Approval and Promulgation of Air Quality Implementation Plans; Designation of Areas for Air Quality Planning Purposes; Virginia; Redesignation to Attainment of the Hampton Roads Ozone Nonattainment Area, Approval of the Maintenance Plan and Mobile Emissions Budget

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[VA068-5018a, VA066-5018a; FRL-5688-8]

Approval and Promulgation of Air Quality Implementation Plans;

Designation of Areas for Air Quality Planning Purposes; Virginia;

Redesignation to Attainment of the Hampton Roads Ozone Nonattainment

Area, Approval of the Maintenance Plan and Mobile Emissions Budget

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is approving a redesignation request and two State

Implementation Plan (SIP) revisions submitted by the Commonwealth of

Virginia. On August 27, 1996, the Commonwealth of Virginia submitted a

request to redesignate the Hampton Roads marginal ozone nonattainment

area to attainment and a maintenance plan as a SIP revision. This

request is based upon three years of complete, quality-assured ambient

air monitoring data for the area which demonstrate that the National

Ambient Air Quality Standard (NAAQS) for ozone has been attained. On

August 29, 1996 Virginia submitted a second SIP revision establishing

the mobile emissions budget (also known as a motor vehicle emissions

budget) for the Hampton Roads ozone nonattainment area. The SIP

revisions establish a maintenance plan for Hampton Roads including

contingency measures which provide for continued attainment of the

ozone NAAQS until the year 2008; and adjust the motor vehicle emissions

budget established in the maintenance plan for Hampton Roads to support

the area's transportation plans in the horizon years 2015 and beyond.

Under the Clean Air Act (the Act), nonattainment areas may be

redesignated to attainment if sufficient data are available to warrant

the redesignation and the area meets the Act's other redesignation

requirements. The intended effect of this action is to approve the

redesignation request, the

[[Page 11338]]

maintenance plan and the motor vehicle emissions budget for Hampton

Roads. This action is being taken under sections 107 and 110 of the

Act.

DATES: This action will become effective April 28, 1997 unless notice

is received on or before April 11, 1997 that adverse or critical

comments will be submitted. If the effective date is delayed, timely

notice will be published in the Federal Register.

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 Virginia Department

of Environmental Quality, 629 East Main Street, Richmond, Virginia

23219.

FOR FURTHER INFORMATION CONTACT: Kristeen Gaffney, Ozone/Carbon

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

Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone

at: (215) 566-2092. Questions may also be addressed via e-mail, at the

following address: Gaffney.K[email protected] [Please note that

only written comments can be accepted for inclusion in the docket.]

SUPPLEMENTARY INFORMATION:

I. Background

Under section 107(d)(1) of the Act as amended in 1990, in

conjunction with the Governor of Virginia, EPA was required to

designate Hampton Roads as nonattainment because the area violated the

ozone standard during the years 1987-1989. The Hampton Roads marginal

ozone nonattainment area consists of the following localities: James

City County, Poquoson City, York County, Portsmouth City, Chesapeake

City, Suffolk City, Hampton City, Virginia Beach City, Newport News

City, Williamsburg City and Norfolk City.

Section 107(d)(3)(E) of the Act outlines the requirements to be met

for an area to be redesignated from nonattainment to attainment. These

requirements are: (1) The area must have attained the applicable NAAQS;

(2) the area must meet all applicable requirements under section 110

and part D of the Act; (3) the area must have a fully approved SIP

under section 110(k) of the Act; (4) the air quality improvement must

be due to permanent and enforceable measures; and, (5) the area must

have a fully approved maintenance plan pursuant to section 175A of the

Act.

Attainment of the ozone NAAQS is determined by the expected number

of exceedances in a calendar year. The method for determining

attainment of the ozone NAAQS is contained in 40 CFR 50.9 and appendix

H to that section. The simplest method by which expected exceedances

are calculated is by averaging actual exceedances of the 0.12 parts per

million (ppm) ozone NAAQS at each monitoring site over a three year

period. An area is in attainment of the standard if this average

results in expected exceedances for each monitoring site in the area of

1.0 or less per calendar year. When a valid daily maximum hourly

average value is not available for each required monitoring day during

the year, the missing days must be accounted for when estimating

exceedances for the year.

Ambient air quality data recorded in the Hampton Roads area,

between the years 1993-1995 shows attainment of the ozone NAAQS. The

data for these years meets EPA's completeness criteria of 75% or

greater data capture. Furthermore, the area remained free of violations

during the 1996 ozone season.

In the ``Review of Virginia's Submittals'' below, EPA will explain

how the redesignation request and maintenance plan SIP revision meet

the requirements of Section 107 (d)(3)(E) of the Act pertaining to

redesignations to attainment. In Section IV, EPA will review Virginia's

motor vehicle emissions budget SIP revision. A Technical Support

Document (TSD) has also been prepared by EPA on these rulemaking

actions, which explains EPA's review in further detail. Copies of the

TSD are available from the EPA Regional office listed in the ADDRESSES

section of this document in addition to being available for public

inspection at that office.

II. Review of Virginia's Submittals

Following is a brief description of how the Commonwealth of

Virginia's August 27, 1996 submittal fulfills the five requirements of

redesignation requests from section 107(d)(3)(E) of the Act. Because

the maintenance plan is a critical element of the redesignation

request, EPA will discuss its evaluation of the maintenance plan under

its analysis of the redesignation request.

1. Attainment of the Ozone NAAQS

The submittal contains an analysis of ozone air quality data which

is relevant to the maintenance plan and to the redesignation request

for the Hampton Roads ozone nonattainment area. Ambient ozone

monitoring data during 1993 through 1995 show attainment of the ozone

NAAQS in Hampton Roads, Virginia. See 40 CFR Section 50.9 and Appendix

H. The Commonwealth of Virginia's request for redesignation includes

documentation that the entire area has complete quality assured data

showing attainment of the standard over the most recent consecutive

three calendar year period prior to submittal of the request (1993-

1995). This request is based on ambient air ozone monitoring data

collected from three ozone monitoring stations in the area.

