97-13655. Approval and Promulgation of Extension of Temporary Section 182(f) and Section 182(b) Exemption to the Nitrogen Oxides (NOINFX/INF) Control Requirements for the Houston/Galveston and Beaumont/Port Arthur Ozone Nonattainment Areas; Texas  

  • [Federal Register Volume 62, Number 100 (Friday, May 23, 1997)]
    [Rules and Regulations]
    [Pages 28344-28349]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-13655]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [TX76-1-7330; FRL-5828-3]
    
    
    Approval and Promulgation of Extension of Temporary Section 
    182(f) and Section 182(b) Exemption to the Nitrogen Oxides 
    (NOX) Control Requirements for the Houston/Galveston and 
    Beaumont/Port Arthur Ozone Nonattainment Areas; Texas
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Final rule.
    
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    SUMMARY: In this action, EPA is approving a petition for an extension 
    of the temporary exemption from the NOX control requirements 
    of sections 182(f) and 182(b) of the Clean Air Act (the Act) for the 
    Houston/Galveston (HGA) and Beaumont/Port Arthur (BPA) ozone 
    nonattainment areas from December 31, 1996, to December 31, 1997. The 
    State of Texas submitted the petition to EPA requesting the extension 
    to permit additional time to complete Urban Airshed Modeling (UAM). A 
    temporary NOX exemption has been granted by EPA because 
    preliminary photochemical grid modeling showed that reductions in NOx 
    would be detrimental to attaining the National Ambient Air Quality 
    Standards (NAAQS) for ozone in these areas. Approval of this petition 
    will extend the temporary exemption which waives the Federal NOx 
    requirements for Reasonably Available Control Technology (RACT), New 
    Source Review (NSR), Vehicle Inspection/Maintenance (I/M), and 
    conformity by one year (December 31, 1996, to December 31, 1997) and 
    the
    
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    implementation date for NOX RACT by two years to May 31, 
    1999.
    
    EFFECTIVE DATE: This action is effective as of May 23, 1997.
    
    ADDRESSES: Copies of the extension request, public comments and EPA's 
    responses are available for inspection at the following addressees:
    
