97-14987. Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; 15 Percent Plan and 1990 VOC Emission Inventory for the Philadelphia Area  

  • [Federal Register Volume 62, Number 110 (Monday, June 9, 1997)]
    [Rules and Regulations]
    [Pages 31343-31349]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-14987]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [PA 099-4063; FRL-5837-6]
    
    
    Approval and Promulgation of Air Quality Implementation Plans; 
    Pennsylvania; 15 Percent Plan and 1990 VOC Emission Inventory for the 
    Philadelphia Area
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Notice of final rulemaking.
    
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    SUMMARY: EPA is granting conditional interim approval of the State 
    Implementation Plan (SIP) revision submitted by the Commonwealth of 
    Pennsylvania, for the Philadelphia ozone nonattainment area, to meet 
    the 15 percent reasonable further progress (RFP, or 15% plan), also 
    known as rate-of-progress requirements of the Clean Air Act. EPA is 
    granting conditional interim approval because the 15% plan submitted by 
    Pennsylvania for the Philadelphia area relies on the inspection and 
    maintenance (I/M) program that received a conditional interim approval. 
    Finally, EPA is approving the Philadelphia 1990 VOC emission inventory 
    with certain exceptions as explained herein.
    
    DATES: This action is final on July 9, 1997.
    
    
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    ADDRESSES: Copies of the documents relevant to this action are 
    available for public inspection during normal business hours at the 
    U.S. Environmental Protection Agency--Region III, 841 Chestnut 
    Building, Philadelphia, Pennsylvania, 19107 and the Pennsylvania 
    Department of Environmental Protection, Bureau of Air Quality, P.O. Box 
    8468, 400 Market Street, Harrisburg, Pennsylvania 17105.
    
    FOR FURTHER INFORMATION CONTACT: Cynthia H. Stahl, Ozone/Carbon 
    Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841 
    Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone 
    at: (215) 566-2180 or via e-mail at: stahl.cynthia@epamail.epa.gov.
    
    SUPPLEMENTARY INFORMATION: On March 11, 1997, EPA proposed conditional 
    interim approval of the Philadelphia 15% plan and the 1990 VOC emission 
    inventory (62 FR 11131). The basis for EPA's action is that the 
    Philadelphia 15% plan on its face achieves the required 15% emission 
    reduction but does not contain the required verification of emission 
    calculations necessary for full approval and relies on the Pennsylvania 
    Inspection and Maintenance (I/M) rule that received final conditional 
    interim approval on January 28, 1997 (62 FR 4004). The details of the 
    September 12, 1996 Pennsylvania submittal are contained in the March 
    11, 1997 notice and accompanying technical support document and will 
    not be reiterated here. The discussion here will address additional 
    information submitted by Pennsylvania on April 10, 1997 and EPA's 
    responses to public comments received on the proposed rulemaking 
    notice. This action is being taken under section 110 of the Clean Air 
    Act (the Act).
    
