95-5445. Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of Michigan  

  • [Federal Register Volume 60, Number 44 (Tuesday, March 7, 1995)]
    [Rules and Regulations]
    [Pages 12459-12478]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-5445]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Parts 52 and 81
    
    [MI21-04-6753, MI18-03-6754; FRL-5160-6]
    
    
    Approval and Promulgation of Implementation Plans and Designation 
    of Areas for Air Quality Planning Purposes; State of Michigan
    
    AGENCY: United States Environmental Protection Agency (USEPA).
    
    ACTION: Final rule.
    
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    SUMMARY: On July 21, 1994 the USEPA published a proposal to approve the 
    1990 base year emission inventory, basic vehicle inspection and 
    maintenance (I/M) and the redesignation to attainment and associated 
    section 175A maintenance plan for the ozone National Ambient Air 
    Quality Standard (NAAQS) for the seven-county Detroit-Ann Arbor, 
    Michigan area as a State Implementation Plan (SIP) revisions. The 30-
    day comment period concluded on August 22, 1994. A total of 72 comment 
    letters were received in response to the July 21, 1994 proposal, 62 
    favorable, 9 adverse and 1 request to extend the comment period. On 
    September 8, 1994, however, the USEPA published a correction document 
    and 15-day extension of the comment period as a result of the 
    inadvertent omission of a number of lines from the July 21, 1994 
    proposal. The reopened comment period concluded on September 23, 1994. 
    An additional 25 comment letters were received in response to the 
    September 8, 1994, extension of public comment period regarding the 
    July 21, 1994 proposal approval, 2 favorable, 22 adverse and 1 
    informational. This final rule summarizes all comments and USEPA's 
    responses, and finalizes the approval of the 1990 base year emission 
    inventory, and basic I/M, and the redesignation to attainment for ozone 
    and associated section 175A maintenance plan for the Detroit-Ann Arbor 
    area.
    
    EFFECTIVE DATE: This action will be effective April 6, 1995.
    
    ADDRESSES: Copies of the SIP revisions, public comments and USEPA's 
    responses are available for inspection at the following address: (It is 
    recommended that you telephone Jacqueline Nwia at (312) 886-6081 before 
    visiting the Region 5 Office.) United States Environmental Protection 
    Agency, Region 5, Air and Radiation Division, 77 West Jackson 
    Boulevard, Chicago, Illinois 60604.
    
    FOR FURTHER INFORMATION CONTACT: Jacqueline Nwia, Regulation 
    Development Section (AT-18J), Air Toxics and Radiation Branch, Air and 
    Radiation Division, United States Environmental Protection Agency, 
    Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, Telephone 
    Number (312) 886-6081.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background Information
    
        The 1990 base year emission inventory, basic I/M, and redesignation 
    [[Page 12460]] request and maintenance plan discussed in this rule were 
    submitted on January 5, 1993 (with revisions on November 15, 1993), 
    November 15, 1994 and November 12, 1994, respectively, by the Michigan 
    Department of Natural Resources (MDNR) for the Detroit-Ann Arbor 
    moderate ozone nonattainment area. The Detroit-Ann Arbor area consists 
    of Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne 
    counties. On July 21, 1994, (59 FR 37190) the USEPA published a 
    proposal to approve the 1990 base year emission inventory, basic I/M, 
    and redesignation request and associated section 175A maintenance plan 
    as revisions to the Michigan ozone SIP. On September 8, 1994 (59 FR 
    46479 and 46380), the USEPA published a correction notice and 15-day 
    extension of the comment period as a result of the inadvertent omission 
    of a number of lines from the July 21, 1994 proposal. Adverse comments 
    were received regarding the proposed rule. The final rule contained in 
    this Federal Register addresses the comments which were received during 
    the public comment periods and announces USEPA's final action regarding 
    the 1990 base year emission inventory, basic I/M, and redesignation and 
    section 175A maintenance plan for the Detroit-Ann Arbor area. A more 
    detailed discussion in response to each comment is contained in the 
    USEPA's Technical Support Document (TSD), dated February 3, 1995 from 
    Jacqueline Nwia to the Docket, entitled ``Response to Comments on the 
    July 21, 1994 Proposal to Approve the 1990 Base Year Emission 
    Inventory, Basic I/M, and Redesignation to Attainment for Ozone and 
    Section 175A Maintenance Plan for the Detroit-Ann Arbor Area,'' which 
    is available from the Region 5 office listed above.
    
    II. Public Comments and USEPA Responses and Final Rulemaking Actions
    
    Table of Contents
    
    A. 1990 Base Year Emission Inventory
        I. Public Comments and USEPA Response
        II. Final Rulemaking Action
    B. Inspection and Maintenance
        I. Public Comments and USEPA Response
        II. Final Rulemaking Action
        C. Redesignation
        I. Public Comments and USEPA Response
        II. Final Rulemaking Action
    
    A. 1990 Base Year Emission Inventory
    
    I. Public Comments and USEPA Responses
        The following discussion summarizes and responds to the comments 
    received regarding the 1990 base year emission inventory.
    
    Comment
    
        Two commentors note an error in the 1990 base year emission 
    inventory portion of the proposed action. One of these commentors notes 
    that the total tons of volatile organic compounds (VOC) per summer 
    weekday emitted from non-road mobile sources is listed as 531.03 for 
    this source category. The correct number submitted by MDNR is 111.67.
    
    USEPA Response
    
        The USEPA acknowledges this error. The VOC emissions per summer 
    weekday from the non-road mobile source category in the July 21, 1994 
    proposal (p. 37192) will be changed to reflect the number submitted by 
    MDNR, 111.67. In addition, the total tons of VOC per summer weekday in 
    the same table will be changed to 971.92. The Daily VOC Emissions table 
    is changed and appears as follows:
    
                                Daily VOC Emissions From All Sources--Tons/Summer Weekday                           
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                                                                    On-road      Non-road                           
                                           Point     Area source     mobile       mobile      Biogenic      Total   
         Ozone nonattainment area          source     emissions      source       source     emissions    emissions 
                                         emissions                 emissions    emmissions                          
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    Detroit/Ann Arbor.................       167.08       252.27       327.00       111.67       113.90       971.92
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    II. Final Rulemaking Action
        The USEPA approves the ozone emission inventory SIP submitted to 
    the USEPA for the Detroit-Ann Arbor area as meeting the section 
    182(a)(1) requirements of the Clean Air Act (Act) for emission 
    inventories.
    
    B. Inspection and Maintenance
    
    I. Public Comments and USEPA Responses
        The following discussion summarizes and responds to the comments 
    received regarding Inspection and Maintenance.
    
    Comment
    
        One commentor suggests that the USEPA's redesignation decision 
    should be explicitly conditioned upon the requirement for the Michigan 
    Department of Transportation to implement enhanced I/M 240 as a 
    contingency measure. At a bare minimum, the maintenance plan should 
    include the BAR 90 emissions test with visual anti-tampering check for 
    all cars newer than 1975 with no Medicaid waiver.
    
    USEPA Response
    
        The Act requires that nonattainment areas classified as moderate 
    adopt and submit as a SIP revision provisions for implementation of a 
    basic I/M program. See sections 182(a)(2)(B)(i) and (b)(4). Since the 
    Detroit-Ann Arbor area was classified as moderate nonattainment for 
    ozone, the Act requires an I/M program that meets the basic I/M 
    performance standard. The Detroit-Ann Arbor area has implemented an I/M 
    program since 1986, as required by the pre-1990 Act. The area, 
    therefore, must provide for upgrades to the current I/M program to the 
    level of a basic I/M program. Under recent revisions to the national I/
    M rule (January 5, 1995, 60 FR 1735), however, areas that have 
    requested redesignation to attainment, and are otherwise eligible to 
    obtain approval of the request, may defer adoption and implementation 
    of otherwise applicable requirements established in the originally 
    promulgated I/M rule1. The State was required to submit and has 
    submitted, as a contingency measure within the section 175A maintenance 
    plan a commitment, legislative authority and an enforceable schedule 
    for adoption and implementation of a basic I/M program. The contingency 
    plan is described in detail in a subsequent USEPA response within this 
    Federal Register.
    
        \1\I/M rule was promulgated on November 5, 1992, 57 FR 52950.
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    Comment
    
        One commentor requests that the USEPA delay approval of the 
    redesignation request until Michigan's Joint Committee on 
    Administrative Rules completes its review of the I/M legislation and 
    the USEPA confirms that the essential elements listed at 59 FR 
    [[Page 12461]] 37193-94 regarding basic I/M, upon which redesignation 
    approval relies, are still in place.
    
    USEPA Response
    
        The USEPA cannot delay approval of the redesignation, since 
    Michigan has submitted the elements required and necessary to establish 
    basic I/M as a contingency measure in the section 175A maintenance plan 
    as provided for by the revisions to the national I/M rule. As presented 
    in the July 21, 1994 proposal, the State submittal contains the 
    essential elements listed at 59 FR 37193-94. Basic I/M, if implemented 
    as a contingency measure, may be implemented in Wayne, Oakland, and 
    Macomb counties and expanded to Washtenaw county.
    
    Comment
    
        One commentor is concerned that expanding upgraded2 basic      
     I/M to Washtenaw, St. Clair, Livingston and Monroe counties is subject 
    to potential legislative veto after the need for contingency measures 
    is triggered. The commentor states that because Michigan's legislature 
    can unilaterally rescind the provisions to extend basic
    I/M programs to Washtenaw, St. Clair, Livingston and Monroe counties 
    (1993 Mich. Pub. Act 232 Sec. 8(2)(c) & (d)), Michigan's provisions do 
    not appear to meet even the relaxed standards proposed in the June 28, 
    1994 revisions to the national I/M rule, 59 FR 33237, as being fully 
    self-implementing and enforceable under all circumstances. Therefore, 
    Michigan's basic I/M SIP is not complete or approvable. Consequently, 
    the Detroit-Ann Arbor area is not eligible for redesignation.
    
        \2\The Act requires States to make changes to improve existing 
    I/M programs or implement new ones. Section 182(a)(2)(B)(i) requires 
    States to submit SIP revisions for any ozone nonattainment area 
    which has been classified as marginal, pursuant to section 181(a) of 
    the Act, with an existing I/M program that was part of a SIP prior 
    to enactment of the Act or any area that was required by the Act, as 
    amended in 1977, to have an I/M program, to bring the program up to 
    the level required in pre-1990 USEPA guidance, or to what had been 
    committed to previously in the SIP, whichever was more stringent. 
    Areas classified as moderate and worse were also subject to this 
    requirement to improve programs to this level. The Detroit-Ann Arbor 
    area, a moderate ozone nonattainment area, had in effect an I/M 
    program pursuant to the 1977 Act. The area, therefore, was required 
    to improve its existing I/M program to meet the basic I/M program 
    requirements.
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    USEPA Response
    
        Sections 8(2)(c) and (d) of Michigan's Enrolled House Bill 5016 
    only apply if the redesignation request is disapproved and basic I/M 
    must be implemented in the entire 7-county Detroit-Ann Arbor area 
    (Wayne, Oakland, Macomb, Washtenaw, St. Clair, Livingston, and Monroe 
    counties). The 45-day notification period in section 8(2)(d) of 
    Michigan Enrolled House Bill 5016 is only applicable, as described in 
    section 8(2)(c), if the redesignation is not approved and the State 
    must implement basic I/M to meet the section 182(b) requirements. 
    Clearly, the 45-day notification period is not applicable for 
    implementation of I/M as a contingency measure. It is important to 
    acknowledge that only notification to the legislature is required, and 
    that no affirmative action on the part of the legislature is necessary 
    to allow the program to be implemented. In addition, States at any time 
    are able to amend existing rules and/or regulations for any required 
    program as a matter of State law. This ability is not a reason for 
    disapproval of any State submittal because such unilateral State action 
    would not affect the Federal enforceability of the version of the State 
    law or regulation the USEPA had approved into the SIP. The I/M 
    legislation for the Detroit-Ann Arbor area satisfies the requirements 
    of the revisions to the national I/M rule.
        Sections 8(2)(a) and (b) of the legislation apply if the area is 
    redesignated, and basic I/M is implemented as a contingency measure or 
    as a condition for approval of the redesignation request. In 
    particular, section 8(2)(a) provides that basic I/M may be implemented 
    as a contingency measure in Wayne, Oakland and Macomb county and also 
    expanded to Washtenaw county, if necessary. Together, the basic I/M 
    submittal and redesignation request and the section 175A maintenance 
    plan for the Detroit-Ann Arbor area (1) provide for the adoption of 
    implementing regulations for a basic I/M program, meeting the national 
    basic I/M requirements without further legislation, (2) provide for the 
    implementation of basic I/M upgrades as a contingency measure in the 
    maintenance plan upon redesignation, (3) contain, as a contingency 
    measure within the maintenance plan, a commitment by the Governor to 
    adopt regulations to implement I/M in response to a specified 
    triggering event, and (4) contain a commitment including an enforceable 
    schedule for adoption and implementation of a basic I/M program, as 
    provided in the revisions to the national I/M rule. The revisions to 
    the I/M rule do not, however, require that the basic I/M SIP be fully 
    self-implementing. Consequently, contrary to the commentor's statement, 
    the basic I/M SIP is complete and approvable and the Detroit-Ann Arbor 
    area is eligible for redesignation.
    
    Comment
    
        One commentor states that the USEPA cannot redesignate the Detroit-
    Ann Arbor area because Michigan's basic       I/M SIP submission does 
    not even satisfy the requirements of the USEPA's unlawful policy. In 
    particular, the commentor argues that since the legislature could at 
    any time amend the legislative authority, the USEPA should require the 
    State to submit adopted regulations with a basic I/M SIP. The commentor 
    further argues that Michigan did not submit a sufficiently specific and 
    enforceable schedule for adoption and implementation of a basic I/M 
    program upon a specified triggering event. The commentor also notes 
    that if the State has not adopted the regulations necessary to 
    implement the contingency measure, such measure will not correct any 
    violation promptly as required by the Act and USEPA guidance.
    
