[Federal Register Volume 64, Number 108 (Monday, June 7, 1999)]
[Proposed Rules]
[Pages 30276-30287]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14317]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[CA-227-151; FRL-6355-9]
Approval and Promulgation of State Implementation Plans;
California--South Coast
AGENCY: Environmental Protection Agency (EPA).
[[Page 30277]]
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: EPA is concluding the Public Consultative Process (PCP) on
mobile source emission reductions needed for attainment of the 1-hour
ozone national ambient air quality standard (NAAQS) in the Los Angeles-
South Coast Air Basin Area (South Coast). EPA is proposing to approve
the State's update to the state implementation plan (SIP) for ozone in
the South Coast to reflect the outcome of this process and the
implementation status of some of the control measures. EPA is also
proposing to approve the State's joint commitment with EPA to issue
regulations to eliminate the remaining SIP shortfall as determined
appropriate for each agency. EPA is proposing these actions under
provisions of the Clean Air Act (CAA) regarding EPA action on SIP
submittals, SIPs for NAAQS, and plan requirements for nonattainment
areas.
DATES: Written comments must be received by June 21, 1999. On June 9,
1999, from 1 pm to 4 pm, EPA will hold a public meeting in Los Angeles
to discuss the Public Consultative Process, continuing Federal and
State mobile source responsibilities and commitments, and future
revisions to the ozone SIP.
ADDRESSES: Comments should be sent to Dave Jesson, Air Planning Office
(AIR-2), Environmental Protection Agency, Region IX, 75 Hawthorne
Street, San Francisco, CA 94105-3901, or jesson.david@epa.gov.
The public meeting to discuss this proposed action will be held in
the Roybal Conference Room (Room 286) of the Roybal Federal Building,
255 East Temple Street, Los Angeles, CA.
The rulemaking docket for this notice is available for public
inspection at EPA's Region IX office during normal business hours. A
reasonable fee may be charged for copying parts of the docket.
Electronic availability: This document is also available as an
electronic file on EPA's Region 9 Web Page at http://www.epa.gov/
region09.
Copies of related materials are also available for inspection at
the following location: California Air Resources Board, 2020 L Street,
Sacramento, California.
FOR FURTHER INFORMATION CONTACT: Dave Jesson (415) 744-1288 or
jesson.david@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
A. 1994 Ozone SIP
This proposed action relates to the 1994 ozone SIP for the South
Coast Air Basin (``South Coast'') in California.1 In 1998,
the South Coast recorded 1-hour levels at or above the NAAQS for ozone
on 62 days, with a peak concentration of 0.244 parts per million (ppm),
twice the NAAQS.2 The area continues to have by far the
worst smog problem in the country.3
---------------------------------------------------------------------------
\1\ For a description of the boundaries of the Los Angeles-South
Coast Air Basin, see 40 CFR 81.305. The nonattainment area includes
all of Orange County and the more populated portions of Los Angeles,
San Bernardino, and Riverside Counties.
\2\ The 1-hour NAAQS for ozone is 0.12 ppm. Ground-level ozone
is formed when nitrogen oxides (NOX), volatile organic
compounds (VOCs), and oxygen react in the presence of sunlight,
generally at elevated temperatures. Strategies for reducing smog
typically require reductions in both VOC and NOX
emissions.
Ozone causes serious health problems by damaging lung tissue and
sensitizing the lungs to other irritants. When inhaled, even at very
low levels, ozone can cause acute respiratory problems; aggravate
asthma; cause temporary decreases in lung capacity of 15 to 20
percent in healthy adults, cause inflammation of lung tissue; lead
to hospital admissions and emergency room visits; and impair the
body's immune system defenses, making people more susceptible to
respiratory illnesses, including bronchitis and pneumonia. Children
are most at risk from exposure to ozone because they breathe more
air per pound of body weight than adults; their respiratory systems
are still developing and thus more susceptible to environmental
threats; and children exercise outdoors more than adults in the
high-ozone months of summer.
Direct exposure to NOX and VOCs also has adverse
public health consequences. Exposure to elevated NOX
concentrations can reduce breathing efficiency, increase lung and
airway irritation, and exacerbate symptoms of respiratory illness,
lung congestion, wheeze, and increased bronchitis in children. VOCs
include many toxic compounds (such as ()benzene), which can cause
respiratory, immunological, neurological, reproductive,
developmental, and mutagenic problems. Some VOCs have been
identified as probable or known human carcinogens.
\3\ According to preliminary information from EPA's AIRS
database, the areas with the highest peak 1-hour ozone concentration
for 1998 are: South Coast .244 ppm, Houston .230 ppm, Southeast
Desert (the area immediately to the east of the South Coast) .202
ppm, Ventura County .174 ppm, San Joaquin Valley .169 ppm, San Diego
County .164 ppm.
---------------------------------------------------------------------------
EPA approved the 1994 ozone SIP for the South Coast on January 8,
1997 (62 FR 1150-1187).4 In addition to aggressive State and
local control measures, the State's plan included seven ``Federal
measures,'' which the State believed EPA should adopt to control
national mobile sources. The State attributed to these measures the
following emission reductions in the South Coast in the year 2010: 109
tons per day (tpd) of NOX and 47 tpd of VOC.5
CARB calculated very much smaller emission reductions from the
``Federal measures'' in other ozone nonattainment areas of the State
(Ventura, Sacramento, Southeast Desert, San Joaquin, and San Diego).
---------------------------------------------------------------------------
\4\ The 1994 ozone SIP for the South Coast consists of two
plans: California's 1994 State Implementation Plan for Ozone, which
deals with the State's control measures, and the South Coast Air
Quality Management District's 1994 Air Quality Management Plan,
which includes all of the local control measures and other plan
elements. The State's plan is available electronically at the
California Air Resources Board's web site at www.arb.ca.gov/sip/
sip.htm.
\5\ The South Coast plan sometimes substitutes the term Reactive
Organic Gases (ROG) for VOC. These terms are essentially synonymous
and are used interchangeably throughout this document.
---------------------------------------------------------------------------
EPA did not agree that states have the authority to make these SIP
assignments, but the Agency agreed that the Federal government should
voluntarily help achieve emission reductions from sources beyond the
regulatory authority of the State, in view of the unique reduction
needs of the South Coast, the only ozone nonattainment area classified
as ``extreme'' under the 1990 CAA Amendments. With the assistance of
the State, EPA established a Public Consultative Process (PCP) to
identify future mobile source strategies to provide the remaining
reductions needed for attainment.
Both EPA and the California Air Resources Board (CARB) made
enforceable commitments to adopt additional controls to achieve
emission reductions determined to be appropriate at the end of the PCP.
40 CFR 52.238 and 40 CFR 52.220(c)(235)(I)(A)(I). EPA's final approval
of the 1994 ozone SIP for the South Coast included a projected schedule
for the PCP, with an initial meeting in July 1996 and a final meeting
in June 1997 (62 FR 1186).
B. Accomplishments in Reducing Emissions From Mobile Sources
1. Benefits of More Stringent Mobile Source Controls
After California adopted and submitted the South Coast 1994 ozone
SIP, CARB and EPA have undertaken stringent new controls for most
mobile source categories. It is important to note that these new mobile
source measures will bring multiple benefits not only to the South
Coast, but also to other areas of California and the nation.
First, the controls contribute emission reductions needed for
attainment of the Federal health-based NAAQS for ozone. Despite
significant progress over the past four decades, the South Coast
continues to have by far the worst ozone problem in the country. South
Coast's challenge in attaining the ozone NAAQS derives from the area's
meteorology and topography, on the one hand, and the area's large
population and industrial/commercial activity, on the other. As a
result, attainment of the ozone NAAQS in the South Coast requires
stringent
[[Page 30278]]
emissions reductions from every pollution source.
Second, the new mobile source standards also contribute reductions
of particulate matter (PM, or soot), both by reducing (in many cases)
emissions of primary particulate and by reducing gaseous PM precursors.
In the South Coast, NOX is one of the largest sources of PM,
and emissions of VOC and sulfur oxides also contribute to formation of
PM. The South Coast has one of the worst PM problems of urban areas in
the country.
Third, mobile sources are a contributor to urban air toxics levels.
For example, a number of adverse health effects have been associated
with exposure to diesel exhaust levels found in the ambient air.
Fourth, the new mobile source controls discussed below help achieve
parity of control, since many of the mobile source categories were
previously uncontrolled or undercontrolled compared to requirements
imposed on stationary industrial and commercial sources of pollution.
