97-876. Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of California; Determination Regarding Applicability of Certain Reasonable Further Progress and Attainment Demonstration ...  

  • [Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
    [Rules and Regulations]
    [Pages 2597-2607]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-876]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Parts 52 and 81
    
    [CA-98-1-7196a; FRL-5661-6]
    
    
    Approval and Promulgation of Implementation Plans and Designation 
    of Areas for Air Quality Planning Purposes; State of California; 
    Determination Regarding Applicability of Certain Reasonable Further 
    Progress and Attainment Demonstration Requirements; Monterey Bay Area
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Direct final rule.
    
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    SUMMARY: The EPA is, through direct final procedure, approving the 
    redesignation of the Monterey Bay Area from nonattainment to attainment 
    for ozone. Through this direct final action, EPA is also approving for 
    the Monterey Bay Area the maintenance plan, 1990 base year emissions 
    inventory, emission statement rule, volatile organic compound (VOC) 
    reasonably available control technology (RACT) rule 419 and oxides of 
    nitrogen (NOX) RACT rule 431 as revisions to California's State 
    Implementation Plan (SIP) for ozone. In addition, EPA is determining 
    that the
    
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    Monterey Bay Area has attained the ozone National Ambient Air Quality 
    Standard (NAAQS) and, therefore, that certain reasonable further 
    progress (RFP) and attainment demonstration requirements, along with 
    certain other related requirements of Part D of Title 1 of the Clean 
    Air Act (CAA or Act), are not applicable to the Monterey Bay Area for 
    as long as the area continues to attain the ozone NAAQS, and that upon 
    final redesignation of the Monterey Bay Area, the area will be entirely 
    relieved of these requirements.
        EPA is publishing this document without prior proposal because the 
    Agency views these actions as noncontroversial and anticipates no 
    adverse comments. However, in the proposed rules section of this 
    Federal Register, EPA proposes these actions should adverse or critical 
    comments be filed. If adverse comments are received, EPA will withdraw 
    this final rule and address these comments in a final rule based on the 
    proposed rule published in this Federal Register. The Agency will not 
    issue a second comment period on these actions.
    
    DATES: This action is effective on March 18, 1997, unless adverse or 
    critical comments are received by February 18, 1997. If the effective 
    date is delayed, a timely notice will be published in the Federal 
    Register.
    
    ADDRESSES: Copies of the documents relevant to this action are 
    available for public inspection during normal business hours at the 
    following locations:
    
    Plans Development Section (A-2-2), Air and Toxics Division, U.S. 
    Environmental Protection Agency, Region IX, 75 Hawthorne Street, San 
    Francisco, CA 94105
    California Air Resources Board, 2020 L Street, Sacramento, CA 94814
    Monterey Bay Unified Air Pollution Control District, 24580 Silver Cloud 
    Court, Monterey, CA 93940
    
    FOR FURTHER INFORMATION CONTACT: Julia Barrow, Chief, Plans Development 
    Section (A-2-2), Air & Toxics Division, U.S. Environmental Protection 
    Agency, Region IX, at (415) 744-1207.
    
    SUPPLEMENTARY INFORMATION:
    
    Table of Contents
    
    I. Background
    II. Determination Regarding Reasonable Further Progress, Attainment 
    Demonstration and Related Requirements
    III. Redesignation Evaluation Criteria
    IV. Review of State Plan
        1. Attainment of the Ozone NAAQS
        2. Meeting Applicable Requirements: Section 110 and Part D
        A. Section 110 Requirements
        B. Part D Requirements
        B.1. Subpart 1 of Part D--Section 172(c) Provisions
        B.2. Subpart 1 of Part D--Section 176(c) Conformity Plan 
    Provisions
        B.3. Subpart 2 of Part D--Sections 182(a) and 182(b) 
    Requirements
        3. Fully Approved SIP Under Section 110(k) of the Act
        4. Improvement in Air Quality Due to Permanent and Enforceable 
    Measures
        5. Fully Approved Maintenance Plan Under Section 175A
        A. Attainment Emission Inventory
        B. Demonstration of Maintenance
        C. Verification of Continued Attainment
        D. Contingency Plan
        E. Subsequent Maintenance Plan Revisions
    V. Revisions to the SIP
        1. 1990 Base Year Inventory
        2. Emission Statement Rule
        3. VOC RACT Rule correction
        4. NOX RACT Rule 431
    VI. Conclusion
    
    I. Background
    
        On November 15, 1990, the Clean Air Act Amendments of 1990 were 
    enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C. 
    7401-7671q. The ozone nonattainment designation for the Monterey Bay 
    Area continued by operation of law according to section 107(d)(1)(C)(i) 
    of the Clean Air Act, as amended in 1990; furthermore, the area was 
    classified by operation of law as moderate for ozone under section 
    181(a)(1). See 56 FR 56694 (Nov. 6, 1991), codified at 40 CFR 81.305.
        The District has collected ambient monitoring data that show no 
    violations of the ozone NAAQS (See discussion in Section IV.1. below). 
    Accordingly, on July 14, 1994, California requested redesignation of 
    the area to attainment with respect to the ozone NAAQS and submitted an 
    ozone maintenance SIP for the Monterey Bay Area. The Monterey Bay 
    Unified Air Pollution Control Agency (MBUAPCD or the District), the 
    Association of Monterey Bay Area Governments (AMBAG), and the Council 
    of San Benito County Governments (CSBCG) prepared and adopted the 
    maintenance plan on May 25, 1994, May 11, 1994 and May 5, 1994, 
    respectively. The plan and redesignation request were subsequently 
    submitted to CARB on June 1, 1994, and CARB submitted the plan and 
    redesignation request to EPA on July 14, 1994. On November 14, 1994, 
    CARB submitted a revision to the maintenance plan, adopted by MBUAPCD, 
    AMBAG, and CSBCG on October 19, 1994, October 12, 1994 and October 6, 
    1994, respectively.
        All SIP submittals to EPA must meet certain minimum administrative 
    and technical criteria as set forth in 40 CFR Part 51, Appendix V (the 
    ``completeness'' criteria) in order for the Administrator to review and 
    take action on the submittal. Section 110(k)(1) of the Act describes 
    the mandatory time frame for EPA's determination of completeness and 
    rulemaking action on plan submissions. In accordance with section 
    110(k)(1)(B) of the Act, the Monterey Bay Area ozone redesignation 
    request and maintenance plan was deemed complete by operation of law on 
    February 14, 1995.
    
    II. Determination Regarding Reasonable Further Progress, Attainment 
    Demonstration and Related Requirements
    
        The EPA is determining that the Monterey Bay Area ozone 
    nonattainment area has attained the NAAQS for ozone. On the basis of 
    this determination, EPA is also determining that certain RFP and 
    attainment demonstration requirements, along with certain other related 
    requirements of Part D of Title 1 of the CAA are not applicable to the 
    Monterey Bay Area for so long as the area continues to attain the ozone 
    NAAQS.
        Subpart 2 of Part D of Title 1 contains various air quality 
    planning and SIP submission requirements for ozone nonattainment areas. 
    EPA believes it is reasonable to interpret provisions regarding RFP and 
    attainment demonstrations, along with certain other related provisions, 
    so as to not require SIP submissions if an ozone nonattainment area 
    subject to those requirements is monitoring attainment of the ozone 
    standard (i.e., attainment of the NAAQS demonstrated with three 
    consecutive years of air quality monitoring data at each monitor). As 
    described below, EPA has previously interpreted the general provisions 
    of subpart 1 of part D of Title 1 (sections 171 and 172) so as not to 
    require the submission of SIP revisions concerning RFP, attainment 
    demonstrations, or related contingency measures. As explained in a 
    memorandum dated May 10, 1995, from John Seitz to the Regional Air 
    Division Directors, entitled ``Reasonable Further Progress, Attainment 
    Demonstration and Related Requirements for Ozone Nonattainment Areas 
    Meeting the National Ambient Air Quality Standard,'' EPA believes it is 
    appropriate to interpret the more specific RFP, attainment 
    demonstration and related provisions of subpart 2 in the same manner.
        First, with respect to RFP, section 171(1) states that, for 
    purposes of Part D of Title 1, RFP ``means such annual incremental 
    reductions in emissions of the relevant air pollutant as are required 
    by this part or may reasonably be
    
