94-1131. Federal Highway Funding Assistance Limitations and Emissions Offset Requirements; Indiana  

  • [Federal Register Volume 59, Number 15 (Monday, January 24, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-1131]
    
    
    [[Page Unknown]]
    
    [Federal Register: January 24, 1994]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 52
    
    [IN33-1-6049; FRL-4826-5]
    
     
    
    Federal Highway Funding Assistance Limitations and Emissions 
    Offset Requirements; Indiana
    
    AGENCY: United States Environmental Protection Agency.
    
    ACTION: Notice of proposed rulemaking.
    
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    SUMMARY: The U.S. Environmental Protection Agency (USEPA) is proposing 
    this action to impose sanctions on Indiana under the discretionary 
    sanction authority provided under the Clean Air Act, as amended in 
    1990, (CAA or Act) for failure by the State to submit a complete SIP 
    revision for an enhanced motor vehicle inspection and maintenance (I/M) 
    program as required by the Act for certain ozone nonattainment areas. 
    On December 2, 1992, the Indiana Department of Environmental Management 
    (IDEM), acting as the governor's designee, submitted a commitment 
    (Committal SIP) to adopt an I/M program to meet the requirement of the 
    Act and the I/M rule by November 15, 1993. The committal SIP provides 
    for the adoption and implementation of an enhanced I/M program meeting 
    all requirements of USEPA's I/M regulations and includes an 
    implementation schedule. On September 9, 1993, USEPA proposed to 
    disapprove this SIP revision and on November 29, 1993, USEPA 
    disapproved this SIP revision based on the failure by the State to meet 
    milestones contained in the committal SIP's implementation schedule 
    pertaining to the enactment of necessary legislative authority. A full 
    SIP revision including State legislative authority to implement the 
    program was required by November 15, 1993. The Indiana legislature 
    adjourned on June 30, 1993, without taking necessary action to provide 
    for implementation of an enhanced I/M program. On December 30, 1993, 
    USEPA Region 5 issued a letter finding that the State had failed to 
    submit the SIP revision required under sections 110 and 182 of the Act. 
    Due to the failure of the State to submit a complete SIP revision 
    fulfilling either the requirements of the Act or its commitment to 
    adopt and implement an enhanced I/M program as promised in its 
    committal SIP, USEPA proposes to exercise its discretionary authority 
    under the Act to apply a statewide highway funding limitation sanction 
    and a 2 for 1 growth offset sanction in all areas required to have a 
    permit program under the new source review provisions of the Act.
    
    DATES: Comments on this proposed action are to be submitted by March 
    15, 1994. The USEPA will hold three public hearings on February 16, 18, 
    and 22.
    
    ADDRESSES: Comments on this proposed rule should be addressed to: J. 
    Elmer Bortzer, Chief, Regulation Development Section, Regulation 
    Development Branch (5AR-18J), United States Environmental Protection 
    Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604.
        The public hearings will be held in Indiana as follows: February 
    16, 1994 in Valparaiso, (Porter County) at the Porter County 
    Administration Center on 155 Indiana Avenue in Suite 205 at 11 a.m. to 
    4 p.m.; February 18, 1994 in New Albany (Floyd County) at the New 
    Albany Courthouse on West First and Spring Streets in the third floor 
    assembly room at 11 a.m. to 4 p.m.; and February 22, 1994 in 
    Indianapolis (Marion County) at the Indiana Government Center South on 
    402 West Washington Street in the auditorium at 11 a.m. to 4 p.m.
        Copies of Indiana's I/M Committal SIP submittal, USEPA's proposals 
    and rulemakings, and other documents pertinent to this proposed rule 
    are available at the following address: U.S. Environmental Protection 
    Agency, Region 5, Air and Radiation Division, Regulation Development 
    Branch, 77 West Jackson Boulevard, Chicago, Illinois 60604.
    