Furthermore, it is relevant to note that the Hampton Roads area showed

continued attainment of the ozone NAAQS during the most recent ozone

season 1996. The data clearly show an expected exceedance rate of less

than 1.0 per year since 1993. The technical support document (TSD)

explains the calculation of the air quality monitoring data in more

detail. The Hampton Roads area has met the first statutory criterion

for redesignation to attainment of the ozone NAAQS. Virginia has

committed to continue monitoring the air quality in this area in

accordance with the Act's requirements as prescribed in 40 CFR Part 58,

which is required, among other things, to meet the second statutory

criterion for redesignation to attainment.

2. Meeting Applicable Requirements of Section 110 and Part D

For purposes of redesignation, to meet the requirement that the SIP

contain all applicable requirements under the Act, EPA has reviewed the

SIP to ensure that it contains all measures that were due under the Act

prior to or at the time the Commonwealth submitted its redesignation

request. The Commonwealth of Virginia has been fully implementing the

EPA approved section 110 (a)(2) and Part D requirements of the 1977 Act

applicable to the Hampton Roads area. The Clean Air Act Amendments of

1990, however, modified section 110(a)(2) and, under Part D, revised

section 172 and added new requirements for all nonattainment areas.

Therefore, for purposes of redesignation, EPA has reviewed the SIP

[[Page 11339]]

and determined that it contains all measures that were due under the

Act as revised in 1990, discussed below.

2.A. Section 110 Requirements

Under section 107(d)(3)(E)(v) of the Act, for a redesignation

request to be approved, the Commonwealth must have met all requirements

that applied to the subject area prior to or at the same time as the

submission of a complete redesignation request. Virginia submitted a

complete redesignation request on August 27, 1996.

Requirements of the Act that come due subsequently continue to be

applicable to the area at later dates (see section 175A of the Act)

and, if redesignation of any of the areas is disapproved, the

Commonwealth remains obligated to fulfill those requirements. These

requirements are discussed in the following EPA documents: ``Procedures

for Processing Requests to Redesignate Areas to Attainment,'' John

Calcagni, Director, Air Quality Management Division, September 4, 1992;

``State Implementation Plan (SIP) Actions Submitted in Response to

Clean Air Act (CAA) Deadlines,'' John Calcagni, Director, Air Quality

Management Division, October 28, 1992; and ``State Implementation Plan

(SIP) Requirements for Areas Submitting Requests for Redesignation to

Attainment of the Ozone and Carbon Monoxide (CO) National Ambient Air

Quality Standards (NAAQS) on or after November 15, 1992,'' Michael H.

Shapiro, Acting Assistant Administrator, September 17, 1993.

Although section 110 of the Act was amended in 1990, the Hampton

Roads, Virginia SIP meets the requirements of section 110 (a)(2) of the

amended Act. A number of the requirements did not change in substance

and, therefore, the preamendment SIP met these requirements. As to

those requirements that were amended, many duplicate other requirements

of the Act (see 57 FR 23936 and 23939, June 23, 1992). EPA has analyzed

the SIP and determined that it is consistent with the requirements of

amended section 110(a)(2) of the Act. The SIP revision has been adopted

by the Commonwealth after reasonable notice and public hearing. The SIP

contains enforceable emission limitations adequate to produce

attainment, requires monitoring, compiling, and analyzing ambient air

quality data. It provides for adequate funding, staff, and associated

resources necessary to implement SIP requirements, has provisions for

Prevention of Significant Deterioration (PSD) and New Source Review

(NSR), and requires stationary source emissions monitoring and

reporting. There are no outstanding requirements for volatile organic

compound (VOC) reasonably available control technology requirements

(RACT) in the Hampton Roads area, as discussed further under ``Part D

Requirements'' below.

2.B. Part D Requirements

Under part D, an area's classification determines the requirements

to which it is subject. Subpart 1 of part D sets forth the basic

requirements applicable to all nonattainment areas. Subpart 2 of part D

establishes additional requirements for nonattainment areas classified

under table 1 of section 181(a). As described in the General Preamble

for the Implementation of Title 1, specific requirements of subpart 2

may override the general provisions of subpart 1 (57 FR 13501). The

Hampton Roads area is classified as marginal. Therefore, in order to be

redesignated to attainment, it must meet the requirements of subpart 1

of part D, specifically sections 172(c) and 176, as well as the

applicable requirements of subpart 2 of part D that apply to marginal

areas (subsection 182(a)).

2.B.1. Subpart 1 of part D--Section 172(c) Plan Provisions

Under section 172(b), the section 172(c) requirements are

applicable no later than three years after an area has been designated

as nonattainment under the Act. In the case of Hampton Roads, the

Commonwealth has satisfied all of the section 172(c) requirements

necessary for redesignation.

The Hampton Roads area was designated marginal nonattainment on

November 6, 1991 [56 FR 56694]. In the case of marginal ozone

nonattainment areas, the section 172(c)(1) Reasonably Available Control

Measures requirement was superseded by the section 182(a)(2) RACT

requirements, which did not require nonattainment areas newly

designated marginal after enactment of the 1990 amendments to submit

RACT corrections.1 Thus, no additional RACT submissions were

required for the Hampton roads area to be redesignated. Also, by virtue

of provisions under section 182(a), areas designated as marginal do not

have to submit an attainment demonstration.

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\1\ Refer to the General Preamble for the Implementation of

Title 1, [57 FR 13503], and the VOC RACT Fix-Up rulemaking published

at 58 FR 49458.