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    required by the Administrator for the purpose of ensuring attainment of 
    the applicable (NAAQS) by the applicable date.'' Thus, whether dealing 
    with the general RFP requirement of section 172(c)(2), or the more 
    specific RFP requirements of subpart 2 for classified ozone 
    nonattainment areas (such as the 15 percent plan requirement of section 
    182(b)(1)), the stated purpose of RFP is to ensure attainment by the 
    applicable attainment date.1 If an area has in fact attained the 
    standard, the stated purpose of the RFP requirement will have already 
    been fulfilled and EPA does not believe that the area need submit 
    revisions providing for the further emission reductions described in 
    the RFP provisions of section 182(b)(1).
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        \1\ EPA notes that paragraph (1) of subsection 182(b) is 
    entitled ``PLAN PROVISIONS FOR REASONABLE FURTHER PROGRESS'' and 
    that subparagraph (B) of paragraph 182(c)(2) is entitled 
    ``REASONABLE FURTHER PROGRESS DEMONSTRATION,'' thereby making it 
    clear that both the 15 percent plan requirement of section 182(b)(1) 
    and the 3 percent per year requirement of section 182(c)(2) are 
    specific varieties of RFP requirements.
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        EPA notes that the Agency took this view with respect to the 
    general RFP requirement of section 172(c)(2) in the General Preamble 
    for the Interpretation of Title 1 of the Clean Air Act Amendments of 
    1990 (57 FR 13498, (April 16, 1992)), and that the Agency is now 
    extending that interpretation to the specific provisions of subpart 2. 
    In the General Preamble, EPA stated, in the context of a discussion of 
    the requirements applicable to the evaluation of requests to 
    redesignate nonattainment areas to attainment, that the ``requirements 
    for RFP will not apply in evaluating a request for redesignation to 
    attainment since, at a minimum, the air quality data for the area must 
    show that the area has already attained. Showing that the State will 
    make RFP towards attainment will, therefore, have no meaning at that 
    point.'' (57 FR 13564) 2
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        \2\ see also ``Procedures for Processing Requests to Redesignate 
    Areas to Attainment,'' from John Calcagni, Director, Air Quality 
    Management Division, to Regional Air Division Directors, September 
    4, 1992, at page 6 (stating that the ``requirements for reasonable 
    further progress * * * will not apply for redesignations because 
    they only have meaning for areas not attaining the standard'') 
    (hereinafter referred to as ``September 1992 Calcagni memorandum'').
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        Second, with respect to the attainment demonstration requirements 
    of section 182(b)(1), an analogous rationale leads to the same result. 
    Section 182(b)(1) requires that the plan provide for ``such specific 
    annual reductions in emission * * * as necessary to attain the (NAAQS) 
    by the attainment date applicable under this Act.'' As with RFP 
    requirements, if an area has in fact monitored attainment of the 
    standard, EPA believes there is no need for an area to make a further 
    submission containing additional measures to achieve attainment. This 
    is also consistent with the interpretation of certain section 172(c) 
    requirements provided by EPA in the General Preamble to Title 1, as EPA 
    stated there that no other measures to provide for attainment would be 
    needed by areas seeking redesignation to attainment since ``attainment 
    will have been reached.'' (57 FR 13564; see also September 1992 
    Calcagni memorandum at page 6.) Upon attainment of the NAAQS, the focus 
    of state planning efforts shifts to the maintenance of the NAAQS and 
    the development of a maintenance plan under section 175A. 3
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        \3\ The lack of a requirement to submit the SIP revisions exists 
    only for as long as the area designated nonattainment continues to 
    attain the standard. If EPA subsequently determines that such an 
    area has violated the NAAQS, the basis for the determination that 
    the area need not make the pertinent SIP revision would no longer 
    exist. The EPA would then notify the State of that determination and 
    would also provide notice to the public in the Federal Register. 
    Such a determination would mean that the area would have to address 
    the pertinent SIP requirements within a reasonable amount of time, 
    which EPA would establish taking into account the individual 
    circumstances surrounding the particular SIP submissions at issue. 
    Thus, a determination that an area need not submit one of the SIP 
    submittals amounts to no more than a suspension of the requirement 
    for so long as the area continues to attain the standard. However, 
    if the area continues to attain the standard and submits a request 
    for redesignation to attainment, upon final approval of the 
    redesignation to attainment the area is entirely relieved of these 
    requirements.
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        The determination with regard to the applicability of certain RFP 
    and attainment demonstration requirements does not shield an area from 
    future EPA action to require emissions reductions from sources in the 
    area where there is evidence, such as photochemical grid modeling, 
    showing that emissions from sources in the area contribute 
    significantly to nonattainment in, or interfere with maintenance by, 
    other nonattainment areas. EPA has authority under sections 
    110(a)(2)(A) and 110(a)(2)(D) to require such emissions reductions if 
    necessary and appropriate to deal with transport situations.
    
    III. Redesignation Evaluation Criteria
    
        The 1990 CAA Amendments revised section 107(d)(3)(E) to provide 
    five specific requirements that an area must meet in order to be 
    redesignated from nonattainment to attainment: (1) The area must have 
    attained the applicable NAAQS; (2) the area has met all relevant 
    requirements under section 110 and Part D of the Act; (3) the area has 
    a fully approved SIP under section 110(k) of the Act; (4) the air 
    quality improvement must be permanent and enforceable; and, (5) the 
    area must have a fully approved maintenance plan pursuant to section 
    175A of the Act. Section 107(d)(3)(D) allows a Governor to initiate the 
    redesignation process for an area to apply for attainment status.
    
    IV. Review of State Submittal
    
        The California redesignation request for the Monterey Bay Area 
    meets the five requirements of section 107(d)(3)(E), noted above. 
    Following is a brief description of how the State has fulfilled each of 
    these requirements.
    
    1. Attainment of the Ozone NAAQS
    
        Attainment of the ozone NAAQS is determined based on the expected 
    number of exceedances in a calendar year. The method for determining 
    attainment of the ozone NAAQS is contained in 40 CFR 50.9 and Appendix 
    H to that Section. The simplest method by which expected exceedances 
    are calculated is by averaging actual exceedances at each monitoring 
    site over a rolling three year period. An area is in attainment of the 
    standard if this average results in expected exceedances for each 
    monitoring site of 1.0 or less per calendar year. Appendix H provides 
    the formula used to estimate the expected number of exceedances for 
    each year.
        The State of California's request is based on actual quality-
    assured ozone air quality data which is relevant to both the 
    maintenance plan and to the redesignation request. This data comes from 
    the District's State and Local Air Monitoring Station (SLAMS) network. 
    The request is based on ambient air ozone monitoring data for calendar 
    years 1988 through 1990. This data clearly shows the expected 
    exceedance rate for the ozone standard of less than 1.0 per year for 
    each of the monitors, including the monitor on which the nonattainment 
    designation was based. Monitoring data also shows that no violations 
    have occurred in the network area through 1995. The District has also 
    committed to continue monitoring in the area in accordance with 40 CFR 
    part 58.
    