    Environmental Protection Agency, Region 6, Air Planning Section, 445 
    Ross Ave, Suite 1200, Mailcode 6PD-L, Dallas, TX 75202.
    Texas Natural Resource Conservation Commission, 12100 Park 35 Circle, 
    P.O. Box 13087, Austin, Texas 78711-3087.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Herbert R. Sherrow, Jr., Air 
    Planning Section (6PD-L), Multimedia Planning and Permitting Division, 
    Environmental Protection Agency, Region 6, 1445 Ross Avenue, Suite 
    1200, Dallas, Texas 75202. The telephone number is 214-665-7237.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
        On August 17, 1994, the Texas Natural Resource Conservation 
    Commission (TNRCC) submitted to EPA a petition pursuant to section 
    182(f) which requested that the HGA and BPA nonattainment areas be 
    temporarily exempted by EPA from the NOX control 
    requirements of section 182(f) of the Act. The State based its petition 
    on the use of a UAM demonstration showing, pursuant to EPA guidelines, 
    that NOX reductions would not contribute to attainment in 
    either area because the decrease in ozone concentrations resulting from 
    Volatile Organic Compounds (VOC) reductions alone is equal to or 
    greater than the decrease obtained from NOX reductions or a 
    combination of VOC and NOX reductions. The petition for the 
    temporary exemption was approved by EPA and published at 60 FR 19515 
    (April 19, 1995).
        On March 6, 1996, the State of Texas submitted a petition to EPA 
    which requests that the HGA and BPA nonattainment areas be granted an 
    extension to the temporary exemption from NOX control 
    requirements of sections 182(f) and 182(b) of the Act. The State's 
    petition was transmitted by a letter from George W. Bush, Governor, 
    State of Texas, to Jane Saginaw, Regional Administrator of EPA Region 
    6. The petition was accompanied by the records of public hearing on the 
    petition to satisfy the requirements of section 110. The petition 
    requests an extension of one year, from December 31, 1996, to December 
    31, 1997, for the exemption and an extension of the NOX RACT 
    compliance date from May 31, 1997, to May 31, 1999. The petition was 
    subjected to public notice on September 5, 1995, and hearing on October 
    2, 1995. Since the petition for extension went through the State's 
    public participation procedures prior to submittal, EPA considers it to 
    be submitted as a revision to the State Implementation Plan (SIP) and, 
    thus meets the requirements of sections 110 and 182(b).
        The State based its petition on needing additional time to complete 
    further UAM modeling using data from the Coastal Oxidant Assessment for 
    Southeast Texas (COAST) study. The preliminary modeling showed that 
    NOX reductions would not contribute to attainment in either 
    area because domain-wide predicted maximum ozone concentrations are 
    lowest when only VOC reductions are modeled. The schedule submitted in 
    the State's original section 182(f) petition was established based on 
    the expected completion of the UAM COAST modeling for attainment 
    demonstration purposes by May 31, 1996. The extension would allow UAM 
    using COAST data to accommodate recent improvements in the modeling 
    process. These improvements will allow the development of better 
    substantiated control programs and minimize the possibility that 
    reliance on earlier preliminary modeling could result in unnecessary or 
    counterproductive control programs, particularly if NOX 
    controls are still shown to be detrimental. The petition also includes 
    a description of the improvements in data quantity and quality which 
    will result from the additional COAST data modeling information.
        Some of the advantages of taking additional time to conduct the 
    modeling are: (1) the use of the UAM, version V, which is an improved 
    model over the UAM, version IV, previously used, particularly in the 
    reduced use of national defaults; (2) the development of more detailed 
    emissions inventory data; (3) the use of additional monitored data; and 
    (4) the use of more refined meteorological data. The current modeling 
    effort is estimated by the State to be an order of magnitude increase 
    over that for the preliminary modeling, with an attendant increase in 
    the quality-assurance effort required. Because of the large economic 
    impact of the future ozone control strategy on the Texas Gulf Coast 
    Region, both the State and EPA believe that it is essential that the 
    modeling be based on the best available science and the most complete, 
    quality-assured data possible.
        Also submitted with the petition was a revision to previously-
    adopted NOX RACT rules (30 Texas Air Control (TAC) 117) 
    which would extend the compliance dates from May 31, 1997, to May 31, 
    1999. The State first submitted the NOX RACT rules to EPA on 
    December 6, 1993.
        A revision to the Texas (Nonattainment) New Source Review rule (30 
    TAC section 116.150), adopted on October 11, 1995, temporarily extends 
    the suspension of the NOX NSR requirements in HGA and BPA 
    through December 31, 1997. This rule revision was submitted to EPA on 
    November 1, 1995, and was not resubmitted with the petition.
        On December 13, 1996, EPA proposed to approve the petition for a 
    one-year extension of the temporary exemption of the 182(f) and 182(b) 
    NOX requirements for the HGA and BPA areas (61 FR 65504). 
    The proposed rulemaking notice, EPA's Technical Support Document 
    (November 1994) on the proposed action, and supplemental information 
    are contained in the docket and provide a detailed discussion of the 
    TNRCC's submittal, applicable guidance, and EPA's rationale for 
    proposing approval of the State's petition for a one-year extension. 
    Rather than repeating that entire discussion in this document, that 
    discussion is incorporated by reference herein. Thus, the public should 
    review the notice of proposed rulemaking for relevant background on 
    this final rulemaking action.
    
    II. Response to Comments
    
        The following discussion summarizes the comments received regarding 
    the State's petition and/or EPA's proposed rulemaking and presents 
    EPA's responses to these comments. The EPA received 28 letters of 
    support from individuals, industry, local governments, the State 
    Transportation Authority, and the State of Texas. Two adverse comments 
    letters were received from environmental groups. In August 1994, three 
    environmental groups (Natural Resources Defense Council, Sierra Club, 
    and Environmental Defense Fund (NRDC, et al.)) submitted joint adverse 
    comments that addressed EPA's general policy regarding NOX 
    exemptions. The commenters requested that these comments be included in 
    the docket for all EPA rulemakings on NOX exemptions. The 
    EPA responded to these comments in its earlier final rulemaking 
    approving a temporary section 182(f) NOX exemption for the 
    Houston/Galveston and Beaumont/Port Arthur areas. Please refer to 60 FR 
    19515 (April 19, 1995) for this discussion. The EPA incorporates these 
    responses herein and will not reiterate
    
