95-10247. Approval and Promulgation of Implementation Plan; Michigan, East Lansing and Genesee County NOINFX Exemptions  

  • [Federal Register Volume 60, Number 81 (Thursday, April 27, 1995)]
    [Rules and Regulations]
    [Pages 20644-20649]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-10247]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    40 CFR Part 52
    
    [MI34-05-6892, MI35-03-6893; FRL-5197-6]
    
    
    Approval and Promulgation of Implementation Plan; Michigan, East 
    Lansing and Genesee County NOX Exemptions
    
    AGENCY: United States Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
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    SUMMARY: The EPA is granting exemptions to the East Lansing and Genesee 
    County ozone nonattainment areas, both of which are classified as 
    transitional, from applicable oxides of nitrogen (NOX) 
    requirements found in the Clean Air Act (Act). For transitional areas 
    the NOX requirements which apply are conformity, both general and 
    transportation, and nonattainment new source review. Approval of these 
    exemption requests would relieve these areas from adopting and 
    implementing all of the aforementioned NOX requirements. The State 
    of Michigan submitted NOX exemption requests for the East Lansing 
    and Genesee County areas on July 1, 1994 and July 8, 1994, 
    respectively. These requests are based on the fact that ozone 
    monitoring in these areas indicate that the average number of 
    exceedances of the National Ambient Air Quality Standard for ozone 
    during the most recent 3-year period, 1991 to 1993, is fewer than one 
    per year. Given this monitoring data, Michigan petitioned for 
    exemptions from the NOX requirements based on a demonstration that 
    additional reductions of NOX would not contribute to attainment of 
    the ozone standard in these areas.
    
    DATES: This final rule will be effective May 30, 1995.
    
    ADDRESSES: Written comments should be sent to: Carlton T. Nash, Chief, 
    Regulation Development Section, Air Toxics and Radiation Branch (AT-
    18J), EPA, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 
    60604-3590.
        Copies of the request and the EPA's analysis are available for 
    inspection at the following address: U.S. EPA, Region 5, Air and 
    Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604-
    3590. (Please telephone Douglas Aburano at (312) 353-6960 before 
    visiting the Region 5 office.)
    
    FOR FURTHER INFORMATION CONTACT: Douglas Aburano, Air Toxics and 
    Radiation Branch (AT-18J), EPA, Region 5, Chicago, Illinois 60604, 
    (312) 353-6960.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On July 1, 1994 and July 8, 1994 the State of Michigan submitted 
    petitions to the EPA requesting that the East Lansing and Genesee 
    County ozone nonattainment areas be exempted from the requirement to 
    implement NOX controls pursuant to section 182(f) of the Act. The 
    exemption request is based upon monitoring data which demonstrate that 
    the average number of exceedances of the ozone standard in these areas 
    during the most recent 3-year period, 1991 through 1993, is fewer than 
    one per year.
        On December 28, 1994, EPA published a rulemaking proposing approval 
    of the NOX exemption petitions. During the 30 day public comment 
    period, EPA received joint adverse comments from the Natural Resources 
    Defense Council, Sierra Club Legal Defense Fund, and the Environmental 
    Defense Fund and also from a private party.
    
    II. Public Comment/EPA Response
    
        The following evaluation summarizes each comment received and EPA's 
    response to the comment. A more detailed discussion of the State 
    submittal and the rationale for the EPA's action based on the Act and 
    cited references appear in EPA's technical support documents dated 
    August 9, 1994 and March 10, 1995.
    
    NRDC Comments
    
        Following is a summary of comments received from the NRDC in a 
    letter dated August 24, 1994. After each comment is EPA's response.
    
