[Federal Register Volume 63, Number 3 (Tuesday, January 6, 1998)]
[Proposed Rules]
[Pages 456-459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-241]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[IN76-1; FRL-5945-9]
Approval and Promulgation of Implementation Plan; Indiana
AGENCY: Environmental Protection Agency.
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) proposes to approve
Indiana's request to grant an exemption for the northwest Indiana (Lake
and Porter Counties) severe ozone nonattainment area from the otherwise
applicable Oxides of Nitrogen (NOX) transportation
conformity requirements. On May 24, 1996, the Indiana Department of
Environmental Management (IDEM) submitted to the EPA a State
Implementation Plan (SIP) revision request for an exemption under
section 182(b)(1) of the Clean Air Act (Act) from the transportation
conformity requirements for NOX for the northwest Indiana
(Lake and Porter Counties) severe ozone nonattainment area. On November
26, 1996, IDEM submitted additional materials, including Public Hearing
documentation to complete the submittal. The request is based on the
urban airshed modeling (UAM) conducted for the attainment demonstration
for the Lake Michigan Ozone Study (LMOS) modeling domain. The rationale
for this proposed approval is set forth below; additional information
is available at the address indicated below.
Dates: Written comments on this proposed action must be received by
February 5, 1998.
ADDRESSES: Written comments should be sent to: J. Elmer Bortzer, Chief,
Regulation Development Section, Air Programs Branch (AR-18J), EPA,
Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604-3590.
Copies of the SIP revision and supporting documentation,
[[Page 457]]
are available for inspection at the following address: United States
Environmental Protection Agency, Region 5, Air and Radiation Division,
77 West Jackson Boulevard, Chicago, Illinois 60604. (It is recommended
that you telephone Patricia Morris at (312) 353-8656 before visiting
the Region 5 Office.)
FOR FURTHER INFORMATION CONTACT: Patricia A. Morris, Regulation
Development Section (AR-18J), Air Programs Branch, Air and Radiation
Division, United States Environmental Protection Agency, Region 5, 77
West Jackson Boulevard, Chicago, Illinois 60604, Telephone Number (312)
353-6680.
SUPPLEMENTARY INFORMATION:
I. Background
Clean Air Act section 176(c)(3)(A)(iii) requires, in order to
demonstrate conformity with the applicable SIP, that transportation
plans and Transportation Improvement Programs (TIPs) contribute to
emissions reductions in ozone and carbon monoxide nonattainment areas
that do not have motor vehicle emissions budgets. This requirement is
implemented in 40 CFR Sec. 93.119, which establishes the so-called
``build/no-build test.'' This test requires a demonstration that the
``Action'' scenario (representing the implementation of the proposed
transportation plan/TIP) will result in lower motor vehicle emissions
than the ``Baseline'' scenario (representing the implementation of the
current transportation plan/TIP). In addition, the ``Action'' scenario
must result in emissions lower than 1990 levels.
The November 24, 1993 transportation conformity rule \1\ and the
August 15, 1997, final transportation conformity rule amendments:
Flexibility and Streamlining,\2\ do not require the build/no-build test
and less-than-1990 test for NOX as an ozone precursor in
ozone nonattainment areas, where the Administrator determines that
additional reductions of NOX would not contribute to
attainment of the National Ambient Air Quality Standard (NAAQS) for
ozone.
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\1\ ``Criteria and Procedures for Determining Conformity to
State or Federal Implementation Plans of Transportation Plans,
Programs, and Projects Funded or Approved under Title 23 U.S.C. of
the Federal Transit Act,'' November 24, 1993 (58 FR 62188).
\2\ ``Transportation Conformity Rule Amendments: Flexibili8ty
and Streamlining; Final Rule'' August 15, 1997 (62 FR 43780).
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Clean Air Act section 176(c)(3)(A)(iii), which is the conformity
provision requiring contributions to emission reductions before SIPs
with emissions budgets have been submitted, specifically references
Clean Air Act section 182(b)(1). That section requires submission of
State plans that, among other things, provide for specific annual
reductions of volatile organic compounds (VOCs) and NOX
emissions ``as necessary'' to attain the ozone standard by the
applicable attainment date. Section 182(b)(1) further states that its
requirements do not apply in the case of NOX for those ozone
nonattainment areas for which EPA determines that additional reductions
of NOX would not contribute to ozone attainment.
