97-18244. Approval and Promulgation of Air Quality State Implementation Plans (SIP); Texas: 1990 Base Year Emissions Inventories, 15 Percent Rate of Progress Plans and Contingency Plans  

  • [Federal Register Volume 62, Number 133 (Friday, July 11, 1997)]
    [Proposed Rules]
    [Pages 37175-37183]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-18244]
    
    
    -----------------------------------------------------------------------
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 52
    
    [TX80-1-7329; FRL-5856-4]
    
    
    Approval and Promulgation of Air Quality State Implementation 
    Plans (SIP); Texas: 1990 Base Year Emissions Inventories, 15 Percent 
    Rate of Progress Plans and Contingency Plans
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed conditional interim rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The EPA is proposing a conditional interim approval of the 15 
    Percent Rate of Progress Plans and associated Motor Vehicle Emissions 
    Budgets (MVEB) for the Dallas/Fort Worth, El Paso and Houston ozone 
    nonattainment areas. In addition, the EPA is proposing to fully approve 
    revisions to the 1990 base year emissions inventory and contingency 
    plans for these three areas.
        On January 29, 1996, the EPA published a proposed limited approval/
    limited disapproval of the 15 Percent Plans and contingency measures in 
    the Federal Register. Also, on January 29, 1997, the EPA published a 
    limited approval of the control measures contained in the 15 Percent 
    Plans. Today's proposed action replaces the January 29, 1996, proposed 
    limited approval/limited disapproval of the 15 Percent Plans and 
    contingency measures. The proposed limited approval of the control 
    measures is not affected by this proposal.
    
    DATES: Comments must be received on or before August 11, 1997.
    
    ADDRESSES: Written comments on this action should be addressed to Mr. 
    Thomas H. Diggs, Chief, Air Planning Section, at the EPA Regional 
    Office listed below. Copies of the documents relevant to this action 
    are available for public inspection during normal business hours at the 
    following locations. Persons interested in examining these documents 
    should make an appointment with the appropriate office at least 24 
    hours before the visiting day.
    
    Environmental Protection Agency, Region 6, Air Planning Section (6PD-
    L), 1445 Ross Avenue, Suite 700, Dallas, Texas 75202-2733.
    Texas Natural Resource Conservation Commission, 12100 Park 35 Circle, 
    Austin, Texas 78711-3087.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Guy R. Donaldson, Air Planning 
    Section (6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-
    2733, telephone (214) 665-7242.
    
    SUPPLEMENTARY INFORMATION:
    
    I. Background
    
    A. Clean Air Act Requirements
    
        Section 182(b)(1) of the Clean Air Act (the Act), as amended in 
    1990, requires ozone nonattainment areas with classifications of 
    moderate and above to develop plans to reduce area-wide Volatile 
    Organic Compound (VOC) emissions by 15 percent from a 1990 baseline. 
    The plans were to be submitted by November 15, 1993, and the reductions 
    were required to be achieved by November 15, 1996. The Clean Air Act 
    also sets limitations on the creditability of certain types of 
    reductions. Specifically, States cannot take credit for reductions 
    achieved by Federal Motor Vehicle Control Program measures (new car 
    emissions standards) promulgated prior to 1990 or for reductions 
    resulting from requirements to lower the Reid Vapor Pressure of 
    gasoline promulgated prior to 1990. Furthermore, the Act does not allow 
    credit for corrections to Vehicle Inspection and Maintenance Programs 
    (I/M) or corrections to Reasonably Available Control Technology (RACT) 
    rules as these programs were required prior to 1990.
        In addition, section 172(c)(9) of the Clean Air Act requires that 
    contingency measures be included in the plan revision to be implemented 
    if reasonable further progress is not achieved or if the standard is 
    not attained.
        In Texas, four moderate and above ozone nonattainment areas are 
    subject to the 15 Percent Rate of Progress requirements. These are the 
    Beaumont/Port Arthur (moderate 1), Dallas/Fort Worth 
    (moderate), El Paso (serious), and the Houston/Galveston (severe) 
    areas.
    ---------------------------------------------------------------------------
    
        \1\ Previously classified Serious, on April 2, 1996, the EPA 
    corrected the classification of Beaumont/Port Arthur to moderate (61 
    FR 14496).
    ---------------------------------------------------------------------------
    
    B. Previous 15 Percent Rate of Progress SIP Revisions
    
        Texas first adopted measures for the 15 Percent Rate of Progress 
    Plans and the required contingency measures in two phases. Phase I was 
    submitted to the EPA on November 13, 1993, and contained measures 
    achieving the bulk of the required reductions in each of the 
    nonattainment areas. Phase II was submitted May 9, 1994. The Phase II 
    submittal was to make up the shortfall in reductions not achieved by 
    the Phase I measures. The combination of the Phase I and Phase II 
    measures was ruled complete by the EPA on May 12, 1994.
        The EPA analyzed the November 13, 1993, and May 9, 1994, submittal 
    and determined that the measures included in the plan did not achieve 
    the required amount of reductions. Among other reasons, there was a 
    shortfall in reductions because the I/M program relied on in the plans 
    had been repealed by the State. On January 29, 1996, the EPA published 
    a proposed limited approval/limited disapproval of the 15 Percent Plans 
    included in the November 13, 1993, and May 9, 1994, submittals (61 FR 
    2751). The EPA also proposed a limited approval of the measures that 
    were included with the plans because they resulted in a strengthening 
    of the SIP. For a complete discussion of the deficiencies in the 
    State's plans, please see the January 29, 1996 Federal Register 
    document.
    