    NRDC Comment 1
    
        Certain commenters argued that NOX exemptions are provided for 
    in two [[Page 20645]] separate parts of the Act, section 182(b)(1) and 
    section 182(f). Because the NOX exemption tests in subsections 
    182(b)(1) and 182(f)(1) include language indicating that action on such 
    requests should take place ``when [EPA] approves a plan or plan 
    revision,'' these commenters conclude that all NOX exemption 
    determinations by the EPA, including exemption actions taken under the 
    petition process established by subsection 182(f)(3), must occur during 
    consideration of an approvable attainment or maintenance plan, unless 
    the area has been redesignated as attainment. These commenters also 
    argue that even if the petition procedures of subsection 182(f)(3) may 
    be used to relieve areas of certain NOX requirements, exemptions 
    from the NOX conformity requirements must follow the process 
    provided in subsection 182(b)(1), since this is the only provision 
    explicitly referenced by section 176(c), the Act's conformity 
    provisions.
    
    EPA Response
    
        Section 182(f) contains very few details regarding the 
    administrative procedure for acting on NOX exemption requests. The 
    absence of specific guidelines by Congress leaves EPA with discretion 
    to establish reasonable procedures, consistent with the requirements of 
    the Administrative Procedure Act (APA).
        The EPA disagrees with the commenters regarding the process for 
    considering exemption requests under section 182(f), and instead 
    believes that subsections 182(f)(1) and 182(f)(3) provide independent 
    procedures by which the EPA may act on NOX exemption requests. The 
    language in subsection 182(f)(1), which indicates that the EPA should 
    act on NOX exemptions in conjunction with action on a plan or plan 
    revision, does not appear in subsection 182(f)(3). And, while 
    subsection 182(f)(3) references subsection 182(f)(1), the EPA believes 
    that this reference encompasses only the substantive tests in paragraph 
    (1) [and, by extension, paragraph (2)], not the procedural requirement 
    that the EPA act on exemptions only when acting on SIPs. Additionally, 
    paragraph (3) provides that ``person[s]'' (which section 302(e) of the 
    Act defines to include States) may petition for NOX exemptions 
    ``at any time,'' and requires the EPA to make its determination within 
    6 months of the petition's submission. These key differences lead EPA 
    to believe that Congress intended the exemption petition process of 
    paragraph (3) to be distinct and more expeditious than the longer plan 
    revision process intended under paragraph (1).
        Section 182(f)(1) appears to contemplate that exemption requests 
    submitted under these paragraphs are limited to States, since States 
    are the entities authorized under the Act to submit plans or plan 
    revisions. By contrast, section 182(f)(3) provides that 
    ``person[s]''\1\ may petition for a NOX determination ``at any 
    time'' after the ozone precursor study required under section 185B of 
    the Act is finalized,\2\ and gives EPA a limit of 6 months after filing 
    to grant or deny such petitions. Since individuals may submit petitions 
    under paragraph (3) ``at any time'' this must include times when there 
    is no plan revision from the State pending at EPA. The specific 
    timeframe for EPA action established in paragraph (3) is substantially 
    shorter than the timeframe usually required for States to develop and 
    for EPA to take action on revisions to a SIP. These differences 
    strongly suggest that Congress intended the process for acting on 
    personal petitions to be distinct--and more expeditious--from the plan-
    revision process intended under paragraph (1).
    
        \1\Section 302(e) of the Act defines the term``person'' to 
    include States.
        \2\The final section 185B report was issued July 30, 1993.
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        With respect to major stationary sources, section 182(f) requires 
    States to adopt NOX NSR and RACT rules, unless exempted. These 
    rules were generally due to be submitted to EPA by November 15, 1992. 
    Thus, in order to avoid the Act sanctions, the States would have had to 
    submit their requests for NOX exemptions for EPA review and 
    rulemaking action several months before November 15, 1992. In contrast, 
    the Act specifies that the attainment demonstrations are not due until 
    November 1993 or 1994 (and EPA may take 12-18 months to approve or 
    disapprove the demonstration). For marginal ozone nonattainment areas 
    (subject to NOX NSR), no attainment demonstration is called for in 
    the Act. For maintenance plans, the Act does not specify a deadline for 
    submittal of maintenance demonstrations. Clearly, the Act envisions the 
    submittal of and EPA action on exemption requests, in some cases, prior 
    to submittal of attainment or maintenance demonstrations.
        The Act requires conformity with regard to federally-supported 
    NOX generating activities in relevant nonattainment and 
    maintenance areas. However, EPA's conformity rules explicitly provide 
    that these NOX requirements would not apply if EPA grants an 
    exemption under section 182(f). In response to the comment that section 
    182(b)(1) should be the appropriate vehicle for dealing with exemptions 
    from the NOX requirements of the conformity rule, EPA notes that 
    this issue has previously been raised in a formal petition for 
    reconsideration of EPA's final transportation conformity rule and in 
    litigation pending before the U.S. Court of Appeals for the District of 
    Columbia Circuit on the substance of both the transportation and 
    general conformity rules. The issue, thus, is under consideration 
    within EPA, but at this time remains unresolved. Additionally, 
    subsection 182(f)(3) requires that NOX exemption petition 
    determinations be made by the EPA within six months. The EPA has stated 
    in previous guidance that it intends to meet this statutory deadline as 
    long as doing so is consistent with the Administrative Procedures Act. 
    The EPA, therefore, believes that until a resolution of this issue is 
    achieved, the applicable rules governing this issue are those that 
    appear in EPA's final conformity regulations, and EPA remains bound by 
    their existing terms.
    