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    our response in this notice. Responses to comments received recently 
    follow.
        Comment: One commenter indicated that comments had been submitted 
    previously during the comment period for the temporary exemption and 
    requested that those comments be reconsidered. Those comments generally 
    addressed issues concerning SIP submittals, modeling accuracy, 
    transport, and the legal basis for the approval.
        Response: EPA responded to these comments in the response to 
    comments contained in the final approval of the temporary exemption for 
    HGA and BPA and disagreed with the comments. It is EPA's position that 
    the previous responses remain valid. Please refer to 60 FR at 19516-
    19521 for a complete discussion of all comments and responses to 
    comments relating to the approval of the temporary exemption.
        Comment: Both commenters felt that the UAM computer modeling was 
    not sufficiently accurate to allow good predictions of air quality.
        Response: The EPA disagrees with the comment that the UAM 
    demonstration was insufficient to allow good predictions of air 
    quality. Since a large number of factors influence ozone formation, the 
    EPA agrees that no models, including the UAM, can predict precisely the 
    exact relationship between VOC, NOX, and ozone. However, 
    Congress clearly intended that photochemical grid modeling be used for 
    ozone air quality planning purposes in serious and above nonattainment 
    areas. As noted in the EPA's December 1993, guidance, UAM results are 
    acceptable for the purpose of the section 182(f) demonstrations and 
    application of UAM should be consistent with the techniques specified 
    in EPA's ``Guidelines on Air Quality Models (Revised).'' The UAM 
    modeling utilized by Texas met these criteria.
        Comment: One commenter stated that since UAM modeling by the TNRCC 
    cannot be replicated as evidence it is inherently flawed.
        Response: The EPA disagrees with the comment that TNRCC UAM cannot 
    be replicated. Realizing that the UAM is the most complex model 
    released to the States for regulatory use, EPA requires States to 
    submit sufficient information for EPA and public review to ensure that 
    the modeling is technically correct. To facilitate review of modeling 
    by the EPA and the public, making data accessible to the public and EPA 
    is one of seven components required in EPA's Guidance on the UAM 
    Reporting Requirements for Attainment Demonstrations. Although the data 
    files are not required as part of the submittal, the State is still 
    required to make available all UAM files used in the model performance 
    and attainment simulations to EPA and the public at any time. This 
    enables EPA or interested parties to replicate model performance and 
    attainment simulation results if desired. No modeling was conducted by 
    EPA to replicate TNRCC's results since the protocol was consistent with 
    EPA guidance. With the submitted technical documentation summarizing 
    the modeling process, assumptions, and results, and with additional 
    data available from the State, it is EPA's position that TNRCC's UAM 
    modeling can be replicated.
        Comment: One commenter stated that model performance was believed 
    partly successful in only one episode.
        Response: The EPA disagrees with this comment. The EPA's UAM 
    guidance recommends that three primary episode days should be 
    simulated, and that primary episode days are to be selected from the 
    predominant meteorological regimes (e.g., three meteorological regimes, 
    each containing one primary day, or two meteorological regimes with at 
    least two primary days from one of those regimes). For the purpose of a 
    temporary NOX exemption, Texas did model three episodes. 
