Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; 15 Percent Plan and 1990 VOC Emission Inventory for the Philadelphia Area

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[PA 099-4052; FRL-5702-6]

Approval and Promulgation of Air Quality Implementation Plans;

Pennsylvania; 15 Percent Plan and 1990 VOC Emission Inventory for the

Philadelphia Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing conditional interim approval of the State

Implementation Plan (SIP) revision submitted by the Commonwealth of

Pennsylvania, for the Philadelphia ozone nonattainment area, to meet

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

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

is withdrawing its proposed disapproval of the Philadelphia 15% plan

and 1990 emission inventory published in the Federal Register on July

10, 1996. EPA is proposing conditional interim approval because the 15%

plan submitted by Pennsylvania for the Philadelphia area requires

additional documentation to quantify the 15% emission reduction and

relies on the inspection and maintenance (I/M) program that received a

conditional interim approval. Finally, the 1990 VOC emissions inventory

used in the 15% plan as the baseline for reasonable further progress

contains inconsistencies, which must be reconciled by Pennsylvania. EPA

is, therefore, proposing conditional approval of the 1990 VOC emission

inventory.

DATES: Comments on this proposed action must be postmarked by April 10,

1997.

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

Ozone/Carbon Monoxide, and Mobile Sources Section, Mailcode 3AT21, U.S.

Environmental Protection Agency--Region III, 841 Chestnut Building,

Philadelphia, Pennsylvania, 19107. Copies of the documents relevant to

this action are available for public inspection during normal business

hours at the Air, Radiation, and Toxics Division, U.S. Environmental

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

Pennsylvania 19107. Persons interested in examining these documents

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

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

relevant to this action are also available at the Pennsylvania

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

8468, 400 Market Street, Harrisburg, Pennsylvania 17105.

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

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

Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone

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

following address: [email protected]

[[Page 11132]]

Please note that while information may be requested via e-mail, only

written comments can be accepted for inclusion in the docket.

SUPPLEMENTARY INFORMATION:

I. Background

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

in 1990, requires ozone nonattainment areas classified as moderate or

above to develop plans to reduce VOC emissions by 15% from the 1990

baseline inventory for the area. These 15% plans were due to be

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

within 6 years of enactment of the 1990 Clean Air Act Amendments (i.e.

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

creditability of certain control measures toward reasonable further

progress. Specifically, States cannot take credit for reductions

achieved by Federal Motor Vehicle Control Program (FMVCP) measures

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

reductions stemming from regulations promulgated prior to 1990 to lower

the volatility (i.e., Reid Vapor Pressure) of gasoline. Furthermore,

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

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

corrections to reasonably available control technology (RACT) rules,

since these programs were required to be in place prior to 1990.

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

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

required to be implemented immediately if reasonable further progress

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

deadlines set forth in the Act.

In Pennsylvania, two ozone nonattainment areas are subject to the

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

severe nonattainment area and the Pittsburgh moderate nonattainment

area. Pennsylvania submitted separate SIP revisions for Philadelphia

and Pittsburgh. EPA is taking action today only on Pennsylvania's 15%

plan submittal (including the 1990 VOC emissions inventory), which

addresses the Philadelphia ozone nonattainment area. EPA will act

separately on the contingency plan for the Philadelphia 15% plan and

the 1990 NOx emissions inventory, at a later date. The Philadelphia

severe ozone nonattainment area consists of the following counties in

Pennsylvania: Bucks, Chester, Delaware, Montgomery, Philadelphia.

On July 10, 1996, EPA proposed to disapprove the Philadelphia 15%

plan that was submitted on January 18, 1995 (61 FR 36320). EPA proposed

disapproval of the January 18, 1995 submittal because it assumed credit

towards ROP for numerous control strategies which were either not fully

adopted, are not creditable towards ROP under the Act, or had not been

adequately quantified. EPA could not approve the January 1995 15% plan

submittal for Philadelphia as it would have resulted in a ``shortfall''

towards Pennsylvania's RFP demonstration. Also in the July notice, EPA

proposed to disapprove the Philadelphia area 1990 emissions inventory

estimates used in the 15% plan as the baseline because it differed

substantially from Pennsylvania's separate 1990 base year emission

inventory SIP submitted in 1992 to EPA. Without justification for these

differences in the respective submittals pending before EPA, it cannot

approve the revised inventory estimates. The September 12, 1996

submittal by Pennsylvania is intended to address the deficiencies in

the original January 1995 Philadelphia 15% plan submittal. Therefore,

this rulemaking action withdraws EPA's July 10, 1996 proposed

disapproval and instead proposes conditional interim approval of the

Philadelphia 15% plan that was submitted in September 1996.