    NRDC Comment 2
    
        Some commenters stated that the modeling required by EPA is 
    insufficient to establish that NOX reductions would not contribute 
    to attainment since only one level of NOX control, i.e., 
    ``substantial'' reductions, is required to be analyzed. They further 
    explained that an area must submit an approvable attainment plan before 
    EPA can know whether NOX reductions will aid or undermine 
    attainment.
    
    EPA Response
    
        This comment is directed towards exemption approvals based on 
    photochemical grid modeling. This comment does not apply in the case of 
    East Lansing or Genesee County because this exemption request is based 
    on monitoring.
    
    NRDC Comment 3
    
        Three years of ``clean'' data fail to demonstrate that NOX 
    reductions would not contribute to attainment. EPA's policy erroneously 
    equates the absence of a violation for one 3-year period with 
    ``attainment.''
    
    EPA Response
    
        The EPA has separate criteria for determining if an area should be 
    redesignated to attainment under section 107 of the Act. The section 
    107 criteria are more comprehensive than the Act requires with respect 
    to NOX exemptions under section 182(f). [[Page 20646]] 
        Under section 182(f)(1)(A), an exemption from the NOX 
    requirements may be granted for nonattainment areas outside an ozone 
    transport region if EPA determines that ``additional reductions of 
    [NOX] would not contribute to attainment'' of the ozone NAAQS in 
    those areas. In some cases, an ozone nonattainment area might attain 
    the ozone standard, as demonstrated by 3 years of adequate monitoring 
    data, without having implemented the section 182(f) NOX provisions 
    over that 3-year period. The EPA believes that, in cases where a 
    nonattainment area is demonstrating attainment with 3 consecutive years 
    of air quality monitoring data without having implemented the section 
    182(f) NOX provisions, it is clear that the section 182(f) test is 
    met since ``additional reductions of [NOX] would not contribute to 
    attainment'' of the NAAQS in that area. The EPA's approval of the 
    exemption, if warranted, would be granted on a contingent basis (i.e., 
    the exemption would last for only as long as the area's monitoring data 
    continue to demonstrate attainment).
    
    NRDC Comment 4
    
        A waiver of NOX controls is unlawful if such waiver will 
    impede attainment and maintenance of the ozone standard in separated 
    downwind areas.
    