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With respect to the section 172(c)(2) Reasonable Further Progress

(RFP) requirement, because Hampton Roads has attained the ozone NAAQS,

no RFP requirements apply.

The section 172(c)(3) emissions inventory requirement has been met

by the submission and approval of the 1990 base year inventory for

Hampton Roads required under subpart 2 of part D, section 182(a)(1).

Virginia submitted its 1990 base year inventory for the Hampton Roads

area, which was approved by EPA on September 16, 1996 [61 FR 48629].

As for the section 172(c)(5) NSR requirement, EPA has determined

that areas being redesignated need not comply with the NSR requirement

prior to redesignation provided that the area demonstrates maintenance

of the standard without part D NSR in effect. See memorandum from Mary

Nichols, Assistant Administrator for Air and Radiation, dated October

14, 1994, entitled ``Part D New Source Review (part D NSR) Requirements

for Areas Requesting Redesignation to Attainment.'' The rationale for

this view is described fully in that memorandum, and is based on EPA's

authority to establish de minimis exceptions to statutory requirements.

See Alabama Power Co. v. Costle, 636 F. 2d 323, 360-61 (D.C. Cir.

1979). Upon redesignation of this area to attainment, the prevention of

significant deterioration provisions (PSD) contained in part C of title

I of the Act are applicable. Virginia received full delegation of

authority of the Federal PSD program on June 3, 1981. [See 40 CFR

52.2451]

2.B.2. Subpart 1 of Part D--Section 176 Conformity Plan Provisions

Section 176 of the Act requires states to revise their SIPs to

establish criteria and procedures to ensure that federal actions,

before they are taken, conform to the air quality planning goals in the

applicable SIP. The requirement to determine conformity applies to

transportation plans, programs and projects developed, funded or

approved under Title 23 U.S.C. or the Federal Transit Act

(``transportation conformity''), as well as to all other federal

actions (``general conformity''). Section 176 further provides that the

conformity revisions to be submitted by states must be consistent with

federal conformity regulations that the Act required EPA to promulgate.

Congress provided for the state revisions to be submitted one year

after the date for promulgation of final EPA conformity regulations.

When that date passed without such promulgation, EPA's General Preamble

for the Implementation of Title I informed states that the conformity

regulations would establish submittal dates [see 57 FR 13498, 13557

(April 16, 1992)].

[[Page 11340]]

The EPA promulgated final transportation conformity regulations on

November 24, 1993 (58 FR 62188) and general conformity regulations on

November 30, 1993 (58 FR 63214). These conformity rules require that

states adopt both transportation and general conformity provisions in

their SIPs for areas designated nonattainment or subject to a

maintenance plan approved under section 175A of the Act. Pursuant to

section 51.396 of the transportation conformity rule and section 51.851

of the general conformity rule, the Commonwealth of Virginia is

required to submit a SIP revision containing transportation conformity

criteria and procedures consistent with those established in the

federal rule. Similarly, Virginia is required to submit a SIP revision

containing general conformity criteria and procedures consistent with

those established in the federal rule.

Although this redesignation request was submitted to EPA after the

due dates for the SIP revisions for transportation conformity (58 FR

62188) and general conformity (58 FR 63214) rules, EPA has interpreted

the conformity requirements as not being applicable requirements for

purposes of evaluating the redesignation request under section 107(d)

of the Act. The rationale for this is based on a combination of two

factors.

First, the requirement to submit SIP revisions to comply with the

conformity provisions of the Act continues to apply to areas even after

redesignation to attainment. Therefore, the Commonwealth remains

obligated to adopt the transportation and general conformity rules even

after redesignation. While redesignation of an area to attainment

enables the area to avoid further compliance with most requirements of

section 110 and part D of the Act, since those requirements are linked

to the nonattainment status of an area, the conformity requirements

apply to both nonattainment and maintenance areas. Second, EPA's

federal conformity rules require the performance of conformity analyses

in the absence of state-adopted rules. Therefore, a delay in adopting

state rules does not relieve an area from the obligation to implement

conformity requirements.

Because areas are subject to the conformity requirements regardless

of whether they are redesignated to attainment and must implement

conformity under federal rules if state rules are not yet adopted,

these requirements are not applicable requirements for purposes of

evaluating a redesignation request.

Therefore, EPA has modified its national policy regarding the

interpretation of the provisions of section 107(d)(3)(E) of the Act

concerning the applicable requirements for purposes of reviewing an

ozone redesignation request. Under this new policy, for the reasons

just discussed, EPA believes that the ozone redesignation request for

Hampton Roads may be approved notwithstanding the lack of approved

Commonwealth transportation and general conformity rules.

2.B.3. Subpart 2 of part D--Section 182 Provisions for Ozone

Nonattainment Areas

The Hampton Roads nonattainment area is classified as marginal and

is subject to the requirements of section 182(a) of the Act. The

Commonwealth was required to meet the emission inventory requirement of

section 182(a)(1) and the emissions statement program requirement of

section 182(a)(3)(b).

Section 182(a)(1) required an emissions inventory as specified by

section 172(c)(3) of actual emissions of carbon monoxide (CO), volatile

organic compounds (VOC) and nitrogen oxides (NOX) from all sources

by November 15, 1992. Virginia submitted its 1990 base year inventory

for the Hampton Roads area which was approved by EPA on September 16,

1996 [61 FR 48629].

Section 182(a)(3)(B) required a SIP revision by November 15, 1992

to require stationary sources of VOC and NOX emissions to report

the actual emissions of these pollutants annually. On November 4, 1992,

Virginia submitted rule revisions implementing the emission statement

requirement. EPA approved Virginia's Emission Statement program as a

SIP revision on May 2, 1995, codified at 40 CFR 52.2420(c)(103).

