Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; Post-96 Rate of Progress Plan for the Philadelphia Ozone Nonattainment Area

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[PA100-4093; FRL-6428-4]

Approval and Promulgation of Air Quality Implementation Plans;

Pennsylvania; Post-96 Rate of Progress Plan for the Philadelphia Ozone

Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing limited approval of a State Implementation

Plan (SIP) revision submitted by the Commonwealth of Pennsylvania. This

revision consists of the three percent per year emission reduction

rate-of-progress (ROP) plan for the period 1996-1999 in the

Pennsylvania portion of the Philadelphia-Wilmington-Trenton severe

ozone nonattainment area (the Philadelphia area). This requirement is

commonly known as the Post-96 ROP plan. The intended effect of this

action is to propose limited approval of this ROP plan required by the

Clean Air Act to ensure progress on reducing emissions of ozone

precursors.

DATES: Written comments must be received on or before September 24,

1999.

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

Ozone and Mobile Sources Branch, Mailcode 3AP21, U.S. Environmental

Protection Agency, Region III, 1650 Arch Street, Philadelphia,

Pennsylvania 19103. Copies of the documents relevant to this action are

available for public inspection during normal business hours at the Air

Protection Division, U.S. Environmental Protection Agency, Region III,

1650 Arch Street, Philadelphia, Pennsylvania 19103, and the

Pennsylvania Department of Environmental Protection, Bureau of Air

Quality, P.O. Box 8468, 400 Market Street, Harrisburg, Pennsylvania

17105.

FOR FURTHER INFORMATION CONTACT: Cristina Fernandez, (215) 814-2178. Or

by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: EPA has prepared a technical support

document (TSD) for this action. The TSD contains details of

Pennsylvania's July 31, 1998 submittal and EPA's evaluation of that

submittal. Copies of the TSD are available from the EPA Regional office

listed in the ADDRESSES section of this document.

I. Background

Section 182(b)(1) of the Clean Air Act (the Act) requires all

moderate, serious, severe, and extreme ozone nonattainment areas to

reduce volatile organic compound (VOC) emission 15% from 1990 levels by

1996. That requirement is known as the 15% plan. Section 182(c)(2)(B)

of the Act requires serious, severe, and extreme ozone nonattainment

areas to reduce emissions of VOC by 3% per year every year from 1996

until their attainment dates. This requirement, known as the Post-96

rate-of-progress (ROP) plan, was originally due by November 15, 1994.

However, in a March 2, 1995 memorandum, EPA Assistant Administrator

Mary Nichols outlined an alternative attainment demonstration policy

that combines the Post-96 ROP plan with the attainment demonstration

requirements found in section 182(c)(2)(A) of the Act. This approach

consists of two ``phases.'' Phase I requires the states to submit a

plan to meet ROP from 1996 to 1999 (the Post-96 ROP plan), and a set of

three enforceable commitments. For Phase II, states are required to

submit a ROP plan from 1999 to the area's attainment year (commonly

referred to as the Post 99 ROP plan), and a modeled attainment

demonstration.

The Philadelphia area is classified as a severe ozone nonattainment

area. This is a four-state ozone nonattainment area consisting of

portions of Delaware, Maryland, New Jersey, and Pennsylvania. For

purposes of the Post 96 ROP plan, the four states have maintained the

same agreement they reached regarding the 15% ROP plan for the

Philadelphia area, namely that each state would secure a 15% reduction,

and now a 9% (3% per year for 1997, 1998 and 1999) reduction from its

portion of the area's base year inventory. The Pennsylvania portion of

the Philadelphia area consists of Bucks, Chester, Delaware, Montgomery,

and Philadelphia Counties. In a May 31, 1995 letter from James Seif,

Secretary of Pennsylvania's Department of Environmental Protection to

EPA Region III, Pennsylvania committed to participating in the

alternative attainment demonstration approach outlined in the March 2,

1995 memorandum.