    EPA Response
    
        As a result of the comments, EPA reevaluated its position on this 
    issue and has revised the previously issued guidance. See Memorandum, 
    ``Section 182(f) Nitrogen Oxides (NOX) Exemptions--Revised Process 
    and Criteria'' dated February 8, 1995, for John Seitz's signature. As 
    described in this memorandum, EPA intends to use its authority under 
    section 110(a)(2)(D) to require a State to reduce NOX emissions 
    from stationary and/or mobile sources where there is evidence, such as 
    photochemical grid modeling, showing that NOX emissions would 
    contribute significantly to nonattainment in, or interfere with 
    maintenance by, any other State. This action would be independent of 
    any action taken by EPA on a NOX exemption request for stationary 
    sources under section 182(f). That is, EPA action to grant or deny a 
    NOX exemption request under section 182(f) would not shield that 
    area from EPA action to require NOX emission reductions, if 
    necessary, under section 110(a)(2)(D).
        Modeling analyses are underway in many areas for the purpose of 
    demonstrating attainment in the 1994 SIP revisions. Recent modeling 
    data suggest that certain ozone nonattainment areas may benefit from 
    reductions in NOX emissions far upwind of the nonattainment area. 
    For example, the northeast corridor and the Lake Michigan areas are 
    considering attainment strategies which rely in part on NOX 
    emission reductions hundreds of kilometers upwind. The EPA is working 
    with the States and other organizations to design and complete studies 
    which consider upwind sources and quantify their impacts. As the 
    studies progress, EPA will continue to work with the States and other 
    organizations to develop mutually acceptable attainment strategies.
        At the same time as these large scale modeling analyses are being 
    conducted, the States have requested exemptions from NOX 
    requirements under section 182(f) for certain nonattainment areas in 
    the modeling domain. Some of these areas may be upwind of and impact 
    upon downwind nonattainment areas. EPA intends to address the transport 
    issue through section 110(a)(2)(D) based on a domain-wide modeling 
    analysis.
        Under section 182(f) of the Act, an exemption from the NOX 
    requirements may be granted for nonattainment areas outside an ozone 
    transport region if EPA determines that ``additional reductions of 
    [NOX] would not contribute to attainment of the national ambient 
    air quality standard for ozone in the area.''\3\ As described in 
    section 4.3 of the Guidelines for Determining the Applicability of 
    Nitrogen Oxides Requirements under Section 182(f), December 16, 1993 
    (``guidance'') document, EPA believes that the term ``area'' means the 
    ``nonattainment area'' and that EPA's determination is limited to 
    consideration of the effects in a single nonattainment area due to 
    NOX emissions reductions from sources in the same nonattainment 
    area.
    
        \3\There are 3 NOX exemption tests specified in section 
    182(f). Of these, 2 are applicable for areas outside an ozone 
    transport region; the ``contribute to attainment'' test described 
    above, and the ``net air quality benefits'' test. EPA must 
    determine, under the latter test, that the net benefits to air 
    quality in an area ``are greater in the absence of NOX 
    reductions'' from relevant sources. Based on the plain language of 
    section 182(f), EPA believes that each test provides an independent 
    basis for receiving a full or limited NOX exemption. 
    Consequently, as stated in Sec. 1.4 of the December 16, 1993 EPA 
    guidance, ``[w]here any one of the tests is met (even if another 
    test is failed), the section 182(f) NOX requirements would not 
    apply or, under the excess reductions provision, a portion of these 
    requirements would not apply.''
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        Section 4.3 of the guidance goes on to encourage, but not require, 
    States/petitioners to include consideration of the entire modeling 
    domain, since the effects of an attainment strategy may extend beyond 
    the designated nonattainment area. Specifically, the guidance 
    encourages States to ``consider imposition of the NOX requirements 
    if needed to avoid adverse impacts in downwind areas, either intra- or 
    inter-State. States need to consider such impacts since they are 
    ultimately responsible for achieving attainment in all portions of 
    their State (see generally section 110) and for ensuring that emissions 
    originating in their State do not contribute significantly to 
    nonattainment in, or interfere with maintenance by, any other State 
    [see section 110(a)(2)(D)(i)(I)].''
        In contrast, Sec. 4.4 of the guidance states that the section 
    182(f) demonstration would not be approved if there is evidence, such 
    as photochemical grid modeling, showing that the NOX exemption 
    would interfere with attainment or maintenance in downwind areas. The 
    guidance goes on to explain that section 110(a)(2)(D) [not section 
    182(f)] prohibits such impacts. Consistent with the guidance in section 
    4.3, EPA believes that the section 110(a)(2)(D) and 182(f) provisions 
    must be considered independently, and hence, is withdrawing the 
    guidance presently contained in Sec. 4.4. Thus, if there is evidence 
    that NOX emissions in an upwind area would interfere with 
    attainment or maintenance in a downwind area, that action should be 
    separately addressed by the State(s) or, if necessary, by EPA in a 
    section 110(a)(2)(D) action. In addition, a section 182(f) exemption 
    request should be independently considered by EPA. In some cases, then, 
    EPA may grant an exemption from across-the-board NOX RACT controls 
    under section 182(f) and, in a separate action, require NOX 
    controls from stationary and/or mobile sources under section 
    110(a)(2)(D). It should be noted that the controls required under 
    section 110(a)(2)(D) may be more or less stringent than RACT, depending 
    upon the circumstances.
    