    [[Page 37176]]
    
    C. Current 15 Percent SIP Revision
    
        The Governor of Texas submitted in a letter dated August 9, 1996, 
    revisions to the 15 Percent Rate of Progress Plans for Beaumont/Port 
    Arthur, Dallas/Fort Worth, El Paso and Houston Areas. The SIP revision 
    also included revisions to the 1990 Base Year Inventory, El Paso 
    Section 818 analysis, the Post 96 Rate of Progress Plan for Houston and 
    the Employee Commute Options SIP. In this Federal Register, the EPA is 
    taking action on only the Emissions Inventories, 15 Percent Rate of 
    Progress Plans and Contingency measures for the Dallas/Fort Worth, El 
    Paso and Houston areas. The EPA is taking no action on the other 
    portions of the August 9, 1996, submittal including the Beaumont/Port 
    Arthur 15 Percent Rate of Progress Plan. The other portions of the SIP 
    submittal will be acted on in separate Federal Register documents.
    
    II. The EPA's Analysis of Texas's Submittal
    
    A. General
    
        Texas has made the following changes to address the shortfalls that 
    were identified in the January 29, 1996, limited approval/limited 
    disapproval. First, Texas made several revisions to its emissions 
    estimates. These revisions were based on more recent information or 
    source surveys. From these studies, Texas concluded that, in some 
    instances, better estimates of emissions were available based on 
    locally derived emission factors rather than defaults based on national 
    data. Second, these same studies resulted, in some instances, in lower 
    projections of emissions in 1996 resulting in less growth to be offset. 
    Third, by better segregating the emission points that were subject to 
    specific rules, Texas identified additional emission reductions from 
    measures in the original 15 Percent Plan. Finally, Texas introduced a 
    new tail pipe I/M program called Texas Motorist Choice to replace the 
    previous vehicle I/M Program. The EPA is proposing that the combination 
    of the Texas Motorist Choice Program and the revisions to the Emission 
    Inventory and Growth Projections eliminate the shortfall identified in 
    the January 29, 1996, limited disapproval/limited approval.
    
    B. Emission Inventory Revisions
    
        The EPA approved the Texas 1990 base year inventory on November 8, 
    1994 (59 FR 55586). In the August 23, 1996, SIP revision, Texas 
    included revisions to the approved VOC inventory. The revisions have 
    been made based on more recently available information from source 
    surveys and other methods. Much of the information was developed as 
    part of bottom up surveys of area source categories performed as part 
    of the 1993 intensive ozone study in the Houston and Beaumont areas. 
    This study, called the Coastal Oxidant Assessment for Southeast Texas 
    (COAST), included a study of area source emissions. Traditional 
    emission inventory techniques use national or state level statistics 
    for the level of activity of a source category. For example, gallons of 
    gasoline sold statewide might be used to determine emissions from 
    Gasoline Stations. These emissions would be apportioned geographically 
    using a surrogate such as population. In the bottom-up approach, 
    surveys of actual facilities are used to determine emission levels. In 
    addition to the data collected from bottom up surveys, other 
    improvements were made to the 1990 inventory. A brief discussion of the 
    changes made to the inventory follows.
    Other Product Coatings, High Performance Maintenance and Other Special 
    Purpose Coatings
        These categories are all surface coating categories that were 
    estimated for the 1990 inventory using per capita emission factors 
    provided by the EPA. The per capita factors were developed from 
    national level estimates of usage of a product divided by the 1989 
    population. The documentation of the coatings and emissions covered by 
    these categories was not initially available. The Texas Natural 
    Resource Conservation Commission (TNRCC), with EPA approval, removed 
    these categories from the 1993 periodic emissions inventory. After 
    further study, documentation of the specific categories and coatings 
    was identified and the 1990 inventory has been adjusted appropriately. 
    Once the categories had been accurately identified, overlap with the 
    point source inventory could be accounted for and an improved area 
    source estimate was obtained.
    Marine Vessel Loading Losses
         Area source emissions in this category were based on estimates of 
    the total amount of VOCs loaded at Texas ports. Texas determined that 
    individual point sources had under reported emissions from this 
    category. When the revised point source emissions are considered, it 
    was determined that all of the emissions from this category in the 
    Houston area and the bulk of the emissions in the Beaumont area were 
    covered in the point source emission inventory. Therefore, the area 
    source estimate could be reduced in both areas.
    Surface Cleaning
        A contractor performed a bottom up survey of this category. This 
    survey was later expanded by TNRCC staff. The results of the survey 
    indicated that the national default estimate of emissions for this 
    category should be revised for the nonattainment areas in Texas.
    Architectural Coatings
        Texas revised emissions estimate by using more recent information 
    from the National Paint and Coatings Association combined with data 
    from surveys on thinner usage.
    Automobile Refinishing
        Texas used more recent information from the National Paint and 
    Coatings Association and source surveys to revise the emission 
    estimates for this category. In addition, using data from the 
    Department of Commerce on paint shipments, Texas projected a 
    substantial decrease in emissions between 1990 and 1994.
    Sheet, Strip and Coil
        This category was estimated for the 1990 emission factor of 1.5 
    tons/employee. The number of employees related to this industry was 
    obtained from the County Business Patterns for Standard Industrial 
    Classification (SIC) 3479. This SIC code includes many businesses not 
    engaged in coil coating operations. A list of companies involved in 
    coil coating operations was obtained from the national coil coaters 
    association. It was determined that all of the companies involved in 
    these operations were outside the nonattainment areas or were reporting 
    their emissions in the point source inventory. Therefore, including 
    their emissions in the area source emissions would be double counting. 
    Therefore, the area source emissions were removed from the inventory.
    Vessels With Outboards
        A telephone survey of pleasure craft owners in the Houston 
    Galveston and Beaumont Port Arthur areas was conducted. The survey 
    showed that 62 percent of boat usage occurs on weekends rather than on 
    weekdays. Previous emission estimates had allocated pleasure craft 
    emissions equally to each day of the week. It is important to know when 
    emissions occur in developing control strategies. In this case, 
    according to the EPA guidance, emissions are to be reduced from their 
    1990 summer time weekday levels. Therefore, Texas reduced the
    
