97-25228. Approval and Promulgation of Air Quality Implementation Plans; Maryland; 15% Rate of Progress Plan for the Maryland Portion of the Metropolitan Washington, D.C. Area  

  • [Federal Register Volume 62, Number 184 (Tuesday, September 23, 1997)]
    [Rules and Regulations]
    [Pages 49611-49617]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-25228]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [MD 039-3019; FRL-5896-1]
    
    
    Approval and Promulgation of Air Quality Implementation Plans; 
    Maryland; 15% Rate of Progress Plan for the Maryland Portion of the 
    Metropolitan Washington, D.C. Area
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
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    SUMMARY: EPA is granting conditional approval of the State 
    Implementation Plan (SIP) revision submitted by the State of Maryland, 
    for the Maryland portion of the Metropolitan Washington, D.C. serious 
    ozone nonattainment area, to meet the 15 percent reasonable further 
    progress (RFP, or 15% plan) requirements of the Clean Air Act (the 
    Act). EPA is granting conditional approval of the 15% plan, submitted 
    by the State of Maryland, because on its face the plan achieves the 
    required 15% emission reduction, but additional documentation to verify 
    the emission calculations is necessary for full approval. Additionally, 
    the plan relies upon Maryland's inspection and maintenance (I/M) 
    program that received final conditional approval on July 31, 1997 (62 
    FR 40938). This action is being taken under section 110 of the Clean 
    Air Act.
    
    EFFECTIVE DATE: This final rule is effective on October 23, 1997.
    
    ADDRESSES: Copies of the documents relevant to this action are 
    available for public inspection during normal business hours at the 
    Air, Radiation, and Toxics Division, U.S. Environmental Protection 
    Agency, Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 
    19107; and the Maryland Department of the Environment, 2500 Broening 
    Highway, Baltimore, Maryland 21224.
    
    FOR FURTHER INFORMATION CONTACT: Carolyn M. Donahue, Ozone/Carbon 
    Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841 
    Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone at 
    (215) 566-2095 or via e-mail, at the following address: 
    donahue.carolyn@epamail.epa.gov.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        Section 182(b)(1) of the Act requires ozone nonattainment areas 
    classified as moderate or above to develop plans to reduce volatile 
    organic compounds (VOC) emissions by 15% from 1990 baseline levels. The 
    Metropolitan Washington, D.C. area is classified as a serious ozone 
    nonattainment area and is subject to the 15% plan requirement. The 
    Metropolitan Washington, D.C. ozone nonattainment area consists of the 
    entire District of Columbia (``the District''), five counties in the 
    Northern Virginia area and five counties in Maryland. The Maryland 
    portion consists of Calvert, Charles, Frederick, Montgomery and Prince 
    George's Counties.
        Virginia, Maryland, and the District all must demonstrate 
    reasonable further progress for the Metropolitan Washington, D.C. 
    nonattainment area. These three jurisdictions, in conjunction with 
    municipal planning organizations, collaborated on a coordinated 15% 
    plan for the nonattainment area. This was done with the assistance of 
    the regional air quality planning committee, the Metropolitan 
    Washington Air Quality Committee (MWAQC), and the local municipal 
    planning organization, the Metropolitan Washington Council of 
    Governments (MWCOG), to ensure coordination of air quality and 
    transportation planning.
        The State of Maryland submitted the 15% plan SIP revision for the 
    Maryland portion of the Metropolitan Washington, D.C. nonattainment 
    area on July 12, 1995. On June 5, 1997, EPA published a notice of 
    proposed rulemaking (NPR) in the Federal Register proposing conditional 
    approval of the 15% plan (62 FR 30821). EPA's rationale for granting 
    conditional approval to this Maryland 15% plan, and the details of the 
    July 12, 1995 submittal are contained in the June 5, 1997 NPR and the 
    accompanying technical support document and will not be restated here.
    
    II. Public Comments and EPA Responses
    
        EPA received a letter in response to the June 5, 1997 NPR from the 
    Sierra Club Legal Defense Fund (SCLDF). The
    
    [[Page 49612]]
    
    following discussion summarizes and responds to the comments received.
    
    Comment 1
    
        SCLDF commented that the Maryland 15% plan must be disapproved 
    because it failed to produce the 15% emission reduction of 60.7 tons/
    day identified in the plan as prescribed by section 182(b)(1)(A)(I) of 
    the Act. EPA's argument that it believes that Maryland's required 15% 
    reduction ``may be lower than the 56.4 tons per day'' is flawed. EPA 
    took no action on 6.3 tons of additional measures.
    