    USEPA Response
    
        The commentor states that the 45-day notice provided in the 
    legislation prior to implementation of a required I/M program ensures 
    that the legislature can repeal the legislative authority before it 
    takes effect. This commentor's interpretation of Michigan's Enrolled 
    House Bill 5016 is incorrect. The 45-day notification period in section 
    8(2)(d) of Michigan Enrolled House Bill 5016 is only applicable under 
    the scenario described in section 8(2)(c), if the redesignation is not 
    approved and the State must implement basic I/M to meet the section 
    182(b) requirements. Thus, as discussed earlier, the 45-day 
    notification period is not applicable for implementation of I/M as a 
    contingency measure.
        The USEPA further responds that Michigan has submitted as part of 
    the 175A maintenance plan an enforceable schedule for adoption and 
    implementation of basic I/M as a contingency measure. Section 6.8.3 of 
    the State's submittal indicates that adoption and implementation 
    schedules for contingency measures would be consistent with those 
    specified in the Act and any corresponding regulations and submitted as 
    part of the technical urban airshed modeling (UAM) analysis. The I/M 
    redesignation rule provides the relevant adoption and implementation 
    schedules. If the Governor chooses I/M to be implemented as the 
    contingency measure, under the schedule of the I/M redesignation rule 
    Michigan incorporated by reference, the State would need to adopt I/M 
    within one year of the trigger date. Michigan's submittal defined the 
    trigger date as the [[Page 12462]] date that the State certifies to the 
    USEPA that the air quality data are quality assured, which will be no 
    later than 30 days after an ambient air quality violation is monitored. 
    Pursuant to the I/M redesignation rule, the trigger date is the date no 
    later than when the USEPA notifies the State of a violation. As long as 
    the trigger date as defined by Michigan occurs prior to the date the 
    USEPA notifies the State of a violation, Michigan's timeframe for 
    implementing I/M as a contingency measure is consistent with the I/M 
    redesignation rule. Because it often takes several months for the USEPA 
    to obtain the data and confirm a violation, it is unlikely that the 
    trigger date as defined by Michigan will be later than that defined in 
    the I/M redesignation rule. However, if the USEPA does notify the State 
    of a violation prior to the State certifying to the USEPA that the 
    ambient air quality data assure a violation, then the trigger date will 
    be the date of the USEPA notification to the State, consistent with the 
    I/M redesignation rule. The basic I/M program, if selected as a 
    contingency measure, must be implemented within 24 months of the 
    trigger date, or 12 months after the adoption of implementing 
    regulations. This schedule is consistent with the I/M redesignation 
    rule, which is the applicable regulation for purposes of establishing 
    an adoption and implementation schedule. This schedule is specific and 
    enforceable since it will be incorporated into the SIP as part of the 
    section 175A maintenance plan. The section 175A(d) requirement for 
    contingency provisions is that they must promptly correct a violation 
    of the NAAQS. The USEPA believes that the schedule provided for 
    implementation of a basic I/M program within the Detroit-Ann Arbor 
    area's section 175A maintenance plan is sufficient to address this 
    requirement in light of the logistics of adopting and implementing a 
    basic I/M program.
        The commentor also indicated that the Michigan submittal does not 
    satisfy the USEPA's requirement of a ``specified and enforceable 
    schedule'' because it does not include a timetable of steps necessary 
    to get the required regulations adopted. As discussed above, because 
    Michigan incorporated by reference the timetable of the I/M 
    redesignation rule, adoption of I/M regulations is specified to occur 
    within one year of the trigger date. The only other interim step 
    necessary to get the required regulations adopted is the proposal of 
    draft regulations. Although the Michigan submittal did not specify a 
    date for the proposal, the State's commitment to a date for 
    promulgation of the final rule implies that the draft regulations will 
    be proposed on a date no later than that necessary to provide for 
    notice and comment and a hearing on the draft regulations. Because 
    Michigan's submittal specified a timetable to get the final regulations 
    adopted, the Michigan submittal has met the requirement to provide a 
    specified and enforceable schedule.
        A commentor also suggested that a determination that actual 
    emissions from mobile sources actually exceed those predicted in the 
    emission inventories should also be included as a triggering event. 
    This is neither a requirement of the Act nor of USEPA policy, although 
    it has been suggested as a possible triggering event in guidance, and 
    States are encouraged to use it.
    
    Comment
    
        One commentor challenges the adequacy of Michigan's demonstration 
    that its I/M program did not contribute to Southeast Michigan's 
    attainment, and urged reconsideration of the proposed elimination of 
    the program after 1995.
    
    USEPA Response
    
        Michigan did not claim that the current I/M program did not 
    contribute to the Detroit-Ann Arbor's attainment, nor did it claim 
    credit for the emission reductions achieved as a result of the program 
    within the attainment demonstration. Furthermore, neither the State nor 
    the USEPA has proposed or suggested that the current I/M program be 
    eliminated after 1995. In fact, the State must continue to implement 
    its current I/M program as well as all other SIP control measures that 
    were contained in the SIP prior to the submittal of a complete 
    redesignation request. The September Shapiro3 memorandum reviews 
    and reinforces the USEPA's policy on SIP relaxations, particularly in 
    the context of redesignation. The memorandum notes that the USEPA's 
    general policy is that a State may not relax the adopted and 
    implemented SIP for an area upon the area's redesignation to attainment 
    unless an appropriate demonstration, based on computer modeling, is 
    approved by the USEPA. Existing control strategies must continue to be 
    implemented in order to maintain the standard. Although section 175A 
    recognizes that SIP measures may be moved to the contingency plan upon 
    redesignation, such a SIP revision may be approved only if the State 
    can adequately demonstrate that such action will not interfere with 
    maintenance of the standard. A demonstration for an area redesignated 
    to attainment for ozone would entail submittal of an attainment 
    modeling demonstration with the USEPA's current Guideline on Air 
    Quality Models, showing that the control measure is not needed to 
    maintain the ozone NAAQS. Also, see memorandum from Gerald A. Emison, 
    April 6, 1987, entitled Ozone Redesignation Policy.
    
        \3\September 17, 1993 memorandum from Michael H. Shapiro, 
    entitled SIP Requirements for Areas Submitting Requests for 
    Redesignation to Attainment of the Ozone and Carbon Monoxide NAAQS 
    on or after November 15, 1992.
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    Comment
    
        One commentor states that the USEPA's policy of approving a basic 
    I/M SIP revision that does not include adopted regulations is unlawful.
    
    USEPA Response
    
        The USEPA's specific response to these comments is published in the 
    USEPA's final rulemaking on the revisions to the national I/M rule. See 
    January 5, 1995, 60 FR 1735. In that rulemaking, the commentor also 
    submitted similar remarks and the USEPA's responses to those comments 
    appear in the docket for that rulemaking. It is appropriate for the 
    USEPA to rely on the final I/M rule revisions in taking today's final 
    action, and this rulemaking is not the appropriate forum in which to 
    challenge the validity of the I/M rule revisions.
    II. Final Rulemaking Action
        The USEPA approves the basic I/M program submitted to the USEPA for 
    the Detroit-Ann Arbor area as meeting the revised national I/M rule 
    (January 5, 1995, 60 FR 1735) for areas redesignated from nonattainment 
    to attainment, consequently satisfying the requirements of section 
    182(a)(2)(B)(i) of the Act.
    
    C. Redesignation
    
    I. Public Comments and USEPA Responses
        The following discussion summarizes and responds to the comments 
    received regarding the redesignation of the Detroit-Ann Arbor area to 
    attainment for ozone.
    
    Comment
    
        One commentor notes that if an expeditious review and approval of 
    MDNR's request had occurred prior to the 1994 ozone season, then any 
    ozone violation thereafter would have prompted the implementation of a 
    contingency measure from the maintenance plan to correct the air 
    quality problem. [[Page 12463]] 
    
    USEPA Response
    
        The Act authorizes the USEPA up to 18 months from submittal to act 
    on a State's request to redesignate. See section 107(d)(3)(D). The 
    process for redesignating areas to attainment is a complex one which is 
    designed not only to identify areas which currently have clean air, but 
    also to assure that clean air will be maintained in the future. There 
    are many statutory requirements which must be satisfied before the 
    redesignation request can be processed, including review and approval 
    of all revisions to the SIP for programs whose deadlines came due prior 
    to submittal of the redesignation request to the USEPA. See September 
    Calcagni4 memorandum and September Shapiro. Before the USEPA could 
    finally redesignate the area to attainment, all remaining items had to 
    be finally approved, including: (1) the State regulations for 
    Reasonable Available Control Technology (RACT) for VOC,5 (2) the 
    section 182(f) oxides of nitrogen (NOX) RACT exemption petition, 
    and 3) revisions to the national motor vehicle I/M rule. The USEPA 
    could not redesignate the Detroit-Ann Arbor area until these actions 
    were finalized. Because all these actions were finalized, the Federal 
    action on the redesignation can be completed. Furthermore, if a 
    violation had occurred during the pendency of the USEPA's review of the 
    ozone redesignation request, the USEPA could not approve the request 
    since the area would not have remained in attainment. As a consequence, 
    further control measures would have been required under the Act.
    
        \4\September 4, 1992 memorandum from John Calcagni, entitled 
    Procedures for Processing Requests to Redesignate Areas to 
    Attainment.
        \5\The VOC RACT rules were approved in a final rulemaking 
    published on September 7, 1994 in the Federal Register (59 FR 46213 
    and 46182).
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        In any case, the commentor's concern is moot, since no violations 
    of the ozone NAAQS occurred during the 1994 ozone season.
    
    Comment
    
        One commentor suggests that redesignation requests should be Table 
    I decisions to ensure national consistency.
    
    USEPA Response
    
        An October 4, 1993 memorandum from Michael H. Shapiro, Acting 
    Assistant Administrator for Air and Radiation, revised the SIP tables 
    initially published in the Federal Register on January 19, 1989 (54 FR 
    2214). The USEPA revised these tables in conjunction with the Office of 
    Management and Budget (OMB). The revisions classified all 
    redesignation, except those for total suspended particulate, as Table 2 
    actions. These actions require the Regional Administrator's decisions 
    and concurrence, but provide a 40-day opportunity for Headquarters 
    review before concurrence by the Regional Administrator. The 40-day 
    Headquarters review is intended to function as a check for national 
    consistency and the USEPA believes that this system provides adequate 
    assurances of consistency.
    
    Comment
    
        One commentor notes that the USEPA's proposed redesignation relies 
    on data from 1993 which was not included in Michigan's November 12, 
    1993 request, and was not subject to public comment. Further, there is 
    an inconsistency between the years offered by Michigan as a basis for 
    redesignation 1990-92 and the years selected by the USEPA as the basis 
    for considering and actually proposing the redesignation (1991-1993). 
    Therefore, Michigan's redesignation request was not ``complete'' on 
    November 12, 1993.
    
    USEPA Response
    
        As stated in the proposed rulemaking, Michigan submitted ambient 
    data for 1990-1992 in its November 12, 1993 submission, but did not 
    submit 1993 ozone data because it was not completely quality-assured at 
    the time the request was being developed. Under the guidance of the 
    USEPA, the State submitted the 3 most recent consecutive years of 
    complete air monitoring data (1990-1992), with the understanding that 
    shortly thereafter, the 1993 ozone season data would be available in 
    AIRS for the USEPA to review. The 1993 ozone data was considered by the 
    USEPA and was subject to public comment as a result of the July 21, 
    1994 proposed rulemaking. Regardless of which years of data are used, 
    1990-1992 or 1991-1993, Michigan has demonstrated attainment of the 
    ozone NAAQS in the Detroit-Ann Arbor area by providing monitoring data 
    with no violations. Completeness of a SIP submittal is based on the 
    criteria established in 40 CFR part 51, appendix V. Using these, the 
    USEPA found the November 12, 1993 submittal complete in a letter to 
    Michigan dated January 7, 1994. The use of 1993 ozone season data that 
    was not completely quality-assured at the time of the November 12, 1993 
    submission does not alter the conclusion that the submission, which the 
    USEPA found complete was based on 3 consecutive years of air monitoring 
    data.
    
    Comment
    
        One commentator alleges that USEPA's notice of proposed approval of 
    the redesignation is a product of undue haste since the action was 
    incomplete and failed to give adequate notice of plans for verification 
    of continued attainment. The action skips portions of paragraph (b) 
    Demonstration of Maintenance and paragraph (C) Verification of 
    Continued Attainment on pages 37198-37199. In addition, three 
    paragraphs on page 37198 duplicate text on page 37197.
    
    USEPA Response
    
        The omission of paragraph (B) and (C) and duplicated text is 
    acknowledged. Unfortunately, the Office of Federal Register, 
    inadvertently excluded a number of lines from these two sections of the 
    action. For this reason, the comment period on the July 21, 1994, 
    redesignation was reopened on September 8, 1994, (59 FR 46479 and 
    46380) for 15 days in order to provide the public an opportunity to 
    appropriately comment on it.
    
    Comment
    
        One commentor requested additional time for reviewing and providing 
    comments on the proposed redesignation due to insufficient time to 
    comment on such a complex proposal.
    
    USEPA Response
    
        As discussed above, the comment period was extended for the 
    redesignation and section 175A maintenance plan in order to give the 
    public sufficient time to review and to submit comments. The correction 
    document and extension of public comment period action were published 
    on September 8, 1994. The USEPA does not believe that any additional 
    extension of time is necessary as an adequate comment period has 
    already been provided.
    
    Comment
    
        One commentor requested a formal USEPA public hearing on the 
    redesignation.
    
    USEPA Response
    
        Under the Act, States can submit proposed implementation plans (and 
    revisions) to the USEPA for approval only after they have afforded 
    interested parties ``reasonable notice and public hearing * * *.'' See 
    Section 110(a)(1) and (a)(2). The State held a public hearing on the 
    proposed redesignation to attainment for ozone and revision to 
    [[Page 12464]] the Michigan SIP, i.e., maintenance plan, on October 22, 
    1993. There are no provisions, however, requiring the USEPA to hold its 
    own hearings. The USEPA is required to provide the opportunity for 
    public comment. The USEPA announced opportunities on July 21, 1994 and 
    September 8, 1994 for the public to submit comments. The USEPA believes 
    those opportunities represent a more than ample opportunity for public 
    input and comment on this redesignation.
    
    Comment
    
        One commentor states that the air quality in the area has been poor 
    and has gotten worse in the past 10 years. Offensive odors are apparent 
    when it is slightly overcast or during the night when a local 
    incinerator is burning.
    
    USEPA Response
    
        This redesignation pertains to solely to ozone, and would not 
    affect offensive odors from an incinerator, regardless of whether these 
    odors are evident during slightly overcast skies or at night. 
    Redesignating the area to attainment for ozone would neither solve nor 
    contribute to the problem. The incinerator must continue to operate 
    existing control equipment in compliance with its own applicable 
    permits, rules and regulations. Ambient monitoring data from 1990 
    through 1994 demonstrates that the area is attaining the ozone NAAQS. 
    This evidences that the air quality has improved at least since the 
    period 1987-1989, the years of air quality data which were used to 
    designate the area nonattainment for ozone.
    
    Comment
    
        A number of commentors urge the USEPA to reconsider the NAAQS for 
    ground level ozone. One commentor notes that Canada's ozone standard' 
    is 82 parts per billion (ppb) while the United States' (U.S.) is 125 
    ppb.6 This disparity in limits continues to be debated in the U.S. 
    courts with the American Lung Association and others, who contend that 
    the U.S. must lower its limit to 82 ppb, or lower, for health based 
    reasons. Another commentor states that the current ozone NAAQS is not 
    protective of the public health, and should be made more stringent to 
    comply with the Congressional mandate to protect public health with an 
    ``adequate margin of safety.''
    
        \6\This is equivalent to 0.125 parts per million (ppm). This is 
    the reference used by the commentor, presumably, to illustrate the 
    difference between the Canadian objective and U.S. standard.
    ---------------------------------------------------------------------------
    
    USEPA Response
    
        The USEPA is currently in the process of reevaluating the ozone 
    NAAQS and expects to make a final decision in mid-1997. Until any 
    change is made, however, the USEPA is bound to implement the provisions 
    of the Act as they relate to the current standard, including those 
    relating to designations and redesignation.
    