    [[Page 37177]]
    
    expected weekday emissions based on the results of the survey. 
    Correspondingly, the weekend emissions were increased. A similar 
    adjustment had previously been made to the Dallas/Fort Worth inventory.
    Commercial Vessels
        This category of emission results from fuel combustion by ocean 
    going vessels, harbor vessels and the fishing fleet. Emissions were 
    originally estimated by using information from the Army Corps of 
    Engineers on freight traffic at harbors and allocating national fuel 
    usage to Texas. These emissions were revised based on a more recent 
    study performed by an EPA funded contractor in 1992. The revised 
    emission levels are based on estimates of activity levels for specific 
    categories of vessels.
    Generators <50 horsepower="" as="" part="" of="" the="" coast="" project,="" local="" area-specific="" construction="" and="" recreational="" area="" information,="" and="" more="" current="" information="" about="" horsepower="" distributions="" and="" equipment/populations,="" were="" utilized="" to="" obtain="" a="" more="" refined="" estimate="" of="" emissions="" in="" this="" category.="" residential="" lawnmowers="" similar="" to="" the="" survey="" performed="" of="" recreational="" boat="" users,="" a="" survey="" of="" homeowners="" was="" performed="" to="" determine="" when="" they="" actually="" cut="" their="" lawns.="" of="" those="" survey="" respondents="" whose="" lawns="" are="" cut="" by="" the="" resident,="" friend="" or="" neighbor,="" fifty-nine="" percent="" of="" the="" surveyed="" respondents="" reported="" that="" they="" cut="" their="" lawns="" on="" the="" weekends.="" texas="" reallocated="" the="" emissions="" based="" on="" the="" results="" of="" the="" survey.="" no="" adjustment="" was="" made="" to="" the="" emissions="" from="" commercial="" lawncare="" services.="" military="" aircraft="" this="" change="" reflects="" a="" change="" in="" the="" 1990="" base="" year="" inventory="" for="" the="" dallas/fort="" worth="" area="" based="" on="" a="" 1992="" environmental="" impact="" statement="" (eis)="" for="" carswell="" air="" force="" base.="" this="" eis="" more="" accurately="" reflected="" the="" actual="" aircraft="" used="" at="" the="" base="" when="" compared="" to="" the="" original="" emission="" estimate.="" this="" change="" resulted="" in="" a="" substantial="" increase="" in="" the="" 1990="" emissions="" estimate.="" the="" base="" has="" undergone="" a="" substantial="" realignment="" since="" 1990="" resulting="" in="" a="" significant="" decrease="" in="" emissions="" projected="" for="" 1996.="" 1994="" quality="" assurance="" efforts="" during="" 1994,="" the="" tnrcc="" completed="" a="" thorough="" evaluation="" of="" the="" 1990="" point="" source="" inventory="" and="" discovered="" that="" emissions="" from="" facilities="" in="" several="" sic="" codes="" were="" misplaced="" under="" the="" wrong="" emissions="" category.="" this="" effort="" resulted="" in="" significant="" changes="" to="" some="" emissions="" categories.="" the="" realignment="" of="" emissions="" did="" not="" affect="" the="" total="" emissions.="" the="" realignment="" of="" emissions="" did="" have="" the="" effect="" of="" increasing="" the="" amount="" of="" reductions="" that="" were="" expected="" for="" certain="" control="" measures="" and="" decreasing="" the="" amount="" of="" emission="" reductions="" expected="" from="" other="" control="" measures.="" the="" epa="" is="" proposing="" to="" approve="" these="" revisions="" to="" the="" 1990="" base="" year="" voc="" inventory.="" the="" originally="" approved="" biogenic="" emissions="" are="" unchanged.="" a="" summary="" of="" the="" revised="" 1990="" emissions="" inventory="" for="" the="" three="" areas="" is="" included="" in="" table="" 1.="" table="" 1.--1990="" base="" year="" emissions="" inventory="" ----------------------------------------------------------------------------------------------------------------="" point="" area="" on-road="" non-road="" total="" ----------------------------------------------------------------------------------------------------------------="" dallas/fort="" worth..............................="" 65.27="" 174.02="" 306.60="" 105.19="" 651.08="" el="" paso........................................="" 9.45="" 24.94="" 38.27="" 10.99="" 83.65="" houston........................................="" 481.95="" 200.07="" 251.72="" 129.98="" 1063.72="" ----------------------------------------------------------------------------------------------------------------="" c.="" calculation="" of="" the="" 1996="" target="" level="" of="" emissions="" texas="" subtracted="" the="" noncreditable="" reductions="" from="" the="" fmvcp="" and="" reid="" vapor="" pressure="" program="" from="" the="" 1990="" emissions="" inventory.="" this="" subtraction="" results="" in="" the="" 1990="" adjusted="" inventory.="" the="" total="" required="" emission="" reduction="" required="" to="" meet="" the="" 15="" percent="" plan="" requirement="" equals="" the="" sum="" of="" 15="" percent="" of="" the="" adjusted="" inventory,="" plus="" reductions="" to="" offset="" any="" growth="" that="" takes="" place="" between="" 1990="" and="" 1996,="" plus="" any="" reductions="" that="" result="" from="" corrections="" to="" the="" i/m="" or="" voc="" ract="" rules.="" table="" 2="" summarizes="" the="" calculations="" for="" the="" dallas/fort="" worth,="" el="" paso="" and="" houston="" areas.="" table="" 2.--calculation="" of="" required="" reductions="" (tons/day)="" ------------------------------------------------------------------------="" dallas/fort="" houston/="" worth="" el="" paso="" galveston="" ------------------------------------------------------------------------="" 1990="" emission="" inventory..........="" 651.08="" 83.65="" 1063.72="" 1990="" adjusted....................="" 548.83="" 69.40="" 975.39="" 15%="" of="" adjusted..................="" 82.32="" 10.41="" 146.31="" ract="" and="" i/m="" corr................="" .99="" 1.57="" 16.31="" 1996="" target......................="" 465.52="" 57.42="" 812.77="" 1996="">1 Projection................       583.07        73.61      1026.27
    Required Reduction...............       117.55        16.19       213.27
    ------------------------------------------------------------------------
    1 1996 forecasted emissions with growth and pre-1990 controls.          
    
