94-23983. Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of California; Approval of the Maintenance Plan for the San Francisco Bay Area and Redesignation of the San Francisco Bay ...  

  • [Federal Register Volume 59, Number 187 (Wednesday, September 28, 1994)]
    [Unknown Section]
    [Page ]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-23983]
    
    
    [Federal Register: September 28, 1994]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Parts 52 and 81
    
    [CA-64-1-6504; FRL-5080-5]
    
    
    Approval and Promulgation of Implementation Plans and Designation 
    of Areas for Air Quality Planning Purposes; State of California; 
    Approval of the Maintenance Plan for the San Francisco Bay Area and 
    Redesignation of the San Francisco Bay Area Ozone Nonattainment Area to 
    Attainment; Approval of Emissions Inventory; Approval of NOX RACT 
    Exemption Petition
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Notice of proposed rulemaking (NPR).
    SUMMARY: On November 12, 1993 the California Air Resources Board (CARB) 
    submitted a maintenance plan and a request to redesignate the San 
    Francisco Bay Area ozone nonattainment area from nonattainment to 
    attainment. The ozone nonattainment area includes the following 
    counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, 
    Santa Clara, Solano (part), and Sonoma (part). Under the Clean Air Act, 
    nonattainment areas may be redesignated to attainment if sufficient 
    data are available to warrant the redesignation and the area meets the 
    other Clean Air Act redesignation requirements.
        In today's action, EPA is proposing to approve the State of 
    California's submittal because it meets the maintenance plan and 
    redesignation requirements. In addition, EPA is proposing to approve 
    the nitrogen oxides (NOx) Reasonably Available Control Technology 
    (RACT) exemption petition submitted by the Bay Area Air Quality 
    Management District (BAAQMD) on April 15, 1994 under section 182(f). 
    Finally, EPA is proposing to expedite the approval of the annual and 
    peak season 1990 inventory of actual ozone precursor emissions required 
    by section 182(a)(1) by parallel processing the emissions inventory.
    
    DATES: Comments must be received by December 27, 1994.
    
    ADDRESSES: Written comments should be addressed to: David P. Howekamp, 
    Director, Air and Toxics Division (A-1), United States Environmental 
    Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, 
    California, 94105.
        Copies of the redesignation request, State submittal and the EPA's 
    technical support document (TSD) are available for public review at the 
    above address and at the California Air Resources Board, 2020 L Street, 
    Sacramento, CA 95814.
    
    FOR FURTHER INFORMATION CONTACT: Wallace Woo, Chief, Plans Development 
    Section (A-2-2), Air Planning Branch, United States Environmental 
    Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, 
    California, 94105, (415) 744-1207.
    
    SUPPLEMENTARY INFORMATION:
    
    Table of Contents
    
    I. Background.
    II. Evaluation Criteria.
    III. Review of State Submittal.
        1. Attainment of the Standard
        A. The Ozone Standard
        B. The BAAQMD Monitoring Record
        C. The Alum Rock Monitor
        2. Meeting the Applicable Requirements of Section 110 and Part D
        A. Section 110 Requirements
        B. Part D Requirements
        B1. Subpart 1 of Part D--Section 172(c) Plan Provisions
        B2. Subpart 1 of Part D--Section 176(c) Conformity Plan 
    Provisions
        B3. Subpart 2 of Part D--Sections 182(a) and 182(b) Requirements
        B4. Section 182(f) NOX RACT Exemption Petition
        a. Section 182(f) Requirements and Exemption Provisions
        b. BAAQMD NOX RACT Exemption Petition
        c. Proposed Action
        3. Fully Approved SIP Under Section 110(k) of the Act
        4. Improvement in Air Quality Due to Permanent and Enforceable 
    Measures
        5. Fully Approved Maintenance Plan Under Section 175A
        5A. Emission Inventory--Base Year Inventory
        5B. Demonstration of Maintenance--Projected Inventories
        5C. Verification of Continued Attainment
        5D. Contingency Plan
        5E. Subsequent Maintenance Plan Revisions
    IV. Potential Impact of California FIP and SIPs
    V. Conclusion
    
    I. Background
    
        The Clean Air Act, as amended in 1977 (1977 Act) required areas 
    that were designated nonattainment based on a failure to meet the ozone 
    national ambient air quality standard (NAAQS) to develop SIPs with 
    sufficient control measures to expeditiously attain and maintain the 
    standard. The San Francisco Bay Area was designated under section 107 
    of the 1977 Act as nonattainment with respect to the ozone NAAQS on 
    March 3, 1978 (40 CFR 81.305). In accordance with section 110 of the 
    1977 Act, the California Air Resources Board (CARB) submitted an ozone 
    SIP as required by part D of the 1977 Act on July 25, 1979, which EPA 
    took final action to approve in part, disapprove in part (lack of legal 
    authority and legislation to implement an inspection and maintenance 
    (I/M) program) and conditionally approve in part (resource and 
    extension requirements for transportation control measures with respect 
    to part D) on March 19, 1982 (47 FR 11866) with respect to the 
    requirements of section 110 and part D of the 1977 Act. On July 26, 
    1983, CARB submitted the legislation and implementation schedule for an 
    I/M program which EPA fully approved on November 25, 1983 (48 FR 
    53114). This approval rescinded EPA's earlier disapproval of the San 
    Francisco Bay Area's SIP. On February 4, 1983, CARB submitted a SIP 
    revision for the San Francisco Bay Area which projected attainment of 
    the ozone and carbon monoxide NAAQS by 1987. EPA published final 
    approval of this SIP revision and removed the earlier conditional 
    approval for the San Francisco Bay Area on December 28, 1983 (48 FR 
    57130). In its SIP, CARB projected that the San Francisco Bay Area 
    nonattainment area would attain the ozone standard by 1987. The area 
    failed to attain the standard.
        In a May 26, 1988 letter, EPA issued a finding under section 
    110(a)(2)(H) of the Clean Air Act (the 1988 SIP-Call) that California's 
    SIP for the San Francisco Bay Area was substantially inadequate to 
    attain and maintain the NAAQS for ozone and carbon monoxide. This 
    finding called on California to begin a two phase process which would 
    lead to the revision of the plans. The first phase consisted of 
    updating the emissions inventory, making certain corrections to the 
    area's existing stationary source rules, and beginning to gather other 
    pertinent data by August 1988. The second phase consisted of submitting 
    a revised SIP containing changes necessary to attain the NAAQS. On June 
    13, 1989, EPA notified California that the deadline for the second 
    phase of this SIP-Call was September 30, 1991.
        On November 15, 1990, the Clean Air Act Amendments of 1990 were 
    enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C. 
    7401-7671q. The ozone nonattainment designation for the San Francisco 
    Bay Area continued by operation of law according to section 
    107(d)(1)(C)(i) of the Clean Air Act, as amended in 1990; furthermore, 
    the area was classified by operation of law as moderate for ozone under 
    section 181(a)(1). See 56 FR 56694 (Nov. 6, 1991), codified at 40 CFR 
    81.305. In a September 5, 1991 letter, EPA notified California that 
    earlier deadlines for the SIP-Call were revised to conform with the 
    requirements of the Clean Air Act Amendments of 1990.
        The BAAQMD more recently has collected ambient monitoring data that 
    show no violations of the ozone NAAQS (See discussion in Section III.1 
    below). Accordingly, on November 12, 1993 California requested 
    redesignation of the area to attainment with respect to the ozone NAAQS 
    and submitted an ozone maintenance SIP for the San Francisco Bay Area. 
    The three co-lead agencies in the San Francisco Bay Area under section 
    174 of the Act, the BAAQMD, the Metropolitan Transportation Commission 
    (MTC), and the Association of Bay Area Governments (ABAG), delegated 
    authority to the Joint Air Quality Policy Committee (JAQPC), which is 
    composed of representative board members from the three co-lead 
    agencies, to hold a joint agency public hearing on the redesignation 
    request and maintenance plan. On August 18, 1993, JAQPC held a public 
    hearing on the redesignation request and maintenance plan. The plan and 
    redesignation request were subsequently adopted by the BAAQMD, MTC and 
    ABAG on September 1, 1993, September 22, 1993 and September 16, 1993, 
    respectively, at regularly scheduled agency board meetings.
        All SIP submittals to EPA must meet certain minimum administrative 
    and technical criteria as set forth in 40 CFR part 51, appendix V (the 
    ``completeness'' criteria) in order for the Administrator to review and 
    take action on the submittal. Section 110(k)(1) of the Act describes 
    the mandatory timeframe for EPA's determination of completeness and 
    rulemaking action on plan submissions. In accordance with section 
    110(k)(1)(B) of the Act, the San Francisco Bay Area's ozone 
    redesignation request and maintenance plan was deemed complete by 
    operation of law on May 12, 1994. Thus, the submittal is considered 
    complete as of November 12, 1993, the date it was submitted.
        On July 21, 1994, CARB sent a letter to EPA requesting ``parallel 
    processing'' of certain revisions to the San Francisco Bay Area's ozone 
    maintenance plan and SIP, including new contingency measures in the 
    maintenance plan, a 1990 emissions inventory, emission statement rule, 
    new source review rule, and amendments to various VOC RACT regulations. 
    The parallel processing request contained draft copies of the SIP 
    revisions that the BAAQMD will adopt this year. The parallel processing 
    provision of 40 CFR part 51, appendix V allows EPA to propose action on 
    the draft revisions prior to submission of the locally adopted SIP 
    revision by the State. At the time of final EPA action, the complete 
    revisions must be submitted to EPA by the State.
    
