95-12407. Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of California, Approval of the Maintenance Plan for the San Francisco Bay Area and Redesignation of the San Francisco Bay ...  

  • [Federal Register Volume 60, Number 98 (Monday, May 22, 1995)]
    [Rules and Regulations]
    [Pages 27028-27041]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-12407]
    
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Parts 52 and 81
    
    [CA-64-1-6997; FRL-5202-4]
    
    
    Approval and Promulgation of Implementation Plans and Designation 
    of Areas for Air Quality Planning Purposes; State of California, 
    Approval of the Maintenance Plan for the San Francisco Bay Area and 
    Redesignation of the San Francisco Bay Area to Attainment; Approval of 
    Emissions Inventory; Approval of NOX Exemption Petition
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The EPA is approving a redesignation request and maintenance 
    plan for the San Francisco Bay Area as a revision to California's State 
    Implementation Plan (SIP) for ozone. In addition, EPA is approving the 
    1990 base year emissions inventory and a petition requesting an 
    exemption from the section 182(f) nitrogen oxides (NOX) 
    requirements for the area.
        On April 13, 1994, EPA notified the State of California that EPA 
    had made a finding of incompleteness for required programs under the 
    Clean Air Act (CAA or the Act). The EPA's redesignation of the San 
    Francisco Bay Area to attainment and approval of the 1990 emissions 
    inventory abrogates those requirements for the area. Therefore, the 
    sanctions and federal implementation plan clocks begun by those 
    findings are stopped at the time of this redesignation.
    
    EFFECTIVE DATE: This final rule will become effective on June 21, 1995.
    
    ADDRESSES: Copies of the documents relevant to this action are 
    available for public inspection during normal business hours at the 
    following locations:
    
    Plans Development Section (A-2-2), Air and Toxics Division, U.S. 
    Environmental Protection Agency, Region IX, 75 Hawthorne Street, San 
    Francisco, CA 94105.
    California Air Resources Board, 2020 L Street, Sacramento, CA 94814.
    
    FOR FURTHER INFORMATION CONTACT: Wallace Woo, Chief, Plans Development 
    Section, Air & Toxics Division, U.S. Environmental Protection Agency, 
    Region IX, at (415) 744-1207.
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
    A. Ozone Redesignation Request and Maintenance Plan
    
        The San Francisco Bay Area ozone nonattainment area has attained 
    the National Ambient Air Quality Standard (NAAQS) for ozone based on 
    three years of quality assured ambient air quality data, for the period 
    1990-1992. Therefore, in accordance with the CAA, as amended in 1990, 
    and to ensure continued attainment of the standard for at least 10 
    years, the State of California has submitted an ozone maintenance plan 
    which projects continued attainment of the ozone NAAQS in the San 
    Francisco Bay Area.
        The maintenance plan submitted for the San Francisco Bay Area meets 
    all applicable requirements of the CAA. The San Francisco Bay Area 
    submittal complies with section 175A of the Act which sets forth 
    maintenance plan requirements for areas seeking redesignation from 
    nonattainment to attainment. The plan demonstrates attainment of the 
    NAAQS for at least 10 years after the area is redesignated.
        Eight years after the redesignation, the state commits to submit a 
    revised maintenance plan which demonstrates attainment for the ten year 
    period following the initial ten year period. In the event of a NAAQS 
    violation, the maintenance plan contains contingency measures adequate 
    to ensure prompt correction of the air quality problem.
        The state submittal being approved today contains a redesignation 
    request in which the state demonstrates that the area has fulfilled the 
    redesignation requirements of the CAA pursuant to section 107(d)(3)(E), 
    a NOX exemption petition pursuant to section 182(f), and a 1990 
    emissions inventory of ozone precursors pursuant to section 182(a) for 
    the area.
        On September 28, 1994 (59 FR 49361-49370), EPA published a notice 
    of proposed rulemaking (NPRM) for the State of California SIP. The NPRM 
    proposed that the San Francisco Bay Area be redesignated from 
    nonattainment to attainment for ozone and that the maintenance plan 
    submitted by the State of California as a revision to the California 
    SIP be approved contingent upon EPA taking final rulemaking action to 
    approve various SIP deficiencies for the San Francisco Bay Area 
    (including volatile organic compound (VOC) reasonable available control 
    technology (RACT) corrections, emission statement rule, NSR 
    corrections) and California's submittal of the ozone maintenance plan 
    amendments to the contingency plan and the 1990 base year emissions 
    inventory. In addition, the NPRM proposed approval of a NOX waiver 
    petition and 1990 base year emissions inventory.
        Since that time, the EPA has taken final rulemaking action to 
    approve both the volatile organic compound (VOC) reasonable available 
    control technology (RACT) rules which resolve the deficiencies and the 
    emission statement rule. Below is the list of rules that the EPA has 
    approved since the time of proposed rulemaking on the redesignation. 
    These approvals remove one of the conditions for redesignation of the 
    San Francisco Bay Area.
    
    ----------------------------------------------------------------------------------------------------------------
          Rule No.                          Rule title                            Notice of final rulemaking        
    ----------------------------------------------------------------------------------------------------------------
    8-1.................  General Provisions...........................  60 FR 15062, March 22, 1995.               
    8-2.................  Miscellaneous Operations.....................  60 FR 15062, March 22, 1995.               
    8-4.................  General Solvent and Surface Coating            60 FR 15092, March 22, 1995.               
                           Operations.                                                                              
    8-7.................  Gasoline Dispensing Facilities...............  60 FR 15062, March 22, 1995.               
    8-8.................  Wastewater (Oil-Water) Separators............  59 FR 43328, August 29, 1994.              
    8-11................  Metal Container Closure and Coil Coating.....  59 FR 63721, December 9, 1994.             
    8-12................  Paper, Fabric, and Film Coating..............  60 FR 15062, March 22, 1995.               
    8-13................  Light and Medium Duty Motor Vehicle Assembly   NFRM signed March 29, 1995--publication    
                           Plants.                                        pending.                                  
    8-14................  Surface Coating of Large Appliance and Metal   NFRM signed March 29, 1995--publication    
                           Furniture.                                     pending.                                  
    8-15................  Emulsified and Liquid Asphalts...............  60 FR 15062, March 22, 1995.               
    8-16................  Solvent Cleaning Operations..................  59 FR 63721, December 9, 1994.             
    [[Page 27029]]
                                                                                                                    
    8-19................  Surface Coating of Miscellaneous Metal Parts   60 FR 16799, April 3, 1995.                
                           and Products.                                                                            
    8-20................  Graphic Arts Printing and Coating Operations.  60 FR 15062, March 22, 1995.               
    8-22................  Valves and Flanges at Chemical Plants........  60 FR 8949, February 16, 1995.             
    8-23................  Coating of Flat Wood Paneling and Wood Flat    NFRM signed March 29, 1995--publication    
                           Stock.                                         pending.                                  
    8-24................  Pharmaceutical and Cosmetic Manufacturing      60 FR 15062, March 22, 1995.               
                           Operations.                                                                              
    8-25................  Pump and Compressor Seals at Petroleum         60 FR 12451, March 7, 1995.                
                           Refineries, Chemical Plants, Bulk Plants,                                                
                           and Bulk Terminals.                                                                      
    8-28................  Pressure Relief Valves at Petroleum            59 FR 63721, December 9, 1994.             
                           Refineries and Chemical Plants.                                                          
    8-29................  Aerospace Assembly and Component Coating       60 FR 16799, April 3, 1995.                
                           Operations.                                                                              
    8-30................  Semiconductor Manufacturing Operations.......  60 FR 15062, March 22, 1995.               
    8-31................  Surface Coating of Plastic Parts and Products  60 FR 15062, March 22, 1995.               
    8-32................  Wood Product Coatings........................  60 FR 15062, March 22, 1995.               
    8-33................  Gasoline Bulk Terminals and Gasoline Delivery  60 FR 16799, April 3, 1995.                
                           Vehicles.                                                                                
    8-34................  Solid Waste Disposal Sites...................  60 FR 15062, March 22, 1995.               
    8-35................  Coating, Ink, and Adhesive Manufacturing.....  60 FR 15062, March 22, 1995.               
    8-38................  Flexible and Rigid Disk Manufacturing........  60 FR 16799, April 3, 1995.                
    8-39................  Gasoline Bulk Plants and Gasoline Delivery     60 FR 16799, April 3, 1995.                
                           Vehicles.                                                                                
    8-40................  Aeration of Contaminated Soil................  60 FR 15062, March 22, 1995.               
    8-41................  Vegetable Oil Manufacturing Operations.......  60 FR 15062, March 22, 1995.               
    8-42................  Large Commercial Bakeries....................  60 FR 12451, March 7, 1995.                
    8-43................  Surface Coating of Marine Vessel.............  NFRM signed March 29, 1995--publication    
                                                                          pending.                                  
    8-45................  Motor Vehicle and Mobile Equipment Coating     60 FR 15062, March 22, 1995.               
                           Operations.                                                                              
    8-47................  Air Stripping and Soil Vapor Extraction        NFRM signed March 29, 1995--publication    
                           Operations.                                    pending.                                  
    8-50................  Polyester Resin Operations...................  60 FR 12451, March 7, 1995.                
    2-1.................  Emission Statement Rule......................  60 FR 16799, April 3, 1995.                
    ----------------------------------------------------------------------------------------------------------------
    