    NRDC Comment 5
    
        Comments were received regarding exemption of areas from the 
    NOX requirements of the conformity rules. They argue that such 
    exemptions waive only the requirements of section 182(b)(1) to 
    contribute to specific annual reductions, not the requirement that 
    conformity SIPs contain information showing the maximum amount of motor 
    vehicle NOX emissions allowed under the transportation conformity 
    rules and, similarly, the maximum allowable amounts of any such 
    NOX emissions under the general conformity rules. The commenters 
    admit that, in prior guidance, EPA has acknowledged the need to amend a 
    drafting error in the existing [[Page 20647]] transportation conformity 
    rules to ensure consistency with motor vehicle emissions budgets for 
    NOX, but want EPA in actions on NOX exemptions to explicitly 
    affirm this obligation and to also avoid granting waivers until a 
    budget controlling future NOX increases is in place.
    
    EPA Response
    
        With respect to conformity, EPA's conformity rules\4\\5\ provide a 
    NOX waiver if an area receives a section 182(f) exemption. In its 
    ``Conformity; General Preamble for Exemption From Nitrogen Oxides 
    Provisions,'' 59 FR 31238, 31241 (June 17, 1994), EPA reiterated its 
    view that in order to conform, nonattainment and maintenance areas must 
    demonstrate that the transportation plan and TIP are consistent with 
    the motor vehicle emissions budget for NOX even where a conformity 
    NOX waiver has been granted. Due to a drafting error, that view is 
    not reflected in the current transportation conformity rules. As the 
    commenters correctly note, EPA states in the June 17th notice that it 
    intends to remedy the problem by amending the conformity rule. Although 
    that notice specifically mentions only requiring consistency with the 
    approved maintenance plan's NOX motor vehicle emissions budget, 
    EPA also intends to require consistency with the attainment 
    demonstration's NOX motor vehicle emissions budget. However, the 
    exemptions were submitted pursuant to section 182(f)(3), and EPA does 
    not believe it is appropriate to delay the statutory deadline for 
    acting on these petitions until the conformity rule is amended. As 
    noted earlier in response to a previous issue raised by these 
    commenters, this issue has also been raised in a formal petition for 
    reconsideration of the Agency's final transportation conformity rule 
    and in litigation pending before the U.S. Court of Appeals for the 
    District of Columbia Circuit on the substance of both the 
    transportation and general conformity rules. This issue, thus, is under 
    consideration within the Agency, but at this time remains unresolved. 
    The EPA, therefore, believes that until a resolution of this issue is 
    achieved, the applicable rules governing this issue are those that 
    appear in the Agency's final conformity regulations, and the Agency 
    remains bound by their existing terms.
    
        \4\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).
        \5\Determining Conformity of General Federal Actions to State or 
    Federal Implementation Plans; Final Rule,'' November 30, 1993 (58 FR 
    63214).
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    NRDC Comment 6
    
        The Act does not authorize any waiver of the NOX reduction 
    requirements until conclusive evidence exists that such reductions are 
    counter-productive.
    