    D. Projections of Growth
    
        As can be seen from the calculations in Table 2, an important 
    component of calculating the required emission reductions is to project 
    the amount of growth in emissions that is expected between 1990 and 
    1996. Since the 1996 emissions are related to the 1990 emissions, the 
    changes in the 1990 emission inventory resulted in changes to the 1996 
    projections. In addition, as discussed previously, Texas has projected 
    reductions in the emissions from surface cleaning, auto refinishing and 
    military aircraft emissions from 1990 levels.
    
    E. Deficiencies Identified in the January 29, 1996, Federal Register
    
        In the January 29, 1996, Federal Register, the EPA identified 
    several areas where it was believed that Texas had projected too much 
    emission reduction for particular control measures. The EPA has 
    reviewed the
    
    [[Page 37178]]
    
    State's August 9, 1996, SIP revision and believes that it addresses the 
    EPA's previously identified concerns. A brief discussion of the 
    previously identified concerns and how they have been addressed 
    follows:
    El Paso Stage II
        In the previous submittal, the EPA believed that for the El Paso 
    area, too much emission benefit was projected for this control measure. 
    Texas, in the August 23, 1996, SIP revision, corrects this problem by 
    adjusting the projected control efficiency from 98 percent to 95 
    percent.
    Architectural and Industrial Maintenance Rules
        Texas projected emission reductions for this category based on past 
    EPA guidance. The guidance, however, was changed in a memorandum dated 
    March 22, 1995, (Credit for the 15 Percent Rate-of-Progress Plans for 
    Reductions from the Architectural and Industrial Maintenance (AIM) 
    Coating Rule). In the August 9, 1996, SIP revision, the emission 
    reduction estimate is revised based on the more recent guidance.
        Emission reductions from the AIM rule are based on the rule 
    proposed by the EPA on June 25, 1995, which expected compliance by 
    April 1997. Subsequently, the issuance of the rule has been delayed. 
    The EPA has negotiated a compliance date of no earlier than January 1, 
    1998. The previous guidance allowed States to take emission reduction 
    credit for the AIM rule even though the reductions were not expected to 
    occur until April 1997. The EPA believes that even though the 
    compliance date has been pushed back to January 1, 1998, the emission 
    reduction from the national AIM rule is creditable in State 15 Percent 
    Plans.
    Industrial Wastewater
        In the January 29, 1996, Federal Register, the EPA proposed that 
    Texas had projected too high a control efficiency for this control 
    measure. The EPA continues to believe that the control efficiency 
    projected by Texas for this measure is too high. Texas, however, 
    believes that the rule effectiveness originally used for this control 
    measure was too low. The EPA agrees that this is likely the case. The 
    combination of rule effectiveness and control efficiency determine the 
    overall reductions. Therefore, the EPA believes that the overall 
    reductions should be accurate. Texas has committed to study emissions 
    from this category to determine actual control efficiency and rule 
    effectiveness for the category. In light of the above, the EPA believes 
    that it is appropriate to propose approval of these projected emission 
    reductions. The EPA will work with Texas to further study the emissions 
    from this source category as part of determining whether RACT has been 
    instituted for this category of emissions.
    Employee Commute Options (ECO)
        In the Houston area, Texas previously relied on this program to 
    provide emission reductions. The EPA approved the State ECO program on 
    March 7, 1995 (60 FR 12442). Public Law 104-70, which was passed by 
    Congress in December 1995, gave flexibility to the states in meeting 
    the requirements of the ECO program. Specifically, the legislation 
    allowed states, that prior to its enactment were required to implement 
    ECO programs, to ``remove such provisions from the State Implementation 
    Plan, or withdraw its submission, if the state notifies the 
    Administrator, in writing, that the state has undertaken, or will 
    undertake, one or more alternative methods that will achieve emission 
    reductions equivalent to those to be achieved by the removed or 
    withdrawn provisions.'' The State of Texas has removed the ECO 
    emissions reduction credit from the Houston 15 Percent Plan and does 
    not rely on the emission reduction of 1.81 ton/day which was projected 
    under the ECO program. In addition, the Governor of Texas has notified 
    EPA and requested removal of the Texas ECO rule from the SIP. For the 
    purposes of the 15 Percent SIP, the State has satisfied the provisions 
    of the 1995 legislation. The EPA will act on the Governor's request 
    under a separate Federal Register action to address the specific 
    requirements of the ECO program and its removal from the SIP.
    Marine Vessel Loading
        In the January 29, 1996 Federal Register, the EPA noted that Texas 
    had projected reductions from their Marine Vessel Loading Rule for area 
    sources (sources with less than 25 tons/year emissions) in this 
    category. The rule, however, only covered facilities with emissions 
    greater than 100 tons/year. Therefore, the emission reductions for area 
    sources could not be credited. As discussed previously, in subsequent 
    studies, Texas has learned that there are no area source emissions in 
    this category in the Houston area. Therefore, Texas has revised its 
    emission reduction estimates to remove the area source emission 
    reductions.
    Acetone Substitution
        Texas had projected emission reductions for the rules to regulate 
    the cultured (synthetic) marble and fiber reinforced plastic 
    operations. The EPA, however, has added acetone to the list of non-
    reactive substances. Texas, in the August 9, 1996, submittal, has 
    removed emission reduction credit for these rules.
    Vehicle Inspection and Maintenance (I/M)
        The January 29, 1996 proposed limited approval/limited disapproval 
    did not agree with the emission reductions projected for Vehicle I/M 
    because Texas had discontinued the program after submittal of the 15 
    Percent Plan. On June 27, 1996, the Region received the State's revised 
    I/M plan. The plan contained provisions for the implementation of a 
    decentralized two-speed idle testing program. Testing is required 
    annually in the counties of Harris, Dallas, Tarrant, and El Paso. The 
    plan was submitted under the provisions of the National Highway Systems 
    Designations Act of 1995 (NHSDA). The plan also allows for, but does 
    not require, loaded mode testing in which case the test would be 
    biennial. There are no loaded mode testing commitments or credits 
    contained in the I/M or 15% plan SIPs.
        In the Houston area, this is largely a new program. In the El Paso 
    and Dallas/Fort Worth areas the existing program is strengthened by 
    provisions for remote sensing, a real time data link of test stations, 
    auditing and enforcement, repair effectiveness support, performance 
    monitoring and evaluation and gas cap pressure testing. The plan start 
    dates were July 1, 1996, for Dallas/Fort Worth and January 1, 1997, for 
    Houston and El Paso.
        On October 3, 1996, the Region proposed conditional interim 
    approval of the revised I/M plan (61 FR 51651). The proposal was 
    conditional because the State needed additional legal authority to 
    implement portions of its plan including, test on resale provisions, 
    enforcement of remote sensing, and authority for re-registration 
    denial. The approval was interim because under the provisions of the 
    NHDSA the State's estimates regarding network type were to be based on 
    good faith estimates with the credits to be evaluated at the end of an 
    18 month interim approval period.
        The EPA has reviewed the modeling of the projected emission 
    reductions for the revised I/M program provided by Texas. With the 
    exception of the gas cap check, Texas has projected emissions
    