    Comment
    
        One commentor notes that MDNR has taken the position that the 
    measured concentration must exceed 125 ppb before a legally actionable 
    exceedance that contributes to a 3 year running average on the number 
    of days with exceedances is triggered. As a result, MDNR has not 
    included as excursions days with maximum numbers that actually do 
    exceed the published standard of 0.12 ppm.
    
    USEPA Response
    
        Published guidance (Guideline for the Interpretation of Ozone Air 
    Quality Standards, January 1979, EPA-450/4-79-003), which is part of 
    the ozone standard by reference in 40 CFR part 50, appendix H, notes 
    that the stated level of the standard is determined by defining the 
    number of significant figures to be used in comparison with the 
    standard. For example, a standard level of 0.12 ppm means that 
    measurements are to be rounded to two decimal places (0.005 rounds up), 
    and therefore, 0.125 ppm is the smallest three-decimal concentration 
    value in excess of the level of the standard. Therefore, MDNR is 
    following USEPA national guidance.
    
    Comment
    
        The commentor objects to the USEPA's proposed disapproval of the 
    redesignation request if a monitored violation of the ozone NAAQS 
    occurs prior to final USEPA action on the redesignation. The commentor 
    notes further that since the area has reached attainment of the NAAQS 
    and has requested redesignation, a requirement to implement contingency 
    measures to correct the problem would be sound policy in the event of a 
    violation during 1994.
    
    USEPA Response
    
        Section 107(d)(3)(E) of the Act establishes five criteria which 
    must be satisfied in order for the USEPA to redesignate an area from 
    nonattainment to attainment. One of these criteria is that the 
    Administrator determine that the area has attained the NAAQS. See 
    section 107(d)(3)(E)(i). This requirement clearly prohibits the 
    Administrator from redesignating areas that have not attained the 
    NAAQS. If a violation had occurred prior to the USEPA's final action, 
    the Detroit-Ann Arbor area would no longer have been in attainment and 
    the USEPA could not redesignate the area to attainment. Furthermore, 
    only a final rulemaking action can change an area's designation under 
    40 CFR part 81. Despite the July 21, 1994 proposal, the area must 
    continue to meet this criterion until final rulemaking is published. As 
    a result, the USEPA must consider air quality data that is collected 
    until the date of final rulemaking and revision of the area's 
    nonattainment status under 40 CFR part 81.
        In addition, the USEPA's September Calcagni memorandum, page 5, 
    states that Regions should advise States of the practical planning 
    consequences if the USEPA disapproves the redesignation request or if 
    the request is invalidated because of violations recorded during 
    USEPA's review. This policy has been followed in disapproving the 
    Richmond, Virginia redesignation, which was disapproved due to 
    violations of the ozone NAAQS occurring prior to final action on a 
    proposed approval of the redesignation (May 3, 1994, 59 FR 22757).
        With respect to a requirement to implement contingency measures in 
    the event of a violation prior to final approval of a redesignation, 
    the USEPA notes that the Detroit-Ann Arbor area, like any other 
    nonattainment area, is subject to the contingency measure requirements 
    of section 172(c)(9) until the area is redesignated to attainment.
        In any case, the commentor's concern is moot, since no violations 
    of the ozone NAAQS occurred during the 1994 ozone season.
    
    Comment
    
        Several commentors request that the Detroit-Ann Arbor area be 
    denied redesignation to attainment until it is clearly shown, using 
    1994 data, that the area is in attainment. Other commentors noted that 
    although the Detroit-Ann Arbor area experienced only one ozone 
    exceedance from 1991 to 1993 or 1990 to 1992, it experienced at least 
    three ozone exceedances in 1994 alone. Commentors provided specific 
    monitored ozone values recorded at Detroit-Ann Arbor area monitors 
    during the 1994 ozone season. The following ozone concentrations from 
    Detroit-Ann Arbor area monitors were provided: 133 ppb at the Algonac 
    monitor, 142 ppb at the New Haven monitor, 145 ppb at the Warren 
    monitor, 178 ppb at the Port Huron monitor, and 127 ppb at the Oak Park 
    monitor. [[Page 12465]] 
    
    USEPA Response
    
        As discussed above, the USEPA could not approve the redesignation 
    if a violation occurred during the USEPA's review of the request. 
    Consequently, while the July 21, 1994 action proposed to approve the 
    redesignation, it also proposed, in the alternative, to disapprove the 
    redesignation if violations of the ozone NAAQS occur before the USEPA 
    took final action on the redesignation.
        Title 40 CFR part 50.9 establishes the ozone NAAQS, measured 
    according to appendix D, as 0.12 ppm (235 micrograms per cubic meter 
    (ug/m3)). The standard is attained when the expected number of days per 
    calendar year with maximum hourly average concentrations above 0.12 ppm 
    (235 ug/m3) is equal to or less than 1 as determined by 40 CFR part 50 
    appendix H. Further discussion of these procedures and associated 
    examples are contained in the document Guideline for Interpretation of 
    Ozone Air Quality Standards, January 1979, EPA-450/4-79-003. Simply, 
    the number of exceedances at a monitoring site would be recorded for 
    each calendar year and then averaged over the past 3 calendar years to 
    determine if this average is less than or equal to 1. The net result is 
    that each monitor in an area is allowed to record 3.0 expected 
    exceedances in a 3 year period. More than 3.0 expected exceedances in a 
    3-year period would constitute a violation of the ozone NAAQS. As 
    explained in the July 21, 1994 proposed rulemaking (59 FR 37190), the 
    Detroit-Ann Arbor area has attained the ozone NAAQS during the 1990-
    1992 and 1991-1993 periods. The 1994 ozone season has concluded and 
    while there have been some recorded ozone exceedances in the Detroit-
    Ann Arbor area, they do not (in consideration with 1992 and 1993 data) 
    constitute a violation of the ozone standard. Consequently, the 
    Detroit-Ann Arbor area continues to attain the ozone standard at this 
    time. The USEPA has considered all air quality data collected prior to 
    final rulemaking on the redesignation request.
    
    Comment
    
        One commentor questions whether actual attainment and maintenance 
    of the standard was achieved and suggests that paper demonstrations of 
    attainment and maintenance should not be given more weight in 
    decisionmaking when compared to actual adverse air quality monitoring 
    data showing unhealthy concentrations of ozone, or data that is 
    marginally so.
    
    USEPA Response
    
        The USEPA notes that it has not given ``paper'' (or more properly, 
    analytical) demonstrations of attainment more weight than ambient 
    monitoring data. As discussed above, the ambient air quality monitoring 
    data for the Detroit-Ann Arbor area demonstrates attainment of the 
    ozone NAAQS over the time periods of 1990-1992, 1991-1993, and 1992-
    1994. Furthermore, continued maintenance of the ozone NAAQS will be 
    determined by continued ambient monitoring.
    
    Comment
    
        One commentor asserted that the USEPA cannot redesignate the 
    Detroit-Ann Arbor area because the USEPA must determine the relevant 
    applicable requirements at the time of approval of an area's 
    redesignation request and the State must satisfy them. According to the 
    commentor, section 175A(c) of the Act requires that all requirements of 
    subpart D remain in force until an area is redesignated. The commentor 
    argued that the USEPA's interpretation of section 107(d)(3)(E), 
    pursuant to which the USEPA determines whether an area seeking 
    redesignation has met the Act requirements applicable prior to or at 
    the time of the submission of a redesignation request, is inconsistent 
    with section 175A(c). Specifically, the commentor argued that the Act 
    prohibits the redesignation of the Detroit-Ann Arbor area because the 
    area has not submitted by November 15, 1993, an approvable SIP revision 
    providing for 15 percent VOC reductions, nor satisfied the basic I/M 
    and New Source Review (NSR) requirements that came due prior to the 
    submission of the redesignation request. Moreover, the commentor 
    claimed that the USEPA's interpretation encourages States to delay 
    implementation of the Act since delay in implementing requirements that 
    come due after the submission of a redesignation request would not 
    affect the approvability of the request.
    
    USEPA Response
    
        The USEPA has interpreted section 107(d)(3)(E) to mean that the 
    section 110 and part D provisions that are required to be fully 
    approved in order for a redesignation to be approved are those which 
    came due prior to or at the time of the submittal of a complete 
    redesignation request. At the same time, however, the USEPA has 
    maintained that States continue to be statutorily obligated to meet any 
    SIP requirements that come due after the submission of the 
    redesignation request before the USEPA takes final action to 
    redesignate an area. As a consequence, the USEPA has also followed a 
    policy of issuing findings of failure to submit if a State that has 
    submitted a redesignation request fails to comply with a SIP submittal 
    requirement that comes due after the submission of a redesignation 
    request. See September and October Calcagni7 memorandums, 
    September Shapiro memorandum, and the memorandum dated January 7, 1994, 
    from John S. Seitz to Regional Air Division Directors, entitled 
    ``Procedures for SIP Elements Due November 15, 1993.'' The USEPA 
    believes that its approach is both reasonable and harmonizes the 
    pertinent provisions of the Act in a workable manner that is consistent 
    with the language and intent of the Act. Moreover, the USEPA believes 
    that the interpretation advocated by the commentor would be unworkable 
    and make it virtually impossible for areas to be redesignated to 
    attainment.
    
        \7\October 28, 1992 memorandum from John Calcagni entitled SIP 
    Actions Submitted in Response to Clean Air Act Deadlines.
    ---------------------------------------------------------------------------
    
        The pertinent provisions of the Act are as follows. Section 
    107(d)(3)(E)(v) of the Act provides that a State must have met ``all 
    requirements applicable to the area under section 110 and part D'' in 
    order to be redesignated. Furthermore, section 107(d)(3)(E)(ii) 
    provides that the USEPA must have fully approved the SIP for the area 
    seeking redesignation. Finally, section 175A(c) provides that the 
    requirements of part D remain in force and effect for an area until 
    such time as it is redesignated.
        The USEPA believes that it is both logical and reasonable to 
    interpret section 107(d)(3)(E)(ii) and (v) so that, for purposes of the 
    evaluation of a redesignation request, the only requirements that are 
    ``applicable'' and for which the SIP must be fully approved before the 
    USEPA may approve the redesignation request are those that came due 
    prior to or at the time of the submission of a complete redesignation 
    request.
        The first reason that it is reasonable to determine the 
    approvability of a redesignation request on the basis of compliance 
    with only Act requirements applicable prior to or at the time of the 
    submission of the request is that holding the State to a continuing 
    obligation to comply with subsequent requirements coming due after the 
    submission of the request for purposes of the redesignation would make 
    it impossible in many instances for the USEPA to act on redesignation 
    requests in accordance with the 18-month deadline mandated 
    [[Page 12466]] by Congress for such actions in section 107(d)(3)(C). 
    This is because each Act requirement coming due during the pendency of 
    the USEPA's review of a redesignation request carries with it a 
    necessary implication that the USEPA must also fully approve the SIP 
    submission made to satisfy that requirements in order for the area to 
    be redesignated. Otherwise, the area would fail to satisfy the 
    redesignation requirement of section 107(d)(3)(E)(ii) to have a fully-
    approved SIP. As Congress limited the USEPA to an 18-month period to 
    take final action on complete redesignation requests, Congress could 
    not have intended that, for those requests to be approved, States make 
    additional SIP submissions that would require the USEPA to undertake 
    action that would necessarily delay action on the redesignation request 
    beyond the 18-month time frame. (The delay would occur due to the time 
    needed for the USEPA to take action regarding the determinations as to 
    whether to find those SIP submissions complete and to approve or 
    disapprove them. Congress accorded the USEPA up to 18 months from the 
    submission of a SIP revision to take such action. See section 110(k).)
        Another reason that the USEPA's interpretation is reasonable is 
    that the fundamental premise for a request to redesignate a 
    nonattainment area to attainment is that the area has attained the 
    relevant NAAQS. Thus, an area for which a redesignation request has 
    been submitted should have already attained the NAAQS as a result of 
    the satisfaction of Act requirements that came due prior to the 
    submission of the request, and it is reasonable to view the only 
    requirements applicable for purposes of evaluating the redesignation 
    request as those that had already come due since those requirements 
    were the ones that presumably led to attainment of the NAAQS--which is 
    the primary purpose of title I of the Act. To require that a State 
    continue to satisfy requirements coming due during the pendency of the 
    USEPA's review of a complete redesignation request in order to have the 
    redesignation approved would require the State to do more than was 
    needed to attain the NAAQS.
        The USEPA's interpretation by no means eliminates the obligation of 
    States to comply with requirements coming due after the submission of a 
    redesignation request. Rather, it simply means that areas may be 
    redesignated even though the State may not have complied with those 
    requirements. As the USEPA's policy makes clear, in accordance with the 
    requirements of section 175A(c), the statutory obligation of the States 
    to fulfill those requirements remains in effect until the USEPA takes 
    final action to redesignate an area to attainment. Thus, the USEPA's 
    policy is to issue findings of failure to submit if a State fails to 
    submit a SIP revision to fulfill such a requirement, thereby triggering 
    a clock that will result in the imposition of mandatory sanctions, 
    under section 179 of the Act, 18 months after the issuance of the 
    finding unless the USEPA approves the redesignation request prior to 
    the expiration of the sanctions clock.
        Thus, if a State chooses not to submit a complete and approvable 
    SIP revision to comply with a requirement that comes due after the 
    submission of a redesignation request, it runs the risk it will be 
    sanctioned in the event that the USEPA does not approve the 
    redesignation request. For example, in the case of the Detroit-Ann 
    Arbor area, on January 21, 1994, the USEPA started the 18-month 
    sanctions clock for the 15 percent reduction plan required by section 
    182(b)(1) to be submitted by November 15, 1993 after the State had 
    submitted its complete redesignation request for the Detroit-Ann Arbor 
    area, by finding the area's 15 percent plan incomplete. If the USEPA 
    were not now approving the redesignation request, the sanctions clock 
    would continue to run and the State would continue to be subject to the 
    risk that sanctions would be imposed. Notably, a State seeking 
    redesignation for an area is in the same position as to the initiation 
    of sanctions clocks for the failure to make a submittal as any other 
    State. Thus, if Michigan had not submitted a redesignation request for 
    the Detroit-Ann Arbor area and nevertheless had failed to submit a 
    complete 15 percent plan by November 15, 1993, it would also have been 
    subject to a finding of failure to submit and the consequent 
    commencement of a sanctions clock.
        For this reason, the USEPA disagrees with the comment's contention 
    that the USEPA's interpretation regarding the requirements applicable 
    for purposes of evaluating redesignation requests encourages States to 
    delay implementation of the Act. States seeking redesignation for areas 
    are subject to sanctions for failure to submit SIP revisions in 
    accordance with the Act's requirements in the same way that States not 
    seeking redesignation are. To the extent that the USEPA's 
    interpretation results in States not adopting measures they might 
    otherwise have had to, such a result is a consequence of the only 
    workable interpretation of the provisions of section 107 concerning 
    applicable requirements and that result does not justify rejecting that 
    interpretation. This is particularly so since the only areas that 
    benefit from this interpretation are those that have attained the 
    ambient air quality standards and have demonstrated that they will 
    continue to maintain them in the future.
        Thus, the USEPA believes it may approve the Detroit-Ann Arbor 
    redesignation request notwithstanding the lack of a fully approved 15 
    percent plan. Such action is consistent with the USEPA's national 
    policy and is permissible under the Act. (The commentor's contentions 
    regarding the basic I/M plans and NSR review program are dealt with as 
    part of the responses to other comments on those programs elsewhere in 
    this document.)
    