EPA has reviewed the September 12, 1996 Philadelphia area 15% plan

submittal and has identified several deficiencies, which prohibit full

approval of this SIP, pursuant to section 110 of the Act. A detailed

discussion of these deficiencies is included below, in the ANALYSIS

portion of this rulemaking action, and also in the technical support

document (TSD) prepared by EPA in support of this action. Due to these

deficiencies, the 15% plan cannot be assured of achieving the total

reductions required by the ROP requirements of the Act. EPA is required

to approve this 15% plan as a conditional interim approval because it

relies on emission reductions from the Pennsylvania vehicle inspection

and maintenance (I/M) program. EPA promulgated final conditional

interim approval of Pennsylvania's I/M program under the National

Highway Systems Designation Act of 1995 on January 28, 1997 (62 FR

4004). EPA can only fully approve a 15% plan if the emission control

measures relied on by the plan are also fully approved. Because the

Commonwealth's I/M program has received only conditional interim

approval, EPA is proposing conditional interim approval of the

Philadelphia 15% plan as well.

Further information regarding EPA's analysis of the Commonwealth's

submittal is contained in the TSD for this action. Copies of the TSD

are available upon request from the Regional office listed in the

ADDRESSES section of this notice. A summary of the EPA's findings

follows.

II. Analysis of the SIP Revision

A. Base Year Emission Inventory

The baseline from which states must determine the required

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

inventory. The inventory is broken down into several emissions source

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

mobile sources. Pennsylvania submitted a formal SIP revision containing

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

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

Pennsylvania has stated that its September 12, 1996 15% plan submittal

includes a revised version of the 1990 emission inventory, and is meant

to supersede the 1992 emission inventory submittal. Therefore, this

rulemaking will address the 1990 VOC emission inventory only as it

pertains to the Philadelphia ozone nonattainment area and no further

rulemaking action will be taken on the November 12, 1992 emission

inventory submittal as it pertains to the Pennsylvania portion of the

Philadelphia ozone nonattainment area. The September 1996 submittal of

the 1990 emissions inventory contains inconsistencies with the

inventory summaries of the 15% plan. Additional information and

documentation from Pennsylvania regarding the September 1996 submittal

of the Philadelphia 1990 emission inventory is necessary in order for

EPA to approve it. EPA has been working with Pennsylvania to compile

the necessary documentation to approve the 1990 base year emissions

inventory and anticipates the resolution of these issues prior to the

final rulemaking. Please refer to the TSD for a specific discussion of

the inventory. Therefore, EPA is proposing to conditionally approve the

1990 VOC emission inventory for the Philadelphia ozone nonattainment

area that was submitted on September 12, 1996.

B. Growth in Emissions Between 1990 and 1996

EPA has interpreted the Act to require that reasonable further

progress toward attainment of the ozone standard must

[[Page 11133]]

be obtained after offsetting any growth expected to occur over that

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

measures achieving sufficient emissions reductions to offset projected

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

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

is necessary for demonstrating reasonable further progress. Growth is

calculated by multiplying the 1990 base year inventory by acceptable

forecasting indicators. Growth must be determined separately for each

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

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

individual emission unit emissions may grow at different rates during

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

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

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

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

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

indicator.

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

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

Pennsylvania used growth factors from the Bureau of Economic Analysis

(BEA) for the point and area sources. For a detailed description of the

growth methodologies used by the Commonwealth, please refer to the TSD

for this action. Although EPA has identified where the methods used to

project growth in the 1996 Philadelphia inventory differ from standard

guidance and methodologies, EPA is not conditioning the approval of the

15% plan on the resolution of these issues. The rationale for this is

summarized below and in more detail in the TSD. Consequently, EPA is

proposing to approve the Commonwealth's 1990-1996 emissions growth

projections for the Philadelphia 15% plan.