    2. Meeting Applicable Requirements: Section 110 and Part D
    
        On December 20, 1983 (48 FR 56215), EPA fully approved California's 
    SIP for the Monterey Bay Area as meeting the requirements of section 
    110(a)(2) and Part D of the 1977 Act, with the exception of the motor 
    vehicle inspection and maintenance (I/M) program which was signed for 
    final
    
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    approval by the Regional Administrator on September 25, 1996. The 1990 
    amended Act, however, modified section 110(a)(2) and, under Part D, 
    revised section 172 and added new requirements for all nonattainment 
    areas. Therefore, for purposes of redesignation, to meet the 
    requirement that the SIP contain all applicable requirements under the 
    Act, EPA has reviewed the SIP to ensure that it contains all measures 
    that were due under the amended Act prior to or at the time the State 
    submitted its redesignation request, as set forth in EPA policy. 4 
    As explained in Section II. of this document, the RFP and attainment 
    demonstration requirements are not applicable for areas meeting the 
    ambient air quality standard because these requirements only have 
    meaning for areas not attaining the standard.
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        \4\ ``Procedures for Processing Requests to Redesignate Areas to 
    Attainment,'' John Calcagni, Director, Air Quality Management 
    Division, September 4, 1992.
        ``State Implementation Plan (SIP) Actions Submitted in Response 
    to Clean Air Act (CAA) Deadlines,'' John Calcagni, Director, Air 
    Quality Management Division, October 28, 1992.
        ``State Implementation Plan (SIP) Requirements for Areas 
    Submitted Requests for Redesignation to Attainment of the Ozone and 
    Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) 
    on or after November 15, 1992,'' Michael H. Shapiro, Acting 
    Assistant Administrator, September 17, 1993.
        ``Reasonable Further Progress, Attainment Demonstration, and 
    Related Requirements for Ozone Nonattainment Areas Meeting the Ozone 
    National Ambient Air Quality Standard,'' John S. Seitz, Director, 
    Office of Air Quality Planning and Standards, May 10, 1995.
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        All of the SIP requirements must be met by the District and 
    approved into the SIP by EPA by the time the area is redesignated.
    
    A. Section 110 Requirements
    
        Although section 110 was amended in 1990, the Monterey Bay Area SIP 
    meets the requirements of amended section 110(a)(2). A number of the 
    requirements did not change in substance and, therefore, EPA believes 
    that the pre-amendment EPA approved SIP met these requirements. As to 
    those requirements that were amended, (see 57 FR 27936 and 23939 (June 
    23, 1993)), many are duplicative of other requirements of the Act. EPA 
    has analyzed the SIP and determined that it is consistent with the 
    requirements of amended section 110(a)(2). The SIP contains enforceable 
    emission limitations, requires monitoring, compiling, and analyzing of 
    ambient air quality data, requires preconstruction review of new major 
    stationary sources and major modifications to existing ones, provides 
    for adequate funding, staff, and associated resources necessary to 
    implement its requirements, and requires stationary source emissions 
    monitoring and reporting.
    
    B. Part D Requirements
    
        Before the Monterey Bay Area may be redesignated to attainment, it 
    also must have fulfilled the applicable requirements of Part D of the 
    Act. Under Part D, an area's classification indicates the requirements 
    to which it will be subject. Subpart 1 of Part D sets forth the basic 
    nonattainment requirements applicable to all nonattainment areas, 
    classified as well as nonclassifiable. Subpart 2 of Part D establishes 
    additional requirements for nonattainment areas classified under table 
    1 of section 181(a)(1) or table 3 of section 186(a). The Monterey Bay 
    Area was classified under table 1 of section 181(a)(1) as a moderate 
    ozone nonattainment area (See 56 FR 56694, codified at 40 CFR 81.305). 
    Therefore, in order to be redesignated to attainment, the District must 
    meet the applicable requirements of Subpart 1 of Part D--specifically 
    sections 172(c) and 176, as well as the applicable requirements of 
    Subpart 2 of Part D.
    
    B.1. Subpart 1 of Part D--Section 172(c) Provisions
    
        Under section 172(b), the Administrator established that States 
    containing nonattainment areas shall submit a plan or plan revision 
    meeting the applicable requirements of section 172(c) no later than 
    three years after an area is designated as nonattainment, unless EPA 
    establishes an earlier date. As discussed in section II. of this 
    Federal Register document, EPA has determined that the section 
    172(c)(2) reasonable further progress (RFP) requirement is not 
    applicable for the Monterey Bay Area based on the area's attainment of 
    the ozone NAAQS. Also, the 172(c)(9) contingency measures and 
    additional 172(c)(1) non-RACT reasonable available control measures 
    (RACM) are not applicable, since those measures are specifically 
    related to RFP.
        The 172(c)(3) emissions inventory requirement has been met by the 
    submission and approval of the 1990 base year emissions inventory 
    discussed in section V.1. of this Federal Register document.
        As for the 172(c)(5) New Source Review (NSR) requirement, the 
    Monterey Bay Area NSR program was approved on July 11, 1996 (61 FR 
    36501).
        The 172(d) requirements for SIP revisions pursuant to section 
    110(k)(5) have been met and are discussed below in section 2.B3 and 
    further in sections V.3 and 4. (VOC and NOX RACT rules).
        Finally, for purposes of redesignation, the Monterey Bay Area SIP 
    was reviewed to ensure that all requirements of section 110(a)(2), 
    containing general SIP elements were satisfied. The MBUAPCD SIP 
    approved under section 110 of the Act (40 CFR 52.220) and the revisions 
    to the SIP approved in section V. of this Federal Register document 
    satisfy all applicable Part D, Title 1 requirements for moderate area 
    ozone SIPs.
    
    B.2. Subpart 1 of Part D--Section 176(c) Conformity Plan Provisions
    
        Section 176(c) of the CAA requires states to revise their SIPs to 
    establish criteria and procedures to ensure that Federal actions, 
    before they are taken, conform to the air quality planning goals in the 
    applicable SIP. The requirement to determine conformity applies to 
    transportation plans, programs and projects developed, funded or 
    approved under Title 23 U.S.C. of the Federal Transit Act 
    (``transportation conformity''). Section 176 further provides that the 
    conformity revisions to be submitted by the States must be consistent 
    with Federal conformity regulations that the CAA required EPA to 
    promulgate. 5 These conformity rules require that States adopt 
    both transportation and general conformity provisions in the SIP for 
    areas designated nonattainment or subject to a maintenance plan 
    approved under CAA section 175A. EPA believes it is reasonable to 
    interpret the conformity requirements as not being applicable 
    requirements for purposes of evaluating the redesignation request under 
    section 107(d). The rationale for this is based on a combination of two
    
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    factors. First, the requirement to submit SIP revisions to comply with 
    the conformity provisions of the Act continues to apply to areas after 
    redesignation to attainment. Therefore, the State remains obligated to 
    adopt the transportation and general conformity rules even after 
    redesignation and would risk sanctions for failure to do so. Second, 
    EPA's Federal conformity rules require the performance of conformity 
    analyses in the absence of state-adopted rules. Therefore, a delay in 
    adopting State rules does not relieve an area from the obligation to 
    implement conformity requirements.
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        \5\ Congress provided for the State revisions to be submitted 
    one year after the date for promulgation of final EPA conformity 
    regulations. When that date passed without such promulgation, EPA's 
    General Preamble for the Implementation of Title 1 informed States 
    that the conformity regulation would establish a submittal date (see 
    57 FR 13498, 13557 (April 16, 1992)). EPA promulgated final 
    transportation conformity regulations on November 24, 1993 (58 FR 
    62118), and general conformity regulations on November 30, 1993 (58 
    FR 63214). Pursuant to 40 CFR 51.851 of the general conformity rule, 
    the State of California was required to submit a SIP revisions 
    containing transportation and general conformity criteria and 
    procedures consistent with those established in the Federal rule by 
    November 25, 1994, and December 1, 1994, respectively. The 
    conformity rules for California were submitted to EPA, Region 9 by 
    some of the local districts. Because EPA and Department of 
    Transportation (DOT) have already amended the conformity regulation 
    twice and have proposed a third set of amendments, EPA is allowing 
    areas to incorporate all revisions to their conformity SIPs within 
    one year of the publication of the Federal Register on the new 
    regulation amendments. The anticipated submittal date of the new 
    conformity SIP revisions in response to this amendment to the 
    conformity regulations is early 1998.
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        Because areas are subject to the conformity requirements regardless 
    of whether they are redesignated to attainment and must implement 
    conformity under Federal rules if State rules are not yet adopted, EPA 
    believes it is reasonable to view these requirements as not being 
    applicable requirements for purposes of evaluating a redesignation 
    request.
    