    II. Evaluation Criteria
    
        The 1990 Amendments revised section 107(d)(1)(E) to provide five 
    specific requirements that an area must meet in order to be 
    redesignated from nonattainment to attainment: (1) The area must have 
    attained the applicable NAAQS; (2) the area has met all relevant 
    requirements under section 110 and part D of the Act; (3) the area has 
    a fully approved SIP under section 110(k) of the Act; (4) the air 
    quality improvement must be permanent and enforceable; and, (5) the 
    area must have a fully approved maintenance plan pursuant to section 
    175A of the Act. Section 107(d)(3)(D) allows a Governor to initiate the 
    redesignation process for an area to apply for attainment status.
    
    III. Review of State Submittal
    
        The California redesignation request for the San Francisco Bay Area 
    meets the five requirements of section 107(d)(3)(E), noted above. 
    Following is a brief description of how the State has fulfilled each of 
    these requirements. EPA's technical support document (TSD) contains a 
    more detailed analysis of the submittal with respect to certain of 
    these evaluation criteria.
    
    1. Attainment of the Ozone NAAQS
    
    A. The Ozone Standard
        Attainment of the ozone NAAQS is determined based on the expected 
    number of exceedances in a calendar year. The method for determining 
    attainment of the ozone NAAQS is contained in 40 CFR 50.9 and appendix 
    H to that section. The simplest method by which expected exceedances 
    are calculated is by averaging actual exceedances at each monitoring 
    site over a three year period. An area is in attainment of the standard 
    if this average results in expected exceedances for each monitoring 
    site of 1.0 or less per calendar year. When a valid daily maximum 
    hourly average value is not available for each required monitoring day 
    during the year, these missing days must be accounted for when 
    estimating exceedances for the year. Appendix H provides the formula 
    used to estimate the expected number of exceedances for each year.
    B. The BAAQMD Monitoring Data
        The State of California's request is based on an analysis of 
    quality-assured ozone air quality data which is relevant to both the 
    maintenance plan and to the redesignation request. This data comes from 
    the BAAQMD State and Local Air Monitoring Station (SLAMS) network which 
    is comprised of 23 monitoring stations. The request is based on ambient 
    air ozone monitoring data for calendar years 1990 through 1992. This 
    data clearly shows an expected exceedance rate for the ozone standard 
    of less than 1.0 per year for 22 of the 23 monitors, including each of 
    the monitors on which the nonattainment designation was based. The 
    exception is the Alum Rock monitor, discussed below, which is a 
    monitoring site that was established during the 1992 ozone season. As 
    described below, the Alum Rock monitoring site recorded one exceedance 
    of the ozone NAAQS in 1992, but EPA believes that due to the 
    circumstances of the timing of the establishment of the site, the best 
    estimate of the expected exceedance rate for this monitoring site leads 
    to the conclusion that the San Francisco Bay Area achieved the ozone 
    NAAQS during the 1990-1992 period.
    C. The Alum Rock Monitor
        The original Alum Rock monitoring site was located at a fire 
    station in the northeast portion of San Jose. The BAAQMD lost its lease 
    to this monitoring site in October 1990. Prior to its forced closure, 
    the site had not recorded any exceedances of the standard since 1987. A 
    new Alum Rock monitoring location was established in August 1992. This 
    monitor recorded an exceedance of the ozone NAAQS on September 26, 
    1992. The actual monitored value was 0.125 ppm, the lowest possible 
    measured value which would be considered an exceedance of the ozone 
    NAAQS.
        Because the site was operated for only five months during 1992, 
    there is a large gap in data for the new site for 1992. Appendix H 
    contains a formula for estimating the number of exceedances for a year 
    when there is missing data. Normally, for an established site with two 
    previous years of monitoring data, this number would be added to the 
    number of exceedances for the two previous years and averaged to yield 
    an expected exceedance per year. However, because the new site was 
    established at a nearby but different location, it must be considered 
    to be a different site. For this reason, the estimated exceedances for 
    1992 cannot be averaged over the three year period from 1990 through 
    1992. Therefore, while an expected annual exceedance rate can be 
    calculated for the Alum Rock site, the lack of three complete years of 
    data introduces uncertainties into the calculation using the formula 
    contained in appendix H.
        Appendix H does not explicitly address the situation where a new 
    site starts up and collects data for only a portion of the calendar 
    year. However, this situation has been addressed in an EPA memorandum, 
    ``Ozone and Carbon Monoxide Design Value Calculations,'' William 
    Laxton, Director, Technical Support Division, OAQPS, June 18, 1990 
    (Laxton memo). The memo recognizes the disincentive created by applying 
    the estimated exceedance calculation for missing data to new sites. The 
    missing data penalty created by the calculation is designed to 
    encourage prompt repair or replacement of monitors, rather than to 
    discourage air pollution control agencies from installing new 
    monitoring sites in excess of the number required by 40 CFR part 58. 
    For this reason, the Laxton memo essentially allows an agency which 
    installs a new monitoring site to base the estimated exceedance 
    calculation for the initial year on the portion of the year following 
    start-up of the monitor. Based on the underlying reasoning of the 
    Laxton memo and the fact that there were no exceedances at any of the 
    22 established monitoring sites during June, July and August of 1992, 
    EPA calculated expected exceedances for the new Alum Rock site using 
    data from August 24, 1992, the date on which the new Alum Rock 
    monitoring site was established, through the end of December 1992. That 
    calculation results in an estimated expected exceedance calculation of 
    1.0 exceedances for 1992. EPA believes that, in light of the 
    uncertainties attendant to the lack of three full years of data from 
    the Alum Rock monitor, this calculation represents the ``best 
    estimate'' of the expected exceedance rate for the Alum Rock monitor in 
    1992 and leads to the conclusion that, in all likelihood, the San 
    Francisco Bay Area achieved attainment during the 1990-1992 period. The 
    lack of any monitored exceedances at any of the other monitors in the 
    San Francisco Bay Area's extensive SLAMs network during the June-August 
    1992 period provides additional support for EPA's belief that this 
    calculation represents the best estimate of expected exceedances at the 
    Alum Rock site.
        EPA notes that monitoring at Alum Rock following the end of 1992 
    continues to show attainment. This provides further support for the 
    conclusion that the best estimate of expected exceedances at the Alum 
    Rock site for 1992 is 1.0.
    D. Demonstration of Attainment
        In sum, while some uncertainty attaches to the monitoring data from 
    the Alum Rock site established in August 1992, EPA believes that the 
    data submitted by the BAAQMD provides an adequate demonstration that 
    the San Francisco Bay Area attained the ozone NAAQS during the 1990-
    1992 period. Moreover, monitoring data from all sites in the Bay Area 
    SLAMs network continues to show attainment in 1993 and so far in 1994.
        In order for EPA to take final action approving the San Francisco 
    Bay Area redesignation request, monitoring data from all 23 sites in 
    the BAAQMD's SLAMs network must continue to demonstrate attainment up 
    to the time of final action. Thus, EPA proposes to approve the San 
    Francisco Bay Area redesignation only if the monitoring data from the 
    entire SLAMs network continues to demonstrate attainment. If the 
    monitoring data records a violation of the NAAQS before final action is 
    taken on this proposal, the proposed approval of the redesignation will 
    be withdrawn and a proposed disapproval substituted for the proposed 
    approval.
        In addition to the demonstration discussed above, EPA required 
    completion of air network monitoring requirements set forth in 40 CFR 
    part 58. This included a quality assurance plan revision and a 
    monitoring network review to determine the adequacy of the ozone 
    monitoring network. The BAAQMD fulfilled these requirements to complete 
    documentation for the air quality demonstration. The BAAQMD has also 
    committed to continue monitoring in this area in accordance with 40 CFR 
    part 58.
        EPA agreed with the BAAQMD recommendation in its network review 
    concerning the need for one additional ozone monitor in the area south 
    of San Jose. As a result, the BAAQMD established an additional State 
    and Local Air Monitoring Site (SLAMS) at the San Martin site in Santa 
    Clara County in April 1994. EPA will review data from this new 
    monitoring station as part of its review of the 1994 ozone season.
    