    FOR FURTHER INFORMATION CONTACT: Francisco J. Acevedo, Environmental 
    Engineer, Regulation Development Section, Regulation Development Branch 
    (5AR-18J), United States Environmental Protection Agency, Region 5, 77 
    West Jackson Boulevard, Chicago, Illinois 60604, (312) 886-6061. Anyone 
    wishing to come to Region 5 offices should first contact Francisco J. 
    Acevedo.
    
    SUPPLEMENTARY INFORMATION:
    
    I. I/M Program Requirements
    
        Pursuant to the 1977 amendments to the Act, vehicle I/M programs 
    were mandated for certain areas with long standing air quality 
    problems. The 1990 amendments to the Act expanded the role of I/M 
    programs as an attainment strategy and required USEPA to develop 
    different performance standards for ``basic'' and ``enhanced'' I/M 
    programs. The performance standard is the minimum amount of emission 
    reductions a program must achieve, based on a model or benchmark 
    program design. In addition, the amended Act directed USEPA to address 
    requirements for specific design elements and program implementation 
    issues for both basic and enhanced I/M programs. The amended Act 
    requires states containing nonattainment areas to make changes to 
    improve existing I/M programs or implement new ones. Section 
    182(a)(2)(B) of the Act directed USEPA to publish updated guidance for 
    state I/M programs, taking into consideration findings of the 
    Administrator's audits and investigations of these programs. The Act 
    further requires each area required by the Act to have an I/M program 
    to incorporate this guidance into the SIP. Based on these requirements, 
    USEPA promulgated an I/M regulation on November 5, 1992. (57 FR 52950)
        Under section 182(c)(3) of the Act, areas designated as serious or 
    worse ozone nonattainment areas with populations of 200,000 or more, in 
    addition to metropolitan statistical areas with populations of 100,000 
    or more in the northeast ozone transport region, are required to meet 
    USEPA requirements for ``enhanced'' I/M programs. These areas were 
    required to submit a SIP revision to incorporate an enhanced I/M 
    program by November 15, 1992. In Indiana, the State must implement a 
    basic I/M program in the urbanized areas of Clark and Floyd counties; 
    it must implement an enhanced I/M program in the urbanized areas of 
    Lake and Porter counties.
        The I/M regulation establishes minimum performance standards for 
    basic and enhanced I/M programs as well as requirements for the 
    following: Network type and program evaluation; adequate tools and 
    resources; test frequency and convenience; vehicle coverage; test 
    procedures and standards; test equipment; quality control; waivers and 
    compliance via diagnostic inspection; motorist compliance enforcement; 
    motorist compliance enforcement program oversight; quality assurance; 
    enforcement against contractors, stations and inspectors; data 
    collection; data analysis and reporting; inspector training and 
    licensing or certification; public information and consumer protection; 
    improving repair effectiveness; compliance with recall notices; on-road 
    testing; SIP revisions; and implementation deadlines.
        For enhanced I/M programs, all requirements must be implemented by 
    January 1, 1995 except that areas switching from an existing test-and-
    repair network to a test-only network may phase in that change between 
    January 1995 and January 1996.
        Each state required to implement an I/M program was required to 
    submit by November 15, 1992, a SIP revision (here and after referred to 
    as ``I/M committal SIP'') including two elements: (1) A commitment from 
    the Governor or his/her designee to the timely adoption and 
    implementation of an I/M program meeting all the requirements of the I/
    M regulation; and, (2) a schedule for adoption of the program, with 
    interim milestones including passage of enabling statutory or other 
    legal authority and adoption of final regulations. Acceptance of I/M 
    committal SIPs in lieu of full SIPs was justified by the fact that 
    states could not have been expected to begin development of an I/M 
    program meeting the requirements of the Act and the I/M regulation 
    until the I/M regulation was adopted as a final rule, which did not 