    I. Pennsylvania DEP's April 10, 1997 Supplement
    
        Pennsylvania submitted a letter to EPA on April 10, 1997, within 
    the required time frame, committing to satisfy all the conditions 
    listed by EPA in the proposed rulemaking notice and within the time 
    frames required by that notice. Included in its April 10, 1997 addendum 
    is additional documentation to satisfy some of those conditions listed 
    by EPA. Specifically, Pennsylvania submitted additional stationary 
    source documentation (identified as Attachment 1 of its addendum) for 
    the shutdown credits claimed in the 15% plan. Part of this 
    documentation is the detailed emission inventory breakdown on a unit by 
    unit basis for Philadelphia County that was not included in the 
    September 12, 1996 submittal. Pennsylvania also included sample 
    calculations and a copy of the methodology it followed to determine 
    stationary source emissions (identified as Attachment 1 of its 
    addendum) and revised charts and tables for insertion into the 
    September 12, 1996 submittal (identified as Attachment 2 of its 
    addendum). Pennsylvania adjusted the amount of shutdown credit claimed 
    in the 15% plan and is now claiming 2.0 tons per day (TPD) rather than 
    the 3.4 TPD claimed in the September 12, 1996 submittal. The revised 
    charts and tables pertain to these corrections. These revisions occur 
    in Figure 1.2, Table 5.3, Section 6.1.1, Table 6.3 and Section 6.2.3 of 
    the Commonwealth's addendum to its 15% plan..
        EPA's evaluation of the April 10, 1997 addendum submitted by 
    Pennsylvania is detailed in the technical support document (TSD) that 
    is part of the docket to this rulemaking. Briefly, EPA has determined 
    that Pennsylvania has resolved the inconsistencies with the 1990 VOC 
    emissions inventory, with the exception of those certain source 
    emissions at United States Steel--Fairless (USX--Fairless) located in 
    Bucks County. Consequently, EPA is approving the 1990 VOC emission 
    inventory submitted on September 12, 1996 for the Philadelphia 
    nonattainment area, with the exception of certain sources located at 
    USX--Fairless. These sources are identified as: 1) no. 3 blast furnace 
    (source no. 243), 2) no.1 open hearth furnace (source no. 251), 3) no.1 
    soaking pits (20) (source no. 300), 4) no.2 soaking pits (1-8) (source 
    no. 330), 5) no.2 soaking pits (9-16) (source no. 338), and 6) 80 in. 
    Hot strip mill (source no. 351). The 1990 VOC emissions for the above-
    named sources at USX--Fairless were approved by EPA in a previous 
    rulemaking notice (April 9, 1996, 61 FR 15709). That version of the 
    1990 VOC emissions for the above-named sources at USX--Fairless remains 
    SIP approved.
        Pennsylvania has satisfactorily documented the emission reduction 
    credits due to shutdowns and over control with the exception of those 
    credits claimed for following four sources: Congoleum (NEDS ID 0049), 
    Sun R&M (NEDS ID 0025), Rohm & Haas (NEDS ID 0009), and BP Oil (NEDS ID 
    0030). EPA has recalculated the available emission reduction credit 
    from shutdown and over controlled sources based on the April 10, 1997 
    documentation and is approving an emission credit of 1.82 TPD for the 
    Philadelphia 15% plan. This is less than the 3.4 TPD figure in the 
    September 12, 1996 Pennsylvania submittal and the 2.0 TPD figure in the 
    April 10, 1997 addendum. The lesser amount of these credits does not 
    jeopardize the ability of Pennsylvania to meet the 15% target level of 
    emissions required by the Act. As a result of the additional 
    documentation provided by Pennsylvania on April 10, 1997, Pennsylvania 
    has satisfied conditions 1 through 3 listed in the notice of proposed 
    rulemaking. The remaining conditions (4 and 5) pertain to the 
    inspection and maintenance (I/M) rule. Pennsylvania expects to satisfy 
    those conditions within the required time frames.
    
    II. Public Comments and Response
    
        As a result of the March 11, 1997 proposed rulemaking notice, EPA 
    received comments from the Clean Air Council (CAC). The comments and 
    EPA's responses follow below.
        Comment 1: CAC agrees with EPA's assessment that the Philadelphia 
    15% plan contains various defects and cannot be determined to achieve 
    the 15% reduction required by the Act. CAC, however, states that these 
    defects preclude approval of the 15% plan.
        Response 1: As described above, Pennsylvania's April 10, 1997 
    addendum to its September 12, 1996 submittal resolves the emission 
    inventory and creditability issues discussed in EPA's proposed 
    rulemaking notice. As a result, EPA has determined that Pennsylvania 
    has satisfied conditions 1 through 3 listed in the March 11, 1997 
    proposed rulemaking notice (62 FR 11131). The remaining conditions 
    pertain to I/M and allow Pennsylvania additional time in accordance 
    with the National Highway Systems Designation Act. Consequently, the 
    defects identified in the March 1997 proposed rulemaking notice have 
    been remedied.
        Comment 2: CAC commented that the Philadelphia plan, which takes 
    credit for federal control measures such as architectural and 
    industrial maintenance coating, consumer/commercial products and 
    autobody refinishing, should not be approved because those federal 
    control measures have not yet been promulgated. CAC states that 
    allowing such credit violates section 182(b)(1)(C) of the Act. CAC 
    further commented that EPA cannot lawfully base SIP decisions on as-yet 
    unpromulgated rules because it does not know what these final rules 
    will say. CAC contends that allowing credit on as-yet unpromulgated 
    rules, even with the caveat that the states must revisit the rule later 
    if the federal rules turn out differently than predicted, amounts to an 
    unlawful extension of a SIP
    
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    submission deadline. CAC stated that EPA must base its decision on the 
    record before it at the time of its decision; not on some record that 
    the agency hopes will exist in the future.
        Response 2: Section 182(b)(1)(A) of the Act requires states to 
    submit their 15% SIP revisions by November, 1993. Section 182(b)(1)(C) 
    of the Act provides the following general rule for creditability of 
    emissions reductions towards the 15% requirement:
    
        Emissions reductions are creditable toward the 15 percent 
    required, to the extent they have actually occurred, as of 
    [November, 1996], from the implementation of measures required under 
    the applicable implementation plan, rules promulgated by the 
    Administrator, or a permit under Title V.
    