    However, only two episodes had an adequate model performance. Although 
    only two of the three episodes modeled achieved adequate performance, 
    this is consistent with EPA guidance. Thus, two episodes are acceptable 
    for the purposes of a temporary exemption since they comprised five 
    days of ozone exceedances and covered several of the predominant 
    meteorological regimes under which ozone exceedences typically occur in 
    the Gulf Coast.
        Comment: One commenter stated that the inventory was uncertain and 
    questioned the magnitude of error in the inventory.
        Response: The EPA disagrees with the comment that the emissions 
    inventories are too uncertain to produce acceptable modeling results. 
    In the HGA and BPA modeling exercises, TNRCC followed the EPA 
    procedures for developing episode-specific emission inventories. In 
    addition, the modeling inventories, which were developed for all three 
    episodes, were based on the 1990 base-year emission inventories in 
    accordance with EPA's UAM guidance. The EPA evaluated the State's 1990 
    base-year emission inventories and a final approval of the inventories 
    was published in the FR on November 8, 1994 (59 FR 55588).
        Comment: One commenter stated that the proposed submittal of new 
    modeling was to be conducted with a now-disapproved model.
        Response: The EPA disagrees that the State used a now-disapproved 
    model. The modeling for the original exemption was conducted with UAM-
    IV, which is still the EPA-approved regulatory model. However, the 
    state is planning to use UAM-V to conduct its additional modeling. 
    Under EPA's modeling guidelines EPA can approve the use of UAM-V as an 
    acceptable alternative to UAM-IV if the State requests permission to 
    use it and, among other things, the state demonstrates that it performs 
    better than UAM-IV. If these conditions are met, then EPA will grant 
    permission. In addition, UAM-V has been used in regulatory ozone 
    attainment demonstrations for a number of areas. Thus, a decision by 
    EPA to approve the use of UAM-V is not a determination that UAM-IV is 
    unacceptable or somehow ``disapproved'', nor that conclusions obtained 
    through its use have been invalidated.
        Comment: One commenter stated that downwind transport from Houston 
    is responsible for air quality problems in other areas of Texas and 
    that UAM is limited in estimating regional ozone air quality.
        Response: The EPA agrees that Texas' UAM analysis is only designed 
    to estimate air quality over an urban airshed area, such as the 
    Houston/Galveston and Beaumont/Port Arthur areas, and 11 neighboring 
    counties. The analysis is not designed to assess regional impacts, and, 
    therefore, cannot verify whether downwind transport from Houston is 
    affecting air quality in other areas. Other commenters have also argued 
    that waiver of NOX control requirements is unlawful if such 
    a waiver would impede attainment and maintenance of the ozone standard 
    in downwind areas.
        As a result of these comments, EPA reevaluated its position on this 
    issue and has revised previously issued guidance. See Memorandum, 
    ``Section 182(f) Nitrogen Oxides (NOX) Exemptions--Revised 
    Process and Criteria,'' dated February 8, 1995, from John Seitz. As 
    described in this memorandum, EPA intends to use its authority under 
    section 110(a)(2)(D) to require a State to reduce NOX 
    emissions from stationary and/or mobile sources where there is 
    evidence, such as photochemical grid modeling, showing that the 
    NOX emissions would contribute significantly to 
    nonattainment in, or interfere with maintenance by, any other State or 
    in another nonattainment area within the same State. This action would 
    be
    