    occur until November 5, 1992. A complete SIP revision which contained 
    all of the elements identified in the adoption schedule, including the 
    authorizing legislation and implementing regulations, was to be 
    submitted no later than November 15, 1993.
        On December 2, 1992, the State of Indiana submitted a committal SIP 
    to USEPA. A public hearing on this submittal was held by the State on 
    October 22, 1992, in Gary, Indiana. The submittal included a schedule 
    of implementation and a commitment to the timely adoption and 
    implementation of an I/M program in the Lake, Porter, Clark, and Floyd 
    County ozone nonattainment areas meeting all the requirements of the I/
    M regulation and the amended Act by November 15, 1993.
        On June 30, 1993, the Indiana legislature adjourned without taking 
    the necessary action to enable Indiana to adopt and implement the I/M 
    provisions mandated by the amended Act and the final I/M rule in Lake 
    and Porter Counties. Failure to provide such authority prevented the 
    State from submitting a complete SIP revision containing all the 
    required elements of the program by November 15, 1993. On August 17, 
    1993, USEPA sent a letter to Governor Bayh of Indiana and to the 
    Regional Administrator of the Federal Highway Administration advising 
    them that USEPA had decided to exercise its discretionary authority 
    under section 110(m) of the Act to impose sanctions at any time once a 
    finding of SIP deficiency is made. After review of the committal SIP, 
    USEPA proposed to disapprove the commitment on September 9, 1993 (58 FR 
    47415), and on November 29, 1993 USEPA disapproved this SIP revision 
    based on the failure by the State to meet interim and final milestones 
    in the schedule contained in the SIP submittal pertaining to the 
    enactment of necessary authority to implement I/M requirements during 
    the 1993 Indiana General Legislative session. On November 15, 1993, the 
    State of Indiana failed to meet its commitment to USEPA by failing to 
    submit a full SIP revision for I/M program implementation.
        Beyond being a specific mandate of the Act, enhanced I/M programs 
    play an important role in the ability of Lake and Porter Counties to 
    comply with the CAA requirements for achieving the National Ambient Air 
    Quality Standards (NAAQS) for ozone, as well as the Act's requirements 
    for reasonable further progress (RFP) reductions for ozone. The Act 
    provides that each state in which all or part of certain 
    classifications for ozone and/or CO nonattainment areas are located is 
    required to provide an attainment demonstration showing that its SIP, 
    as revised, will provide for attainment of the NAAQS by the applicable 
    attainment date(s). The Act further requires that each state in which 
    all or part of a serious, severe, or extreme ozone nonattainment area 
    is located shall submit SIP revisions that will reduce VOC emissions by 
    November 15, 1996 by at least 15% of 1990 baseline emissions. If the 
    reductions identified in the SIP revisions are less than 15% of 
    baseline emissions, the state may obtain a waiver under section 
    182(b)(1)(A)(ii); this requires the State to make several 
    demonstrations, including one that the plan reflecting the lesser 
    amount includes all measures that can feasibly be implemented in the 
    area in light of technological achievability. The Lake and Porter areas 
    in Indiana will have difficulty meeting the RFP requirements because 
    credit for certain pre-1990 CAA programs, such as the federal motor 
    vehicle control program and basic I/M is not allowed. The additional 
    benefits of enhanced I/M, however, are fully creditable towards meeting 
    the RFP requirement. Enhanced I/M is one of the most powerful tools 
    available to areas in terms of providing expeditious reductions in both 
    VOC and NOx, both of which are precursors of ozone.
        Finally, a federally approvable enhanced I/M program represents one 
    of the most cost-effective air quality control strategies available. 
    Without an effective I/M program, attainment of the ozone air quality 
    standard is virtually impossible, and without appropriate enabling 
    legislation, an enhanced I/M program cannot be implemented.
    