    Response 1
    
        Under section 110(k)(4) of the Act, EPA may conditionally approve a 
    plan based on a commitment from the state to adopt specific enforceable 
    measures within one year from the date of approval. EPA believes that 
    the 15% required reduction in the Maryland portion of the Metropolitan 
    Washington, D.C. nonattainment area may be lower than the 60.7 tons/day 
    estimated in the July 12, 1995 SIP submittal based on new information 
    supplied by the State. Although this information has not been 
    established through an official SIP submittal, this information is 
    contained in Maryland's rate-of-progress SIP for the 1996-1999 time 
    period (known as the Post-1996 plan). Maryland has held a public 
    hearing on this SIP, which EPA provided comments on for the public 
    record, and expects to submit it to EPA shortly. Under these 
    circumstances--including the fact that the amount of emissions at issue 
    is a relatively small percentage of the 15% requirement--EPA has the 
    authority to conditionally approve Maryland's 15% SIP, on the condition 
    that Maryland submit the requisite documentation. The State of Maryland 
    has agreed to meet this condition to document that the amount of 
    reduction needed to meet the 15% requirement is less than 56.4 tons/
    day, and submitted such commitment in writing on July 3, 1997.
    
    Comment 2
    
        SCLDF commented that the Maryland 15% plan, which takes credit for 
    federal control measures such as architectural and industrial 
    maintenance coating, consumer/commercial products and autobody 
    refinishing, should not be approved because those federal control 
    measures have not yet been promulgated. SCLDF states that allowing such 
    credit violates section 182(b)(1)(C) of the Act. SCLDF further 
    commented that EPA cannot lawfully base SIP decisions on unpromulgated 
    rules because it does not know what these final rules will say. SCLDF 
    contends that allowing credit on as yet unpromulgated rules, even with 
    the caveat that the states must revisit the rule later if the federal 
    rules turn out differently than predicted, amounts to an unlawful 
    extension of a SIP submission deadline. SCLDF stated that EPA must base 
    its decision on the record before it at the time of its decision; not 
    on some record that the agency hopes will exist in the future.
    
    Response 2
    
        Section 182(b)(1)(A) of the Act requires states to submit their 15% 
    SIP revisions by November 1993. Section 182(b)(1)(C) of the Act 
    provides the following general rule for creditability of emissions 
    reductions towards the 15% requirement: ``Emissions reductions are 
    creditable toward the 15 percent required * * * to the extent they have 
    actually occurred, as of (November 1996), from the implementation of 
    measures required under the applicable implementation plan, rules 
    promulgated by the Administrator, or a permit under Title V.''
        This provision further indicates that certain emissions reductions 
    are not creditable, including reductions from certain control measures 
    required prior to the 1990 Amendments. This creditability provision is 
    ambiguous. Read literally, it provides that although the 15% SIPs are 
    required to be submitted by November 1993, emissions reductions are 
    creditable as part of those SIPs only if ``they have actually occurred, 
    as of (November 1996)''. This literal reading renders the provision 
    internally inconsistent.
        Accordingly, EPA believes that the provision should be interpreted 
    to provide, in effect, that emissions reductions are creditable ``to 
    the extent they will have actually occurred, as of (November 1996), 
    from the implementation of (the specified measures)'' (the term 
    ``will'' is added). This interpretation renders the provision 
    internally consistent.
        Sec. 182(b)(1)(C) of the Act explicitly includes as creditable 
    reductions those resulting from ``rules promulgated by the 
    Administrator''. This provision does not state the date by which those 
    measures must be promulgated, i.e., does not indicate whether the 
    measures must be promulgated by the time the 15% SIPs were due 
    (November 1993), or whether the measures may be promulgated after this 
    due date.
        Because the statute is silent on this point, EPA has discretion to 
    develop a reasonable interpretation, under Chevron U.S.A. Inc. v. NRDC, 
    467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). EPA believes it 
    reasonable to interpret section 182(b)(1)(C) of the Act to credit 
    reductions from federal measures as long as those reductions are 
    expected to occur by November 1996, even if the Federal measures are 
    not promulgated by the November 1993 due date for the 15% SIPs.
        EPA's interpretation is consistent with the congressionally 
    mandated schedule for promulgating regulations for consumer and 
    commercial products, under section 182(e) of the Act. This provision 
    requires EPA to promulgate regulations controlling emissions from 
    consumer and commercial products that generate emissions in 
    nonattainment areas. Under the schedule, by November 1993--the same 
    date that the States were required to submit the 15% SIPs--EPA was to 
    issue a report and establish a rulemaking schedule for consumer and 
    commercial products. Further, EPA was to promulgate regulations for the 
    first set of consumer and commercial products by November 1995. It is 
    reasonable to conclude that Congress anticipated that reductions from 
    these measures would be creditable as part of the 15% SIPs, as long as 
    those reductions were to occur by November 1996.
        Crediting reductions from federal measures promulgated after the 
    due date for the 15% SIPs is also sensible from an administrative 
    standpoint. Crediting the reductions allows the states to plan 
    accurately to meet the 15% reduction target from the appropriate level 
    of state and federal measures. Not crediting such reductions would mean 
    that the states would have to implement additional control requirements 
    to reach the 15% mark; and that SIPs would result in more than a 15% 
    level of reductions once the federal measures in question were 
    promulgated and implemented. At that point in time, the state may seek 
    to eliminate those additional SIP measures on grounds that they would 
    no longer be necessary to reach the 15% level. Such constant revisions 
    to the SIP to demonstrate 15% is a paper exercise that exhausts both 
    the states' and EPA's time and resources.
        The fact that EPA cannot determine precisely the amount of credit 
    available for the federal measures not yet promulgated does not 
    preclude granting the credit. The credit can be granted as long as EPA 
    is able to develop reasonable estimates of the amount of VOC reductions 
    from the measures EPA expects to promulgate. EPA believes that it is 
    able to develop reasonable estimates, particularly because is has 
    already proposed and taken comment on the measures at issue, and 
    expects to
    