        This provision further indicates that certain emissions reductions 
    are not creditable, including reductions from certain control measures 
    required prior to the 1990 Amendments.
        This creditability provision is ambiguous. Read literally, it 
    provides that although the 15% SIPs are required to be submitted by 
    November 1993, emissions reductions are creditable as part of those 
    SIPs only if ``they have actually occurred, as of [November 1996].'' 
    This literal reading renders the provision internally inconsistent. 
    Accordingly, EPA believes that the provision should be interpreted to 
    provide, in effect, that emissions reductions are creditable ``to the 
    extent they will have actually occurred, as of [November, 1996], from 
    the implementation of [the specified measures]'' (the term ``will'' is 
    added). This interpretation renders the provision internally 
    consistent.
        Section 182(b)(1)(C) of the Act explicitly includes as creditable 
    reductions those resulting from ``rules promulgated by the 
    Administrator''. This provision does not state the date by which those 
    measures must be promulgated, i.e., does not indicate whether the 
    measures must be promulgated by the time the 15% SIPs were due 
    (November, 1993), or whether the measures may be promulgated after this 
    due date.
        Because the statute is silent on this point, EPA has discretion to 
    develop a reasonable interpretation, under Chevron U.S.A. Inc. v. NRDC, 
    467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). EPA believes it is 
    reasonable to interpret section 182(b)(1)(C) of the Act to credit 
    reductions from federal measures as long as those reductions are 
    expected to occur by November, 1996, even if the federal measures are 
    not promulgated by the November 1993 due date for the 15% SIPs.
        EPA's interpretation is consistent with the congressionally 
    mandated schedule for promulgating regulations for consumer and 
    commercial products, under section 182(e) of the Act. This provision 
    requires EPA to promulgate regulations controlling emissions from 
    consumer and commercial products that generate emissions in 
    nonattainment areas. Under the schedule, by November, 1993-- the same 
    date that the states were required to submit the 15% SIPs--EPA was to 
    issue a report and establish a rulemaking schedule for consumer and 
    commercial products. Further, EPA was to promulgate regulations for the 
    first set of consumer and commercial products by November 1995. It is 
    reasonable to conclude that Congress anticipated that reductions from 
    these measures would be creditable as part of the 15% SIPs, as long as 
    those reductions were to occur by November 1996.
        Crediting reductions from federal measures promulgated after the 
    due date for the 15% SIPs is also sensible from an administrative 
    standpoint. Crediting the reductions allows the states to accurately 
    plan to meet the 15% reduction target from the appropriate level of 
    state and federal measures. Not crediting such reductions would mean 
    that the states would have to implement additional control requirements 
    to reach the 15% mark; and that SIPs would result in more than a 15% 
    level of reductions once the federal measures in question were 
    promulgated and implemented. At that point in time, the state may seek 
    to eliminate those additional SIP measures on grounds that they would 
    no longer be necessary to reach the 15% level. Such constant revisions 
    to the SIP to demonstrate 15% is a paper exercise that exhausts both 
    the states' and EPA's time and resources.
        The fact that EPA cannot determine precisely the amount of credit 
    available for federal measures not yet promulgated does not preclude 
    granting the credit. The credit can be granted as long as EPA is able 
    to develop reasonable estimates of the amount of VOC reductions from 
    the measures EPA expects to promulgate. EPA believes that it is able to 
    develop reasonable estimates, particularly because it has already 
    proposed and taken comment on the measures at issue, and expects to 
    promulgate final rules by the spring of 1998. Many other parts of the 
    SIP, including state measures, typically include estimates and 
    assumptions concerning VOC amounts, rather than actual measurements. 
    For example, EPA's document to estimate emissions, ``Compilation of Air 
    Pollutant Emission Factors,'' January 1995, AP-42, provides emission 
    factors used to estimate emissions from various sources and source 
    processes. AP-42 emission factors have been used, and continue to be 
    used, by states and EPA to determine base year emission inventory 
    figures for sources and to estimate emissions from sources where such 
    information is needed. Estimates in the expected amount of VOC 
    reductions are commonly made in air quality plans, even for those 
    control measures that are already promulgated. Moreover, the fact that 
    EPA is occasionally delayed in its rulemaking is not an argument 
    against granting credits from these measures. The measures are 
    statutorily required, and states and citizens could bring suit to 
    enforce the requirements that EPA promulgate them. If the amount of 
    credit that EPA allows the state to claim turns out to be greater than 
    the amount EPA determines to be appropriate when EPA promulgates the 
    federal measures, EPA intends to take appropriate action to require 
    correction of any shortfall in necessary emissions reductions that may 
    occur.
        The above analysis focuses on the statutory provisions that include 
    specific dates for 15% SIP submittal (November 1993) and implementation 
    (November 1996). These dates have expired, and EPA has developed new 
    dates for submittal and implementation. EPA does not believe that the 
    expiration of the statutory dates, and the development of new ones, has 
    implications for the issue of whether reductions from federal measures 
    promulgated after the date of the 15% SIP approval may be counted 
    toward those 15% SIPs. Although the statutory dates have passed, EPA 
    believes that the analysis described above continues to be valid.
        Comment 3: CAC commented that EPA cannot ignore the November 15, 
    1996 statutory deadline simply because the deadline is now behind us. 
    It contends that EPA's and states' unlawful delays have prevented 
    compliance with the November 15, 1996 deadline and that EPA cannot now 
    jettison the statutory deadlines by substituting the ``as soon as 
    practicable'' test; rather, CAC states EPA must require compliance with 
    an ``as soon as possible'' test and fix a compliance deadline. The 
    commenter cited various court decisions in an effort to support its 
    formulation of the ``as soon as possible'' test.
        Response 3: The case law cited by the commenter considers various 
    circumstances, such as failure by EPA to promulgate rules on the 
    statutorily mandated deadline or to take action on
    
