Approval and Promulgation of Implementation Plans; State of Missouri

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[FRL-6225-6]

Approval and Promulgation of Implementation Plans; State of

Missouri

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Kansas City ozone maintenance area experienced a violation

of the National Ambient Air Quality Standard (NAAQS) for ozone in 1995.

In response to this violation, Missouri submitted revisions to its

ozone maintenance plan. These revisions pertain to the implementation

of control strategies to achieve reductions in volatile organic

compound (VOC) emissions within the Missouri portion of the Kansas City

ozone maintenance area. A major purpose of these revisions is to

provide a more flexible approach to maintenance of acceptable air

quality levels in Kansas City, while achieving emission reductions

equivalent to those required by the previously approved plan.

The EPA is proposing to conditionally approve the 1998 revisions to

the Kansas City ozone maintenance plan as a revision to the Missouri

State Implementation Plan (SIP). Final approval is contingent upon

Missouri's submission of additional, enforceable control measures.

In a separate Federal Register notice published today, the EPA is

also proposing conditional approval of a similar plan submitted by the

Kansas Department of Health and Environment to address the Kansas

portions of the ozone maintenance area.

DATES: Comments on this proposed rule must be received in writing on or

before February 25, 1999.

ADDRESSES: Comments may be mailed to Royan Teter, Environmental

Protection Agency, Air Branch, 726 Minnesota Avenue, Kansas City,

Kansas 66101. The state submittal and the EPA-prepared technical

support document are available for public review at the above address.

FOR FURTHER INFORMATION CONTACT: Royan Teter at (913) 551-7609.

SUPPLEMENTARY INFORMATION:

I. Background

The Kansas City metropolitan area (KCMA), consisting of Clay,

Platte, and Jackson Counties in Missouri and Johnson and Wyandotte

Counties in Kansas, was designated nonattainment for ozone in 1978. The

Clean Air Act (CAA) provides for areas with a prescribed amount of air

quality data showing attainment of the standard to be redesignated from

nonattainment to attainment, if the requirements of section

107(d)(3)(E) are met. One of these requirements is for the area to

adopt a maintenance plan consistent with the requirements of section

175A. This plan must demonstrate attainment of the NAAQS with a margin

of safety sufficient to remain in attainment for ten years. Also, the

plan must contain a contingency plan to be implemented if the area once

again violates the standard.

Ozone monitoring data from 1987 through 1991 demonstrated that the

Kansas City nonattainment area had attained the ozone NAAQS. In

accordance with the CAA, the Missouri Department of Natural Resources

(MDNR) revised the ozone SIP for the Missouri portion of the Kansas

City area to recognize the area's attainment status. The EPA published

final approval of the Missouri SIP on June 23, 1992. The SIP became

effective on July 23, 1992 (57 FR 27939). This action effected the

redesignation of the area to attainment.

The contingency plan approved as part of the 1992 SIP identified

four measures which were to be implemented upon subsequent violation of

the standard in the Kansas City area. These contingency measures

required: (1) Certain new or expanding sources of ozone precursors to

acquire emissions offsets; (2) the installation of Stage II vapor

recovery systems at retail gasoline stations or the implementation of

an enhanced inspection and maintenance (I/M) program for motor

vehicles; (3) the implementation of transportation control measures

achieving a 0.5 percent reduction in areawide VOC emissions; and (4)

the completion of a comprehensive emissions inventory.

In a letter from Dennis Grams, EPA Region VII Administrator, to

David Shorr, MDNR Director, on January 31, 1996, the EPA informed the

MDNR of a violation of the ozone NAAQS. Quality-assured air quality

monitoring data indicated measured exceedances of the

[[Page 3902]]

ozone standard on July 11, 12, and 13, 1995, at the Liberty monitoring

site in Kansas City. The highest recorded value for each day was 0.128

ppm, 0.161 ppm, and 0.131 ppm, respectively. These exceedances, in

combination with the measured exceedance of 0.128 ppm recorded on July

29, 1993, constitute a violation of the standard.