As discussed above, RACT corrections are not required under section

182(a)(2) for areas such as Hampton Roads that were not designated

nonattainment until after the 1990 CAA Amendments. Additionally,

section 182(a)(2) does not require the submission of an inspection and

maintenance SIP revision for Hampton Roads. Likewise, as discussed

above under the part 172 requirements, the Commonwealth need not comply

with the requirements of section 182(a) concerning revisions to the

part D NSR program in order to be redesignated.

Section 182(3) requires submission of periodic inventories every

three years from 1990 until the area is redesignated attainment. The

maintenance plan for Hampton Roads contains a full emission inventory

for the attainment year 1993, as discussed below in section 5.A.

Because the attainment year is the same as the year the first periodic

inventory came due, the maintenance plan satisfies this requirement.

3. Fully Approved SIP Under Section 110(k) of the Act

EPA has determined that the Commonwealth of Virginia has a fully

approved SIP under section 110(k), which also meets the applicable

requirements of section 110 and Part D as discussed above. Therefore,

the redesignation requirement of section 107(d)(3)(E) (ii) has been

met.

4. Improvement in Air Quality Due to Permanent and Enforceable Measures

The Commonwealth must be able to reasonably attribute air quality

improvements in the area to emission reductions which are permanent and

enforceable. Attainment resulting from temporary reductions in emission

rates or unusually favorable meteorological conditions does not qualify

for redesignation.

Under the 1977 Act, EPA approved the Commonwealth of Virginia SIP

control strategy for the Hampton Roads, Virginia area. EPA determined

the emission reductions were achieved as a result of those enforceable

rules.

Several other enforceable control measures have come into place

since the Hampton Roads, Virginia area violated the ozone NAAQS.

Significant reductions in ozone precursor emissions are attributed to

federal mobile source emission control programs. Specifically,

reductions occurred due to the Federal Motor Vehicle Control Program

(FMVCP) due to the mandatory lowering of fuel volatility and automobile

fleet turnover. Effective in 1993, the Reid Vapor Pressure (RVP) of

gasoline decreased from 9.9 pounds per square inch (psi) to 7.8 psi in

the Hampton Roads area. Beginning in 1995, federal reformulated

gasoline (RFG) was implemented in Hampton Roads as a replacement to low

RVP gasoline. The benefits of RFG will be discussed later in this

document under the maintenance plan control strategies.

Virginia developed a design year emissions inventory representing

the ``worst case'' emissions scenario that contributes to ozone

violations as a starting point for the redesignation request. The

design year chosen by Virginia for Hampton Roads is 1988, a year that

was particularly conducive to ozone violations in eastern U.S.

nonattainment areas. The maintenance plan contains a comprehensive

emissions inventory of ozone precursors, VOCs, NOX and CO, for the

[[Page 11341]]

year 1988 to establish the amount of emission reductions achieved to

reach attainment with the ozone NAAQS in the 1993 attainment year.

The amount of reductions achieved from FMVCP and RVP programs

between 1988 and 1993 was determined using EPA's mobile emission

inventory model MOBILE 5.0a and relevant vehicle miles traveled (VMT)

data. As a result of these permanent and enforceable reductions, VOC

emissions were reduced by 49.115 tons/day (1988-1993); emissions of

NOX increased by 8.481 tons/day in Hampton Roads. The Commonwealth

of Virginia's maintenance plan requires the continuation of the federal

RVP program. The Commonwealth demonstrated that point source VOC

emissions were not artificially low due to local economic downturn

during the period in which Hampton Roads air quality came into

attainment. Reductions due to decreases in production levels or from

other unenforceable scenarios such as voluntary reductions were not

included in the determination of the emission reductions.

EPA finds that the combination of measures contained in the SIP and

federal measures have resulted in permanent and enforceable reductions

in ozone precursors that have allowed Hampton Roads to attain the

NAAQS, and therefore, that the redesignation criterion of section

107(d)(3)(E)(iii) has been met.

5. Fully approved Maintenance Plan Under Section 175A

Section 175A of the Act sets forth the elements of a maintenance

plan for areas seeking redesignation from nonattainment to attainment.

The plan must demonstrate continued attainment of the applicable NAAQS

for at least ten years after the Administrator approves a redesignation

to attainment. Eight years after the redesignation, the Commonwealth

must submit a revised maintenance plan which demonstrates attainment

for the ten years following the initial ten-year period. To provide for

the possibility of future NAAQS violations, the maintenance plan must

contain contingency measures, with a schedule for implementation,

adequate to assure prompt correction of any air quality problems. EPA

is approving the Virginia maintenance plan for the Hampton Roads,

Virginia area because EPA finds that Virginia's submittal meets the

requirements of section 175A of the Act as discussed below.

5.A. Emissions Inventories

The Commonwealth developed an attainment emissions inventory to

identify the level of emissions sufficient to achieve the ozone NAAQS.

The maintenance plan submitted on August 27, 1996 contains

comprehensive inventories for the years 1993, 2000 and 2008 prepared

according to EPA guidance for ozone precursors, VOCs, NOx, and CO

emissions to demonstrate attainment and maintenance for Hampton Roads.

The inventories include area, stationary, non-road mobile and mobile

sources. The 1993 inventory is considered representative of attainment

conditions because the NAAQS was not violated during 1993 and was one

of the three years upon which the attainment demonstration was based.

The plan includes a demonstration that emissions will remain below the

1993 attainment year levels for a 10 year period (2008) and provides an

interim year inventory as required by EPA guidance for the year 2000.

The Commonwealth has demonstrated that emissions for ozone precursors

through the year 2008 will remain below the 1993 attainment year levels

because of permanent and enforceable measures, while allowing for

growth in population and vehicle miles traveled (VMT).