    2. Meeting Applicable Requirements of Section 110 and Part D
    
        On December 28, 1983 (48 FR 57130), EPA fully approved California's 
    SIP for the San Francisco Bay Area as meeting the requirements of 
    section 110(a)(2) and part D of the 1977 Act, with the exception of the 
    I/M program which was approved on November 25, 1983 (48 FR 53114) and 
    committed to specific implementation schedules for the San Francisco 
    Bay Area. The amended Act, however, modified section 110(a)(2) and, 
    under part D, revised section 172 and added new requirements for all 
    nonattainment areas. Therefore, for purposes of redesignation, to meet 
    the requirement that the SIP contain all applicable requirements under 
    the Act, EPA has reviewed the SIP to ensure that it contains all 
    measures that were due under the amended Act prior to or at the time 
    the State submitted its redesignation request, as set forth in EPA 
    policy.\1\ EPA interprets section 107(d)(3)(E)(v) of the Act to mean 
    that, for a redesignation request to be approved, the State must have 
    met all requirements that applied to the subject area prior to or at 
    the same time as the submission of a complete redesignation request. 
    Requirements of the Act that come due subsequently continue to be 
    applicable to the area at later dates (see section 175A(c)) and, if 
    redesignation of any of the areas is disapproved, the State remains 
    obligated to fulfill those requirements. These requirements are 
    discussed below.
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        \1\``Procedures for Processing Requests to Redesignate Areas to 
    Attainment,'' John Calcagni, Director, Air Quality Management 
    Division, September 4, 1992.
        ``State Implementation Plan (SIP) Actions Submitted in Response 
    to Clean Air Act (CAA) Deadlines,'' John Calcagni, Director, Air 
    Quality Management Division, October 28, 1992.
        ``State Implementation Plan (SIP) Requirements for Areas 
    Submitted Requests for Redesignation to Attainment of the Ozone and 
    Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) 
    on or after November 15, 1992,'' Michael H. Shapiro, Acting 
    Assistant Administrator, September 17, 1993.
    ---------------------------------------------------------------------------
    