EPA is accepting the Commonwealth's 15% plan projection for highway

vehicle emissions growth that is based on growth in total vehicle miles

of travel (VMT) for the region, which the Commonwealth expects to

increase by 7.7 million miles per day. In addition, the Commonwealth

expects that on-road emissions are projected to decrease by 11.9 tons/

day. Emissions from on-highway emissions control measures are

calculated separately in the plan (including reductions associated with

fleet turnover and the pre-1990 motor vehicle standards) and

Pennsylvania indicates that this growth is based solely upon increasing

VMT growth. Typically, growth in highway emissions is determined

independently of mobile source control strategies. Fifteen percent

plans usually indicate what, if any, other factors effect highway

emissions growth, other than the previously identified VMT influence.

EPA cannot definitively determine how motor vehicle emissions are

declining from this data but believes, based on the sample calculation

submitted by Pennsylvania, that Pennsylvania's mobile model inputs are

correct. Therefore, EPA is proposing to approve the Commonwealth's on-

road motor vehicle growth projection.

For the point source categories, Pennsylvania used the Bureau of

Economic Analysis (BEA) growth factors to project point source

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

these growth factors is an acceptable method of estimating point source

growth. However, Pennsylvania operates an emissions bank in the

Commonwealth that allows facilities to bank emission reduction credits

(ERCs) for subsequent use or sale. In addition, Pennsylvania states

specifically in its 15% plan that it is taking VOC emission reduction

credit from certain shutdown sources toward the required 15% emission

reduction. Other sources that bank their ERCs are being allowed to sell

their VOC emission reductions as credits to other sources. These

shutdowns all occurred after January 1, 1990. Since the BEA growth

factors are devised to account for all economic activity, including the

shutdown of facilities (through loss of employment, income, etc.),

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

source categories where the shutdown occurred and allowing the sources

in these categories to sell their emission reduction credits could

result in the double counting of emission reductions, which is not

allowed. In the General Preamble for the Implementation of Title I of

the Clean Air Act Amendments (57 FR 13498, April 16, 1992), EPA

addresses the issue of accounting for emission reduction credits by

stating that banked emission reduction credits need to be accounted for

such that their use is consistent with the area's 15% ROP plan and

attainment plan. Where those shutdown credits were being applied to the

required 15% emission reduction, Pennsylvania's September 1996 15% plan

submittal identified those sources that had shut down. EPA is not

conditioning the approval of the Philadelphia 15% plan on the

resolution of this double counting issue. EPA will, however, require

that this issue be satisfactorily resolved prior to approval of any

subsequent air quality plans required for the Philadelphia

nonattainment area such as the post-96 plan and attainment

demonstration.

C. Calculation of Target Level Emissions

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

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

reductions from the FMVCP program and subtracted those emissions from

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

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

ROP requirement equals the sum of 15 percent of the adjusted inventory

and any reductions necessary to offset emissions growth projected to

occur between 1990 and 1996, plus reductions that resulted from

corrections to the I/M or VOC RACT rules that were required to be in-

place before 1990. Table 1 summarizes the calculations for the VOC

target level for the five counties that make up the Pennsylvania

portion of the Philadelphia nonattainment area.

Table 1.--Calculation of Required Reductions \1\ for the Philadelphia

Nonattainment Area's 15% Plan

[Tons/day]

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

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

1990 Base Year Inventory................................... 615.56

Adjustments for FMVCP/RVP (pre 1990 program)............... 33.02

1990 Adjusted Base Year Inventory.......................... 582.53

15% Reduction Requirement.................................. 87.38

RACT ``fix-ups''........................................... 0.84

FMVCP & RVP Reductions..................................... 33.02

1990 Adjusted Base Year Inventory.......................... 582.53

[[Page 11134]]

Required Reductions (w/o growth)........................... 121.24

1996 Target Level.......................................... 494.31

FMVCP & RVP Reductions..................................... -33.02

1990-1996 Emissions Growth................................. 35.41

Required Reductions (w/o growth)........................... 121.24

Total Required Reduction................................... 123.63

Total Reduction Claimed by Pennsylvania.................... 127.91

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\1\ Emission figures presented here are from the September 12, 1996

submittal. These figures may change once Pennsylvania makes the

corrections to the plan to reconcile inventory inconsistencies, etc.

D. Control Strategies in the 15% Plan

The specific measures adopted (either through state or federal

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

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

control measure Pennsylvania has claimed credit for in the submitted

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

strategy towards the Clean Air Act ROP requirement.