2. Overview of Federal Measures
The discussion below gives a brief overview of the State's
``assignments'' to EPA, followed by a description of promulgated or
pending Federal controls.6 Additional information on EPA's
national controls may be found at EPA's mobile source homepage
(www.epa.gov/omswww). More details on California's own mobile source
programs may be found in section I.E.1, and at CARB's homepage
(www.arb.ca.gov/msprog).
---------------------------------------------------------------------------
\6\ Although EPA determined that the Federal assignments were
not an approvable portion of the 1994 ozone SIP, EPA has
nevertheless taken action to regulate most of these sources under
the authority provided in the CAA.
---------------------------------------------------------------------------
a. Heavy-Duty Onroad Vehicles. Measure M6 of California's 1994
ozone SIP calls for adoption by EPA of a national standard for heavy-
duty diesel vehicles. CARB assumed that the NOX standard
would be 2.0 grams per brake horsepower-hour (g/bhp-hr) and would be
implemented starting in 2004.
Both EPA and CARB have issued a 2.4 g/bhp-hr combined emission
standard for NOX and nonmethane hydrocarbons (NMHC) for
model year 2004 and later heavy-duty diesel engines used in trucks and
buses.7 The new standards represent a 50 percent reduction
in NOX from the 1998 and later model year NOX
standard. EPA and CARB settlement agreements with manufacturers of
heavy-duty vehicles and engines require early introduction of the 2004
engines beginning in October 2002. This settlement is discussed in
section I.B.2.h, below. Finally, for the remaining heavy-duty on-road
categories (i.e., the otto-cycle engines), EPA currently intends to
propose within the next 60 days a stringent NOX plus NMHC
emission standard effective in the 2004 model year. EPA expects to take
final action on this proposal by the end of 1999.
---------------------------------------------------------------------------
\7\ The standard also allows manufacturers the option of
certifying to a 2.5 g/bhp-hr NOX plus NMHC standard, with
a limit of 0.5 g/bhp-hr on NMHC.
---------------------------------------------------------------------------
b. Diesel Nonroad Engines. California's Measure M10 calls for
adoption by EPA of a national standard for off-road diesel equipment.
CARB proposed that the NOX emission standard would be 2.5 g/
bhp-hr and would be implemented starting in 2005.
From 1994 through 1998, EPA has issued standards for most
categories of nonroad diesel engines, covering diverse equipment
applications including farm tractors, bulldozers, road graders,
excavators, forklifts, logging equipment, and portable generators. The
standards are progressively phased in over the period 1996 through
2008, depending on engine type and size and the stringency of the
standard. The new controls will reduce emissions by as much as two-
thirds.
c. Industrial Equipment. Measure M12 provides for adoption by EPA
of a national standard for off-road equipment rated between 25 and 175
horsepower (hp), and fueled with gasoline or liquid petroleum gas
(LPG). CARB proposed that the standard would reduce NOX
emissions by at least 50 percent and hydrocarbon (HC) emissions by 75
percent.
In October 1998, CARB adopted new emission standards for spark-
ignition engines above 25 hp. These engines are used in forklifts,
airport ground service equipment, sweepers, generators, compressors,
and other industrial applications, as well as recreational equipment,
such as go-carts, all-terrain vehicles, and snowmobiles. The CARB
controls will reduce NOX and HC emissions by over 65 percent
from all spark-ignition engines in 2010.
On February 8, 1999, EPA issued a proposed finding under CAA
section 213(a) that large spark-ignition engines cause or contribute to
air pollution. If EPA finalizes this determination, EPA must propose
regulations for such engines by September 28, 2000, and EPA must issue
final regulations by September 28, 2001, in order to comply with a
consent decree.8 While it is not possible to estimate with
precision the emission reduction benefits from this rulemaking, the
standards might be comparable to CARB's, although the compliance
schedules may be different.
---------------------------------------------------------------------------
\8\ Under a June 9, 1998 modification to the September 23, 1993
Partial Consent Decree in Sierra Club v. Browner (D.D.C., No. 93-
0124 (NHJ)), EPA has until September 29, 2000 to make a final
determination that large gasoline engines do cause or contribute to
air pollution within the meaning of CAA section 213(a)(3).
---------------------------------------------------------------------------
d. Marine Vessels. Measure M13 assumes adoption of national and
international standards that will reduce NOX emissions from
new ocean-going marine engines by 30 percent. CARB assumed some ambient
air quality contributions from movement of the shipping channel further
from shore. Finally, M13 also assigns to EPA responsibility for issuing
standards for new marine diesel engines used in vessels operating
primarily in domestic waters, to reduce NOX emissions by at
least 65 percent.
On October 23, 1998, EPA issued final regulations for marine diesel
engines rated less than 37 kilowatts (50 hp). EPA issued proposed
regulations for new compression ignition (CI) marine engines rated at
or above 37 kilowatts on December 11, 1998. Under the terms of a
consent decree, EPA must issue the final regulations by November 23,
1999.9 These regulations will apply to new engines used for
propulsion and auxiliary power on commercial vessels in a variety of
marine applications, including fishing boats, tug and towboats,
dredgers, coastal cargo vessels, and ocean-going vessels. The proposed
regulations, if finalized, would apply NOX limits that will
reduce emissions nationally by approximately one-third.10
---------------------------------------------------------------------------
\9\ Under an October 6, 1997 modification to the September 23,
1993 Partial Consent Decree in Sierra Club v. Browner (D.D.C., No.
93-0124 (NHJ)), EPA has until November 23, 1999, to take final
action on the EPA's marine vessel regulations, proposed in August
29, 1997 and supplemented with a December 11, 1998 proposal. Under a
November 30, 1998 modification to the same consent decree, EPA has
until November 23, 1999 to issue a supplemental proposal for
recreational diesel-fueled marine engines and until October 31, 2000
to take final action on this supplemental proposal.
\10\ The long life span of these engines delays the full
benefits of the regulations. EPA's estimate of national emission
inventory impacts is a 10 percent decrease in 2010, 28 percent in
2020, and 34 percent in 2030.
---------------------------------------------------------------------------
In addition, the International Maritime Organization (IMO) has
adopted emission limits for all marine diesel engines rated above 130
kilowatts (kw) ocean-going vessels. These limits are contained in
Regulation 13 of Annex VI of the International Convention on the
Prevention of Pollution from Ships (MARPOL), which was adopted at
Diplomatic Conference on September 26, 1997. The Annex will enter into
[[Page 30279]]
force, and the NOX limits will be enforceable, twelve months
after fifteen countries, the combined merchant fleets of which
constitute not less than fifty per cent of the gross tonnage of the
world's merchant shipping, have ratified it. Because this may take
several years, Regulation 13 was designed to ensure that benefits
associated with the NOX limits begin to accrue as early as
possible. Specifically, the Annex VI NOX limits will apply
to any new marine diesel engines installed on a ship constructed on or
after January 1, 2000, and to any marine diesel engine that undergoes a
major conversion 11 on or after January 1, 2000. By ensuring
that the NOX limits will be enforceable back to these
engines and vessels once the Annex goes into force, ship owners and
engine manufacturers are expected to comply with the requirements
beginning January 1, 2000. Nevertheless, due to the very long lives of
these engines, the full benefits of the MARPOL standards may not be
realized until 2030. For this reason, and because many vessels serving
the Ports of Long Beach and Los Angeles already meet the Annex VI
standards, EPA and CARB expect that the MARPOL Annex VI NOX
limits will only contribute minimal SIP reductions in the South Coast
by 2010. More meaningful reductions would be achieved by a further
strengthening of the MARPOL NOX limits, and the 1997
Conference adopted a resolution that would permit review of those
limits at five year intervals after the entry into force of the Annex.
This may not happen for several years, however, and it may be necessary
to find a way to encourage the IMO to review these important emission
limits before that time.
---------------------------------------------------------------------------
\11\ ``Major conversion'' is defined in Regulation 13 of Annex
VI as meaning an engine that is replaced by a new engine built on or
after January 1, 2000; is substantially modified; or whose maximum
continuous rating is increased by more than 10%.
---------------------------------------------------------------------------
Under the PCP, EPA has held a series of stakeholder meetings to
discuss strategies to reduce pollution associated with the marine
vessel sector. Three workgroups were formed to focus on deep sea
vessels, harborcraft, and port infrastructure.
Because of questions regarding the costs and the benefits of moving
the shipping channel, members of the deep sea vessel workgroup signed
an MOA to fund a $400,000 tracer study in 1997 to compare onshore
emissions under the current and proposed alternative shipping channel.