    B.3. Subpart 2 of Part D--Section 182(a) and 182(b) Requirements
    
        As a moderate ozone nonattainment area, the Monterey Bay Area must 
    meet the requirements for marginal areas under Subpart 2 of Part D, 
    section 182(a) as well as the requirements for moderate areas contained 
    in section 182(b). As discussed in Section II. of this Federal Register 
    document, EPA has determined that the RFP requirement for a moderate 
    ozone nonattainment area under Subpart 2 of Part D is not applicable to 
    the Monterey Bay Area based on the area's attainment of the ozone 
    NAAQS.
        For purposes of redesignation, the Monterey Bay Area must meet only 
    those requirements of sections 182 (a) and (b) which were due prior to 
    or at the time of the submittal of a complete redesignation request. 
    Monterey must meet the section 182(a)(1) requirement for an emission 
    inventory, the section 182(a)(2)(a) requirement for Reasonably 
    Available Control Technology (RACT) rules and the section 182(a)(3)(b) 
    requirement for a rule regarding emission statements for stationary 
    sources. In sections V.1., 2., 3. and 4. of this Federal Register 
    document, EPA is approving revisions to the SIP meeting the 
    requirements mentioned above. EPA approval of these revisions completes 
    the District's requirements to meet all applicable requirements of 
    section 110 and Part D of the Act.
    
    3. Fully Approved SIP Under Section 110(k) of the Act
    
        In order for EPA to take final action approving the redesignation 
    request, the District must have a fully approved SIP under section 
    110(k), which also meets the applicable requirements of section 110 and 
    Part D. As discussed in Section 2.A. above, EPA approved numerous 
    provisions of the Monterey Bay Area SIP under the pre-amended Act and 
    finds that these provisions meet the requirements of section 110(a)(2). 
    Also, EPA approval of the emissions inventory and emission statement 
    rule (Regulation III, Rule 300, parts 4.4-4.4.3) and the District's 
    amended VOC RACT rule 419 and the NOX RACT rule 431, as revisions 
    to the SIP as required by sections 182 (a) and (b), fulfills the 
    requirement that the District have a fully approved SIP under section 
    110(k).
    
    4. Improvement in Air Quality Due to Permanent and Enforceable Measures
    
        Under the pre-amended Act, EPA approved California's SIP control 
    strategy for the Monterey Bay Area nonattainment area, which satisfies 
    the requirement that the rules are permanent and enforceable. The 
    Monterey Bay Area attained the ozone NAAQS in 1990, therefore, emission 
    reductions achieved as a result of those rules are permanent. Since 
    enactment of the 1990 Amendments, the State has made additional 
    submittals as identified in the discussion of the section 182(b) 
    requirements above and in Table 1.A below.
    
                                                        Table 1.A                                                   
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                  Rule number, title                 Adoption                       EPA approval                    
    ----------------------------------------------------------------------------------------------------------------
    416-Organic Solvents.........................     04/20/94  02/12/96, 61 FR 5288.                               
    417-Storage of Organic Liquids...............     08/25/93  02/15/95, 60 FR 8565.                               
    418-Transfer of Gasoline into Stationary          08/25/93  02/15/95, 60 FR 8565.                               
     Storage.                                                                                                       
    420-Effluent Oil Water Separators............     08/25/93  02/09/96, 61 FR 4890.                               
    425-Use of Cutback Asphalt...................     08/25/93  02/05/96, 61 FR 4215.                               
    426-Architectural Coatings...................     08/25/93  02/09/96, 61 FR 4890.                               
    427-Steam Drive Crude Oil Production Wells...     08/25/93  02/15/95, 60 FR 8565.                               
    430-Leather Processing Operations............     05/25/94  10/25/95, 60 FR 54595                               
    433-Organic Solvent Cleaning.................     06/15/95  02/12/96, 61 FR 5288.                               
    434-Coating of Metal Parts & Products........     06/15/95  02/12/96, 61 FR 5288.                               
    1002-Transfer of Gasoline into Vehicle Fuel       11/23/94  02/09/96, 61 FR 4892.                               
     Tanks.                                                                                                         
    ----------------------------------------------------------------------------------------------------------------
    
        In addition, EPA finds that a comparison of the Monterey emission 
    inventories by source category (see Table 1.B below), reasonably 
    attributes the improvement in air quality to emission reductions from 
    controls which are permanent, and are enforceable as they have been 
    adopted into the SIP and approved by EPA.
    
                                                        Table 1.B                                                   
    ----------------------------------------------------------------------------------------------------------------
                 Pollutant                         Source category                 1979         1987         1990   
    ----------------------------------------------------------------------------------------------------------------
    ROG*(TPD).........................  Stationary...........................           67           62           50
                                        Mobile...............................           41           44           46
                                        Total................................          108          106           96
    NOX...............................  Stationary...........................           82           34           32
                                        Mobile...............................           46           60           61
                                        Total................................          128           94          93 
    ----------------------------------------------------------------------------------------------------------------
    *ROG (Reactive Organic Gases) mainly differs from VOC in that it includes ethane. Ethane is solely a product of 
      combustion; VOC accounts for 98.5 percent of combustion.                                                      
    
    
    [[Page 2602]]
    
        The actual reduction in overall emissions from 1979 to 1990 was 12 
    tons per day (TPD) of VOC and 35 TPD of NOX, which reflects growth 
    in emissions from some sources and reductions in overall emissions due 
    to all control measures. EPA finds that the combination of existing 
    EPA-approved SIP and Federal measures contributes to the permanence and 
    enforceability of reductions in ambient ozone levels that have allowed 
    the area to attain the NAAQS.
    
    5. Fully Approved Maintenance Plan Under Section 175A
    
        EPA is approving the State's maintenance plan for the Monterey Bay 
    Area because EPA finds that the District's submittal meets the 
    requirements of section 175A. Section 175A of the Act sets forth the 
    elements of a maintenance plan for areas seeking redesignation from 
    nonattainment to attainment. The plan must demonstrate continued 
    attainment of the applicable NAAQS for at least ten years after the 
    Administrator approves a redesignation to attainment. Eight years after 
    the redesignation, the State must submit a revised maintenance plan 
    which demonstrates attainment for the ten years following the initial 
    ten-year period. To provide for the possibility of future NAAQS 
    violations, the maintenance plan must contain contingency measures, 
    with a schedule for implementation adequate to assure prompt correction 
    of any air quality problems. Each of the section 175A plan requirements 
    is discussed below.
    