As a result of this violation, Missouri was required to implement

the contingency measures identified in the approved SIP. In a July 28,

1995, letter from Roger Randolph (Air Pollution Control Program

Director), to William Spratlin (Air, RCRA, and Toxics Division

Director), Missouri requested guidance on responding to the KCMA ozone

violation. Specifically, Missouri requested flexibility in utilizing

control measures other than those identified in the approved SIP. Via

an August 17, 1995, letter from William Spratlin to Roger Randolph, the

EPA affirmed that Missouri and Kansas may substitute other contingency

measures for those in the approved SIP, provided: (1) The substitute

measures would achieve substantially equivalent emission reductions;

(2) the substitute measures were submitted as a SIP revision; and (3)

the substitute measures were implemented before the 1996 ozone season.

It must be emphasized that this flexibility was extended to both Kansas

and Missouri.

To address the short-term need to control emissions, Missouri

promulgated an emergency rule to limit the summertime Reid Vapor

Pressure (RVP) of gasoline sold within the KCMA to 7.2 pounds per

square inch (psi) (10 CSR 10-2.330). The emergency rule was to expire

on October 27, 1997. Prior to its expiration, the state promulgated a

permanent regulation. The permanent rule was published in the Code of

State Regulations (CSR) on September 30, 1997, and became effective

October 30. On October 9, 1997, the EPA published a rule, which

conditionally approved the state emergency rule upon receipt of an

equivalent, adopted permanent rule. The state fulfilled the

requirements of the conditional approval by submitting a permanent

Missouri rule on November 13, 1997. The EPA published full approval of

Missouri's permanent RVP rule on April 24, 1998 (Federal Register, Vol.

63, No. 79, 20318). The approval became effective on May 24, 1998.

To address the longer-term need to reduce VOC and nitrogen oxides

(NOX) emissions, the Mid-America Regional Council's Air

Quality Forum (MARC AQF), comprised of representatives from local

governments, business, health, and environmental organizations, agreed

to examine various alternative control strategies and recommend a suite

of viable measures to Missouri and Kansas. The AQF recommended: (1)

Expanding public education efforts; (2) low RVP gasoline; (3) motor

vehicle I/M; (4) seasonal no-fare public transit; (5) a voluntary clean

fuel fleets program; and (6) additional transportation control

measures. The AQF also recommended a group of supplemental measures

aimed at reducing ozone levels. The emissions reductions associated

with the voluntary measures, specifically clean fuel fleets and

transportation control, cannot be quantified due to their voluntary

nature.

The MDNR presented a maintenance SIP, with the AQF recommendations,

to the Missouri Air Conservation Commission (MACC) on June 24, 1997. At

that time, the MACC recommended inclusion of a more timely and less

politically sensitive control measure in place of the I/M provision. As

a result, on October 7, 1997, the AQF recommended the implementation of

a reformulated gasoline (RFG) program in the KCMA. In response,

Missouri has committed to pursuing, among other options, petitioning

the EPA to require the sale of RFG in the KCMA under the provisions of

the Federal RFG program.

The final state submittal provides for continued monitoring,

emissions inventory updates, a summertime RVP limit, and several

programs for which emissions reductions cannot be quantified, including

completion of a stationary source study, voluntary clean fuel fleets,

seasonal low-fare transit, air quality conscious land use planning, and

bicycle and pedestrian friendly transportation planning. In addition,

the revised plan contains commitments to adopt either the Federal RFG

Program, a state fuel regulation, or a Stage II regulation.

If violations continued to occur after implementation of the above

measures, the state will adopt further regulations as necessary,

selected from a list including, but not limited to, Stage II vapor

recovery, enhanced I/M, emissions offsets from new or modified sources,

and mandatory clean fuel fleets.

According to state estimates, limiting the summertime RVP of

gasoline to 7.2 psi achieves VOC emissions reductions of only 4.0 tons

per day. As such, additional reductions are necessary to provide for

reductions substantially equivalent to those (8.4 tons per day)

obtainable by implementing the contingency measures in the previously

approved SIP. The implementation of an RFG program is therefore

critical to meeting Missouri's obligation to achieve the necessary

reductions.