    II. Sanctions Under the Clean Air Act
    
        This sanction action is being proposed under USEPA's discretionary 
    authority contained in section 110(m) of the Act. The predicate 
    findings and types of sanctions are in section 179. The two sanctions 
    available to USEPA for application under section 110(m), as provided in 
    section 179(b), are: (1) A prohibition on the funding of certain 
    highway projects; and (2) an increase in the emission offset 
    requirement for new and modified major stationary sources. The highway 
    funding sanction prohibits the approval by the Secretary of 
    Transportation of any projects or the awarding by the Secretary of any 
    grants, under Title 23 of the U.S. Code, other than projects or grants 
    for safety and certain other categories of projects listed in section 
    179(b)(1). The offset sanction requires that, when states apply the 
    emission offset requirement of section 173 to new or modified sources, 
    the ratio of emission reductions to increased emissions must be at 
    least 2 to 1.
        Section 179(a) of the Act sets forth the findings\1\ which provide 
    USEPA with discretion under section 110(m) to impose one or both of the 
    sanctions specified under section 179(b). The four findings are: (1) A 
    state has failed, for a nonattainment area, to submit a SIP or an 
    element of the SIP, or that the SIP or SIP element submitted fails to 
    meet the completeness criteria of section 110(k); (2) USEPA disapproves 
    a SIP submission for a nonattainment area based on the submission's 
    failure to meet one or more plan elements required by the Act; (3) a 
    state has not made any other submission required by the Act or has made 
    a submission that does not meet the completeness criteria or has made a 
    required submission that is disapproved by USEPA for not meeting the 
    Act's requirements; or (4) a requirement of an approved plan is not 
    being implemented.
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        \1\Section 179(a) refers to Agency findings, disapprovals, and 
    determinations. These will all be referred to by the one term 
    ``findings.''
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        Under section 179(a), unless the state corrects the deficiency, one 
    of the two sanctions listed in section 179(b) must be imposed 18 months 
    after a finding is made, and the second must be imposed 6 months after 
    the first sanction is imposed, if the deficiency remains 
    uncorrected.\2\ In addition, USEPA may apply both sanctions after 18 
    months if the Administrator finds a lack of good faith on the part of 
    the state.
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        \2\On October 1, 1993, U.S. EPA proposed a rule governing the 
    order in which the sanctions shall apply under section 179 of the 
    Act. 58 FR 51270. The rule proposes that the offset sanction apply 
    first and the highway funding sanction apply second. According to 
    the proposed rule, U.S. EPA may change this sequence of sanctions 
    through individual notice-and-comment rulemaking. This proposed 
    sequencing applies only to mandatory sanctions that apply under 
    section 179(a) and does not govern sanctions imposed under section 
    110(m).
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        Although section 179(a) establishes mandatory deadlines for the 
    application of sanctions at certain points after a finding of 
    deficiency, section 110(m) provides USEPA with the discretion to impose 
    section 179(b) sanctions at any time (or at any time after) a section 
    179(a) finding. Likewise, although mandatory sanctions under section 
    179 are limited to the area with the deficiency, section 110(m) 
    authorizes USEPA to apply discretionary sanctions to any portion of the 
    state that USEPA deems reasonable and appropriate to ensure that the 
    requirements of the Act are met. See 57 FR 44534, 44536-44537. However, 
    the Act requires USEPA to establish by rule criteria to ensure that 
    such sanctions are not applied on a statewide basis where one or more 
    political subdivisions covered by the applicable implementation plan 
    are principally responsible for the deficiency.
        On September 28, 1992, USEPA proposed criteria under section 110(m) 
    that it would use when proposing statewide sanctions to determine if 
    one or more political subdivisions is principally responsible for a SIP 
    deficiency. 57 FR 44534. These proposed criteria are discussed later in 
    this notice.
        With regard to Indiana, EPA is using its discretionary authority 
    under section 110(m) to propose early sanctions\3\ based on Indiana's 
    failure to submit a complete SIP to improve its I/M program. EPA is 
    taking this action for two reasons: (1) Congress required timely 
    submittal of enhanced I/M programs as a measure the State's 
    metropolitan areas to meet CAA deadlines, and any legislative delay 
    threatens the State's ability to meet those deadlines, and (2) enhanced 
    I/M is the single most effective air pollution control measure 
    available. Delayed legislative approval of an acceptable I/M program 
    places a disproportionate burden for cleaning the air on the State's 
    major industrial sources.
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        \3\U.S. EPA issued a letter on December 30, 1993, finding that 
    the State's proposed SIP revision was a failure to submit a SIP 
    revision as required by the Act. Mandatory sanctions under section 
    179(a) were triggered by issuance of the letter notifying the State 
    of the finding of the deficiency.
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    III. Proposed Sanctions
    