The Commonwealth's submittal contains detailed inventory data and

summaries by county and source category. Growth Projections for point,

non-road and area sources were derived using EPA's Economic Growth

Analysis System (E-GAS) and the Bureau of Economic Analysis Factors.

These factors were applied to the 1993 inventory to reflect the

expected emission levels through 2008. VMT growth was provided by the

Virginia Department of Transportation. These projected year inventories

were prepared in accordance with EPA guidance. EPA's TSD includes a

more detailed analysis of the projected year inventories for the

nonattainment area. The following table summarizes the average peak

ozone season weekday VOC, NOx, and CO emissions for the major

anthropogenic (non-biogenic) source categories for the 1993 attainment

year inventory and projected 2000 and 2008 inventories.

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

Emissions (tons per year) 1993 2000 2008

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

VOCs:

Point sources................ 25.044 27.395 30.040

Area sources 2............... 129.702 128.491 136.641

Mobile sources 3............. 73.244 50.853 51.862

Subtotal..................... 227.990 206.739 218.543

NOx:

Point sources................ 85.209 86.634 81.072

Area sources................. 66.887 72.184 78.088

Mobile sources............... 77.983 70.064 70.061

Subtotal..................... 230.079 228.882 229.221

CO:

Point sources................ 13.324 14.673 14.699

Area sources................. 300.167 320.364 340.541

Mobile sources............... 590.918 370.022 366.121

Subtotal..................... 904.409 705.059 721.361

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

TOTALS..................... 1362.478 1140.680 1169.125

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

2 Area source category includes non-road mobile emissions and emissions

from motor vehicle refueling.

3 Mobile source estimates include emissions safety margins. A safety

margin exists when the total emissions (stationary, mobile, area)

projected for the attainment year (or years of a maintenance plan) are

less than the emissions level necessary to demonstrate attainment or

maintenance. That difference in emissions constitutes a safety margin.

In this case, Virginia allocated such safety margins to the on-road

portion of the mobile emissions budget to satisfy conformity

requirements.

[[Page 11342]]

5.B. Demonstration of Maintenance

As shown in the previous table, decreases in VOC emissions are

projected in the Hampton Roads nonattainment area throughout the

maintenance period. While NOx emissions are projected to increase

slightly, the decrease in VOC emissions is sufficient to offset the

NOx increase.

Virginia attributes the projected reductions of VOC emissions to

the following national control measures: Federal Motor Vehicle Control

Program (Tier 1); Reformulated Gasoline (on-road and non-road), and

pending EPA rules regulating emissions from Consumer/Commercial

Solvents reformulations; Architectural/Industrial Maintenance Coatings

reformulation; and Automobile Refinishing. Additionally, the

Commonwealth implemented source specific seasonal NOx emission

limits (emission caps) on two point sources of NOx in the

nonattainment area. Each control program and the anticipated emissions

benefit is discussed briefly below. EPA believes these measures will

contribute significant emissions reductions that will help keep the

Hampton Roads area in attainment of the ozone NAAQS. Refer to the TSD

for further detail.

1. Federal Motor Vehicle Control Program (Tier 1): EPA is required

under the Clean Air Act to issue new and cleaner motor vehicle emission

standards to be phased in beginning with the model year 1994, as well

as a uniform level of evaporation emission controls. 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). In the Hampton Roads maintenance plan, Virginia projects

an anticipated reduction from Tier 1 of VOCs of 18.187 tons/day in the

year 2000 and 30.835 tons/day by the year 2008; and of NOx of

15.924 tons/day in 2000 and 24.778 tons/day in 2008. These benefits

were calculated using the Mobile 5.0a model. EPA has reviewed

Virginia's calculation of the benefits for this measure and finds the

amount of reduction Virginia claims acceptable.

2. Reformulated Gasoline (on-road and non-road): Section 211(k) of

the Clean Air Act requires that, beginning January 1, 1995, only

reformulated gasoline be sold or dispensed in ozone nonattainment areas

classified as severe or above. Gasoline is reformulated to reduce

combustion by-products and to produce fewer evaporative emissions.

Section 211(k)(6) allows other nonattainment areas to ``opt in'' to the

program. Virginia submitted a request to opt-in to the Reform Gas

program in the Hampton Roads nonattainment area beginning in 1995,

which EPA approved on December 23, 1991. The Commonwealth claims the

following projected reductions in tons/day from this program:

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

2000 2008

(TPD) (TPD)

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

On-road sources................................... 14.8 14.5

Non-road sources.................................. 1.15 1.2

Area sources...................................... 1.8 1.95

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

EPA's Mobile 5.0a model was used to determine the emission benefit.

EPA has reviewed Virginia's calculation of the benefits for this

control program and finds the amount of reduction Virginia claims is

acceptable.

3. Architectural and Industrial Maintenance Coatings (AIM):

Emission reductions have been projected from AIM coatings due to the

expected promulgation by the EPA of a national rule. VOC emissions

emanate from the evaporation of solvents used in the coating process.

In a memo dated March 7, 1996, EPA allowed states to claim a 20%

reduction of total AIM emissions from the national rule. As a result of

legal challenges to the proposed national rule for AIM, EPA has

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

maintenance plan for Hampton Roads, Virginia projects a 20% reduction

in VOC emissions from the 1993 attainment year inventory for this

category which translates into 2.821 tons/day by 2000 and 2.831 tons/

day by 2008. EPA has reviewed Virginia's calculation of the benefits

for this measure and finds the amount of reduction Virginia claims

acceptable.