II. Evaluation Criteria

To evaluate the maintenance plan, the EPA referred to requirements

of section 175A of the Act. The EPA also issued guidance specifically

to address applicable procedures for handling redesignation requests,

including maintenance plan provisions ``Procedures for Processing

Requests to Redesignate Areas to Attainment,'' John Calcagni, Director,

Air Quality Management Division, to EPA Regional Division Directors,

dated September 4, 1992. In addition, the EPA reviewed the maintenance

plan for evidence that the substitute control measures provide for

emissions reductions which are substantially equivalent to those

approved in the 1992 SIP, pursuant to guidance given in the August 17,

1995, letter, from William Spratlin to Roger Randolph. Finally, the EPA

evaluated the revised maintenance with respect to the ``Guidance for

Implementing the 1-Hour Ozone and Pre-Existing PM10 NAAQS''

from Richard D. Wilson, Acting Assistant Administrator for Air and

Radiation, to EPA Regional Administrators.

III. Review of Submittal

According to the September 4, 1992, memo from John Calcagni

regarding ``Procedures for Processing Requests to Redesignate Areas to

Attainment,'' a maintenance plan must provide for maintenance of the

ozone NAAQS for at least ten years after redesignation. Section 175A of

the CAA defines the general framework of a maintenance plan. The

Calcagni memo identifies the following list of core provisions

necessary to ensure maintenance of the ozone NAAQS: emission inventory,

maintenance demonstration (including control measures), air monitoring

network, verification of continued attainment, and a contingency plan.

Below is a discussion of each of these provisions, as addressed in the

1998 revision to the Kansas City SIP for control of ozone.

A. Emissions Inventory

The emissions inventory for the KCMA was revised in 1995. In a

direct final rule (61 FR 18251), published on April 25, 1996, the EPA

approved the revised emissions inventory. The emissions inventory

estimated VOC and NOX actual emissions for 1990 and 1992

while using industrial growth factors to project VOC and NOX

emissions for 1995, 2000, 2005, and 2010. Point, area, mobile, biogenic

VOC, and NOX emission totals were estimated. The

[[Page 3903]]

inventory summarized totals for each emissions category and reported

emissions by source type. VOC emissions for the entire KCMA were

estimated at 322,557 and 286,279 kilograms per summer day in 1990 and

1992, respectively. The present SIP revisions are based on the

inventory as revised in 1995.

B. Control Measures

The state has provided estimates of the achievable emissions

reductions for only two of the many measures (7.2 RVP gasoline and RFG)

included in the SIP. These estimates were evaluated to determine

whether they are substantially equivalent to the reductions for which

the 1992 SIP provides. In accord with the original maintenance plan,

implementation of a regulation requiring Stage II vapor recovery

systems at retail gasoline stations would result in daily VOC emissions

reductions of 6.9 tons per day. An additional 1.5 tons per day of VOC

reductions would be achieved through implementation of transportation

control measures, making the 1992 SIP designed to reduce VOC emissions

of by a minimum of 8.4 tons per day. Accordingly, Missouri must

demonstrate the substitute control measures will provide for areawide

VOC reductions of at least 8.4 tons per day.

1. Gasoline Volatility Control

Typically reported as RVP, volatility is a measure of the tendency

of gasoline to evaporate. RVP, expressed in psi, denotes the pressure

exerted by a vapor at 100 deg.F. The evaporation of gasoline adds to

the quantity of VOCs in the atmosphere contributing to ozone formation.

As a result of the ozone violation in 1995, Missouri developed an

emergency regulation for the Missouri portion of the KCMA to limit the

summertime RVP of gasoline to 7.2 psi. This regulation became effective

May 1, 1997, and expired at midnight on October 27, 1997. In the

meantime, the state worked to develop a permanent regulation limiting

summertime RVP of gasoline to 7.2 psi. This regulation was presented at

public hearing at the May 29, 1997, MACC meeting. The MACC adopted the

regulation at the same meeting. The final order of rulemaking was

published in the September 3, 1997, Missouri Register. The final

permanent rule was published in the CSR on September 30, 1997, and

became effective October 30. On October 9, 1997, the EPA published a

conditional final rule, which was contingent upon Missouri submitting

the final permanent rule by November 30, 1997. Missouri submitted the

permanent rule on November 13, 1997. Therefore, the EPA published final

approval of the 7.2 psi RVP rule on April 24, 1998 (63 FR 20318). The

rule became effective on May 26, 1998.