    [[Page 37179]]
    
    reductions that are consistent with EPA guidance.
        However, it is the EPA's position that Texas projected more 
    emission reductions than the EPA feels is appropriate for their gas cap 
    check. The EPA has performed modeling to assess the amount of over 
    estimation. For the Houston, Dallas/Fort Worth and El Paso areas, the 
    amount of over estimation is estimated to be 0.5 tons/day, 0.8 tons/
    day, and 0.2 tons/day respectively. In each of these areas there are 
    excess emission reductions that are sufficient to cover this over 
    estimation.
        The I/M Program was challenged in state court. The Court recently 
    ruled that the two Senate Bills (19 and 178) challenged were an 
    unconstitutional ``taking'' and an unconstitutional interference with 
    contract, Texas Testing Technologies I, et al. v. The State of Texas, 
    No. 95-1462 (126th Dist. Court, Travis County, Texas) (April 21, 1997). 
    The suit is essentially a contract dispute with the State and is hence 
    irrelevant to today's proposal to accept the State's projected emission 
    reductions in the 15% SIP. The State has adequate legal authority 
    without the two Senate Bills' language to implement and enforce an I/M 
    program (except for the condititons noted in the October 1996 Federal 
    Register proposal). Therefore, EPA is proposing to accept the State's 
    projected emissions reductions with the exception of the projected 
    emissions from the gas cap check.
    
    F. Impact of Vehicle I/M Start Dates
    
        Section 182(b)(1) of the Act requires that States containing ozone 
    nonattainment areas classified as Moderate or above prepare SIPs that 
    provide for a 15 percent VOC emissions reduction by November 15, 1996. 
    Most of the 15 percent SIPs originally submitted to the EPA contained 
    enhanced I/M programs because this program achieves more VOC emission 
    reductions than most, if not all other, control strategies. However, 
    because most States experienced substantial difficulties with these 
    enhanced I/M programs, only a few States are currently actually testing 
    cars using their original enhanced I/M protocols.
        In September, 1995, EPA finalized revisions to its enhanced I/M 
    rule allowing states significant flexibility in designing I/M programs 
    appropriate for their needs (60 FR 48029). Subsequently, Congress 
    enacted the NHSDA, which provides States with more flexibility in 
    determining the design of enhanced I/M programs. The substantial amount 
    of time needed by States to re-design enhanced I/M programs in 
    accordance with the guidance contained within the NHSDA, secure state 
    legislative approval when necessary, and set up the infrastructure to 
    perform the testing program precluded States that revise their I/M 
    programs from obtaining emission reductions from such revised programs 
    by November 15, 1996.
        Given the heavy reliance by many States upon enhanced I/M programs 
    to help achieve the 15 Percent VOC emissions reduction required under 
    section 182(b)(1) of the Act, and the recent NHSDA and regulatory 
    changes regarding enhanced I/M programs, the EPA recognized that it was 
    no longer possible for many states to achieve the portion of the 15 
    percent reductions that is attributed to I/M by November 15, 1996. 
    Under these circumstances, disapproval of the 15 percent SIPs would 
    serve no purpose. Consequently, under certain circumstances, the EPA 
    will propose to allow States that pursue redesign of enhanced I/M 
    programs to receive emission reduction credit from these programs 
    within their 15 Percent Plans, even though the emissions reductions 
    from the I/M program will occur after November 15, 1996.
        Specifically, the EPA will propose approval of 15 percent SIPs if 
    the emissions reductions from the revised, enhanced I/M programs, as 
    well as from the other 15 Percent Plan measures, will achieve the 15 
    Percent target level as soon after November 15, 1996, as practicable. 
    To make this ``as soon as practicable'' determination, the EPA must 
    determine that the 15 Percent SIP contains all VOC control strategies 
    that are practicable for the nonattainment area in question and that 
    meaningfully accelerate the date by which the 15% level is achieved. 
    EPA does not believe that measures meaningfully accelerate the 15 
    Percent date if they provide only an insignificant amount of 
    reductions.
    