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    independent of any action taken by EPA on a NOX exemption 
    request under section 182(f). That is, EPA's action to grant or deny a 
    NOX exemption request under section 182(f) for any area 
    would not shield that area from EPA's action to require NOX 
    emission reductions, if necessary, under section 110(a)(2)(D).
        Modeling analyses are underway or will soon be conducted in many 
    areas for the attainment demonstration SIP revisions required pursuant 
    to section 182(c)(2)(A). Recent modeling data suggest that certain 
    ozone nonattainment areas may benefit from reductions in NOX 
    emissions upwind of the nonattainment areas. For example, the Northeast 
    Corridor States and the Lake Michigan Ozone Study are considering 
    attainment strategies which may 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 the large scale modeling analyses are being 
    conducted, States have requested exemptions from NOX 
    requirements under section 182(f) for certain nonattainment areas in 
    the modeling domains. Some of these nonattainment areas may impact 
    downwind nonattainment areas. The EPA intends to address the transport 
    issue under section 110(a)(2)(D), based on a regional modeling 
    analysis.
        Under section 182(f) of the Act, an exemption from NOX 
    requirements may be granted for nonattainment areas outside of 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.'' \1\ As described 
    in section 4.3 of the December 13, 1993, EPA guidance document, 
    ``Guideline for Determining the Applicability of Nitrogen Oxides 
    Requirements Under Section 182(f),'' EPA encourages, but does not 
    require, States/petitioners to consider the impacts on the entire 
    modeling domain since the effects of an attainment strategy may extend 
    beyond a 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 interstate. States need to consider such impacts since 
    they are ultimately responsible for achieving attainment in all 
    portions of their State 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) of the Act.
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        \1\ There are three NOX exemption tests specified in 
    section 182(f). Of these, two are applicable for areas outside of an 
    ozone transport region: the ``contribute to attainment'' test 
    described above, and the ``net air quality benefits'' test. The 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.''
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        In contrast, section 4.4 of the December 16, 1993, 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 further explains that section 
    110(a)(2)(D) (not section 182(f)) prohibits such impacts. Consistent 
    with section 4.3 of the guidance, the EPA believes that the section 
    110(a)(2)(D) and 182(f) provisions must be considered independently, 
    and hence, has revised section 4.4 of the December 16, 1993, guidance 
    document. Thus, if there is evidence that NOX emissions in 
    an upwind area would interfere with attainment or maintenance in a 
    downwind area, that problem will be separately addressed by EPA in a 
    section 110(a)(2)(D) action. However, there has been no such 
    determination made with respect to the HGA/BPA areas at issue here.
        The State of Texas is being included in one of the new modeling 
    analyses referred to above that is being conducted by EPA, States, and 
    other agencies as part of the Ozone Transport Assessment Group (OTAG). 
    The OTAG process is a consultative process among 37 States and EPA. The 
    OTAG process will evaluate regional and national emission control 
    strategies using improved regional modeling analyses. The goal of the 
    OTAG process is to reach consensus on additional regional and national 
    emission reductions that are needed to support efforts to attain the 
    ozone standard throughout the eastern United States. Some States have 
    committed to submit plans (SIP revisions), upon completion of the OTAG 
    process, that demonstrate attainment of the ozone standard through 
    local, regional, and national emission controls.
        As noted in a prior EPA rulemaking dated November 28, 1994 (59 FR 
    60709), all NOX waivers are approved on a contingent basis. 
    The waiver applies only so long as air quality analyses, such as from 
    additional ozone modeling, in an exempted area continue to show 
    NOX reductions are detrimental or would not contribute to 
    attainment of the ozone NAAQS. Therefore, if future air quality 
    analysis shows that NOX reductions are beneficial in 
    reducing ozone, the State will have to implement necessary 
    NOX controls.
        Comment: One commenter objected to the extension based on concerns 
    for adverse health effects that may be caused by NOX 
    concentrations in Houston.
        Response: There is currently a national health standard for 
    NO2 and all portions of the Houston/Galveston and Beaumont/
    Port Arthur areas meet that standard. In addition, the modeling 
    projected growth to 1999 and still demonstrated that NO2 
    reductions would not contribute to attaining the ozone NAAQS.
        Comment: One commenter stated that there are disproportionate 
    population impacts of ozone air pollution in the Houston area.
        Response: The EPA is vitally concerned that good air quality is 
    available to all residents of an area. Air quality standards are set on 
    an area-wide basis to attempt to ensure that no one segment of the 
    population is treated disproportionately. Concerning the specific 
    subject of this rulemaking, NOX contributions as an ozone 
    precursor, UAM has shown that NOX controls would not improve 
    (and, in fact, may worsen) the ozone problem in the Houston area and 
    thus, would not be beneficial to the residents of the Houston area. 
    Therefore, the available evidence indicates that approving the 
    extension will benefit the residents of the area.
        Comment: One commenter stated that there are parallels between the 
    Louisiana industrial corridor and the Houston/Galveston industrial 
    corridor regarding toxics releases, environmental equity, and 
    NOX emissions.
        Response: The EPA has conducted a study of the toxics impacts in 
    the lower Mississippi River industrial corridor (Toxics Release 
    Inventory & Emission Reductions 1987-1990 in the Lower Mississippi 
    River Industrial Corridor, U.S. EPA, May 14, 1993). The conclusions 
    from that study did not identify NOX as a problem in the 
    lower Mississippi River industrial corridor.
    