        As discussed earlier in this document, all of the SIP requirements 
    must be met by the BAAQMD and approved by EPA into the SIP prior to 
    final action on the redesignation request. In the event that these 
    requirements are not met, EPA proposes in the alternative to disapprove 
    the redesignation request. Based on CARB's July 21, 1994 letter to EPA, 
    EPA is ``parallel processing'' certain SIP revisions in this document 
    (contingency measures and 1990 emission inventory) and will address the 
    other requirements (VOC RACT regulations, emission statement rule, new 
    source review) in a separate Federal Register document prior to final 
    action on this revision. EPA's decision to parallel process the locally 
    adopted contingency measures and 1990 emissions inventory reflect EPA's 
    positive technical and administrative review. An EPA letter dated 
    August 25, 1994 (Howekamp, EPA, to Boyd, CARB) finds the revised 
    baseyear inventory complete (for parallel processing purposes) and 
    rescinds the April 13, 1993 finding of incompleteness for the emission 
    inventory. An approvability review was performed separately by EPA.
    A. Section 110 Requirements
        Although section 110 was amended in 1990, the San Francisco Bay 
    Area SIP meets the requirements of amended section 110(a)(2). A number 
    of the requirements did not change in substance and, therefore, EPA 
    believes that the pre-amendment SIP met these requirements. As to those 
    requirements that were amended, see 57 FR 27936 and 23939 (June 23, 
    1993), many are duplicative of other requirements of the Act. EPA has 
    analyzed the SIP and determined that it is consistent with the 
    requirements of amended section 110(a)(2). The SIP contains enforceable 
    emission limitations, requires monitoring, compiling, and analyzing 
    ambient air quality data, requires preconstruction review of new major 
    stationary sources and major modifications to existing ones, provides 
    for adequate funding, staff, and associated resources necessary to 
    implement its requirements, and requires stationary source emissions 
    monitoring and reporting.
    B. Part D Requirements
        Before the San Francisco Bay Area may be redesignated to 
    attainment, it also must have fulfilled the applicable requirements of 
    part D of the Act. Under part D, an area's classification indicates the 
    requirements to which it will be subject. Subpart 1 of part D sets 
    forth the basic nonattainment requirements applicable to all 
    nonattainment areas, classified as well as nonclassifiable. Subpart 2 
    of part D establishes additional requirements for nonattainment areas 
    classified under table 1 of section 181(a)(1) or table 3 of section 
    186(a). The San Francisco Bay Area was classified under table 1 of 
    section 181(a)(1) as a moderate ozone nonattainment area (See 56 FR 
    56694, codified at 40 CFR 81.305). Therefore, in order to be 
    redesignated to attainment, the State must meet the applicable 
    requirements of subpart 1 of part D--specifically sections 172(c) and 
    176, as well as the applicable requirements of subpart 2 of part D.
        B.1. Subpart 1 of part D--Section 172(c) Plan Provisions. Under 
    section 172(b), the Administrator established that States containing 
    nonattainment areas shall submit a plan or plan revision meeting the 
    applicable requirements of section 172(c) no later than three years 
    after an area is designated as nonattainment, i.e., unless EPA 
    establishes an earlier date. EPA has determined that the section 
    172(c)(2) reasonable further progress (RFP) (with parallel requirements 
    for a moderate ozone nonattainment area under subpart 2 of part D, due 
    November 15, 1993) was not applicable at the time the State of 
    California submitted the San Francisco Bay Area redesignation request 
    on November 12, 1993. Also, the 172(c)(9) contingency measures and 
    additional 172(c)(1) non-RACT reasonable available control measures 
    (RACM) beyond what may already be required in the SIP are no longer 
    necessary, since no earlier date was set for these measures and as RFP 
    was not due until November 15, 1993. As discussed below in section B3., 
    subpart 2 of part D, the BAAQMD is in the process of revising certain 
    VOC RACT rules to meet the Clean Air Act requirements.
        The 172(c)(3) emissions inventory requirement has been met by the 
    submission and proposed approval of the 1990 base year inventory 
    required under subpart 2 of part D, section 182(a)(1).
        As for the 172(c)(5) NSR requirement, once an area is redesignated 
    to attainment, this requirement is no longer applicable. The area then 
    becomes subject to prevention of significant deterioration (PSD) 
    requirements in lieu of the NSR program (57 FR 13564). Currently, the 
    San Francisco Bay Area is amending its NSR rule to comply with the 
    provisions of the 1990 Clean Air Act amendments. Prior to final action 
    on the redesignation request and maintenance plan, EPA will take final 
    rulemaking action on the BAAQMD's NSR program with respect to the ozone 
    requirements of sections 182(a)(2)(C) and 182(b)(5) in a separate 
    Federal Register document. Upon redesignation to attainment, BAAQMD 
    will continue with NSR permitting until such time as BAAQMD requests 
    delegation of the PSD program for VOC. At that time, the nonattainment 
    area requirements of the BAAQMD's NSR program will be placed in the 
    contingency plan. See the TSD accompanying this notice for a detailed 
    discussion of the NSR requirements and deficiencies in the current 
    regulation.
        Finally, for purposes of redesignation, the San Francisco Bay Area 
    SIP was reviewed to ensure that all requirements of section 110(a)(2), 
    containing general SIP elements, under the Act were satisfied. Title 40 
    CFR 52.220 evidences that the San Francisco Bay Area SIP was approved 
    under section 110 of the Act, and further that it satisfies all 
    applicable part D, title I requirements with the exception of the 
    outstanding part D requirements for the ozone SIP, mentioned above.
        B.2. Subpart 1 of Part D-- Section 176 Conformity Plan Provisions. 
    Section 176(c) of the Act requires States to revise their SIPs to 
    establish criteria and procedures to ensure that Federal actions, 
    before they are taken, conform to the air quality planning goals in the 
    applicable State SIP. The requirement to determine conformity applies 
    to transportation plans, programs and projects developed, funded, or 
    approved under title 23 U.S.C. or the Federal Transit Act 
    (``transportation conformity''), as well as to all other Federal 
    actions (``general conformity''). Section 176 further provides that the 
    conformity revisions to be submitted by the States must be consistent 
    with Federal conformity regulations that the Act required EPA to 
    promulgate. Congress provided for the State revisions to be submitted 
    one year after the date for promulgation of final EPA conformity 
    regulations. When that date passed without such promulgation, EPA's 
    General Preamble for the Implementation of title I informed the State 
    that its conformity regulations would establish a submittal date (see 
    57 FR 13498, 13557, (April 16, 1992)).
        The EPA promulgated final transportation conformity regulations on 
    November 24, 1993 (58 FR 62118) and general conformity regulations on 
    November 30, 1993 (58 FR 63214).
        These conformity rules require that States adopt both 
    transportation and general conformity provisions in the SIP for areas 
    designated nonattainment or subject to a maintenance plan approved 
    under CAA section 175A. Pursuant to 40 CFR 51.396 of the transportation 
    conformity rule and 40 CFR 51.851 of the general conformity rule, the 
    State of California is required to submit a SIP revision containing 
    transportation conformity criteria and procedures consistent with those 
    established in the Federal rule by November 25, 1994. Similarly, 
    California is required to submit a SIP revision containing general 
    conformity criteria and procedures consistent with those established in 
    the Federal rule by December 1, 1994. Because the deadlines for these 
    submittals have not yet come due, they are not applicable requirements 
    under section 107(d)(3)(E)(v) and, thus, do not affect approval of this 
    redesignation request.
        Moreover, the BAAQMD has committed to revise its SIP to be 
    consistent with the final Federal regulations on conformity by the 
    applicable November 1994 deadlines (see 40 CFR 51.396(a) and 51.851(a), 
    November 24, 1993 (58 FR 62218) and November 30, 1993 (58 FR 63247), 
    respectively).
        B.3. Subpart 2 of Part D--Section 182(a) and 182(b) Requirements. 
    The San Francisco Bay Area is a moderate ozone nonattainment area. 
    Under subpart 2 of part D, such areas must meet the requirements for 
    marginal areas under section 182(a)(1) as well as the requirements for 
    moderate areas contained in section 182(b). As discussed in section 
    2.B.2. above, for purposes of section 107(d)(3)(E)(v), the San 
    Francisco Bay Area must meet only those requirements of sections 182 
    (a) and (b) which were due prior to or at the time of the submittal of 
    a complete redesignation request. The BAAQMD has met the requirements 
    of section 182 with the exception of VOC RACT rule corrections, the 
    emissions statement rule, and the NSR rule corrections.
        At the request of the CARB, EPA will parallel process the SIP 
    revisions required pursuant to section 182(a) and (b) in a separate 
    Federal Register notice before final action on the redesignation 
    request and maintenance plan (See letter dated July 21, 1994 from James 
    D. Boyd, Executive Officer, CARB to Felicia Marcus, Regional 
    Administrator, EPA).
        The CARB submitted a 1990 emissions inventory of ozone precursors 
    as required by section 182(a)(1) on November 12, 1992. On November 18, 
    1993 the CARB submitted a revised 1990 emissions inventory of ozone 
    precursors which EPA found incomplete on April 13, 1994 because the 
    emissions inventory had not gone through an adequate public notice and 
    hearing process. To correct the deficiency, the BAAQMD held a public 
    hearing on July 29, 1994 (which was the maintenance plan 1990 
    attainment inventory submitted on November 12, 1993) and will submit 
    the appropriate documentation to EPA. Through this document, EPA also 
    proposes to approve the 1990 emissions inventory as required by section 
    182(a)(1).
        Currently, the BAAQMD is in the process of amending certain VOC 
    RACT regulations required by sections 182(a)(2)(A) and 182(b)(2) which 
    EPA must fully approve into the SIP prior to final action on the 
    redesignation request and maintenance plan.2 The following is a 
    list of the deficient VOC RACT regulations:
    ---------------------------------------------------------------------------
    
        \2\EPA has received all of the VOC RACT rules required by 
    section 182(a), but the rules do not meet all of EPA requirements 
    for full approval. EPA has met extensively with the BAAQMD to 
    discuss specific revisions to correct RACT deficiencies. EPA is 
    unable to make a definitive determination on the approvability of 
    these rules until EPA receives and reviews the formal SIP revision 
    from the CARB. 
    