    5.A. Attainment Emissions Inventory
    
        The MBUAPCD adopted comprehensive inventories of VOC, and NOX 
    emissions from area, stationary, and mobile sources using 1990 as the 
    base year for calculations to demonstrate maintenance of the ozone 
    NAAQS. EPA has determined that 1990 is an appropriate year on which to 
    base attainment level emissions because EPA policy allows States to 
    select any one of the three years in the attainment period as the 
    attainment year inventory.6
    ---------------------------------------------------------------------------
    
        \6\ ``Procedures for Processing Requests to Redesignate Areas to 
    Attainment,'' John Calcagni, Director, Air Quality Management 
    Division, September 4, 1992.
    ---------------------------------------------------------------------------
    
        The latest revised annual and peak ozone season 1990 comprehensive 
    inventories of actual emissions were adopted by the Monterey Bay 
    Unified Air Pollution Control District (the District) on October 19, 
    1994 and submitted by CARB to EPA on November 15, 1994 as a SIP 
    revision. CARB provided a more detailed clarification of the 
    inventories on March 30, 1995. EPA notified the State of the 
    completeness of the emissions inventories in a letter dated April 18, 
    1995.
        The State submittal contains the detailed inventory data and 
    summaries by county and source category. The District provided the 
    stationary source estimates, and area source emissions for each source 
    category based on emission and activity factors for each county in the 
    nonattainment area. These factors are cited or their sources referenced 
    in Methods for Assessing Area Source Emissions in California, 
    California Air Resources Board, September 1991. CARB based on-road 
    mobile source emission and activity estimates on CARB's EMFAC7F and 
    BURDEN7C models, respectively.
        The comprehensive base year emissions inventory discussed above has 
    been entered into the Aerometric Information Retrieval System (AIRS). 
    AIRS is EPA's computerized data storage system for air quality and 
    emission source data. EPA, under contract with Radian Corporation, has 
    entered the base year emissions inventory of stationary sources into 
    AIRS and has also prepared computer software to convert the California 
    Emission Data System stationary source data to AIRS/AFS format for 
    entry into AIRS. California is responsible for entering 1990 area and 
    mobile source (AMS) data into AIRS according to a fiscal year 1994 
    Clean Air Act section 105 air program grant agreement.
    
    5.B. Demonstration of Maintenance
    
        The MBUAPCD developed projected VOC and NOX emissions 
    inventories based on the 1990 actual inventory for the years 1995, 
    2000, 2005 and 2010 by applying growth factors in accordance with EPA 
    guidance. The projected inventories, provided in Table 2.A. and 2.B. 
    below, show that the ozone standard will be maintained and that 
    emissions are not expected to exceed the level of the 1990 inventory 
    during the maintenance period.
    
    5.C. Verification of Continued Attainment
    
        The plan demonstrates attainment of the NAAQS for at least 10 years 
    after the area is redesignated. The tables below show the forecasts for 
    ozone precursors VOC (Table 2.A.) and NOX (Table 2.B.).
    
                                  Table 2.A.--VOC Emissions for Average Summer Weekday*                             
                                                     [Tons Per Day]                                                 
    ----------------------------------------------------------------------------------------------------------------
                        Source categories                         1990       1995       2000       2005       2010  
    ----------------------------------------------------------------------------------------------------------------
    Stationary:                                                                                                     
        Fuel Combustion......................................      00.86      00.80      00.86      00.87      00.88
        Waste Burning........................................      00.95      01.02      01.09      01.17      01.23
        Solvent Use..........................................      21.45      20.60      22.29      24.13      25.82
        Petroleum Processes, Storage & Transfer..............      06.07      01.72      02.21      02.22      02.22
        Industrial Processes.................................      00.49      00.56      00.58      00.63      00.66
        Miscellaneous Processes..............................      19.68      19.48      19.61      14.82      15.05
        Banked Emissions.....................................      00.24      00.24      00.24      00.24      00.24
                                                              ------------------------------------------------------
            Stationary total.................................      49.74      44.42      46.88      44.08      46.10
                                                              ======================================================
    Mobile:                                                                                                         
         On-Road.............................................      39.09      20.74      17.75     13.340      09.95
        Non-Road.............................................      06.88      06.31      05.71      05.86      05.90
                                                              ------------------------------------------------------
            Mobile total.....................................      45.97      27.05      23.46      19.20      15.85
                                                              ======================================================
            Total............................................      95.71      71.47      70.34      63.28      61.95
    ----------------------------------------------------------------------------------------------------------------
    *Anthropogenic sources of ozone precursors.                                                                     
    
    
    [[Page 2603]]
    
    
                                  Table 2.B.--NOX Emissions for Average Summer Weekday*                             
                                                     [Tons Per Day]                                                 
    ----------------------------------------------------------------------------------------------------------------
                        Source categories                         1990       1995       2000       2005       2010  
    ----------------------------------------------------------------------------------------------------------------
    Stationary:                                                                                                     
        Fuel Combustion......................................      29.79      26.40      28.18      21.27      27.50
        Waste Burning........................................      00.15      00.16      00.17      00.18      00.19
        Petro. Processes, Storage & Transfer.................      00.02      00.02      00.02      00.02      00.02
        Industrial Processes.................................      02.33      02.77      02.98      03.25      03.48
        Miscellaneous Processes..............................      00.01      00.01      00.01      00.01      00.01
        Banked Emissions.....................................      00.14      00.14      00.14      00.14      00.14
                                                              ------------------------------------------------------
            Stationary total.................................      32.44      29.50      31.50      24.87      26.34
                                                              ======================================================
    Mobile:                                                                                                         
         On-Road.............................................      43.13      28.99      27.77      25.54      24.86
        Non-Road.............................................      17.34      17.46      18.31      18.90      19.37
                                                              ------------------------------------------------------
            Mobile total.....................................      60.48      46.45      46.08      44.44      44.23
                                                              ======================================================
            Total............................................      92.92      75.95      77.58      69.31     70.57 
    ----------------------------------------------------------------------------------------------------------------
    *Anthropogenic sources of ozone precursors.                                                                     
    
        The projections show that the area will continue to demonstrate 
    attainment of the ozone NAAQS with current control measures. The 
    Monterey Bay Area is not subject to additional emission reduction 
    requirements for the CAA (since the area can demonstrate maintenance of 
    the NAAQS for the 10 year maintenance period without additional 
    controls). In addition, the emission inventory projections contained in 
    the maintenance plan show a decrease in VOC emissions and NOX 
    emissions.
        Continued attainment of the ozone NAAQS in the Monterey Bay Area 
    depends, in part, on the State's efforts to track indicators of 
    continued attainment during the maintenance period. MBUAPCD will 
    analyze annually the three most recent consecutive years of ambient air 
    quality monitoring data to verify continued attainment of the national 
    ozone standard, in accordance with 40 CFR part 50, appendix H. The 
    District will submit to EPA an annual report of data collected from the 
    previous calendar year. This information, in conjunction with the 
    reports from the previous two years, will provide adequate information 
    for determining continued compliance with the ozone NAAQS.
    
    5.D. Contingency Plan
    
        The level of VOC and NOX emissions in the Monterey Bay Area 
    will largely determine its ability to stay in compliance with the ozone 
    NAAQS in the future. Despite best efforts to demonstrate continued 
    compliance with the NAAQS, the ambient air pollutant concentrations may 
    exceed or violate the NAAQS. Therefore, as required pursuant to section 
    175A, the District has developed a contingency plan, including specific 
    measures with a schedule for implementation in the event of a future 
    ozone air quality problem. The District has chosen three monitored 
    exceedances of the NAAQS at one monitoring site within a consecutive 
    three year period as the trigger for the contingency plan.
        At the time of local adoption of the redesignation request and 
    maintenance plan, the District identified several VOC and NOX 
    stationary source control measures as the contingency measures which 
    would be implemented should the triggering event occur at a monitoring 
    site during the maintenance period. Tables 3.A. and 3.B., below, 
    summarize the contingency control measures. Rules to implement these 
    controls are scheduled for adoption through 1997. However, should the 
    triggering threshold described above occur before adoption, adoption 
    would be scheduled within six months of the triggering event. When 
    contingency measures are triggered, implementation of the measures will 
    occur within 6 to 24 months of rule adoption.
    