For ozone nonattainment areas, the process for submitting waiver
requests and the criteria used to evaluate them are explained in the
December 1993 EPA document ``Guidelines for Determining the
Applicability of Nitrogen Oxides Requirements Under Section 182(f),''
and the May 27, 1994, and February 8, 1995, memoranda from John S.
Seitz, Director of the Office of Air Quality Planning and Standards, to
Regional Air Division Directors, titled ``Section 182(f) NOX
Exemptions--Revised Process and Criteria.''
On July 13, 1994, the States of Illinois, Indiana, Michigan, and
Wisconsin (the States) submitted to the EPA a petition for an exemption
from the requirements of section 182(f) of the Clean Air Act (Act). The
States, acting through the Lake Michigan Air Directors Consortium
(LADCo), petitioned for an exemption from the Reasonably Available
Control Technology (RACT) and New Source Review (NSR) requirements for
major stationary sources of NOX. The petition also asked for
an exemption from the transportation and general conformity
requirements for NOX in all ozone nonattainment areas in the
Region.
On March 6, 1995, the EPA published a rulemaking proposing approval
of the NOX exemption petition for the RACT, NSR and
transportation and general conformity requirements. A number of
comments were received on the proposal. Several commenters argued that
NOX exemptions are provided for in two separate parts of the
Act, in sections 182(b)(1) and 182(f), but that the Act's
transportation conformity provisions in section 176(c)(3) explicitly
reference section 182(b)(1). In April 1995, the EPA entered into an
agreement to change the procedural mechanism through which a
NOX exemption from transportation conformity would be
granted (EDF et al. v. EPA, No. 94-1044, U.S. Court of Appeals, D.C.
Circuit). As a result, instead of a petition under 182(f),
transportation conformity NOX exemptions for ozone
nonattainment areas that are subject to section 182(b)(1) are to be
submitted as a SIP revision request. The northwest Indiana (Lake and
Porter Counties) ozone nonattainment area is classified as severe (part
of the Chicago severe nonattainment area) and, thus, is subject to
section 182(b)(1). The EPA approved the NOX exemption for
the States of Illinois, Indiana, Wisconsin and Michigan for RACT, NSR
and general conformity on January 26, 1996, (61 FR 2428).
The transportation conformity requirements are found at sections
176(c)(2), (3), and (4) of the Act. The conformity requirements apply
on an area-wide basis in all nonattainment and maintenance areas. The
EPA's transportation conformity rule was amended on August 29, 1995 (60
FR 44762) to reference section 182(b)(1) rather than 182(f) as the
means for exempting areas subject to section 182(b)(1) from the
transportation conformity NOX requirements.
The May 24, 1996, SIP revision request from Indiana was submitted
to meet the requirements of 182(b)(1). A public hearing on this SIP
revision request was held on June 11, 1996.
In evaluating the 182(b) SIP revision request, the EPA considered
whether additional NOX reductions would contribute to
attainment of the standard in the Lake and Porter Counties ozone
nonattainment area and also in the downwind areas of the LMOS modeling
domain.
The role that NOX emissions play in producing ozone at
any given place and time is complex. In the presence of sunlight,
nitrogen dioxide (NO2) photo-dissociates into nitrogen oxide
(NO) and a single oxygen atom. The oxygen atom reacts with molecular
oxygen (O2) to form ozone (O3). NO, on the other
hand, near its source area readily reacts with ozone to form
O2 and NO2. The generated NO2 is then
free to photo-dissociate and lead to ozone formation further downwind.
The reaction of NO with ozone, which locally reduces ozone
concentrations, is referred to as ozone scavenging and is one of the
primary local sinks for ozone in the lower atmosphere in and near NO
source areas. Since emissions of NOX from fuel combustion
sources, whether internal combustion engines or stationary combustion
sources, such as industrial boilers, contain significant amounts of NO,
it is expected that ozone concentrations immediately downwind of such
NOX sources will be reduced through ozone scavenging.