      In addition, the State of California has submitted the amendments 
    to the maintenance plan necessary for final approval, including the 
    revised 1990 base year emissions inventory and amendments to the 
    contingency plan. The ozone maintenance plan amendments include a 
    commitment by the Governor to implement the improvements to the basic 
    inspection and maintenance (I/M) program by the end of 1995 as an early 
    contingency measure and a revised contingency process. The reductions 
    from these I/M improvements were not included in the maintenance plan 
    emission inventory projections. In the event of a violation during the 
    maintenance period, the Bay Area Air Quality Management District 
    (BAAQMD) will meet with the EPA within 30 days of the violation to 
    discuss which of the adopted NOX RACT rules are appropriate to 
    submit into the SIP as fully adopted and implemented contingency 
    provisions. The list of NOX controls include six rules which are 
    scheduled for implementation through 2001. The improvements to the 
    basic I/M program and the NOX RACT controls supersede the original 
    contingency plan submitted in November 1993. The original submittal 
    included a commitment to implement an enhanced I/M program in the event 
    of a violation during the maintenance period. However, the final 
    enabling legislation for enhanced I/M in California prohibited areas 
    not explicitly required to implement enhanced I/M by the CAA from 
    opting into the centralized portion of the program. Therefore, the 
    BAAQMD revised the contingency plan as described above.
        Below is the list of NOX RACT contingency measures submitted 
    by CARB as part of the contingency plan.
    
                                        BAAQMD NOX Rules as Contingency Measures                                    
    ----------------------------------------------------------------------------------------------------------------
                                                                                                             NOX    
                     Title regulation 9                    Adopted          Implementation year(s)        reductions
                                                                                                            (TPD)   
    ----------------------------------------------------------------------------------------------------------------
    NOX and CO from Industrial, Institutional and            9/16/92  1/1/96...........................         14.9
     Commercial Boilers, Steam Generators (rule 7).                                                                 
    NO2 and CO2 Emissions from Stationary Internal           1/20/93  1/1/97...........................          8.3
     Combustion Engines (rule 8).                                                                                   
    NOX from Stationary Gas Turbines (rule 9)..........       5/5/93  1/1/97...........................          7.0
    Refinery Boilers, Steam Generators and Process            1/5/94  5/31/95 (sources already meet              N/A
     Heaters (rule 10).                                                RACT standards).                             
    NOX and CO from Utility Electric Power Generating        2/16/94  5/31/95..........................        1-2.6
     Boilers (rule 11).                                                                                             
    NOX from Glass Melting Furnaces (rule 12)..........      1/19/94  1/1/97-1/1/2001..................          1.2
    ----------------------------------------------------------------------------------------------------------------
    
        In early 1994, new State laws (SB 198, AB 2018, SB 521, SB 629) 
    were passed to improve the current decentralized I/M program. The 
    improvements will begin implementation in 1995 and include: increased 
    cost waiver limits for all models to $450; addition of functional tests 
    for the evaporative control system; remote sensing or other roadside 
    testing to discover gross polluters; centralized computer system 
    reporting; improved quality assurance and enforcement; and improved 
    technician training and certification. In addition, loaded-mode testing 
    will either be a required program element (to be determined by the 
    California Bureau of Automotive Repair), or will be implemented on 
    request in the San Francisco Bay Area within one year of successful 
    demonstration in areas of the State implementing enhanced I/M programs. 
    Below is a chart which [[Page 27030]] estimates the emission reductions 
    from these improvements by the year 2000.
    
       Emission Reduction Estimates From I/M Program Improvements by 2000   
    ------------------------------------------------------------------------
                                                 HC         CO        NOX   
                                             (percent)  (percent)  (percent)
    ------------------------------------------------------------------------
    Current Program........................      16.6       25.3       10.4 
    Improved Decentralized.................      22.1   30.0-34.6  15.0-22.2
    ------------------------------------------------------------------------
    
        Regarding the new source review (NSR) requirement, an EPA policy 
    memo dated October 14, 1994 from Mary Nichols, Assistant Administrator 
    for Air and Radiation, to the Division Directors entitled, ``Part D New 
    Source Review (part D NSR) Requirements for Areas Requesting 
    Redesignation to Attainment,'' amended earlier guidance 1 which 
    required areas requesting redesignation to attainment after November 
    15, 1992 to have a fully approved NSR rule prior to final 
    redesignation. In light of the new policy set forth in the October 14, 
    1994 Memorandum, the EPA is no longer obligated to approve the San 
    Francisco Bay Area's NSR rule as a condition for final approval of the 
    redesignation request. However, the State of California submitted an 
    amended NSR rule for the San Francisco Bay Area on January 4, 1995, and 
    the emission projections contained in BAAQMD's maintenance plan are 
    predicated on continuation of NSR permitting. The BAAQMD must continue 
    NSR permitting until such time as it receives delegation of the PSD 
    program for VOC. Upon delegation of the PSD program for VOC, the NSR 
    permitting program can be moved to the contingency portion of the 
    maintenance plan, provided that BAAQMD's ability to show maintenance of 
    the standard is not affected.
    
        \1\ Memorandum entitled, ``Procedures for Processing Requests to 
    Redesignate Areas to Attainment,'' from John Calcagni, Director, Air 
    Quality Management Division, to Regional Air Division Directors.
        Memorandum entitled, ``SIP Requirements for Areas Submitting 
    Requests for Redesignation to Attainment of the Ozone and CO NAAQS 
    On or After November 15, 1992,'' from Michael H. Shapiro, Acting 
    Assistant Administrator for Air and Radiation, to Regional Air 
    Division Directors.
    ---------------------------------------------------------------------------
    
    B. Section 182(f) NOX RACT Waiver Petition
    
        The EPA is finalizing the approval of a petition submitted by the 
    Bay Area AQMD requesting that EPA grant an exemption from the section 
    182(f) requirements to control major stationary sources of oxides of 
    nitrogen (NOX) emissions. The exemption petition is based on 
    ambient monitoring data and demonstrates that additional NOX 
    reductions in the Bay Area would not contribute to attainment of the 
    NAAQS for ozone.
        EPA has evaluated the exemption petition for consistency with the 
    requirements of the CAA, EPA regulations, and EPA interpretation of 
    these requirements as expressed in the various EPA policy guidance 
    documents.2 EPA believes that the petition satisfies the 
    applicable EPA requirements and, in accordance with the requirements of 
    the CAA, has determined that additional NOX reductions from major 
    stationary sources in the San Francisco Bay Area would not contribute 
    to attainment of the national ambient air quality standard (NAAQS) for 
    ozone. EPA is finalizing this action to exempt the San Francisco Bay 
    Area from implementing the NOX requirements for RACT, NSR, and the 
    applicable general conformity and I/M requirements 3 of the CAA. 
    Because the San Francisco Bay Area is being redesignated to attainment 
    of the ozone standard through this action, the transportation 
    conformity requirements will consist of meeting the NOX budget 
    established in the maintenance plan.4
    
        \2\ See ``Guidance for Determining the Applicability of Nitrogen 
    Oxides Requirements Under Section 182(f)'', issued by EPA's Office 
    of Air Quality Planning and Standards, December 1993 and EPA's 
    NOX Supplement to the General Preamble, 57 FR 55628, November 
    25, 1992.
        \3\ See ``Scope of Nitrogen Oxides (NOX) Exemptions,'' from 
    G.T. Helms, Group Leader, Ozone/Carbon Monoxide Programs Branch (MD-
    15), to the Air Branch Chiefs, January 12, 1995. ``I/M Requirements 
    in NOX RACT Exempt Areas'', from Mary T. Smith, Acting 
    Director, Office of Mobile Sources, to the Air Division Directors, 
    October 14, 1994.
        \4\ EPA's approval of the Bay Area's maintenance plan begins the 
    maintenance period as defined in the transportation conformity 
    regulation at 40 CFR Part 51.392. During the maintenance period, the 
    Bay Area must meet the requirements of parts 51.428 and 51.430 of 
    the transportation conformity regulation. These sections specify 
    that the transportation plan and transportation improvement program 
    (TIP) must be consistent with the motor vehicle emissions budgets in 
    the applicable implementation plan, which in this case, is the 
    maintenance plan. The requirement of parts 51.436 and 51.438 that 
    plans and TIPs satisfy the ``build/no build'' test, or demonstrate 
    that the plan and TIPs contribute to emissions reductions, no longer 
    apply during the maintenance period.
    ---------------------------------------------------------------------------
    
        The EPA believes that all section 182(f) exemptions that are 
    approved should be approved only on a contingent basis. As described in 
    the EPA's NOX Supplement to the General Preamble (57 FR 55628, 
    November 25, 1992) and further guidance issued by EPA,5 section 
    182(f) exemptions are granted on a contingent basis and last for only 
    as long as the area's monitoring data continue to demonstrate 
    attainment. The San Francisco Bay Area is required to continue to 
    operate an appropriate air quality monitoring network, in accordance 
    with 40 CFR part 58, to verify the attainment status of the area.
    