                       Table 3.A.VOC--Contingency Measures                  
    ------------------------------------------------------------------------
                                                              VOC reductions
                      Title                   Action needed       (TPD)     
    ------------------------------------------------------------------------
    Adhesives...............................  Adopt                  .39-.4 
    Architectural Coatings (rule 426).......  Revise                    .35 
    Automobile Refinishing..................  Adopt               1.04-1.12 
    Cutback Asphalt Paving (rule 425).......  Revise              2.15-2.39 
    Disposal of Organic Wastes/Hazardous      Adopt                     N/A 
     Waste Minimization.                                                    
    Fiberglass Fabrication/Polyester Resin    Adopt                     .02 
     Use.                                                                   
    Fixed & Floating Roof Petroleum Storage   Revise                    .23 
     Tanks (rule 417).                                                      
    Fugitive Emissions from Petroleum         Adopt                     .06 
     Production.                                                            
    Furniture Staining......................  Adopt                     .04 
    Graphic Arts Printing & Coating           Adopt                     .06 
     Operations.                                                            
    Landfill Gas Collection Systems.........  Adopt               1.52-1.63 
    Marine Coatings.........................  Adopt                     .01 
    Petroleum Production & Separation.......  Adopt                     N/A 
    Petroleum Sumps, Wastewater Separators &  Adopt                     .08 
     Well Cellars.                                                          
    Plastic Coatings........................  Adopt                     N/A 
    Semiconductor Manufacturing Operations..  Adopt                     N/A 
    
    [[Page 2604]]
    
                                                                            
    Spray Booths-Misc. Coating & Cleanup      Revise              1.55-1.61 
     Solvents (rule 429).                                                   
    Wood Products Coatings..................  Adopt                     .19 
    ------------------------------------------------------------------------
    
    
                      Table 3.b.--NOX Contingency Measures                  
    ------------------------------------------------------------------------
                                                              NOx reductions
                      Title                   Action needed       (TPD)     
    ------------------------------------------------------------------------
    Boilers, Steam Generators...............  Adopt                3.36-3.4 
    Kilns...................................  Adopt                3.2-3.32 
    Stationary Internal Combustion Engines..  Adopt                     .97 
    ------------------------------------------------------------------------
    
    5E. Subsequent Maintenance Plan Revisions
    
        In accordance with section 175A(b) of the Act, the District has 
    agreed to submit a revised maintenance SIP eight years after the area 
    is redesignated to attainment. Such revised SIP will provide for 
    maintenance for an additional ten year period.
    
    V. Revisions to the SIP
    
    1. 1990 Base Year Inventory
    
        CARB submitted a revised 1990 base year emissions inventory to EPA 
    on March 30, 1995 as required under section 182(a)(1). Table 4 below 
    summarizes the 1990 peak ozone season weekday inventories submitted on 
    March 30, 1995.
    
                                            1990 Base Year Inventory Summary*                                       
                                                     [Tons Per Day]                                                 
    ----------------------------------------------------------------------------------------------------------------
                                       Stationary                  Onroad      Offroad                              
      1990 peak ozone season (tpd)       point      Stationary     mobile       mobile    Anthropogenic    Biogenic 
                                         source    area source     source       source        total         source  
    ----------------------------------------------------------------------------------------------------------------
    VOC.............................         4.06        51.23        37.08         6.41         98.80        171.00
    NOX.............................        25.38         6.93        41.21        17.53         91.06   ...........
    CO..............................        34.62        22.62       309.81        68.97        436.01   ...........
    ----------------------------------------------------------------------------------------------------------------
    
        Section 182(a)(1) of the CAA requires States with ozone 
    nonattainment areas classified marginal and above to submit base year 
    (1990) emission inventories by November 15, 1992, as a revision to the 
    SIP. The inventories are to be comprehensive, accurate, and current 
    inventories of actual emissions from all sources, in accordance with 
    the guidance provided by the EPA Administrator.
        The State submitted base year annual and peak season inventories 
    for each of the ozone precursors on November 17, 1992 and subsequently 
    revised those inventories. The latest submittal of revised annual 
    average and peak ozone season average weekday 1990 inventories for VOC, 
    NOX, and carbon monoxide (CO) were submitted on March 30, 1995 as 
    clarification of the inventories adopted by the MBUAPCD Board on 
    October 19, 1994 and submitted by the State to EPA on November 15, 
    1994.
    
    2. Emission Statement Rule
    
        The EPA is approving Regulation III, Rule 300, parts 4.4-4.4.3, the 
    Emission Statement (ES) Rule for the Monterey Bay ozone nonattainment 
    area as a revision to the California SIP, in accord with CAA section 
    182(a)(3)(B)(i) for all ozone nonattainment areas classified marginal 
    and above. The CAA mandates the adoption of a rule which requires 
    owners or operators of each stationary source of VOC or NOX to 
    provide the State with a statement showing actual emissions of those 
    pollutants. The ES must be in a form prescribed by the EPA 
    Administrator, unless the Administrator accepts an equivalent 
    alternative developed by the State. Section 182(a)(3)(B)(ii) allows 
    States to waive the application of the ES rule for any class or 
    category of stationary sources which emit less than 25 tons per year of 
    VOC or NOX if the State, in its submissions of base year or 
    periodic inventories, provides an inventory of emissions from such 
    class or category of sources based on the use of emission factors 
    established by the Administrator or other methods acceptable to the 
    Administrator.
        On January 7, 1992, EPA approved an equivalent alternate form of ES 
    developed by the State. However, the State failed to submit ES rules 
    for parts of seven ozone nonattainment areas, including the Monterey 
    Bay Area, by the November 15, 1992 CAA deadline. On January 15, 1993, 
    EPA issued a letter to the State finding that the State had failed to 
    meet the CAA deadline for submittal of the ES rule. This action 
    triggered the start of sanctions and Federal Implementation Plan (FIP) 
    clocks. On June 9, 1993, the District adopted the above-referenced 
    rule. The State subsequently submitted the ES rule for the Monterey Bay 
    Area on November 18, 1993. On June 22, 1994, by letter, EPA notified 
    the State of the completeness of the ES rule, thus stopping the 
    sanction clocks. With today's approval of the ES rule, the FIP clock is 
    also halted for the Monterey Bay Area.
        The ES rule requires: (1) Emission data from stationary sources of 
    VOC and NOX, (2) the source owner or operator's certification that 
    the emission data/information is accurate to the best of his/her 
    knowledge, and (3) the data to be reported on a specific form or in a 
    specific format. The rule also waives reporting requirements for 
    facilities with the potential to emit less that 25 tons per year of VOC 
    or NOX.
    