Therefore, reducing NOX emissions can lead to increased
ozone concentrations in the vicinity of the controlled NOX
emission sources, whereas reducing NOX
[[Page 458]]
emissions may lead to reduction in ozone concentrations further
downwind. Reducing NOX emissions in VOC-limited areas (areas
with low VOC emissions relative to NOX emissions) may
produce minimal ozone reductions or even ozone increases.
As outlined in relevant EPA guidance, the use of photochemical grid
modeling is the recommended approach for testing the contribution of
NOX emission reductions to attainment of the ozone standard.
This approach simulates conditions over the modeling domain that may be
expected at the attainment deadline for three emission reduction
scenarios: (1) Substantial VOC reductions, (2) substantial
NOX reductions, and (3) both VOC and NOX
reductions. If the area wide predicted maximum one-hour ozone
concentration for each day modeled under scenario (1) is less than or
equal to those from scenarios (2) and (3) for the corresponding days,
the test is passed and the section 182(f) NOX emissions
reduction requirements would not apply.
In making this determination under section 182(b)(1) that the
NOX requirements do not apply, or may be limited in the Lake
Michigan area, the EPA has considered the national study of ozone
precursors completed pursuant to section 185B of the Act. The EPA has
based its decision on the demonstration and the supporting information
provided in the SIP revision request.
II. Summary of Submittal
On May 24, 1996, the State of Indiana submitted as a revision to
the SIP, a request for a waiver from the transportation conformity
NOX requirements for northwest Indiana (Lake and Porter
Counties). The submittal included the LMOS UAM modeling for the
attainment demonstration for 3 ozone episodes during 1991. The modeling
supported the request by documenting that NOX reductions in
the LMOS modeling domain would not contribute to attainment and, in
fact, would be detrimental to the goal of reaching attainment. The IDEM
held a public hearing on the submittal on June 11, 1996.
Pursuant to 40 CFR Part 93, Subpart A, 40 CFR Part 51, Subpart T,
the SIP revision request seeks an exemption from the transportation
conformity requirements for NOX in the northwest Indiana
(Lake and Porter Counties) severe ozone nonattainment area. The States
have utilized the UAM to demonstrate that reductions in NOX
in the LMOS modeling domain will not contribute to attainment of the
ozone standard. To conduct the modeling analysis, the following steps
were followed: (a) emissions were projected to 1996 (the deadline for
implementation of the 15 percent reasonable further progress reduction)
and 2007 (the attainment deadline for the severe nonattainment areas)
from the 1990 base year, (b) it was assumed that a 40 percent VOC
emission reduction beyond that achieved as a result of emission
controls mandated by the Act would be necessary to attain the ozone
standard in the LMOS modeling domain, (c) a 40 percent NOX
emission reduction in grid B (that portion of the LMOS modeling domain
that is essentially composed of the ozone nonattainment areas within
the modeling domain) beyond the projected emission levels was assumed
for all anthropogenic NOX emissions, (d) a 40 percent VOC
emission reduction and a 40 percent NOX reduction in grid B
beyond projected emission levels were assumed for all anthropogenic VOC
and NOX emissions and (e) the ozone modeling results for
(b), (c), and (d) were compared considering the modeled domain-wide
peak ozone concentrations and temporal and spatial extent of modeled
ozone concentrations above 120 parts per billion (ppb).
For all modeled days using 1996 and 2007 conditions, domain-wide
peak ozone concentrations for ``VOC-only'' controls were found to be
lower than or equal to those for ``NOX-only'' controls or
those for ``VOC plus NOX'' controls. In addition,
consideration of daily peak ozone isopleth maps (these maps are
included in the documentation of the section 182(b) SIP revision
request) shows that the ``VOC-only'' control scenario leads to the
smallest areas with predicted peak ozone concentrations exceeding 120
ppb.