    Comment
    
        One commentor stated that the requirement of both general and 
    transportation conformity is an important element of Michigan's 
    attainment SIP and that the USEPA's notice has not addressed conformity 
    in the context of the redesignation. Adverse consequences will stem 
    from failure to continue to require conformity analyses and measures. 
    Another commentor states that redesignation does not excuse the State 
    from submitting a conformity SIP revision for the Detroit-Ann Arbor 
    area or from including a motor vehicle emission budget for NOX in 
    the area's maintenance plan. The commentor further states that the 
    NOX waiver available under section 182(f), has no connection with 
    the conformity requirements for transportation plans and programs 
    contained in section 176(c)(2)(A) and 176(c)(1)(B).
    
    USEPA Response
    
        The July 21, 1994 proposal (59 FR 37190) did state that the 
    November 24, 1993 (59 FR 62188) transportation and November 30, 1993 
    (59 FR 63214) general conformity rules require States to adopt 
    transportation and general conformity provisions in the SIP for areas 
    designated nonattainment or subject to a maintenance plan approved 
    under section 175A of the Act. The proposal further explained that, 
    although conformity is applicable in these areas, since the deadline 
    for submittal had not come due for these rules at the time Michigan 
    submitted a redesignation request, the approval of the redesignation is 
    not contingent on these submittals to comply with section 
    107(d)(3)(E)(v). The Detroit-Ann Arbor area must comply with the 
    section 176 conformity regulations as required by the conformity rules 
    and the Conformity General Preamble (June 17, 1994, 59 FR 
    [[Page 12467]] 31238)8. According to these rules, conformity 
    applies to nonattainment areas as well as maintenance areas. Once 
    redesignated, the Detroit-Ann Arbor area will be a maintenance area 
    which will be required to conduct emission analyses to determine that 
    the VOC and NOX emissions remain below the motor vehicle emission 
    budget established in the maintenance plan. Transportation and general 
    conformity apply to maintenance areas and therefore, the Detroit-Ann 
    Arbor area must comply with these rules. The Conformity General 
    Preamble to the conformity regulations further clarifies this issue, 
    particularly as it pertains to areas requesting and obtaining a section 
    182(f) NOX exemption. According to the conformity rules and 
    preamble, the Detroit-Ann Arbor area's conformity test will be to 
    remain within the VOC and NOX budgets established in the section 
    175A maintenance plan. Michigan has established a motor vehicle 
    emission budget for NOX in the area's maintenance plan.
    
        \8\On November 18, 1994 and November 29, 1994, Michigan 
    submitted SIP revisions to comply with the Transportation and 
    General conformity rules.
    ---------------------------------------------------------------------------
    
        The commentor's suggestion that the section 182(f) exemption has no 
    connection to the conformity requirements for transportation plans and 
    programs contained in section 176(c)(2)(A) and 176(c)(1)(B) was made in 
    response to the August 10, 1994 proposal to approve the section 182(f) 
    NOX exemption for the Detroit-Ann Arbor area. The USEPA's response 
    is, therefore, articulated in the final rulemaking approving the 
    section 182(f) NOX exemption petition for the Detroit-Ann Arbor 
    area published elsewhere in this Federal Register.
    
    Comment
    
        One commentor states that areas are requesting exemptions from the 
    NOX control measures based on incomplete modeling studies (i.e. 
    Lake Michigan and Southeast Michigan Ozone Studies) which do not 
    accurately predict the relative contribution of mobile source emissions 
    because the mobile source emissions inventory understates its 
    contribution to ozone production. Furthermore, given the uncertainty of 
    mobile source NOX contributions to ozone and the inaccuracy of 
    mobile source inventories, it is inappropriate to remove from the SIP 
    any NOX or VOC conformity analysis.
    
    USEPA Response
    
        Exemption from the section 182(f) NOX requirements is provided 
    for in sections 182(f)(1)(a) and 182(f)(3) of the Act. Michigan 
    submitted such an exemption request on November 12, 1993 for the 
    Detroit-Ann Arbor area based on 3 consecutive years of clean air 
    quality monitoring data, not on a modeling study or analysis. In 
    addition, approval of an exemption based on monitoring data will be 
    contingent on the area's maintenance of the ozone NAAQS. As noted 
    previously, a section 182(f) NOX exemption will not exempt areas 
    from compliance with the conformity regulations. The USEPA refers the 
    commentor to the final rulemaking approving the section 182(f) NOX 
    exemption petition for the Detroit-Ann Arbor area published elsewhere 
    in this Federal Register.
    
    Comment
    
        One commentor notes that there is no reasonable or adequate basis 
    for eliminating Michigan's existing NSR program from the current SIP. 
    Another commentor states that the USEPA cannot redesignate the Detroit-
    Ann Arbor area because Michigan has not met the NSR requirements under 
    section 182(b)(5).
    
    USEPA Response
    
        The USEPA believes that the Detroit-Ann Arbor area may be 
    redesignated to attainment notwithstanding the lack of a fully-approved 
    NSR program meeting the requirements of the 1990 Act amendments and the 
    absence of such an NSR program from the contingency plan. This view, 
    while a departure from past policy, has been set forth by the USEPA as 
    its new policy in a 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 USEPA believes that its decision not to insist on a fully-
    approved NSR program as a pre-requisite to redesignation is justifiable 
    as an exercise of the Agency's general 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). Under Alabama Power Co. 
    v. Costle, the USEPA has the authority to establish de minimis 
    exceptions to statutory requirements where the application of the 
    statutory requirements would be of trivial or no value environmentally.
        In this context, the issue presented is whether the USEPA has the 
    authority to establish an exception to the requirements of section 
    107(d)(3)(E) that the USEPA have fully-approved a SIP meeting all of 
    the requirements applicable to the area under section 110 and part D of 
    title I of the Act. Plainly, the NSR provisions of section 110 and part 
    D are requirements that were applicable to the Michigan area seeking 
    redesignation at the time of the submission of the request for 
    redesignation. Thus, on its face, section 107(d)(3)(E) would seem to 
    require that the State have submitted and the USEPA have fully-approved 
    a part D NSR program meeting the requirements of the Act before the 
    areas could be redesignated to attainment.
        Under the USEPA's de minimis authority, however, it may establish 
    an exception to an otherwise plain statutory requirement if its 
    fulfillment would be of little or no environmental value. In this 
    context, it is necessary to determine what would be achieved by 
    insisting that there be a fully-approved part D NSR program in place 
    prior to the redesignation of the Detroit-Ann Arbor area. For the 
    following reasons, the USEPA believes that requiring the adoption and 
    full-approval of a part D NSR program prior to redesignation would not 
    be of significant environmental value in this case.
        Michigan has demonstrated that maintenance of the ozone NAAQS will 
    occur even if the emission reductions expected to result from the part 
    D NSR program do not occur. The emission projections made by Michigan 
    to demonstrate maintenance of the NAAQS considered growth in point 
    source emissions (along with growth for other source categories) and 
    were premised on the assumption that the Prevention of Significant 
    Deterioration (PSD) program, rather than the part D NSR, would be in 
    effect, during the maintenance period. Under NSR, significant point 
    source emissions growth would not occur. Michigan assumed that NSR 
    would not apply after redesignation to attainment, and therefore, 
    assumed source growth factors based on projected growth in the economy 
    and in the area's population. (It should be noted that the growth 
    factors assumed may be overestimates under PSD, which would restrain 
    source growth through the application of best available control 
    techniques.) Thus, contrary to the assertion of the commentor, Michigan 
    has demonstrated that there is no need to retain the part D NSR as an 
    operative program in the SIP during the maintenance period in order to 
    provide for continued maintenance of the NAAQS. (If this demonstration 
    had not been made, NSR would have had to have been retained in the SIP 
    as an operative program since it would have been needed to maintain the 
    ozone standard.) [[Page 12468]] 
        The other purpose that requiring the full-approval of a part D NSR 
    program might serve would be to ensure that NSR would become a 
    contingency provision in the maintenance plan required for these areas 
    by sections 107(d)(3)(E)(iv) and 175A(d). These provisions require 
    that, for an area to be redesignated to attainment, it must receive 
    full approval of a maintenance plan containing ``such contingency 
    provisions as the Administrator deems necessary to assure that the 
    State will promptly correct any violation of the standard which occurs 
    after the redesignation of the area as an attainment area. Such 
    provisions shall include a requirement that the State will implement 
    all measures with respect to the control of the air pollutant concerned 
    which were contained in the SIP for the area before redesignation of 
    the area as an attainment area.'' Based on this language, it is 
    apparent that whether an approved NSR program must be included as a 
    contingency provision depends on whether it is a ``measure'' for the 
    control of the pertinent air pollutants.
        As the USEPA noted in the proposal regarding this redesignation 
    request, the term ``measure'' is not defined in section 175A(d) and 
    Congress utilized that term differently in different provisions of the 
    Act with respect to the PSD and NSR permitting programs. For example, 
    in section 110(a)(2)(A), Congress required that SIPs to include 
    ``enforceable emission limitations and other control measures, means, 
    or techniques* * *as may be necessary or appropriate to meet the 
    applicable requirements of the Act.'' In section 110(a)(2)(C), Congress 
    required that SIPs include ``a program to provide for the enforcement 
    of the measures described in subparagraph (A), and regulation of the 
    modification and construction of any stationary source within the areas 
    covered by the plan as necessary to assure that NAAQS are achieved, 
    including a permit program as required in parts C and D.'' (Emphasis 
    added.) If the term measures as used in section 110(a)(2) (A) and (C) 
    had been intended to include PSD and NSR there would have been no point 
    to requiring that SIPs include both measures and preconstruction review 
    under parts C and D (PSD or NSR). Unless ``measures'' referred to 
    something other than preconstruction review under parts C and D, the 
    reference to preconstruction review programs in section 110(a)(2)(C) 
    would be rendered mere surplusage. Thus, in section 110(a)(2) (A) and 
    (C), it is apparent that Congress distinguished ``measures'' from 
    preconstruction review. On the other hand, in other provisions of the 
    Act, such as section 161, Congress appeared to include PSD within the 
    scope of the term ``measures.''
        The USEPA believes that the fact that Congress used the undefined 
    term ``measure'' differently in different sections of the Act is 
    germane. This indicates that the term is susceptible to more than one 
    interpretation and that the USEPA has the discretion to interpret it in 
    a reasonable manner in the context of section 175A. Inasmuch as 
    Congress itself has used the term in a manner that excluded PSD and NSR 
    from its scope, the USEPA believes it is reasonable to interpret 
    ``measure,'' as used in section 175A(d), not to include NSR. That this 
    is a reasonable interpretation is further supported by the fact that 
    PSD, a program that is the corollary of part D NSR for attainment 
    areas, goes into effect in lieu of part D NSR.9 This distinguishes 
    NSR from other required programs under the Act, such as inspection and 
    maintenance and RACT programs, which have no corollary for attainment 
    areas. Moreover, the USEPA believes that those other required programs 
    are clearly within the scope of the term ``measure.''10
    
        \9\The U.S. EPA is not suggesting that NSR and PSD are 
    equivalent, but merely that they are the same type of program. The 
    PSD program is a requirement in attainment areas and designed to 
    allow new source permitting, yet contains adequate provisions to 
    protect the NAAQS. If any information including preconstruction 
    monitoring, indicates that an area is not continuing to meet the 
    NAAQS after redesignation to attainment, 40 CFR 51 appendix S 
    (Interpretive Offset Rule) or a 40 CFR 51.165(b) program would 
    apply. The USEPA believes that in any area that is designated or 
    redesignated as attainment under section 107, but experiences 
    violations of the NAAQS, these provisions should be interpreted as 
    requiring major new or modified sources to obtain VOC emission 
    offsets of at least a 1:1 ratio, and as presuming that 1:1 NOX 
    offsets are necessary. See October 14, 1994 memorandum from Mary 
    Nichols entitled Part D New Source Review (part D NSR) Requirements 
    for Areas Requesting Redesignation to Attainment.
        \10\The U.S. EPA also notes that in the case of the Michigan 
    area, all permits to install for major offset sources and major 
    offset modifications issued by the State in the moderate 
    nonattainment areas since November 15, 1992 have complied with the 
    1.15 to 1.0 offset ratio. In addition, permits to install cannot be 
    issued under the PSD program unless the applicant can demonstrate 
    that the increased emissions from the new or modified source will 
    not result in a violation of the NAAQS. Michigan's Rule 702, which 
    is part of the SIP, requires the installation of Best Available 
    Control Technology regardless of size or location of all new and 
    modified sources in the State. In addition, Michigan's Rule 207, 
    also approved in the SIP, requires denial of any permit to install 
    if operation of the equipment will interfere with attainment or 
    maintenance of the NAAQS.
    ---------------------------------------------------------------------------
    
        The USEPA's logic in treating part D NSR in this manner does not 
    mean that other applicable part D requirements, including those that 
    have been previously met and previously relied upon in demonstrating 
    attainment, could be eliminated without an analysis demonstrating that 
    maintenance would be protected. As noted above, Michigan has 
    demonstrated that maintenance would be protected with PSD in effect, 
    rather than part D NSR. Thus, the USEPA is not permitting part D NSR to 
    be removed without a demonstration that maintenance of the standard 
    will be achieved. Moreover, the USEPA has not amended its policy with 
    respect to the conversion of other SIP elements to contingency 
    provisions, which is that they may be converted to contingency 
    provisions only upon a showing that maintenance will be achieved 
    without them being in effect. Finally, as noted above, the USEPA 
    believes that the NSR requirement differs from other requirements, and 
    does not believe that the rationale for the NSR exception extends to 
    other required programs.
        As the USEPA has recently changed its policy, the position taken in 
    this action is consistent with the USEPA's current national policy. 
    That policy permits redesignation to proceed without otherwise required 
    NSR programs having been fully approved and converted to contingency 
    provisions provided that the area demonstrates, as has been done in 
    this case, that maintenance will be achieved with the application of 
    PSD rather than part D NSR.
    
    Comment
    
        One commentor suggests that the USEPA's rulemaking is an effort to 
    permit Michigan to avoid including the 15 percent Rate-of-Progress 
    (ROP) measures, required of moderate nonattainment areas in the SIP. It 
    is essential to have elements of the 15 percent ROP plan available as 
    contingency measure in the attainment plan. It is not clear that the 
    current rulemaking procedure will allow that to happen.
    