        \5\ See ``Section 182(f) Nitrogen Oxides (NOX) Exemptions--
    Revised Process and Criteria'', issued by John S. Seitz, Director, 
    Office of Air Quality Planning and Standards (MD-10), May 27, 1994.
    ---------------------------------------------------------------------------
    
        If a violation of the ozone standard occurs after the San Francisco 
    Bay Area is redesignated to attainment of the ozone NAAQS, the NOX 
    requirements are to be implemented as contingency measures as provided 
    in the maintenance plan.
    
    C. 1990 Base Year Emissions Inventory
    
        In the NPRM, the EPA proposed approval of a revised 1990 base year 
    emissions inventory as requested by the state in a letter dated July 
    21, 1994. In this letter, the state requested that EPA approve a 
    revised 1990 emissions inventory and projections as part of the 
    maintenance plan. As discussed in the NPRM, below is a summary of the 
    1990 VOC and NOX emission inventory and projections through the 
    year 2005. The projections show that the area will continue to 
    demonstrate attainment of the ozone NAAQS with current control measures 
    (adopted through December 31, 1992).
    
                         VOC Emission Inventory Summary*                    
                                 [Tons Per Day]                             
    ------------------------------------------------------------------------
                                                   1990   1995   2000   2005
    ------------------------------------------------------------------------
    Point.......................................     78     73     75     77
    Area........................................    173    154    141    141
    Mobile On-Road..............................    300    204    142    104
    Mobile Non-Road.............................     81     85     82     84
                                                 ---------------------------
        Anthropogenic...........................                            
        Total...................................    631    515    440    406
    Biogenics...................................    300    300    300    300
                                                 ===========================
        Total...................................    931    815    740    706
    ------------------------------------------------------------------------
    
    
                         NOX Emission Inventory Summary*                    
                                 [Tons Per Day]                             
    ------------------------------------------------------------------------
                                                   1990   1995   2000   2005
    ------------------------------------------------------------------------
    Point.......................................    131    130    141    146
    Area........................................     15     16     17     18
    Mobile On-Road..............................    251    194    166    158
    Mobile Non-Road.............................    159    164    176    186
        Total...................................    557    504    499   508 
    ------------------------------------------------------------------------
    *Entries are rounded to the nearest whole number, totals may not equal  
      to sum of column entries.                                             
    
     [[Page 27031]] II. Public Comment/EPA Response
    
        The EPA received 17 letters commenting on the proposal. Four 
    letters expressed strong support for the redesignation based on the 
    tremendous progress the San Francisco Bay Area has made over the past 
    30 years by attaining the ozone NAAQS. Nine letters expressed concern 
    and/or opposition to the redesignation because of the transport of 
    pollution from the San Francisco Bay Area to neighboring areas, and 
    three letters voiced opposition to the redesignation for reasons other 
    than transport. Finally, one letter addressed the section 182(f) 
    NOX RACT waiver petition only. Below is a summary of the comments 
    received and the EPA's response.
    
    A. EPA Response to Comments: Redesignation Request and Maintenance Plan
    
    Comment 1
        Several commenters stated that Congress intended EPA to deal with 
    interstate transport only, as noted in section 176A of the Clean Air 
    Act (CAA), and that the regulation of intrastate transport is outside 
    of EPA jurisdiction and not a criteria for redesignation. Other 
    comments stated that the California Clean Air Act (CCAA) adequately 
    addresses interbasin transport. Furthermore, transport is a complicated 
    issue, and the existing data is not sufficiently accurate to provide 
    better solutions at this time. Finally, in some cases, the San 
    Francisco Bay Area is the recipient of pollution from other air basins 
    during certain meteorological conditions when air flow tends to be from 
    inland areas and the San Joaquin Valley can model attainment without 
    additional measures from the San Francisco Bay Area. The San Francisco 
    Bay Area should not be unfairly singled out for scrutiny of intrastate 
    transport, especially when the CCAA provides a workable process.
    EPA Response
        As outlined in the General Preamble to Title I of the CAA (57 FR 
    13528, April 16, 1992), the CAA assigns responsibility to the states 
    for developing and submitting attainment demonstrations which show that 
    the standard will be attained by the applicable attainment dates for 
    areas where the demonstration of attainment is complicated by transport 
    between two areas of different classifications. However, EPA needs to 
    be assured that the attainment plans adequately address transport so as 
    to ensure attainment for all areas within a state by the applicable 
    attainment deadlines.
        CARB has submitted attainment demonstration plans for all areas in 
    California, including the Sacramento and San Joaquin Valley 
    nonattainment areas.6 This submittal included modeling of a large 
    part of California, including Sacramento and the San Francisco Bay 
    Area, as well as the San Joaquin Valley. EPA will review those plans 
    and address the adequacy of the submittals through the federal 
    rulemaking process.
    
        \6\  With respect to the Sacramento attainment plan, CARB 
    submitted a voluntary ``bump-up'' request from a serious to a severe 
    classification pursuant to section 181. The request for ``bump-up'' 
    for the Sacramento nonattainment area will be dealt with in a 
    separate Federal Register notice.
    ---------------------------------------------------------------------------
    
        While the State has the initial responsibility for dealing with 
    intrastate transport issues, such issues are the subject of the Clean 
    Air Act and within EPA's jurisdiction. For example, section 
    110(a)(2)(A) imposes the same obligation on areas to ensure that 
    emissions will not interfere with attainment in downwind intrastate 
    areas that section 110(a)(2)(D) imposes with respect to downwind 
    interstate areas. At the present time, however, the information 
    available to EPA concerning potential transport effects due to 
    emissions from the San Francisco Bay Area is not sufficient to warrant 
    action on the part of EPA or otherwise affect EPA's action regarding 
    the San Francisco Bay Area's redesignation. While the preliminary 
    studies conducted to date indicate that there is transport of emissions 
    from the San Francisco Bay Area to nearby areas,7 EPA believes 
    that the state and local agencies can adequately address the issue 
    initially. If, however, EPA determines that there are transport 
    problems that warrant action on its part, EPA has the authority to 
    issue a SIP call under sections 110(k)(5) and 110(a)(2)(A) to require 
    the State to deal with those problems.
    
        \7\  As one commenter pointed out, the statewide modeling effort 
    to date indicates that pollutant transport from Sacramento to the 
    San Francisco Bay Area also occurs.
    ---------------------------------------------------------------------------
    
    Comment 2
        Several commenters expressed concern or opposition to the 
    redesignation due to the issue of transported emissions from the San 
    Francisco Bay Area to surrounding areas. Several commenters felt that 
    the proposed action to redesignate the San Francisco Bay Area was made 
    despite an accurate assessment of the impact of its emissions on 
    attainment in neighboring areas, including the San Joaquin Valley and 
    Sacramento Area, and requested that EPA delay final action to 
    redesignate the San Francisco Bay Area until an accurate assessment and 
    mitigation of transported pollution to neighboring areas can be made. 
    Several commenters suggested that EPA coordinate a meeting with the 
    state, the affected downwind air pollution control agencies, and the 
    BAAQMD to resolve the transport issue.
    EPA Response
        As noted in the response to Comment 1, the information available 
    concerning transport from the San Francisco Bay Area is preliminary in 
    nature and EPA does not believe that it should affect EPA's action on 
    this redesignation. Moreover, should EPA consider it necessary and 
    appropriate to take action in the future, EPA has the authority under 
    sections 110(a)(2)(A) and 110(k)(5) to deal with any such transport 
    issues.
        However, to respond to the transport concerns and several 
    suggestions that EPA coordinate a meeting with the state and local air 
    pollution control agencies affected by transport from the San Francisco 
    Bay Area, EPA met with the California Air Resources Board (CARB), the 
    BAAQMD and the affected downwind air pollution control agencies on 
    February 2, 1995 to discuss transport from the San Francisco Bay Area 
    to neighboring areas. The affected downwind air pollution control 
    agencies include the San Joaquin Valley Unified Air Pollution Control 
    District (SJVUAPCD), the Sacramento Metropolitan Air Quality Management 
    District (SMAQMD), the Yolo-Solano Air Pollution Control District 
    (YSAPCD), the Placer County Air Pollution Control District (PCAPCD), 
    the El Dorado County Air Pollution Control District (ECAPCD), and the 
    Feather River Air Quality Management District (FRAQMD).
        This group, the newly formed Interbasin Transport Group (ITG), 
    discussed strategies for dealing with transport from the San Francisco 
    Bay Area to downwind areas. The ITG consists of a main policy body of 
    Air Directors from EPA, CARB, BAAQMD, and affected downwind air 
    pollution control agencies, and a technical subcommittee, consisting of 
    modeling experts, which will discuss the ongoing transport studies in 
    California. The technical subcommittee will develop a needs assessment 
    for gathering additional information on transport and report ongoing 
    modeling results to the policy body at regularly scheduled meetings. 
    Decisions on how to deal with transport will be made collectively by 
    the policy body of the ITG.
        At the first ITG meeting on February 2, 1995, the BAAQMD presented 
    an [[Page 27032]] overview of the maintenance plan controls which 
    include aggressive stationary source and mobile source controls adopted 
    at the local, state and federal level as of December 31, 1992. With 
    these control measures in place, the VOC emission trend declines 
    through the year 2005, and the NOX emissions do not exceed the 
    1990 attainment year emissions inventory (the emissions ``cap'').
        At the end of the first ITG meeting, after consultation with the 
    group, EPA indicated its belief that any issues regarding transport 
    from the San Francisco Bay Area to neighboring areas should be dealt 
    with separately from the redesignation as new technical information 
    becomes available. The group committed to investigate additional short 
    and long term measures for the San Francisco Bay Area to be implemented 
    to further mitigate any downwind transport effects. The establishment 
    of the ITG provides an avenue to deal effectively with the transport 
    issue after the redesignation as new information becomes available.
        Since the first meeting of the ITG, the Greater Sacramento Area Air 
    Pollution Control Districts (APCDs) revised their original comments 
    submitted during the public comment period on the proposed 
    redesignation. Specifically, the Sacramento Area APCDs' letter of 
    December 15, 1994 urged EPA to delay final action on the redesignation 
    until transport was addressed. In a more recent letter 8 to EPA, 
    the Sacramento area now agrees that the transport issue can be dealt 
    with separately from the federal redesignation process and concurs with 
    EPA's proposal to redesignate the San Francisco Bay Area from 
    nonattainment to attainment.
    