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    state failures to make SIP submissions on the statutorily mandated 
    deadline. See, e.g., Natural Resources Defense Council v. EPA, 22 F.3d 
    1125 (D.C. Cir. 1994), Natural Resources Defense Council v. Train, 510 
    F.2d 692 (D.C. Cir. 1975). These cases articulate various formulations 
    of the standards by which the courts establish new deadlines. EPA 
    believes that its formulation of the standard by which States must 
    achieve the 15% reductions--``as soon as practicable''--is generally 
    consistent with the case law.
        Further, EPA believes that Pennsylvania has demonstrated that it 
    has met this standard. The notice of proposed rulemaking, the TSD, and 
    other documents in the record establish that implementation of various 
    15% measures including the I/M program is as soon as practicable. The 
    main reasons for the delays in the development and implementation of 
    Pennsylvania's 15% SIP relate to its enhanced I/M plan. Most recently, 
    these enhanced I/M delays were closely associated with the enactment, 
    in November, 1995, of the National Highway Systems Designation Act 
    (NHSDA). The NHSDA afforded states the opportunity to revise their I/M 
    plans in a manner that would be treated as meeting certain EPA 
    requirements on an interim basis. The NHSDA provided additional time 
    for the Commonwealth and EPA to develop and process the revised I/M 
    plans. The Commonwealth acted expeditiously in developing and 
    implementing a revised enhanced I/M program. However, the delays in 
    developing and implementing the NHSDA I/M program rendered impossible 
    achieving the 15% reduction target by the end of 1996.
        Moreover, EPA has reviewed other VOC SIP measures that are at least 
    theoretically available to Pennsylvania, and has concluded that 
    implementation of any such measures that might be appropriate would not 
    accelerate the date of achieving the 15% reductions.
        EPA agrees with the commenter that in this particular case, a fixed 
    deadline is appropriate. Accordingly, EPA will establish November 15, 
    1999, as the date by which the 15% measures must be implemented to the 
    extent necessary to generate the required amount of reductions.
        Comment 4: Any further delays in implementing VOC control measures, 
    including most prominently, enhanced I/M, must not be tolerated. For I/
    M, EPA's deadline must require implementation in the shortest time in 
    which it is logistically possible to get the testing systems up and 
    running. The National Highway Designation Act does not mention the 15% 
    plan or authorize any delay of the achievement of the 15% emission 
    reduction. Furthermore, missing the November 15, 1996 deadline 
    unlawfully rewards states for failure to meet the deadline by giving 
    them increased credits under national programs such as the Tier I 
    Federal Motor Vehicle Control Program. CAC argues that such an approach 
    unlawfully delays the achievement of clean air by allowing the states 
    to reduce their own emission control efforts by the amount of the post-
    November 1996 fleet turnover benefits. Consequently, EPA must deny the 
    post-November 1996 Tier I credit and require states to adopt emission 
    reductions to compensate for post-1996 VMT growth.
        CAC further argues that EPA cannot delay the section 182(b)(1) 
    requirement for states to account for growth in the 15% plans to the 
    post-1996 rate-of-progress plans. Particularly because the post-1996 
    plans involve potential NOX substitution that is not 
    permitted in the VOC-only 15% plans.
        Response 4: EPA disagrees with the comment. The National Highway 
    Systems Designation Act was enacted by Congress in November of 1995. 
    Section 348 of this statute provided states renewed opportunity to 
    satisfy the Act's requirements related to the network design for I/M 
    programs. States were not only granted the flexibility to enact test-
    and-repair programs, but were provided additional time to develop those 
    programs and to submit proposed regulations for interim SIP approval. 
    Pennsylvania moved rapidly to propose I/M regulations on March 16, 
    1996, and to submit to EPA a SIP containing those regulations, under 
    the authority granted by the NHSDA.
        Under the terms of the 15% requirement in section 182(b)(1)(A)(I) 
    of the Act, the SIP must--
    
    provide for [VOC] emission reductions, within 6 years after the date 
    of enactment of the Clean Air Act Amendments of 1990, of at least 15 
    percent from baseline emissions, accounting for any growth in 
    emissions after [1990].
    