    USEPA Response
    
        As explained above, under the USEPA's interpretation of section 
    107, an area need not meet all section 110 and part D requirements that 
    become applicable after the submittal of a complete redesignation 
    request in order to have the request approved. Therefore, the 15 
    percent ROP plan, which was not due to be submitted until November 15, 
    1993, after the submission of the redesignation request, is not 
    required to be fully approved into the SIP before redesignating the 
    area to attainment. Similarly the section 175A contingency plan need 
    not include all measures that [[Page 12469]] would have been included 
    in the 15 percent plan since those measures were not required to be 
    included in the SIP prior to redesignation. Furthermore, some elements 
    of the incomplete 15 percent ROP plan that Michigan did submit for the 
    Detroit-Ann Arbor area are included in the maintenance plan and are 
    available as contingency measures in the maintenance plan. These 
    elements include basic I/M, Stage I expansion,11 and Stage II 
    vapor recovery. The USEPA believes that the menu of contingency 
    measures is adequate and that additional contingency measures are not 
    necessary.
    
        \11\The expanded applicability of Stage I to county boundaries 
    of each nonattainment area classified as moderate and above.
    ---------------------------------------------------------------------------
    
        As for the commentor's effort to ascribe subjective motivations to 
    the USEPA in acting on this redesignation, the USEPA believes such 
    contentions are simply irrelevant.
    
    Comment
    
        One commentor states that there can be no redesignation until 
    Michigan submits a complete and approvable 15 percent ROP plan. The 
    commentor alleges that since Michigan's application was not complete on 
    November 12, 1993, all moderate area provisions including the 15 
    percent plan must be in place to accomplish the redesignation. The 
    commentor notes that Stage II vapor recovery and an upgraded I/M 
    program should be in Michigan's SIP to assure continued maintenance of 
    the NAAQS.
    
    USEPA Response
    
        After the USEPA's review, on January 21, 1994, the redesignation 
    request was found complete on the basis of the completeness criteria 
    codified in 40 CFR part 51, appendix V. As explained above, the 
    November 12, 1993 request was based on three complete years of clean 
    data, and the consideration of subsequent air quality data does not 
    alter the conclusion that that request was complete. Thus, the November 
    12, 1993 redesignation request is complete and, in accordance with the 
    USEPA's policy on applicable requirements (described above), the 15 
    percent plan need not be submitted or approved prior to approval of the 
    redesignation.
        With respect to the commentor's assertions regarding the need for 
    Stage II vapor recovery and an upgraded I/M program to assure 
    maintenance, the USEPA notes that the State has provided an adequate 
    demonstration that maintenance will occur even in the absence of those 
    programs. The State's emissions projections underlying the maintenance 
    demonstration are discussed in the proposal at 59 FR 37197, and the 
    commentor has provided no evidence that those projections are 
    erroneous. Furthermore, the USEPA notes that Stage II vapor recovery 
    and an upgraded I/M program were not implemented in the area in the 
    period of attainment and therefore, did not contribute to attainment of 
    the ozone NAAQS. Stage II vapor recovery and basic I/M, however, are 
    control measures included as contingency measures within the 
    maintenance plan. Thus, Stage II and basic I/M may be implemented in 
    the event a violation of the ozone NAAQS occurs during the maintenance 
    period. The basic I/M program included in the contingency plan would 
    upgrade and expand the current I/M program being implemented in the 
    Detroit area. As the Detroit-Ann Arbor area has demonstrated attainment 
    and maintenance of the ozone NAAQS without implementation of Stage II 
    and an upgraded I/M program those measures may be made part of the 
    contingency plan without implementation until such time as a violation 
    of the ozone NAAQS warrants their implementation. The State, however, 
    must continue to implement all programs currently in place in the 
    Detroit-Ann Arbor area including the existing I/M program.
    
    Comment
    
        Several commentors suggested that meteorological conditions 
    observed in Michigan and Canada were not conducive to ozone formation. 
    These meteorological conditions, coupled with a general reduction of 
    emissions in the Detroit-Ann Arbor area resulting from an economic 
    downturn, resulted in the attainment claimed by the Detroit-Ann Arbor 
    area. The commentors believe that the attainment claimed by Michigan is 
    not based on real reductions of ozone precursor gases (NOX and 
    VOC).
    
    USEPA Response
    
        Section 107(d)(3)(E)(iii) requires that, for the USEPA to approve a 
    redesignation, it must determine that the improvement in air quality is 
    due to permanent and enforceable reductions in emissions. The September 
    Calcagni memorandum, at page 4, clarifies this requirement by stating 
    that ``[a]ttainment resulting from temporary reductions in emission 
    rates (e.g., reduced production or shutdown due to temporary adverse 
    economic conditions) or unusually favorable meteorology would not 
    qualify as an air quality improvement due to permanent and enforceable 
    emission reductions.'' As discussed in the July 21, 1994 Federal 
    Register notice, the State of Michigan has demonstrated that permanent 
    and enforceable emission reductions are responsible for the recent 
    improvement in air quality. This demonstration was accomplished through 
    an estimate of the reductions (from the year that was used to determine 
    the design value for designation and classification) of VOC and 
    NOX achieved through Federal measures such as the Federal Motor 
    Vehicle Control Program (FMVCP) and fuel volatility rules implemented 
    from 1988-1993, as suggested by the September Calcagni memorandum. The 
    total reductions achieved from 1988 to 1993 were 226 tons of VOC and 45 
    tons of NOX per day. These emission reductions were primarily the 
    result of the FMVCP and RVP reductions from 11.0 pounds per square inch 
    (psi) in 1988, to 9.5 in 1990 and finally, to 9.0 in 1993. The State 
    only claimed credit for emission reductions achieved as a result of 
    implementation of these federally enforceable control measures. These 
    emission reductions claimed by Michigan are conservative since they do 
    not account for emission reductions resulting from other control 
    measures and programs implemented during this time period such as the 
    current I/M program and VOC RACT. The State, therefore, adequately 
    demonstrated that the improvement in air quality is due to permanent 
    and enforceable emission reductions of 226 tons VOC and 45 tons of 
    NOX per day as a result of implementing the federally enforceable 
    FMVCP and RVP reductions.
        With respect to the issue of unusually favorable meteorology, the 
    commentors have not supplied and the USEPA is not aware of data 
    demonstrating that the meteorological conditions in the Detroit-Ann 
    Arbor area in 1990 and subsequent years were unusually favorable with 
    respect to the impact on ozone formation. The USEPA examined the 
    average meteorological parameters of maximum monthly temperatures, 
    monthly precipitation, and days with temperatures greater than 90 
    degrees Fahrenheit for the periods of April through September, 1991 
    through 1993, with the 9-year (1982-1990) averages for these 
    parameters. The 1991-1993 averages for these parameters agreed with 
    those for the 9-year averages with only minor differences. Based on 
    averaged parameters, it can be concluded that the 1991-1993 period was 
    typically conducive to ozone formation. Further, the USEPA notes that 
    the Detroit-Ann Arbor area has been in attainment for three consecutive 
    three-year periods (1990-1992, 1991- [[Page 12470]] 1993, and 1992-
    1994), and that this, along with the fact that real emission reductions 
    have occurred, indicates that attainment is not due to unusually 
    favorable, temporary meteorological conditions.
    
    Comment
    
        A few commentors noted that ``Ozone Action!'' days were declared on 
    selected bad meteorology days, with extensive media publicity asking 
    the public to reduce activities having the potential to emit ozone 
    precursors. It is entirely possible that the voluntary reduction 
    program had an effect in the summer of 1994 to reduce potential ozone 
    excursions. The existence of the voluntary program should be considered 
    in evaluating the summer 1994 data. In addition, one commentor stated 
    that this is an attempt to deny industry's responsibility to reduce 
    emissions by shifting the burden onto private households though these 
    ``Ozone Action!'' days.
    
    USEPA Response
    
        Attainment has been demonstrated for 1990-1992, and 1991-1993, and 
    an attainment level of emissions identified at which time no such 
    voluntary program was being implemented in the Detroit-Ann Arbor area. 
    Michigan has also demonstrated through emission projections that the 
    precursor emissions will remain below the attainment year levels 
    thorough the year 2005 without accounting for any emission reductions 
    that may have resulted from implementation of a voluntary program. With 
    respect to any possible impact of a voluntary emission reduction 
    program on 1994 emissions, the USEPA notes that the commentor has not 
    provided and the USEPA has no basis for attempting to assess the impact 
    of such program on emission and monitored air quality levels. Thus, the 
    USEPA has no basis for any determination regarding the impact of the 
    program, and does not believe that speculation regarding such impacts 
    provides a basis for disapproving the redesignation.
    
    Comment
    
        One commentor states that emission control programs mandated by the 
    Act cannot be converted to contingency measures, that the Act does not 
    authorize conversion of required emission reduction programs to 
    contingency measures and that section 175A(d) imposes a mandatory duty 
    on an area that is redesignated to continue the emission control 
    programs the area adopted prior to redesignation. The commentor further 
    elaborates by stating that ``the SIP implementation requirement is 
    included in the section discussing contingency provisions because 
    contingency provisions automatically become effective if an area fails 
    to implement the applicable SIP requirements. Inclusion of the 
    provision in section 175A(d) does not by any stretch of statutory 
    interpretation authorize converting a control measure that must be 
    complied with now to a contingency measure that only need be complied 
    with at some later date, if ever.'' The commentor also contended that 
    allowing the conversion of mandatory control programs to contingency 
    measures is bad policy since the public will suffer harmful exposure 
    during the time necessary to implement the program after the event 
    triggering the contingency measures occurs. According to the commentor, 
    the delay would be exacerbated due to the USEPA's failure to require 
    adopted regulations for the programs.
    
    USEPA Response
    
        The Act contains many requirements that States adopt certain 
    measures specifically for nonattainment areas. Those requirements do 
    not by their own terms continue to apply to an area after it has been 
    redesignated to attainment. Moreover, nothing in section 175A itself 
    suggests that these requirements must continue to be met in 
    redesignated areas. Section 175A(d) is specifically and clearly 
    applicable to contingency provisions and their inclusion in a section 
    175A maintenance plan. Section 175A(d) establishes that SIP revisions 
    submitted under 175A must contain contingency provisions, as may be 
    necessary, to assure that the State will promptly correct any violation 
    of the ozone NAAQS that occurs after redesignation to attainment. It 
    further requires that these contingency provisions include a 
    requirement for the State to implement all measures with respect to the 
    control of ozone that were in the nonattainment SIP before the area was 
    redesignated. This provision clearly demonstrates that section 175A(d) 
    contemplates that there may be fully adopted but unimplemented control 
    measures in the SIP prior to redesignation that will be shifted into 
    the maintenance plan as contingency measures. Nothing in section 175A 
    suggests that the measures that may be shifted into the contingency 
    plan do not include programs mandated by the Act when the area was 
    designated nonattainment. As section 175A(a) requires adoption and 
    implementation of measures to ensure maintenance, it indicates that 
    measures may not be converted to contingency provisions unless the 
    State demonstrates that the standard will be maintained in the absence 
    of the implementation of such measures.
        The USEPA disagrees with the commentor's assertion that its policy 
    regarding the conversion of emission control programs mandated by the 
    Act to contingency measures is bad policy due to delays that could 
    occur. Programs required to be adopted and submitted to the USEPA prior 
    to the submission of a redesignation request will already have been 
    adopted and may be implemented with minimal delay in the event 
    contingency measures are triggered. Such measures satisfy the 
    requirement of section 175A(d) that the contingency provisions 
    ``promptly correct any violation of the standard which occurs after 
    redesignation.''
        With respect to the commentor's specific assertions that the USEPA 
    should require upgrades to basic I/M and NSR programs to be fully 
    adopted by the State and approved by the USEPA prior to redesignation, 
    the USEPA notes first that it does not interpret the Act to require 
    Michigan to adopt the I/M upgrades fully now if it otherwise qualifies 
    for redesignation to attainment. Rather, as evidenced in the USEPA's 
    final I/M rule revisions, described above and in the proposal, Michigan 
    is required only to adopt the upgrades as a contingency measure in 
    order to meet the requirements for basic I/M in section 182(a)(2)(B)(i) 
    and (b)(4). Michigan has done that. Under its submittal, Michigan must 
    implement basic I/M 18 months from the date the Governor decides to 
    implement the program as a contingency measure and Michigan's 
    contingency plan contains other control measures which would result in 
    near term emission reductions that will be more effective towards 
    correcting a violation of the NAAQS than a NSR program, such as Stage I 
    or Stage II vapor recovery.
        The commentor also suggests that since the current ozone NAAQS is 
    not sufficiently protective of public health the USEPA should not be 
    concerned with over control. In response, as previously discussed, the 
    USEPA is currently reviewing the ozone NAAQS. Unless and until the 
    NAAQS is revised, the USEPA is to make judgements on the basis of the 
    current NAAQS, e.g., determine whether a maintenance plan assures 
    maintenance of the current ozone NAAQS.
    
    Comment
    
        One commentor noted that Stage II vapor recovery was expected to 
    account for at least 22.5 tons per day (TPD) or 17 percent of the 15 
    percent ROP plan, that mobile sources account for 50 
    [[Page 12471]] percent of air toxic emissions, and that refueling 
    automobiles is the most significant source of benzene exposure for the 
    average person. As proposed, the redesignation would finally eliminate 
    Stage II vapor recovery from the SIP. An improved I/M program was 
    expected to account for reductions of 61.6 TPD or nearly half of the 15 
    percent ROP. The commentor adds that these 15 percent ROP measures may 
    be contingency measures in the maintenance plan, rather than 
    immediately required at any point in the future. Nevertheless, any such 
    transfer of a maintenance measure in the SIP to a contingency measure, 
    to be required only if certain triggering events occurred, must be 
    accompanied by a demonstration that the SIP measures are no longer 
    necessary for maintenance. Any proposed transfer and demonstration of 
    justification of the transfer must be subject to public notice and 
    comment, as required by the Act.
    
    USEPA Response
    
        Air toxic emissions or benzene exposure are not relevant to this 
    rulemaking since it pertains to an ozone redesignation. Moreover, this 
    redesignation in no way exempts the area from the air toxics 
    requirements of section 112 or other provisions of the Act.
        Since the area was able to demonstrate maintenance through an 
    emissions projection analysis showing that future VOC and NOX 
    emissions will remain below the attainment year level of emissions (the 
    level of emissions sufficient to attain the NAAQS), the USEPA concludes 
    that currently required and future mandated control programs (e.g., 
    FMVCP) are sufficient to provide for attainment and maintenance of the 
    NAAQS. However, contingency measures in the maintenance plan are 
    required in accordance with section 175A(d). The maintenance plan for 
    the Detroit-Ann Arbor area contains contingency measures which would be 
    implemented when triggered by a violation of the ozone NAAQS. USEPA 
    guidance allows the transfer of SIP measures which came due prior to 
    submittal of a complete redesignation request to the maintenance plan 
    as contingency measures if the area demonstrates attainment without 
    implementation of these measures and therefore, are unnecessary for 
    attainment. The State has adequately demonstrated that maintenance will 
    occur in the absence of the implementation of the measures cited by the 
    commentor. Finally, the demonstration for the transfer was subject to 
    public notice and comment during Michigan's public comment period and 
    hearing, as well as the USEPA's comment period, as required by the Act.
    