        \8\ In a letter dated February 27, 1995, Kenneth Selover, Air 
    Pollution Control Officer from the Yolo-Solano APCD representing the 
    Greater Sacramento Area APCD, states that the concerns expressed in 
    the comment letter dated December 15, 1994 in response to EPA's 
    proposal to redesignate the San Francisco Bay Area from 
    nonattainment to attainment, were based on a lack of understanding 
    of the BAAQMD's proposed program to further mitigate NOX and 
    other emissions in response to the CCAA. In the December 15, 1994 
    letter, the Sacramento APCDs requested an extension of the public 
    comment period until the issue of transport was addressed. The 
    Sacramento area now agrees that the transport issue can be dealt 
    with separately from the federal redesignation process, and the 
    redesignation should proceed.
    ---------------------------------------------------------------------------
    
        Many of the comments were based on a recently released CARB study, 
    ``Preliminary Assessment of Transport on San Joaquin Valley Ozone,'' 
    which discusses recent simulations to assess the impact of transported 
    emissions in the San Joaquin Valley. The results discussed in the 
    report are based on an extreme scenario in which anthropogenic 
    emissions for the San Francisco Bay Area and the Sacramento area are 
    set to zero. (In other words, the modeling simulation assumes that 
    there are no VOC or NOX anthropogenic emissions in the San 
    Francisco Bay Area or the Sacramento Area. This exercise enables one to 
    estimate the proportion of locally generated ozone versus transported 
    pollution into the Valley.) The report indicates that there would be a 
    decrease in ozone measurements of 27% in the Northern San Joaquin 
    Valley, 10% in the Central San Joaquin Valley and 7% in the Southern 
    San Joaquin Valley. The modeling study indicates that the Northern San 
    Joaquin Valley is most affected by transported emissions. However, the 
    attainment plan submitted for the San Joaquin Valley which relies on 
    this modeling study purports to show that the San Joaquin Valley models 
    attainment by the applicable deadline. In addition, monitoring data for 
    the northern portion of the San Joaquin Valley shows that this site has 
    collected air quality data which demonstrates attainment of the ozone 
    NAAQS.
        The report indicates that the Central and Southern San Joaquin 
    Valley ozone concentrations would be reduced by 10% and 7%, 
    respectively, if anthropogenic (generated by man) emissions were set to 
    zero for the San Francisco Bay Area and Sacramento. Given that the 
    Sacramento Area and the San Joaquin Valley will continue to adopt and 
    implement aggressive new controls in response to the Federal and 
    California Clean Air Acts and the San Francisco Bay Area will continue 
    to adopt and implement new controls in response to the California Clean 
    Air Act, the amount of emissions transported and locally generated 
    emissions will continue to decrease to the Central and Southern San 
    Joaquin Valley in the near future.
        The formation of the ITG and the commitment from all affected 
    agencies to work together to resolve potential transport issues, in 
    conjunction with the California ozone plans submitted on November 15, 
    1994 which purport to demonstrate attainment of the ozone NAAQS for the 
    Sacramento Area and the San Joaquin Valley by the applicable attainment 
    deadlines, indicates that any intrastate transport issues should be 
    effectively handled at the state level initially. EPA is committed to 
    the goals of the ITG and will continue to participate in the group to 
    offer support and review the adequacy of any new state or local agency 
    strategy for dealing with transport.
        With respect to the handling of transport issues at the state 
    level, EPA notes that the California Clean Air Act (CCAA), adopted by 
    the State of California in 1988, contains provisions which are designed 
    to reduce the amount of pollution transport between nonattainment areas 
    within the state. Specifically, areas which are the origin of 
    transported pollutants, such as the San Francisco Bay Area, must 
    include sufficient emission control measures in the state attainment 
    plan (the ``clean air plan'') to mitigate the impact of pollution 
    sources within their jurisdictions on ozone concentrations downwind. In 
    the San Francisco Bay Area, these requirements include VOC and NOX 
    best available retrofit control technology (BARCT) for source 
    categories that collectively amount to 75% of the 1987 actual 
    hydrocarbon (HC) emissions inventory for stationary sources and 75% of 
    1987 actual NOX emission inventory for permitted stationary 
    sources no later than January 1, 1994. The BARCT controls, in most 
    cases, exceed the federal RACT requirements. If these recently adopted 
    controls were calculated into the projections in the maintenance plan, 
    the NOX emission trend would decrease through the year 2005. In 
    addition, the San Francisco Bay Area is required to continue to 
    implement a stringent NSR permitting program for new stationary 
    sources. The CCAA requires that areas design attainment plans that 
    include these controls and ensure attainment of the more stringent 
    California Ambient Air Quality Standard (CAAQS) for ozone (0.09 ppm) by 
    the earliest practicable date. According to CARB, the BAAQMD has fully 
    complied with the CCAA's transport mitigation requirements and is 
    continuing to adopt and implement all feasible control measures in its 
    effort to attain the more stringent CAAQS of 0.09 ppm.
        Although the BAAQMD has requested to be exempt from the NOX 
    RACT requirements of the Federal Clean Air Act, the BAAQMD had 
    proceeded to adopt NOX best available retrofit control technology 
    (BARCT) and stringent New Source Review (NSR) regulations to comply 
    with the transport mitigation requirements of the CCAA. Therefore, the 
    maintenance plan controls and additional controls adopted in response 
    to the CCAA ensure that any transport of pollutants from the San 
    Francisco Bay Area to neighboring areas, whatever its current 
    magnitude, will continue to decrease throughout the maintenance period.
        In addition, the CCAA requires CARB to compile a report which 
    assesses transport within the State every three [[Page 27033]] years. 
    Using several data analysis techniques, CARB determines the level of 
    pollutant transport between various California air basins. These 
    assessments are used in the process of requiring BARCT as described 
    above, and also in the ozone planning process to assign responsibility 
    for pollution reductions. CARB leads this effort and meets with the 
    local air pollution control agencies on a regular basis to discuss the 
    ongoing analysis.
    Comment 3
        Since the San Francisco Bay Area will not be subject to additional 
    emission reduction requirements, the public health of the citizens of 
    San Joaquin Valley will continue to be at risk when EPA redesignates 
    the San Francisco Bay Area.
    EPA Response
        As discussed above, although the San Francisco Bay Area is not 
    subject to additional emission reduction requirements for the federal 
    CAA (since the area can demonstrate maintenance of the NAAQS for the 10 
    year maintenance period without additional controls), the area will 
    continue to adopt and implement aggressive VOC and NOX controls to 
    further reduce ozone and meet the more stringent CAAQS for ozone. In 
    addition, the emission inventory projections contained in the 
    maintenance plan, which include controls adopted through December 1992, 
    show a decrease in VOC emissions and show that NOX emissions are 
    not expected to increase over the 1990 attainment levels through 2005 
    (the 10 year maintenance plan horizon). Therefore, any transported 
    pollution to the San Joaquin Valley from the San Francisco Bay Area 
    will continue to decrease in the future. Finally, CARB submitted an 
    ozone plan which purports to demonstrate attainment of the ozone 
    standard in the San Joaquin Valley by 1999, the statutory deadline for 
    attainment under the CAA.
    Comment 4
        Several commenters note that San Joaquin Valley and Sacramento 
    industries, businesses, and citizens are subject to more onerous 
    control requirements, such as more stringent NSR requirements and 
    enhanced I/M, in order to compensate for transported pollution. This 
    creates an economic disparity between the regions and penalizes the 
    citizens in the downwind areas. Arbitrary air pollution control 
    boundaries should not be used to create economic disparity among 
    regions in the state.
    EPA Response
        The classification system under the CAA is based on actual 
    monitored air pollution values during 1987 through 1989 for each 
    nonattainment area. The CAA requires specific controls for each 
    classification, with increasingly stringent control requirements for 
    more seriously polluted areas. The air quality data recorded in the San 
    Joaquin Valley and the Sacramento Area was more serious than the air 
    quality monitored in the San Francisco Bay Area during the same time 
    period. The Sacramento Area and the San Joaquin Valley air quality 
    monitoring data collected during 1987-1989 warranted a ``serious'' 
    classification,9 whereas the monitoring in the San Francisco Bay 
    Area warranted a ``moderate'' classification. Based on the statewide 
    modeling effort to date, it appears that both the Sacramento Area and 
    the San Joaquin Valley are responsible for the vast majority of the 
    ozone pollution monitored in their areas. Therefore, EPA cannot concur 
    that there is evidence indicating that the higher classifications 
    warranted by the air quality monitoring in the Sacramento area and the 
    San Joaquin Valley are due solely to transport.
    