Additional sensitivity tests were conducted for a 40 percent
NOX emission reduction that was applied only to point
sources in Grid B for episode 2 and 1996 conditions for both an assumed
NOX reduction alone and a 40 percent reduction in both VOCs
and NOX. These sensitivity tests compared to the scenarios
with across the board anthropogenic NOX reductions
demonstrated that control of ground level NOX sources (such
as transportation sources) did not contribute to attainment of the
standard and in fact increased the domain wide peak ozone
concentrations exceeding 120 ppb and the number of hours that exceeded
120 ppb. This result was more pronounced than with the point source
only NOX control.
III. Analysis of the Submittal
Review of the modeling results shows a very definite directional
signal indicating that application of NOX controls in the
northwest Indiana (Lake and Porter Counties) severe ozone nonattainment
area would exacerbate peak ozone concentrations in the LMOS modeling
domain. The LMOS modeling domain includes Chicago, Northwest Indiana,
Western Michigan and Eastern Wisconsin. The States and LADCo have
completed the validation process for the UAM modeling system used in
the demonstration of attainment for the LMOS modeling domain and EPA
has approved the validation. Documentation of the modeling validation
is included in the SIP revision request materials.
Although ozone concentrations modeled further downwind from the
urban source areas increase as a result of increased NOX
point source emissions, this is not the case with the ground level
NOX sources. Modeling results with low level NOX
source reductions are included in the documentation and show a
disbenefit when NOX emissions are reduced. LADCo and the
States view the potential increase in outflow ozone concentrations with
increasing NOX point source emissions to be marginal. More
importantly, the SIP revision request demonstrates that additional
reductions in NOX would not contribute to attainment of the
ozone standard in the LMOS domain. These results are believed to be
consistent with EPA's section 185B report to Congress. Therefore, based
on the report's conformance with EPA guidance, the EPA believes the
State of Indiana's demonstration is adequate, and thus is proposing to
approve the transportation conformity waiver request. It is noted by
LADCo, however, that subsequent modeling analyses may lead to an ozone
attainment plan which includes, for specified portions of the LMOS
domain only, both NOX and VOC emission controls. Indiana and
the other LADCO states have indicated their intent to review the need
for NOX reduction in the nonattainment area.
Monitoring data, such as concentrations of non-methane hydrocarbons
and NOX and derived/monitored ozone production potentials of
air parcels, collected for the urban source areas during the 1991 field
study, generally support the approval of the NOX waiver.
However, the primary basis for approval of the NOX waiver is
the modeling results submitted in support of the waiver. The 1991 field
data by themselves do not provide adequate support for the waiver,
since these data
[[Page 459]]
are limited in nature and do not assess the impacts of post-1991
NOX controls on LMOS modeling domain peak ozone
concentrations.
VOC and NOX emission reductions were found to produce
different impacts spatially. In and downwind of major urban areas,
within the ozone nonattainment areas, VOC reductions were effective in
lowering peak ozone concentrations, while NOX emission
reductions resulted in increased peak ozone concentrations. Farther
downwind, within attainment areas, VOC emissions reductions became less
effective for reducing ozone concentrations, while NOX
emission reductions were effective in lowering ozone concentrations.
The magnitude of ozone decreases farther downwind due to NOX
emission reductions was less than the magnitude of ozone increases in
the ozone nonattainment areas as a result of the same NOX
emission reductions.
Analyses of ambient data by LMOS contractors provided results which
corroborated the modeling results. These analyses identified areas of
VOC NOX limited conditions (VOC-limited conditions would
imply a greater sensitivity of ozone concentrations to changes to VOC
emissions; the reverse would be true for NOX limited
conditions) and tracked the ozone and ozone precursor concentrations in
the urban plumes as they moved downwind. The analyses indicated VOC-
limited conditions in the Chicago/Northwest Indiana and Milwaukee areas
and NOX-limited conditions further downwind. These results
imply that VOC controls in the Chicago/Northwest Indiana, Milwaukee,
and Western Michigan areas would be more effective at reducing peak
ozone concentrations within the Lake Michigan ozone nonattainment
areas.
The consistency between the modeling results and the ambient data
analysis results for all episodes with joint data supports the view
that the UAM modeling system developed in the LMOS may be used to
investigate the relative merits of VOC versus NOX emission
controls. The UAM-V results for all modeled episodes point to the
benefits of VOC controls versus NOX controls in reducing the
modeled domain peak ozone concentrations.