E. Creditable Emission Control Strategies

The control measures described below are creditable toward the ROP

requirements of the Act. Pennsylvania takes emission credit toward the

15% requirement through implementation of the following required

programs: (1) Federal reformulated gasoline, (2) reformulated

gasoline--nonroad, (3) I/M FMVCP/Tier I, and (4) Stage II vapor

recovery. Pennsylvania also takes emission credit toward the 15%

requirement through the implementation of the following programs: (1)

Federal architectural and industrial maintenance coating regulation

(national rule), (2) treatment, storage and disposal facility (TSDF)

controls (hazardous waste rule with air emission reductions), (3)

autobody refinishing national rule, (4) consumer and commercial

products national rule, and (5) facility shutdowns. For the mobile

source measures, which Pennsylvania estimates using a Post-Processor

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

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

determines total reductions for mobile source control strategies. The

Commonwealth has provided some sample calculations used in this

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

EPA has no reason to believe that Pennsylvania's methodology is flawed.

Therefore, EPA is proposing to approve the claimed mobile emission

reductions.

Further details regarding EPA's review of the Commonwealth's

control measures are contained in the TSD for this action.

Architectural and Industrial Maintenance (AIM) Coating

This is a national rule that EPA proposed on June 25, 1995 (61 FR

32729), which expected compliance with the coating requirements by

April 1997. Subsequently, EPA was sued over this proposed national rule

and negotiated a compliance date of no earlier than January 1, 1998.

VOC emissions come from the evaporation of solvents used in the coating

process. In a memo dated March 22, 1995 (``Credit for the 15% Rate-of-

Progress Plans for Reductions from the Architectural and Industrial

Maintenance (AIM) Coating Rule''), EPA allowed states to claim a 20%

reduction of total AIM emissions from the national rule. In this memo,

EPA stated that although the emission reductions are not expected to

occur until April 1997, states will be allowed to use the expected

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

believes that even though the compliance date has been pushed to

January 1, 1998, the emission reductions from the national AIM rule are

creditable in state 15% plans.

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

acceptable towards the 15% plan target. Although Pennsylvania states

that they are claiming 15% emission reduction credit from this measure

in their 15% plan, the figures used to calculate the actual expected

emission reduction from this measure results in an emission reduction

of 20%, which is EPA's estimate of expected emission reductions from

the AIM national rule. Therefore, although the Pennsylvania submittal

is inaccurate, the resulting emission reduction credit of 20% from the

AIM coating rule is acceptable. A 20% reduction from their 1996

projected uncontrolled AIM emissions results in a 7.28 tons per day

(TPD) emission reduction credit (1996 uncontrolled emissions x 20%

emission reduction). Since the 1996 uncontrolled emissions are 36.41

TPD, a 20% emission reduction is 7.28 TPD. EPA has determined that 7.28

TPD is creditable from this control measure for the Philadelphia 15%

plan.

Treatment Storage and Disposal Facilities (TSDFs)

TSDFs are private facilities that manage dilute wastewater,

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

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

underground injection or landfilling. EPA promulgated Phase I of the

TSDF national rule on June 21, 1990 (55 FR 25454). The Phase II TSDF

rule was published in the Federal Register on December 6, 1994 (59 FR

62896) and subsequently amended on February 9, 1996 (61 FR 4903) and

November 25, 1996 (61 FR 59932). Final compliance with the Phase II

requirements is required by no later than December 8, 1997.

Pennsylvania claims an expected VOC reduction of 9.45 TPD from this

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

narrative description of the TSDF credit, Pennsylvania claims 10.0 TPD

credit. Additionally, from the summary tables (Tables 3.2 and 4.5) of

the 15% plan, it is not possible to determine the emissions from this

area source category since there is no category specifically labeled as

TSDFs. The closest category is one labeled ``Waste Disposal''. The 1996

projected emissions for this category, however, are listed as 22.50

tons per day. Using the figures provided by Pennsylvania in Appendix 3

of the 15% plan, the expected emission reduction from this measure is

calculated using the 12.57 TPD projected 1996 emissions and

[[Page 11135]]

multiplying this by the control efficiency (94%) and rule effectiveness

(80%), resulting in an emission credit of 9.45 TPD. In a May 1993 EPA

memorandum, EPA agreed that a 93% emission reduction could be expected

from the implementation of the Phase II TSDF rule. Therefore, the

creditable emission reduction for this measure is not 9.45 tons/day but

9.35 tons/day (12.57 tons/day 1996 emissions x 0.93 x 0.80).