        \9\ Since that time, CARB has submitted a ``bump-up'' request 
    for the Sacramento area from serious to severe. EPA will act on this 
    request in a separate Federal Register notice.
    ---------------------------------------------------------------------------
    
        The ozone episode (a single, short period of high ozone readings) 
    that was modeled for the Sacramento ozone plan submittal occurred in 
    August 1990 and had a small amount of transport from outside the area, 
    but was essentially a locally-generated episode. This is important 
    because it means that there are days when, with little or no 
    transported emissions, Sacramento generates enough ozone pollution to 
    exceed the standard. Because this episode was used as the basis for 
    determining emission control levels, sources in the Sacramento area 
    will be controlled to levels which will address their own effect on 
    ozone, rather than transport from the San Francisco Bay Area. An 
    episode from July 1990 which included more transported emissions did 
    not perform well when the model was applied to it and was therefore not 
    included in the Sacramento Area's attainment demonstration. However, 
    this episode did indicate that the emission reductions from Sacramento 
    sources needed for attainment are no greater than those indicated by 
    the August 1990 episode, which was predominately local emissions. 
    Therefore, Sacramento and San Joaquin Valley businesses and citizens 
    are not subject to more onerous controls to compensate for transported 
    pollutants from the San Francisco Bay Area.
        As noted above, the BAAQMD will continue to adopt and implement 
    aggressive VOC and NOX controls to comply with the CCAA which go 
    beyond the control measures included in the maintenance plan and its 
    emission reduction projections (controls adopted through December 
    1992). With respect to the NSR requirement, although the San Francisco 
    Bay Area will no longer be required to continue federal NSR permitting 
    after redesignation (as soon as a federally delegated PSD program is in 
    place), the BAAQMD has fully complied with the transport mitigation 
    requirements of the CCAA which include NSR requirements.
        The air pollution control boundaries were not drawn arbitrarily or 
    to create economic disparities within the state, but rather reflect the 
    natural geographic air basins that exist in Northern California. In 
    response to the CAA adopted in November 1990, EPA consulted with, and 
    deferred to the State of California on the air pollution control 
    boundaries within the State. Section 107(d)(1)(4)(iv) of the CAA 
    requires that the entire metropolitan statistical area (MSA) or 
    consolidated metropolitan statistical area (CMSA) be used for ozone or 
    carbon monoxide nonattainment areas classified as serious or above. The 
    boundaries of the Sacramento Area and the San Joaquin Valley reflect 
    the MSA/CMSA designations. Since promulgation of the current air 
    pollution boundaries in November 1991, EPA has not received any 
    petitions to re-draw the boundaries in California.
        According to the CAA, areas are required to attain the NAAQS as 
    expeditiously as practicable but no later than the applicable 
    attainment deadline. Since CARB submitted an ozone attainment plan to 
    EPA on November 15, 1994 which purports to demonstrate attainment of 
    the NAAQS for the San Joaquin Valley and Sacramento area by the 
    applicable deadline, the state expects the ozone NAAQS in the San 
    Joaquin Valley and Sacramento Area to be attained by the timelines 
    required by the CAA.
    Comment 5
        Several commenters noted that the proposed action to redesignate 
    the San Francisco Bay Area was made despite an adequate assessment of 
    the impact of its emissions on attainment in neighboring areas 
    (Sacramento and San Joaquin Valley). One commenter specifically noted 
    that for the [[Page 27034]] Sacramento Federal Implementation Plan 
    (FIP) modeling, only one episode has been modeled. More specifically, 
    they noted that NOX emissions transported into Sacramento from the 
    San Francisco Bay Area increase the severity and likelihood of ozone 
    episodes and add to the attainment burden for the area. (See discussion 
    in EPA Response to Comment 4)
    EPA Response
        As discussed above, EPA and the ITG will deal with transport issues 
    separately from the redesignation. EPA is aware of the ongoing 
    statewide modeling effort, the SARMAP study, and will continue to 
    participate in those meetings to evaluate the latest modeling 
    information. EPA is committed to addressing the latest transport 
    studies and being involved in the ITG to work with state and local 
    governments to resolve any transport issues.
        It should be noted that the SARMAP modeling study, portions of 
    which were submitted to EPA in the San Joaquin Valley ozone plan, 
    looked at an August 1990 episode for Sacramento which includes 
    transport from neighboring areas. The results of this episode show that 
    the emission reductions required for attainment in the Sacramento area 
    are no greater than those indicated by the July 1990 episode, which 
    includes mostly local emissions.
    Comment 6
        One commenter made several suggestions of items that EPA should 
    require prior to redesignation. These include: 1. the completion of the 
    technical studies on Sacramento modeling case, including the August 
    ozone episode, using SARMAP. The outcome should be assignment of 
    emission reductions to the San Francisco Bay Area; 2. the BAAQMD should 
    install and maintain monitors to measure ozone and NOX aloft to 
    transport corridors to Sacramento and the San Joaquin Valley; 3. the 
    BAAQMD should implement the voluntary ``Spare the Air'' program on days 
    when ozone forecast predicts a violation, or near violation, in 
    Sacramento; 4. the BAAQMD should contribute to any program efforts that 
    are developed for the Sacramento air basins to slow travel on highway 
    I-80 during periods when Sacramento is at risk of violating federal 
    ozone standards; 5. EPA should coordinate a joint federal/state/local 
    effort to assess equity issues in control of transported pollution, and 
    consider requiring stationary source, fleet rule and off-road NOX 
    control equivalent to Sacramento rules within portions of the San 
    Francisco Bay Area likely to transport to the Sacramento area.
    EPA Response
        As discussed above, EPA will continue to meet with the affected 
    downwind air pollution control districts at regularly scheduled ITG 
    meetings and any transport issues will be dealt with separately from 
    the redesignation process. Specifically, CARB is continuing to look at 
    episodes in August 1990, and additional monitors are being installed to 
    look at pollution transport between the areas. All of the suggestions 
    listed above will be examined by the group at upcoming meetings, and 
    the technical subcommittee of the ITG will look into the modeling 
    suggestions and new technical data on an ongoing basis.
    Comment 7
        One commenter opposed the redesignation unless transport is 
    assessed because the San Joaquin Valley, which is affected by pollution 
    transported from the San Francisco Bay Area and Sacramento, may be 
    unable to make a conformity determination for the area. It is difficult 
    to explain this situation to the public and elected officials when 
    modeling results show that Stanislaus County would be in attainment if 
    transport was addressed.
    EPA Response
        As discussed above, the issue of transport will be addressed 
    separately from the redesignation process. However, it should be noted 
    that the emission trend for the San Francisco Bay Area for VOC 
    continually decreases over the 10 year maintenance period and NOX 
    emissions do not exceed the 1990 attainment year level (the emissions 
    ``cap''). If the NOX BARCT controls adopted by the BAAQMD were 
    included in the maintenance plan, the NOX emissions would also 
    show a continual decrease over the 10 year maintenance period. 
    Therefore, any transport impacts from the San Francisco Bay Area on 
    other areas will continue to diminish in the future. It should be noted 
    that CARB submitted an ozone attainment demonstration plan for the San 
    Joaquin Valley which purports to reach attainment by the serious area 
    deadline, 1999.
    Comment 8
        One commenter asserted that there are no monitoring stations for 
    air emissions in the West Oakland area which is comprised of a 
    community of predominately low income and color and is near one of the 
    busiest highway intersections in the country. Census track analysis 
    shows a high incidence of cancer in this area. American Lung 
    Association studies show that the acceptable levels for particulates in 
    the Clean Air Act are not protective of human health. In addition, 
    benzene levels may be above the EPA acceptable 10-4 cancer risk 
    level. The redesignation sends the wrong message to the community and 
    policy makers and will not encourage public transit use. The 
    redesignation is based on insufficient data since the monitoring 
    network does not address ``hotspots''.
    EPA Response
        The proposal which EPA is finalizing today redesignates the area to 
    attainment only for ozone. This action does not relate to emissions of 
    particulate matter or benzene. This decision is based on clean air 
    quality data for ozone recorded at the monitoring network since 1990. 
    The BAAQMD currently monitors for ozone in the Oakland MSA.
        With regard to particulate matter, the San Francisco Bay Area is 
    currently designated as ``unclassifiable'' for PM-10 (particulate 
    matter with an aerodynamic diameter of ten microns or less). However, 
    EPA will continue to evaluate the PM-10 monitoring data in the air 
    basin and redesignate the area to nonattainment if warranted. EPA is 
    also working with the BAAQMD to locate an additional PM-10 monitor in 
    the San Francisco Bay Area. In addition, at the national level, EPA is 
    currently reassessing the existing particulate matter NAAQS,10 and 
    the Agency may be promulgating a new particulate matter NAAQS in the 
    near future.
    