    [[Page 49613]]
    
    promulgate final rules by the spring of 1998. Many other parts of the 
    SIP, including state measures, typically include estimates and 
    assumptions concerning VOC amounts, rather than actual measurements. 
    For example, EPA's document to estimate emissions, ``Compilation of Air 
    Pollutant Emission Factors,'' January 1995, AP-42, provide emission 
    factors used to estimate emissions from various sources and source 
    processes. AP-42 emission factors have been used, and continue to be 
    used, by states and EPA to determine base year emission inventory 
    figures for sources and to estimate emissions from sources where such 
    information is needed. Estimates in the expected amount of VOC 
    reductions are commonly made in air quality plans, even for those 
    control measures that are already promulgated.
        Moreover, the fact that EPA is occasionally delayed in its 
    rulemaking is not an argument against granting credits from these 
    measures. The measures are statutorily required, and states and 
    citizens could bring suit to enforce the requirements that EPA 
    promulgate them. If the amount of credit that EPA allows the state to 
    claim turns out to be greater than the amount EPA determines to be 
    appropriate when EPA promulgates the federal measures, EPA intends to 
    take appropriate action to require correction of any shortfall in 
    necessary emissions reductions that may occur.
        The above analysis focuses on the statutory provisions that include 
    specific dates for 15% SIP submittals (November 1993), and 
    implementation (November 15, 1996). These dates have expired, and EPA 
    has developed new dates for submittal and implementation. EPA does not 
    believe that the expiration of the statutory dates, and the development 
    of new ones, has implications for the issue of whether reductions from 
    federal measures promulgated after the date of 15% SIP approval may be 
    counted toward those 15% SIPs. Although the statutory dates have 
    passed, EPA believes that the analysis described above continues to be 
    valid.
    
    Comment 3
    
        EPA has improperly suggested that SIPs can be approved if the state 
    has failed to demonstrate approvability. In this regard, EPA has not 
    been able to verify Maryland's emission reduction credit claims for 
    Tier I or Stage II vapor recovery, but has nonetheless stated that it 
    has no reason to dispute the credit claimed by Maryland and is 
    therefore approving the 15% plan. An absence of statutorily required 
    documentation requires disapproval.
    
    Response 3
    
        EPA believes Maryland has demonstrated that it has appropriately 
    modeled its mobile source program benefits, through proper use of EPA's 
    MOBILE emissions factor estimation model, combined with state vehicle 
    miles of travel estimates. It is not practical to submit the hundreds 
    or even thousands of modeling input and output runs needed to evaluate 
    the mobile source-related portions of the 15% rate-of-progress SIP. 
    Maryland instead submitted to EPA a list of the variables and 
    assumptions utilized in its MOBILE modeling analysis, along with sample 
    model input and output scenarios.
        While the SIP does not contain sufficient data to reconstruct the 
    analysis and, therefore, to independently verify the State's claims, 
    EPA believes the State's methodology is sound. However, EPA has 
    deferred the specific results of that methodology, in part, to the 
    State.
    
    Comment 4
    
        SCLDF commented that it is unlawful for EPA to allow substantial 
    credit from an I/M program that is not before the agency. The 15% plan 
    before EPA was submitted on July 12, 1995, and thus does not 
    incorporate Maryland's current I/M plan which was submitted in March 
    1996. Also, it is unlawful to allow postponements under the National 
    Highway System Designation Act (NHSDA) for an area that did not submit 
    an NHSDA-type program.
    