Emissions estimates for on-road mobile sources were developed using

the EPA MOBILE5a model. Evaporative emissions from off-road mobile

sources were estimated to decrease by 2.7 percent, assuming 90 percent

of the off-road emissions are combustive and 10 percent are

evaporative. Missouri has demonstrated that limiting the volatility of

gasoline to 7.2 psi will reduce VOC emissions by 4.0 tons per day

within the KCMA.

2. RFG

RFG is a blend of gasoline containing oxygenates and lower levels

of toxic substances. It is designed to reduce emissions of pollutants,

including VOC from motor vehicle exhaust. RFG contains many of the same

ingredients found in conventional gasoline, but in different

quantities. The addition of oxygenates, such as ethanol or methyl

tertiary butyl ether, increases its oxygen content, and thereby

increases the combustion efficiency of the vehicle. The evaporative

emissions can also be reduced depending on the RVP of the base gasoline

to which the oxygenates are added.

The RVP requirement for RFG in Missouri, as defined in 40 CFR

80.71(a), is 7.2 psi. Emission reductions from RFG were modeled using

the EPA MOBILE 5a. The MDNR modeled emission reductions from on-road

mobile source emissions. Projected emissions are estimated to be 96.65

tons per day in 2000. After implementation of 7.2 RVP, the emissions in

2000 are projected to be reduced to 89.22 tons per day. If RFG were to

be implemented in 2000, emissions are projected to be reduced to 74.88,

for an estimated incremental reduction of 14.34 tons per day.

As part of this proposed SIP revision, the MDNR commits to

requesting that the Governor of Missouri petition the EPA to include

the KCMA in the Federal RFG Program as of April 15, 2000. Previously,

Missouri was prohibited from implementing RFG because the EPA had not

promulgated the final regulation, making it possible for former

nonattainment areas to participate in the Federal RFG program. However,

this obstacle has been lifted by the EPA's rulemaking signed by the

Administrator September 21, 1998, and published in the Federal Register

on September 29, 1998 (63 FR 52093). Therefore, the EPA expects that

the Governor of Missouri will request that the KCMA be included in the

Federal RFG program. Upon fulfillment of this commitment, the EPA will

propose to fully approve this SIP.

If the state does not opt in to the RFG program, the state must, by

the deadline established in the final conditional approval, implement

one of the two proposed alternatives (either a state fuel or Stage II

vapor recovery). In this case, the state must adopt and submit any

necessary regulations to implement either of the proposed alternatives.

The EPA will initiate a rulemaking on this subsequent revision. If the

state fails to make such a submittal by the deadline specified in the

final conditional approval, the conditional approval converts to a

disapproval.

3. Clean Fuel Fleets

Clean fuel fleets programs take advantage of vehicles relying on

cleaner burning energy sources for fuel. These vehicles may operate on

an array of fuels including electricity, compressed natural gas,

propane, and ethanol blended gasolines. Because this program is

voluntary, Missouri is not seeking and the EPA is not approving credit

for emissions reductions under the maintenance plan.

4. Seasonal Low-fare Transit

The AQF and the MARC board recommended the area's transit providers

provide no-fare transit during peak ozone season beginning in 1997 to

encourage people to choose public transportation over the use of

personal motor vehicles. The Kansas City Area Transportation Authority

requested the AQF endorse a reduced-fare program, commencing in 1998.

Participation in this program is voluntary and difficult to estimate,

and no permanent funding source has been identified. Therefore,

Missouri is not seeking and the EPA is not approving credit for

emission reductions for this program under this maintenance plan.