Participants include EPA, CARB, SCAQMD, Navy, the shipping industry,
and the ports. This complex study has not yet been finalized. The
working group is also reviewing draft results from a study contracted
by EPA to assess the benefits of future emission standards and
alternative strategies, including strategies to reduce ship speed and,
as a consequence, NOX emissions from the vessels. Finally,
CARB is leading a technical workgroup tasked with evaluating technical
issues associated with two alternative operational strategies for
ocean-going vessels, and issuing a report by the end of 1999.
The harborcraft workgroup has explored the possibility of an MOU,
under which the major tug operators might agree to a voluntary 20
percent reduction in NOX emissions. In 1997 EPA provided
$350,000 to the SCAQMD to help fund a tug retrofit demonstration
project. The project demonstrated the feasibility of a low-
NOX diesel engine capable of emitting at or below 5.5 g/bhp-
hr. Retrofits such as this may be subsidized under the Carl Moyer
Memorial Air Quality Standards Attainment Program, a $25 million clean
air measure enacted by the State of California in 1998. The State also
will receive $20 million in fines as a result of the settlement with
heavy-duty engine manufacturers for excess (off-cycle) emissions; some
of these funds may also be directed toward subsidies for cleaner
engines.
The Ports of Los Angeles and Long Beach have recently completed a
draft MOU on emission reductions from transportation infrastructure
improvements at the ports. These improvements have been accomplished in
recent years or will be completed over the next several years, and they
were generally not assumed in the 1994 ozone SIP. The port
modernizations will typically reduce truck emissions following
extension of the rail lines to the docks. Other infrastructure
improvements include road/rail grade separation projects, improved
navigational channels, and the Alameda Transportation Corridor Project.
e. Locomotives. Measure M14 assumes a two-thirds reduction in
locomotive NOX emissions by 2010 from the combination of
national locomotive standards and a clean locomotive fleet program in
the South Coast.
On April 16, 1998, EPA issued regulations for new and
remanufactured locomotives originally manufactured after 1972. The
regulations take effect in 2000 and will be fully phased in by 2005.
When full benefits from the standards are realized, the new standards
are expected to reduce NOX emissions by two-thirds and HC
and PM emissions by 50 percent. In order to accelerate benefits and
thereby achieve the SIP's 2010 emission reduction targets, California
and Class I freight railroads operating in the South Coast (i.e., Union
Pacific and Burlington Northern/Santa Fe) entered into an agreement for
a railroad fleet average emissions program (Memorandum of Mutual
Understandings and Agreements, South Coast Locomotive Fleet Average
Emissions Program, July 1998). In a Statement of Principles jointly
signed with CARB and the Class I railroads on May 14, 1997, EPA has
reserved its authority, in the event that the agreement fails to attain
its identified emission reductions, to assure that the reductions
called for in the agreement are achieved from the railroad sector and/
or, if necessary, from other national transportation sources.
f. Aircraft. Measure M15 calls for EPA to adopt commercial aircraft
engine standards that are 30 percent more stringent than existing
standards for VOC and NOX emissions.
(1) Emission Standards
Due to the international nature of the aviation industry, the
International Civil Aviation Organization (ICAO) has been the forum for
establishing international commercial aircraft engine standards. On May
8, 1997, EPA issued regulations reflecting the most recent standards
adopted by the ICAO's Committee on Aviation Environmental Protection
(CAEP). While these standards represent a 20 percent reduction from the
previous ICAO limits for NOX issued in 1981, no additional
emission reductions are anticipated, since virtually all new commercial
aircraft already are equipped with engines meeting the ICAO standards.
ICAO is not expected to issue new standards until early 2001.
(2) Voluntary Agreement To Reduce Emissions From Ground Service
Equipment (GSE)
EPA, CARB, SCAQMD, the Air Transport Association (ATA) and its
member airlines, the Federal Aviation Administration (FAA), local
commercial airports, environmental groups, and other stakeholders have
met during the Public Consultative Process to identify ways to achieve
additional reductions from the commercial aviation community. ATA is
drafting an MOU to achieve these reductions at the five major
commercial airports in the South Coast through use of cleaner GSE than
otherwise required by applicable emission standards. When implemented,
the MOU would yield small but important emission reductions through
options including increased fleet turnover, greater use of engines
employing alternative fuels, and electrification.
[[Page 30280]]
(3) Other Voluntary Initiatives
On March 24, 1998, EPA and FAA signed an agreement to coordinate
environmental matters regarding aviation. Among other measures, EPA and
FAA agreed to develop a voluntary engine emission kit retrofit program
and encourage the adoption of the voluntary program by the aviation
community. Since the execution of the agreement, the focus of the
voluntary process has broadened to consider a wider range of possible
options for emission reductions from aircraft and at airports. The EPA-
FAA agreement includes the following provision: ``If the voluntary
program is not successful, the parties agree to consider other
mechanisms within the authorities of the respective agencies to achieve
implementation of retrofit technologies in its fleet.''
ICAO's CAEP has also established an Emissions Technical Issues
Working Group with subgroups to develop: (1) best operating practices
to reduce emissions from aircraft, GSE, and auxiliary power units
(APUs); (2) market-based options (caps, charges, etc.) to provide
incentives for further reductions; and (3) approaches to secure air
quality benefits from improved air traffic management and airport
planning.
Beginning in 1998, EPA, FAA, and Department of Defense have been
working with industry and environmental groups in this country to
reduce pollution levels by means of advanced air traffic management
systems and related technologies.
EPA, SCAQMD, and the City of Los Angeles have worked with the
Budget rental car agency to establish at LAX in December 1998 the first
electric vehicle rental options in the country. Through cooperative
efforts with the SCAQMD and clean-fuel stakeholders, LAX and other
airports in the area have established other important programs for use
of clean alternative fuels in shuttles and delivery vehicles.
EPA has provided grants to support the Clean Airport Partnership.
Among other activities, the partnership holds national airport summit
meetings to find ways to reconcile airport growth and environmental
progress.
(4) Research to Develop Cleaner Aircraft Engines
In the fall of 1998, EPA and the National Aeronautics and Space
Administration (NASA) signed an MOA to formalize working agreements on
aeronautical research and technology. NASA is continuing to explore the
potential for additional emission reductions that could be achieved
from technological improvements in the design of new and rebuilt
commercial aircraft engines.
g. Marine Pleasurecraft. Measure M16 assumes that EPA will issue
national standards to reduce HC emissions from marine pleasurecraft by
75 percent.
EPA has issued standards for recreational marine 2-stroke outboard
engines and personal watercraft (such as jet skis), effective July
1996. The standards are phased in over a 9-year period to achieve a 75
percent reduction in HC. EPA has begun rulemaking to set emission
limits for recreational 4-stroke sterndrive and inboard engines. These
rules, if finalized, would establish standards for both gasoline and
diesel recreational marine engines. However, the final implementation
schedule for any such standards may not allow for rapid enough fleet
turnover to accomplish all of the remaining 2 tpd of ROG emission
reductions targeted by M16.
h. Additional Reductions beyond the Federal Assignments.
(1) Heavy-Duty Diesel Off-Cycle Settlement
In late 1998, EPA and CARB announced settlements of enforcement
cases against manufacturers of heavy-duty diesel engines.12
Among the settlement provisions were agreements by the manufacturers to
introduce nationwide in October 2002, rather than 2004, engines meeting
the 2.4 g/bhp-hr combined NOX and NMHC standard, discussed
in section I.B.2.a., above. CARB assumes that 25 percent of vehicle
miles traveled (VMT) by heavy-duty diesel vehicles in the South Coast
in 2010 will be from out-of-state vehicles. As a result, the early
introduction of trucks meeting the new national standard will
contribute emission reductions toward attainment of the ozone standard.
---------------------------------------------------------------------------
\12\ On October 22, 1998, EPA and CARB announced settlement of
enforcement cases brought against Caterpillar, Cummins, Detroit
Diesel, Volvo, Mack Trucks/Renault and Navistar. These manufacturers
had equipped their engines with defeat devices that advanced the
fuel injection timing when vehicles were driven at steady highway
speeds, thereby improving fuel economy at the expense of increased
NOX emissions. The settlement also involves civil
penalties and agreements by the manufacturers to provide over $100
million in funding for environmental projects either identified in
the consent decrees or awarded to project applicants. California
will receive 25 percent of the penalty funds and 20 percent of the
project funds collected in the joint enforcement actions.
