out to be greater than

the amount EPA determines to be appropriate when EPA promulgates the

federal measures, EPA intends to take appropriate action to require

correction of any shortfall in necessary emissions reductions that may

occur.

The above analysis focuses on the statutory provisions that include

[[Page 66292]]

specific dates for 15 percent submittal (November 1993) and

implementation (November 1996). These dates have expired, and EPA has

developed new dates for submittal and implementation. EPA does not

believe that the expiration of the statutory dates, and the development

of new ones, has implications for the issue of whether reductions form

federal measures promulgated after the date of the 15 percent SIP

approval may be counted toward those 15 percent SIPs. Although the

statutory dates have passed, EPA believes that the analysis described

above continues to be valid.

B. Rule Effectiveness Improvements

Comments: ALA et al indicate that the rule effectiveness

improvement credit is an ``extraordinarily large paper reduction,'' and

that neither Illinois nor EPA have adequately demonstrated that 95

percent rule effectiveness has been or will be achieved in light of

changes to Title V monitoring requirements under the upcoming CAM rule.

The commenters also note that the emission reduction credit given for

rule effectiveness improvements in the Chicago area is comparable to

the emission reduction credit given for reformulated gasoline in the

Milwaukee ozone nonattainment area. The commenters find their concerns

substantiated by a recent University of Southern California study which

found that industrial sources in Houston have been emitting VOC

hundreds of times more than what has been reported. Also, the

commenters claim that neither Illinois nor EPA could provide the

commenters a complete list of Illinois sources subject to non-CTG RACT

requirements, or compliance information related to these sources, even

after the commenters submitted a Freedom of Information Act (FOIA)

request to the IEPA. The commenters recommend that credit should be

allowed for only 85 percent rule effectiveness for most sources until

the actual changes are verified through the 1996 update to Illinois'

emission inventories.

Response: The CAAPP program realizes VOC emission reductions

through improving the implementation of existing VOC add-on control

requirements in the Chicago and Metro-East areas. CAAPP requires more

stringent record keeping, reporting, compliance certification, and

monitoring requirements, and provides more severe enforcement penalties

than the existing State rules. These provisions, in turn, assure higher

rates of compliance, and, correspondingly, lower emissions from the

sources.

As was indicated in the July 14, 1997, direct final rule, IEPA's

rule effectiveness evaluation is reported in the April 1995 document,

``Impact of Clean Air Act Permit Program on Inventory Rule

Effectiveness,'' included in the State submittal. One of the elements

of the CAAPP program considered in the Illinois rule effectiveness

evaluation was Title V enhanced monitoring. After IEPA completed the

study, however, EPA decided to promulgate more flexible Title V

monitoring requirements known as CAM.

The original enhanced monitoring program would have required many

affected facilities to install expensive Continuous Emission Monitoring

Systems (CEMS) or develop other monitoring directly correlated with

emission values. After consultation with stakeholders, EPA decided that

such requirements would be overly prescriptive and excessively

burdensome for many industries to install and operate CEMS and on State

and local agencies in implementing their operating permit programs. On

October 22, 1997, the EPA promulgated the final CAM rule (62 FR 54899),

which requires monitoring of operating parameters of add-on control

equipment to assure compliance. The CAM rule is much less burdensome to

administer by State and Local agencies than the original enhanced

monitoring program, allowing agencies to direct resources in assuring

compliance more effectively. Furthermore, the CAM rule covers more

sources than the original enhanced monitoring proposal. The rule also

provides State and local agencies an additional enforcement tool to

address persistent control device operation problems through a Quality

Improvement Plan (QIP). A QIP is a comprehensive two-step evaluation

and correction process that will require the facility owner to prepare

a formal plan and a schedule for correcting control device problems.

Such activities may include significant repairs to or even replacement

of control devices. The QIP provisions are intended to provide

compliance assurance benefits equivalent to the direct monitoring

provisions contained in the original enhanced monitoring. Finally,

sources already subject to more stringent monitoring requirements are

not provided any additional flexibility under CAM, and CAM does not

affect the stringency of any other record keeping, reporting and

compliance certification requirements required under CAAPP. For these

reasons, the EPA finds that the CAM rule does not negatively impact

Illinois' estimate of rule effectiveness improvement from CAAPP.