    ------------------------------------------------------------------------
    Rule No.                            Rule title                          
    ------------------------------------------------------------------------
    8-1.....  General Provisions.                                           
    8-2.....  Miscellaneous Operations.                                     
    8-4.....  General Solvent & Surface Coating Operations.                 
    8-7.....  Gasoline Dispensing Facilities.                               
    8-8.....  Wastewater (Oil-Water) Separators.                            
    8-11....  Metal Container Closure and Coil Coating.                     
    8-12....  Paper, Fabric, and Film Coating.                              
    8-13....  Light and Medium Duty Motor Vehicle Assembly Plants.          
    8-14....  Surface Coating of Large Appliance and Metal Furniture.       
    8-15....  Emulsified and Liquid Asphalts.                               
    8-16....  Solvent Cleaning Operations.                                  
    8-19....  Surface Coating of Miscellaneous Metal Parts and Products.    
    8-20....  Graphic Arts Printing and Coating Operations.                 
    8-22....  Valves and Flanges at Chemical Plants.                        
    8-23....  Coating of Flat Wood Paneling and Wood Flat Stock.            
    8-24....  Pharmaceutical and Cosmetic Manufacturing Operations.         
    8-25....  Pump and Compressor Seals at Petroleum Refineries, Chemical   
               Plants, Bulk Plants, and Bulk Terminals.                     
    8-28....  Pressure Relief Valves at Petroleum Refineries and Chemical   
               Plants.                                                      
    8-29....  Aerospace Assembly and Component Coating Operations.          
    8-30....  Semiconductor Manufacturing Operations.                       
    8-31....  Surface Coating of Plastic Parts and Products.                
    8-32....  Wood Product Coatings.                                        
    8-33....  Gasoline Bulk Terminals and Gasoline Delivery Vehicles.       
    8-34....  Solid Waste Disposal Sites.                                   
    8-35....  Coating, Ink, and Adhesive Manufacturing.                     
    8-38....  Flexible and Rigid Disk Manufacturing.                        
    8-39....  Gasoline Bulk Plants and Gasoline Delivery Vehicles.          
    8-40....  Aeration of Contaminated Soil.                                
    8-41....  Vegetable Oil Manufacturing Operations.                       
    8-42....  Large Commercial Bakeries.                                    
    8-43....  Surface Coating of Marine Vessels.                            
    8-45....  Motor Vehicle and Mobile Equipment Coating Operations.        
    8-47....  Air Stripping and Soil Vapor Extraction Operations.           
    8-50....  Polyester Resin Operations.                                   
    ------------------------------------------------------------------------
    
        Upon EPA's final approval of these rules and the other corrections 
    noted above, the BAAQMD will have met the applicable requirements of 
    the Act.
        B4. Section 182(f) NOX RACT Exemption Petition--a. Section 
    182(f) Requirements and Exemption Provisions. Section 182(f) of the Act 
    requires that the same ozone provisions that apply to major stationary 
    sources of VOC under subpart 2 of Part D also apply to major stationary 
    sources of NOX. Areas designated nonattainment of the NAAQS for 
    ozone, and classified as moderate nonattainment or above, are required 
    to adopt RACT rules for major stationary sources of NOX and to 
    provide for nonattainment area new source review (NSR) for new sources 
    and modifications that are major for NOX. Section 182(f) provides 
    further that these requirements do not apply if EPA determines that 
    additional NOX reductions would not contribute to attainment of 
    the NAAQS, for areas outside the ozone transport region (OTR). Any 
    person (including a state) may petition EPA to make such a finding. EPA 
    guidance interpreting the section 182(f) exemption provisions provides 
    that a state may submit an exemption petition based on three 
    consecutive years of air quality monitoring data showing attainment of 
    the ozone NAAQS.
        EPA's NOX exemption policy is contained in several 
    memoranda3 providing that under section 182(f)(1)(A), an exemption 
    from the NOX requirements may be granted for nonattainment areas 
    outside the OTR if EPA determines that additional reductions of 
    NOX would not contribute to attainment of the NAAQS for those 
    areas. In cases where a nonattainment area is demonstrating attainment 
    with three consecutive years of air quality monitoring data, without 
    having implemented the section 182(f) NOX provisions, it is clear 
    that the ``contribute to attainment'' test is met. Thus, a State may 
    submit a petition for a section 182(f) exemption based on air quality 
    monitoring data.
    ---------------------------------------------------------------------------
    
        \3\Michael H. Shapiro, Acting Assistant Administrator for Air 
    and Radiation, issued on September 17, 1993, entitled ``State 
    Implementation Plan (SIP) Requirements for Areas Submitting Requests 
    for Redesignation to Attainment of the Ozone and Carbon Monoxide 
    (CO) National Ambient Air Quality Standards (NAAQS) on or after 
    November 15, 1992'', and, ``Guideline for Determining the 
    Applicability of Nitrogen Oxide Requirements under Section 182(f),'' 
    from John Seitz, Director, Office of Air Quality Planning and 
    Standards, to the Regional Division Directors, December 16, 1993, 
    and a subsequent revision to portions of these memoranda from John 
    S. Seitz, Director of EPA's Office of Air Quality Planning and 
    Standards, issued on May 27, 1994, entitled, ``Section 182(f) 
    Nitrogen Oxides (NOX) Exemptions--Revised Process and 
    Criteria''.
    ---------------------------------------------------------------------------
    
        Pursuant to section 182(f)(1) of the Act, the exemption guidance 
    outlines circumstances under which EPA would determine whether the new 
    NOX requirements would be limited or would not apply. For areas 
    that did not implement the section 182(f) NOX requirements but did 
    attain the ozone standard, as demonstrated by ambient monitoring data, 
    it is clear that the additional NOX reductions required by section 
    182(f) would not contribute to attainment, although they might 
    contribute to maintenance. In addition, EPA has not received a 
    demonstration that the NOX exemption would interfere with 
    attainment or maintenance in downwind areas. (See discussion below in 
    IV. Potential Impact of California Federal Implementation Plan and 
    State Implementation Plan.)
        EPA's conformity rules4,,5 also reference the section 
    182(f) exemption process as a means for exempting affected areas from 
    NOX conformity requirements. Therefore, ozone nonattainment areas 
    that are granted areawide section 182(f) exemptions under this approach 
    will also be exempt from the NOX conformity requirements.
    ---------------------------------------------------------------------------
    
        \4\``Criteria and Procedures for Determining Conformity to State 
    or Federal Implementation Plans or Transportation Plans, Programs, 
    and Projects Funded or Approved under Title 23 U.S.C. of the Federal 
    Transit Act'', November 24, 1993 (58 FR 62188).
        \5\``Determining Conformity of General Federal Actions to State 
    or Federal Implementation Plans; Final Rule'', November 30, 1993 (58 
    FR 63214).
    ---------------------------------------------------------------------------
    
        b. BAAQMD NOX RACT Exemption Petition. On April 21, 1993, EPA 
    notified the Governor of California of a finding that the State failed 
    to submit the NOX RACT provisions by November 15, 1992 as required 
    by section 182(f). On April 15, 1994, the BAAQMD submitted a petition 
    to EPA requesting that the San Francisco Bay Area ozone nonattainment 
    area be exempted from the requirement to implement NOX RACT 
    controls pursuant to section 182(f) of the Act. A successful exemption 
    demonstration or a complete submittal of the NOX RACT rules would 
    cure this deficiency.
        The BAAQMD has not implemented NOX RACT and has submitted 
    monitoring data as part of its redesignation request to demonstrate 
    attainment of the standard. As discussed above, the BAAQMD has 
    monitoring data showing that the area attained the ozone NAAQS since 
    the 1990-1992 timeframe. See section III.1. of this notice for a 
    detailed discussion of the ozone air quality monitoring data.
        c. Proposed Action. The EPA proposes to grant the BAAQMD section 
    182(f) NOX RACT exemption petition based upon the evidence 
    provided by the BAAQMD and the BAAQMD's compliance with the 
    requirements outlined in EPA's section 182(f) exemption guidance. The 
    final approval of this proposed action would exempt the San Francisco 
    Bay Area from the requirements to implement the NOX RACT 
    requirements and the applicable general and transportation conformity 
    provisions for NOX. However, the NOX RACT control measures 
    are included as contingency measures in the San Francisco Bay Area's 
    maintenance plan (See discussion below, 5E. Contingency Plan).
    