    Comment
    
        One commentor notes that to be effective at restoring air quality 
    when a post-redesignation violation occurs, contingency measures must 
    include measures in the 15 percent ROP plan. In elaborating, the 
    commentor notes that a contingency plan which lacks a program for 
    enhanced I/M, Stage II and conformity is an empty box with no benefits. 
    The precedent of ``grandparenting'' in moderate areas by allowing 
    redesignation without requiring inclusion of the attainment plan's 15 
    percent plan as a contingency measure in the maintenance plan is a 
    dangerous precedent for Region 5 to set. It has the potential to result 
    in the gutting of the Act nationwide by a seemingly innocuous 
    rulemaking at the Regional level.
        It is unclear that the verification and tracking measures described 
    at 59 FR 37199 (July 21, 1994) will ever actually trigger the 
    requirement to implement the contingency plan.
    
    USEPA Response
    
        The contingency plan contains, as contingency measures, all of the 
    unimplemented SIP control measures that were required prior to 
    submittal of the complete redesignation request, including basic I/M, 
    Stage II, Stage I expansion, and NOX RACT. As noted in the 
    proposal, Stage II is no longer a required measure due to the USEPA's 
    promulgation of on-board vapor recovery requirements. In addition, the 
    State has also included 7.8 RVP12 and intensified degreasing for 
    degreasing operations13 as contingency measures. The USEPA does 
    not believe that this contingency plan is an ``empty box with no 
    benefits'' instead that the contingency measures in the plan would 
    provide very real benefits in terms of potential emission reductions 
    that the USEPA believes are adequate to deal with potential future 
    violations. The area is not required to include all measures from its 
    15 percent plan in its contingency plan since the 15 percent plan was 
    not an applicable requirement at the time the State submitted a 
    complete redesignation request.
    
        \12\Lower RVP to 7.8 psi may only be implemented as a 
    contingency measure if the State submits and the USEPA finds, under 
    section 211(c)(4)(C) of the Act, that the lower RVP requirement is 
    necessary for the area to achieve the ozone NAAQS.
        \13\Intensified RACT for degreasing operations would entail 
    requiring more stringent controls than are currently specified in 
    Michigan Rules 611, 612, 613, and 614.
    ---------------------------------------------------------------------------
    
        In addition, Region 5 is not setting a precedent of 
    ``grandparenting'' of the 15 percent ROP requirement as contingency 
    measures in the maintenance plan. This is consistent with national 
    policy that has already been established and has been discussed above. 
    See September Calcagni and September Shapiro memorandums.
        Regarding transportation conformity, once redesignated, the 
    Detroit-Ann Arbor area will be a maintenance area and, therefore, 
    required to conduct emission analyses to determine whether the VOC and 
    NOX emissions remain below the motor vehicle emission budget 
    established in the maintenance plan. The July 21, 1994 proposal (59 FR 
    37190) does address conformity with respect to the redesignation on p. 
    37196. The proposal further discusses that, although conformity is 
    applicable in these areas, since the deadline for submittal had not 
    come due for these rules, the approval of the redesignation is not 
    contingent on these submittals to comply with section 107(d)(3)(E)(v). 
    However, transportation and general conformity apply to maintenance 
    areas and therefore, the Detroit-Ann Arbor area must comply with these 
    rules once redesignated to attainment. The June 17, 1994 Conformity 
    General Preamble (59 FR 31238) to the conformity regulations further 
    clarifies this issue. According to the conformity rules and preamble, 
    the Detroit-Ann Arbor area's conformity test will be to remain within 
    the VOC and NOX budgets established in the section 175A 
    maintenance plan.
        The July 21, 1994 notice does describe a tracking plan for updating 
    the emission inventory. As discussed, the redesignation request commits 
    Michigan to conduct periodic inventories every 3 years, provides a 
    schedule for these submittals, and lists the types of factors used in 
    projecting the emission inventories. The State notes that if the 
    factors change substantially, the State would reproject emissions for 
    the maintenance period to determine whether apparent increases in 
    emissions are due to changes in calculation techniques or actual 
    emissions. Although these periodic emission inventories are not a 
    mechanism to trigger implementation of contingency measures, if the 
    periodic inventories exceed the attainment level of emissions in the 
    maintenance plan, the USEPA may issue a SIP call to the area under 
    section 110(k)(5) on the basis that the State made inadequate 
    assumptions in projecting the inventory used to demonstrate 
    maintenance. In this event, the USEPA may require the State to correct 
    the projection inventory and, if increases are projected, propose and 
    [[Page 12472]] ultimately implement maintenance measure(s) to lower the 
    emissions to a level at or below the attainment year level. Since USEPA 
    policy only suggests that level of emissions be included as a 
    triggering mechanism or method of monitoring the area emissions, States 
    are provided the flexibility not to include such a triggering 
    mechanism.
        The Detroit-Ann Arbor area's contingency plan contains one trigger, 
    a monitored air quality violation of the ozone NAAQS, as defined in 40 
    CFR section 50.9. The trigger date will be the date that the State 
    certifies to the USEPA that the air quality data are quality-assured, 
    and no later than 30 days after an ambient air quality violation is 
    monitored. Once the trigger is confirmed, the State will implement one 
    or more appropriate contingency measures based on a technical analysis 
    using a UAM analysis. The Governor will select the contingency measures 
    within 6 months of the trigger. The control measures which may be used 
    as contingency measures within the maintenance plan are I/M upgrades, 
    NOX RACT, Stage I expansion, Stage II, RVP reduction to 7.8 psi 
    and intensified RACT for degreasing operations. As explained in the 
    proposal, the USEPA believes that these measures are adequate to 
    restore air quality in the event of a post-redesignation violation.
    
    Comment
    
        The commentor notes that the Detroit-Ann Arbor area is the fastest 
    growing business area in Michigan, and that ``if regulations are not 
    implemented now, it will take years for companies to comply with new 
    regulations added later.'' [sic] Local industry should have to 
    implement common-sense, cost-effective, pollution-control measures to 
    protect the people in the area.
    
    USEPA Response
    
        The area is currently implementing numerous emission control 
    measures and will continue to do so even after redesignation to 
    attainment for ozone. While the area may be growing, the State has 
    considered the impacts of growth not just in mobile sources, but also 
    industrial sources of ozone precursors in its maintenance plan. The 
    State has adequately shown that permanent and enforceable controls will 
    continue to more than offset the impact of any such growth through the 
    maintenance period as its projections indicate that emissions will 
    decrease during the maintenance period. In the event, the area is 
    redesignated and happens to record a violation of the ozone NAAQS, 
    however, the section 175A maintenance plan specifies control measures 
    which would be implemented as contingency measures in accordance with 
    the schedules specified in the July 21, 1994 and this final rule.
    
    Comment
    
        One commentor notes that the maintenance plan and contingency 
    measures are not likely to protect maintenance of the NAAQS for ozone, 
    because the timeline for implementing corrective measures is too 
    protracted, providing too little protection, too late.
    
    USEPA Response
    
        For clarification, the contingency measures are intended to provide 
    for maintenance by addressing a violation of the ozone NAAQS; 
    maintenance measures serve to provide for maintenance of the NAAQS. The 
    contingency measure implementation schedules were derived from the Act 
    and applicable State and Federal regulations. As explained in the 
    proposal and this final action, the schedule established for the 
    implementation of contingency measures provides for the implementation 
    of such measures as soon as within one year of a violation. Also, as 
    explained in the proposal, the USEPA believes that this schedule 
    satisfies the criterion of section 175A regarding the need for 
    contingency measures to promptly correct violations of the standard 
    occurring during the maintenance period.
    
    Comment
    
        One commentor alleges that the maintenance demonstration relies on 
    fleet turnover with new cars required to have on-board canisters and 
    perhaps enhanced fuel efficiency to create reductions of VOC emissions 
    sufficient to compensate for the steady growth of VMT14 and keep 
    Southeast Michigan in attainment. With an average time for fleet 
    turnover of 10 to 15 years, those measures will have little effect on 
    maintenance of attainment in the near term.
    
        \14\VMT is the number of miles traveled by vehicles of various 
    types, preferably for each link of the highway system.
    ---------------------------------------------------------------------------
    
    USEPA Response
    
        The State is not relying on on-board canisters in its emission 
    projections through the maintenance period. The maintenance 
    demonstration through emission projections must demonstrate that the 
    emissions will not exceed the attainment year inventory. See General 
    Preamble (April 16, 1992, 57 FR 13498) and September Calcagni 
    memorandum. Michigan has demonstrated that, by considering the effects 
    of permanent and enforceable control programs (not including the on-
    board vapor recovery rule), as well as, growth in the area (including 
    VMT growth), through the year 2005 emissions will remain below the 
    attainment year inventory. See 59 FR 37190, tables on p. 37198. Neither 
    the Act nor USEPA guidance specifies or suggests that the State achieve 
    other emission reductions during the maintenance period. The USEPA 
    reviewed the projection inventory methodologies and found them to be 
    appropriate. Furthermore, transportation conformity provides another 
    emission management mechanism. The transportation conformity rules 
    (November 24, 1993, 58 FR 62188) and General Preamble (June 17, 1994, 
    59 FR 31238) apply to nonattainment and maintenance areas. The General 
    preamble clarifies that conformity analyses must demonstrate that VOC 
    and NOX emissions will remain within the motor vehicle emission 
    budget as approved in a section 175A maintenance plan.
    
    Comment
    
        One commentor states that an ozone precursor, NOX, can 
    scavenge ozone. For this reason, NOX controls can actually 
    increase ozone levels in metropolitan areas while beneficially 
    affecting downwind areas. The lack of NOX controls in the 
    Metropolitan Detroit area would help in attaining the 120 ppb ozone 
    standard but this approach would have no net benefit downwind 
    (southwestern Ontario). The commentor concludes that both NOX and 
    VOC must be controlled. Another commentor notes that there is too 
    little information about the interaction between VOC and NOX to 
    justify granting an exemption from NOX controls.
    
    USEPA Response
    
        Section 182(f)(1)(A) of the Act allows the Administrator to exempt 
    an area outside an ozone transport region from the section 182(f) 
    NOX requirements, if the USEPA determines that ``additional 
    reductions of [NOX] would not contribute to attainment'' of the 
    ozone NAAQS in the relevant area. It is clear that if an area has 
    demonstrated attainment of the ozone NAAQS with 3 consecutive complete 
    years of air quality monitoring data, additional NOX reductions 
    would not contribute to attainment, since the area has already 
    attained. Therefore, a State may submit a petition for a section 182(f) 
    exemption based on air quality monitoring data showing attainment of 
    the ozone NAAQS. The USEPA's approval of such [[Page 12473]] an 
    exemption is granted on a contingent basis, i.e., the exemption would 
    only be valid as long as attainment of the ozone NAAQS continues. If 
    prior to final action to redesignate the area to attainment the USEPA 
    determines that a violation of the NAAQS occurred, the section 182(f) 
    exemption would no longer apply, as of the date of such a 
    determination. See December 1993 guidance document Guideline for 
    Determining the Applicability of NOX Requirements under Section 
    182(f), and the May 27, 1994 memorandum from John Seitz, Section 182(f) 
    NOX Exemptions--Revised Process and Criteria. In addition, the May 
    27, 1994 Seitz memorandum, page 3, n. 7, states that while NOX 
    reductions in areas that request and are granted a section 182(f) 
    exemption may not contribute to attainment, they may contribute to 
    maintenance and must be addressed in the maintenance plan required for 
    redesignation. The Detroit-Ann Arbor area submitted a section 182(f) 
    NOX exemption on November 12, 1994 based on 3 consecutive years of 
    monitoring data demonstrating attainment of the ozone NAAQS. The 
    Detroit-Ann Arbor area submitted the appropriate NOX documentation 
    in their redesignation maintenance plan. By doing so, the State has 
    demonstrated a commitment to control NOX if it is deemed necessary 
    to maintain the ozone standard. The USEPA approved the section 182(f) 
    NOX exemption petition for the Detroit-Ann Arbor area in a final 
    USEPA action published elsewhere in this Federal Register.
        With respect to the aspects of the comments relating to the effects 
    of NOX controls or the lack of NOX controls on ambient air in 
    Canada, the USEPA refers the reader to the responses to the comments 
    set forth below.
        In addition, the redesignation request establishes VOC and NOX 
    emission budgets, establishing emission levels adequate to attain the 
    ozone NAAQS. The State has also demonstrated through emission 
    projections that the area's emissions will remain below the attainment 
    year inventory through the year 2005. Consequently, the State has 
    demonstrated that NOX levels will not exceed current levels 
    through the maintenance period.
        In response to the commentors note that there is too little 
    information about the interaction between VOC and NOX to justify 
    granting an exemption from NOX controls, the USEPA refers the 
    commentor to the NOX/VOC Study released by the USEPA on July 31, 
    1993. Congress provided that USEPA decisions on personal petitions for 
    NOX exemptions under section 182(f)(3) be triggered by publication 
    of this 185B report. Consequently, the USEPA believes that this 
    provides evidence that Congress appears to have believed the results of 
    the 185B study would supply sufficient information for the Agency to 
    grant section 182(f) exemptions. The USEPA refers the commentor to the 
    final rulemaking approving the section 182(f) NOX exemption 
    petition for the Detroit-Ann Arbor area published elsewhere in this 
    Federal Register.
        Nonetheless, as demonstrated by the emission projections for the 
    10-year maintenance plan submitted by Michigan, continuing reductions 
    in NOX emissions are expected (primarily from mobile sources as a 
    result of FMVCP). Also, additional NOX emission reductions are 
    expected from implementation of the NOX controls required by title 
    IV of the Act. Designation status of an area is irrelevant in the 
    applicability of title IV requirements; consequently, subject sources 
    in the Detroit-Ann Arbor area will be required to comply with these 
    requirements.
    
    Comment
    
        One commentor notes that the action of proposed redesignation is a 
    product of undue haste and that the final decision on redesignation 
    should await data from Canada's study of ozone levels at its receptors 
    which are down-wind of Southeast Michigan. A number of other commentors 
    suggested that the USEPA respond to concerns expressed by Ontario and 
    Canada prior to making any decision. Another commentor suggests that 
    the USEPA obtain and assess ambient ozone levels prior to proceeding 
    with the redesignation.
    
    USEPA Response
    
        The USEPA has received comments and information from a number of 
    Canadian interests. All comments from commentors in Canada have been 
    considered as the USEPA made a final decision on this action, and are 
    addressed within this final rulemaking. As explained below, the USEPA 
    does not believe that these comments warrant a deferral of final action 
    on this redesignation.
    
    Comment
    
        One commentor states that between 60 percent-80 percent of toxic 
    air pollutants in Windsor's ambient air are transported from the City 
    of Detroit and other U.S. areas northwest of Windsor. Another commentor 
    suggests that the technology needed to reduce ozone closely parallels 
    the technology needed to abate toxic air pollutants in the region. By 
    designating the area as attainment, the region will no longer be 
    required to include ozone reduction technology in the State of 
    Michigan's SIP under the Act. This could eliminate further 
    technological improvements that would not only reduce ozone levels but 
    also contribute to the abatement of toxic air pollution. Since the 
    Governments of the United States and Canada, in their Reference to the 
    International Joint Commission (IJC), have emphasized that the IJC 
    address the impacts of toxic air pollution problems in the region, the 
    IJC cannot support any move that would result in less stringent 
    controls which have direct impact on minimization of ozone levels and 
    reduction of toxic chemical emissions. Consequently, the commentor 
    strongly disagrees with the proposed USEPA redesignation and recommends 
    against it. The commentor believes that the control requirements of the 
    Act for this area should be implemented.
    