        EPA interprets this provision to require that a specific amount of 
    VOC reductions occur, and has issued guidance for computing this 
    amount. The Commonwealth, complying with this guidance, has determined 
    the amount of the required VOC reductions needed to meet the 15% goal. 
    It is no longer possible for the Commonwealth to implement measures to 
    achieve this level of reduction as the November 15, 1996 date provided 
    under the 15% provisions has passed. Accordingly, EPA believes that the 
    Commonwealth will comply with the statutory mandate as long as 
    Pennsylvania achieves the requisite level of reductions on an as-soon-
    as-practicable basis after 1996. In computing the reductions, EPA 
    believes it acceptable for states to count reductions from federal 
    measures, such as vehicle turnover, that occur after November 15, 1996, 
    as long as they are measures that would be creditable had they occurred 
    prior to that date. These measures result in VOC emission reductions as 
    directed by Congress in the Act; therefore, these measures should count 
    towards the achievement --however delayed--of the 15% VOC reduction 
    goal.
        EPA does not believe states are obligated, as part of the 15% SIP, 
    to implement further VOC reductions to offset increases in VOC 
    emissions due to post-1996 growth. As noted above, the 15% requirement 
    mandates a specific level of reductions. By counting the reductions 
    that occur through measures implemented pre- and post-1996, SIPs may 
    achieve this level of reductions. Although section 182(b)(1)(A)(I), 
    quoted above, mandates that the SIPs account for growth after 1990, the 
    provision does not, by its terms, establish a mechanism for how to 
    account for growth, or indicate whether, under the present 
    circumstances, post-1996 growth must be accounted for. EPA believes 
    that its current requirements for the 15% SIPs meet section 
    182(b)(1)(A)(I). In addition, although post-1996 VOC growth is not 
    offset under the 15% SIPs, such growth must be offset in the post-1996 
    plans required for serious and higher classified areas to achieve 9% in 
    VOC reductions every three years after 1996 (until the attainment 
    date). The fact that these post-1996 SIPs may substitute NOX 
    reductions for VOC reductions in the 1996-1999 period does not 
    undermine the integrity of the 15% SIPs. Allowing NOX 
    substitution is fully consistent with the public health-based goals of 
    the Act.
        Under EPA's approach, post-1996 growth will be accounted for in the 
    plans that Congress intended to take account of such growth--the post-
    1996 ``rate of progress'' SIPs. To shift the burden of accounting for 
    such growth to the 15% plans, as the commenters would have EPA do, 
    would impose burdens on states above and beyond what Congress 
    contemplated would be imposed by the 15% requirement (which was 
    intended to have been achieved by November 1996). In the current 
    situation, where it is clearly impossible to achieve the target level 
    of VOC reductions (a 15% reduction taking into account growth through 
    November 1996) by November 1996, EPA believes that its approach is a 
    reasonable and
    