---------------------------------------------------------------------------
(2) National Tier 2 Motor Vehicle Standards
In November 1998, CARB adopted more stringent standards for light-
duty cars and trucks and medium-duty vehicles up to 14,000 lbs. gross
vehicle weight, as part of California's Low-Emission Vehicle (LEV)
regulations. These standards, known as LEV II, were primarily intended
to reduce NOX emissions, especially from sport utility
vehicles and light trucks. EPA is initiating rulemaking to promulgate
new ``Tier 2'' national vehicle standards that are comparable to
California's LEV II program. If finalized, EPA's standards would
provide benefits in the South Coast not anticipated in the 1994 ozone
SIP, by reducing the emissions of vehicles that have migrated into the
area from out of the state.13 The ozone SIP assumes that
230,000 vehicles in the categories affected by the Tier 2 standards
will travel 7.8 million miles in the South Coast in 2010.
---------------------------------------------------------------------------
\13\ Some additional benefits may be associated with future EPA
regulations restricting sulfur in gasoline, since the cleaner
gasoline would increase the durability of catalytic converters.
---------------------------------------------------------------------------
C. Remaining Shortfall
As shown in Table 1 below, CARB and EPA currently estimate that
final or pending Federal measures will achieve approximately the
following emission reductions in the South Coast in 2010: 94 tpd
NOX and 39 tpd VOC. This leaves a projected shortfall of
approximately 15 tpd NOX and 8 tpd VOC in the attainment
demonstration for the South Coast, based on emission factors, models,
and inventories consistent with those used in the 1994 ozone SIP.
Status of Federal Measures
[Tons per Day in the South Coast in 2010]
----------------------------------------------------------------------------------------------------------------
Assignment Achieved/pending
Measure ---------------------------------------------------------------
NOX ROG NOX ROG
----------------------------------------------------------------------------------------------------------------
M6--HD Diesel Onroad Vehicles................... 16 2 16 2
[[Page 30281]]
M10--Diesel Nonroad............................. 44 5 41 9
M12--Industrial Equipment \1\................... 13 25 6 18
M13--Marine Vessels............................. 9 .............. 2 ..............
M14--Locomotives................................ 23 .............. 23 ..............
M15--Aircraft................................... 4 3 .............. ..............
M16--Pleasure Craft............................. .............. 12 .............. 10
---------------------------------------------------------------
Total....................................... 109 47 88 39
National Tier 2 Standards \1\................... .............. .............. 4 ..............
Heavy-Duty Settlement........................... .............. .............. 2 ..............
===============================================================
Grand Total................................. 109 47 94 39
---------------------------------------------------------------
Shortfall................................... .............. .............. 15 8
----------------------------------------------------------------------------------------------------------------
\1\ The rulemakings for these standards have not been completed and, therefore, the reduction numbers are
projections.
Much of the shortfall is due to the State's expectation that EPA
would issue stringent standards for commercial aircraft engines and
ocean-going vessels, and that turnover in these engines would be rapid
enough to achieve substantial reductions by 2010. As noted above,
emissions standards for these categories have been established
internationally through organizations within the United Nations.
Unfortunately, the existing standards set by ICAO and the IMO will not
achieve significant reductions by 2010 from commercial aircraft and
ocean-going vessels, particularly due to the long lifespan of these
engines.
There are also small shortfalls associated with M10 (Diesel
Nonroad) and M16 (Pleasurecraft), and expected from forthcoming EPA
regulations for M12 (Industrial Equipment). This would result if the
national regulations establish standards or compliance schedules less
aggressive than CARB had assumed.
D. EPA Proposed Consent Decree and Settlement Agreement
When EPA took final action to approve the 1994 ozone SIP, EPA
expected to complete the PCP in June 1997. In lieu of approving the
Federal measure assignments, the final action approving the SIP
included commitments by EPA to undertake rulemaking at the PCP
conclusion to issue any controls that were determined to be appropriate
for EPA. EPA approved California's commitment to take the following
actions as appropriate after the PCP: (1) to revise the South Coast
attainment demonstration by December 31, 1997, to reflect the results
of the PCP; and (2) to issue regulations by December 31, 1999, to
accomplish those emission reductions determined to be appropriate for
CARB.
Difficult issues associated with aviation and shipping strategies
have required more time to resolve than EPA initially anticipated, and
EPA has not yet concluded the PCP. In 1998, the Coalition for Clean
Air, Natural Resources Defense Council, and Communities for a Better
Environment amended a complaint against EPA originally filed in 1997
(Coalition for Clean Air, et al. vs. SCAQMD, CARB, and USEPA, No. CV
97-6916 HLH (C.D. CA.)). The amended complaint sought relief against
EPA for failing to adopt Measure M13 (Marine Vessels) and Measure M15
(Aircraft) or substitutes with greater or equivalent emissions, failing
to conclude the PCP in June 1997, and failing to determine the
respective obligations of EPA and the State as to the additional
emission reductions needed.
Under a proposed consent decree with the environmental plaintiffs,
EPA has now committed to conclude the PCP. The proposed settlement was
signed by all parties and lodged with the Court on November 13, 1998,
in the form of a stipulation, consent decree, and settlement agreement.
EPA issued a notice of the pending settlement on December 9, 1998 (63
FR 67879), consistent with CAA section 113(g). Parties filed a motion
to enter the agreement on May 10, 1999.
1. Consent Decree
The proposed consent decree includes the following EPA commitments:
1. EPA shall, pursuant to the Clean Air Act and 40 CFR 52.238,
conclude the South Coast mobile source public consultative process by
determining by July 1, 1999:
a. What, if any, Volatile Organic Compounds (``VOC'') and Nitrogen
Oxides (``NOX'') mobile source controls, including
associated emissions reductions, are needed to attain the 1-hour ozone
National Ambient Air Quality Standard (``NAAQS'') in the South Coast
Air Basin by no later than November 15, 2010 and are appropriate for
EPA to promulgate;
b. EPA's rulemaking schedule for the controls identified in
subparagraph 1(a). In determining such schedule, EPA will attempt to
propose as many such measures as feasible by no later than December 31,
2000 and to promulgate final measures by no later than December 31,
2001;
c. What, if any, VOC and NOX mobile source emission
reductions are needed to attain the 1-hour ozone NAAQS in the South
Coast Air Basin by no later than November 15, 2010 and are appropriate
for the State of California to achieve through enforceable measures;
and
d. The schedule for the State to submit to EPA a revised
demonstration to attain the 1-hour NAAQS in the South Coast Air Basin
by no later than November 15, 2010.
2. 40 CFR 52.220(c)(235)(I)(A)(1) contains a State commitment to
submit control measures to achieve emission reductions determined to be
appropriate, if any, by December 31, 1999. However, prior to July 1,
1999, EPA will discuss with the State whether the deadline in such
commitment is still appropriate.
EPA is proposing to take the actions described in Section II of
this document to comply with these provisions in the pending consent
decree.
[[Page 30282]]
2. Settlement Agreement
Accompanying the consent decree is a proposed settlement agreement,
in which EPA agrees to undertake various additional activities as part
of its efforts to ensure that the Federal government does its share in
helping to solve the ozone problem in the South Coast. The proposed
settlement agreement commits EPA to the following specific actions. The
terms of the settlement agreement are reproduced for informational
purposes and are not proposed for public comment, although EPA does
invite suggestions from the public on the best ways for the Agency to
implement its commitments.
a. Federal Agencies. EPA Region 9 will, in consultation with the
General Services Administration (GSA) and the Department of Energy
(DOE), promote the purchase and use of low-emitting motor vehicles and
other emission reduction and pollution prevention activities by Federal
agencies located in the South Coast. With respect to the purchase of
low-emitting motor vehicles, EPA will, in consultation and coordination
with GSA and DOE, promote efforts of Federal agencies located in the
South Coast to meet or exceed the alternative-fuel vehicle purchase
requirements contained in the Energy Policy and Conservation Act and
Executive Order 13031, including the requirements that, starting on
July 1, 1999 and thereafter, at least 75 percent of the new vehicle
purchases by the Federal agencies for use in the South Coast be
alternative-fueled vehicles and that all Federal agencies located in
the South Coast take steps to maximize the emission reductions achieved
under this program.
b. Aircraft, Airport, Ocean-Going Vessels, and Ports. EPA will
continue to provide forums and staff and management support for
negotiating agreements to achieve feasible reductions in the South
Coast from these categories, through operational strategies. EPA will
also continue to work with lead Federal agencies negotiating
international controls on aircraft engines and ocean-going vessels to
achieve the greatest feasible emissions reduction benefits. Whenever
possible, EPA will involve CARB, SCAQMD, and the environmental groups
in these activities. EPA will provide to the public information on
actions taken by the airline industry pursuant to the FAA-EPA
agreement, and the emissions reductions achieved by these actions, and
will involve the public, as feasible and appropriate, in the
development and implementation of future agreements on voluntary
retrofit programs and other voluntary programs. Within 90 days of
issuing the final rulemaking on marine vessel engines, EPA will
complete an assessment of the feasibility of establishing incentive
programs designed to increase the number of lower emitting engines in
fleets which operate exclusively in the South Coast.
c. National Standards for Onroad Heavy-Duty Diesel-Cycle Engines.