On July 31, 1998, the Pennsylvania Department of Environmental

Protection (PADEP) submitted a revision to the Pennsylvania State

Implementation Plan (SIP) consisting of the Post-96 plan for the

Pennsylvania portion of the Philadelphia severe ozone nonattainment

area. EPA received this revision on August 4, 1998. PADEP's July 31,

1998 submittal contains both the 1996 to 1999 ROP reduction, and the

additional requirements described in the March 2, 1995 Mary Nichols

memorandum. This submittal also includes the 1990 oxides of nitrogen

(NOX) base year inventory for the Philadelphia nonattainment

area. In an October 2, 1998 letter, EPA determined that PADEP's

submittal is administratively and technically complete. That

completeness determination stopped the 18-month sanctions clock that

EPA started on May 7, 1997. The sanctions clock had been started for

Pennsylvania's failure to submit the enforceable commitments to adopt

(1) additional measures needed for attainment and (2) the remainder of

the rules to meet ROP requirements pending modeling results from the

Ozone Transport Assessment Group (OTAG), as required by the March 2,

1995 Mary Nichols memorandum. PADEP's complete July 31, 1998 SIP

submittal remedied that failure. Therefore, the sanctions clock was

halted.

This rulemaking only addresses the portion of PADEP's July 31, 1998

submittal related to the 1996 to 1999 ROP plan, i.e. the Post-96 ROP

plan. On June 17, 1999 EPA approved the 1990 NOX base year

inventory SIP submittal in a separate rulemaking action (64 FR 32424).

Section 182(c)(2)(C) of the Act allows states to substitute

emission reductions of NOX occurring after 1990 for VOC

reductions in the Post-1996 rate of progress plans. VOC and

NOX reduction measures, whether mandatory under the Act or

adopted at the state's discretion, must ensure ``real, permanent, and

enforceable'' emissions reductions. Pennsylvania uses both VOC and

NOX emission control measures to meet the 9% reduction

required for the Post 96 ROP plan.

II. Base Year Inventory

EPA approved the 1990 base year VOC emissions inventory for

Pennsylvania's portion of the Philadelphia area on June 9, 1997 (62 FR

31343). As stated above, EPA approved the 1990 base year NOX

emissions inventory for Pennsylvania's portion of the Philadelphia area

on June 17, 1999 (64 FR 32424).

[[Page 46326]]

III. Post-1996 ROP Plans

A. Calculation of Needed Reductions

The process for the calculation of the required reductions is set

forth in EPA's guidance document entitled ``Guidance on the Post-96

Rate of Progress Plans and the Attainment Demonstration,'' January

1994. The ``target level'' of emissions represents the maximum amount

of emissions that a nonattainment area can have in the given target

year, which in this case is 1999. Section 182(c)(2)(C) of the Act

allows states to substitute NOX emission reductions that

occur after 1990 for VOC emissions in the Post-1996 Plan. EPA issued

guidance on the criteria states can use to substitute NOX

for VOC reductions on December 15, 1993, ``NOX Substitution

Guidance'' and follow-up guidance on August 5, 1994, ``Clarification of

Policy for Nitrogen Oxides (NOX) Substitution.'' The

condition for meeting the ROP requirement is that the sum of all

creditable VOC and NOX emission reductions must equal 3

percent per year averaged over the three year period 1996 to 1999, for

a total of 9 percent. If a state wishes to substitute NOX

for VOC emission reductions, then a target level of emissions

demonstrating a representative combined 9 percent emission reduction in

VOC and NOX emissions must be developed for the year 1999.

Furthermore, growth in both VOC and NOX emissions must be

offset by emission reductions. Therefore, separate emission target

levels for 1999 must be calculated for both VOC and NOX

emissions.

To calculate the target level of emissions, the required emission

reduction is subtracted from the previous milestone's target level. In

this case, the 1999 ROP VOC target level is based on the 1996 VOC

target level calculated for the 15% plan. EPA granted approval of

Pennsylvania's 15% ROP plan for the Philadelphia area on June 9, 1997

(62 FR 31343). A technical correction to that document was published on

January 6, 1998 (63 FR 415). In that plan, the PADEP calculated the 15%

ROP target level to be 494.31 tons per day (TPD).

1999 Rate of Progress (ROP) VOC and NOX Target Level

Calculation

Pennsylvania has elected to substitute NOX for VOC

emission reductions in its Post-96 ROP plan for the Philadelphia area.

In Pennsylvania's plan, growth in VOC emissions from 1996 to 1999 was

offset by VOC emission reductions achieved by 1999. Similarly, growth

in NOX emissions from 1990 to 1999 was offset by

NOX emission reductions achieved in that same time period.

Pennsylvania did not calculate separate VOC and NOX target

levels. However, EPA was able to calculate VOC and NOX

target levels using data in Pennsylvania's Post-96 ROP plan. These

calculations are shown below.