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        Moreover, the Act provides in section 182(f) for NOX to 
    be addressed independently as an ozone precursor pollutant for 
    exemption purposes. Therefore, since section 182(f) does not require 
    toxics impacts analysis, it would be inappropriate to consider the 
    effect of toxics emissions for NOX exemption purposes.
        In addition, the State of Louisiana submitted a petition and a SIP 
    to EPA requesting a section 182(f) and 182(b) NOX exemption 
    for the Baton Rouge nonattainment area. The requests were based on UAM 
    modeling which satisfied all of EPA's requirements. The results of the 
    modeling indicated that NOX controls would be a disbenefit 
    to area residents since they would cause an increase in ozone levels. 
    The requests were approved at 61 FR 2438, January 26, 1996, and 61 FR 
    7218, February 27, 1996.
        Since there are no other ozone nonattainment areas in the lower 
    Mississippi River industrial corridor and the Baton Rouge area has 
    received a NOX exemption, EPA does not agree with the 
    comment comparing Texas' NOX emissions disfavorably to those 
    in the Lower Mississippi River industrial corridor.
        The environmental equity issues were discussed in the previous 
    response to comments.
    
    III. Effective Date
    
        This rulemaking is effective as of May 23, 1997. The Administrative 
    Procedure Act 5 U.S.C. 553(d)(1), permits the effective date of a 
    substantative rule to be less than thirty days after the publication of 
    the rule if the rule ``relieves a restriction.'' Since the approval of 
    the extension to the section 182(f) and 182(b) exemptions for the HGA 
    and BPA areas is a substantative rule that relieves the restrictions 
    associated with the Act title I requirements to control NOX 
    emissions, the NOX exemption extension approval may be made 
    effective upon publication in the Federal Register.
    
    IV. Final Action
    
        The EPA is taking final action to approve the petition submitted by 
    the State of Texas for an extension of the temporary NOX 
    exemption for the HGA and BPA ozone nonattainment areas from December 
    31, 1996, to December 31, 1997. The extension will expire on December 
    31, 1997, without further notice from EPA. The extension applies to 
    NOX RACT, NSR, and certain I/M, general and transportation 
    conformity NOX requirements.
        The State previously adopted and submitted to EPA complete 
    NOX RACT, NSR, I/M, and conformity rules. Along with the 
    exemption extension submittal, NOX RACT rules providing for 
    extending the current implementation date, were resubmitted. During the 
    extension of the temporary exemption period, EPA will not act upon the 
    State's NOX RACT rules. The EPA plans to act upon the 
    State's NSR, I/M, and general and transportation conformity 
    NOX submissions in separate rulemaking actions because those 
    submissions are contained in broader rules that also control VOC 
    emissions.
        Upon the expiration of the extension to the temporary exemption on 
    December 31, 1997, the State is required to either: (1) Have received 
    an additional extension to the temporary NOX exemption or a 
    contingent exemption from EPA prior to that time; or (2) begin 
    implementing the State's NOX RACT, NSR, I/M, general and 
    transportation conformity requirements, with NOX RACT 
    compliance required as expeditiously as practicable but no later than 
    May 31, 1999. The EPA will begin rulemaking on the NOX RACT 
    SIP upon the expiration of the extension to the temporary exemption if 
    the State has not received an additional temporary extension or a 
    contingent exemption by that time.
        Since the original temporary exemption and this one-year extension 
    are based on preliminary modeling, and additional time is being granted 
    to allow for conducting modeling with improved data from the COAST 
    study, any future petition for a further NOX extension or 
    new exemption, to be technically valid, must be accompanied by UAM 
    modeling based on the COAST data and be submitted in time for EPA to 
    take action prior to the expiration of the temporary exemption. 
    Preliminary modeling cannot be used as a basis for any further 
    extensions or a new exemption. In addition, a further two-year 
    extension of the NOX RACT compliance date based on the 
    preliminary modeling would not be approvable since it would extend the 
    date beyond 1999, the last year included in the preliminary modeling.
        Other specific requirements that would reapply upon expiration are: 
    (1) Any NSR permits that had not been deemed complete prior to January 
    1, 1998, must comply with the NOX NSR requirements, 
    consistent with the policy set forth in the EPA's NSR Supplemental 
    Guidance memo dated September 3, 1992, from John Seitz, Director, EPA's 
    Office of Air Quality Planning and Standards; (2) any conformity 
    determination (for either a new or revised transportation plan and 
    Transportation Improvement Program) made after January 1, 1998, must 
    comply with the NOX conformity requirements; and (3) any I/M 
    vehicle inspection made after January 1, 1998, must comply with the I/M 
    NOX requirements.
    
    V. Regulatory Action
    
        Nothing in this action should be construed as permitting or 
    allowing or establishing a precedent for any future request for 
    revision to any SIP. Each request for revision to the SIP shall be 
    considered separately in light of specific technical, economic, and 
    environmental factors and in relation to relevant statutory and 
    regulatory requirements.
    
    VI Administrative Requirements
    
    A. Executive Order (E.O.) 12866
    
        This action has been classified as a Table 1 action for signature 
    by the Administrator under the procedures published in the Federal 
    Register on January 19, 1989 (54 FR 2214-2225), as revised by a July 
    10, 1995, memorandum from Mary Nichols, Assistant Administrator for Air 
    and Radiation. The Office of Management and Budget has exempted this 
    regulatory action from E.O. 12866 review.
    