During the public comment period following issuance of the proposed
1999 review to reassess the appropriateness of the year 2004 HDDV
standards, EPA will hold a public meeting in the Los Angeles area to
present information on the impacts of the HDDV standards on the South
Coast and any measures available and consistent with the Clean Air Act
to assure the maximum emission reductions from the HDDV rule in the
South Coast. Information from this meeting and other outreach efforts
relating to the South Coast will be considered in the final
determination made pursuant to the 1999 review.
d. Retrofit requirements for onroad and nonroad vehicles and
engines in the South Coast Air Basin. EPA will provide technical
assistance to CARB to use the State's authority to require retrofitting
of used nonroad engines. If CARB decides to provide incentives to
stimulate retrofit rather than to require it, EPA will provide
assistance in the State's efforts to comply with applicable Clean Air
Act requirements for approval and credit of such measures.
e. Concentration of Cleaner Preempted Engines (Farm and
Construction Equipment <175hp) in="" the="" south="" coast.="" epa="" will="" undertake="" a="" study="" of="" the="" benefits="" and="" costs="" and="" legality="" of="" a="" federal="" program,="" perhaps="" particularly="" in="" areas="" classified="" as="" extreme="" and="" severe="" for="" ozone,="" that="" would="" provide="" incentives="" for="" manufacturers="" to="" increase="" sales="" and="" use="" of="" equipment="" powered="" by="" engines="" certified="" and="" produced="" to="" meet="" the="" most="" stringent="" exhaust="" emission="" standards="" then="" applicable,="" e.g.,="" through="" increased="" fleet="" turnover.="" epa="" intends="" to="" complete="" the="" study="" by="" september="" 1,="" 1999.="" the="" study="" will="" estimate="" as="" precisely="" as="" possible="" the="" emission="" reduction="" benefits,="" anticipated="" compliance="" costs="" and="" other="" impacts="" (including="" energy="" and="" safety="" considerations)="" on="" vehicle/engine="" manufacturers="" and="" owners,="" and="" emissions="" and="" air="" quality="" impacts="" both="" within="" and="" outside="" the="" area(s)="" of="" concentration,="" including="" a="" specific="" analysis="" for="" the="" south="" coast.="" if="" epa="" finds="" that="" the="" incentive="" approach="" is="" feasible,="" needed,="" and="" does="" not="" impede="" progress="" in="" other="" parts="" of="" the="" country,="" epa="" intends="" to="" undertake="" expeditious="" actions="" to="" implement="" the="" program,="" with="" the="" goal="" of="" ensuring="" emission="" reduction="" benefits="" at="" the="" earliest="" feasible="" date.="" e.="" state="" update="" to="" the="" 1994="" ozone="" sip="" for="" the="" south="" coast="" on="" may="" 20,="" 1999,="" carb="" submitted="" a="" sip="" update="" consisting="" of="" the="" following="" documents:="" (1)="" an="" update="" to="" the="" south="" coast="" ozone="" sip,="" reporting="" on="" implementation="" of="" carb="" and="" epa="" control="" measures,="" which="" california="" assumed="" in="" the="" 1994="" ozone="" sip="" for="" the="" south="" coast;="" and="" (2)="" executive="" order="" g-99-037="" committing="" the="" state:="" (a)="" to="" continue="" working="" with="" epa="" to="" achieve="" the="" emission="" reduction="" commitments="" in="" the="" sip="" for="" federal="" measures;="" (b)="" to="" adopt="" by="" december="" 31,="" 2000,="" and="" submit="" as="" a="" sip="" revision,="" a="" revised="" attainment="" demonstration="" for="" the="" federal="" 1-hour="" ozone="" standard="" in="" the="" south="" coast;="" and="" (c)="" to="" adopt="" by="" december="" 31,="" 2001,="" control="" measures="" sufficient="" to="" achieve="" any="" additional="" emission="" reductions="" which="" are="" determined="" to="" be="" appropriate="" for="" carb.="" epa="" found="" the="" submittal="" to="" be="" complete="" on="" may="" 20,="">14
---------------------------------------------------------------------------
\14\ EPA adopted the completeness criteria on February 16, 1990
(55 FR 5830) and, pursuant to section 110(k)(1)(A) of the CAA,
revised the criteria on August 26, 1991 (56 FR 42216).
---------------------------------------------------------------------------
1. Report on the Status of CARB Adoption of Control Measures in the
1994 Ozone SIP Submittal
CARB's report reviews the CARB and EPA accomplishments over the
past four years in adopting controls which CARB committed to adopt or
``assigned'' to the Federal government. The report also provides
references to adopted CARB regulations and associated emission
reductions which fulfill the majority of CARB's near-term obligations
under the 1994 ozone plan. The report uses the 1994 ozone SIP's
currency, i.e., the emissions factors and emissions inventories
consistent with those used in the 1994 ozone SIP, rather than improved
inventories. The report also uses the term Reactive Organic Gases (ROG)
in lieu of the Federal terminology, VOC.
The CARB update includes a table showing the status of CARB
measures in the 1994 ozone SIP (``CARB Progress toward 1994 SIP
Commitments'').
[[Page 30283]]
CARB Progress Toward 1994 SIP Commitments
[Tons per day in South Coast in 2010]
--------------------------------------------------------------------------------------------------------------------------------------------------------
1994 SIP commitment Adopted or planned (Shortfall)
-------------------------------- rule -------------------------------
Source category and CARB measure ----------------------
ROG NOX ROG NOX ROG NOX
--------------------------------------------------------------------------------------------------------------------------------------------------------
Passenger Cars and Light-Duty Trucks:
M1: Car Scrappage............................................. 14 11 0 0 (14) (11)
M2: Advanced Technology....................................... 10 15 7 25 (3) 10
Medium- and Heavy-Duty Gasoline Trucks:
M3: Accelerated emission standard............................. 3 33 3 27 0 (6)
M8: Emission standard......................................... 0 3 0 3 0 0
Heavy-Duty Diesel Trucks & Buses:
M4: Cleaner engine incentives................................. 0 1 0 1 0 0
M5: 2004 std plus early reductions............................ 5 56 5 51 0 (5)
New: Off-cycle diesel settlement.............................. .............. .............. 0 5 0 5
Off-Road Diesel Equipment:
M9: Emission standard--adopt 1999............................. 3 34 3 34 0 0
Off-Road Gasoline and LPG Equipment:
M11: Emission standard........................................ 23 12 25 7 2 (5)
Off-Road Motorcycles:
New: Emission standard........................................ .............. .............. 0.8 0.3 0.8 0.3
Marine Pleasurecraft
New: Emission standard beyond M16............................. .............. .............. 4 0 4 0
Cleaner-Burning Gasoline:
New: Combustion chamber deposits.............................. .............. .............. 0 10 0 10
Small Off-Road Engines:
Baseline: Changes to emission std............................. .............. .............. (2) 0 (2) 0
Consumer Products:
CP2: Mid-term measures........................................ 36 0 9 0 (27) 0
Aerosol Paints:
CP3: Aerosol paints standards................................. 7 0 5 0 (2) 0
CARB Settlement Commitments:
New: Measures adopted by 12/99................................ .............. .............. 12 0 12 0
New: Measures adopted by 12/00................................ .............. .............. 14 2 14 2
New: Measures adopted by 12/01................................ .............. .............. 16 0 16 0
-------------------------------------------------------------------------------------
Total for Measures due by 12/01........................... 101 165 101 165.3 0 0
.8
--------------------------------------------------------------------------------------------------------------------------------------------------------
The following discussion summarizes the State's update with respect
to each CARB and EPA control measure identified in the State's 1994
submittal.
a. Light- and Medium-Duty Vehicles (State Measure M1--Accelerated
Retirement of Light-Duty Vehicles, and State Measure M2--Improved
Control Technology for Light-Duty Vehicles) Measure M1 called for
accelerated retirement of cars and light trucks. CARB expects to need
to pursue alternatives to the scrap program because of the lack of a
funding mechanism. Measure M2 provided for additional emission
reductions from cars and light trucks through more stringent emission
standards beginning in 2004. The Low-Emission Vehicle II (LEV II)
regulations implementing M-2 were adopted in November 1998 and achieved
52 tpd of emission reductions: 7 tpd of ROG and 45 tpd of
NOX. LEV II will provide 30 tpd of NOX reductions
beyond the M-2 commitment, and the State is applying 20 tpd toward the
long-term mobile source measure for advanced control technologies or
techniques (known as the ``Black Box'').15 LEV II also left
a 3 tpd ROG shortfall which must be made up through new measures.