    G. Acceptability of Texas 15 Percent Plans
    
        In the case of the Dallas/Fort Worth, El Paso and Houston areas, 
    Texas has submitted 15 Percent SIP revisions that demonstrate they 
    achieve the necessary 15 Percent reductions from I/M by the end of 
    1997. The Texas I/M program is an annual program which began in Dallas/
    Fort Worth on July 1, 1996, and in El Paso and Houston on January 1, 
    1997. Texas submitted 15 Percent SIPs for Dallas/Fort Worth, El Paso, 
    and Houston that included creditable control measures. Emission 
    reductions resulting from the implementation of the state adopted 
    control measures in the 15 Percent Plans have already occurred. Texas 
    has relied on reductions from the AIM rule. The AIM reductions are 
    expected to occur by January 1, 1998. Therefore, the EPA believes that 
    these plans will achieve the required reductions by January 1, 1998. 
    The EPA believes that these SIPs contain measures, including I/M, that 
    achieve the required reductions as soon as practicable for these 
    nonattainment areas.
        The EPA has examined other potentially available SIP measures to 
    determine if they are practicable for the Dallas/Fort Worth, El Paso 
    and Houston Areas and if they would meaningfully accelerate the date by 
    which these areas reach the 15 Percent level of reductions. EPA 
    proposes to determine that the SIPs for the Dallas/Fort Worth, El Paso 
    and Houston Areas contain the appropriate measures. For the Dallas/Fort 
    Worth, El Paso and Houston area no additional measures were identified 
    that could be implemented to meaningfully accelerate the date by which 
    the 15 Percent target level could be attained. For a complete 
    discussion of the control measures considered, please see the Technical 
    Support Document for this action.
        Tables 3 through 5 summarize the control measures and the 
    associated emission reductions used to achieve the 15 Percent targets.
    
     Table 3.--Summary of Emission Reductions: Dallas/Fort Worth (Tons/Day) 
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Reduction.........................................       117.55
    Creditable Reductions:                                                  
        RACT Catch-up..........................................         4.03
        Stage II...............................................        18.19
        Aircraft Stage III.....................................         0.60
        Other VOC storage, transport...........................         0.05
        I/M, FMVCP Tier I, Reformulated Gas....................        69.46
        Bakeries...............................................         0.12
        Municipal Landfills....................................         3.49
    
    [[Page 37180]]
    
                                                                            
        Carswell Fire Training Pit Closure.....................         1.20
        RE Improvements........................................         4.86
        Gas Utility Engines....................................         7.76
        Reform Off Road........................................         4.23
        TCMs...................................................         6.94
        Consumer/Commercial Products...........................         4.09
        Gasoline Terminals.....................................         2.17
        Fugitives..............................................         0.07
        Wood Furniture.........................................         1.35
        AIM....................................................         4.77
        Traffic Markings.......................................         0.56
        High Performance Maintenance...........................         0.96
        Other Special Purpose Coatings.........................         1.18
                                                                ------------
            Total..............................................       136.07
    ------------------------------------------------------------------------
    
    
            Table 4.--Summary Emission Reductions: El Paso (Tons/Day)       
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Reduction.........................................        16.19
    Creditable Reductions:                                                  
        RACT Catch-up..........................................         0.71
        Stage II...............................................         1.87
        Aircraft Stage III.....................................         0.02
        FMVCP Tier I, I/M, Low RVP.............................         7.37
        Offset Printing........................................         0.56
        Vessel Loading.........................................         0.32
        Fugitives..............................................         1.13
        RE Improvements........................................         1.63
        Gas Utility Engines....................................         0.88
        TCMs...................................................         0.35
        Architectural Coatings.................................         0.80
        Consumer/Commercial Products...........................         0.70
        Municipal Landfills....................................         0.21
        Industrial Wastewater..................................         0.27
        Bulk Gasoline Terminals................................         0.77
        Outdoor Burning........................................         0.40
        Wood Furniture.........................................         0.04
        RVP (off-road).........................................         0.09
        Traffic Markings.......................................         0.09
        High Performance Maintenance...........................         0.12
                                                                ------------
            Total..............................................        18.32
    ------------------------------------------------------------------------
    
    
       Table 5.--Summary Emission Reductions: Houston/Galveston (Tons/Day)  
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Reduction........................................        213.27
    Creditable Reductions:                                                  
        RACT Catch-up.........................................         27.81
        TSDF..................................................         13.48
        Stage II..............................................         16.89
        General Vent Gas......................................         13.97
        Reform Gas, I/M, Tier I FMVCP.........................         40.41
        Reform (Off Road).....................................          5.30
        Vessel Cleaning/Degassing.............................          3.01
        Stage I...............................................          6.26
        SOCMI Rct. & Dist.....................................          1.68
        Fugitive Controls.....................................         46.03
        RE Improvements.......................................         12.82
        Gas Utility Engines...................................          8.47
        TCMs..................................................          0.36
        Consumer/Commercial Products..........................          4.44
        Marine Vessel loading.................................         15.73
        Gasoline Terminals....................................          3.36
        Wood Coating..........................................          0.37
        Bakeries..............................................          0.22
        Architectural Coatings................................          5.03
        Industrial Wastewater.................................          8.56
        Traffic Markings......................................          0.56
        Other Special Purpose.................................          1.24
        High Performance Maintenance..........................          0.99
                                                               -------------
    
    [[Page 37181]]
    
                                                                            
            Total.............................................        237   
    ------------------------------------------------------------------------
    
    III. Motor Vehicle Emissions Budgets
    
        The Clean Air Act, section 176(c), and the transportation 
    conformity rule require the states to establish motor vehicle emissions 
    budgets (MVEB) in any control strategy SIP that is submitted for 
    attainment and maintenance of the National Ambient Air Quality 
    Standards. These budgets will be used to determine if future 
    transportation plans conform with State air quality plans. The budget 
    for each area has been calculated by projecting the 1996 Motor Vehicle 
    emissions and subtracting the emission reductions from planned emission 
    control programs. The State of Texas has established a MVEB for VOC for 
    Dallas/Fort Worth, El Paso, and Houston. The EPA is proposing to give 
    conditional interim approval of the following MVEB:
    