    A. Finding Under Section 179(a)
    
        As stated previously on December 30, 1993, USEPA Region 5 issued a 
    letter notifying the State of its failure to submit a complete SIP 
    revision on November 15, 1993, as required by the Act. USEPA's letter 
    constitutes a finding under section 179(a) that triggers USEPA's 
    discretionary authority to impose the sanctions proposed in this notice 
    under section 110(m). Further, on November 29, 1993, USEPA disapproved 
    Indiana's committal SIP revision because the State had failed to meet 
    its commitment.
        If sufficient progress has not been made by Indiana toward the 
    implementation of an approvable I/M program to be operational on or 
    before January 1, 1995, EPA hereby announces its intention to impose 
    sanctions on May 15, 1994.
    
    B. Rationale and Approach for Section 110(m) Sanctions
    
        Section 110(m) of the Act allows USEPA to apply the Federal highway 
    funding assistance limitations and 2:1 emission offset sanction at any 
    time (or at any time after) it makes a finding under section 179(a). 
    Based on its finding dated December 30, 1993, USEPA is proposing to 
    impose both the Federal highway funding assistance limitations and 2:1 
    emission offset sanctions. USEPA believes that the imposition of both 
    sanctions is appropriate because of Indiana's failure to adopt 
    legislation to enhance its existing vehicle inspection and maintenance 
    program. In the absence of an improved vehicle inspection and 
    maintenance program, the ability of the State's metropolitan areas to 
    meet the Clean Air Act deadlines for attaining healthy air quality is 
    severely compromised. As previously noted, enhanced vehicle inspection 
    and maintenance is the single most effective air pollution control 
    measure available and delayed legislative approval of an acceptable 
    program further burdens major industrial sources of air pollution with 
    responsibility for cleaning the air.
        Under section 110(m), USEPA may apply sanctions to any portion of 
    the state it determines is reasonable and appropriate. During the 24 
    months following the finding, USEPA may not impose the sanctions 
    statewide if one or more political subdivisions within the state is 
    principally responsible for the deficiency that is the basis for 
    sanctions. USEPA has proposed criteria for determining when a political 
    subdivision is principally responsible (57 FR 44534, September 28, 
    1992). The criteria provide that a political subdivision is principally 
    responsible if: (1) It has the legal authority to perform the required 
    activity; (2) it has traditionally performed, or has been delegated the 
    responsibility to perform, the required activity; (3) it has received, 
    where appropriate, adequate funding, or authority to obtain funding, 
    from the state to perform the required activity; (4) it has agreed to 
    perform (and has not revoked the agreement), or is required by state 
    law to accept responsibility for performing, the required activity; and 
    (5) it has failed to perform the required activity. A ``political 
    subdivision'' is defined as the representative body that is responsible 
    for adopting and/or implementing air pollution controls for any 
    combination of political subdivisions created by, or pursuant to, 
    Federal or State law. If no political subdivision meets all 5 criteria, 
    USEPA may use its discretion to determine whether it is reasonable and 
    appropriate to apply sanctions on a statewide basis.
        In this notice, USEPA is proposing to use the above proposed 
    criteria to determine if it may impose highway sanction statewide for 
    Indiana because of the failure to submit a complete enhanced I/M 
    program.
        USEPA believes that the first criterion has not been met by any 
    political subdivision. Only the Indiana legislature, composed of 
    representatives from all portions of the State of Indiana, has the 
    authority to revise the state statute to provide for an enhanced I/M 
    program meeting the CAA and EPA requirements. Once the legislature has 
    acted, only state government agencies can adopt any implementing 
    regulations. While individual air pollution control districts or air 
    quality management districts may request implementation of the state I/
    M program within their districts once that program is adopted, this 
    authority is meaningless unless the State has first established an 
    appropriate program through legislation and regulations. Since the 
    State legislature has not enacted the legislation required to provide 
    the legal authority for an enhanced I/M program meeting the CAA and 
    USEPA requirements, the program is not available to areas within the 
    State that require the program.
        Since no political subdivision within the State has met the first 
    criterion, EPA believes that no political subdivision is principally 
    responsible for the failure to have an enhanced I/M program. Therefore, 
    EPA is not prohibited from imposing sanctions statewide. As noted 
    above, the State legislature bears the ultimate responsibility to adopt 
    the requisite legislative authority and IDEM, not the individual air 
    quality districts, must subsequently adopt adequate regulations. Since 
    the State does bear the ultimate responsibility, USEPA believes that it 
    is reasonable and appropriate for USEPA to impose the highway sanction 
    on the entire State.
        The 2:1 offset sanction requirements apply only to new or modified 
    major stationary sources located or to be located in areas that are 
    required to have a permit program pursuant to section 173. Thus, USEPA 
    is proposing to impose the 2:1 emission offset sanction in the 
    following ozone nonattainment counties: Lake, Porter, Clark, Floyd, 
    Marion, St. Joseph, Elkhart, and Vanderburgh. The 2:1 emission offset 
    would apply to all new or modified major stationary sources for 
    volatile organic compounds and oxides of nitrogen that are locating to 
    or located in each of these areas. USEPA proposes to impose the offset 
    sanction in the manner described in the proposed action on the 
    sequencing of sanctions (58 FR 51270, 51275-51277 (Oct. 1, 1993)).
    