    USEPA Response
    
        This redesignation is for ozone. Toxic air pollutants are not 
    relevant to the issue of whether an area should be redesignated due to 
    its attainment of the ozone NAAQS. Separate from this redesignation, 
    the State is required to meet other requirements of the Act 
    specifically to control air toxics emissions. The ozone redesignation 
    would not exempt the area from implementing section 112 of the Act, 
    which is intended to address the control of hazardous air pollutants. 
    Rules promulgated pursuant to section 112 are applicable to sources 
    regardless of an area's attainment status.
        In addition, sources of ozone precursors in the Detroit-Ann Arbor 
    area must continue to implement all control equipment and/or measures 
    in accordance with applicable rules, regulations and permits. 
    Consequently, the redesignation would not result in less stringent 
    controls than are currently being implemented in the Detroit-Ann Arbor 
    area.
    
    Comment
    
        One commentor notes that Canada and Ontario are assembling data 
    from Canadian monitoring stations which are directly relevant to the 
    decision as to whether the Detroit-Ann Arbor area is currently meeting 
    the prescribed Act requirements with respect to ozone. The commentor 
    states that this information and other points will be provided to the 
    Department of State on October 17, 1994. (On October 17, 1994 a 
    document entitled Canada/Ontario Technical Component of the Canadian 
    Comment on the Michigan/Ann Arbor Ozone Redesignation Request was 
    submitted. [[Page 12474]] This document was prepared by Environment 
    Canada and the Ontario Ministry of the Environment and Energy). The 
    commentor expects that this information would be considered in any 
    final decision. A copy of the September 23, 1994 letter from the IJC to 
    Warren Christopher, Secretary of State, was attached. Another commentor 
    claims that the Canadians in Southern Ontario are affected by some of 
    the worst smog episodes in Canada. Many commentors state that much, if 
    not all, of the ground level ozone in Southern and Southeastern Ontario 
    is a result of transboundary movement of ozone and NOX from the 
    U.S. to Canada. Michigan is a significant source of the ozone and 
    NOX coming from the U.S. A number of commentors provided 
    monitoring data from monitors located in Southwestern Ontario and the 
    Detroit-Ann Arbor area and assert that high ozone levels recorded in 
    the Detroit-Ann Arbor area correspond directly with high ozone levels 
    which exceed Ontario's ozone standard. Some commentors noted that high 
    levels of ozone in Ontario may be the cause of increased respiratory 
    problems. Another commentor noted that a recent study in southern 
    Ontario indicates that hospital admissions for respiratory problems has 
    increased due to ozone and acidic air pollution. This situation is 
    occurring at ozone levels well below the 125 ppb averaged over one 
    hour. Another commentor suggests that being another sovereign nation 
    and not a neighboring State, Canada is denied protection available to 
    downwind States adversely affected by emissions from upwind neighbors 
    within the U.S. Another commentor notes the damaging effect of ozone on 
    agricultural crops.
    
    USEPA Response
    
        The USEPA has considered the October 17, 1994 submittal referred to 
    and all other information provided by the Canadian Government and other 
    commentors on these issues.
        The following provides a synopsis of the USEPA's review of the 
    October 17, 1994 document submitted by Environment Canada and the 
    Ontario Ministry of the Environment and Energy. The document contains, 
    among other elements, some ozone monitoring data. However, the ozone 
    monitoring data was inadequate for the USEPA to assess whether a 
    violation of the U.S. ozone NAAQS occurred in Canada. Consequently, on 
    November 1, 3 and 24, and December 14 and 19, 1994 the USEPA obtained 
    clarifying information from the Ontario Ministry of the Environment and 
    Energy on the ozone monitoring data submitted.
        In reviewing the Canadian ozone monitoring data, the USEPA examined 
    each 3-year interval from 1990 through 1994 as well as associated wind 
    patterns. Based on a review of the Canadian report and the clarifying 
    information, the monitoring data demonstrates that there has not been a 
    violation of the U.S. ozone NAAQS at the Windsor (University or South), 
    Sarnia, Merlin, Mandaumin, London, Longwoods, or Parkhill monitors for 
    the timeframe 1990-1992, 1991-1993, or 1992-1994. In fact, the only 
    monitors that have recorded violations of the U.S. ozone NAAQS are the 
    Grand Bend monitor and Tiverton monitor, which are located more than 90 
    miles and 140 miles away from the Detroit-Ann Arbor area, respectively. 
    The Grand Bend monitor recorded violations of the U.S. ozone NAAQS 
    during the timeframe 1990-1992 with a number of expected exceedances of 
    1.67 and during 1991-1993 of 2.0. However, for the 1992-1994 period, 
    there was no violation of the U.S. ozone NAAQS with a number of 
    expected exceedances at 0.33. The Tiverton monitor recorded violations 
    of the U.S. ozone NAAQS during the timeframes 1990-1992 and 1991-1993 
    with a number of expected exceedance of 2.0. However, during the 1992-
    1994 period, there was no violation of the U.S. ozone NAAQS.15
    
        \15\The October 17, 1994 submittal and subsequent clarifying 
    information revealed that the Tiverton monitor recorded one 
    exceedance in 1994. The exceedance, a value of 136 ppb, was recorded 
    on April 24, 1994 at 7:00 PM. However, based on clarifying 
    information provided by the Ontario Ministry of the Environment and 
    Energy, this ozone value was invalidated. The strip chart recorder 
    registered interference (electrical or otherwise) on April 24, 1994 
    between the hours of 5:00 PM through 8:00 PM and for 10:00 PM. 
    Consequently, the data for these hours was invalidated by the 
    Ontario Ministry of the Environment and Energy.
    ---------------------------------------------------------------------------
    
        In addition, the modeling submitted on October 17, 1994 is limited 
    and insufficient for purposes of implicating the Detroit-Ann Arbor area 
    as the cause of elevated ozone levels in Ontario16.
    
        \16\Among the inadequacies were that the submittal had limited 
    documentation on the model input parameters. The ADOM-GESIMA model 
    is not a USEPA guideline model as listed in the Guideline on Air 
    Quality Models, (revised in February 1993). Further model 
    documentation is necessary for a comparative evaluation against 
    USEPA guideline models.
    ---------------------------------------------------------------------------
    
        The ground level wind trajectories presented in the October 17, 
    1994 submittal, indicate that winds into Tiverton and the Windsor area 
    pass through a number of urbanized areas in both the U.S. and Canada 
    (the Windsor urbanized area). The USEPA also notes that such 
    concentration may be attributable to or fostered by ozone precursor 
    emissions generated within Canadian borders, since Windsor itself is an 
    urban area with an estimated metropolitan population greater than 
    225,000. Thus, the extent of any contribution from the Detroit-Ann 
    Arbor area to monitored ozone levels in Ontario cannot be determined 
    with any degree of certainty on the basis of the information presently 
    available to the USEPA. The data provided in the October 17, 1994 
    submittal are inadequate to provide a basis for determining the extent 
    to which emissions from Michigan, and more specifically, the Detroit-
    Ann Arbor area, are contributing to ambient ozone levels in Ontario. As 
    a consequence, the USEPA does not believe that the presently available 
    information provides any basis for affecting its decision regarding the 
    redesignation of the Detroit-Ann Arbor area.
        The USEPA would like to note that the governments of the United 
    States and Canada are in the process of developing a joint study of the 
    transboundary ozone phenomena under the U.S.-Canada Air Quality 
    Agreement. It is envisioned that this regional ozone study will provide 
    the scientific information necessary to understand what contributes to 
    ozone levels in the region, as well as, what control measures would 
    contribute to reductions in ozone levels. Should this or other studies 
    provide a sufficient scientific basis for taking action in the future, 
    the USEPA will decide what is an appropriate course of action. The 
    USEPA may take appropriate action notwithstanding the redesignation of 
    the Detroit-Ann Arbor area. Therefore, the USEPA does not believe that 
    the contentions regarding transboundary impact currently provide a 
    basis for delaying action on this redesignation or disapproving the 
    redesignation. This is particularly true since approval of the 
    redesignation is not expected to result in an increase in ozone 
    precursor emissions and is not expected to adversely affect air quality 
    in Canada. In fact, a decrease in both VOC and NOX emissions from 
    the Detroit-Ann Arbor area is expected over the 10-year maintenance 
    period. See 59 FR 37190, July 21, 1994. It should also be noted that 
    redesignation does not allow States to automatically remove control 
    programs which have contributed to an area's attainment of a U.S. NAAQS 
    for any pollutant. As discussed previously, the USEPA's general policy 
    is that a State may not relax the adopted and implemented SIP for an 
    area upon the area's redesignation to attainment unless an appropriate 
    demonstration17, [[Page 12475]] based on computer modeling, is 
    approved by the USEPA. In this case, no previously implemented control 
    strategies are being relaxed as part of this redesignation.
    
        \17\Such a demonstration must show that removal of a control 
    program will not interfere with maintenance of the ozone NAAQS and 
    would entail submittal of an attainment modeling demonstration with 
    the USEPA's current Guideline on Air Quality Models. Also, see 
    memorandum from Gerald A. Emison, April 6, 1987, entitled Ozone 
    Redesignation Policy.
    ---------------------------------------------------------------------------
    
        The health effects of acidic air pollution are not relevant to this 
    ozone redesignation. However, the USEPA is aware of the study 
    referenced by the commentor and is considering this study in the 
    process of reevaluating the ozone NAAQS.
        Further, apart from title I requirements related to the cessation 
    of the Detroit-Ann Arbor area's status as an ozone nonattainment area, 
    the area is and will continue to be required to satisfy all Act 
    requirements. Other control programs required by the Act will be 
    implemented in the area, regardless of the ozone designation, such as 
    title IV NOX controls, section 112 toxic controls and on-board 
    vapor recovery requirements.
    
    Comment
    
        One commentor notes that recent information indicates that 
    significantly high ozone readings have been recorded in the Town of 
    Kincardine this summer. Kincardine is halfway up the eastern shoreline 
    of Lake Huron, and therefore, the air quality in Kincardine is, for the 
    most part, a result of emissions from Michigan. The commentor requests 
    that the USEPA reconsider the redesignation of the area because it will 
    have drastic effects on the communities on the eastern shore.
    
    USEPA Response
    
        Kincardine is more than 100 miles northeast of the Detroit-Ann 
    Arbor area, the subject of the redesignation to attainment for ozone. 
    Consequently, attributing elevated ozone levels in Kincardine to the 
    Detroit-Ann Arbor area would be a complex task. It cannot be 
    conclusively stated that emissions emanating from the Detroit-Ann Arbor 
    area are, ``for the most part,'' responsible for elevated ozone 
    concentrations recorded at a monitor more than 100 miles away. As 
    demonstrated by the wind trajectories provided by Canada as part of the 
    October 17, 1994 submittal, it can be seen that air parcels travel 
    through several U.S. and Canadian urbanized areas. Again, it is noted 
    that the U.S. and Canada are cooperatively developing a regional ozone 
    study to investigate the transboundary ozone phenomena.
    
    Comment
    
        One commentor states that the transboundary ozone issue points to 
    the need to manage air quality in a regional context and notes that in 
    their meeting of July 25, 1994 in Washington, Carol Browner, 
    Administrator of the United States Environmental Protection Agency, and 
    Sheila Copps, Deputy Prime Minister, Minister of the Environment, 
    Canada, agreed to cooperate in regional management of the transboundary 
    ozone problem. The commentor suggests that the Great Lakes region 
    provides an ideal opportunity to advance this concept.
    
    USEPA Response
    
        Subsequent to the Browner/Copps meeting, the U.S. and Canadian 
    Governments have met to discuss and develop a regional pilot program to 
    address any potential regional transboundary ozone issue. This new 
    regional pilot effort is being developed as a priority under the U.S.-
    Canada Air Quality Agreement.
    
    Comment
    
        One commentor states that the Southeast Michigan Council of 
    Governments has discussed the redesignation at past meetings of the 
    Windsor Air Quality Committee, at which local committee members pointed 
    out their concerns to no avail. All information available suggests that 
    the request for redesignation is without scientific merit at present, 
    and is premature at best.
    
    USEPA Response
    
        Ambient air monitoring data in the Detroit-Ann Arbor area 
    demonstrates that the area is attaining the ozone NAAQS. In addition, 
    the State has met all applicable requirements under section 107 of the 
    Act. As previously discussed, the U.S. and Canada are cooperatively 
    developing a regional ozone study to investigate the transboundary 
    ozone phenomena.
    
    Comment
    
        One commentor notes that the March 1991 formal agreement (the March 
    13, 1991 U.S.-Canada Air Quality Agreement) between the U.S. and Canada 
    called for other parties to take steps to avoid or mitigate the 
    potential risk posed by specific actions. On this basis, it is 
    requested that the USEPA reconsider the consequences of approving this 
    request for southeast Michigan. Another commentor refers to the March 
    13, 1991 Air Quality Agreement between Canada and the U.S. with respect 
    to the effort of the two countries to address transboundary air 
    pollution through ``cooperative and coordinated action.'' Alleging that 
    ground level ozone production in the Detroit-Ann Arbor area by its 
    movement across the U.S.-Canada border has a significant impact on 
    ozone production and general air quality in the Windsor Southwestern 
    Ontario region of Canada, the commentor expresses concern that the 
    Department of State chose not to provide the Canadian Government with 
    formal advance notice of the intention of the USEPA to act on an issue 
    which would have a major impact on transboundary air pollution.
    
    USEPA Response
    
        Paragraph 1 of Article V of the March 13, 1991 U.S.-Canada Air 
    Quality Agreement states that ``Each Party shall, as appropriate and as 
    required by its laws, regulations and policies, assess those proposed 
    actions, activities and projects within the area under its jurisdiction 
    that, if carried out, would be likely to cause significant 
    transboundary air pollution, including consideration of appropriate 
    mitigation measures.'' Paragraph 2, specifies that parties shall notify 
    each other of actions under paragraph 1. Since the action to 
    redesignate the Detroit-Ann Arbor area to attainment does not result in 
    a relaxation of existing control requirements or an increase in ozone 
    precursor emissions, the USEPA does not believe that formal 
    notification was necessary nor that this action poses a potential risk. 
    Canada is well aware of this redesignation at this time. However, in 
    the future, the U.S. intends to notify Canada of actions similar to 
    this action as early as possible regardless of whether notification is 
    required under the U.S.-Canada Air Quality Agreement. In addition, the 
    U.S. will work with Canada to address tropospheric ozone in the context 
    of the Air Quality Agreement as previously discussed.
    