        \10\ Under court order, EPA must complete its review of the 
    particulate matter NAAQS by January 31, 1997. American Lung 
    Association v. Browner, U.S. District Court for the District of 
    Arizona, October 6, 1994 (CIV-93-643-TUC-ACM).
    ---------------------------------------------------------------------------
    
        With regard to benzene, there is no NAAQS for this pollutant. 
    Rather, benzene is one of 189 hazardous air pollutants listed in 
    Section 112 of the CAA. Emissions of benzene are regulated at the 
    source where they are emitted, rather than through an ambient air 
    quality standard, such as that for ozone. The National Emission 
    Standard for Hazardous Air Pollutants (NESHAP) for benzene, 40 CFR Part 
    61, Subpart FF, is an example of such a regulation.
        With respect to public transit use, the federally approved SIP 
    contains transportation control measures which encourage public transit 
    use. In addition, all of the relevant local agencies continue to have a 
    strong commitment to promoting the use of public transit.
        The term ``hotspots'' usually is used to refer to hazardous air 
    pollutants or [[Page 27035]] other air pollutants with localized 
    effects. While there can be areas of high concentrations of ozone, 
    generally ozone is formed over the course of several hours over a large 
    area when NOX and VOCs react in the presence of sunlight. With 
    regard to ozone, the BAAQMD's monitoring network meets the federal 
    requirements and the data collected from this network is sufficient for 
    redesignation.
    Comment 9
        With respect to NOX emissions, one commenter asserts that the 
    maintenance plan shows that the area can continue to meet the ozone 
    standard even with increasing NOX emissions after 2000. 
    Furthermore, BAAQMD projects that NOX emissions under their 
    jurisdiction will increase 18 tons per day (TPD) between 1990 and 2005. 
    Even though non-jurisdictional sources make up for this increase, 
    BAAQMD should adopt control measures to reduce jurisdictional NOX 
    emissions by 18 TPD by 2005. This is particularly important since the 
    San Joaquin Valley ozone formation is predominately affected by the 
    level of NOX emissions.
    EPA Response
        The maintenance plan does not show an overall increase in NOX 
    emissions during the maintenance period. Through the year 2005, the 
    level of NOX emissions remains at or below the 1990 attainment 
    level NOX carrying capacity. In addition, it should be noted that 
    the NOX projections in the maintenance plan do not include the 
    NOX BARCT controls adopted by BAAQMD in response to the transport 
    mitigation requirements of the CCAA. If those controls were included, 
    the NOX projections would show a continuous decrease through the 
    year 2005. Specifically, the BAAQMD adopted NOX BARCT controls by 
    1995 which will be fully implemented by 2002. With these control 
    measures in place, the NOX emission projections decrease the 
    emission trend by an additional 74 TPD in 2005 beyond the current trend 
    line contained in the maintenance plan.
    Comment 10
        One commenter stated that the area evaluated for attainment and 
    maintenance of the federal ozone standard for the San Francisco Bay 
    Area, as required in 40 CFR 50.9, should include data from the 
    monitoring locations in the portion of adjacent air basins immediately 
    downwind of the San Francisco Bay Area air basin. These adjacent areas 
    have experienced ozone concentrations above the federal standard as a 
    direct consequence of emissions from the San Francisco Bay Area with 
    little or no contribution from local emissions and may experience 
    similar events in the future. In addition, the September 1, 1993 
    Memorandum from Mary Nichols states that EPA intends to apply to 
    intrastate transport the provision of section 110(a)(2)(D)(i)(1), which 
    requires each state's SIP prohibit emissions which will contribute 
    significantly to nonattainment. There are little or no local emissions 
    between these monitoring sites and the upwind San Francisco Bay Area. 
    It appears EPA has expressed a policy which could prohibit the approval 
    of the San Francisco Bay Area SIP unless violations caused in adjacent 
    air basins are addressed.
    EPA Response
        To qualify for redesignation in accordance with section 
    107(d)(3)(E), an area must demonstrate, among other things, that the 
    ambient air quality monitoring data in the area meets the NAAQS. The 
    San Francisco Bay Area has satisfied this requirement by submitting 
    five consecutive years of monitoring data which show no violations of 
    the ozone NAAQS. As discussed above, EPA is fully aware of the 
    potential transport issues and is committed to working with the State 
    and local air pollution control agencies to resolve any issues through 
    the ITG. EPA has the authority to deal with intrastate transport issues 
    under the Clean Air Act, but the information presently available does 
    not warrant action by EPA at this time.
    Comment 11
        One commenter stated that the 1990 VOC and NOX ``carrying 
    capacity'' levels in the maintenance plan should be made federally 
    enforceable. The measures identified as contingencies should be 
    incorporated into the SIP to mitigate any possible emission reduction 
    shortfall.
    EPA Response
        The 1990 VOC and NOX emission inventory and emission 
    projections through 2005 are based on control measures adopted through 
    December 31, 1992 at the federal, state, and local level and approved 
    into the SIP. Those emissions levels are already supported by federally 
    enforceable requirements. The NOX measures and improvements to the 
    I/M program identified in the contingency plan are not included in the 
    maintenance plan projections.
        As expressed previously in an EPA policy 11 pursuant to 
    section 182(f) of the CAA, EPA may allow areas which have demonstrated 
    attainment of the ozone NAAQS without having implemented NOX 
    controls to be exempt from the federal NOX RACT requirements. 
    However, the maintenance plan includes NOX controls as contingency 
    measures which will be submitted for incorporation into the SIP in the 
    event of a violation during the maintenance period.
    
        \11\ ''Section 182(f) Nitrogen Oxides (NOX) Exemption--
    Revised Process and Criteria,'' from John S. Seitz, Director, Office 
    of Air Quality Planning and Standards, to the Regional Division 
    Directors, May 27, 1994.
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    Comment 12
        One commenter stated that EPA should consider whether the urban 
    area for maintenance planning should be extended beyond the air basin 
    boundaries to the full extent of the urbanized area since related 
    growth of the adjacent urban areas growth is directly controlled by 
    policies implemented within the San Francisco Bay Area. EPA should 
    ensure that redesignation does not cause ozone levels above the federal 
    standard in the San Francisco Bay Area or adjacent air basins. This 
    requires that all emission increases caused by urban growth and 
    industrialization must be matched by equivalent deceases. EPA should 
    ensure that the approval includes provisions which protect the adjacent 
    air basins and federally protected forests and national parks. 
    Protection should include requirements to maintain an extensive system 
    of air monitors to detect high ozone levels, and maintaining emission 
    levels for all ozone precursors at or below the level which does not 
    cause ozone levels above the federal standard in the San Francisco Bay 
    Area and adjacent air basins.
    EPA Response
        After the passage of the CAA in 1990, EPA consulted with the State 
    of California regarding the appropriate boundaries for nonattainment 
    areas within the State. The current boundary of the San Francisco Bay 
    Area reflects the State's recommended boundary for the area. Section 
    107(d)(4)(A)(iv) of the CAA requires that the boundaries for areas 
    classified as serious and above include entire metropolitan statistical 
    areas (MSAs) or consolidated metropolitan statistical areas (CMSAs). 
    Transport will be addressed as discussed previously.
        As discussed previously, with respect to the comment concerning 
    emissions [[Page 27036]] increases during the maintenance period, the 
    maintenance plan for the San Francisco Bay Area projects that future 
    emissions for VOC decrease throughout the maintenance period and 
    NOX emissions do not increase over the attainment levels. The San 
    Francisco Bay Area must maintain its current ozone monitoring network 
    as part of the maintenance plan. The suggestion that the San Francisco 
    Bay Area install monitors to detect high ozone levels (or precursor 
    pollutants at high elevations) will be considered by the ITG.
        With regard to protection of air quality in national parks and 
    forests, the prevention of significant deterioration (PSD) provisions 
    contained in Part C of the CAA are specifically designed to protect air 
    quality in ``clean air'' areas, and particularly in pristine areas such 
    as national parks. These requirements provide sufficient protection for 
    such areas and it is not necessary to include additional requirements 
    as a condition of redesignation.
    Comment 13
        One commenter opposes the redesignation because it suggests that 
    the air quality no longer poses a threat to public health. In addition, 
    EPA research has shown that there is no safe level for ozone. In 
    addition, a federal declaration of attainment conflicts with 
    California's goal of a stricter ozone standard.
    EPA Response
        EPA's action to redesignate the San Francisco Bay Area means that 
    the air quality in the region meets the federal NAAQS (health-based 
    standard) for ozone, and does not address other air pollutants. The EPA 
    is currently in the process of re-evaluating the ozone NAAQS and 
    expects to make a final decision in mid-1997. Until any change is made, 
    EPA is bound to implement the provisions of the Act as they relate to 
    the current standard, including those relating to designations and 
    redesignations.
        With respect to the California ozone standard and California Clean 
    Air Act, EPA's action to redesignate the San Francisco Bay Area to 
    attainment for the federal ozone standard does not impede California or 
    the BAAQMD from striving for a stricter ozone standard. EPA's action to 
    redesignate the area to attainment for the federal ozone standard 
    recognizes the tremendous progress made so far and does not prohibit 
    the area from adopting additional control measures to control ozone. 
    Nor does it preclude EPA from requiring emission reductions from 
    sources in the San Francisco Bay Area should EPA ultimately determine 
    that such reductions are needed.
    Comment 14
        One commenter asserted that attainment levels had been recorded 
    only because of particular meteorological conditions which lead to the 
    transport of pollutants to nearby air basins. In addition, any current 
    air quality benefit will be wiped out by the BAAQMD's own calculation 
    of increased motor vehicle traffic in the future.
    EPA Response
        According to section 107(d)(3)(E)(iii), the Administrator must 
    determine that the improvement in air quality is due to permanent and 
    enforceable reductions in emissions resulting from the implementation 
    of measures in the applicable plan and applicable federal regulations. 
    Between 1987 and 1990, the SIP control measures account for an 
    approximate 69 TPD decrease in VOC emissions. In addition, the 
    maintenance plan analyzed trend data for summer temperatures and 
    vehicle miles traveled and employment during the 1990-1992 timeframe to 
    determine if the improvement in air quality was due to meteorological 
    circumstances or a downturn in the economy. The analysis showed that 
    neither exceptionally cool temperatures nor a downturn in the economy 
    were responsible for the area meeting the federal ozone standard, but 
    rather the emission reductions and improved air quality were the result 
    of permanent measures in the SIP. EPA has accepted this analysis. It 
    should be noted that the San Francisco Bay Area has actually measured 
    ``clean'' air quality data for ozone for five consecutive years.
        With respect to transport, CARB released preliminary results from a 
    modeling study which show that emissions from the San Francisco Bay 
    Area and the Sacramento Area do impact ozone concentrations in the San 
    Joaquin Valley (see discussion above). However, for the reasons 
    described above, EPA cannot concur that the San Francisco Bay Area has 
    met the ozone NAAQS because of transport of emissions to nearby air 
    basins. In addition, as discussed above, future control regulations 
    that are being adopted by the BAAQMD will further reduce any 
    transported emissions to nearby air basins in the future.
        The projections in the maintenance plan do show that vehicle miles 
    travelled (VMT) will continue to increase in the future. However, 
    emission projections through 2000 show an overall reduction in ozone 
    precursor emissions from mobile sources due to the retirement of older 
    vehicles and the increase in proportion of new, cleaner vehicles.
    Comment 15
        One commenter asserted that the BAAQMD's transportation control 
    measure plan in the Clean Air Plan will increase vehicle miles 
    traveled.
    EPA Response
        The transportation control measure (TCM) plan in the Bay Area Clean 
    Air Plan has not been submitted to become part of the SIP, but rather 
    fulfills the requirements under the California Clean Air Act. EPA has 
    not reviewed this plan since it is not part of the control strategy 
    used to demonstrate attainment or maintenance of the federal ozone 
    standard.
    