    3. Fully Approved SIP Under Section 110(k) of the Act
    
        In order for EPA to take final action approving the redesignation 
    request and maintenance plan, the San Francisco Bay Area must have a 
    fully approved SIP under section 110(k), which also meets the 
    applicable requirements of section 110 and Part D. As discussed in 
    Section 2.A. above, EPA approved numerous provisions of the San 
    Francisco Bay Area SIP under the pre-amended Act and finds that these 
    provisions meet the requirements of section 110(a)(2). In addition, EPA 
    will take action on the following SIP revisions prior to taking final 
    action on the redesignation request and maintenance plan: VOC RACT 
    rules, NSR rule, and the emission statement rule. Also, EPA is 
    proposing to approve the emissions inventory as required by section 
    182(a)(1) through this document. Assuming that these SIP revisions meet 
    all requirements for approval, EPA will undertake rulemaking to approve 
    them. Once EPA approves these revisions, the San Francisco Bay Area 
    will have fulfilled the requirement to have a fully approved SIP under 
    section 110(k).
        The proposed approval of the redesignation request is contingent 
    upon the BAAQMD fulfilling the requirements of sections 173 and 182 
    discussed above prior to final rulemaking. In the alternative, if the 
    requirements are not fulfilled, EPA must disapprove the redesignation 
    request for the San Francisco Bay Area.
    
    4. Improvement in Air Quality Due to Permanent and Enforceable Measures
    
        Under the pre-amended Act, EPA approved California's SIP control 
    strategy for the San Francisco Bay Area nonattainment area, satisfied 
    that the rules and the emission reductions achieved as a result of 
    those rules were enforceable. Since enactment of the amended Act, the 
    State has made additional submittals as identified in section 182(b) 
    above. In addition, EPA finds that the measures listed below contribute 
    to the permanence and enforceability of reductions in ambient ozone 
    levels in the San Francisco Bay Area. 
    
    ------------------------------------------------------------------------
                                                                   Emission 
                                                      BAAQMD reg  reductions
              Selected control measures\1\             8 rule #    1987-1990
                                                                   VOC (TPD)
    ------------------------------------------------------------------------
    Stationary Sources:                                                     
      Architectural Coatings........................           3         1.8
      Emulsified and Liquid Asphalts................          15         2.0
      Solvent Cleaning Operations...................          16         0.8
      Valves and Flanges at Petroleum Refinery                              
       Complexes....................................          18         1.4
      Graphic Arts Printing and Coating Operations..          20         0.7
      Pump and Compressor Seals at Petroleum                                
       Refineries...................................          25         1.1
      Solid Waste Disposal Sites....................          34         3.1
      Natural Gas and Crude Oil Production                                  
       Refineries...................................          37         0.6
      Motor Vehicles and Mobile Equipment Coating                           
       Operations...................................          45         0.6
      Marine Tank Vessel to Marine Tank Vessel                              
       Loading......................................          46         0.5
      Aerosol Paint Coatings........................          49         0.8
        Stationary Sources Subtotal.................  ..........        13.4
    Mobile Sources:                                                         
      ARB Motor Vehicle Program (including Basic I/                         
       M)...........................................         n/a          56
          Total.....................................  ..........          69
    ------------------------------------------------------------------------
    \1\Control Measures achieving at least 0.5 TPD reduction of VOC between 
      1987 and 1990.                                                        
    
        The actual reduction in VOC emissions from 1987 to 1990 was 61 TPD 
    which reflects growth in emissions from some sources and reductions in 
    emissions due to all control measures.
        In association with its emission inventory discussed in Section 
    5.A. below, the State demonstrated that point source VOC emissions were 
    not artificially low due to local economic downturn. The BAAQMD 
    included trend data for vehicle miles traveled (VMT) and employment in 
    the maintenance plan to demonstrate that attainment was not due to 
    economic downturn. These trend data indicate that neither VMT growth 
    nor daily VMT actually decreased during the attainment period. In 
    addition, using employment data as an indicator for stationary source 
    emissions, the BAAQMD demonstrated a modest decrease during the 
    calendar years 1991 and 1992. The overall effect on the stationary 
    source inventory should have been less than a 2% reduction, not enough 
    to significantly affect the San Francisco Bay Area's attainment of the 
    ozone NAAQS. EPA finds that the combination of existing EPA-approved 
    SIP and Federal measures contribute to the permanence and 
    enforceability of reductions in ambient ozone levels that have allowed 
    the area to attain the NAAQS.
    
    5. Fully Approved Maintenance Plan Under Section 175A
    
        In today's document, EPA is proposing approval of the State's 
    maintenance plan for the San Francisco Bay Area because EPA finds that 
    the BAAQMD's submittal meets the requirements of section 175A. If EPA 
    determines after public notice and comment that it should give final 
    approval to the maintenance plan, the San Francisco Bay Area 
    nonattainment area will have a fully approved maintenance plan in 
    accordance with section 175A. Section 175A of the Act sets forth the 
    elements of a maintenance plan for areas seeking redesignation from 
    nonattainment to attainment. The plan must demonstrate continued 
    attainment of the applicable NAAQS for at least ten years after the 
    Administrator approves a redesignation to attainment. Eight years after 
    the redesignation, the State must submit a revised maintenance plan 
    which demonstrates attainment for the ten years following the initial 
    ten-year period. To provide for the possibility of future NAAQS 
    violations, the maintenance plan must contain contingency measures, 
    with a schedule for implementation, adequate to assure prompt 
    correction of any air quality problems. Each of the section 175A plan 
    requirements is discussed below.
        5.A. Emissions Inventory--Base Year Inventory. The BAAQMD adopted 
    comprehensive inventories of VOC, NOX, and CO emissions from area, 
    stationary, and mobile sources using 1990 as the base year for 
    calculations to demonstrate maintenance of the ozone NAAQS. EPA has 
    determined that 1990 is an appropriate year on which to base attainment 
    level emissions because EPA policy allows States to select any one of 
    the three years in the attainment period as the attainment year 
    inventory.6
    ---------------------------------------------------------------------------
    
        \6\``Procedures for Processing Requests to Redesignate Areas to 
    Attainment,'' John Calcagni, Director, Air Quality Management 
    Division, September 4, 1992.
    ---------------------------------------------------------------------------
    
