[Federal Register Volume 59, Number 53 (Friday, March 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6452]


[[Page Unknown]]

[Federal Register: March 18, 1994]


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ENVIRONMENTAL PROTECTION AGENCY
[FRL-4852-6]

 

Ozone Transport Commission; Recommendation That EPA Adopt Low 
Emission Vehicle Program for the Northeast Ozone Transport Region

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of availability.

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SUMMARY: EPA is announcing that on February 10, 1994, the Northeast 
Ozone Transport Commission (OTC) submitted a recommendation to EPA for 
additional control measures to be applied throughout the Northeast 
Ozone Transport Region (OTR). Specifically, the OTC has recommended 
that EPA require all State members of the OTC to adopt an Ozone 
Transport Commission Low Emission Vehicle program for the entire OTR. 
The EPA is commencing a review of the recommendation to determine 
whether to approve, disapprove, or partially approve and partially 
disapprove it. The Agency believes that its decision must be made in 
the context of the Northeast States' overall ozone emission reduction 
needs to meet the ozone standard. The Agency expects to consider the 
recommended measure as part of the overall attainment goal for the 
region, and anticipates gathering information regarding the recommended 
measure as it relates to the overall attainment effort through 
consultations and public hearings.
    The Agency will hold a public hearing before May 11, 1994, and will 
receive written comments until 30 days following the public hearing. 
The Agency will consider all relevant data, views, and comments in 
responding to the recommendation. The Agency will issue a second notice 
in the Federal Register in late March or early April 1994 that will 
provide specific information about the time and place of the public 
hearing and more detail about the process EPA intends to follow in 
reaching a decision. EPA also expects, in the forthcoming Federal 
Register notice, to describe a framework for reaching a decision and to 
identify and discuss significant issues.

ADDRESSES: The recommendation and supporting materials that the OTC 
submitted to EPA on February 10, 1994 are contained in Air Docket No. 
A-94-11 at: U.S. Environmental Protection Agency, 401 M Street SW., 
Washington, DC 20460. The public docket room is located in room M-1500, 
Waterside Mall (Ground Floor). Materials may be inspected from 8 a.m. 
until 4 p.m. Monday through Friday. EPA may charge a reasonable fee for 
copying docket materials. EPA will place all information relevant to 
the OTC's recommendations and to EPA's action on the recommendations in 
the docket.

FOR FURTHER INFORMATION CONTACT: Mike Shields, Office of Mobile 
Sources, U.S. EPA, 401 M Street SW., Washington, DC, 20460, telephone: 
(202) 260-3450.

SUPPLEMENTARY INFORMATION: The Northeast Ozone Transport Region (OTR) 
was established by operation of law under section 184 of the Clean Air 
Act (the Act) and is comprised of the States of Connecticut, Delaware, 
Maine, Massachusetts, Maryland, New Hampshire, New Jersey, New York, 
Pennsylvania, Rhode Island, Vermont, the District of Columbia, and the 
portion of Virginia that is within the Consolidated Metropolitan 
Statistical Areas that includes the District of Columbia.
    These States include a large number of ozone nonattainment areas, 
which are classified under section 181 of the Act into 4 categories 
with associated attainment dates: Marginal (1994); moderate (1996); 
serious (1999); and severe (2005 or 2007). For moderate, serious, and 
severe ozone nonattainment areas, under section 182 of the Act the 
States are obligated to submit demonstrations by November 15, 1994 that 
their State Implementation Plans (SIPs) will provide for attainment of 
the ozone standard by the applicable dates. Congress established the 
OTR in the 1990 Amendments to the Act based on the recognition that the 
transport of ozone and ozone precursors throughout the region may 
render the Northeast States' attainment strategies interdependent.
    Under section 184 of the Act, the Administrator established a 
Northeast Ozone Transport Commission for the OTR consisting of the 
Governor of each State or their designees, the Administrator or her 
designee, the Regional Administrators for the EPA regional offices 
affected (or the Administrator's designees), and an air pollution 
control official representing each State in the region, appointed by 
the Governor.
    Section 184(c) specifies a procedure for the OTC to develop 
recommendations for additional control measures to be applied within 
all or a part of the OTR if the OTC determines that such measures are 
necessary to bring any area in the OTR into attainment for ozone by the 
applicable dates in the Act. Section 184(c)(1) provides that:

    Upon petition of any States within a transport region for ozone, 
and based on a majority vote of the Governors on the Commission (or 
their designees), the Commission may, after notice and opportunity 
for public comment, develop recommendations for additional control 
measures to be applied within all or a part of such transport region 
if the commission determines such measures are necessary to bring 
any area in such region into attainment by the dates provided by 
[subpart II of part D of title I of the Clean Air Act].