For a more detailed analysis of the modeling analysis results,
please see the August 22, 1994 memorandum entitled ``Technical Review
of a Four State Request for a Section 182(f) Exemption from Oxides of
Nitrogen (NOX) Reasonably Available Control Technology
(RACT) and New Source Review (NSR) Requirements'', which is contained
in the docket for this action.
The EPA believes LADCo's UAM application has adequately met the
requirement to demonstrate that NOX controls within the
Northwest Indiana (Lake and Porter Counties) severe ozone nonattainment
area and through out the LMOS domain will not contribute, but instead
will interfere with attainment of the ozone standard. The modeling
demonstration has been used to support the approval of a NOX
exemption for the States of Illinois, Indiana, Wisconsin and Michigan
for Ract, NSR and general conformity (see 61 FR 5291). The modeling has
also been used to support transportation conformity NOX
waivers under 182(b) for the Chicago ozone nonattainment area in
Illinois (see 61 FR 5291), and, Muskegon County in Michigan (see 62 FR
50512).
In considering the importance of the Ozone Transport Assessment
Group (OTAG) process and attainment plan modeling efforts, the results
of OTAG technical work are now available. The EPA published on November
7, 1997, a notice of proposed rulemaking which proposes to set State
wide NOX budgets for 22 states including the State of
Indiana. The proposed rulemaking would require appropriate States
(including Indiana) to submit SIP measures to ensure emissions
reductions of NOX needed to prevent significant transport of
ozone. The States have the flexibility to determine which sources are
the most appropriate from which to require reductions of
NOX. The EPA, however, has based the proposed NOX
budgets primarily on reductions from stationary sources such as
utilities and industrial boilers. The EPA explains in the notice of
proposed rulemaking the basis for the proposal and rationale.
IV. EPA Action
The EPA is proposing approval of the transportation conformity
NOX waiver SIP revision for the State of Indiana.
The EPA reserves the right to require NOX emission
controls for transportation sources under section 110(a)(2)(D) of the
Act if future ozone modeling demonstrates that such controls are needed
to achieve the ozone standard in downwind areas.
V. Administrative Requirements
A. Executive Order 12866
The Office of Management and Budget has exempted this regulatory
action from Executive Order 12866 review.
B. Regulatory Flexibility
Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA
must prepare a regulatory flexibility analysis assessing the impact of
any proposed or final rule on small entities. 5 U.S.C. 603 and 604.
Alternatively, EPA may certify that the rule will not have a
significant impact on a substantial number of small entities. Small
entities include small businesses, small not-for-profit enterprises,
and government entities with jurisdiction over populations of less than
50,000.
SIP approvals under section 110 and subchapter I, part D of the CAA
do not create any new requirements, but simply approve requirements
that the State is already imposing. Therefore, because the Federal SIP
approval does not impose any new requirements, the Administrator
certifies that it does not have a significant impact on any small
entities affected. Moreover, due to the nature of the Federal-State
relationship under the CAA, preparation of a flexibility analysis would
constitute Federal inquiry into the economic reasonableness of the
State action. The Clean Air Act forbids EPA to base its actions
concerning SIPs on such grounds. Union Electric Co. v. EPA., 427 U.S.
246, 256-66 (1976); 42 U.S.C. 7410(a)(2).
C. Unfunded Mandates
Under Section 202 of the Unfunded Mandates Reform Act of 1995,
signed into law on March 22, 1995, EPA must undertake various actions
in association with any proposed or final rule that includes a Federal
mandate that may result in estimated costs to state, local, or tribal
governments in the aggregate; or to the private sector, of $100 million
or more. This Federal action approves pre-existing requirements under
state or local law, and imposes no new requirements. Accordingly, no
additional costs to state, local, or tribal governments, or the private
sector, result from this action.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Ozone, Oxides of
Nitrogen, Transportation conformity, Transportation-air quality
planning, Volatile organic compounds.
Authority: 42 U.S.C. 7401-7671q.
Dated: December 19, 1997.
David A. Ullrich,
Acting Regional Administrator.
[FR Doc. 98-241 Filed 1-5-98; 8:45 am]
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