        CARB originally submitted the annual and peak ozone season 1990 
    comprehensive inventories of actual emissions as a SIP revision on 
    November 12, 1992, and revised them in a submission dated November 18, 
    1993. CARB also submitted the San Francisco Bay Area's ozone 
    maintenance plan on November 12, 1993 which contained a comprehensive 
    1990 emission inventory. EPA policy (September 29, 1992, Calcagni and 
    Laxton) allows the public hearing and adoption of the 1990 base year 
    inventories to occur with the first related regulatory submittal. CARB 
    developed the inventories to meet the requirements of sections 
    172(c)(3) and 182(a)(1), in accordance with EPA guidance.
        The State submittal contains the detailed inventory data and 
    summaries by county and source category. The BAAQMD provided the 
    stationary source estimates, based on source test and mass balance 
    computations, as required for annual permit renewal. The CARB and 
    BAAQMD generated area source emissions for each source category based 
    on emission and activity factors for each county in the nonattainment 
    area. These factors are cited or their sources referenced in Methods 
    for Assessing Area Source Emissions in California, California Air 
    Resources Board, September 1991.
        CARB based on-road mobile source emission and activity estimates on 
    CARB's EMFAC7F and BURDEN7C models, respectively. Different emission 
    factors and activity rates apply to each type of vehicle, roadway, and 
    road condition. Vehicle mix and age data from vehicle registration vary 
    within each county. Off-road engine estimates were derived from both 
    State and local sources, as cited in the area source document, 
    referenced above. The CARB derived VMT estimates from a mix of the 
    California ``Highway Performance Monitoring System'' (HPMS) and local 
    surveys. Actual, as opposed to allowable, emission estimates were used 
    for all source categories.
        The comprehensive base year emissions inventory discussed above has 
    been entered into the Aerometric Information Retrieval System (AIRS). 
    AIRS is EPA's computerized data storage system for air quality and 
    emission source data. EPA, under contract with Radian Corporation, has 
    entered the base year emissions inventory of stationary sources into 
    AIRS and has also prepared computer software to convert the California 
    Emission Data System stationary source data to AIRS/AFS format for 
    entry into AIRS. California is responsible for entering 1990 area and 
    mobile source (AMS) data into AIRS by October 1994, according to a 
    fiscal year 1994 Clean Air Act section 105 air program grant agreement. 
    EPA's TSD contains a more detailed analysis of the base year inventory 
    for the San Francisco Bay Area.
        On April 13, 1994, EPA found the 1990 base year inventory 
    submission incomplete for lack of adequate public notice and adoption. 
    Instead of adopting the November 12, 1992 and November 18, 1993 base 
    year inventories as submitted by CARB, the BAAQMD held a public hearing 
    on a revised 1990 base year inventory on July 29, 1994 which was the 
    attainment inventory submitted as part of the maintenance plan. The 
    State requested parallel processing of this revised emissions inventory 
    to fulfill section 182(a)(1). Based on the State's parallel processing 
    request and submission of associated documentation, EPA rescinded the 
    finding of incompleteness in an EPA letter dated August 25, 1994 to 
    CARB (Howekamp, EPA to Boyd, CARB).
        Following is a table of the revised average peak ozone season 
    weekday VOC and NOx emissions for the biogenic and major 
    anthropogenic source categories for 1990 (the attainment year 
    inventory, 1995, 2000, and 2005. 
    
                VOC Emission Inventory Summary\1\ (Tons Per Day)            
    ------------------------------------------------------------------------
                                                   1990   1995   2000   2005
    ------------------------------------------------------------------------
    Point.......................................     78     73     75     77
    Area........................................    173    154    141    141
    Mobile On-Road..............................    300    204    142    104
    Mobile Non-Road.............................     81     85     82     84
    Anthropogenic Total.........................    631    515    440    406
    Biogenics...................................    300    300    300    300
          Total.................................    931    815    740    706
    ------------------------------------------------------------------------
    \1\Entries are rounded to the nearest whole number. Totals may not equal
      to sum of column entries.                                             
    
    
                NOX Emission Inventory Summary\1\ (Tons Per Day)            
    ------------------------------------------------------------------------
                                                  1990   1995   2000    2005
    ------------------------------------------------------------------------
    Point.......................................    131    130    141    146
    Area........................................     15     16     17     18
    Mobile On-Road..............................    251    194    166    158
    Mobile Non-Road.............................    159    164    176    186
          Total.................................    557    504    499   508 
    ------------------------------------------------------------------------
    \1\Entries are rounded to the nearest whole number, totals may not equal
      to sum of column entries.                                             
    
        The BAAQMD provided EPA with the appropriate documentation for 
    technical (Base Year 1990 Emission Inventory--Source Category 
    Methodologies) and administrative requirements. The revised VOC and 
    NOX inventories are 3.4 and 13.5 percent lower, respectively, than 
    the reactive organic compound (ROG) and NOX inventories previously 
    submitted by the State. The primary reason for the difference between 
    the inventories is the use of the BURDEN7F model in place of the 
    BURDEN7C model to estimate vehicular emissions. In addition, ROG 
    inventories include ethane, which are approximately 4 percent higher 
    than VOC inventories.
        5.B. Demonstration of Maintenance--Projected Inventories. The 
    BAAQMD developed projected VOC and NOX emissions inventories for 
    the years 1990, 1995, 2000 and 2005 by applying growth factors in 
    accordance with EPA guidance. The CARB included these 1990 emissions 
    inventories for VOC, NOX and CO in the maintenance plan 
    submission. These 1990 emission inventories will be entered into AIRS.
        The projected inventories show that the ozone standard will be 
    maintained and that emissions are not expected to exceed the level of 
    the 1990 inventory during the maintenance period. EPA's TSD contains a 
    detailed analysis of the projected emission inventories for the San 
    Francisco Bay Area.
        5.C. Verification of Continued Attainment. Continued attainment of 
    the ozone NAAQS in the San Francisco Bay Area depends, in part, on the 
    State's efforts to track indicators of continued attainment during the 
    maintenance period. The BAAQMD will analyze annually the three most 
    recent consecutive years of air quality monitoring data to verify 
    continued attainment of the national ozone standard, in accordance with 
    40 CFR part 50, appendix H. The BAAQMD will submit to EPA an annual 
    report by July 1 of each year for data collected from the previous 
    calendar year. This information in conjunction with the reports from 
    the previous two years will provide adequate information for 
    determining continued compliance with the ozone NAAQS. The BAAQMD has 
    chosen a violation of the NAAQS as the trigger for the contingency 
    plan.
        5.D. Contingency Plan. The level of VOC and NOX emissions in 
    the San Francisco Bay Area will largely determine its ability to stay 
    in compliance with the ozone NAAQS in the future. Despite best efforts 
    to demonstrate continued compliance with the NAAQS, the ambient air 
    pollutant concentrations may exceed or violate the NAAQS. Therefore, as 
    required pursuant to section 175A, the BAAQMD has provided contingency 
    measures with a schedule for implementation in the event of a future 
    ozone air quality problem.
        At the time of local adoption of the redesignation request and 
    maintenance plan, the BAAQMD identified the enhanced vehicle inspection 
    and maintenance program (I/M), required for serious and above ozone 
    nonattainment areas, as the contingency measure which would be 
    triggered in the event of a violation during the maintenance period. 
    Since that time, the State of California has passed legislation for an 
    enhanced I/M program which restricts the implementation of the test-
    only program to nonattainment areas which are required to implement the 
    program under the Clean Air Act. Thus, BAAQMD is prohibited from opting 
    into the test-only portion of the enhanced I/M program. However, the 
    BAAQMD has selected new measures to fulfill the contingency plan 
    requirements of section 175A(d) which are discussed below.
        On April 15, 1994, the BAAQMD, MTC, and ABAG sent a letter to the 
    CARB Executive Officer, James Boyd, which committed to adopt basic 
    improvements to the I/M program and NOX control measures as the 
    new contingency provisions for the maintenance plan. In this letter, 
    the BAAQMD, MTC and ABAG, have proposed to implement the basic 
    improvements to the I/M program beginning in January 1995 in order to 
    ensure continued maintenance of the NAAQS. The emission reductions 
    associated with this program go beyond the necessary emission 
    reductions required for maintenance and the reductions are not included 
    in the BAAQMD's projected inventories in the maintenance plan. These 
    improvements yield approximate emission reductions in the amount of 8 
    tons per day (TPD) VOC and 7 TPD NOX. The early implementation of 
    this contingency provision provides an additional margin of safety for 
    the area in maintaining the NAAQS. In addition, in the event of a 
    violation during the maintenance period, the BAAQMD will meet with EPA 
    within 30 days following the violation to determine which additional 
    measures would be appropriate to implement. The additional measures 
    contained in the proposal include numerous NOX RACT control 
    measures which yield additional NOX reductions through the year 
    2001. The chart below lists the additional measures and their 
    associated emission reductions. The TSD contains detailed information 
    concerning the basic improvements to the I/M program and the NOX 
    RACT control measures.
    