VOC:

1. 1990 ROP base year inventory = 1990 base year 732-116 = 616 TPD.

inventory minus biogenic emissions.

2. 1990 adjusted base year inventory = 1990 ROP base 616-39 = 576 TPD.

year inventory minus 1990 to 1999 Federal Motor

Vehicle Control Program (FMVCP) and Reid Vapor

Pressure (RVP) reductions.

3. Required reductions = 0.5% x 1990 adjusted base 0% x 576 = 0 TPD.

year inventory.

4. 1999 ROP target level = 1996 target minus required 494-0-6 = 488 TPD.

reduction minus fleet turnover correction.

5. Reductions needed for ROP and to offset growth 625-488 = 137 TPD.

(rounded to nearest ton) = 1999 uncontrolled emissions

minus 1999 target.

NOX:

1. 1990 ROP base year inventory (sum of all point, 440 TPD.

area, and mobile source emissions).

2. 1990 adjusted base year inventory = 1990 ROP base 440-20 = 420 TPD.

year inventory minus 1990 to 1999 FMVCP/RVP reductions.

3. Required reduction = 9% x 1990 adjusted base year 9% x 420 = 38 TPD.

inventory.

4. 1999 ROP target level = 1990 ROP base year inventory 440-38-20 = 382 TPD.

minus required reduction minus 1990 to 1999 FMVCP/RVP

reductions.

5. Reductions needed for ROP and to offset growth 455-382 = 73 TPD.

(rounded to nearest ton) = 1999 uncontrolled emissions

minus 1999 target.

B. Growth Projections (1990-1999)

States must include control measures in their Post-1996 ROP plans

to offset the emissions growth projected to occur after 1996.

Therefore, states must project their emission inventories to estimate

emissions growth between 1996 and 1999. EPA's document entitled

``Guidance on the Post-1996 Rate-of-Progress Plan and the Attainment

Demonstration'' provides guidance to states on how to calculate growth.

The projected inventories must reflect expected growth in activity, as

well as regulatory actions which will affect emission levels. EPA

guidance provides that emission projections for point sources can be

based on information obtained directly from facilities and/or permit

applications. Area and mobile source emission projections may be

developed from information from local planning agencies. In the absence

of source-specific data, credible growth factors must be developed from

accurate forecasts of economic variables and the activities associated

with the variables. Economic variables that may be used as indicators

of activity growth are: product output, value added, earnings, and

employment. Population can also serve as a surrogate indicator.

Economic data and models which provide acceptable growth factors for

emission projections include the U.S. Department of Commerce Bureau of

Economic Analysis (BEA) forecasts for states and metropolitan

statistical areas; the Economic Growth Analysis System (E-GAS), which

models economic growth and estimates corresponding increases in

emissions-producing activity; and the Emissions Preprocessor System for

urban airshed modeling, which produces spatially and temporally-

resolved emission inventories for input into urban airshed models.

Growth Factor Methodology

PADEP's Post-96 ROP plan uses growth factors from the BEA

projection factor software (BEAFAC) for point sources, most area

sources, and non-road mobile emissions sources. PADEP's Post-96 ROP

plan assumes linearity of the BEA data, and uses linear interpolation

of BEA factors from the years 1988, 1995, and 2000 to generate

estimates for 1990 and 1999. BEA data from 1973 and 1979 was excluded,

since the economic changes in Pennsylvania in those years creates a

nonlinearity in the interpolation. BEA data from 2010 and 2040 was

excluded because of PADEP's lack of confidence in its accuracy.

[[Page 46327]]

Point Source Emissions Growth Calculation

PADEP summed the emissions for each 2-digit Standard Industrial

Classification (SIC), which is industrial source category based, and

applied the growth factor to the entire emissions attributable to that

2-digit SIC grouping. For its point source inventory, Pennsylvania

matched BEA growth projections for 57 industrial categories to similar

two-digit SIC codes used in the inventory. All of the BEA growth

projections were increases except for small decreases in nine

categories. These are: metal mining, coal mining, oil and gas

extraction, tobacco products, apparel, leather and leather products,

primary metal industries, electronic and other electrical equipment,

and water transportation.

Area Source Growth Emissions Growth Calculation

With the exception of gasoline marketing, growth factors from the

BEA's projection factor software, BEAFAC, were used for area sources.

For the most part, employment and population factors were utilized.