    C. Removal of Discretionary Sanctions
    
        USEPA is proposing to temporarily lift (i.e., toll)4 the 
    highway and offset sanctions imposed under section 110(m) upon the 
    passage by the Indiana legislature and signature by the Governor of 
    legislation which USEPA preliminary determines provides legal authority 
    for an enhanced I/M program meeting the requirements of the CAA and the 
    I/M regulations. USEPA proposes to notify the State of this tolling by 
    a letter to the Governor and the public by a notice published in the 
    notice section of the Federal Register. The section 110(m) sanctions 
    would not be completely lifted until the State of Indiana submits a 
    complete enhanced I/M program to USEPA. USEPA will take action to 
    completely lift section 110(m) sanctions upon its determination that 
    the State has submitted a complete enhanced I/M program.
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        \4\ As a general rule, an Agency must go through rulemaking to 
    remove or alter a requirement imposed through rulemaking. While U.S. 
    EPA intends to issue a notice tolling the 110(m) sanctions upon the 
    occurrence of the events described, U.S. EPA will use the good cause 
    exception to the otherwise applicable requirement for proposed 
    rulemaking. EPA believes there is good cause to toll the sanctions 
    once the state takes the action which cures the deficiency that 
    resulted in the imposition of sanctions. See 5 U.S.C. 
    Sec. 553(b)(B). Therefore, no proposed action for removal will be 
    issued. Consistent with U.S. EPA's intent to impose discretionary 
    sanctions only on those areas that lack legislative authority U.S. 
    EPA believes that it is in the public interest to remove, at least 
    temporarily, these discretionary sanctions as expeditiously as 
    possible once the State of Indiana has enacted legislative 
    authority.
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        As an alternative, EPA proposes that the basis for the 
    discretionary sanctions is EPA's disapproval of Indiana's committal 
    SIP. If the EPA's disapproval of the committal SIP is the basis for the 
    discretionary sanctions, such sanctions would be tolled in the same 
    manner as if the finding of failure to submit were the basis; however, 
    if the disapproval is the basis for imposing the sanctions such 
    sanctions would not be completely lifted until EPA formally approves an 
    enhanced I/M program for the State of Indiana. In such a case, EPA 
    would take action to lift the sanctions at the same time as EPA took 
    final action approving the State's I/M program.
        USEPA's action imposing or tolling the section 110(m) sanctions 
    will in no manner affect EPA's obligation to impose mandatory sanctions 
    under section 179(a). The mandatory sanctions clock for Indiana was 
    triggered on November 29, 1993 by EPA's disapproval of Indiana's 
    committal SIP. Therefore, one mandatory sanction shall apply 18 months 
    after USEPA's final disapproval of the committal SIP and the second 
    mandatory sanction shall apply 6 months later. Sanctions under section 
    179(a) apply to the areas for which the deficiency exists and until 
    such deficiency has been corrected. Moreover, if the State does not 
    adopt and USEPA does not approve regulations providing for an I/M 
    program within the 18-month and additional 6-month periods following 
    the effective date of EPA's disapproval, the sanctions will 
    automatically apply on those areas of the State that were required to 
    have but do not have such a USEPA-approved I/M program under the 
    amended Act. See 58 FR 51270 (October 1, 1993).
    