    Response 4
    
        Maryland's March 1996 I/M submittal was an amendment to the I/M 
    program submitted to EPA on July 11, 1995. The March I/M submittal does 
    not supercede the July 1995 program; thus Maryland's current I/M 
    program is before EPA. EPA granted conditional approval of Maryland's 
    I/M program on July 31, 1997. If the rules submitted from Maryland to 
    EPA are valid, they do not have to be submitted in a particular order.
        EPA believes that test-only I/M programs like the one in Maryland 
    should be treated in the same manner as NHSDA state programs (test and 
    repair programs) with regard to 15% plan requirements. In a letter from 
    Mary Nichols to MDE Secretary Jane Nishida dated January 30, 1996, EPA 
    stated this position is justified in light of administrative and 
    statutory changes in the I/M requirements and the extent to which 
    states relied on I/M programs in their 15% submittals. EPA's approach 
    would have the effect of keeping a level playing field by assuring that 
    Maryland would not be penalized for adopting a test-only program.
    
    Comment 5
    
        SCLDF commented that EPA cannot postpone the deadline for achieving 
    the required 15% reduction any further than the current deadline of 
    November 15, 1999. It contends that, without conceding the legality of 
    a 3-year postponement of the statutory deadline of November 15, 1996 
    allowed by EPA, any longer postponement would be unlawful. Once a 
    compliance date has expired, compliance must occur in the shortest time 
    possible. The commenter cited various court decisions in an effort to 
    demonstrate that a postponement longer than three years would not 
    adhere to the strict standard of compliance. Also, SCLDF claimed that 
    postponing a requirement for reasonable further progress until after 
    the deadline for attainment would be unlawful.
    
    Response 5
    
        The case law cited by the commenter considers various 
    circumstances, such as failure by EPA to promulgate rules on the 
    statutorily mandated deadline or to take action on state failures to 
    make SIP submissions on the statutorily mandated deadline. See, e.g., 
    Natural Resources Defense Council v. EPA, 22 F.3d 1125 (D.C. Cir. 
    1994), Natural Resources Defense Council v. Train, 510 F.2d 692 (D.C. 
    Cir. 1975). These cases articulate various formulations of the 
    standards by which the courts establish new deadlines. EPA believes 
    that its formulation of the standard by which States must achieve the 
    15% reductions--``as soon as practicable''--is generally consistent 
    with the case law.
        Further, EPA believes that Maryland has demonstrated that it has 
    met this standard. The notice of proposed rulemaking and the TSD 
    accompanying that proposal establish that implementation of the I/M 
    program is as soon as practicable. The main reason for the delays in 
    the development and implementation of Maryland's 15% SIP relate to its 
    enhanced I/M plan. Most recently, these enhanced I/M delays were 
    closely associated with the enactment, in November 1995, of the NHSDA. 
    The NHSDA afforded states the opportunity to revise their I/M plans in 
    a manner that would be treated as meeting certain EPA requirements on 
    an interim basis. The NHSDA provided additional time for the State and 
    EPA to develop and process the revised I/M plans. In the January 1996 
    letter to Secretary Nishida from Mary Nichols,
    
    [[Page 49614]]
    
    EPA states it will credit Maryland's test-only enhanced I/M program for 
    purposes of the 15% requirement. This approach enables states with 
    test-only programs to enhance those programs starting in 1997 while 
    applying credit for those programs to satisfy the 1996 15% VOC 
    reduction plan requirements. Maryland acted expeditiously in developing 
    and implementing a revised enhanced I/M program. However, the amount of 
    time necessary to develop and implement the I/M program rendered 
    impossible achieving the 15% reduction target by the end of 1996. The 
    addendum to the TSD showing the chronology of Maryland's I/M program 
    development demonstrates the necessity of the extension.
        Moreover, EPA has reviewed other VOC SIP measures that are at least 
    theoretically available to Maryland, and has concluded that 
    implementation of any such measures that might be appropriate would not 
    accelerate the date of achieving the 15% reductions. For reasons 
    indicated elsewhere in the record, EPA considers the biennial I/M 
    program selected by Maryland to be as soon as practicable, 
    notwithstanding the fact that other states may choose to implement an 
    annual program.
    