Pennsylvania must document how it determined the 1990 emissions from

this category and calculated the emission reduction credit due to the

implementation of this national rule. Provided the emission inventory

and projected figures are correct, EPA has determined that the

creditable emissions from this control measure, given the inventory

information provided by Pennsylvania, is 9.35 TPD. Therefore, only 9.35

TPD of emission reductions from the TSDF rule are creditable toward the

ROP requirements of the Act.

Consumer/Commercial Products National Rule

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

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

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

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

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

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

including personal, household, and automotive products. Although EPA

intended to issue a final rule covering these products by December

1996, the final rule is now expected to be published in Spring 1997 and

require compliance by July 1997. The Commonwealth claims a 20%

reduction from the consumer products portion of their 1996 uncontrolled

inventory, or a 6.58 tons/day reduction (32.89 tons per day, 1996

projected emissions x 20% emission reduction). EPA has determined

that 6.58 TPD is creditable toward the 15% plan requirement.

Autobody Refinishing

Autobody shop emissions come from the painting of damaged vehicles

or the reconditioning of old vehicles typically done in an industrial

or small business shop. The coatings used emit VOCs in significant

amounts and EPA has developed a national rule to address the VOC

content in those coatings. In a November 29, 1994 memorandum, ``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'', EPA set forth policy on the creditable

reductions to be assumed from the national rule for autobody

refinishing. That memorandum allowed for a 37% reduction from current

emissions with an assumption of 100% rule effectiveness (presuming the

coating application instructions were being followed). Pennsylvania is

claiming a 37% emission reduction, resulting in an overall expected

emission reduction of 6.3 tons per day (17.02 tons per day, 1996

projected emissions x 37% emission reduction). EPA has determined

that 6.3 TPD is creditable toward the 15% plan requirement.

Shutdown Credits

Pennsylvania is claiming 3.4 tons per day from large stationary

sources that have shut down emission units since 1990. Shutdown

emission reduction credits are creditable toward a state's 15% plan

requirements provided they are surplus, quantifiable, enforceable and

permanent. Pennsylvania's regulations (25 Pa. Code Chapter 127.207)

require that ERCs generated in the Commonwealth also meet these

criteria. Pennsylvania has submitted documentation with the

Philadelphia 15% plan showing the 1990 emissions of each of the 23

facilities that are providing either part or all of its shutdown

emissions toward the 15% emission reduction requirement. EPA generally

agrees with the creditability of the shutdown emissions except for

those calculated for Philadelphia Textile Finishers, S.K.F., 3M, and

Progress Lighting Co. For Philadelphia Textile Finishers, S.K.F., and

Progress Lighting Co., the claimed shutdown credits appear to exceed

those emissions reported for these sources in the 1990 base year

emissions inventory. EPA cannot allow emission reductions from sources

to be credited toward the 15% plan where those emission reduction

credits exceed the amount of those sources' 1990 emissions. While the

most recent 2 year representative period is used to generate the

emissions baseline, for credibility toward the 15% emission reduction,

the emissions may not exceed those emitted in 1990; otherwise the

emissions cannot be determined to be surplus. The documentation

provided for Philadelphia County (prepared by the City of Philadelphia

Air Management Services) was in a different format from the other 4

counties in the Philadelphia nonattainment area supplied by DEP and,

unlike those DEP documents, does not provide emissions attributed to

each of the emission units within a facility. For those facilities

within Philadelphia County where only part of the facility's shutdown

emissions are being claimed as credit toward the 15% requirement, EPA

cannot verify the emissions since the inventory is not provided on an

emission unit basis. Pennsylvania must clearly document where the

emission reductions from the partial shutdowns are occuring through a

more detailed submittal of the 1990 inventory for Philadelphia County.