    IV. Regulatory Requirements
    
    A. Executive Order 12866
    
        Under Executive Order 12866, (58 FR 51735 (October 4, 1993)) the 
    Agency must determine whether the regulatory action is ``significant'' 
    and therefore subject to Office of Management and Budget (OMB) review 
    and the requirements of the Executive Order. The Order defines 
    ``significant regulatory action'' as one that is likely to result in a 
    rule that may:
        (1) Have an annual effect on the economy of $100 million or more or 
    adversely effect in a material way the economy, a sector of the 
    economy, productivity, competition, jobs, the environment, public 
    health or safety, or State, local, or tribal governments or 
    communities;
        (2) Create a serious inconsistency or otherwise interfere with an 
    action taken or planned by another agency;
        (3) Materially alter the budgetary impact of entitlements, grants, 
    user fees, or loan programs or the rights and obligations of recipients 
    thereof; or
        (4) Raise novel legal or policy issues arising out of legal 
    mandates, the President's priorities, or the principles set forth in 
    the Executive Order.
        Pursuant to the terms of Executive Order 12866, it has been 
    determined that this rule is a ``significant regulatory action.'' 
    Nevertheless, this action has been informally submitted to OMB for 
    review.
    
    B. Regulatory Flexibility Act
    
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., USEPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
    Alternatively, USEPA may certify that the rule will not have a 
    significant 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. For reasons cited below, USEPA has not completed a regulatory 
    flexibility analysis for this rule.
        The USEPA cannot reliably predict the impact of these restrictions 
    because of the exemptions authorized for certain highway projects 
    related to mass transit, public safety, and those that have beneficial 
    air quality impacts. Careful review and evaluation of each project is 
    necessary to determine whether or not a project is exempt.
        Major stationary sources of VOC and NOX with emissions are 
    generally not small entities. Also, the 2:1 emission offset requirement 
    does not prevent growth and modification but sets a higher offset 
    standard than the current offset required. It is not expected that a 
    large number of small entities will be affected by the emission offset 
    requirement. In the past, when USEPA has made efforts to quantify the 
    impact of the Act's rules on the construction and modification of 
    sources, USEPA has been unable to do so due, in part, to the need to 
    obtain information on future plans for business growth. This 
    information is difficult to obtain, as businesses are understandably 
    reluctant to make their plans public.
        The USEPA is also proposing to impose Federal highway funding 
    assistance limitations statewide. This limitation could affect a number 
    of government entities with jurisdiction over populations of less than 
    50,000 since government entities often apply for and receive federal 
    funding under Title 23, United States Code, for road improvement 
    projects. Although a great many projects are exempted under section 
    179(b)(1)(B), a number of projects are expected to be affected if the 
    USEPA takes final action.
        For the reasons stated above, EPA cannot further analyze the 
    economic impacts of this action on small entities. The statements in 
    this package constitute EPA's full regulatory flexibility analysis.
    