---------------------------------------------------------------------------
\15\ CAA section 182(e)(5) authorizes EPA to approve long-term,
conceptual measures that rely on new technologies as part of the
attainment demonstration for the South Coast, the only ozone
nonattainment area classified as ``extreme'' under the CAA.
---------------------------------------------------------------------------
In 1998, CARB adopted a new measure calling for tighter emission
standards for on-road motorcycles to take effect beginning in 2000. The
emission reductions associated with this measure were not included in
the SIP, and provide additional reductions toward the CARB's overall
commitments.
b. Medium- and Heavy-Duty Gasoline Trucks (State Measure M3--
Accelerated Ultra-Low Emitting Vehicle Requirement for Medium-Duty
Vehicles; State Measure M8--Heavy-Duty Gasoline Vehicles; Lower
Emission Standards in California). Measure M3 was adopted in 1995, but
a calculation error in the 1994 SIP resulted in a shortfall in the
associated emission reductions even though the regulation achieved the
performance standard specified in the SIP. Measure M8 for heavy-duty
gasoline trucks was also adopted in 1995, and achieved the performance
standard in the SIP.
c. Heavy-Duty Trucks and Buses (State Measure M4--Heavy-Duty Diesel
Vehicles; Early Introduction of 2.0 g/
[[Page 30284]]
bhp-hr NOX Engines in Fleets through Incentives; State
Measure M5--Heavy-Duty Diesel Vehicles; additional NOX
Reductions in California; State Measure M7--Accelerated Retirement of
Heavy-Duty Vehicles). CARB is currently implementing M4 through the
Carl Moyer program and the State is also working to secure continuing
funding for the Carl Moyer program. Measure M5 required a California
emission standard for heavy-duty diesel trucks and buses that would
parallel national standards to be implemented in 2004. California
adopted the national standard in 1998, achieving over 90 percent of the
M5 commitment. This measure also assumed that California would
implement the new national standard for diesel trucks and buses two
years early (in 2002). However, based upon further analysis, CARB
concluded that a California-only standard could harm the state's
economy without providing any emission benefits if truck operators
simply based their operations out of state. The 5 tpd of emission
benefits associated with an early California-only standard will be
achieved through the diesel off-cycle settlement, discussed above in
section I.B.2.h.
Measure M7 in the original 1994 SIP was replaced with measure M-17
in 1998. Measure M-17 is a long-term commitment to reduce emissions
from heavy-duty diesel engines through in-use compliance programs and
possibly further incentives.
d. Off-Road Equipment (State Measure M9--Off-Road Diesel
Equipment--2.5 g/bhp-hr NOX Standard; State Measure M11--
Industrial Equipment, Gas & LPG). CARB is currently developing a
regulation to implement measure M9 to reduce emissions from off-road
diesel equipment. Under the terms of a 1996 agreement between CARB,
EPA, and the engine manufacturers, emission standards for off-road
diesel engines will phase-in beginning in 2001--four years earlier than
expected in the SIP. This measure is in development and will be
considered by the Board in 1999.
Under measure M11, CARB adopted new emission standards for off-road
equipment (like forklifts) powered by spark-ignition engines. The
adopted regulation provides 2 additional tpd of ROG emissions, but
falls 5 tpd short of the NOX commitment.
In 1998, CARB modified existing emission standards for small off-
road engines, such as those used in lawn and garden equipment, to
address technical feasibility concerns and higher than expected
deterioration in emission performance. The modified regulations focus
on reducing deterioration. However, because deterioration emissions
were not included in the 1994 SIP inventory, there is no credit in 1994
SIP currency for these reductions. The 2 tpd shortfall resulting from
the regulatory changes must be made up through other strategies.
In 1998, CARB also adopted new emission standards for marine
pleasurecraft, such as outboard motors, personal watercraft, and small
jet boats. In the process of improving the emission inventory, CARB
found that emissions from marine pleasurecraft were much higher than
assumed in the 1994 SIP. The new emission standards will achieve
significant real emission reductions. However, because the marine
pleasurecraft inventory in the 1994 SIP is modest, the emission
reductions in SIP currency are relatively small. Nevertheless, the new
marine pleasurecraft standards provide additional reductions in 2010.
When the statewide SIP strategy is revised in 2000, CARB will update
the marine pleasurecraft inventory and take full credit for the
benefits of the new regulation.
e. Mobile Source Fuels. With the introduction of cleaner-burning
gasoline in 1996, gasoline refiners also introduced additives to reduce
combustion chamber deposits. The decrease in combustion chamber
deposits led to an unexpected additional decrease in NOX
emissions. In 1998, CARB adopted regulations to require the use of such
additives to ``lock in'' the NOX benefits already realized.
The emission benefits of this regulation will decrease over time,
providing 10 tpd of additional NOX reductions in the South
Coast in 2010.
f. Consumer Products and Aerosol Paints. The 1994 SIP called for 43
tpd of ROG reductions from consumer products and aerosol paints
measures to be adopted by 1997. Adopted measures thus far have achieved
14 tpd of emission reductions, leaving a shortfall of 29 tpd. The State
believes that additional reductions from consumer products are
achievable, but at a lower level of effectiveness than called for in
the SIP. As a result, CARB expects to look to other source categories
to provide supplemental emission reductions in the near-term, and re-
evaluate the appropriate level for long-term commitments for consumer
products in the next comprehensive SIP update in 2000.
g. State Actions to Eliminate Near-Term Emissions Reduction
Shortfall. The State's SIP update acknowledges that the total near-term
reductions achieved fall short of CARB's SIP goal. In SIP currency,
CARB has a near-term shortfall of 42 tpd of ROG and 2 tpd of
NOX. The State presents the following description of its
activities in the future to address this shortfall:
We recognize our responsibility to eliminate these deficits so
that the ozone standard can be attained by the statutory deadline.
Over the next three years, ARB has agreed to adopt and implement
measures to eliminate the near-term shortfall. Toward that end, we
are planning to develop and propose a number of new regulatory
measures in 1999 and 2000, and to take further steps to address the
deficit.
ARB staff has pledged to consider, develop, and propose
regulations to reduce emissions associated with gasoline refueling,
revisit medium- and heavy-duty gasoline truck standards, reduce the
emission standard for heavy-duty buses, require the use of clean
diesel fuel in locomotives, adopt a suggested control measure for
architectural coatings, and pursue additional emission reductions
from consumer products. Additional or alternate measures may be
added or substituted so long as the aggregate emission reductions
are achieved.
EPA agrees with the State that this commitment reflects expeditious
action to achieve the reductions required in the 1994 ozone SIP.
h. Long-Term Measures. As discussed earlier, the SIP also commits
CARB to achieve 102 tpd of ROG and 30 tpd of NOX in the
long-term. The remaining long-term NOX commitment has been
reduced to 10 TPD because 20 TPD of the additional NOX
reductions from LEV II have been applied to the mobile source ``Black
Box.''
Among the long-term commitments is measure M17, a replacement
measure submitted to EPA in 1998 to substitute for measure M7,
accelerated retirement program for heavy-duty trucks. M17 relies on an
expanded in-use compliance program, which may include in-use
NOX testing plus supplementary incentives. The SIP submittal
identifies an adoption date of 2004, with implementation beginning in
2005. Under the terms of the State's settlement with the Natural
Resources Defense Council, Coalition for Clean Air, and Communities for
a Better Environment (Coalition for Clean Air, et al. vs. SCAQMD, CARB,
and USEPA, No. CV 97-6916 HLH (C.D. CA.)), CARB agreed to accelerate
the adoption of M17 to 2003, if technically feasible.
The remaining long-term commitments were not specifically addressed
in the lawsuit settlement. However, CARB will host a New Technologies
Symposium in October 1999 to explore technologies capable of achieving
zero and near-zero emissions, assess the feasibility of developing new
regulations based on the technologies, and preview CARB's latest
approaches
[[Page 30285]]
to making up the remaining SIP shortfalls.