    3. VOC RACT Rule Correction
    
        Section 182(a)(2) requires ozone nonattainment areas to adopt and 
    correct RACT rules pursuant to pre-
    
    [[Page 2605]]
    
     amended Act section 172(b) as interpreted in pre-amended Act guidance. 
    7 EPA developed a series of Control Technology Guideline (CTG) 
    documents based on the underlying requirements of the Act and which 
    specify the presumptive norms for what is RACT for specific source 
    categories. The CTGs applicable to this rule are entitled ``Control of 
    Hydrocarbons from Tank Truck Gasoline Loading Terminals'' (EPA-450/2-
    77-026) and ``Control of Volatile Organic Emissions from Bulk Gasoline 
    Plants'' (EPA-450/2-77-035). In general, these guidance documents have 
    been set forth to ensure that VOC rules are fully enforceable and 
    strengthen or maintain the SIP.
    ---------------------------------------------------------------------------
    
        \7\ Among other things, the pre-amendment guidance consists of 
    those portions of the proposed Post-1987 ozone and carbon monoxide 
    policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
    Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
    Clarification to Appendix D of November 24, 1987 Federal Register 
    Notice'' (Blue Book) (notice of availability was published in the 
    Federal Register on May 25, 1988); and the existing control 
    technique guidelines (CTGs).
    ---------------------------------------------------------------------------
    
        MBUAPCD's revised Rule 419, Bulk Gasoline Plants and Terminals, was 
    adopted on November 23, 1994 and submitted to EPA by CARB on November 
    30, 1994. EPA found this rule complete on December 7, 1994. The rule 
    includes the following significant changes from the current SIP 
    version:
    
      Added definitions section
      Strengthened provisions for bulk terminals
      Added provisions for bulk plants
      Added recordkeeping requirements
      Added test methods
    
    EPA has reviewed this rule and has determined the rule to be consistent 
    with the CAA requirements, and EPA regulations as found in section 110 
    and Part D of the CAA and 40 CFR part 51, and EPA policy. Thus, EPA is 
    approving, as part of this direct final action, the MBUAPCD VOC RACT 
    Rule 419--Bulk Gasoline Plants and Terminals.
    
    4. NOX RACT Rule 431
    
        The air quality planning requirements for the reduction of NOX 
    emissions through RACT are set out in section 182(f) of the CAA.8 
    Section 182(f) of the Clean Air Act requires States to apply the same 
    requirements to major stationary sources of NOX (``major'' as 
    defined in section 302 and section 182 (c), (d), and (e)) as are 
    applied to major stationary sources of VOCs, in moderate or above ozone 
    nonattainment areas.
    ---------------------------------------------------------------------------
    
        \8\ On November 25, 1992, EPA published a NPRM entitled ``State 
    Implementation Plans; Nitrogen Oxides Supplement to the General 
    Preamble; Clean Air Act Amendments of 1990 Implementation of Title 
    I; Proposed Rule,'' (the NOX Supplement) which describes the 
    requirements of section 182(f). The November 25, 1992, notice should 
    be referred to for further information on the NOX requirements 
    and is incorporated into this document by reference.
    ---------------------------------------------------------------------------
    
        NOX emissions contribute to the production of ground level 
    ozone and smog. The MBUAPCD rule 431 controls emissions from utility 
    power boilers. The rule was adopted as part of the District's efforts 
    to achieve the National Ambient Air Quality Standard (NAAQS) for ozone, 
    as well as to satisfy the mandates of the California State Clean Air 
    Act requirements. The rule was submitted in response to the CAA 
    requirements cited above.
        However, subsequent to the complete submittal of the NOX rule 
    pursuant to the CAA, the District applied for an exemption from the 
    NOX RACT requirements pursuant to Section 182(f) of the CAA.9 
    The basis for the Monterey Bay Area's exemption was that the area had 
    achieved the ozone standard, as demonstrated by three years of 
    monitoring data, without having implemented the NOX measures. 
    While the District had adopted and submitted the measure in response to 
    both the state and federal requirements, the emission reductions 
    obtained by the rules would not occur until full implementation in the 
    future. Subsequently, EPA evaluated the exemption request and published 
    approval for the Monterey Bay Area's petition for a NOX RACT 
    exemption on April 25, 1995 (60 FR 20233).
    ---------------------------------------------------------------------------
    
        \9\  See ``Guidance for Determining the Applicability of 
    Nitrogen Oxides Requirements Under Section 182(f)'', issued by EPA's 
    Office of Air Quality Planning and Standards, December 1993 and 
    EPA's NOX Supplement to the General Preamble, 57 FR 55628, 
    November 25, 1992.
    ---------------------------------------------------------------------------
    
        The MBUAPCD has identified the reductions obtained from Rule 431 as 
    contributing to future maintenance of the ozone standard.
        EPA has evaluated Monterey's rule 431 for consistency with the 
    requirements of the CAA and EPA regulations, as found in section 110, 
    and part D of the CAA and 40 CFR part 51 (Requirements for Preparation, 
    Adoption and Submittal of Implementation Plans). The EPA interpretation 
    of these requirements, which forms the basis for this action, appears 
    in the NOX Supplement and various EPA policy guidance 
    documents.10 Among these provisions is the requirement that a 
    NOX rule must, at a minimum, provide for the implementation of 
    RACT for stationary sources of NOX emissions. However, because the 
    measure is being incorporated into the SIP as a maintenance measure for 
    the area's redesignation plan, and since the District applied for and 
    received a NOX RACT exemption, the rule is not being evaluated for 
    meeting the RACT emission limits pursuant to section 182(f) of the CAA. 
    Rather, the rule is being incorporated into the SIP as an attainment 
    maintenance measure for ozone, and is being evaluated for SIP 
    enforceability purposes.
    ---------------------------------------------------------------------------
    
        \10\ Among other things, the pre-amendment guidance consists of 
    those portions of the proposed post-1987 ozone and carbon monoxide 
    policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
    Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
    Clarification to appendix D of November 24, 1987 Federal Register 
    Notice'' (Blue Book) (notice of availability was published in the 
    Federal Register on May 25, 1988).
    ---------------------------------------------------------------------------
    
        EPA has evaluated the submitted rule and has determined that it is 
    consistent with the CAA, EPA regulations and EPA policy. Therefore, the 
    rule is being approved under section 110(k)(3) of the CAA as meeting 
    the requirements of section 110(a) and Part D.
    
    VI. Conclusion
    
        In today's final action, EPA is determining that as a consequence 
    of EPA's determination that the Monterey Bay Area ozone nonattainment 
    area has attained the ozone standard and continues to attain the 
    standard at this time, the requirements of section 182(b)(1) concerning 
    the submission of the 15 percent plan and ozone attainment 
    demonstration and the requirements of section 172(c)(9) concerning 
    contingency measures are not applicable to the area so long as the area 
    does not violate the ozone standard prior to the effective date of this 
    redesignation.
        Finally, EPA is approving the Monterey Bay Area ozone maintenance 
    plan as it meets the requirements of section 175A, and the Agency is 
    redesignating the Monterey Bay Area to attainment for ozone because the 
    State of California has demonstrated compliance with the requirements 
    of section 107(d)(3)(E) for redesignation. Additionally, EPA is 
    approving the 1990 emissions inventory, VOC RACT Rule 419 and NOX 
    RACT Rule 431 corrections, and the Emissions Statement Rule as 
    revisions to the California SIP for the Monterey Bay Area as they meet 
    the requirements of sections 182(a) and (b) of the Act.
        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 shall be considered 
    separately in light of specific technical, economic, and environmental 
    factors and in relation to relevant statutory and regulatory 
    requirements. The ozone SIP is designed to satisfy the requirements
    
    [[Page 2606]]
    
    of Part D of the CAA and to provide for attainment and maintenance of 
    the ozone NAAQS. This final redesignation should not be interpreted as 
    authorizing the State of California to delete, alter, or rescind any of 
    the VOC or NOX emission limitations and restrictions contained in 
    the approved ozone SIP. Changes to the ozone SIP VOC RACT regulations 
    rendering them less stringent than those contained in the EPA approved 
    plan cannot be made unless a revised plan for attainment and 
    maintenance is submitted and approved by EPA. Unauthorized relaxations, 
    deletions, and/or changes could result in both a finding of 
    nonimplementation (section 173(b) of the CAA) and in a SIP deficiency 
    call made pursuant to section 110(a)(2)(H) of the CAA.
    