               Table 6.--1996 VOC Motor Vehicle Emissions Budgets           
    ------------------------------------------------------------------------
                                                                   VOC (Tons
                                 Area                               per Day)
    ------------------------------------------------------------------------
    Dallas/Fort Worth............................................     165.49
    El Paso......................................................      21.63
    Houston......................................................     152.12
    ------------------------------------------------------------------------
    
    IV. Contingency Measures
    
        Ozone areas classified as moderate or above must include in their 
    submittals, under section 172(c)(9) of the Act, contingency measures to 
    be implemented if Reasonable Further Progress (RFP) is not achieved or 
    if the standard is not attained by the applicable date. The General 
    Preamble to Title I, (57 FR 13498) states that the contingency measures 
    should, at a minimum, ensure that an appropriate level of emissions 
    reduction progress continues to be made if attainment or RFP is not 
    achieved and additional planning by the State is needed. Therefore, the 
    EPA interprets the Act to require States with moderate and above ozone 
    nonattainment areas to include sufficient contingency measures in the 
    November 1993 submittal, so that upon implementation of such measures, 
    additional emissions reductions of up to three percent of the adjusted 
    base year inventory (or a lesser percentage that will make up the 
    identified shortfall) would be achieved in the year after the failure 
    has been identified. States must show that their contingency measures 
    can be implemented with minimal further action on their part and with 
    no additional rulemaking actions such as public hearings or legislative 
    review .
    
    Analysis of Specific Contingency Measures
    
        The following is a discussion of each of the contingency measures 
    that have been included in the SIP submittals and an analysis of their 
    acceptableness.
    Degassing or Cleaning of Vessels
        This measure was adopted as part of the 15 Percent Plans for the 
    Houston area. It was also adopted as a contingency measure in the El 
    Paso and Dallas/Fort Worth areas. The EPA believes the reductions that 
    have been projected if this measure is needed as a contingency measure 
    are appropriate.
    Dry Cleaning Naphtha
        This measure adopted at 30 TAC 115.552 as a contingency measure 
    would call for control of dry cleaners that use petroleum naphtha. This 
    rule was adopted as a contingency measure in the Dallas/Fort Worth, El 
    Paso, and Houston areas. The EPA has evaluated this measure and 
    believes that it will achieve the projected reductions in the event it 
    must be implemented.
    Offset Printing
        Regulation of emissions from offset printing was adopted as a 15 
    Percent Plan measure in the El Paso area. It was also adopted as a 
    contingency measure in the Houston and Dallas/Fort Worth areas. The EPA 
    believes that the emission reductions that have been projected if it is 
    necessary to implement these rules are appropriate.
    Commercial Bakeries
        Texas adopted control measures for major source bakeries in Dallas/
    Fort Worth and Houston as part of the 15 Percent Plans. Texas also 
    adopted for Dallas and El Paso, a contingency measure for minor source 
    bakeries to be controlled in the event a milestone demonstration or 
    attainment date is missed. The EPA believes the reductions that are 
    projected if these rules are implemented are appropriate.
    Transportation Control Measures (TCM)
        In Dallas/Fort Worth and El Paso, Texas has projected that 
    additional emission reductions will come from transportation control 
    measures that will be implemented in the 1997 time frame. TCMs are 
    measures such as High Occupancy Vehicle lanes that reduce emissions by 
    modifying the transportation system. The EPA believes the projected 
    emission reductions have been quantified appropriately.
    Gas Utility Engines
         In all three areas, Texas has projected emission reductions that 
    will occur from the small engine rule in the year following the 
    required milestone demonstration or 1997. The EPA believes that these 
    reductions have been quantified appropriately.
    Vehicle Inspection and Maintenance and Tier I
        All of the contingency plans rely to some extent on reductions from 
    the inspection and maintenance program. As discussed previously, the 
    planned I/M reductions are not expected to occur until the end of 1997. 
    Additional reductions from I/M cannot be expected to occur in the time 
    frame envisioned for contingency measures. Therefore, these reductions 
    cannot be credited toward the contingency measures.
        However, reductions in excess of the 15 percent plans and 
    requirements achieved from measures enumerated above are sufficient to 
    ensure that the contingency measure target of three percent is met. If 
    Texas has to implement these measures for contingency purposes or for 
    future plans then the State will have one year to backfill the 
    contingency plan.
    
     Table 7.--Summary of Acceptable Contingency Measures: Dallas/Fort Worth
                                   (Tons/Day)                               
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Contingency.......................................        16.46
    Creditable Contingency Reductions:                                      
        Vessel Cleaning........................................         0.18
        Dry Cleaning Naphtha...................................         2.22
        Offset Printing........................................         0.85
        Commercial Bakeries....................................         0.15
    
    [[Page 37182]]
    
                                                                            
        TCMs...................................................         2.03
        Gas Utility Engines 1997...............................         0.73
        Excess reductions from 15 Percent measures.............        18.52
                                                                ------------
            Total..............................................        24.68
    ------------------------------------------------------------------------
    
    
     Table 8.--Summary of Contingency Measure Reductions: El Paso (tons/day)
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Contingency.......................................         2.08
    Creditable Contingency Reductions:                                      
        Vessel Cleaning........................................         0.09
        Dry Cleaning Naphtha...................................         0.30
        Commercial Bakeries....................................         0.05
        TCMs...................................................         0.53
        Gas Utility Engines 1997...............................         0.08
        Excess reductions from 15 percent measures.............         2.13
                                                                ------------
            Total..............................................         1.74
    ------------------------------------------------------------------------
    
    
     Table 9.--Summary of Contingency Measure Reductions: Houston/Galveston 
                                   (tons/day)                               
    ------------------------------------------------------------------------
                                                                            