5. Stage II Vapor Recovery

Stage II vapor recovery systems are used to control emissions of

VOC containing gasoline vapors which are displaced during motor vehicle

refueling. The vapors are captured using specially equipped nozzles and

are routed back to the underground storage tank from which the gasoline

is being pumped. Emissions estimates were calculated based on output

from the EPA's MOBILE5a emissions model. If Stage II vapor recovery

systems were required in the KCMA, VOC emissions from refueling could

be reduced by 6.1 tons per day during the first year of use. The need

for such systems is expected

[[Page 3904]]

to decrease over the long term, given there is a Federal requirement

that all light duty vehicles and trucks be equipped with on-board vapor

recovery systems beginning with model years 1998 and 2001,

respectively; however, Stage II systems will remain an effective

control measure for several years given that on-board systems will be

phased in over nine years, and it will be several years before older,

unequipped vehicles will be retired.

6. Additional Supplemental Measures

The EPA supports Missouri's commitment to implement various

additional programs aimed at reducing VOC and NOX emissions.

Implementation of these programs will assist the KCMA in meeting both

the 1-hour and 8-hour ozone standards. Missouri is not claiming and the

EPA is not approving emissions reductions from these programs for

purposes of the SIP. These measures include enhanced traffic

signalization, a potentially expanded transit system, enhanced land-use

planning, stationary source emissions controls, expanded public

education programs, and air quality data collection.

C. Air Monitoring Network

The ambient air monitoring network which measures ozone

concentrations in the KCMA consists of six monitoring stations. Five

are located in Missouri at Liberty, Watkins Mill, Worlds of Fun, Kansas

City International Airport (KCI), and Richards Gebaur Airport. The

remaining monitoring station is located in Kansas City, Kansas. Liberty

and Watkins Mill are downwind, assuming predominant winds are from the

southwest. Two monitors, Worlds of Fun and KCI, are placed in populated

areas. Richards Gebaur is considered an upwind site, designed to

monitor ozone transport from outside the area. The final monitor is

located in downtown Kansas City, Kansas, in Wyandotte County.

Ozone concentrations may not exceed the 1-hour standard more than

an average of once per year at any single monitoring site over any

given three-year period. Eighteen exceedances of the ozone standard

have been recorded in the KCMA from 1990 through 1998. Nine of these

exceedances occurred in 1995, with three each at the Liberty and

Watkins Mill sites, two at Worlds of Fun site, and one at the KCI site.

Four exceedances recorded at the Liberty site constituted the violation

triggering the implementation of the previously approved plan.

D. Maintenance of the Standard

By virtue of the approval of the 1992 maintenance SIP, the

Administrator deemed the VOC reductions, for which the contingency

measures provided, necessary to promptly correct any violation of the

1-hour ozone standard which might occur subsequent to redesignation of

the area from nonattainment to attainment. Hence, the revised

contingency measures must provide for the equivalent level of

reductions. The Agency has determined that if Missouri meets the

conditions set forth in this action, the revised plan will achieve the

required reductions. The state has provided VOC emissions projections

for the ten-year period following maintenance plan development. In

addition, the state has committed to regularly updating the emissions

inventory for the KCMA to ensure that emissions trends are

appropriately tracked to facilitate future air quality planning

activities.

E. Contingency Plan

The revised maintenance plan includes additional control measures

to replenish the contingency measures that are being implemented in

response to the 1995 violation of the standard. These measures are to

be implemented in the event that additional violations are recorded.

The MDNR is committed to implement, in the order listed, the following

measures upon violation of the 1-hour ozone standard: (1) Stage II

vapor recovery, (2) enhanced I/M (I/M 240), (3) emission offsets, and

(4) mandatory clean fuel fleets. The implementation of these control

measures is dependent on obtaining administrative and legislative

approval.

F. Additional Reasonably Available Control Technology (RACT)

Regulations

Because the KCMA was classified as a submarginal nonattainment

area, Missouri was required to implement RACT controls under section

182(a)(2)(A) of the CAA. The states of Missouri and Kansas implemented

these regulations prior to the redesignation of the area. The MDNR

implemented RACT on all major sources that were covered by control

technique guideline (CTG) categories I, II, and III. In addition, the

Department implemented non-CTG RACT on sources greater than 100 tons of

VOC emissions per year.

The MDNR conducted a stationary source study to determine sources

that could further be controlled through RACT regulations. Based on

this study, the MDNR recommends five VOC regulations to pursue: solvent

cleaning, soybean oil extraction, aerospace surface coating, upgraded

offset lithography, and volatile organic liquid storage.