    Regulatory Process
    
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities (5 U.S.C. 603 and 604). 
    Alternatively, EPA may certify that the rule will not have a 
    significant impact on a substantial number of small entities. Small 
    entities include small businesses, small not-for-profit enterprises, 
    and government entities with jurisdiction over populations of less than 
    50,000.
        Redesignation of an area to attainment under section 107(d)(3)(E) 
    of the CAA, and approval of an emissions inventory do not impose any 
    new requirements on small entities. Additionally, the approval of the 
    emission statement rule, which waives reporting requirements for 
    facilities with the potential to emit less than 25 tons per year of VOC 
    or NOX, does not impose any new requirements on small entities. 
    Redesignation is an action that affects the status of a geographical 
    area and does not impose any regulatory requirements on sources. SIP 
    approvals under sections 110 and 301(a) and subchapter I, Part D of the 
    CAA do not create any new requirements, but simply approve the 
    requirements that the State is already imposing. Therefore, the 
    Administrator certifies that the approval of the SIP revisions and 
    redesignation will not affect a substantial number of small entities. 
    Moreover, due to the nature of the Federal-State relationship under the 
    CAA, preparation of a regulatory flexibility analysis would constitute 
    Federal inquiry into the economic reasonableness of state action. The 
    CAA forbids EPA to base Agency actions concerning SIPs on such grounds. 
    Union Electric Co. v. U.S. EPA, 427 U.S. 246, 256-66 (S. Ct. 1976); 42 
    U.S.C. 7410(a)(2).
    
    Unfunded Mandates
    
        Under Sections 202, 203 and 205 of the Unfunded Mandates Reform Act 
    of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 1995, 
    EPA must undertake various actions in association with proposed or 
    final rules that include a Federal mandate that may result in estimated 
    costs of $100 million or more to the private sector, or to State, 
    local, or tribal governments in the aggregate.
        Through submission of the state implementation plan or plan 
    revisions approved in this action, the State and any affected local or 
    tribal governments have elected to adopt the program provided for under 
    section 175A and 182(a)(1) of the Clean Air Act. Also, EPA's final 
    action approving the emission inventory does not impose any federal 
    intergovernmental mandate, as defined in section 101 of the Unfunded 
    Mandates Act. The rules and commitments approved in this action may 
    bind State, local and tribal governments to perform certain actions and 
    also may ultimately lead to the private sector being required to 
    perform certain duties. To the extent that the rules and commitments 
    being approved by this action will impose or lead to the imposition of 
    any mandate upon the State, local or tribal governments either as the 
    owner or operator of a source or as a regulator, or would impose or 
    lead to the imposition of any mandate upon the private sector, EPA's 
    action will impose no new requirements; such sources are already 
    subject to these requirements under State law. Accordingly, no 
    additional costs to State, local, or tribal governments, or to the 
    private sector, result from this action. Therefore, EPA has determined 
    that this final action does not include a mandate that may result in 
    estimated costs of $100 million or more to State, local, or tribal 
    governments in the aggregate or to the private sector.
        Under section 307(b)(1) of the Act, 42 U.S.C. 7607(b)(1), petitions 
    for judicial review of this action must be filed in the United States 
    Courts of Appeals for the appropriate circuit by March 18, 1997. Filing 
    a petition for reconsideration by the Administrator of this final rule 
    does not affect the finality of this rule for 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) of the Act, 42 
    U.S.C. 7607(b)(2).
        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).
        These actions have been classified as Table 2 and Table 3 actions 
    for signature by the Regional Administrator under the procedures 
    published in the Federal Register on January 19, 1989 (54 FR 2214-
    2225), as revised by an October 14,1993 memorandum from Michael H. 
    Shapiro, Acting Assistant Administrator for Air and Radiation and by a 
    July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
    Air and Radiation. The Office of Management and Budget (OMB) has 
    exempted this regulatory action from the requirements of section 6 of 
    Executive Order 12866.
    
    List of Subjects
    
    40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Incorporation by reference, Intergovernmental relations, Nitrogen 
    dioxide, Ozone, Reporting and recordkeeping requirements, Volatile 
    organic compounds.
    
    40 CFR Part 81
    
        Environmental Protection Air pollution control, National Parks, 
    Wilderness Areas.
    
        Note: Incorporation by reference of the State Implementation 
    Plan for the State of California was approved by the Director of the 
    Federal Register on July 1, 1982.
    
        Dated: November 15, 1996.
    Felicia Marcus,
    Regional Administrator.
    
        Subpart F of part 52, 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 F--California
    
        2. Section 52.220 is amended by adding paragraphs 
    (c)(194)(i)(F)(5), (c)(207)(i)(E)(1), (c)(209), (c)(213), and 
    (c)(225)(i)(E)(1) to read as follows:
    
    [[Page 2607]]
    
    Sec. 52.220   Identification of plan.
    
    * * * * *
        (c) * * *
        (194) * * *
        (i) * * *
        (F) * * *
        (5) Rule 300--Regulation 3, Part 4, Paragraph 4.4 adopted on June 
    9, 1993.
    * * * * *
        (207) * * *
        (i) * * *
        (E) * * *
        (1) Rule 419, adopted on November 23, 1994.
    * * * * *
        (209) Redesignation Request and Ozone Maintenance Plan for the 
    redesignation of the Monterey Bay Unified Air Pollution Control 
    District submitted on July 14, 1994 and November 14, 1994, 
    respectively, by the Governor's designee.
        (i) Incorporation by reference.
        (A) Maintenance Plan for the redesignation of the Monterey Bay Area 
    adopted on October 19, 1994 by the Monterey Bay Unified Air Pollution 
    Control District, October 12, 1994 by the Association of Monterey Bay 
    Area Governments, and October 6, 1994 by the Council of San Benito 
    County Governments.
    * * * * *
        (213) Statewide 1990 Base-year Ozone Precursor Emission Inventory 
    for Ozone Nonattainment Areas submitted on March 30, 1995, by the 
    Governor's designee.
        (i) Incorporation by reference.
        (A) Monterey Bay Area Unified Air Pollution Control District.
        (1) 1990 Base-year ozone emissions inventory, adopted on October 
    19, 1994.
    * * * * *
        (225) * * *
        (i) * * *
        (E) * * *
        (1) Rule 431, adopted on August 16, 1995.
    * * * * *
    
    PART 81--[AMENDED]
    
        1. The authority citation for part 81 continues to read as follows:
    
        Authority: 42 U.S.C. 7407, 7501, 7515, 7601.
    
    Subpart B--Designation of Air Quality Control Regions
    
        2. In Sec. 81.305, the table for ``California--Ozone'' is amended 
    by revising the entry ``Monterey Bay Area'' to read as follows:
    
    
    Sec. 81.305   California.
    
    * * * * *
    
                                                                                            California--Ozone                                                                                       
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                           Designation                                                                 Classification                               
               Designated area           -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                         Date\1\                                  Type                                 Date\1\                                  Type                
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    
                                           *                  *                  *                  *                  *                  *                  *                                      
    Monterey Bay Area...................  February 18, 1997....................  Attainment...........................                                                                              
      Monterey County                                                                                                                                                                               
      San Benito County                                                                                                                                                                             
      Santa Cruz County                                                                                                                                                                             
                                                                                                                                                                                                    
                                           *                  *                  *                  *                  *                  *                  *                                      
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    This date is November 15, 1990, unless otherwise noted.                                                                                                                                         
    
    [FR Doc. 97-876 Filed 1-16-97; 8:45 am]
    BILLING CODE 6560-50-W
    
    
    

Document Information

Effective Date:
3/18/1997
Published:
01/17/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Direct final rule.
Document Number:
97-876
Dates:
This action is effective on March 18, 1997, unless adverse or critical comments are received by February 18, 1997. If the effective date is delayed, a timely notice will be published in the Federal Register.
Pages:
2597-2607 (11 pages)
Docket Numbers:
CA-98-1-7196a, FRL-5661-6
PDF File:
97-876.pdf
CFR: (2)
40 CFR 52.220
40 CFR 81.305