EPA is not required under the Act to withhold 15 percent plan

credit from control measures until the actual reduction is verified.

Rather, EPA interprets section 182(b)(1) of the Act to allow States to

rely on reasonable estimates of emission reductions when developing the

15 percent plans. The State's report ``Impact of the CAAPP on Inventory

Rule Effectiveness,'' represents a reasonable estimate of rule

effectiveness improvement due to CAAPP. It should also be noted that

Illinois' rule effectiveness improvement estimate is consistent with

EPA's Regulatory Impact Analysis (RIA) for the new ozone NAAQS, which

found 95 percent rule effectiveness to be the most representative value

for proposed Act control assumptions (See appendix A of the RIA for the

July 18, 1997 ozone NAAQS). To the extent that future verification of

the rule effectiveness improvements from CAAPP demonstrates less

emission reductions than anticipated, Illinois will be expected to make

up the shortfall.

The Milwaukee area 15 percent plan is not an appropriate basis from

which to judge the reasonableness of the Chicago 15 percent plan's rule

effectiveness improvement credit. This is because the two plans are

based on vastly different emission baselines (see EPA's March 22, 1996,

approval of the Milwaukee 15 percent ROP plan (61 FR 11735)). There is

significantly more industrial activity and vehicle miles traveled in

the Chicago area compared to the Milwaukee area, and, correspondingly,

control measures implemented in the Chicago area achieve a higher

aggregate emission reduction than similar control measures in

Milwaukee. The 1990 base-year emission inventory for the Milwaukee area

is 559.9 TPD of VOC, while the 1990 inventory for the Chicago area is

1,363.4 TPD. The commenters note that the emission reduction estimate

for improved rule effectiveness in Chicago (26.3 TPD), is comparable

with the emission estimate of reformulated gasoline in Milwaukee (34.06

TPD accounting for both reformulated gasoline and enhanced I/M).

However, the reformulated gasoline program in Chicago alone secures a

112.79 TPD emission reduction. Given this disparity, the EPA finds the

emission reduction estimates in the Milwaukee and Chicago 15 percent

plans are incomparable for purposes of the determining the adequacy of

either plan.

Finally, in regard to the commenters' concern regarding non-CTG

sources,

[[Page 66293]]

EPA contacted IEPA to determine the status of the FOIA request for a

complete list of non-CTG sources in the Chicago area. IEPA has

indicated that it responded by sending two lists to Citizens for a

Better Environment, a January 25, 1996, list of non-CTG sources with

Maximum Theoretical Emissions (MTE) of 100 TPY of VOC and above, and a

May 16, 1996, list of sources which emit greater than or equal to 100

TPY of VOC. IEPA also provided to the American Lung Association of

Metropolitan Chicago a list of non-CTG sources with a Potential To Emit

(PTE) of greater than or equal to 25 TPY of VOM, and Maximum

Theoretical Emissions (MTE) of less than 100 TPY of VOC. These lists

should have been sufficient to meet the commenters' requests. If the

commenters' would like additional information about these lists, the

commenters should contact the IEPA.

C. Plant Closures

Comments: ALA et al indicated that it is unclear how the emission

reduction credits associated with plant shutdowns were calculated, and

that Illinois should receive only credit equal to the extra emissions

that were built into the 1996 projections specifically for the

individual facilities that have shut down. The commenters also note

that EPA should make it clear that no market-based credits can be

attributed to these shutdowns once the reductions have been credited

toward a SIP. This prohibition should apply to New Source Review (NSR)

offset credits and any credits or allowances that are transacted as

part of Illinois' proposed VOC cap and trade program.

Response: Each plant shutdown emission estimate represents the

projected 1996 VOC emission estimate used in calculating the State's

overall emission reduction requirement under the 15 percent plan.