Gasoline marketing growth is determined by growth in vehicle miles

traveled (VMT), and is calculated using MOBILE5.

Nonroad Engine Emissions Growth Calculation

Growth factors from the BEA were used for non-road mobile sources.

Section 6.5, Highway Vehicle Emissions Growth Calculation

Vehicle miles traveled (VMT) growth was projected by a travel-

demand computer model for the Philadelphia area. The MOBILE5 model was

run, and then meshed with the VMT data using Pennsylvania's Post

Processor for Air Quality (PPAQ) to determine 1999 projected highway

emissions. VMT data for 1990 and 1999 is summarized in the following

table.

Appendix V.--VMT Growth, 1990-1999

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Growth as % of 1990 VMT

County 1990 VMT (miles) 1999 VMT (miles) (percent)

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Bucks................................ 12,850,048 14,829,484 1.15

Chester.............................. 10,147,864 12,712,974 1.25

Delaware............................. 8,279,044 10,201,547 1.23

Montgomery........................... 16,839,969 19,653,334 1.17

Philadelphia......................... 16,485,464 17,352,364 1.05

Total............................ 64,602,389 74,749,703 1.16

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Summary of Projected Emissions Growth, 1990-1999 in PADEP's Post-96 ROP

Plan

The following tables summarize VOC and NOX emissions

growth, by source sector, from the PADEP's Post-96 ROP plan:

VOC Emissions Growth for the Philadelphia Area, 1990-1999

[1990 base year and 1999 projected uncontrolled emission inventories (tpd)]

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Point Area Highway Nonroad Total

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1990 Emissions........................................... 152.75 194.35 187.89 80.56 615.55

Growth................................................... 9.75 8.51 -11.03 2.07 9.30

Growth as % of 1990 Emissions............................ 6.4% 4.4% -5.9% 2.6% 1.5%

1999 Emissions........................................... 162.50 202.86 176.86 82.63 624.85

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NOX Emissions Growth for the Philadelphia Area, 1990-1999

[1990 base year and 1999 projected uncontrolled emission inventories (tpd)]

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Point Area Highway Nonroad Total

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1990 Emissions........................................... 161.90 47.12 158.32 72.20 439.54

Growth................................................... 15.59 -0.11 -1.94 2.17 15.71

Growth as % of 1990 Emissions............................ 9.6% -0.2% -1.2% 3.0% 3.6%

1999 Emissions........................................... 177.49 47.01 156.38 74.37 455.25

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EPA evaluation: The Commonwealth's growth projection methodologies

are acceptable, as listed in EPA's inventory preparation guidance and

guidance for growth factor estimation.

C. EPA's Evaluation of Control Measures

The purpose of the Post-1996 ROP plan is to demonstrate how the

State has reduced emissions 3% per year between the years 1996 and

1999, for a total 9% reduction. In general, reductions toward ROP

requirements are creditable provided the control measures occurred

after 1990 and are real, permanent, quantifiable and federally

enforceable. A short description of each of the control measures

selected by Pennsylvania follows.

Reformulated Gasoline (RFG)

This is a federally implemented control measure. Section 211(k) of

the CAA requires that, beginning January 1, 1995, only reformulated

gasoline be sold or dispensed in ozone nonattainment areas classified

as severe or worse. As a severe area, Philadelphia benefits from the

emission reductions from this program. PADEP claims a VOC emission

[[Page 46328]]

reduction of 22.41 TPD and a NOX reduction of 0.43 TPD from

this measure.

Fully creditable reductions: 22.41 TPD VOC and 0.43 TPD

NOX.

Enhanced I/M

On 1/28/98, EPA granted conditional interim approval of

Pennsylvania's enhanced I/M program. PADEP made submittals to satisfy

all conditions of this rulemaking. On June 8, 1999, EPA lifted the

interim nature of its conditional interim approval (64 FR 30399). On

June 17, 1999 (64 FR 32411), EPA converted its conditional approval of

Pennsylvania's enhanced I/M program to full approval. The emission

reductions from the fully approved enhanced I/M are fully creditable.

Fully creditable reductions: 59.28 TPD VOC, and 32.29 TPD

NOX.

Federal Motor Vehicle Control Program (FMVCP) and Tier I Vehicle

Emission Standard (Tier I)

This is a federally implemented control measure. The MOBILE5 model

automatically applies FMVCP controls (unless that feature is disabled).