4. Consumer and Commercial Products: Section 183(e) of the Clean

Air Act required EPA to conduct a study of VOC emissions from consumer

and commercial products and to compile a regulatory priority list. EPA

is then required to regulate those categories that account for 80% of

the consumer product 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. Per a June 22, 1996 EPA policy memo, states may

claim credit for up to a 20% reduction of total consumer product

emissions. At this time, the final rule for consumer products is

expected to be signed by the Administrator in March 1997 and require

compliance by July 1997. In the maintenance plan for Hampton Roads,

Virginia projects a 20% reduction in VOC emissions from the 1993

attainment year inventory in this category which translates into 1.664

tons/day by 2000 and 1.765 tons/day by 2008. EPA has reviewed

Virginia's calculation of the benefits for this measure and finds the

amount of reduction Virginia claims acceptable.

5. Automobile Refinishing: EPA is in the process of adopting a

national rule to control VOC emissions from solvent evaporation through

reformulation of coatings used in auto body refinishing processes.

These coatings are typically used by industry and small businesses, or

by vehicle owners. VOC emissions emanate from the evaporation of

solvents used in the coating process. In a November 24, 1994 memo, EPA

set forth policy on the creditable reductions to be assumed from the

national rule for auto body refinishing. That memo stipulated a 37%

reduction from current emissions. In the maintenance plan for Hampton

Roads, Virginia projects a 37% reduction in VOC emissions from the 1993

attainment year inventory in this category which translates into 1.803

tons/day by 2000 and 1.809 tons/day by 2008. EPA has reviewed

Virginia's calculation of the benefits for this measure and finds the

amount of reduction Virginia claims acceptable.

6. Source Specific NOX Emission Limits: The Commonwealth

established seasonal NOX emission limits for selected major point

sources in the Hampton Roads area. The limits have been established

through SIP approved federally enforceable state operating permits. The

emission limits are only effective during the peak ozone season months,

June-August. In the maintenance plan, the permitted emission limits

will result in 5.845 tons/day (2000) and 26.148 tons/day (2008)

reduction in NOX emissions from the previously permitted emission

levels in the 1993 attainment year inventory. EPA has reviewed

Virginia's calculation of the benefits for this measure and finds the

amount of reduction Virginia claims acceptable.

As discussed earlier, Hampton Roads has continued to monitor

attainment of the ozone NAAQS through 1996. EPA believes that these

emissions projections and the associated control measures demonstrate

that the nonattainment area will continue to maintain the ozone NAAQS

until the year 2008.

5.C. Verification of Continued Attainment

Continued attainment of the ozone NAAQS in Hampton Roads depends,

in part, on the Commonwealth of Virginia's efforts toward tracking

indicators of continued attainment

[[Page 11343]]

during the maintenance period. The Commonwealth of Virginia will track

the status and effectiveness of the maintenance plan by updating the

emissions inventory annually and through periodic evaluations. Virginia

has committed to develop and submit to EPA comprehensive tracking

inventories every three years during the maintenance period.

The Commonwealth of Virginia will acquire source emissions data

through the annual emission statements program. The Commonwealth of

Virginia will continue to monitor ambient ozone levels by operating its

ambient ozone air quality monitoring network in accordance with 40 CFR

part 58. The Commonwealth will continue to follow appropriate quality

assurance and quality control procedures and enter the data into AIRS.

5.D. Contingency Plan

The level of VOC and NOX emissions in Hampton Roads will

largely determine its ability to stay in compliance with the ozone

NAAQS. Despite the Commonwealth of Virginia's best efforts to

demonstrate continued compliance with the NAAQS, Hampton Roads may

exceed or violate the NAAQS. Therefore, Virginia has provided the

following triggering events and contingency measures with a schedule

for implementation in the event of future ozone air quality problems.

1. In the event that VOC or NOX emissions exceed the projected

emissions inventories, RACT regulations will be implemented for either

VOC or NOX sources that have emissions of 100 tons per year or

more, depending on the pollutant of concern.

2. In the event that a violation of the ozone NAAQS occurs at any

individual monitor, either VOC RACT or NOX RACT regulations will

be implemented for all sources with emissions of over 100 tons per year

or more.

These contingency measures will be implemented on the following

schedule:

A. Notification received from EPA that a contingency measure must

be implemented, or three months after a recorded violation;

B. Applicable regulation to be adopted 12 months after date

established in A above;

C. Regulation implemented within 6 months of adoption;

D. Compliance with regulation achieved within 12 months of

adoption.

5.E. Subsequent Maintenance Plan Revisions

In accordance with section 175A(b) of the Act, the Commonwealth of

Virginia has agreed to submit a revised maintenance SIP eight years

after the area is redesignated to attainment. Such revised SIP will

provide for maintenance for an additional ten years.

EPA has determined that the maintenance plan adopted by the

Commonwealth of Virginia and submitted to EPA on August 27, 1996 meets

the requirements of section 175A of the Act. Therefore, EPA is

approving the maintenance plan.

III. Interim Implementation Policy (IIP) Impact

On December 13, 1996, EPA published proposed revisions to the ozone

and particulate matter NAAQS. Also on December 13, 1996, EPA published

its proposed policy regarding the interim implementation requirements

for ozone and particulate matter during the time period following any

promulgation of a revised ozone or particulate matter NAAQS (61 FR

65751). This IIP includes proposed policy regarding ozone redesignation

actions submitted to and approved by EPA prior to promulgation of a new

ozone standard, as well as those submitted prior to and approved by EPA

after the promulgation date of a new or revised ozone standard.

Complete redesignation requests, submitted and approved by EPA

prior to the promulgation date of the new or revised ozone standard,

will be allowed to redesignate to attainment based on the maintenance

plan's ability to demonstrate attainment of the current 1-hour standard

and compliance with existing redesignation criteria. Any redesignation

requests submitted prior to promulgation, which are not acted upon by

EPA prior to that promulgation date, must then also include a

maintenance plan which demonstrates attainment of both the current 1-

hour standard and the new or revised ozone standard to be considered

for redesignation.