    Comment 6
    
        SCLDF commented that any further delays in achieving the mandate 
    15% reduction from VOC control measures, including most prominently, 
    enhanced I/M, must not be tolerated. Furthermore, missing the November 
    15, 1996 deadline unlawfully rewards states for failure to meet the 
    deadline by giving them increased credits under national programs such 
    as the Tier I Federal Motor Vehicle Control Program. SCLDF argues that 
    such an approach unlawfully delays the achievement of clean air by 
    allowing the states to reduce their own emission control efforts by the 
    amount of the post-November 1996 fleet turnover benefits. Consequently, 
    EPA must deny the post-November 1996 Tier I credit and require states 
    to adopt emission reductions to compensate for post-1996 growth in 
    vehicle miles traveled (VMT).
        SCLDF further argues that EPA cannot delay the section 182(b)(1) 
    requirement for states to account for growth in the 15% plans to the 
    Post-1996 rate-of-progress plans, particularly because the Post-1996 
    plans involve potential NOX substitution that is not 
    permitted in the VOC-only 15% plans.
    
    Response 6
    
        EPA disagrees with this comment. The NHSDA was enacted by Congress 
    in November of 1995. Section 348 of this statute provided states' 
    renewed opportunity to satisfy the Clean Air Act requirements related 
    to the network design for I/M programs. States were not only granted 
    the flexibility to enact test-and-repair programs, but were provided 
    additional time to develop those programs and to submit proposed 
    regulations for interim SIP approval. Maryland moved rapidly to propose 
    I/M regulations and to submit to EPA on March 27, 1996 an amendment to 
    the I/M SIP containing those regulations. EPA granted conditional 
    approval of the Maryland I/M program on July 31, 1997 (62 FR 40938).
        Under the terms of the 15% requirement in section 182(b)(1)(A)(I) 
    of the Act, the SIP must--``provide for (VOC) emission reductions, 
    within 6 years after the date of enactment of the Clean Air Act 
    Amendments of 1990, of at least 15 percent from baseline emissions, 
    accounting for any growth in emissions after (1990).''
        EPA interprets this provision to require that a specific amount of 
    VOC reductions occur, and has issued guidance for computing this 
    amount. Maryland, complying with this guidance, has determined the 
    amount of the required VOC reductions needed to meet the 15% goal. It 
    is no longer possible for Maryland to implement measures to achieve 
    this level of reduction as the November 15, 1996 date provided under 
    the 15% provisions has passed. Accordingly, EPA believes that Maryland 
    will comply with the statutory mandate as long as it achieves the 
    requisite level of reductions on an as-soon-as-practicable basis after 
    1996. In computing the reductions, EPA believes it acceptable for 
    states to count reductions from federal measures, such as vehicle 
    turnover, that occur after November 15, 1996, as long as they are 
    measures that would be creditable had they occurred prior to that date. 
    These measures result in VOC emission reductions as directed by 
    Congress in the Act; therefore, these measures should count towards the 
    achievement--however delayed--of the 15% VOC reduction goal.
        EPA does not believe states are obligated as part of the 15% SIP to 
    implement further VOC reductions to offset increases in VOC emissions 
    due to post-1996 growth. As noted above, the 15% requirement mandates a 
    specific level of reductions. By counting the reductions that occur 
    through measures implemented pre-and post-1996, SIPs may achieve this 
    level of reductions. Although section 182(b)(1)(A)(I), quoted above, 
    mandates that the SIPs account for growth after 1990, the provision 
    does not, by its terms, establish a mechanism for how to account for 
    growth, or indicate whether, under the present circumstances, post-1996 
    growth must be accounted for. EPA believes that its current 
    requirements for the 15% SIPs meet section 182(b)(1)(A)(I). In 
    addition, although post-1996 VOC growth is not offset under the 15% 
    SIPs, such growth must be offset in the Post-1996 plans required for 
    serious and higher classified areas to achieve 9% in VOC reductions 
    every three years after 1996 (until the attainment date). Maryland's 
    Post-1996 plan for the Maryland portion of the Metropolitan Washington, 
    D.C. area, which is nearing completion, does appear to achieve the 9% 
    emissions reductions required between 1996 and 1999, taking into 
    account growth in VOCs during that time. The fact that these Post-1996 
    SIPs may substitute NOX reductions for VOC reductions in the 
    1996 to 1999 period does not undermine the integrity of the 15% SIPs. 
    Allowing NOX substitution is fully consistent with the 
    health goals of the Clean Air Act.
        Under EPA's approach, post-1996 growth will be accounted for in the 
    plans that Congress intended to take account of such growth--the Post-
    1996 ``rate of progress'' SIPs. To shift the burden of accounting for 
    such growth to the 15% plans, as commenters would have EPA do, would 
    impose burdens on states above and beyond what Congress contemplated 
    would be imposed by the 15% requirement (which was intended to have 
    been achieved by November 15, 1996). In the current situation, where it 
    is clearly impossible to achieve the target level of VOC reductions (a 
    15% reduction taking into account growth through November 1996) by 
    November 1996, EPA believes that its approach is a reasonable and 
    appropriate one. It will still mean that post-1996 growth is taken into 
    account in the SIP revisions Congress intended to take into account 
    such growth and it means that the target level of VOC reductions will 
    be achieved as soon as practicable. Once the Post-1996 rate of progress 
    plans are approved and implemented, areas will have achieved the same 
    level of progress that they were required to have achieved through the 
    combination of the 15% and rate of progress requirements as originally 
    intended by Congress.
    