                    BAAQMD NOX Rules as Contingency Measures                
    ------------------------------------------------------------------------
                                                                     NOX    
          Title regulation 9          Adopted    Implementation   Reductions
                                                    year(s)         (TPD)   
    ------------------------------------------------------------------------
    NOX and CO from Industrial,                                             
     Institutional and Commercial                                           
     Boilers, Steam Generators                                              
     (rule 7).....................      9/16/92         1/1/96          14.9
    NO2 and CO2 Emissions from                                              
     Stationary Internal                                                    
     Combustion Engines (rule 8)..      1/20/93         1/1/97           8.3
    NOX from Stationary Gas                                                 
     Turbines (rule 9)............       5/5/93         1/1/97           7/0
    Refinery Boilers, Steam                                                 
     Generators and Process                                                 
     Heaters (rule 10)............       1/5/94        5/31/95           n/a
    NOX and CO from Utility                                                 
     Electric Power Generating                                              
     Boilers (rule 11)............      2/16/94        5/31/95         1-2.6
    NOX from Glass Melting                                                  
     Furnaces (rule 12)...........      1/19/94  1/1/97-1/1/200             
                                                             1          1.2 
    ------------------------------------------------------------------------
    1Sources already meet RACT standards.                                   
    
        At the request of CARB, the changes to the contingency plan are 
    being parallel processed in accordance with 40 CFR part 51, appendix V 
    in order to expedite the approval of the redesignation request and 
    maintenance plan. The BAAQMD, MTC and ABAG held a public hearing on the 
    new contingency plan on July 29, 1994.
        The contingency measures proposed by the BAAQMD meet the 
    requirements of section 175A(d) of the Act.
        5E. Subsequent Maintenance Plan Revisions. In accordance with 
    section 175A(b) of the Act, the State has agreed to submit a revised 
    maintenance SIP eight years after the area is redesignated to 
    attainment. Such revised SIP will provide for maintenance for an 
    additional ten years (See letter dated April 15, 1994 from Milton 
    Feldstein, BAAQMD to James Boyd, CARB attached to the TSD).
    
    IV. Potential Impact of California Federal Implementation Plans and 
    State Implementation Plans
    
        EPA is under court order to promulgate final federal implementation 
    plans (FIPs) for ozone for Los Angeles-South Coast Air Basin Area, the 
    Sacramento Metro Area, and the Ventura County Area and for carbon 
    monoxide for Los Angeles-South Coast Air Basin Area by February 15, 
    1995. EPA discusses the phenomenon of pollutant transport within air 
    basins in the proposed FIPs (59 FR 23393, May 5, 1994). EPA 
    acknowledges that future modeling analyses could eventually result in 
    revisions to the FIP, which may impose additional FIP controls for 
    areas not covered by the proposed FIPs, such as the San Francisco Bay 
    Area, which is upwind of Sacramento. EPA's proposed action to 
    redesignate the San Francisco Bay Area to an attainment area does not 
    exclude the possibility of future FIP controls in the area.
        In addition, States are responsible for developing and submitting 
    demonstrations which show that the standard will be attained by the 
    applicable date for areas where the demonstration of attainment is 
    complicated by transport between two areas of different classifications 
    (See General Preamble to title I of the Clean Air Act (57 FR 13528, 
    April 16, 1992)). Thus, EPA expects the ozone modeling demonstrations 
    due by November 15, 1994 required by section 182(c)(2) to address 
    transport and to demonstrate attainment for all areas within 
    California.
        A recent report released by CARB, ``Preliminary Assessment of 
    Transport on San Joaquin Valley Ozone,'' discusses recent simulations 
    to assess the impact of transported emissions in the San Joaquin 
    Valley. It should be noted that the results discussed in the report are 
    based on an extreme scenario in which anthropogenic emissions for the 
    San Francisco Bay Area and the Sacramento area are set to zero. In this 
    scenario, the report indicates that there would be a decrease in ozone 
    measurements of 27% in the Northern San Joaquin Valley, ten percent in 
    the Central San Joaquin Valley and seven percent in Southern San 
    Joaquin Valley. The results discussed in this report are preliminary. 
    EPA will review the final report when it is available.
        EPA is soliciting comment on whether transport has any impact on 
    EPA's proposed redesignation of the San Francisco Bay Area to 
    attainment.
    
    V. Conclusion
    
        EPA is soliciting public comments on this document and on issues 
    relevant to EPA's proposed action. Comments will be considered before 
    taking final action. Interested parties may participate in the Federal 
    rulemaking procedure by submitting written comments to the person and 
    address listed in the ADDRESSES section at the beginning of this 
    notice.
    
    Proposed Action
    
        In today's document, EPA proposes to approve the San Francisco Bay 
    Area's ozone maintenance plan because it meets the requirements of 
    section 175A. In addition, the Agency is proposing approval of the 
    redesignation request for the ozone nonattainment area, subject to 
    final approval of the maintenance plan and provided the hearing notice 
    and adoption documentation are submitted for the amendments to the 
    contingency plan, because the State has demonstrated compliance with 
    the requirements of section 107(d)(3)(E) for redesignation. Finally, 
    EPA proposes to approve the emissions inventory as meeting the 
    requirements of section 182(a)(1), provided the hearing notice and 
    adoption documentation are submitted, and the NOX exemption 
    petition which fulfills the requirements of section 182(f). Nothing in 
    this action should be construed as permitting or allowing or 
    establishing a precedent for any future request for revision to any 
    SIP. Each request for revision to the SIP shall be considered 
    separately in light of specific technical, economic, and environmental 
    factors and in relation to relevant statutory and regulatory 
    requirements.
        Ozone State implementation plans (SIP's) are designed to satisfy 
    the requirements of part D of the Clean Air Act and to provide for 
    attainment and maintenance of the ozone NAAQS. This proposed 
    redesignation should not be interpreted as authorizing the State to 
    delete, alter, or rescind any of the VOC or NOX emission 
    limitations and restrictions contained in the approved ozone SIP. 
    Changes to ozone SIP VOC regulations rendering them less stringent than 
    those contained in the EPA approved plan cannot be made unless a 
    revised plan for attainment and maintenance is submitted to and 
    approved by EPA. Unauthorized relaxations, deletions, and changes could 
    result in both a finding of nonimplementation (section 173(b) of the 
    Clean Air Act) and in a SIP deficiency call made pursuant to section 
    110(a)(2)(H) of the Clean Air 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. 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 CAA 
    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, it does not have any 
    economic impact on any small entities. Redesignation of an area to 
    attainment under section 107(d)(3)(E) of the CAA does not impose any 
    new requirements on small entities.
        Redesignation is an action that affects the status of a 
    geographical area and does not impose any regulatory requirements on 
    sources. Accordingly, I certify that the approval of the redesignation 
    request will not have an impact on any small entities.
        The Office of Management and Budget has exempted this rule from the 
    requirements of section 6 of Executive Order 12866.
    
    List of Subjects
    
    40 CFR Part 52
    
        Environmental protection, Air pollution control, Hydrocarbons, 
    Intergovernmental relations, Ozone.
    
    40 CFR Part 81
    
        Air pollution control, National parks, Wilderness areas.
    
        Authority: 42 U.S.C. 7401-7671q.
    
        Dated: August 31, 1994.
    Felicia Marcus,
    Regional Administrator.
    [FR Doc. 94-23983 Filed 9-27-94; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
09/28/1994
Department:
Environmental Protection Agency
Entry Type:
Uncategorized Document
Action:
Notice of proposed rulemaking (NPR).
Document Number:
94-23983
Dates:
Comments must be received by December 27, 1994.
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: September 28, 1994, CA-64-1-6504, FRL-5080-5
CFR: (2)
40 CFR 52
40 CFR 81