IV. Policy Review

Because Kansas City has recorded a violation of the 1-hour ozone

standard in 1995, and recent air quality analyses performed by Missouri

suggest Kansas City is likely to violate the new 8-hour standard,

Missouri must proceed to expeditiously implement the provisions of the

maintenance plan which are the subject of today's action. Protecting

the 1-hour ozone standard becomes increasingly important in light of

new requirements being established to implement the revised 8-hour

ozone standard, which was finalized July 16, 1997. For this new

standard, the EPA will establish a special ``transitional''

classification for areas that participate in a regional strategy or

that opt to submit early plans addressing the 8-hour standard. The

transitional classification will be available only to those areas

meeting certain criteria, including having air quality data meeting the

1-hour standard by 2000. These transitional areas will be subject to

less restrictive new source review and transportation conformity

requirements than other nonattainment areas. These less restrictive

requirements are important to companies seeking to expand existing

operations or start new operations. Therefore, achieving the reductions

associated with the maintenance plan proposed for approval today has

critical implications for the ability of the KCMA to meet the

requirements of the new 8-hour ozone standard. However, the control

measures which would be conditionally approved are required to be

implemented first and foremost to protect the 1-hour ozone standard.

Based on air quality data from 1996 through 1998 (after the

violation which triggered the contingency measures in the 1992

maintenance plan), the Kansas City area may be able to demonstrate that

it has now achieved the 1-hour ozone standard. However, the EPA's

``Guidance for Implementing the 1-Hour Ozone and Pre-Existing

PM10 NAAQS'' states that, in general, contingency measures

which were triggered prior to revocation of the 1-hour standard must be

retained. Therefore, although the EPA believes that the 1996 through

1998 data justify the brief delay in implementation of the substitute

contingency measures, it does not relieve the states of the need to

implement RFG, or one of the alternatives identified in this notice.

[[Page 3905]]

V. Conclusion

The EPA is soliciting public comments on this notice and on issues

relative to the EPA's proposed action. Comments will be considered

before taking final action. Interested parties may participate in the

Federal rulemaking procedure by submitting written comments to the

address above.

VI. Proposed Action

In today's notice, the EPA proposes to conditionally approve

Missouri's 1998 revisions to the Kansas City SIP for control of ozone.

This includes the VOC control measures described above, the emissions

reduction credits identified by the state, and the commitment to

implement the additional reductions as expeditiously as practicable.

Full approval of the SIP is conditioned upon receipt of one of the

following: (1) A letter from the Governor of Missouri requesting that

the EPA require the sale of Federal RFG within the Missouri portion of

the KCMA beginning April 15, 2000; (2) an alternative state fuel

regulation; or (3) a regulation requiring Stage II vapor recovery

systems at retail gasoline stations. If the state fails to submit one

of the above, the conditional approval converts to a disapproval. The

EPA proposes to establish a deadline for meeting the condition which is

one year from the effective date of the final rule conditionally

approving the state's 1998 submittal. The statute requires that the

condition be met within one year of the conditional approval. The EPA

seeks comments on whether a shorter deadline should be established.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to the SIP shall be

considered separately in light of specific technical, economic, and

environmental factors, and in relation to relevant statutory and

regulatory requirements.

VII. Administrative Requirements

A. Executive Order (E.O.) 12866

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

regulatory action from E.O. 12866, entitled ``Regulatory Planning and

Review.''

B. E.O. 12875

Under E.O. 12875, the EPA may not issue a regulation that is not

required by statute and that creates a mandate upon a state, local, or

tribal government, unless the Federal Government provides the funds

necessary to pay the direct compliance costs incurred by those

governments, or the EPA consults with those governments. If the EPA

complies by consulting, E.O. 12875 requires the EPA to provide to the

OMB a description of the extent of the EPA's prior consultation with

representatives of affected state, local, and tribal governments, the

nature of their concerns, copies of any written communications from the

governments, and a statement supporting the need to issue the

regulation. In addition, E.O. 12875 requires the EPA to develop an

effective process permitting elected officials and other

representatives of state, local, and tribal governments ``to provide

meaningful and timely input in the development of regulatory proposals

containing significant unfunded mandates.''