    Comment 7
    
        SCLDF commented that EPA proposed disapproval of the Philadelphia 
    15% plan in 1996 because the plan assumed credit from control 
    strategies either not fully adopted, not creditable under the Clean Air 
    Act, or which had not been adequately quantified. Furthermore, EPA 
    proposed
    
    [[Page 49615]]
    
    disapproval of the plan because Pennsylvania switched I/M programs yet 
    did not revise the 15% plan to reflect the differences in the I/M 
    program description and projected emission reductions. EPA set 
    precedence with this rulemaking and to propose approval of the Maryland 
    15% plan when the same deficiencies exist is acting in an arbitrary and 
    capricious manner of treating similar situations in such a 
    diametrically opposed fashion.
    
    Response 7
    
        EPA's proposed approval of the Maryland 15% plan is not 
    inconsistent with the proposed disapproval of the Philadelphia 15% 
    plan. On July 10, 1996, EPA proposed to disapprove Pennsylvania's 15% 
    plan for the Philadelphia area because it would not have achieved 
    sufficient reductions to meet the requirements of section 182(b)(1) of 
    the Act (61 FR 36320). EPA did not credit any reductions from 
    Pennsylvania's enhanced I/M program because at the time of the July 10, 
    1996 rulemaking EPA had disapproved Pennsylvania's I/M submittal. In a 
    letter dated April 13, 1995, EPA converted the August 31, 1994 
    conditional approval of Pennsylvania I/M submittal to a disapproval. As 
    discussed above, on July 31, 1997, EPA granted conditional approval of 
    Maryland's I/M program in the Maryland SIP (62 FR 40938). Therefore, 
    the factual basis for EPA's conditional approval of Maryland's 15% plan 
    is not similar to that of the Philadelphia 15% plan. In the July 10, 
    1996 proposed disapproval, EPA credited the measures in Pennsylvania's 
    15% plan towards meeting the rate of progress requirements of the Act 
    even though they were insufficiently documented to qualify for full 
    approval. See 61 FR 36322. That action is wholly consistent with EPA's 
    conditional approval of the Maryland 15% plan.
    
    III. Conditional Approval
    
        EPA has evaluated Maryland's July 12, 1995 submittal for 
    consistency with the Act, applicable EPA regulations, and EPA policy 
    and has determined, as documented in the June 5, 1997 NPR, that, on its 
    face, the 15% plan for the Maryland portion of the Metropolitan 
    Washington, D.C. nonattainment area achieves the required 15% VOC 
    emission reduction to meet Maryland's portion of the regional multi-
    state plan to satisfy the requirements of section 182(b)(1) of the Act. 
    However, there are measures included in the Maryland 15% plan, which 
    may be creditable towards the Act requirement, but which are 
    insufficiently documented for EPA to take action on at this time. While 
    the amount of creditable reductions for certain control measures has 
    not been adequately documented to qualify for Clean Air Act approval, 
    EPA has determined that Maryland's submittal contains enough of the 
    required structure to warrant conditional approval. EPA cannot grant 
    full approval of the Maryland 15% rate-of-progress plan under section 
    110(k)(3) and Part D of the Clean Air Act. Instead, EPA is granting 
    conditional approval of this SIP revision under section 110(k)(4) of 
    the Act, because the State must meet the specified conditions and 
    supplement its submittal to satisfy the requirements of section 
    182(b)(1) of the Act regarding the 15% rate-of-progress plan, and 
    because the State must supplement its submittal and demonstrate it has 
    achieved the required emission reductions.
        The June 5, 1997 NPR listed the conditions that Maryland must meet 
    in order to convert the conditional approval to full approval. In a 
    July 3, 1997 letter to EPA, the State committed to meet all the 
    conditions listed in the NPR within 12 months of final conditional 
    approval. The conditions from the NPR are restated here. The State of 
    Maryland must fulfill the following conditions by no later than 
    September 23, 1998:
        1. Maryland's 15% plan must be revised to account for growth in 
    point sources from 1990-1996.
        2. Maryland must meet the conditions listed in the October 31, 1996 
    proposed conditional I/M rulemaking notice, and the I/M reductions 
    using the following two EPA guidance memos: ``Date by which States Need 
    to Achieve all the Reductions Needed for the 15 Percent Plan from I/M 
    and Guidance for Recalculation,'' Note from John Seitz and Margo Oge, 
    dated August 13, 1996, and ``Modeling 15 Percent VOC Reductions from I/
    M in 1999--Supplemental Guidance'', memorandum from Gay MacGregor and 
    Sally Shaver, dated December 23, 1996.
        3. Maryland must remodel to determine affirmatively the creditable 
    reductions from RFG, and Tier 1 in accordance with EPA guidance.
        4. Maryland must submit a SIP revision amending the 15% plan with a 
    demonstration using appropriate documentation methodologies and credit 
    calculations that the 56.4 tons/day reduction, supported through 
    creditable emission reduction measures in the submittal, satisfies 
    Maryland's 15% ROP requirement for the Metropolitan Washington, D.C. 
    nonattainment area.
        After making all the necessary corrections to establish the 
    creditability of chosen control measures, Maryland must demonstrate 
    that 15% emission reduction is obtained in the Maryland portion of the 
    Metropolitan Washington, D.C. nonattainment area as required by section 
    182(b)(1) of the Act and in accordance with EPA's policies and guidance 
    issued pursuant to section 182(b)(1).
    