    Section 184(c) also lays out procedures the Administrator is to 
follow in responding to recommendations from the OTC. Upon receipt of 
the recommendations, the Administrator is to publish a Federal Register 
notice stating that the recommendations are available and providing an 
opportunity for a public hearing within 90 days. The Administrator is 
also to ``commence a review of the recommendations to determine whether 
the control measures in the recommendations are necessary to bring any 
area in such region into attainment by the dates provided by [subpart 
II] and are otherwise consistent with [the] Act.'' Finally, in 
undertaking her review, the Administrator is to consult with members of 
the OTC and is to take into account the data, views, and comments 
received pursuant to the public hearing.
    Last, sections 184(c)(4) and (5) govern EPA's response to the OTC 
recommendations. The Administrator is to determine whether to approve, 
disapprove, or partially approve and partially disapprove the 
recommendations within nine months of receipt. For any disapproval, the 
Administrator is to specify:

    (i) Why any disapproved additional control measures are not 
necessary to bring any area in such region into attainment by the 
dates provided by [subpart II] or are otherwise not consistent with 
the Act; and
    (ii) Recommendations concerning equal or more effective actions 
that could be taken by the commission to conform the disapproved 
portion of the recommendations to the requirements of [section 184].

    Section 184(c)(5) provides that, upon approval or partial approval 
of any recommendations, the Administrator is to issue to each State in 
the OTR to which an approved requirement applies a finding under 
section 110(k)(5) that the State Implementation Plan (SIP) for that 
State is inadequate to meet the requirements of section 110(a)(2)(D). 
Section 110(a)(2)(D) provides, in pertinent part, that each State's SIP 
shall contain adequate provisions:

    (i) Prohibiting, consistent with the provisions of this title, 
any source or other type of emissions activity within the State from 
emitting any air pollutant in amounts which will--
    (I) Contribute significantly to nonattainment in, or interfere 
with maintenance by, any other State with respect to any such 
national primary or secondary ambient air quality standard.

    Under section 184(c)(5), the Administrator's finding of inadequacy 
under section 110(a)(2)(D) is to require that each affected State 
revise its SIP to include the approved additional control measures 
within one year after the finding is issued.
    The Administrator convened the OTC on May 7, 1991. Thereafter, the 
OTC moved to work toward a regional ozone strategy with emphasis on 
consensus agreements to adopt regional measures to address the ozone 
problem in the Northeast. To address the contribution of motor vehicles 
to the Northeast ozone problem, the OTC focused early on emissions 
standards for new motor vehicles and on adoption of federal 
reformulated gasoline throughout the OTR as potential additional 
control measures. The Clean Air Act, however, imposes certain 
limitations on the States' ability to adopt new motor vehicle emissions 
standards.
    Section 209 of the Act generally preempts States from establishing 
new motor vehicle emissions standards, leaving such regulation to EPA 
under title II of the Act. Section 209 does, however, provide an 
exception for California to adopt new motor vehicle emissions standards 
where the Administrator grants a preemption waiver based on a finding 
that California's standards will be, ``in the aggregate, at least as 
protective of public health and welfare as applicable Federal 
standards.'' Further, under section 177 of the Act, any State which has 
SIP provisions approved under part D of title I may adopt and enforce 
new motor vehicle emission standards for any model year if:

    (1) Such standards are identical to the California standards for 
which a waiver has been granted for such model year, and
    (2) California and such State adopt such standards at least two 
years before commencement of such model year (as determined by 
regulations of the Administrator).