As discussed previously, the Hampton Roads redesignation request

demonstrates attainment under the current 1-hour ozone standard.

Since the EPA plans to approve this request prior to the

promulgation date of the new or revised ozone standard, the Hampton

Roads redesignation request meets the proposed IIP.

IV. Motor Vehicle Emissions Budget

To achieve expeditious attainment of the NAAQS, the Clean Air Act

provisions at section 176 require that any project, program or plan in

any way approved, accepted or funded by the federal government conform

to the applicable SIP. As discussed earlier in this rulemaking in

2.B.2. Conformity Provisions, conformity determinations are required in

both maintenance and nonattainment areas. Transportation projects,

Transportation Improvement Programs (TIPs) and Long Range

Transportation Plans must demonstrate conformity.

In 40 CFR 51.392 EPA defines a motor vehicle emissions budget as

that portion of the total allowable emissions of any criteria pollutant

or its precursors, which is defined in a revision to the SIP required

to meet reasonable further progress, attainment or maintenance

demonstrations, and which is allocated to highway and transit vehicles.

The applicable implementation plan for an ozone nonattainment area

designates a motor vehicle emissions budget for volatile organic

compounds and may also allocate a similar budget for oxides of nitrogen

(NOX) in the case of the Post 1996 Reasonable Further Progress

Plans required in ozone nonattainment areas classified as serious or

above. The applicable SIP for an ozone nonattainment area may also

include a NOX budget if NOX reductions are being substituted

for reductions of VOCs in milestone years required for reasonable

further progress. The applicable SIP must demonstrate that this

NOX budget will be achieved with measures contained therein.

40 CFR 51.404 requires that long range transportation plans

specifically describe the transportation system envisioned for certain

future years, which are called horizon years. For maintenance areas,

the regional analysis of emissions from this transportation system in

each horizon year must be less than or equal to the motor vehicle

emissions budget established by the maintenance plan. EPA's

transportation conformity regulations require long range transportation

plans to demonstrate conformity for a period of time (20 years) that

goes well beyond the actual control strategy period on which the budget

is based. The maintenance plan requires adopted rules to cover only a

ten year maintenance period (Virginia's maintenance period for Hampton

Roads lasts until 2008).

Virginia is required by the Clean Air Act to perform a regional

emissions analysis on their long range transportation plans and compare

the ozone precursor emissions from this analysis to the VOC and

NOX motor vehicle emissions budgets, in ten year increments for

the 20 year timeframe of the long range transportation plan. The

Commonwealth chose to create a VOC and NOX motor vehicle emissions

budget for the Hampton Roads area for

[[Page 11344]]

the years after the 10-year timeframe of the maintenance plan in order

to facilitate transportation conformity determinations. To accommodate

the projected mobile emissions growth in the Hampton Roads area in the

horizon years of the transportation planning cycle (2015 and beyond),

additional emission reductions from enforceable control measures are

necessary for positive conformity determination purposes. To be

creditable, such reductions must be included in the SIP for the area.

Virginia's August 29, 1996 SIP revision modifies the motor vehicle

emissions budgets in the Hampton Roads maintenance plan in support of

the area's transportation plans for the period beginning in 2015.

Although mobile source emissions of NOX and VOC are predicted to

rise in the year 2015 as VMT increases, Virginia anticipates that

emission reductions will occur during this time period from pending

national emission control programs on non-road sources to offset this

growth, specifically new engine standards for marine engines,

locomotive engines and heavy duty diesel engines. The Act requires that

EPA promulgate new emission standards for marine engines, locomotive

engines and heavy duty diesel engines. For the purposes of conformity,

the motor vehicle emissions budgets in the maintenance plan are

increased to 53.730 tons per day of VOC and 80.617 tons per day of

NOX, with an effective date of January 1, 2015. The emissions

reductions from the national control programs create a safety margin.

For Hampton Roads the safety margin for VOC is 1.868 tons/day and for

NOX 10.610 tons/day. All these reductions from the non-road source

category are allocated to the motor vehicle emissions budget for the

purposes of conformity determinations. Virginia used applicable EPA

guidance 4 in calculating the anticipated emission benefits from

the national control programs.

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

\4\ EPA's guidance includes two policy memos ``Future Nonroad

Emission Reduction Credits for Locomotives'' dated January 3, 1995

and ``Future Nonroad Emission Reduction Credits for Court Order

Nonroad Standards'' dated November 28, 1996.

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

In general, approved budgets in the SIP are not superseded until

the replacement budgets in the next SIP are actually SIP approved.

However, because budgets after 2008 are not required by the Act for

this maintenance plan and are being established for conformity purposes

only to bridge the gap between the end of the first maintenance plan

and the horizon years, these budgets will cease to apply once the

second ten-year maintenance plan is submitted to EPA. The new submitted

budget prepared by the Commonwealth for the second 10-year maintenance

plan will replace the budget being approved today, as soon as it is

submitted to EPA because these budgets will be a more appropriate basis

of conformity. If the national emission control programs relied on in

this SIP revision are not implemented according to the current schedule

or do not produce the emission benefits anticipated, the Commonwealth

commits to revising the SIP to include other measures as necessary to

compensate any shortfall. Furthermore, the long range motor vehicle

emission budget approved today will have to be incorporated into the

second ten-year maintenance plan demonstrating continued attainment of

the ozone NAAQS developed for the Hampton Roads area. To satisfy

conformity requirements in outlying years, EPA is approving the motor

vehicle emissions budget for the Hampton Roads area submitted on August

29, 1996 into the Virginia SIP.