    IV. Final Action
    
        EPA is today granting conditional approval of the Maryland 15% plan 
    as a revision to the Maryland SIP. This rulemaking action will not 
    convert to full approval until Maryland has met conditions 1 through 4 
    of this rulemaking. If the conditions are not met within 12 months of 
    today's rulemaking, this rulemaking will convert to a disapproval. Once 
    Maryland satisfies the conditions of the I/M rulemaking and receives 
    final approval of I/M, EPA will grant final approval of the 15% plan 
    (assuming that the other conditions have been met). Conversely, if EPA 
    disapproves the Maryland I/M program, EPA's conditional approval of the 
    15% plan would also convert to a disapproval. EPA would notify Maryland 
    by letter that the conditions have not been met and that the 
    conditional approval of the 15% plan has converted to a disapproval. 
    Each of the conditions must be fulfilled by Maryland and submitted to 
    EPA as an amendment to the SIP. If Maryland corrects the deficiencies 
    within one year of conditional approval, and submits a revised 15% plan 
    as a SIP revision, EPA will conduct rulemaking on that revision.
        Further, EPA makes this conditional approval of the 15% plan 
    contingent upon Maryland maintaining a mandatory I/M program. EPA will 
    not credit any reductions toward the 15% ROP requirement from a 
    voluntary enhanced I/M program. Any changes to I/M which would render 
    the program voluntary or discontinued would cause a shortfall of 
    credits in the 15% reduction goal. Therefore, this action will convert 
    automatically to a disapproval should the State make the enhanced I/M 
    program a voluntary measure.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any state implementation plan. Each request for revision to 
    the state implementation plan shall be considered separately in light 
    of specific technical, economic, and environmental factors and in 
    relation to relevant statutory and regulatory requirements.
    
    [[Page 49616]]
    