2. CARB Review of Federal Actions That Contribute Emission Reductions
The State's report notes that EPA has made significant progress
toward reducing emissions from federal sources. The following section
summarizes the State's review of progress toward the Federal measures
for each source category.
a. Heavy-Duty Diesel Trucks and Buses. The State notes that EPA's
adoption of new national standards in 1997 achieved the Federal
emission reductions from heavy-duty diesel vehicles in Measure M6 of
the 1994 ozone SIP submittal. In addition, the State calculates an
additional 2 tpd of NOX emission reductions from the
settlement of the off-cycle enforcement action against diesel engine
manufacturers.
b. Off-Road Equipment. CARB states that EPA's 1998 national
standards for diesel engines used in off-road equipment implements
Measure M10 in the 1994 ozone SIP submittal. Under the terms of a 1996
agreement between CARB, EPA, and the engine manufacturers, emission
standards for off-road diesel engines will phase in beginning in 2001--
four years earlier than expected in the SIP. The adopted regulation
provides 4 tpd of ROG beyond the reductions assumed in the 1994 ozone
SIP submittal, but falls 3 tpd short in NOX reductions.
c. Marine Pleasurecraft. The State's report indicates that the 1994
ozone SIP submittal reflected EPA's original intent to control stern
drive engines, but EPA's 1995 emissions standards did not do so,
resulting in a shortfall of 2 tpd of ROG reductions compared to Measure
M16.
d. Locomotives. CARB concludes that EPA's stringent emission
standards for new and re-built locomotives, coupled with CARB's
Memorandum of Agreement with rail operators in the South Coast, are
together expected to achieve the full emission reductions from Measure
M14 in the 1994 ozone SIP submittal.
e. Marine Vessels. The State observes that marine vessels are among
the most challenging categories from which to obtain emission
reductions because emission standards are established through an
international process. CARB's report estimates that new IMO emission
standards that take effect in 2000 will provide 1.1 tpd of
NOX reductions. EPA's own emission standards for the captive
fleet of diesel marine engines provide an additional 0.5 TPD of
NOX reductions. Additional reductions of 7 TPD of
NOX would still need to be achieved to meet the target in
M13.
f. Aircraft. Regarding Measure M15, aircraft emission standards
have traditionally been set by ICAO. CARB states that, because EPA
preferred to work through the ICAO process to pursue aircraft engine
emission standards, the consultative process has focused on voluntary
strategies to reduce emissions from airport ground access
transportation and ground support equipment. EPA and FAA have also
convened a stakeholder process with state air agencies, airlines,
engine manufacturers, and other interested parties to try to develop a
national voluntary agreement for emission reductions from aircraft and
related sources. Since none of these approaches have been finalized,
there are no creditable emission reductions from aircraft or airports
yet.
3. CARB Recommendations for Near-Term Federal Initiatives
Based on EPA's completed rulemakings and initiatives that CARB
expects EPA to complete shortly, CARB concludes that the total
reductions fall short of the emission reductions called for from
Federal measures in the 1994 ozone SIP submittal by 8 tpd of ROG and 15
tpd of NOX. The State expresses its belief that new measures
under development or consideration by EPA, plus longer-term strategies,
offer the opportunity for significant additional emission reductions
from Federal sources to decrease or eliminate the remaining shortfall.
CARB observes that, in the near-term, EPA could develop various
strategies, which have the potential to help make up shortfalls. The
State identified the following possible Federal initiatives as under
development.
a. Light- and Medium-Duty Vehicles. CARB discusses potential Tier 2
standards for passenger cars and light trucks nationwide, which were
not anticipated in the 1994 SIP. The State already credits EPA with 4
tpd of NOX reduction in its shortfall analysis, and notes
that additional reductions might be achieved if the heavier sport-
utility vehicles are subject to an interim NOX standard in
the national program. In commenting on EPA's accompanying proposal to
limit sulfur in gasoline to levels currently required in California,
CARB notes that the sale of lower sulfur gasoline nationwide will
contribute to the success of the State's LEV II program by allowing
Californians to travel out of state without fear that dirtier gasoline
will poison the catalytic converter or degrade the emission control
system in their vehicles.
b. Heavy-Duty Gas Trucks. CARB notes that new national emission
standards for heavy-duty gasoline trucks might be issued in the near
future, providing additional benefits beyond CARB's M8 commitment for
reducing emissions from heavy-duty gasoline trucks.
c. Off-Road Spark-Ignition Equipment. The State discusses reduction
estimates from potential EPA regulations for off-road spark-ignition
engines. CARB estimates an emission reduction shortfall of 7 tpd ROG
and 7 tpd NOX, assuming that the regulations will be based
on California's standards but would be implemented in 2004 instead of
2001, due to EPA resource limitations.
d. Marine Pleasurecraft. CARB references national emission
standards for inboard engines used in marine pleasurecraft engines in
1999, with implementation beginning in 2004. CARB discusses the
possibility that in this rulemaking EPA may issue emissions standards
for recreational diesel marine engines, in the same timeframe as the
gasoline engines. The State believes that these sets of standards could
remedy the 2 tpd shortfall in ROG reductions that resulted from the
changes EPA made in its proposed marine pleasurecraft regulations when
the rules were finalized in 1995.
e. Marine Vessels. The State's update reports on the prospect of
final national emission standards for marine diesel engines. The State
discusses a technical workgroup that is evaluating technical issues
associated with potential operational strategies for deep sea marine
vessels (i.e., moving the shipping channel and/or speed reduction). The
working group expects to complete its technical assessment of the two
alternatives by the end of 1999. Assuming that an appropriate
operational strategy is selected in 2000, the State estimates that
implementation could begin in the 2000-2003 time frame depending on
which strategy is chosen. Additional time may be needed depending on
the level of coordination and involvement of other organizations such
as the U.S. Navy, U.S. Coast Guard, and IMO. CARB also encourages EPA
to work with the U.S. Coast Guard to encourage IMO to adopt more
stringent second tier standards earlier than currently scheduled.
f. Clean Diesel Fuel. CARB notes that EPA is beginning a process
that may lead to new nationwide specifications in 2000 for fuel used in
on-road vehicles and potentially off-road equipment as well. If
promulgated, the State assumed that the Federal requirements for low-
[[Page 30286]]
sulfur diesel fuel would result in lower emissions from vehicles,
trucks and locomotives that cross into California from other states.
g. Federal Incentives. The State indicates that Federal financial
incentives could support cost-effective programs that directly reduce
emissions by accelerating the move to cleaner engines in school and
transit buses, as well as mobile sources under federal control like
locomotives, farm and construction equipment, harborcraft, ships, and
aircraft. CARB believes that California's Carl Moyer program for heavy-
duty diesel engines provides a successful model. In partnership with
CARB and local districts, EPA could target incentives to accelerate the
replacement of the dirty engines that run for decades (20 to 40 years
or more in some cases) with much cleaner models that reduce ozone-
forming emissions (plus air toxics) at a relatively low cost. The State
believes that these types of incentives would be an ideal use for the
proposed $200 million Clean Air Partnership Fund. According to the
State, the Federal government could also take a stronger leadership
role in accelerating the turnover of its own vehicle fleet to cleaner
models, including expanded use of alternative-fueled vehicles.
4. CARB Recommendations for Longer-Term EPA Actions
CARB encourages EPA to evaluate the strategies described below for
technical feasibility, air quality benefits, and cost-effectiveness.
a. Heavy-Duty Diesel Vehicle Emission Standards. As part of the
1995 Statement of Principles, EPA, CARB, and engine manufacturers
agreed to evaluate whether emission standards for heavy-duty diesel
vehicles can be tightened beginning in 2008. Further lowering the
NOX and particulate matter emission standards from heavy-
duty diesel vehicle in concert with cleaner diesel fuel would reduce
emissions and significantly reduce public exposure to particulate
diesel exhaust.
b. In-Use Compliance Program for Heavy-Duty Diesel Vehicles.
California's report encourages EPA to rely on CARB's ongoing work (SIP
measure M17) to develop an in-use compliance program for NOX
emissions from heavy-duty diesel vehicles as the basis for a national
program.
c. Aircraft Engines. As part of the effort to pursue all possible
approaches to reducing airport and aircraft-related emissions, the
State urged EPA to: work with engine manufacturers to encourage the
development and commercialization of aircraft engines that emit less
NOX; work with airlines on voluntary programs to achieve an
increasingly cleaner aircraft fleet; work with FAA to pursue ICAO
aircraft engine emission standards that, at a minimum, reflect the
lowest emitting currently available aircraft engines; and pursue where
necessary regulations to ensure emission reductions from aircraft
operations.