    B. EPA Response to Comments: Section 182(f) NOX Waiver Petition
    
        In August 1994, three environmental groups submitted joint comments 
    on the proposed approvals of NOX exemptions for the Ohio and 
    Michigan ozone nonattainment areas. The comments address EPA's general 
    policy regarding NOX exemptions and apply to all actions EPA takes 
    regarding section 182(f) NOX exemptions. These comments as well as 
    those received specifically addressing the BAAQMD proposed NOX 
    RACT exemption are addressed below.
    NOX Waiver Comment 1
        The commenters argued that NOX exemptions are provided for in 
    two separate parts of the CAA, 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 CAA's conformity provisions.
    
    [[Page 27037]]
    
    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 
    CAA defines to include States) may petition for NOX exemptions 
    ``at any time,'' and requires the EPA to make its determination within 
    six 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).
        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 CAA sanctions, areas seeking a NOX 
    exemption would have needed to submit their exemption request for EPA 
    review and rulemaking action several months before November 15, 1992. 
    In contrast, the CAA 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 CAA. For maintenance plans, the CAA 
    does not specify a deadline for submittal of maintenance 
    demonstrations. Clearly, the CAA envisions the submittal of and EPA 
    action on exemption requests, in some cases, prior to submittal of 
    attainment or maintenance demonstrations.
        The CAA requires conformity to the applicable SIP 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.
    NOX Waiver Comment 2
        The commenters stated that the modeling required by EPA guidance 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
        The EPA does not believe that this comment is applicable to the San 
    Francisco Bay Area exemption because the demonstration is based on 
    three years of ambient monitoring data and not modeling.
    NOX Waiver Comment 3
        The commenters provided a comment that three years of ``clean'' 
    data fail to demonstrate that NOX reductions would not contribute 
    to attainment, and that EPA's policy erroneously equates the absence of 
    a violation for one three-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 CAA. The section 
    107 criteria are more comprehensive than the CAA requires with respect 
    to NOX exemptions under section 182(f).
        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).
    NOX Waiver Comment 4
        Some commenters provided a comment on all section 182(f) actions 
    that a waiver of NOX controls is unlawful if such a waiver will 
    impede attainment and maintenance of the ozone standard in separate 
    downwind areas.
        Some stated specifically that NOX emissions from the Bay Area 
    are likely to exacerbate ozone nonattainment downwind in the Sacramento 
    Basin and the San Joaquin Valley, and that until transport of ozone 
    precursors from the San Francisco Bay Area to the Sacramento Basin and 
    the San Joaquin Valley are addressed, granting an exemption from the 
    NOX requirements is not consistent with the requirements of the 
    Clean Air Act.
        The commenters further added that transport of NOX emissions 
    from the San Francisco Bay Area adds to the attainment burden of the 
    Sacramento Basin, and results in substantially different air quality 
    rules in the two regions which translates into economic inequities and 
    unfair economic [[Page 27038]] penalties to the Sacramento area 
    community. Also, insufficient technical studies have been conducted to 
    assess multi-basin transport regarding the San Francisco Bay Area and 
    the Sacramento Basin, without which, redesignation and the NOX 
    exemption should not be granted.
        The commenters contend that EPA's policy could prohibit approval of 
    the SIP for the BAAQMD unless violations in adjacent air basins are 
    addressed. Therefore, because of previous ozone concentrations 
    monitored above the Federal standard in the San Joaquin Valley which 
    were a consequence of San Francisco Bay Area emissions, areas evaluated 
    for attainment, maintenance, and exemptions should include data from 
    monitoring locations in adjacent air basins downwind of the San 
    Francisco Bay Area. In addition, until all data, including recent data 
    showing the Northern portion of the San Joaquin Valley would be in 
    attainment of the Federal ozone standard in the absence of transported 
    pollutants from the San Francisco Bay Area, which identifies the San 
    Francisco Bay Area as a transport couple with the San Joaquin Valley is 
    adequately assessed to define the effects of San Francisco Bay Area 
    emissions on the ozone attainment status of the San Joaquin Valley, a 
    NOX RACT exemption should not be approved.
    EPA Response
        As a result of these comments and comments received regarding ozone 
    transport in NOX exemption requests for other areas in the United 
    States, EPA has reevaluated its position on this issue and decided to 
    revise the previously issued guidance. 12 As described below, 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).
    
        \12\ See ``Section 182(f) Nitrogen Oxides (NOX) 
    Exemptions--Revised Process and Criteria'', issued February 8, 1995 
    by John S. Seitz, Director of EPA's Office of Air Quality Planning 
    and Standards.
        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, certain nonattainment areas in the modeling domain have 
    requested exemptions from NOX requirements under section 182(f). 
    Some areas requesting an exemption 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.'' \13\ As described in 
    section 4.3 of the 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.
    
        \13\ 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 section 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.''
    ---------------------------------------------------------------------------
    
        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, section 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 section 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.
    NOX Waiver Comment 5
        Comments were received regarding exemption of areas from the 
    NOX requirements of the conformity rules. The commenters 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 [[Page 27039]] guidance, EPA has acknowledged the 
    need to amend a drafting error in the existing 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 14,15 
    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 
    transportation improvement plan (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, EPA 
    is not granting an exemption from the transportation conformity 
    requirements under section 182(f) in this action for the Bay Area. 
    Rather, EPA's approval of the Bay Area's redesignation and maintenance 
    plan begins the maintenance period, and an area's transportation plans 
    and TIPs must be consistent with the motor vehicle emissions budget in 
    the maintenance plan. The requirements of the transportation conformity 
    regulation that plans and TIPs satisfy the ``build/no build'' test and 
    achieve emissions reductions, does not apply to areas redesignated and 
    operating under a maintenance status.
    
        \14\ ``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).
        \15\ ``Determining Conformity of General Federal Actions to 
    State or Federal Implementation Plans; Final Rule,'' November 30, 
    1993 (58 FR 63214).
    ---------------------------------------------------------------------------
    
    NOX Waiver Comment 6
        Some commenters argue that the CAA does not authorize any waiver of 
    the NOX reduction requirements until conclusive evidence exists 
    that such reductions are counter-productive.
    EPA Response
        The 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 Congress' 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 CAA provides that the new 
    NOX requirements shall not apply (or may be 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.
    