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    appropriate one. It will still mean that post-1996 growth is taken into 
    account in the SIP revisions Congress intended to take into account 
    such growth and it means that the target level of VOC reductions will 
    be achieved as soon as practicable. Once the post-1996 rate of progress 
    plans are approved and implemented, areas will have achieved the same 
    level of progress that they were required to have achieved through the 
    combination of 15% and rate of progress requirements as was originally 
    intended by Congress.
        Comment 5: EPA cannot approve SIPs if the state has failed to 
    demonstrate approvability. In this regard, EPA has not been able to 
    verify Pennsylvania's mobile source emission reduction credits but has 
    stated that it has no reason to believe that Pennsylvania's methodology 
    is flawed and is therefore approving the Philadelphia 15% plan. CAC 
    stated that an absence of information requires disapproval.
        Response 5: EPA believes Pennsylvania has demonstrated that it has 
    appropriately modeled its mobile source program benefits, through 
    proper use of EPA's MOBILE emissions factor estimation model, combined 
    with state vehicle miles of travel estimates. Due to the sheer 
    magnitude the modeling task (i.e. the large number of modeling 
    scenarios needed to compile inventories and evaluate emissions 
    benefits) Pennsylvania faced when developing mobile source inventories 
    and modeling the benefits of various mobile source programs, the 
    Commonwealth utilized a post-processor model to run the numerous MOBILE 
    modeling scenarios needed to characterize these emissions. It is not 
    practical to submit the hundreds or even thousands of modeling input 
    and output runs needed to evaluate the mobile source-related portions 
    of the 15% rate-of-progress SIP.
        Pennsylvania instead submitted to EPA a list of the variables and 
    assumptions utilized in its MOBILE modeling analysis, along with sample 
    model input and output scenarios. Additionally, the Commonwealth 
    submitted a demonstration of how the post-processor utilized MOBILE to 
    generate composite index factors for use in determining mobile source 
    emission factors for the Philadelphia area. Finally, the Commonwealth 
    tallied mobile source emissions in summary tables for various programs, 
    by county, etc. to present the results of its analysis.
        While the SIP does not contain sufficient data to reconstruct the 
    analysis and, therefore, to independently verify the Commonwealth's 
    claims stemming from the mobile source emissions analysis, EPA believes 
    the Commonwealth's modeling methodology is sound. However, EPA has 
    deferred the specific results of that modeling, in part, to the 
    Commonwealth.
        Comment 6: EPA has pointed out information gaps in the Pennsylvania 
    submittal, including the finding that Pennsylvania did not follow 
    standard guidance and methodologies for projecting growth in the 1996 
    inventory. EPA has also stated that there is a potential double 
    counting issue related to emission credits but that it is not 
    conditioning the approval of the Philadelphia 15% plan on these issues. 
    CAC argued that these deficiencies speak to the heart of the 
    calculation of the target emission reduction level and whether the 
    claimed emission reductions are sufficient to meet that level. 
    Therefore, although CAC believes that the Philadelphia 15% plan should 
    be disapproved, at a minimum, it argues that the resolution of these 
    deficiencies should be made additional conditions that the Commonwealth 
    must satisfy for the 15% plan approval.
        Response 6: EPA has acknowledged the potential double counting of 
    emission reductions in the Philadelphia 15% plan as part of its honest 
    effort to credibly account for activities associated with the operation 
    of the Pennsylvania emissions bank. The use of Bureau of Economic 
    Analysis (BEA) growth factors, recommended by EPA guidance, did not 
    contemplate the net effect on emissions accounting where there is an 
    operational emissions bank. Since most states in the nation do not have 
    approved emissions bank, this was not an issue of widespread concern or 
    discussion. Pennsylvania's use of the BEA growth factors and the 
    operation of an emissions bank are both permitted by EPA. The effect of 
    the combined use of the BEA growth factors and the operation of the 
    emissions bank is, however, uncertain. EPA shall address this issue in 
    subsequent air quality plans for Pennsylvania.
    
    III. Creditable Measures
    
        The control measures described below are creditable toward the rate 
    of progress requirements of the Act. Pennsylvania takes emission credit 
    toward the 15% requirement through implementation of the following 
    required programs: (1) Federal reformulated gasoline, (2) reformulated 
    gasoline--nonroad, (3) I/M FMVCP/Tier I, and (4) Stage II vapor 
    recovery. Pennsylvania also takes emission credit toward the 15% 
    requirement through the implementation of the following programs: (1) 
    Federal architectural and industrial maintenance coating regulation 
    (national rule), (2) treatment, storage and disposal facility (TSDF) 
    controls (hazardous waste rule with air emission reductions), (3) 
    autobody refinishing national rule, (4) consumer and commercial 
    products national rule, and (5) facility shutdowns/over control.
        Further details regarding EPA's review of the Commonwealth's 
    control measures are contained in the TSD for this rulemaking action.
    
      Summary of Creditable Emission Reductions for the Philadelphia Ozone  
                          Nonattainment Area (tons/day)                     
    ------------------------------------------------------------------------
             Required reduction for the Philadelphia area            123.64 
    ------------------------------------------------------------------------
    Creditable Reductions:                                                  
      Shutdown credits............................................      1.83
      AIM Coatings Rules..........................................      7.28
      Consumer/Commercial Products................................      6.58
      TSDF Controls...............................................      9.35
      Autobody refinishing........................................      6.30
      Stage II vapor recovery.....................................     17.02
      Federal Reformulated gasoline...............................     26.48
      Reformulated gasoline--nonroad..............................      0.59
      FMVCP (Tier I)..............................................      1.08
      Inspection and Maintenance (I/M)............................     49.74
                                                                   ---------
          Total...................................................    126.24
    ------------------------------------------------------------------------
    
    IV. Conditions for Approval
    
        EPA has evaluated this submittal for consistency with the Act, 
    applicable EPA regulations, and EPA policy. In the March 11, 1997 
    proposed rulemaking notice, EPA listed five conditions, which 
    Pennsylvania is required to meet, within 12 months of the final 
    rulemaking notice, in order to obtain approval of the Philadelphia 15% 
    plan and 1990 VOC emission inventory. These conditions are:
        (1) Reconcile the 1990 VOC emissions inventory with all the 
    appendices, tables and narratives throughout the 15% document, wherever 
    emissions are cited;
        (2) After establishing consistent figures as described in 1) above, 
    provide sample calculations for point source 1990, 1990 adjusted, and 
    1996 projected emissions showing how each of these figures were 
    obtained. The level of documentation must be equivalent to that 
    required for approval of a 1990 emissions inventory as described in the 
    emission inventory documents at the beginning of this technical support 
    document;
        (3) Provide additional documentation for the emissions for those 
    sources categories where credit is claimed (shutdowns, TSDFs);
        (4) Provide a written commitment to remodel the I/M program as 
    implemented in the Philadelphia
    