It appears from the information provided that out of the 23 facilities

providing shutdown credits, only 5 are total facility shutdowns. These

five are all located in Philadelphia County and are: Quality Container

Corp., U.S. Mint, Schneider Brothers Co., Monarch Manufacturing Works

Inc., and Craftbilt Co. For 3M, the banked emissions listed in the

Philadelphia 15% plan contradicts information submitted to EPA via the

reasonably available control technology (RACT) requirements under

section 182(b) of the Act. In the 3M RACT proposal, the Company has

requested that 641.7 tons of VOC per year be banked. Even if 260

working days were used to determine the ton per day emissions for this

facility, there are still only banked emissions available at 2.47 tons

per day rather than the 4.24 tons per day listed in the 15% plan for

this facility. Compared with the facility specific data provided within

the Philadelphia 15% plan, the 3M VOC emissions appear to be slightly

over estimated in the summary list in Table 6.3 of the 15% plan (4.06

TPD versus 4.24 TPD). At PA DEP's request, EPA has already federally

approved 1990 VOC (and NOx) emissions for selected emission units at

the United States Steel--Fairless (USX) facility (April 9, 1996, 61 FR

15709). Therefore, PA DEP must ensure that the emission reduction

credits claimed for USX in the Philadelphia 15% plan are consistent

with the federally approved SIP pertaining to USX. This requires that

emissions information on an emission unit basis must be provided for

the USX--Fairless facility clearly indicating which units are providing

the emission credit in the 15% plan. Pennsylvania must reconcile all

inconsistencies between and within the 1990 emission inventory and the

15% plan in order for EPA to approve the 1990 emission inventory.

Pennsylvania must ensure that any shutdown emissions applied toward the

required 15% emission reduction may not subsequently be used by the

Company or the Commonwealth for other purposes. Today's rulemaking

action does not supersede any 1990

[[Page 11136]]

emission inventory figures previously approved by EPA in source-

specific rulemakings.

Federal Reformulated Gasoline

Section 211(k) of the Act requires that, beginning January 1, 1995,

only reformulated gasoline be sold or dispensed in ozone nonattainment

areas classified as severe or extreme. This gasoline is reformulated to

reduce combustion by-products and to produce fewer evaporative

emissions. As a severe area, Philadelphia benefits from the emission

reductions from this program. Pennsylvania claims a VOC emission

reduction of 26.48 tons per day from this measure. EPA has determined

that this is a creditable emission reduction toward the 15%

requirement.

Reformulated Gasoline--Nonroad

The use of reformulated gasoline will also result in reduced

emissions for both exhaust and evaporative emissions from off-road

engines such as outboard motors for boats and lawn mower engines.

Pennsylvania claims a VOC emission reduction of 0.59 tons per day from

this measure. EPA has determined that this is a creditable emission

reduction toward the 15% requirement.

Stage II Vapor Recovery

EPA approved Pennsylvania's Stage II vapor recovery regulation on

December 13, 1994 (60 FR 63938). This final approval followed a limited

approval/limited disapproval rulemaking action that was published in

the Federal Register on June 13, 1994 (59 FR 30302). The federally

approved Stage II regulation requires the use of vapor recovery nozzles

at gas stations through a phased compliance schedule but the last group

of stations (pumping less than 100,000 gallons of gasoline per month)

were required to comply with this requirement by no later than February

8, 1994 in all moderate and above ozone nonattainment areas.

Pennsylvania claims a 17.02 tons per day VOC emission credit from the

implementation of this regulation in the 5-county Philadelphia area.

EPA has determined that this credit to be reasonable and acceptable.

Tier I Federal Motor Vehicle Control Program

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

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

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

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

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

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

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

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

Pennsylvania claimed a reduction of 1.0 tons/day from this post-1990

Federal Motor Vehicle Control Program. Although Pennsylvania has not

provided EPA with all the documentation necessary to verify this

emission reduction credit, EPA has no reason to believe that

Pennsylvania's methodology is inaccurate. Therefore, EPA is proposing

to accept the emission reduction credit claimed for this measure.

Inspection and Maintenance Program

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

nonattainment areas classified as moderate or above prepare State

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

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

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

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

other, control strategies. However, because most states experienced

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

states are currently actually testing cars using their original

enhanced I/M protocols.

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

rule allowing states significant flexibility in designing I/M programs

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

enacted the National Highway Systems Designation Act of 1995 (NHSDA),

which provides states with more flexibility in determining the design

of enhanced I/M programs. The substantial amount of time needed by

states to re-design enhanced I/M programs in accordance with the

guidance contained within the NHSDA, secure state legislative approval

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

program precludes states that revise their I/M programs from obtaining

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

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

to help achieve the 15% VOC emissions reduction required under CAA

Sec. 182(b)(1), and the recent NHSDA and regulatory changes regarding

enhanced I/M programs, EPA believes that it is no longer possible for

many states to achieve the portion of the 15% reductions that are

attributed to I/M by November 15, 1996. Under these circumstances,

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

certain circumstances, EPA will propose to allow states that pursue re-

design of enhanced I/M programs to receive emission reduction credit

from these programs within their 15% plans, even though the emissions

reductions from the I/M program will occur after November 15, 1996. EPA

published the final conditional interim approval of the Pennsylvania I/

M program on January 28, 1997 (62 FR 4004).