II. Proposed EPA Action
A. Commitment To Eliminate Remaining Shortfall
EPA, CARB, and affected stakeholders, including the South Coast Air
Quality Management District (SCAQMD) and the environmental plaintiffs,
have met during the PCP and have identified various approaches,
particularly for the aviation and marine vessel categories, that have
the potential to contribute additional reductions that could reduce or
eliminate the remaining shortfall. The PCP participants generally
agree, however, that it is not possible to identify specific emission
reduction measures for these difficult source categories by the July 1,
1999 deadline for concluding the PCP, since more time will be required
to resolve technical issues relating to the benefits and feasibility of
control options.
Therefore, EPA and CARB intend to continue a focused cooperative
effort to review these remaining questions and agree upon the best
approach for achieving the relatively small balance of reductions still
unaccomplished. CARB has committed to continue working with EPA and
affected parties to achieve the emission reduction commitments in the
SIP for Federal measures, and to adopt by December 31, 2001, control
measures needed to achieve any additional emission reductions which are
determined to be appropriate for CARB. EPA proposes to assume
responsibility for identifying appropriate Federal measures, which
would be adopted as expeditiously as possible but no later than
December 31, 2001. Whenever feasible, any Federal measures would be
proposed by December 31, 2000.
EPA proposes to complete any actions identified as appropriate for
EPA rulemaking under the Agency's enforceable commitment, promulgated
at the time of the 1994 ozone SIP approval, ``to undertake rulemaking,
after the South Coast mobile source public consultative process, to
promulgate any VOC and NOX mobile source controls which are
determined to be appropriate for EPA and needed for ozone attainment in
the Los Angeles-South Coast Air Basin Area.'' 40 CFR 52.238. EPA
believes that this approach is consistent with the EPA commitments
under sections I.1(a) and I.1.(b) of the proposed consent decree,
quoted above, although EPA notes that actions taken to reduce emissions
might not be limited to controls on mobile sources and fuels.
EPA is currently considering various options including the projects
discussed in the overview of Federal Measures in section I.B.2, and
CARB's suggested list of Federal initiatives in sections I.E.3 and
I.E.4, that may achieve all or portions of the remaining reductions.
Once EPA decides which options to pursue, the Agency will undertake
formal rulemaking, with public notice and comment opportunities. EPA
will inform and involve State and local stakeholders in this process.
Finally, EPA intends to set expeditious implementation dates for
any resulting national regulations consistent with the Agency's CAA
authority, to help South Coast achieve, at a minimum reductions needed
to reach attainment by 2010.
B. Approval of SIP Update
EPA is also proposing to approve the update to the South Coast
ozone SIP submitted by CARB on May 20, 1999. As noted above, the update
consists of a report on the status of implementation of CARB's
committal measures in the 1994 ozone SIP, along with a report on
emission reductions from EPA national mobile source regulations, in the
context of the South Coast ozone SIP attainment demonstration.
As discussed above, EPA and CARB have agreed that controls will be
identified and adopted by the appropriate agencies by December 31, 2001
to eliminate the shortfall, currently estimated to be 8 tpd VOC and 15
tpd NOX. CARB has made such an enforceable commitment as a
replacement for the existing State commitment (40 CFR 52.220(c)(235)).
CARB also committed to revise the South Coast ozone attainment
demonstration by December 31, 2000. EPA proposes to approve Executive
Order G-99-037, dated May 20, 1999, and submitted on May 20, 1999,
which updates the timelines in Executive Order G-96-031. EPA believes
that this approach is consistent with sections I.1.(c) and I.1.(d) of
the proposed consent decree.
Nothing in this action should be construed as permitting or
allowing or establishing a precedent for any future request for
revision to any state implementation plan. Each request for revision to
the state implementation plan shall be considered separately in light
of specific technical, economic, and environmental factors and in
[[Page 30287]]
relation to relevant statutory and regulatory requirements.
III. Administrative Requirements
A. Executive Order 12866
The Office of Management and Budget (OMB) has exempted this
regulatory action from Executive Order (E.O.) 12866, Regulatory
Planning and Review.
B. Executive Order 12875
Under Executive Order 12875, Enhancing the Intergovernmental
Partnership, EPA may not issue a regulation that is not required by
statute and that creates a mandate upon a State, local or tribal
government, unless the Federal government provides the funds necessary
to pay the direct compliance costs incurred by those governments, or
EPA consults with those governments. If EPA complies by consulting,
Executive Order 12875 requires EPA to provide to the Office of
Management and Budget a description of the extent of EPA's prior
consultation with representatives of affected State, local and tribal
governments, the nature of their concerns, copies of any written
communications from the governments, and a statement supporting the
need to issue the regulation. In addition, Executive Order 12875
requires EPA to develop an effective process permitting elected
officials and other representatives of State, local and tribal
governments ``to provide meaningful and timely input in the development
of regulatory proposals containing significant unfunded mandates.''
Today's rule does not create a mandate on State, local or tribal
governments. The rule does not impose any enforceable duties on these
entities. Accordingly, the requirements of section 1(a) of E.O. 12875
do not apply to this rule.
C. Executive Order 13045
Protection of Children from Environmental Health Risks and Safety
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is
determined to be ``economically significant'' as defined under E.O.
12866, and (2) concerns an environmental health or safety risk that EPA
has reason to believe may have a disproportionate effect on children.
If the regulatory action meets both criteria, the Agency must evaluate
the environmental health or safety effects of the planned rule on
children, and explain why the planned regulation is preferable to other
potentially effective and reasonably feasible alternatives considered
by the Agency. This rule is not subject to E.O. 13045 because it does
not involve decisions intended to mitigate environmental health or
safety risks.
D. Executive Order 13084
Under Executive Order 13084, Consultation and Coordination with
Indian Tribal Governments, EPA may not issue a regulation that is not
required by statute, that significantly or uniquely affects the
communities of Indian tribal governments, and that imposes substantial
direct compliance costs on those communities, unless the Federal
government provides the funds necessary to pay the direct compliance
costs incurred by the tribal governments, or EPA consults with those
governments. If EPA complies by consulting, Executive Order 13084
requires EPA to provide to the Office of Management and Budget, in a
separately identified section of the preamble to the rule, a
description of the extent of EPA's prior consultation with
representatives of affected tribal governments, a summary of the nature
of their concerns, and a statement supporting the need to issue the
regulation. In addition, Executive Order 13084 requires EPA to develop
an effective process permitting elected officials and other
representatives of Indian tribal governments ``to provide meaningful
and timely input in the development of regulatory policies on matters
that significantly or uniquely affect their communities.'' Today's rule
does not significantly or uniquely affect the communities of Indian
tribal governments. Accordingly, the requirements of section 3(b) of
E.O. 13084 do not apply to this rule.
E. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to conduct a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements unless the agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities. Small entities include small
businesses, small not-for-profit enterprises, and small governmental
jurisdictions. This final rule will not have a significant impact on a
substantial number of small entities because SIP approvals under
section 110 and subchapter I, part D of the Clean Air 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
create any new requirements, I certify that this action will not have a
significant economic impact on a substantial number of small entities.
Moreover, due to the nature of the Federal-State relationship under the
Clean Air Act, preparation of flexibility analysis would constitute
Federal inquiry into the economic reasonableness of state action. The
Clean Air Act forbids EPA to base its actions concerning SIPs on such
grounds. Union Electric Co., v. U.S. EPA, 427 U.S. 246, 255-66 (1976);
42 U.S.C. 7410(a)(2).
F. Unfunded Mandates
Under section 202 of the Unfunded Mandates Reform Act of 1995
(``Unfunded Mandates Act''), 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
annual 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.
EPA has determined that this action does not include a Federal
mandate that may result in estimated annual costs of $100 million or
more to either State, local, or tribal governments in the aggregate, or
to the private sector. This Federal action proposes to approve pre-
existing 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.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Intergovernmental
relations, Oxides of nitrogen, Ozone, Particulate matter, Reporting and
recordkeeping requirements, Volatile organic compounds.
Dated: May 26, 1999.
Felicia Marcus,
Regional Administrator, Region IX.
[FR Doc. 99-14317 Filed 6-4-99; 8:45 am]
BILLING CODE 6560-50-P