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    nonattainment area in accordance with EPA guidance (December 23, 1996 
    memo entitled ``Modeling 15% VOC Reductions from I/M in 1999--
    Supplemental Guidance); and
        (5) Fulfill the conditions listed in the I/M SIP rulemaking notice 
    (proposed October 3, 1996, 61 FR 51638; final rule, January 28, 1997, 
    62 FR 4004) and summarized here as: (a) geographic coverage and program 
    start dates, (b) program evaluation, (c) test types, test procedures 
    and emission standards, (d) test equipment specifications, and (e) 
    motorist compliance enforcement.
        By its April 10, 1997 addendum, Pennsylvania has met conditions 1, 
    2, and 3. Although the full amount of emission reduction credit in some 
    cases could not be substantiated with the Pennsylvania documentation, 
    EPA is satisfied that the documentation supports the position that the 
    amount of credits being approved now by EPA is adequately verified. The 
    emission reductions from the enhanced I/M program that is subject to 
    the National Highway Systems Designation Act with its extended 
    deadlines are required in order for the required 15% emission reduction 
    to be achieved in the Philadelphia nonattainment area. Under the 
    National Highway Systems Designation Act of 1995, Pennsylvania's 
    enhanced I/M program is receiving a conditional interim approval. As 
    such, EPA can, at best, propose conditional interim approval of the 
    Philadelphia 15% plan. In its April 10, 1997 letter, Pennsylvania 
    agreed to meet conditions 4 and 5 that pertain to I/M within the 
    required time frames.
        As conditions 4 and 5 remain unfulfilled, EPA cannot grant full 
    approval of the Philadelphia 15% rate-of-progress plan under section 
    110(k)(3) and Part D of the Clean Air Act. Instead, EPA is granting 
    conditional interim approval of this SIP revision under section 
    110(k)(4) of the Act, because the Commonwealth must meet the specified 
    conditions and supplement its submittal to satisfy the requirements of 
    section 182(b)(1) of the Act regarding the 15 percent rate-of-progress 
    plan, and because the Commonwealth must supplement its submittal and 
    demonstrate it has achieved the required emission reductions. In 
    addition, EPA is approving the 1990 VOC base year emissions inventory 
    for the Philadelphia ozone nonattainment area, submitted with the 15% 
    plan on September 27, 1996, with the exception of the revisions to the 
    emissions for USX--Fairless (Bucks County) that were previously 
    approved by EPA (April 9, 1996, 61 FR 15709). EPA is not taking any 
    rulemaking action regarding the contingency plan submitted by 
    Pennsylvania in response to the requirement of section 172(c)(9) of the 
    Act. The contingency plan will be the subject of a separate rulemaking 
    notice. EPA is also not taking any rulemaking action at this time with 
    regard to the 1990 NOX emission inventory submitted with the 
    September 1996 15% plan. The 1990 NOX emission inventory 
    will also be the subject of a separate rulemaking notice.
        The Commonwealth submitted the required written commitment to EPA 
    on April 10, 1997. In addition, the Commonwealth submitted additional 
    documentation to fully satisfy conditions 1 through 3 and the necessary 
    written commitment to complete condition 4 in the time frame required.
        The remaining unsatisfied conditions or portions of conditions must 
    be satisfied by June 9, 1998.
    