PADEP claims a VOC emission reduction of 6.92 TPD and a NOX

reduction of 14.84 TPD from this measure.

Fully creditable reductions: 6.92 TPD VOC, and 14.84 TPD

NOX.

Stage II Vapor Recovery

EPA approved Pennsylvania's Stage II vapor recovery regulation on

December 13, 1995 (60 FR 63938). The federally approved Stage II

regulation requires the use of vapor recovery nozzles at gas stations

through a phased compliance schedule but the last group of stations

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

to comply with this requirement by no later than February 8, 1994 in

all moderate and above ozone nonattainment areas. PADEP claimed a 17.71

TPD VOC emission reduction from the implementation of this regulation.

Fully creditable reductions: 17.71 TPD VOC.

OTC NOX MOU (Phase II)

The 1990 Clean Air Act amendments created the northeast Ozone

Transport Region (OTR) in recognition that ozone is a regional problem

that requires a regional planning approach. The OTR includes the States

of Maine, New Hampshire, Massachusetts, Vermont, Connecticut, Rhode

Island, New York, New Jersey, Pennsylvania, Maryland, Delaware,

Washington DC, and portions of northern Virginia. The Ozone Transport

Commission (OTC) is a planning body composed of representatives of each

of the OTR states. On September 27 1994, the OTC initiated a major

agreement to cut emissions of NOX from power plants and

other large stationary NOX sources. The agreement put forth

was a Memorandum of Understanding (MOU) that committed states in the

OTR to reduce NOX emissions in three phases. The first phase

of NOX reductions outlined in the MOU was NOX

RACT level of control. The second and third phases are more stringent

than RACT. Pennsylvania was a signatory to the OTC NOX MOU,

and has adopted and implemented Phase II controls.

Pennsylvania adopted its OTC NOX MOU rules, Title 25

Pennsylvania Code Chapters 121 and Chapter 123--Nitrogen Oxides

Allowance Requirements, on September 16, 1997. The requirements became

effective on November 1, 1997. PADEP submitted the rules to EPA as a

SIP revision on December 29, 1997. On January 26, 1999, EPA proposed

approval of PADEP's NOX MOU rule (64 FR 3906). The emission

reductions claimed by Pennsylvania for this control measure are not

fully approvable as creditable toward ROP requirements until EPA takes

final action to fully approve Pennsylvania's NOX MOU

regulation into the SIP. PADEP's claims a 27.37 TPD emission reduction

from this measure.

Reductions: 27.37 TPD NOX.

(not fully approvable as creditable until EPA fully approves PADEP's

NOX MOU rule)

RACT

PADEP claims a 10 TPD VOC emission reduction and a 6 TPD

NOX emission reduction from RACT controls. In severe ozone

nonattainment areas, the Act requires RACT controls on all VOC sources

for which EPA has issued a control techniques guideline (CTG). RACT

controls are also required on all non-CTG sources of VOC and on

NOX sources with the potential to emit (PTE) 25 tons per

year (TPY) or greater. In the Philadelphia area, by definition, VOC and

NOX sources with PTE 25 PTE or more are defined as ``major

sources.'' Compliance was required by May 31, 1995.

On February 4, 1994, PADEP submitted a revision to its SIP for the

control of VOC and NOX emissions from major sources

(Pennsylvania Chapters 129.91 through 129.95). This submittal was

amended with a revision on May 3, 1994 correcting and clarifying the

presumptive NOX RACT requirements under Chapter 129.93. The

SIP revision consists of new regulations which require sources that

have the PTE 25TPY or more of VOC (not already subject to RACT under a

category specific SIP regulation developed pursuant to a CTG) or

NOX in the Philadelphia area to comply with RACT by May 31,

1995. While the new regulations contain specific provisions requiring

major non-CTG VOC and major NOX sources to implement RACT,

the regulations do not contain specific emission limitations in the

form of a specified overall percentage emission reduction requirement

or other numerical emission standards. Instead, the regulations contain

technology-based or operational ``presumptive RACT emission

limitations'' for certain major NOX sources. For other major

NOX sources, and all subject major non-CTG VOC sources, the

submittal contains a ``generic'' RACT provision. A generic RACT

regulation is one that does not impose specific up-front emission

limitations but instead allows for future case-by-case determinations.

This regulation allows PADEP to make case-by-case RACT determinations

that are then submitted to EPA as revisions to the Pennsylvania SIP.