        The Office of Management and Budget (OMB) has exempted this 
    regulatory action from E.O. 12866 review.
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
    Alternatively, EPA may certify that the rule will not have a 
    significant impact on a substantial number of small entities. Small 
    entities include small businesses, small not-for-profit enterprises, 
    and government entities with jurisdiction over populations of less than 
    50,000.
        SIP approvals under section 110 and subchapter I, part D of the 
    Clean Air 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, the EPA 
    certifies that it does not have a significant impact on any small 
    entities affected. Moreover, due to the nature of the Federal-State 
    relationship under the Act, preparation of a flexibility analysis would 
    constitute Federal inquiry into the economic reasonableness of state 
    action. The Clean Air Act forbids EPA to base its actions concerning 
    SIPs on such grounds. Union Electric Co. v. U.S. EPA, 427 U.S. 246, 
    255-66 (1976); 42 U.S.C. 7410(a)(2).
        Conditional approvals of SIP submittals under section 110 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, EPA certifies that it does not have a significant impact 
    on any small entities affected. Moreover, due to the nature of the 
    Federal-State relationship under the Act, preparation of a flexibility 
    analysis would constitute Federal inquiry into the economic 
    reasonableness of state action. The Clean Air Act forbids EPA to base 
    its actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
    EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).
        If the conditional approval is converted to a disapproval under 
    section 110(k), based on the State's failure to meet the commitment, it 
    will not affect any existing state requirements applicable to small 
    entities. Federal disapproval of the state submittal does not affect 
    its state-enforceability. Moreover, EPA's disapproval of the submittal 
    does not impose a new Federal requirement. Therefore, EPA certifies 
    that this disapproval action does not have a significant impact on a 
    substantial number of small entities because it does not remove 
    existing requirements nor does it substitute a new federal requirement.
        Under section 202 of the Unfunded Mandates Reform Act of 1995 
    (``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
    must prepare a budgetary impact statement to accompany any proposed or 
    final rule that includes a Federal mandate that may result in estimated 
    costs to State, local, or tribal governments in the aggregate; or to 
    private sector, of $100 million or more. Under section 205, EPA must 
    select the most cost-effective and least burdensome alternative that 
    achieves the objectives of the rule and is consistent with statutory 
    requirements. Section 203 requires EPA to establish a plan for 
    informing and advising any small governments that may be significantly 
    or uniquely impacted by the rule.
        EPA has determined that the approval action promulgated does not 
    include a Federal mandate that may result in estimated costs of $100 
    million or more to either State, local, or tribal governments in the 
    aggregate, or to the private sector. This Federal action approves pre-
    existing requirements under State or local law, and imposes no new 
    requirements. Accordingly, no additional costs to State, local, or 
    tribal governments, or to the private sector, result from this action.
        Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
    Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
    containing this rule and other required information to the U.S. Senate, 
    the U.S. House of Representatives and the Comptroller General of the 
    General Accounting Office prior to publication of the rule in today's 
    Federal Register. This rule is not a ``major rule'' as defined by 5 
    U.S.C. 804(2).
        Under section 307(b)(1) of the Clean Air Act, petitions for 
    judicial review of this action, pertaining to the final conditional 
    interim approval of the 15% plan for the Maryland portion of the 
    Metropolitan Washington D.C. serious ozone nonattainment area, must be 
    filed in the United States Court of Appeals for the appropriate circuit 
    by November 24, 1997. Filing a petition for reconsideration by the 
    Administrator of this final rule does not affect the finality of this 
    rule for the purposes of judicial review nor does it extend the time 
    within which a petition for judicial review may be filed, and shall not 
    postpone the effectiveness of such rule or action. This action may not 
    be challenged later in proceedings to enforce its requirements. (See 
    section 307(b)(2).)
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Incorporation by reference, Ozone.
    
        Dated: September 12, 1997.
    W. Michael McCabe,
    Regional Administrator, Region III.
    
        Chapter I, title 40, of the Code of Federal Regulations is amended 
    as follows:
    
    PART 52--[AMENDED]
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart V--Maryland
    
        2. Section 52.1072 is amended by adding paragraph (b) to read as 
    follows:
    
    
    Sec. 52.1072  Conditional approval.
    
    * * * * *
        (b) The State of Maryland's July 12, 1995 submittal for the 15 
    Percent Rate of Progress Plan (15% plan) for the Maryland portion of 
    the Metropolitan Washington, DC ozone nonattainment area, is 
    conditionally approved based on certain contingencies. The conditions 
    for approvability are as follows:
        (1) Maryland's 15% plan must be revised to account for growth in 
    point sources from 1990-1996.
        (2) Maryland must meet the conditions listed in the October 31, 
    1996 proposed conditional I/M rulemaking notice, remodel the I/M 
    reductions using the following two EPA guidance memos: ``Date by which 
    States Need to Achieve all the Reductions Needed for the 15 Percent 
    Plan from
    I/M and Guidance for Recalculation,'' note from John Seitz and Margo 
    Oge, dated August 13, 1996, and ``Modeling 15 Percent VOC Reductions 
    from I/M in 1999--Supplemental Guidance,'' memorandum from Gay 
    MacGregor and Sally Shaver, dated December 23, 1996.
        (3) Maryland must remodel to determine affirmatively the creditable 
    reductions from RFG, and Tier 1 in accordance with EPA guidance.
        (4) Maryland must submit a SIP revision amending the 15% plan with 
    a demonstration using appropriate documentation methodologies and 
    credit calculations that the 56.4 tons/day reduction, supported through 
    creditable emission reduction measures in the submittal, satisfies 
    Maryland's 15% ROP requirement for the
    
    [[Page 49617]]
    
    Metropolitan Washington, DC nonattainment area.
    
    [FR Doc. 97-25228 Filed 9-22-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Effective Date:
10/23/1997
Published:
09/23/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-25228
Dates:
This final rule is effective on October 23, 1997.
Pages:
49611-49617 (7 pages)
Docket Numbers:
MD 039-3019, FRL-5896-1
PDF File:
97-25228.pdf
CFR: (2)
40 CFR 182(b)(1)(C)
40 CFR 52.1072