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

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

as from the other 15% SIP measures, will achieve the 15% level as soon

after November 15, 1996 as practicable. To make this ``as soon as

practicable'' determination, EPA must determine that the SIP contains

all VOC control strategies that are practicable for the nonattainment

area in question and that meaningfully accelerate the date by which the

15% level is achieved. EPA does not believe that measures meaningfully

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

reductions.

In the case of Philadelphia, the Pennsylvania program has submitted

a 15% SIP that would achieve the amount of reductions needed from I/M

by November 1998. The Pennsylvania I/M program is an annual program

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

Pennsylvania has submitted a 15% SIP for Philadelphia that includes

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

reductions in the Philadelphia nonattainment area resulting from the

implementation of the RFG, Stage II, and from implementation of FMVCP--

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

measures, including enhanced I/M, that achieves the required reductions

as soon as practicable for this nonattainment area.

EPA has examined other potentially available SIP measures to

determine if they are practicable for the Philadelphia severe ozone

nonattainment area and if they would meaningfully accelerate the date

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

determine that the SIP contains the appropriate measures. For the

Philadelphia area, as a severe ozone nonattainment area that is

required to implement a large number of control measures, there is no

combination of additional control measures that can be implemented

prior to the end of 1997

[[Page 11137]]

that would achieve the emission reductions equivalent to I/M. The

Commonwealth has recently concluded the Southeast Pennsylvania

Stakeholders Group process that will result in recommendations to the

Governor of Pennsylvania as to the control measures that should be

implemented in the Philadelphia nonattainment area in order to reach

attainment of the ozone national ambient air quality standard. The

stakeholders final report and recommendation to the Governor was

released on January 16, 1997. For the Philadelphia 15% plan, the

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

Philadelphia nonattainment area, which is expected to produce a 49.74

ton per day emission reduction beginning in late 1997. The details of

this analysis are contained in the accompanying TSD.

Summary of Creditable Emission Reductions for the Philadelphia Ozone

Nonattainment Area

[Tons/day]

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

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

Required Reduction for the Philadelphia area................... 123.64

Creditable Reductions:

Shutdown credits 1......................................... 3.40

AIM Coatings Rules......................................... 7.28

Consumer/Commercial Products............................... 6.58

TSDF Controls.............................................. 9.35

Autobody refinishing....................................... 6.30

Stage II vapor recovery.................................... 17.02

Federal Reformulated gasoline.............................. 26.48

Reformulated gasoline--nonroad............................. 0.59

FMVCP (Tier I)............................................. 1.08

Inspection and Maintenance (I/M)........................... 49.74

--------

Total.................................................... 127.82

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

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

substantiated by Pennsylvania.

III. Proposed Action

The EPA has evaluated this submittal for consistency with the Clean

Air Act, applicable EPA regulations, and EPA policy. On its face, this

RFP plan for Philadelphia achieves the required 15% VOC emission

reduction to meet the requirements of section 182(b)(1) of the Act.

While all the emissions inventory figures have not been substantiated

and the amount of creditable reductions for certain control measures

has not been adequately documented to qualify for Clean Air Act

approval, EPA has determined that the submittal for Philadelphia

contains enough of the required structure to warrant proposing

conditional interim approval.

In light of the above deficiencies, EPA is proposing to

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

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

The submittal does not fully satisfy the requirements of section

182(b)(1) of the Act regarding the 15% reasonable further progress plan

or section 182(a)(1) of the Act regarding emission inventories. Since

the September 1996 Philadelphia 15% plan submittal supersedes the

previous 15% plan submittal, EPA is withdrawing its July 10, 1996

proposed disapproval of the Philadelphia 15% plan and is, instead,

proposing conditional interim approval of the plan that was submitted

on September 12, 1996.

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

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

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

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

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

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

conditional interim approval:

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

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

wherever emissions are cited;

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

above, provide sample calculations for point source 1990, 1990

adjusted, and 1996 projected emissions showing how each of these

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

that required for approval of a 1990 emissions inventory as described

in the emission inventory documents at the beginning of the technical

support document.);

(3) Provide additional documentation for the emissions for those

sources categories where credit is claimed (shutdowns, TSDFs);

(4) Provide a written commitment to remodel and submit the enhanced

I/M program as implemented in the Philadelphia nonattainment area in

accordance with EPA guidance (December 23, 1996 memo entitled

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

and

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

rulemaking notice (proposed October 3, 1996, 61 FR 51638; final January

28, 1997, 62 FR 4004).