PADEP takes credit for emission reductions from source-specific

controls on a number of VOC and NOX sources in the

Philadelphia area.

The following table lists the specifc sources that PADEP takes

credit for in the Post-96 ROP plan, and the emission reductions claimed

for each source. Note that the NOX sources listed are not

covered by the OTC NOX MOU.

Emission Reductions Claimed for VOC and NOX

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

VOC Reductions

Source Claimed (TPD)

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

Fasson--Division of Avery............................ 6.54

PECO Energy--Cromby.................................. 0.03

ICI/NP............................................... 0.27

Norwood Industries................................... 2.12

[[Page 46329]]

Philadelphia Baking.................................. 0.12

Nabisco.............................................. 0.33

Continental Baking................................... 0.41

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Total VOC Reduction Claimed...................... 9.82

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

Source NOX Reductions

Claimed (TPD)

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

PECO Energy--Cromby.................................. 3.62

Transcontinental Gas Pipeline........................ 0.01

Sun Refining & Marketing............................. 1.99

Philadelphia Baking.................................. 0.01

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Total NOX Reduction Claimed...................... 5.63

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

On February 23, 1998, EPA granted conditional limited approval to

PADEP's generic VOC and NOX RACT regulations. The conditions

required to be met in order for EPA to convert its conditional limited

approval to limited approval were that Pennsylvania submit all case-by-

case RACTs to EPA as SIP revisions within one year of the effective

date of EPA's final conditional approval (i.e. by April 22, 1999), and

certify either (1) that there are no additional sources to which the

RACT requirement is applicable, or (2) demonstrate that the emissions

remaining from the sources subject to the RACT requirements are de

minimis. On April 22, 1999, Pennsylvania submitted a demonstration to

meet the conditions set forth in this notice. Once EPA approves all of

PADEP's case-by-case RACT determinations as SIP revisions, EPA will

convert its limited approval of Pennsylvania's generic RACT rule to a

full approval.

The reductions from RACT are not fully approvable as creditable in

the Post 96 ROP plan for the Philadelphia area until EPA approves as

SIP revisions those specific case-by-case RACT determinations for which

credit is claimed. While Pennsylvania has submitted all of the RACTs

listed above, only one of these has been SIP approved. Because the RACT

for ICI/NP is the only one approved into the SIP, it is the only source

with a fully approvable creditable emission reduction, 0.27 TPY VOC.

Emission reductions from the additional sources will become fully

approvable as creditable when EPA approves the source-specific SIP

revisions. Therefore, the remaining emission reductions that PADEP has

claimed (9.82 minus the 0.27 from ICI/NP = 9.55 TPD VOC, and 5.63 TPD

NOX) are not fully approvable as creditable until EPA fully

approves each source-specific SIP revision.

PADEP needs 3.42 TPD of the 6.54 TPD VOC emission reduction it

claims from one source, Fasson (located in Bucks County) to meet the

1999 ROP target. The credits from the VOC and NOX RACT

sources in PADEP's plan would provide a buffer to ensure that the ROP

target is met.

Fully creditable reductions: 0.27 TPD VOC

Additional reductions: 9.55 TPD VOC and 5.63 TPD NOX

(Not fully approvable as creditable until EPA fully approves the

case-by-case SIP revisions)

Autobody Refinishing Coatings

According to EPA's guidance and proposed national autobody

refinishing rule, PADEP claimed a 37% reduction from this source

category. PADEP used projected 1999 uncontrolled VOC emissions of 18.34

TPD to calculate a 6 TPD emission reduction.

This is a federally implemented control measure. EPA's final rule,

``National Volatile Organic Compound Emission Standards for Automobile

Refinish Coatings,'' was published on September 11, 1998 (63 FR 48806).

This rule will result in a 36% VOC reduction for areas such as

Philadelphia that are currently unregulated for this source category.

EPA reviewed the area source emissions data and projections

included in the plan, and determined that the 1999 projected

uncontrolled VOC emissions for autobody refinish coatings is 17.176

TPD.