    EPA Response
    
        EPA does not agree with this comment since it ignores Congressional 
    intent as evidenced by the plain language of section 182(f), the 
    structure of the Title I ozone subpart as a whole, and relevant 
    legislative history. By contrast, in developing and implementing its 
    NOX exemption policies, EPA has sought an approach that reasonably 
    accords with that intent. Section 182(f), in addition to imposing 
    control requirements on major stationary sources of NOX similar to 
    those that apply for such sources of VOC, also provides for an 
    exemption (or limitation) from application of these requirements if, 
    under one of several tests, EPA determines that in certain areas 
    NOX reductions would generally not be beneficial. In subsection 
    182(f)(1), Congress explicitly conditioned action on NOX 
    exemptions on the results of an ozone precursor study required under 
    section 185B. Because of the possibility that reducing NOX in a 
    particular area may either not contribute to ozone attainment or may 
    cause the ozone problem to worsen, Congress included attenuating 
    language, not just in section 182(f), but throughout the Title I ozone 
    subpart, to avoid requiring NOX reductions where it would be 
    nonbeneficial or counterproductive. In describing these various ozone 
    provisions (including section 182(f), the House Conference Committee 
    Report states in pertinent part: ``[T]he Committee included a separate 
    NOX/VOC study provision in section [185B] to serve as the basis 
    for the various findings contemplated in the NOX provisions. The 
    Committee does not intend NOX reduction for reduction's sake, but 
    rather as a measure scaled to the value of NOX reductions for 
    achieving attainment in the particular ozone nonattainment area.'' H.R. 
    Rep. No. 490, 101st Cong., 2d Sess. 257-258 (1990). As noted in 
    response to an earlier comment by these same commenters, the command in 
    subsection 182(f)(1) that EPA ``shall consider'' the 185B report taken 
    together with the timeframe the Act provides both for completion of the 
    report and for acting on NOX exemption petitions clearly 
    demonstrate that Congress believed the information in the completed 
    section 185B report would provide a sufficient basis for EPA to act on 
    NOX exemption requests, even absent the additional information 
    that would be included in affected areas' attainment or maintenance 
    demonstrations. However, while there is no specific requirement in the 
    Act that EPA actions granting NOX exemption requests must await 
    ``conclusive evidence'', as the commenters argue, there is also nothing 
    in the Act to prevent EPA from revisiting an approved NOX 
    exemption if warranted due to better ambient information.
        In addition, the EPA believes (as described in EPA's December 1993 
    guidance) that section 182(f)(1) of the Act provides that the new 
    NOX requirements shall not apply (or may by limited to the extent 
    necessary to avoid excess reductions) if the Administrator determines 
    that any one of the following tests is met:
        (1) in any area, the net air quality benefits are greater in the 
    absence of NOX reductions from the sources concerned;
        (2) in nonattainment areas not within an ozone transport region, 
    additional NOX reductions would not contribute to ozone attainment 
    in the area; or
        (3) in nonattainment areas within an ozone transport region, 
    additional NOX reductions would not produce net ozone air quality 
    benefits in the transport region.
    
    Based on the plain language of section 182(f), EPA believes that each 
    test provides an independent basis for receiving a full or limited 
    NOX exemption.
        Only the first test listed above is based on a showing that 
    NOX reductions are ``counter-productive.'' If one of the tests is 
    met (even if another test is failed), the section 182(f) NOX 
    requirements would not apply or, under the excess reductions provision, 
    a portion of these requirements would not apply.
    
    Private Citizen Comment 1
    
        The Rose Lake [monitoring] site is in a very rural area surrounded 
    by vegetation that would preclude any accurate readings from the site, 
    plus it is an extensive distance from a highway with a significant 
    volume of vehicles that would generate measurable ozone levels. I also 
    note this site is in the wrong direction by at least 45 degrees to pick 
    up any ozone levels from the East Lansing-Lansing urbanized area.
        The 220 North Pennsylvania [monitoring] site is even more protected 
    [than the Rose Lake monitoring site], being in the heart of a 
    residential area, with a low volume highway adjacent. It 
    [[Page 20648]] is protected from the west and central part of the 
    Lansing area, the prevailing wind source is from the west, and it is 
    also located north of any industrial ozone that could be generated by 
    several automotive plants.
    