    III. EPA Final Action
    
        In this final action, EPA is approving the San Francisco Bay Area 
    ozone maintenance plan because it meets the requirements of section 
    175A. In addition, the Agency is redesignating the San Francisco Bay 
    Area to attainment for ozone because the State of California has 
    demonstrated compliance with the requirements of section 107(d)(3)(E) 
    for redesignation. Finally, EPA is approving the NOX waiver 
    petition and 1990 emissions inventory for the San Francisco Bay Area.
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any SIP. Each [[Page 27040]] request for revision shall be 
    considered separately in light of specific technical, economic, and 
    environmental factors and in relation to relevant statutory and 
    regulatory requirements. The ozone SIP is designed to satisfy the 
    requirements of Part D of the CAA and to provide for attainment and 
    maintenance of the ozone NAAQS. This final redesignation should not be 
    interpreted as authorizing the State of California to delete, alter, or 
    rescind any of the VOC or NOX emission limitations and 
    restrictions contained in the approved ozone SIP. Changes to the ozone 
    SIP VOC RACT regulations rendering them less stringent than those 
    contained in the EPA approved plan cannot be made unless a revised plan 
    for attainment and maintenance is submitted and approved by EPA. 
    Unauthorized relaxations, deletions, and changes could result in both a 
    finding of nonimplementation (section 173(b) of the CAA) and in a SIP 
    deficiency call made pursuant to section 110(a)(2)(H) of the CAA.
        This action has been classified as a Table 2 action for signature 
    by the Regional Administrator under the procedures published in the 
    Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by 
    an October 14, 1993 memorandum from Michael H. Shapiro, Acting 
    Assistant Administrator for Air and Radiation. The OMB has exempted 
    this regulatory action from the requirements of section 6 of Executive 
    Order 128866.
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities ( 5 U.S.C. 603 and 604). 
    Alternatively, EPA may certify that the rule will not have a 
    significant impact on a substantial number of small entities. Small 
    entities include small businesses, small not-for-profit enterprises, 
    and government entities with jurisdiction over populations of less than 
    50,000.
        Redesignation of an area to attainment under section 107(d)(3)(E) 
    of the CAA, approval of a section 182(f) exemption, and approval of an 
    emissions inventory do not impose any new requirements on small 
    entities. Redesignation is an action that affects the status of a 
    geographical area and does not impose any regulatory requirements on 
    sources. The Administrator certifies that the approval of the 
    redesignation request will not affect a substantial number of small 
    entities.
        Under Sections 202, 203 and 205 of the Unfunded Mandates Reform Act 
    of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 1995, 
    EPA must undertake various actions in association with proposed or 
    final rules that include a Federal mandate that may result in estimated 
    costs of $100 million or more to the private sector, or to State, 
    local, or tribal governments in the aggregate.
        Through submission of the state implementation plan or plan 
    revisions approved in this action, the State and any affected local or 
    tribal governments have elected to adopt the program provided for under 
    section 175A and 182(a)(1) of the Clean Air Act. Also, EPA's final 
    action approving the section 182(f) NOX waiver petition relieves 
    requirements otherwise imposed under the CAA and, hence does not impose 
    any federal intergovernmental mandate, as defined in section 101 of the 
    Unfunded Mandates Act. The rules and commitments approved in this 
    action may bind State, local and tribal governments to perform certain 
    actions and also may ultimately lead to the private sector being 
    required to perform certain duties. To the extent that the rules and 
    commitments being approved by this action will impose or lead to the 
    imposition of any mandate upon the State, local or tribal governments 
    either as the owner or operator of a source or as a regulator, or would 
    impose or lead to the imposition of any mandate upon the private 
    sector, EPA's action will impose no new requirements; such sources are 
    already subject to these requirements under State law. Accordingly, no 
    additional costs to State, local, or tribal governments, or to the 
    private sector, result from this action. Therefore, EPA has determined 
    that this final action does not include a mandate that may result in 
    estimated costs of $100 million or more to State, local, or tribal 
    governments in the aggregate or to the private sector.
        Under section 307(b)(1) of the Act, 42 U.S.C. 7607(b)(1), petitions 
    for judicial review of this action must be filed in the United States 
    Courts of Appeals for the appropriate circuit by July 21, 1995. Filing 
    a petition for reconsideration by the Administrator of this final rule 
    does not affect the finality of this rule for purposes of judicial 
    review nor does it extend the time within which a petition for judicial 
    review may be filed, and shall not postpone the effectiveness of such 
    rule or action. This action may not be challenged later in proceedings 
    to enforce its requirements (See section 307(b)(2) of the Act, 42 
    U.S.C. 7607(b)(2).
    
    List of Subjects
    
    40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Incorporation by reference, Intergovernmental relations, Nitrogen 
    dioxide, and Ozone, Reporting and recordkeeping requirements, Volatile 
    organic compounds.
    
    40 CFR Part 81
    
        Air pollution control, National Parks, Wilderness Areas.
    
        Dated: April 24, 1995.
    
    Felicia Marcus,
    Regional Administrator.
    
        Part 52, chapter I, title 40 of the Code of Federal Regulations is 
    amended as follows:
    
    PART 52--[AMENDED]
    
        1. The authority citation for Parts 52 and 81 continues to read as 
    follows:
    
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart F--California
    
        2. Section 52.220 is amended by adding paragraph (c)(205)(i)(B) and 
    (212) to read as follows:
    
    
    Sec. 52.220  Identification of Plan.
    
    * * * * *
        (c) * * *
        (205) * * *
        (i) * * *
        (B) Bay Area Air Quality Management District.
        (1) Amendments to the San Francisco Bay Area Redesignation Request 
    and Maintenance Plan for the National Ozone Standard and 1990 Emissions 
    Inventory adopted on September 7, 1994 by the Bay Area Air Quality 
    Management District, October 5, 1994 by the Metropolitan Transportation 
    Commission, and August 24, 1994 by the Association of Bay Area 
    Governments.
    * * * * *
        (212) Ozone redesignation request for the Bay Area Air Quality 
    Management District submitted on November 5, 1993, by the Governor's 
    designee.
        (i) Incorporation by reference.
        (A) Redesignation request for the San Francisco Bay Area and the 
    Ozone Maintenance Plan for the National Ozone Standard adopted on 
    September 1, 1993 by the Bay Area Air Quality Management District, 
    September 22, 1993 by the Metropolitan Transportation Commission, and 
    September 16, 1993 by the Association of Bay Area Governments.
    * * * * * [[Page 27041]] 
    
    PART 81--[AMENDED]
    
    Subpart B--Designation of Air Quality Control Regions
    
        3. In section 81.305, the table for ``California--Ozone'' is 
    amended by revising the entry ``San Francisco Bay Area'' to read as 
    follows:
    
    
    Sec. 81.305  California.
    
    * * * * *
    
                                                    California--Ozone                                               
    ----------------------------------------------------------------------------------------------------------------
                                                    Designation                           Classification            
             Designated area         -------------------------------------------------------------------------------
                                           Date \1\              Type                Date                Type       
    ----------------------------------------------------------------------------------------------------------------
    San Francisco-Bay Area:                                                                                         
        Alameda County..............  June 21, 1995.....  Attainment.         ..................  ..................
        Contra Costa County.........  ..................  ......do.           ..................  ..................
        Marin County................  ..................  ......do.           ..................  ..................
        Napa County.................  ..................  ......do.           ..................  ..................
        San Francisco County........  ..................  ......do.           ..................  ..................
        San Clara County............  ..................  ......do.           ..................  ..................
        San Mateo County............  ..................  ......do.           ..................  ..................
        Solano County (part)........  ..................  ......do.           ..................  ..................
    That portion of the county that   ..................  ......do.           ..................  ..................
     lies south and west of the line                                                                                
     described that follows:                                                                                        
     Description of boundary in                                                                                     
     Solano County between San                                                                                      
     Francisco and Sacramento:                                                                                      
     Beginning at the intersection                                                                                  
     at the westerly boundary of                                                                                    
     Solano County and the \1/4\                                                                                    
     section line running east and                                                                                  
     west through the center of                                                                                     
     Section 34; T.6 N., R. 2 W.,                                                                                   
     M.D.B.&M., thence east along                                                                                   
     said \1/2\ section line to the                                                                                 
     east boundary of Section 36, T.                                                                                
     6 N., R. 2 W., thence south \1/                                                                                
     2\ mile and east 2.0 miles,                                                                                    
     more or less, along the west                                                                                   
     and south boundary of Los Putos                                                                                
     Rancho to the northwest corner                                                                                 
     of Section 4, T. 5 N., R. 1 W,                                                                                 
     thence east along a line common                                                                                
     to T. 5 N., and T. 6 N. to the                                                                                 
     northeast corner of Section 3,                                                                                 
     T. 5 N., R. 1 E., thence south                                                                                 
     along section lines to the                                                                                     
     southeast corner of Section 10                                                                                 
     T. 3 N., R. 1 E., thence east                                                                                  
     along section lines to the                                                                                     
     south \1/4\ corner of Section 8                                                                                
     T. 3 N., R. 2 E., thence east                                                                                  
     to the boundary between Solano                                                                                 
     and Sacramento Counties.                                                                                       
    Sonoma County (part)............  ..................  ......do.                                                 
    ----------------------------------------------------------------------------------------------------------------
    \1\ The date is November 15, 1990 unless otherwise noted.                                                       
    
    [FR Doc. 95-12407 Filed 5-19-95; 8:45 am]
    BILLING CODE 6560-50-P
    
    

Document Information

Effective Date:
6/21/1995
Published:
05/22/1995
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
95-12407
Dates:
This final rule will become effective on June 21, 1995.
Pages:
27028-27041 (14 pages)
Docket Numbers:
CA-64-1-6997, FRL-5202-4
PDF File:
95-12407.pdf
CFR: (2)
40 CFR 52.220
40 CFR 81.305