V. Final Action

The EPA has evaluated the Commonwealth's redesignation request for

Hampton Roads for consistency with the Act, EPA regulations, and EPA

policy. The EPA believes that the redesignation request and monitoring

data demonstrate that this area has attained the ozone standard. In

addition, EPA has determined that the redesignation request meets the

requirements of section 107(d)(3)(E) and policy set forth in the

General Preamble and policy memorandum discussed in this document for

area redesignations, and today is approving Virginia's redesignation

request for Hampton Roads submitted on August 27, 1996. Furthermore,

EPA is approving into the Virginia SIP the required maintance plan

because it meets the requirements of section 175A and the motor vehicle

emissions budget for the Hampton Roads area.

EPA is approving this SIP revision without prior proposal because

the Agency views this as a noncontroversial amendment and anticipates

no adverse comments. However, in a separate document in this Federal

Register publication, EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. This action will be

effective April 28, 1997 unless by April 11, 1997, adverse comments are

received.

If EPA receives such comments, this action will be withdrawn before

the effective date by publishing a subsequent document that will

withdraw the final action. All public comments received will then be

addressed in a subsequent final rule based on this action serving as a

proposed rule. EPA will not institute a second comment period on this

action. Any parties interested in commenting on this action should do

so at this time. If no such comments are received, the public is

advised that this action will be effective on April 28, 1997.

The Hampton Roads nonattainment area is subject to the Act's

requirements for marginal ozone nonattainment areas until and unless it

is redesignated to attainment.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

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

the state implementation plan shall be considered separately in light

of specific technical, economic, and environmental factors and in

relation to relevant statutory and regulatory requirements.

VI. Administrative Requirements

A. Executive Order 12866

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

by the Regional Administrator under the procedures published in the

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

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

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

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

B. Regulatory Flexibility Act

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

must prepare a regulatory flexibility analysis assessing the impact of

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

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

significant impact on a substantial number of small entities. Small

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

and government entities with jurisdiction over populations of less than

50,000.

Redesignation of an area to attainment under section 107(d)(3)(E)

of the CAA does not impose any new requirements on small entities.

Redesignation is an action that affects the status of a geographical

area and does not impose any regulatory requirements on sources. The

Administrator certifies that the approval of the redesignation request

[[Page 11345]]

will not affect a substantial number of small entities.

C. Unfunded Mandates

Under Section 202 of the Unfunded Mandates Reform Act of 1995

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

must prepare a budgetary impact statement to accompany any proposed or

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

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

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

select the most cost-effective and least burdensome alternative that

achieves the objectives of the rule and is consistent with statutory

requirements. Section 203 requires EPA to establish a plan for

informing and advising any small governments that may be significantly

or uniquely impacted by the rule.

EPA has determined that the approval action proposed/promulgated

does not include a Federal mandate that may result in estimated costs

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

in the aggregate, or to the private sector. This Federal action

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

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

local, or tribal governments, or to 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 Clean Air Act, petitions for

judicial review of EPA's approval of the Hampton Roads redesignation

request, maintenance plan and mobile emissions budget must be filed in

the United States Court of Appeals for the appropriate circuit by May

12, 1997. 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,

Incorporation by reference, Intergovernmental relations, Nitrogen

dioxide, Ozone, Reporting and recordkeeping requirement.

Dated: February 5, 1997.

W. Michael McCabe,

Regional Administrator, Region III.

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 VV--Virginia

2. Section 52.2420 is amended by adding paragraph (c)(117) to read

as follows:

Sec. 52.2420 Identification of plan.

* * * * *

(c) * * *

(117) The ten year ozone maintenance plan for Hampton Roads,

Virginia ozone nonattainment area submitted by the Virginia Department

of Environmental Quality on August 27, 1996:

(i) Incorporation by reference.

(A) Letter of August 27, 1996 from the Virginia Department of

Environmental Quality transmitting the 10 year ozone maintenance plan

for the Hampton Roads marginal ozone nonattainment area.

(B) The ten year ozone maintenance plan including emission

projections, control measures to maintain attainment and contingency

measures for Hampton Roads ozone nonattainment area adopted on August

27, 1996.

(ii) Additional Material.

(A) Remainder of August 27, 1996 Commonwealth submittal pertaining

to the redesignation request and maintenance plan referenced in

paragraph (c)(117)(i) of this section.

3. Section 52.2424 is added to read as follows:

Sec. 52.2424 Motor Vehicle Emissions Budgets.

Motor vehicle emissions budget for the Hampton Roads maintenance

area adjusting the mobile emissions budget contained in the maintenance

plan for the horizon years 2015 and beyond adopted on August 29, 1996

and submitted by the Virginia Department of Environmental Quality on

August 29, 1996.

PART 81--[AMENDED]

4. The authority citation for part 81 continues to read as follows:

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

Subpart C--Section 107 Attainment Status Designations

4. In Sec. 81.347 the ``Virginia-Ozone'' table is amended by

revising the entry for ``Norfolk-Virginia Beach-Newport News (Hampton

Roads) Area'' to read as follows:

Sec. 81.347 Virginia.

* * * * *

[[Page 11346]]

Virginia--Ozone

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

Designation Classification

Designated Area ---------------------------------------------------------------------------

Date \1\ Type Date \1\ Type

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

Norfolk-Virginia Beach-Newport News [insert date 45 days Unclassifiable/ ........... ...........

(Hampton Roads) Area after publication Attainment.

date].

Chesapeake

Hampton

James City County

Newport News

Norfolk

Poquoson

Portsmouth

Suffolk

Virginia Beach

Williamsburg

York County

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

\1\ This date is November 15, 1990, unless otherwise noted.

* * * * *

[FR Doc. 97-6078 Filed 3-11-97; 8:45 am]

BILLING CODE 6560-50-P