    EPA Response
    
        As part of the State of Michigan's ozone monitoring networks, both 
    the Rose Lake monitoring site and the 220 North Pennsylvania monitoring 
    site have met the criteria established in the Code of Federal 
    Regulations (CFR) for probe siting, as well as other EPA guidance at 
    the time they were established. A follow-up review conducted on March 
    2, 1995 indicates they are still in compliance. These requirements can 
    be found in 40 CFR part 58 Appendix E.
        A review of wind speed and direction data for the summer months 
    indicates that the Rose Lake monitor is within the area likely to be 
    downwind of East Lansing. Furthermore, additional monitors in Genesee 
    County are located in the area likely to see the maximum impact from 
    the formation of ozone from emissions in the East Lansing area. In 
    other words, the NOX emissions from sources located in the East 
    Lansing area will probably not generate ozone until they have reached 
    the Genesee County area where there is an acceptable monitoring 
    network.
    
    Private Citizen Comment 2
    
        Provisions of the Act and the provisions of the Intermodal Surface 
    Transportation Efficiency Act (ISTEA) should be jointly examined by EPA 
    and the Federal Highway Administration (FHWA) to determine the effect 
    of not exempting the East Lansing area as has been proposed. For 
    example, could this exemption be granted if these monitors were placed 
    in areas of high traffic volume?
    
    EPA Response
    
        The hypothetical question raised can only be answered if monitors 
    were actually placed in areas of high traffic volume. Placing a monitor 
    in an area of high traffic volume, where high NOX concentrations 
    could be expected, would most likely give erroneously low ozone 
    readings because of the fact that high NOX concentrations have the 
    effect of ``scavenging'' ozone. Therefore, there is no reason to place 
    a monitor in an area of high traffic volume. In addition to this, as 
    has already been mentioned in the previous response, the State of 
    Michigan already has an approved monitoring network for this area and 
    establishing further monitors has not been demonstrated to be 
    warranted.
        When the EPA is presented with a NOX exemption petition, it is 
    faced with the task of approving or disapproving such a request solely 
    on the Clean Air Act provisions and guidance which is developed under 
    the Clean Air Act. ISTEA does not play a role in the decision making 
    process for NOX exemptions.
    
    III. Final Action
    
        The comments received were found to warrant no changes from 
    proposed to final action on this NOX exemption request. Therefore, 
    EPA is granting the East Lansing and Genesee County areas section 
    182(f) NOX exemptions based upon the evidence provided by the 
    State and the State's compliance with the requirements outlined in the 
    Act and in EPA guidance. However, it should be noted that this 
    exemption is being granted on a contingent basis; i.e., the exemption 
    will last for only as long as the area's ambient monitoring data 
    continue to demonstrate attainment of the ozone NAAQS.
        Both of these areas are classified as transitional. With a 
    classification of transitional, an area which has not been granted a 
    NOX exemption would be subject to general conformity, 
    transportation conformity, and nonattainment new source review NOX 
    requirements. Since these petitions for exemption are applicable 
    areawide, as opposed to source-specific, in addition to exempting these 
    areas from the nonattainment new source review requirements for 
    NOX, this action also exempts these areas from the NOX 
    conformity requirements of the Act (see G. T. Helms, January 12, 1995 
    ``Scope of Nitrogen Oxides (NOX) Exemptions'' memorandum).
        If, subsequent to the NOX waiver being granted, EPA determines 
    that either area has violated the standard, the section 182(f) 
    exemption for that area, as of the date of the determination, would no 
    longer apply. EPA would notify the State that the exemption no longer 
    applies, and would also provide notice to the public in the Federal 
    Register. If an exemption is revoked, the State must thereafter comply 
    with any applicable NOX requirements set forth in the Act, such as 
    those for NOX NSR and conformity. The air quality data relied on 
    for the above determinations must be consistent with 40 CFR part 58 
    requirements and other relevant EPA guidance and recorded in EPA's 
    Aerometric Information Retrieval System. Additionally, the State must 
    continue to operate an appropriate air quality monitoring network, in 
    accordance with 40 CFR part 58, to verify the attainment status of the 
    area.
        This action will become effective on May 30, 1995.
    
    IV. Miscellaneous
    
    A. Applicability to Future SIP Decisions
    
        Nothing in this action should be construed as permitting, allowing 
    or establishing a precedent for any future request for revision to any 
    SIP. The EPA shall consider each request for revision to the SIP in 
    light of specific technical, economic, and environmental factors and in 
    relation to relevant statutory and regulatory requirements.
    