    EPA has granted a waiver for California's ``Low Emission Vehicle'' 
program. This program generally calls for five categories of vehicles 
meeting progressively more stringent emissions standards: California 
Tier I vehicles; Transitional Low Emission Vehicles (TLEV); Low 
Emission Vehicles (LEV); Ultra-Low Emission Vehicles (ULEV); and Zero 
Emission Vehicles (ZEV). California has also established an overall 
non-methane organic gas (NMOG) standard that each manufacturer must 
meet for its fleet of new vehicles in a particular model year by 
selling any combination of vehicles certified by California as meeting 
standards for one of the five categories. In addition, under 
California's program, at least 2% of each manufacturers' new vehicle 
fleet sold in California must be ZEV's by 1998, and 10% by 2003.
    At its second meeting on July 16, 1991, the OTC adopted a 
Memorandum of Understanding (MOU) in which the State and District of 
Columbia Representatives agreed that, in view of the significant 
contribution of motor vehicles to the Northeast ozone problem, they all 
support California's Motor Vehicle Control Program, and call on their 
jurisdictions to cooperatively evaluate the feasibility, air quality 
benefits, and associated costs of this Program in the OTR. At its third 
meeting on October 29, 1991, the OTC States agreed to a further MOU 
providing that each OTC would take steps to implement California's Low 
Emission Vehicle program as soon as possible. New York and 
Massachusetts are the only States that have fully adopted the 
California LEV program in legislation and regulations without 
contingencies, and both States are set to implement their programs. The 
automobile manufacturers' have challenged the legality of both programs 
and both lawsuits are ongoing. Other States have adopted or are 
adopting the program contingent on regional program adoption, and the 
remaining States are at various stages of the legislative or regulatory 
process to adopt the program.
    In August 1993, Maine, Maryland, and Massachusetts petitioned the 
OTC to adopt a recommendation calling for the application of the 
California LEV program throughout the OTR. During the fall of 1993, the 
OTC held a number of public forums in various locations in the 
Northeast, and held a public hearing in Hartford, Connecticut on 
December 16-17, 1993. Finally, at its winter meeting on February 1, 
1994 in Washington, DC, the OTC voted by a 9 to 4 majority to recommend 
that EPA mandate the California LEV program throughout the OTR. (The 
OTC refers to the program they recommend as ``OTC LEV.'') New 
Hampshire, Virginia, Delaware, and New Jersey voted against the 
recommendation. The OTC's recommendation contains the following 
elements:
    (1) The OTC LEV program would be applicable to all 1999 and 
subsequent model year passenger cars and light duty trucks in the OTR;
    (2) Subject to certain very limited exceptions, all vehicles sold, 
imported, delivered, purchased, leased, rented, acquired, received, or 
registered in the OTR that are subject to the OTC LEV program must be 
certified pursuant to a California Air Resources Board (CARB) Executive 
Order;
    (3) The OTC LEV program would allow the sale of the five categories 
of California vehicles: California Tier I, TLEV, LEV, ULEV, and ZEV;
    (4) Manufacturers could choose any combination of California 
certified vehicles to meet average NMOG fleet emission standards in the 
OTR as follows:

1999--0.113 g/mi
2000--0.073 g/mi
2001--0.070 g/mi
2002--0.068 g/mi
2003 and later--0.062 g/mi

    Regarding California's ZEV sales mandate, the OTC recommends that, 
to the extent it must apply to satisfy section 177, it shall apply. But 
if it is not required under section 177, the OTC recommends that the 
``individual States within the OTC may at their option include such a 
requirement and/or economic incentives designed to increase the sales 
of ZEVs in the programs they adopt.''
    (5) The effective date for the OTC LEV program would be January 1, 
1996, allowing two vehicle model years prior to applicability of the 
standards in 1999, but does not preclude earlier State implementation.
    EPA believes that its decision whether to approve the OTC's 
recommendation raises substantial and difficult questions that must be 
made in the context of the Northeast States' overall emission reduction 
needs to attain the ozone standard. The Agency thus believes that the 
scope of its review should be broad enough to encompass the context of 
the particular LEV measure that the OTC recommends. The States are 
currently developing their overall strategy (including emissions 
inventory work, modeling work, and analysis of the full range of 
potential control measures), in preparation for the November 15, 1994 
attainment demonstration deadline. The Agency believes that this 
November 15 deadline is critical to the States' progress toward timely 
attainment. The Agency expects to undertake thorough consultations with 
the members of the commission and the affected States, and to provide 
an opportunity for all interested members of the public to provide 
data, views, and other information that may assist EPA in reaching a 
decision. The Agency believes that, in determining whether the 
recommended LEV measure is ``necessary'' under section 184, it should 
consider the measure as part of the overall emission reduction needs 
for the region, and anticipates gathering information regarding the 
recommended measure as it relates to the overall emission reductions 
needs through consultations and public hearings. The EPA urges those 
who intend to prepare testimony and written comments to begin 
considering this issue in the context of the total attainment 
requirements for the region, and to provide comments on the overall 
emission reduction needs of the region.
    As noted above, the Agency will provide a further Federal Register 
notice in late March or early April that will provide specific 
information about the time and place of the public hearing and more 
detail about the process EPA intends to follow in reaching a decision. 
EPA also expects to describe a framework for reaching its decision and 
to discuss significant issues for public comment in this forthcoming 
notice.

    Dated: March 10, 1994.
Mary D. Nichols,
Assistant Administrator for Air and Radiation.
[FR Doc. 94-6452 Filed 3-17-94; 8:45 am]
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