Section 182(b)(1) requires the 15 percent emission reduction to account

for source growth, so IEPA had factored into its 15 percent calculation

what emissions would be in 1996 had no 15 percent control strategies

occurred. (See Guidance for Growth Factors, Projections, and Control

Strategies for the 15 Percent Rate-of-Progress Plans for more detailed

discussion on the growth projection requirement). Because IEPA used

projected 1996 emissions from the closed plants when calculating the

emission reduction needed for 15 percent reduction, the IEPA claimed

those 1996 projections as creditable emission reductions in the 15

percent plan. The projected 1996 emissions were calculated using EGAS

growth factors for specific emission units. These same growth factors

were used to determine the plant closure emission reductions.

Therefore, Illinois has received plant closure credit equal to the

emission projections built into the 15 percent requirement calculation.

As for the concern regarding the double-counting of emission

reductions from plant closures in other VOC control programs, the

State's NSR rules prohibit source closure reductions which are credited

toward ROP to be used to meet NSR offset requirements. Illinois adopted

a VOC trading program on November 20, 1997, as part of its post-1996

ROP plan. Under the rules, no shutdown emissions reduction claimed in

the 15 percent plan can be used as credits in the trading program.

D. Stage II Gasoline Vapor Recovery

Comments: A comment from a citizen indicates that emission

reductions associated with the Stage II vapor recovery rule are being

overestimated because of low levels of cooperation with the rule. This

comment was made based on visits to five gasoline dispensing stations

in the Chicago nonattainment area and finding four of the stations have

either ``no controls'' or ``breaks in the existing controls.''

Specifically, out of the five stations the commenter visited, the

commenter contends that one station has all boots, one station has ``no

vapor controls,'' one station has ``no boots,'' and two stations have

``some broken or missing boots.''

Response: The IEPA has indicated that the four stations in question

have been inspected according to an annual inspection schedule and use

Stage II equipment which do not need boots to work effectively. The

``boot'' the commenter refers to is the device used in conjunction with

a particular Stage II control system called the ``vapor balance

system.'' The vapor balance system collects vapors by using the

displacement pressure between the vehicle tank and the station's

underground tank during vehicle refueling. For the vapor balance system

to work effectively, a tight seal must be made at the interface between

the gasoline dispensing nozzle and the vehicle fuel inlet. The boot, or

bellow, is the device fitted onto the nozzle which creates the tight

seal during refueling.

Another type of Stage II system, known as a ``vacuum assist

system'' draws in vapors during refueling by using a vacuum-generating

device. Because of this design, vacuum assist systems can recover

vapors effectively without a tight seal at the nozzle/fillpipe

interface. Therefore, boots are not needed for assist systems, and the

lack of a boot is by itself no indication that the gasoline dispensing

nozzle has no Stage II control.

The four stations considered by the commenter to be out of

compliance are all registered with the IEPA to use vacuum assist

systems, while the one station considered by the commenter to be in

compliance uses a vapor balance system. The commenter apparently

assumes that all Stage II systems utilize balance systems with booted

nozzles and used their existence as evidence of a Stage II vapor

recovery system, or more importantly, that their absence indicates no

vapor recovery system. Both vapor balance and vacuum assist systems are

required under Illinois' Stage II rules to be certified by CARB to have

a 95 percent control efficiency. The IEPA has conducted inspections of

the five stations between December 1996 and January 1997, in accordance

with an annual Stage II inspection program, and has found that all five

stations use Stage II equipment which meet the CARB certification

requirement. Therefore, unless the IEPA discovers compliance violations

at the stations at future inspections, the EPA assumes the stations to

be in compliance with Stage II controls.

In addition, it should be noted that the IEPA has built into its

Stage II emission reduction estimates the assumption that not all

gasoline dispensing stations in the Chicago nonattainment area may be

in compliance at all times; malfunctions in the Stage II equipment can

occur. Therefore, IEPA used EPA guidance to determine the in-use

efficiency of its overall Stage II program. (See ``Technical Guidance--

Stage II Vapor Recovery Systems for Control of Vehicle Refueling

Emissions at Gasoline Dispensing Stations,'' November 1991). Under the

Technical guidance, the State's throughput exemption level of 10,000

gallons per month, combined with an annual inspection frequency yields

a program efficiency of 84 percent. Illinois has applied the in-use

efficiency of 84 percent when calculating the emission reduction

estimate for this source category.