After making all the necessary corrections to establish accuracy

and consistency in the emission inventory, baseline and projected

figures, and the creditability of chosen control measures, Pennsylvania

must demonstrate that 15% emission reduction is obtained in the

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

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

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

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

approval (although documentation for the amount of shutdown credit is).

Satisfactory resolution of these issues will be required for any

approval of subsequent air quality plans. If the Commonwealth does not

make the required written commitment to EPA within 30 days, EPA is

today proposing in the alternative that this SIP revision be

disapproved.

EPA and Pennsylvania have worked closely since the September 1996

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

the Philadelphia 15% plan. Pennsylvania is aware of the deficiencies

cited above and is currently working to amend the Philadelphia 15% plan

to address the above-named deficiencies. While these deficiencies

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

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

the Philadelphia 15% plan. EPA will consider all information submitted

as a supplement or amendment to the September 1996 submittal prior to

any final rulemaking action. In addition, since Congress passed the

National Highway Systems Designation Act of 1995, which amended federal

I/M program requirements and granted states authority to revise their

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

its I/M program, revision of the 15% plan to reflect the I/M program

changes is expected. When the Commonwealth submits an amended 15% plan,

EPA will review the whole Philadelphia 15% plan and the Philadelphia

1990 base year emissions inventory, including its amendments, for

compliance with the requirements of the Act. At that time, EPA will re-

propose rulemaking action based on the merits of the original submittal

and its amendments.

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

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP state

implementation plan shall be considered separately in light of specific

technical, economic, and environmental factors and in relation to

relevant statutory and regulatory requirements.

This proposed conditional interim approval action for the

Pennsylvania

[[Page 11138]]

15% plan and the 1990 VOC emission inventory for Philadelphia has been

classified as a Table 3 action for signature by the Regional

Administrator under the procedures published in the Federal Register on

January 19, 1989 (54 FR 2214-2225), as revised by a July 10, 1995

memorandum from Mary Nichols, Assistant Administrator for Air and

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

regulatory action from E.O. 12866 review.

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

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

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

significant impact on a substantial number of small entities. Small

entities include small businesses, small not-for-profit enterprises,

and government entities with jurisdiction over populations of less than

50,000.

Conditional approvals of SIP submittals under section 110 and

subchapter I, part D of the CAA do not create any new requirements but

simply approve requirements that the State is already imposing.

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

requirements, EPA certifies that it does not have a significant impact

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

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

analysis would constitute Federal inquiry into the economic

reasonableness of state action. The Clean Air Act forbids EPA to base

its actions concerning SIPs on such grounds. Union Electric Co. v. U.S.

EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

If the conditional approval is converted to a disapproval under

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

will not affect any existing state requirements applicable to small

entities. Federal disapproval of the state submittal does not affect

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

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

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

substantial number of small entities because it does not remove

existing requirements nor does it substitute a new federal requirement.

Under section 202 of the Unfunded Mandates Reform Act of 1995

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

must prepare a budgetary impact statement to accompany any proposed or

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

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

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

select the most cost-effective and least burdensome alternative that

achieves the objectives of the rule and is consistent with statutory

requirements. Section 203 requires EPA to establish a plan for

informing and advising any small governments that may be significantly

or uniquely impacted by the rule.

EPA has determined that the approval action proposed does not

include a Federal mandate that may result in estimated costs of $100

million or more to either State, local, or tribal governments in the

aggregate, or to the private sector. This Federal action approves pre-

existing requirements under State or local law, and imposes no new

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

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

action.

The Regional Administrator's decision to approve or disapprove the

SIP revision pertaining to the Philadelphia 15% plan and 1990 VOC

emission inventory will be based on whether it meets the requirements

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

amended, and EPA regulations in 40 CFR part 51.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Intergovernmental regulations, Reporting and recordkeeping, Ozone,

Volatile organic compounds.

Dated: February 28, 1997.

Stanley Laskowski,

Acting Regional Administrator.

[FR Doc. 97-6019 Filed 3-10-97; 8:45 am]

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