    Final Action
    
        EPA is granting conditional interim approval of the Philadelphia 
    15% plan and approval of the 1990 VOC emission inventory as a revision 
    to the Pennsylvania SIP. By today's action, EPA is granting approval to 
    emission credits for the Philadelphia 15% plan on an interim basis, 
    pending verification of the enhanced I/M Program's performance, 
    pursuant to section 348 of the NHSDA. This interim approval of the 15% 
    plan will expire at the end of the 18 month period, and will be 
    replaced by appropriate EPA action based on the evaluation EPA receives 
    concerning the program's performance. If the evaluation indicates a 
    shortfall in emission reductions compared to the remodeling that the 
    15% plan is conditioned on, the Commonwealth will need to find 
    additional emission credits. Failure of the Commonwealth to make up for 
    an emission shortfall from the enhanced I/M program may subject the 
    Commonwealth to sanctions and imposition of a Federal Implementation 
    Plan. EPA has already approved the Pennsylvania enhanced I/M program on 
    a conditional interim basis (January 28, 1997, 62 FR 4004). This 
    approval of the Pennsylvania enhanced I/M program was taken under 
    section 110 of the Act and, although the credits provided by this 
    program may expire, the approval of the I/M regulations does not 
    expire. As explained above, the credits provided by the enhanced I/M 
    program on an interim basis for the 15% plan may be adjusted based on 
    EPA's evaluation of the enhanced I/M program's performance.
        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 
    relation to relevant statutory and regulatory requirements.
        This action has been classified as a Table 3 action for signature 
    by the Regional Administrator under the procedures published in the 
    Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
    July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
    Air and Radiation. The Office of Management and Budget (OMB) has 
    exempted this regulatory action from E.O. 12866 review.
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
    Alternatively, EPA may certify that the rule will not have a 
    significant impact on a substantial number of small entities. Small 
    entities include small businesses, small not-for-profit enterprises, 
    and government entities with jurisdiction over populations of less than 
    50,000.
        SIP approvals under section 110 and subchapter I, part D of the 
    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 impose any new requirements, EPA 
    certifies that it does not have a significant impact on any small 
    entities affected. Moreover, due to the nature of the Federal-State 
    relationship under the Act, preparation of a 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).
        Conditional approvals of SIP submittals 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, EPA certifies that it does not have a significant impact 
    on any small entities affected. Moreover, due to the nature of the 
    federal-state relationship under the Act, preparation of a flexibility 
    analysis would constitute federal inquiry into the economic 
    reasonableness of state action. The Clean Air Act forbids EPA
    
    [[Page 31349]]
    
    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).
        If the conditional approval is converted to a disapproval under 
    section 110(k), based on the State's failure to meet the commitment, it 
    will not affect any existing state requirements applicable to small 
    entities. Federal disapproval of the state submittal does not affect 
    its state-enforceability. Moreover, EPA's disapproval of the submittal 
    does not impose a new federal requirement.
        Therefore, EPA certifies that this disapproval action does not have 
    a significant impact on a substantial number of small entities because 
    it does not remove existing requirements nor does it substitute a new 
    federal requirement.
        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 
    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 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 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.
        Under section 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 the rule in today's 
    Federal Register. This rule is not a ``major rule'' as defined by 
    section 804(2).
        Under section 307(b)(1) of the Clean Air Act, petitions for 
    judicial review of this action must be filed in the United States Court 
    of Appeals for the appropriate circuit by August 8, 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, pertaining to the final conditional 
    interim approval of the 15% plan for the Pennsylvania portion of the 
    Philadelphia ozone nonattainment area and the approval of the 1990 VOC 
    emission inventory (with the exception of the revisions to the 
    inventory of emissions for selected sources at USX--Fairless) for the 
    same area, 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, 
    Ozone, Reporting and record keeping requirements.
    
        Dated: May 30, 1997.
    W. Michael McCabe,
    Regional Administrator, Region III.
    
        Chapter I, title 40, of the Code of Federal Regulations 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 NN--PENNSYLVANIA
    
        2. Section 52.2026 is amended by adding paragraph (c) to read as 
    follows:
    
    
    Sec. 52.2026  Conditional Approval.
    
    * * * * *
        (c) The Commonwealth of Pennsylvania's September 12, 1996 submittal 
    for the 15 Percent Rate of Progress Plan (15% plan) for the 
    Pennsylvania portion of the Philadelphia ozone nonattainment area, is 
    conditionally approved based on certain contingencies, for an interim 
    period. The condition for approvability is as follows:
        Pennsylvania must meet the conditions listed in the January 28, 
    1997 conditional interim Inspection and Maintenance Plan (I/M) 
    rulemaking notice, remodel the I/M reductions using the EPA guidance 
    memo: ``Modeling 15 Percent VOC Reductions from I/M in 1999--
    Supplemental Guidance'', memorandum from Gay MacGregor and Sally 
    Shaver, dated December 23, 1996.
        3. Section 52.2036 is amended by adding paragraph (i) to read as 
    follows:
    
    
    Sec. 52.2036  1990 Base year Emission Inventory
    
    * * * * *
        (i) The 1990 VOC emission inventory for the Philadelphia ozone 
    nonattainment area, submitted on September 12, 1996 by Pennsylvania 
    Department of Environmental Protection, is approved, with the exception 
    of the revisions to the emission inventory for those sources at United 
    States Steel--Fairless that were approved in Sec. 52.2036 (b) on April 
    9, 1996.
    
    [FR Doc. 97-14987 Filed 6-6-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
06/09/1997
Department:
Environmental Protection Agency
Entry Type:
Rule
Action:
Notice of final rulemaking.
Document Number:
97-14987
Dates:
This action is final on July 9, 1997.
Pages:
31343-31349 (7 pages)
Docket Numbers:
PA 099-4063, FRL-5837-6
PDF File:
97-14987.pdf
CFR: (2)
40 CFR 52.2026
40 CFR 52.2036