    C. Reporting and Recordkeeping Requirements
    
        This rule does not contain any information collection requirements 
    which require OMB approval under the Paperwork Reduction Act (44 U.S.C. 
    3501 et seq.). Should the highway sanctions become effective, the 
    Secretary of the U.S. Department of Transportation (USDOT) is required 
    to determine which projects or grants should not be affected by the 
    sanction and which, therefore, are exempt. This determination will be 
    based on information readily available in existing documentation 
    gathered for the purpose of evaluating the environmental, social, and 
    economic impacts of different alternatives for transportation projects. 
    These analyses are already required for the preparation of 
    environmental assessments and impact statements under the National 
    Environmental Policy Act (NEPA). Historically, exemption determinations 
    by USDOT for sanctions have been based on such NEPA documentation and 
    have not necessitated additional information gathering and analysis by 
    the states. In addition, since under NEPA, final environmental 
    documents must be approved by USDOT, in most cases the NEPA 
    documentation will already be in USDOT's possession. Therefore, USEPA 
    does not believe that the highway sanctions, when applied, will impose 
    an additional information collection burden on the states.
        When the offset sanction applies, sources subject to it will not 
    incur an additional information collection burden because sources are 
    already required under section 173 offset requirements to obtain an 
    emission offset from between 1 to 1 and 1.5 to 1 (depending on the 
    classification of the nonattainment area in which they are located). 
    Should the offset sanction apply, if would not impose an additional 
    information collection burden because sources will not have to provide 
    additional information in the application beyond that which they would 
    already have to provide in the absence of the sanction. (For the 
    information collection burden of new requirements of the amended Act 
    for nonattainment new source review (NSR) and prevention of significant 
    deterioration, an information collection request is being prepared to 
    support rulemaking changes to parts 51 and 52.)
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Carbon monoxide, 
    Motor vehicle pollution, Nitrogen oxide, Volatile organic compounds.
    
        Dated: January 7, 1994.
    Carol M. Browner,
    Administrator.
    
        40 CFR part 52 is proposed to be amended as follows:
    
    PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart A--[Amended]
    
        2. Section 52.32, as proposed to be added in a document published 
    elsewhere in this Federal Register, is amended by adding entries for 
    the State of Indiana in the tables in paragraphs (c)(1)(i) and (c)(2) 
    to read as follows:
    
    
    Sec. 52.32  Discretionary sanction under section 110(m) of the Clean 
    Air Act.
    
    * * * * *
        (c) * * *
        (1) * * *
        (i) * * * 
    
    ------------------------------------------------------------------------
                                                       Date                 
                    Affected area                    sanction   Pollutant(s)
                                                     applies      affected  
    ------------------------------------------------------------------------
                                                                            
                                      *****                                 
    State of Indiana:                                                       
      Clark.......................................  .........  VOC, NOx     
      Elkhart.....................................  .........  VOC, NOx     
      Floyd.......................................  .........  VOC, NOx     
      Lake........................................  .........  VOC, NOx     
      Marion......................................  .........  VOC, NOx     
      Porter......................................  .........  VOC, NOx     
      St. Joseph..................................  .........  VOC, NOx     
      Vanderburgh.................................  .........  VOC, NOx     
    ------------------------------------------------------------------------
    
    
    * * * * *
        (2) * * * 
    
    ------------------------------------------------------------------------
                                                                     Date   
                           Affected area                           sanction 
                                                                   applies  
    ------------------------------------------------------------------------
                                                                            
                                      *****                                 
    State of Indiana:                                                       
                                                                            
                                                                            
    ------------------------------------------------------------------------
    
    
    [FR Doc. 94-1131 Filed 1-21-94; 10:00 am]
    BILLING CODE 6560-5O-P
    
    
    

Document Information

Published:
01/24/1994
Department:
Environmental Protection Agency
Entry Type:
Uncategorized Document
Action:
Notice of proposed rulemaking.
Document Number:
94-1131
Dates:
Comments on this proposed action are to be submitted by March 15, 1994. The USEPA will hold three public hearings on February 16, 18, and 22.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: January 24, 1994, IN33-1-6049, FRL-4826-5
CFR: (2)
40 CFR 553(b)(B)
40 CFR 52.32