    ------------------------------------------------------------------------
    Required Contingency.......................................        29.26
    Creditable Contingency Reductions:                                      
        Municipal Landfills....................................         3.99
        Dry Cleaning-Naphtha...................................         1.88
        Offset Printing........................................         2.20
        Gas Utility Engines 1997...............................         0.76
        Excess Reductions from 15% measures....................        23.73
                                                                ------------
            Total..............................................        32.56
    ------------------------------------------------------------------------
    
    V. Rulemaking Action
    
        The EPA has evaluated the Emissions Inventory, 15 Percent Plans and 
    contingency measures submitted as part of the August 23, 1996 SIP 
    revision for Texas. The EPA has also reviewed the MVEB associated with 
    these 15% plans. The EPA proposes to give full approval of the 
    revisions to the 1990 base year inventory for Dallas/Fort Worth, El 
    Paso and Houston/Galveston Areas. The EPA proposes to give Conditional 
    Interim approval of the 15 Percent Plans and associated MVEB for the 
    three areas. Finally, the EPA proposes to give full approval of the 
    contingency plans for these three areas.
        The 15 Percent Plans for the three areas can only receive a 
    conditional interim approval because the plans all rely in part on 
    emission reductions from the revised I/M program. The EPA proposed 
    conditional interim approval of the I/M program for the three areas on 
    October 3, 1996. Therefore, the 15 Percent Plans can only receive 
    conditional interim approval.
    
    Interim Approval
    
        The NHSDA allows States to make a ``good faith'' estimate of the 
    reductions that will be achieved by the I/M program. The I/M program 
    can be given interim approval during an 18 month period during which 
    the program is evaluated to validate the ``good faith'' estimate. At 
    the end of the 18-month interim period, the interim approval status for 
    the I/M program will automatically lapse pursuant to the NHSDA. It is 
    expected that the State will, at that time, be able to make a 
    demonstration of the program's effectiveness using an appropriate 
    evaluation criteria. If the State fails to provide a demonstration of 
    the program's effectiveness to EPA within 18 months of the final 
    interim I/M rulemaking, the interim approval will lapse, and EPA will 
    be forced to disapprove the State's permanent I/M SIP revision. An I/M 
    disapproval will result in a 15 Percent Plan disapproval unless 
    substitute emission reductions are submitted. Information from the I/M 
    program evaluation showing the program achieves a lesser amount of 
    reductions than originally projected will be used in the final action 
    on the 15 Percent Plans. Further discussion of the requirements for 
    final approval of the
    I/M program are discussed in the October 3, 1996, Federal Register (61 
    FR 51651).
    
    Conditional Approval
    
        The EPA is proposing a conditional approval of the 15 Percent Plans 
    contingent upon the State meeting the conditions outlined in the 
    proposed I/M conditional approval. These include the State obtaining 
    the appropriate legislative authority as needed to implement the 
    program outlined in the Governor's Executive Order. The EPA proposes 
    that if the State fails to obtain the needed additional legal authority 
    within 12 months of final conditional interim approval of the 15 
    Percent Plans, the 15 Percent Plan approval will convert to a 
    disapproval after a letter is sent notifying the State of the 
    conversion to disapproval.
        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.
    
    VI. Administrative Requirements
    
    A. Executive Order (E.O.) 12866
    
        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
    
    [[Page 37183]]
    
    Radiation. The Office of Management and Budget has exempted this 
    regulatory action from E.O. 12866 review.
    
    B. Regulatory Flexibility Act
    
        Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
    must prepare a regulatory flexibility analysis assessing the impact of 
    any proposed or final rule on small entities. See 5 U.S.C. 603 and 604. 
    Alternatively, EPA may certify that the rule will not have a 
    significant impact on a substantial number of small entities. Small 
    entities include small businesses, small not-for-profit enterprises, 
    and government entities with jurisdiction over populations of less than 
    50,000.
        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, I certify that it does not have a significant impact on 
    any small entities affected. Moreover, due to the nature of the 
    Federal-State relationship under the Act, preparation of a flexibility 
    analysis would constitute Federal inquiry into the economic 
    reasonableness of State action. The Act forbids EPA to base its actions 
    concerning SIPs on such grounds. See Union Electric Co. v. U.S. EPA, 
    427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).
        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.
    
    C. Unfunded Mandates
    
        Under Section 202 of the Unfunded Mandates Reform Act of 1995, 
    signed into law on March 22, 1995, EPA must prepare a budgetary impact 
    statement to accompany any proposed or final rule that includes a 
    Federal mandate that may result in estimated costs to State, local, or 
    tribal governments in the aggregate; or to private sector, of $100 
    million or more. Under Section 205, EPA must select the most cost-
    effective and least burdensome alternative that achieves the objectives 
    of the rule and is consistent with statutory requirements. Section 203 
    requires EPA to establish a plan for informing and advising any small 
    governments that may be significantly or uniquely impacted by the rule.
        The EPA has determined that the conditional approval action 
    proposed does not include a Federal mandate that may result in 
    estimated costs of $100 million or more to either State, local, or 
    tribal governments in the aggregate, or to the private sector. This 
    Federal action approves preexisting requirements under State or local 
    law, and imposes no new Federal 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, Carbon monoxide, 
    Hydrocarbons, Incorporation by reference, Intergovernmental relations, 
    Nitrogen dioxide, Ozone, Reporting and recordkeeping requirements.
    
        Dated: July 1, 1997.
    Jerry Clifford,
    Acting Regional Administrator.
    [FR Doc. 97-18244 Filed 7-10-97; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
07/11/1997
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed conditional interim rule.
Document Number:
97-18244
Dates:
Comments must be received on or before August 11, 1997.
Pages:
37175-37183 (9 pages)
Docket Numbers:
TX80-1-7329, FRL-5856-4
PDF File:
97-18244.pdf
CFR: (1)
40 CFR 52