Fully creditable reductions: 36% x 17.176 = 6.18 TPD VOC

Consumer Products

PADEP claims a 20% reduction from this control measure, and states

that the 1999 uncontrolled VOC emissions from this source category are

33 TPD. This is a federally implemented control measure. The final rule

``National Volatile Organic Compound Emission Standards for Consumer

Products,'' (63 FR 48819), published on September 11, 1998, results in

a 20% reduction. EPA reviewed the area source emissions data and

projections that PADEP included in appendix IV, Area Source Emissions

Data and concluded that PA used the overall consumer & commercial

products emission factor, 6.3 pounds per capita annually, to calculate

the 1999 projected emissions for this source category. EPA's consumer

products rule only covers a subset of that source category, and the

proper emission factor is 3.9 pounds per capita annually, as specified

in the June 22, 1995 memorandum from John S. Seitz, Director of EPA's

Office of Air Quality Planning and Standards, entitled ``Regulatory

Schedule for Consumer and Commercial Products under section 183(e) of

the Clean Air Act.'' Therefore, PADEP overestimated the creditable

emission reduction by a factor of 1.62 (6.3 3.9 = 1.62).

The 1999 projected uncontrolled emission from the entire consumer

products source category in the Philadelphia area is 33.205 TPD.

Therefore, the 1999 uncontrolled emissions from the sources covered by

the consumer products rule is 20.497 TPD (33.205 1.62).

Fully creditable reductions: 20% x 20.497 = 4.10 TPD VOC

Architectural and Industrial Coatings

PADEP claims a 15% reduction from this measure, and states that the

uncontrolled emissions from this category are approximately 40 TPD, and

the resulting emission reduction is 7 TPD. This is a federally

implemented control measure. EPA's final rule, ``National Volatile

Organic Compound

[[Page 46330]]

Emission Standards for Architectural Coatings,'' (63 FR 48848),

published on September 11, 1998, results in a 20% reduction. EPA

reviewed the area source emissions data and projections that PADEP

included in appendix IV, Area Source Emissions Data, to determine the

1999 projected uncontrolled VOC emissions for architectural coatings.

Uncontrolled emissions from architectural surface coatings, high

performance industrial coatings, and other special purpose coatings

total 36.325.

Fully creditable reductions: 20% x 36.325 = 7.27 TPD VOC

Treatment, Storage, and Disposal Facilities (TSDFs)

In the plan, PADEP states that the federally-implemented Phase II

TSDF standards require 93% control of emissions from this source

category. PADEP states that, using an 80% rule effectiveness factor,

emission reductions from this control measure equal about 10 TPD. This

is a federally implemented control measure. EPA reviewed the area

source emissions data and projections that PADEP included in appendix

IV, Area Source Emissions Data, to determine the 1999 projected

uncontrolled VOC emissions for TSDFs to be 12.689 TPD.

EPA promulgated Phase I of the TSDF national rule on June 21, 1990

(55 FR 25454). In a May 6, 1993 policy memo, ``Credit Toward the 15

Percent Rate-of-Progress Reductions from Federal Measures,'' from G.T.

Helms, Chief, Ozone/Carbon Monoxide Programs Branch and Susan Wyatt,

Chief, Chemicals and Petroleum Branch, to Air Branch Chiefs, Regions I-

X, EPA specified that the maximum reduction limit that states could

claim for Phase II of the national TSDF regulation is 93% of total TSDF

emissions. The Phase II TSDF rule was published in the Federal Register

on December 6, 1994 (59 FR 62896) and subsequently amended on February

9, 1996 (61 FR 4903) and November 25, 1996 (61 FR 59932). Final

compliance with the Phase II requirements is required by no later than

December 8, 1997. Using an 80% rule effectiveness factor, creditable

emission reductions from this control measure equal 9.44 TPD.

Fully creditable reductions: 93% x 80% x 12.698 = 9.44 TPD VOC.

D. EPA Evaluation of Rate of Progress Plan

EPA's review of this Pennsylvania submittal indicates that the

Commonwealth has adopted, submitted and implemented adequate measures

to achieve the Act's required 9 percent reduction in ozone precursor

emissions between 1996 and 1999 and offset VOC growth with VOC

reductions in that same period. As shown in the table below, the

emission reductions from the measures in PADEP's Post-96 plan will meet

the 9% requirement. When all measures are fully SIP approved, they will

result in fully creditable emission reductions of 9% for NOX

and 0% for VOC.

Emission Reductions in the Philadelphia Post-96 ROP Plan (TPD)

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

VOC NOX

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

Control Measures Not yet creditable Not yet

Fully creditable * Fully creditable creditable*

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

RFG............................. 22.41 .................. 0.43 ..................