Because the four stations the commenter believed to be out of

compliance use Stage II equipment which were found to be in compliance

at the time of the most recent IEPA inspection, and that equipment

malfunctions are taken into account in IEPA's emission reduction

estimate for the Stage II program, the EPA finds IEPA's estimate of

Stage II emission reductions is reliable.

[[Page 66294]]

IV. EPA Rulemaking Action

The EPA is approving, through final rulemaking action, Illinois' 15

percent ROP and 3 percent contingency plan SIP revisions for the

Chicago and Metro-East St. Louis ozone nonattainment areas, and the

Metro East St. Louis TCM work trip reductions; transit improvements;

and traffic flow improvements.

Nothing in this action should be construed as permitting, 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.

V. Administrative Requirements

A. Executive Order 12866

The Office of Management and Budget has exempted this regulatory

action from Executive Order 12866 review.

B. Regulatory Flexibility

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

must prepare a regulatory flexibility analysis assessing the impact of

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

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

significant impact on a substantial number of small entities. Small

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

and government entities with jurisdiction over populations of less than

50,000.

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

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 the

State action. The Clean Air Act forbids EPA to base its actions

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

246, 256-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

Under section 202 of the Unfunded Mandates Reform Act of 1995,

signed into law on March 22, 1995, EPA must undertake various actions

in association with any proposed or final rule that includes a Federal

mandate that may result in estimated costs to state, local, or tribal

governments in the aggregate; or to the private sector, of $100 million

or more. This Federal action approves pre-existing requirements under

state or local law, and imposes no new requirements. Accordingly, no

additional costs to state, local, or tribal governments, or the private

sector, result from this action.

D. Submission to Congress and the General Accounting Office

Under 5 U.S.C. 801(a)(1)(A), as added 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 5

U.S.C. 804(2).

E. Petitions for Judicial Review

Under section 307(b)(1) of the Act, petitions for judicial review

of this action must be filed in the United States Court of Appeals for

the appropriate circuit by February 17, 1998. Filing a petition for

reconsideration by the Administrator of this final rule does not affect

the finality of this rule for the purposes of judicial review nor does

it extend the time within which a petition for judicial review may be

filed, and shall not postpone the effectiveness of such rule or action.

This action may not be challenged later in proceedings to enforce its

requirements. (See section 307(b)(2)).

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental relations, Ozone.

Dated: December 5, 1997.

Michelle D. Jordan,

Acting Regional Administrator.

For the reasons stated in the preamble, part 52, chapter I, title

40 of the Code of Federal Regulations is amended as follows:

PART 52--[AMENDED]

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

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

Subpart O--Illinois

2. Section 52.726 is amended by adding paragraphs (p), (q), and (r)

to read as follows:

Sec. 52.726 Control Strategy: Ozone.

* * * * *

(p) Approval--On November 15, 1993, Illinois submitted 15 percent

rate-of-progress and 3 percent contingency plans for the Chicago ozone

nonattainment area as a requested revision to the Illinois State

Implementation Plan. These plans satisfy sections 182(b)(1), 172(c)(9),

and 182(c)(9) of the Clean Air Act, as amended in 1990.

(q) Approval--On November 15, 1993, Illinois submitted 15 percent

rate-of-progress and 3 percent contingency plans for the Metro-East St.

Louis ozone nonattainment area as a requested revision to the Illinois

State Implementation Plan. These plans satisfy sections 182(b)(1) and

172(c)(9) of the Clean Air Act, as amended in 1990.

(r) Approval--On November 15, 1993, Illinois submitted the

following transportation control measures as part of the 15 percent

rate-of-progress and 3 percent contingency plans for the Metro-East

ozone nonattainment area: Work trip reductions; transit improvements;

and traffic flow improvements.

[FR Doc. 97-32641 Filed 12-17-97; 8:45 am]

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