    B. Executive Order 12866
    
        This action has been classified as a Table 2 action by the Regional 
    Administrator under the procedures published in the Federal Register on 
    January 19, 1989 (54 FR 2214-2225), as revised by an October 4, 1993 
    memorandum from Michael Shapiro, Acting Assistant Administrator for Air 
    and Radiation. The OMB has exempted this regulatory action from E.O. 
    12866 review.
    
    C. 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.
        This approval does not create any new requirements. Therefore, I 
    certify that this action does not have a significant impact on any 
    small entities affected. Moreover, due to the nature of the Federal-
    State relationship under the Act, preparation of the regulatory 
    flexibility analysis would constitute Federal inquiry into the economic 
    reasonableness of the State action. The Act forbids EPA to base its 
    actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
    E.P.A., 427 U.S. 246, 256-66 (1976).
        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 assess whether various actions undertaken in association with 
    proposed or final regulations 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.
        EPA's final action will relieve requirements otherwise imposed 
    under [[Page 20649]] the Clean Air Act and, hence does not impose any 
    federal intergovernmental mandate, as defined in section 101 of the 
    Unfunded Mandates Act. This action also will not impose a mandate that 
    may result in estimated costs of $100 million or more to either State, 
    local, or tribal governments in the aggregate, or to the private 
    sector.
    
    D. Petitions for Judicial Review
    
        Under section 307(b)(1) of the Act, petitions for judicial review 
    of this action must be filed in the United States Court of Appeals for 
    the appropriate circuit by June 26, 1995. Filing a petition for 
    reconsideration by the Administrator of this final rule does not affect 
    the finality of this rule for the purposes of judicial review, nor does 
    it extend the time within which a petition for judicial review may be 
    filed and shall not postpone the effectiveness of such rule or action. 
    This action may not be challenged later in proceedings to enforce its 
    requirements (see section 307(b)(2)).
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Oxides of 
    nitrogen, Incorporation by reference, Intergovernmental relations, 
    Ozone.
    
        Dated; April 13, 1995.
    Valdas V. Adamkus,
    Regional Administrator.
    
        40 CFR part 52 is amended as follows.
    
    PART 52--[AMENDED]
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671(q).
    
    Subpart X--Michigan
    
        2. Section 52.1174 is amended by adding paragraph (e) and (f) to 
    read as follows:
    
    
    Sec. 52.1174  Control strategy: Ozone
    
    * * * * *
        (e) Approval--On July 1, 1994, the Michigan Department of Natural 
    Resources submitted a petition for exemption from the oxides of 
    nitrogen requirements of the Clean Air Act for the East Lansing ozone 
    nonattainment area. The submittal pertained to the exemption from the 
    oxides of nitrogen requirements for conformity and new source review. 
    Theses are required by sections 176(c) and 182(f) of the 1990 amended 
    Clean Air Act, respectively. If a violation of the ozone standard 
    occurs in the East Lansing ozone nonattainment area, the exemption 
    shall no longer apply.
        (f) Approval--On July 8, 1994, the Michigan Department of Natural 
    Resources submitted a petition for exemption from the oxides of 
    nitrogen requirements of the Clean Air Act for the Genesee County ozone 
    nonattainment area. The submittal pertained to the exemption from the 
    oxides of nitrogen requirements for conformity and new source review. 
    These are required by sections 176(c) and 182(f) of the 1990 amended 
    Clean Air Act, respectively. If a violation of the ozone standard 
    occurs in the Genesee County ozone nonattainment area, the exemption 
    shall no longer apply.
    
    [FR Doc. 95-10247 Filed 4-26-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
5/30/1995
Published:
04/27/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-10247
Dates:
This final rule will be effective May 30, 1995.
Pages:
20644-20649 (6 pages)
Docket Numbers:
MI34-05-6892, MI35-03-6893, FRL-5197-6
PDF File:
95-10247.pdf
CFR: (1)
40 CFR 52.1174