    Comment
    
        A number of commentors believe that the air quality in the Detroit-
    Ann Arbor area has not improved but deteriorated in recent years. 
    Recent developments have been detrimental to air quality, such as the 
    operation of a trash incinerator which emits foul smoke into the air 
    around the clock, particularly on weekends when businesses are closed. 
    Instead of recycling, the City of Detroit chooses to pollute southeast 
    Michigan and Ontario's air. Multitudes of industrial plants are located 
    on the Detroit River whose smokestacks cast gray haze over everything, 
    even on sunny days. One commentor lists a number of local facilities 
    which it claims causes visible emissions and [[Page 12476]] offensive 
    odors. Another commentor states that Wayne county ranked #1 in amount 
    of hazardous chemicals released through air emissions (as well as #1 in 
    ``suspected'' carcinogens), and was fearful for her health and future 
    because of current air quality. Another commentor claimed breathing 
    problems caused by outdoor air. Wayne County was accused of posing 
    numerous pulmonary health risks for residents. Improvements in air 
    quality are necessary for the residents' safety and health.
    
    USEPA Response
    
        The July 21, 1994 Federal Register notice proposes to redesignate 
    the Detroit-Ann Arbor area to attainment solely for ozone. The Detroit-
    Ann Arbor redesignation request satisfies the section 107(d)(3)(E) 
    requirements. Among these requirements is that the area demonstrate 
    attainment of the ozone NAAQS. See section 107(d)(3)(E)(i). The 
    Detroit-Ann Arbor area has demonstrated through 3 consecutive years of 
    complete air quality data, that the area has attained the ozone NAAQS. 
    The area is and will continue to be required to satisfy all Act 
    requirements pertaining to the emission of hazardous air pollutants. 
    Further, existing facilities must continue to operate existing air 
    pollution control equipment in accordance with applicable rules, 
    regulations and permits, and sources that are problematic in terms of 
    posing a nuisance to area residents may be referred to the State and 
    local environmental enforcement staff for investigation. Retaining the 
    area's current nonattainment designation for ozone would not affect 
    visible emissions and/or offensive odors from the existing incinerator. 
    In addition, certain new rules and regulations will still apply to area 
    sources even if the area is redesignated to attainment for ozone; for 
    example, Maximum Achievable Control Technology and additional controls 
    under section 112 (air toxics) of the Act. With respect to the 
    commentor's contention that improvements in air quality are necessary 
    for residents' safety and health, it should be recognized that section 
    109 of the Act requires that the NAAQS, which must be based on 
    established criteria and allow an adequate margin of safety, protect 
    the public health. Unless and until it is revised, the current ozone 
    NAAQS provides the pertinent standard for protecting public health.
    
    Comment
    
        Many commentors believe that designating the area to attainment 
    would exempt the area from stricter clean air regulations. They believe 
    that the USEPA should require local industry to implement common-sense, 
    cost-effective pollution control measures, more stringent automobile 
    emission testing (current testing is not effective), and service 
    stations to install anti-pollution devices on gasoline pumps (Stage 
    II). The USEPA should encourage that measures be taken to ensure that 
    no pollution problems occur in the future.
    
    USEPA Response
    
        Redesignating the area to attainment for ozone does not exempt the 
    State from implementing measures necessary for attainment. Further, 
    additional regulations such as a basic I/M program, Stage II vapor 
    recovery, or Stage I expansion are incorporated into the area's 
    maintenance plan as contingency measures. The contingency measures 
    selected by the State will be implemented if a violation is 
    experienced.
    
    Comment
    
        One commentor requests the USEPA to require, and to make public, an 
    independent, third party, statistical verification of air quality and 
    related environmental health data to support or dispute claims made by 
    local businesses, a senator and a governor. If monitoring in the 
    southwest section of Detroit is ongoing, then there would be no 
    question that tougher standards are needed.
    
    USEPA Response
    
        The State has established air monitoring networks, sampling and 
    analysis procedures as well as quality assurance and control procedures 
    that satisfy USEPA guidelines. The State will continue to operate its 
    monitoring network after redesignation. Third party statistical 
    verification of air quality data is not required by the guidelines 
    applicable for the purposes of this redesignation.
    
    Comment
    
        One commentor stated that the USEPA should not redesignate the 
    Detroit-Ann Arbor area because it is likely that the area will soon 
    have to be redesignated back to nonattainment. The commentor also 
    provided various information related to increasing VOC emissions and 
    petroleum usage.
    
    USEPA Response
    
        The USEPA believes that Michigan has shown that the Detroit-Ann 
    Arbor area has attained and can continue to maintain the NAAQS for 
    ozone. In the event that a violation of the ozone NAAQS does occur in 
    the future, however, the maintenance plan provides for the 
    implementation of the State's contingency measures under section 175A 
    to promptly correct any violations of the NAAQS, as required by the 
    Act.
        With regard to the commentor's contentions concerning VOC emissions 
    and petroleum usage, the USEPA notes that in its showing of maintenance 
    over a 10-year period, the State has technically assessed not only the 
    impacts of reductions due to control programs, but also increases due 
    to growth in all potential sources of emissions. These potential 
    sources include petroleum usage in the mobile source and industrial 
    source sectors. The State has shown in these assessments that 
    reductions in emissions over the maintenance period will more than 
    offset any increases in emissions of VOC. The USEPA's decisions must be 
    based solely on whether Michigan's submission adequately addresses the 
    statutory requirements applicable to redesignation. The USEPA has 
    determined that it does, and is thus approving the redesignation 
    request. Again, in the event that violations of the ozone NAAQS occur, 
    Michigan must promptly implement its contingency measures such that the 
    ozone NAAQS is once again attained and maintained.
    II. Final Rulemaking Action
        The USEPA approves the redesignation of the Detroit-Ann Arbor, 
    Michigan ozone area to attainment and the section 175A maintenance plan 
    as a revision to the Michigan SIP. The State of Michigan has satisfied 
    all of the necessary requirements of the Act. The USEPA has also 
    approved the section 182(f) NOX exemption for the Detroit-Ann 
    Arbor area in an action published elsewhere in this Federal Register 
    which exempts the area from the section 182(f) NOX requirements. 
    As a consequence of this action, the USEPA also stops the sanctions 
    clocks that had been started as a result of the findings made on 
    January 21, 1994, regarding the incompleteness of the 15 percent ROP 
    plan and the section 172(c)(9) contingency plan for the Detroit-Ann 
    Arbor area and on May 11, 1994, regarding the basic I/M plan for the 
    area.
        This action has been classified as a Table 2 action by the Regional 
    Administrator under the procedures published in the Federal Register on 
    January 19, 1989 (54 FR 2214-2225), as revised by an October 4, 1993, 
    memorandum from Michael H. Shapiro, Acting Assistant Administrator for 
    Air [[Page 12477]] and Radiation. The OMB has exempted this regulatory 
    action from Executive Order 12866 review.
        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 any SIP shall be 
    considered separately in light of specific technical, economic, and 
    environmental factors and in relation to relevant statutory and 
    regulatory requirements.
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., USEPA 
    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, USEPA may certify 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 government entities with jurisdiction over populations 
    of less than 50,000.
        The SIP approvals under section 100 and subchapter I, part D, of 
    the Act do not create any new requirements, but simply approve 
    requirements that the State is already imposing. Therefore, because the 
    Federal SIP-approval does not impose any new requirements, I certify 
    that it does not have a significant impact on small entities affected. 
    Moreover, due to the nature of the Federal-State relationship under the 
    Act, preparation of a regulatory flexibility analysis would constitute 
    Federal inquiry into the economic reasonableness of State action. The 
    Act forbids USEPA to base its actions concerning SIPs on such grounds. 
    Union Electric Co. v. USEPA, 427 U.S. 246, 256-66 (1976).
        Under section 307(b)(1) of the Act, petitions for judicial review 
    of this action must be filed in the United States Court of Appeals for 
    the appropriate circuit by May 8, 1995. 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
    
    40 CFR Part 52
    
        Environmental protection, Air pollution control, Carbon monoxide, 
    Hydrocarbons, Intergovernmental relations, Motor vehicle pollution, 
    Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping 
    requirements, Volatile organic compounds.
    
    40 CFR Part 81
    
        Environmental protection, Air pollution control, Carbon monoxide, 
    Hydrocarbons, National parks, Nitrogen oxides, Ozone, Volatile organic 
    compounds, Wilderness areas.
    
        Dated: February 8, 1995.
    Norman R. Niedergang,
    Acting Regional Administrator.
    
        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 X--Michigan
    
        2. Section 52.1170 is amended by adding paragraphs (c) (101) and 
    (102) to read as follows:
    
    
    Sec. 52.1170  Identification of plan.
    
    * * * * *
        (c) * * *
        (101) On November 15, 1993, the State of Michigan submitted as a 
    revision to the Michigan State Implementation Plan for ozone a State 
    Implementation Plan for a motor vehicle inspection and maintenance 
    program for the Detroit-Ann Arbor area. Michigan submitted House Bill 
    No. 5016, signed by Governor John Engler on November 13, 1993.
        (i) Incorporation by reference.
        (A) State of Michigan House Bill No. 5016 signed by the Governor 
    and effective on November 13, 1993.
        (102) On November 12, 1993, the State of Michigan submitted as a 
    revision to the Michigan State Implementation Plan for ozone a State 
    Implementation Plan for a section 175A maintenance plan for the 
    Detroit-Ann Arbor area as part of Michigan's request to redesignate the 
    area from moderate nonattainment to attainment for ozone. Elements of 
    the section 175A maintenance plan include a base year (1993 attainment 
    year) emission inventory for NOX and VOC, a demonstration of 
    maintenance of the ozone NAAQS with projected emission inventories 
    (including interim years) to the year 2005 for NOX and VOC, a plan 
    to verify continued attainment, a contingency plan, and an obligation 
    to submit a subsequent maintenance plan revision in 8 years as required 
    by the Clean Air Act. If the area records a violation of the ozone 
    NAAQS (which must be confirmed by the State), Michigan will implement 
    one or more appropriate contingency measure(s) which are contained in 
    the contingency plan. Appropriateness of a contingency measure will be 
    determined by an urban airshed modeling analysis. The Governor or his 
    designee will select the contingency measure(s) to be implemented based 
    on the analysis and the MDNR's recommendation. The menu of contingency 
    measures includes basic motor vehicle inspection and maintenance 
    program upgrades, Stage I vapor recovery expansion, Stage II vapor 
    recovery, intensified RACT for degreasing operations, NOX RACT, 
    and RVP reduction to 7.8 psi. Michigan submitted legislation or rules 
    for basic I/M in House Bill No 5016, signed by Governor John Engler on 
    November 13, 1993; Stage I and Stage II in Senate Bill 726 signed by 
    Governor John Engler on November 13, 1993; and RVP reduction to 7.8 psi 
    in House Bill 4898 signed by Governor John Engler on November 13, 1993.
        (i) Incorporation by reference.
        (A) State of Michigan House Bill No. 5016 signed by the Governor 
    and effective on November 13, 1993.
        (B) State of Michigan Senate Bill 726 signed by the Governor and 
    effective on November 13, 1993.
        (C) State of Michigan House Bill No. 4898 signed by the Governor 
    and effective on November 13, 1993.
        2. Section 52.1174 is amended by adding paragraphs (h) and (i) to 
    read as follows:
    
    
    Sec. 52.1174  Control strategy: Ozone.
    
    * * * * *
        (h) Approval--On January 5, 1993, the Michigan Department of 
    Natural Resources submitted a revision to the ozone State 
    Implementation Plan for the 1990 base year emission inventory. The 
    inventory was submitted by the State of Michigan to satisfy Federal 
    requirements under section 182(a)(1) of the Clean Air Act as amended in 
    1990, as a revision to the ozone State Implementation Plan for the 
    Detroit-Ann Arbor moderate ozone nonattainment area. This area includes 
    Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne 
    counties.
        (i) Approval--On November 12, 1993, the Michigan Department of 
    Natural Resources submitted a request to redesignate the Detroit-Ann 
    Arbor (consisting of Livingston, Macomb, Monroe, Oakland, St. Clair, 
    Washtenaw, and Wayne counties) ozone nonattainment area to attainment 
    for ozone. As part of the redesignation request, the State submitted a 
    [[Page 12478]] maintenance plan as required by 175A of the Clean Air 
    Act, as amended in 1990. Elements of the section 175A maintenance plan 
    include a base year (1993 attainment year) emission inventory for 
    NOX and VOC, a demonstration of maintenance of the ozone NAAQS 
    with projected emission inventories (including interim years) to the 
    year 2005 for NOX and VOC, a plan to verify continued attainment, 
    a contingency plan, and an obligation to submit a subsequent 
    maintenance plan revision in 8 years as required by the Clean Air Act. 
    If the area records a violation of the ozone NAAQS (which must be 
    confirmed by the State), Michigan will implement one or more 
    appropriate contingency measure(s) which are contained in the 
    contingency plan. Appropriateness of a contingency measure will be 
    determined by an urban airshed modeling analysis. The Governor or his 
    designee will select the contingency measure(s) to be implemented based 
    on the analysis and the MDNR's recommendation. The menu of contingency 
    measures includes basic motor vehicle inspection and maintenance 
    program upgrades, Stage I vapor recovery expansion, Stage II vapor 
    recovery, intensified RACT for degreasing operations, NOX RACT, 
    and RVP reduction to 7.8 psi. The redesignation request and maintenance 
    plan meet the redesignation requirements in sections 107(d)(3)(E) and 
    175A of the Act as amended in 1990, respectively. The redesignation 
    meets the Federal requirements of section 182(a)(1) of the Clean Air 
    Act as a revision to the Michigan Ozone State Implementation Plan for 
    the above mentioned counties.
    
    PART 81--[AMENDED]
    
        1. The authority citation for part 81 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
        2. In Sec. 81.323 the ozone table is amended by revising the entry 
    for the Detroit-Ann Arbor area for ozone to read as follows:
    
    
    Sec. 81.323  Michigan.
    
    * * * * *
    
                                                     Michigan--Ozone                                                
    ----------------------------------------------------------------------------------------------------------------
                                                      Designation                            Classification         
            Designated areas        --------------------------------------------------------------------------------
                                              Date\1\                 Type           Date\1\            Type        
    ----------------------------------------------------------------------------------------------------------------
                                                                                                                    
            *                  *                  *                  *                  *                  *        
                                                            *                                                       
     Detroit-Ann Arbor Area:                                                                                        
        Livingston County..........  April 6, 1995...........  Attainment                                           
        Macomb County..............  April 6, 1995...........  Attainment                                           
        Monroe County..............  April 6, 1995...........  Attainment                                           
        Oakland County.............  April 6, 1995...........  Attainmnet                                           
        St. Clair County...........  April 6, 1995...........  Attainment                                           
         Washtenaw County..........  April 6, 1995...........  Attainment                                           
        Wayne County...............  April 6, 1995...........  Attainment                                           
                                                                                                                    
            *                  *                  *                  *                  *                  *        
                                                            *                                                       
    ----------------------------------------------------------------------------------------------------------------
    \1\This date is November 15, 1990, unless otherwise noted.                                                      
    
    * * * * *
    [FR Doc. 95-5445 Filed 3-6-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
4/6/1995
Published:
03/07/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-5445
Dates:
This action will be effective April 6, 1995.
Pages:
12459-12478 (20 pages)
Docket Numbers:
MI21-04-6753, MI18-03-6754, FRL-5160-6
PDF File:
95-5445.pdf
CFR: (3)
40 CFR 52.1170
40 CFR 52.1174
40 CFR 81.323