Today's proposal would not create a mandate on state, local, or

tribal governments. It would merely approve actions which the state has

already chosen to take. Accordingly, the requirements of Section 1(a)

of E.O. 12875 do not apply to this rule.

C. E.O. 13045

Protection of Children from Environmental Health Risks and Safety

Risks (62 FR 19885, April 23, 1997) applies to any rule that: (1) Is

determined to be ``economically significant'' as defined under E.O.

12866, and (2) concerns an environmental health or safety risk that the

EPA has reason to believe may have a disproportionate effect on

children. If the regulatory action meets both criteria, the Agency must

evaluate the environmental health or safety effects of the planned rule

on children, and explain why the planned regulation is preferable to

other potentially effective and reasonably feasible alternatives

considered by the Agency.

This rule is not subject to E.O. 13045 because it does not involve

decisions intended to mitigate environmental health or safety risks

that the EPA has reason to believe may have a disproportionate effect

on children.

D. E.O. 13084

Under E.O. 13084, the EPA may not issue a regulation that is not

required by statute, that significantly or uniquely affects the

communities of Indian tribal governments, and that imposes substantial

direct compliance costs on those communities, unless the Federal

government provides the funds necessary to pay the direct compliance

costs incurred by the tribal governments, or the EPA consults with

those governments. If the EPA complies by consulting, E.O. 13084

requires the EPA to provide to the OMB, in a separately identified

section of the preamble to the rule, a description of the extent of the

EPA's prior consultation with representatives of affected tribal

governments, a summary of the nature of their concerns, and a statement

supporting the need to issue the regulation. In addition, E.O. 13084

requires the EPA to develop an effective process permitting elected

officials and other representatives of Indian tribal governments ``to

provide meaningful and timely input in the development of regulatory

policies on matters that significantly or uniquely affect their

communities.''

Today's rule does not significantly or uniquely affect the

communities of Indian tribal governments. This action does not involve

or impose any requirements that affect Indian tribes. Accordingly, the

requirements of Section 3(b) of E.O. 13084 do not apply to this rule.

E. Regulatory Flexibility Act (RFA)

The RFA generally requires an agency to conduct a regulatory

flexibility analysis of any rule subject to notice and comment

rulemaking requirements, unless the agency certifies that the rule will

not have a significant economic impact on a substantial number of small

entities. Small entities include small businesses, small not-for-profit

enterprises, and small governmental jurisdictions. This proposed rule

will not have a significant impact on a substantial number of small

entities because SIP approvals under section 110 and Subchapter I, Part

D of the CAA do not create any new requirements, but simply approve

requirements that the state has already chosen to impose. Therefore,

because the Federal SIP approval does not create any new requirements,

I certify that this action will not have a significant economic impact

on a substantial number of small entities. Moreover, due to the nature

of the Federal-state relationship under the CAA, preparation of

flexibility analysis would constitute Federal inquiry into the economic

reasonableness of state action. The CAA forbids the 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).

F. Unfunded Mandates

Under Section 202 of the Unfunded Mandates Reform Act of 1995

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

must prepare a budgetary impact statement to accompany any proposed or

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

annual costs to state, local, or tribal

[[Page 3906]]

governments in the aggregate; or to private sector, of $100 million or

more. Under Section 205, the 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 the EPA to establish a plan for informing and advising any

small governments that may be significantly or uniquely impacted by the

rule.

The EPA has determined that the approval action promulgated does

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

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

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

approve requirements which the state has chosen to undertake 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, would result from this action. This action would not

result in annualized costs of 100 million dollars or more.

List of Subjects in 50 CFR Part 52

Air pollution control, Hydrocarbons, Intergovernmental relations,

Ozone, Volatile organic compounds.

Authority: 42 U.S.C. 7401 et seq.

Dated: January 15, 1999.

Dennis Grams,

Regional Administrator, Region VII.

[FR Doc. 99-1761 Filed 1-25-99; 8:45 am]

BILLING CODE 6560-50-P