Enhanced I/M.................... 59.28 .................. 32.29

FMVCP/Tier 1.................... 6.92 .................. 14.84

Stage II........................ 17.71

NOX MOU......................... .................. .................. .................. 27.37

RACT & Source-Specific VOC 0.27 9.55 .................. 5.63

Controls.......................

AIM............................. 7.27

Autobody Refinishing............ 6.18

Consumer Products............... 4.10

TSDF Controls................... 9.44

Subtotals....................... 133.58 9.55 47.56 33.00

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

Total Reductions............ 143.13

80.56

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

Required Reductions......... 137

73

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

* These emission reductions will not be fully approvable as creditable until EPA fully approves the related

control measures into the Pennsylvania SIP.

EPA cannot propose full approval of the plan until all underlying

measures from which emission reductions are credited are fully approved

into Pennsylvania's SIP. Therefore, EPA cannot fully approve the Post

96 ROP plan until the OTC NOX MOU rule and the source

specific SIP revision for Fasson in Bucks County are fully approved.

EPA is proposing limited approval of the Post-1996 ROP plan for the

Pennsylvania portion of the Philadelphia area on the basis that it

strengthens the SIP. The limited approval would remain until EPA fully

approves the NOX MOU rule, and the source-specific SIP

revision for Fasson needed to meet the target.

EPA is soliciting public comments on the issues discussed in this

document or on other relevant matters. These comments will be

considered before taking final action. Interested parties may

participate in the Federal rulemaking procedure by submitting written

comments to the EPA Regional office listed in the Addresses section of

this document.

Proposed Action

EPA is proposing limited approval of the Post-96 ROP plan for the

Pennsylvania portion of the Philadelphia severe ozone nonattainment

area, submitted by the Commonwealth of Pennsylvania on July 31, 1998.

Administrative Requirements

A. Executive Orders 12866

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

regulatory action from review under E.O. 12866, entitled ``Regulatory

Planning and Review.''

B. Executive Order 12875

Under E.O. 12875, 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

[[Page 46331]]

the funds necessary to pay the direct compliance costs incurred by

those governments. If EPA complies by consulting, E.O. 12875 requires

EPA to provide to the Office of Management and Budget a description of

the extent of EPA's prior consultation with representatives of affected

state, local, and tribal governments, the nature of their concerns,

copies of written communications from the governments, and a statement

supporting the need to issue the regulation. In addition, E.O. 12875

requires 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 rule does not create a mandate on state, local or tribal

governments. The rule does not impose any enforceable duties on these

entities. Accordingly, the requirements of section 1(a) of E.O. 12875

do not apply to this rule.

C. Executive Order 13045

Executive Order 13045, entitled ``Protection of Children from

Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,

1997), applies to any rule that the EPA determines (1) is

``economically significant,'' as defined under Executive Order 12866,

and (2) the environmental health or safety risk addressed by the rule

has 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 proposed rule is not subject to Executive Order 13045 because

it is not an economically significant regulatory action as defined by

Executive Order 12866, and it does not address an environmental health

or safety risk that would have a disproportionate effect on children.

D. Executive Order 13084

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

required by statute, that significantly affects 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. If EPA complies by

consulting, E.O. 13084 requires EPA to provide to the Office of

Management and Budget, in a separately identified section of the

preamble to the rule, a description of the extent of 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, Executive Order 13084

requires EPA to develop an effective process permitting elected 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

The Regulatory Flexibility Act (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

sections 110 and 301, and subchapter I, part D of the CAA do not create

any new requirements but simply approve requirements that the State is

already imposing. Therefore, because the Federal SIP approval does not

impose any new requirements, I certify that it does not have a

significant impact on any small entities affected. Moreover, due to the

nature of the Federal-State relationship under the Clean Air Act,

preparation of a flexibility analysis would constitute Federal inquiry

into the economic reasonableness of state action. The Clean Air Act

forbids EPA to base its actions concerning SIPs on such grounds. Union

Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C.

7410(a)(2).

F. 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

annual 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

this proposed approval action, proposing limited approval of

Pennsylvania's July 31, 1998 Post-96 ROP plan for its portion of the

Philadelphia severe ozone nonattainment area, 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 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.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons,

Nitrogen dioxide, Ozone.

Dated: August 12, 1999.

W. Michael McCabe,

Regional Administrator, Region III.

[FR Doc. 99-22047 Filed 8-24-99; 8:45 am]

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