    B. Regulatory Flexibility Act
    
        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. See 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.
        The SIP approvals under section 110 and subchapter I, part D of the 
    Act do not create any new requirements but simply approve requirements 
    that the State is already imposing. Therefore, because the Federal SIP 
    approval does not impose any new requirements, I certify that it does 
    not have a significant impact on any small entities affected. Moreover, 
    due to the nature of the Federal-State relationship under the Act, 
    preparation of a flexibility analysis would constitute Federal inquiry 
    into the economic reasonableness of State action. The Act forbids EPA 
    to base its actions concerning SIPs on such grounds. See Union Electric 
    Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).
    
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    C. Unfunded Mandates
    
        Under section 202 of the Unfunded Mandates Reform Act of 1995, 
    signed into law on March 22, 1995, EPA must prepare a budgetary impact 
    statement to accompany any proposed or final rule that includes a 
    Federal mandate that may result in estimated costs to State, local, or 
    tribal governments in the aggregate; or to private sector, of $100 
    million or more. Under section 205, EPA must select the most cost-
    effective and least burdensome alternative that achieves the objectives 
    of the rule and is consistent with statutory requirements. Section 203 
    requires EPA to establish a plan for informing and advising any small 
    governments that may be significantly or uniquely impacted by the rule.
        The EPA has determined that the approval action promulgated does 
    not include a Federal mandate that may result in estimated costs of 
    $100 million or more to either State, local, or tribal governments in 
    the aggregate, or to the private sector. This Federal action approves 
    preexisting requirements under State or local law, and imposes no new 
    requirements. Accordingly, no additional costs to State, local, or 
    tribal governments, or to the private sector, result from this action.
    
    D. Submission to Congress and the General Accounting Office
    
        Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
    Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
    containing this rule and other required information to the U.S. Senate, 
    the U.S. House of Representatives and the Comptroller General of the 
    General Accounting Office prior to publication of this rule in today's 
    Federal Register. This rule is not a ``major rule'' as defined by 5 
    U.S.C. 804(2).
    
    E. Petitions for Judicial Review
    
        Under section 307(b)(1) of the Act, petitions for judicial review 
    of this action must be filed in the United States Court of Appeals for 
    the appropriate circuit by July 22, 1997. Filing a petition for 
    reconsideration by the Administrator of this final rule does not affect 
    the finality of this rule for the purposes of judicial review nor does 
    it extend the time within which a petition for judicial review may be 
    filed, and shall not postpone the effectiveness of such rule or action. 
    This action may not be challenged later in proceedings to enforce its 
    requirements. See section 307(b)(2).
    
    List of Subjects in 40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Intergovernmental relations, Nitrogen dioxide, Ozone, Volatile organic 
    compounds.
    
        Dated: May 14, 1997.
    Carol M. Browner,
    Administrator.
    
        40 CFR part 52 is amended as follows:
    
    PART 52--[AMENDED]
    
        1. The authority citation for part 52 continues to read as follows:
    
        Authority: 42 U.S.C. 7401-7671q.
    
    Subpart SS--Texas
    
        2. Section 52.2308 is amended by adding paragraph (e) to read as 
    follows:
    
    
    Sec. 52.2308  Area-wide nitrogen oxides (NOX) exemptions.
    
    * * * * *
        (e) The TNRCC submitted to EPA on March 6, 1996, a petition 
    requesting that the Houston/Galveston and Beaumont/Port Arthur ozone 
    nonattainment areas be granted an extension to a previously-granted 
    temporary exemption from the NOX control requirements of 
    sections 182(f) and 182(b) of the Clean Air Act. The temporary 
    exemption was granted on April 19, 1995. The current petition is based 
    on the need for more time to complete UAM to confirm the need for, and 
    the extent of, NOX controls required. On May 23, 1997, EPA 
    approved the State's request for an extension to the temporary 
    exemption. The temporary extension automatically expires on December 
    31, 1997, without further notice from EPA. Upon expiration of the 
    extension, the requirements pertaining to NOX RACT, NSR, I/
    M, general and transportation conformity will become applicable, except 
    that the NOX RACT compliance date shall be implemented as 
    expeditiously as practicable, but no later than May 31, 1999, unless 
    the State has received a contingent NOX exemption from the 
    EPA prior to that time.
    
    [FR Doc. 97-13655 Filed 5-22-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Effective Date:
5/23/1997
Published:
05/23/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-13655
Dates:
This action is effective as of May 23, 1997.
Pages:
28344-28349 (6 pages)
Docket Numbers:
TX76-1-7330, FRL-5828-3
PDF File:
97-13655.pdf
CFR: (1)
40 CFR 52.2308