[Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11399]
[[Page Unknown]]
[Federal Register: May 10, 1994]
_______________________________________________________________________
Part X
Environmental Protection Agency
_______________________________________________________________________
40 CFR Parts 52 and 81
Air Quality Implementation Plans, CA; Proposed Rule
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 52 and 81
[FRL-4884-1]
Approval and Promulgation of Federal Implementation Plans;
California--Sacramento and Ventura Ozone; South Coast Ozone and Carbon
Monoxide; Sacramento Ozone Area Reclassification
AGENCY: U.S. Environmental Protection Agency (EPA).
ACTION: Supplemental proposed rulemaking; notice of hearing.
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SUMMARY: EPA is making technical corrections to proposed federal
implementation plans (FIPs) to attain the national ambient air quality
standards (NAAQS) for ozone in the Sacramento and Ventura nonattainment
areas, and for ozone and carbon monoxide in the South Coast
nonattainment area. The corrections relate to the proposed ``cap
rules'' for stationary and area sources and the Parking Cash Out
program. EPA is also establishing FIP public hearing dates and
locations in the three affected areas.
DATES: The deadline for written comments is August 31, 1994.
Public hearings will be held on July 18, July 20, and July 25,
1994, at 10 a.m. The Supplementary Information portion of this notice
provides additional information on the public hearing.
ADDRESSES: Public hearings will be held in the South Coast, Ventura,
and Sacramento, CA. See Supplementary Information.
Written comments on the proposed FIP and SIP promulgations must be
received by EPA at the address below on or before the close of the
public comment period. Comments should be submitted (in duplicate, if
possible) to: EPA Air Docket Section, Attn: Docket No. A-94-09,
Environmental Protection Agency (Mail Code--6102), Waterside Mall, Room
M-1500, 401 M Street, S.W., Washington, DC 20460, (phone 202-260-7549).
Docket No. A-94-09, containing material relevant to this NPRM, is
located at the above address. The docket is available for public
inspection between 8:30 a.m. and 12 noon, and between 1:30 p.m. and
3:30 p.m. EPA may charge a reasonable fee for copying.
A copy of the docket is also available for review at: Regional
Administrator, Attention: Office of Federal Planning (A-1-2), Air and
Toxics Division, Environmental Protection Agency, Region, IX, 75
Hawthorne Street, San Francisco, CA 94105-3901.
Interested persons may make an appointment with Ms. Virginia
Petersen at (415) 774-1265, to inspect the docket of EPA's San
Francisco office on weekdays between 9 a.m. and 4 p.m.
Copies of this NPRM, the technical support document, and the
regulatory impact analysis, are also available for review at the
addresses listed below:
California Air Resources Board, 2020 L Street, Sacramento, California
Sacramento Metropolitan Air Quality Management District, 8411 Jackson
Road, Sacramento, California
Sacramento Area Council of Governments, 3000 S Street, Suite 300,
Sacramento, California
El Dorado County Air Pollution Control District, 2850 Fair Lane Court,
Bldg. C, Placerville, California
Feather River Air Quality Management District, 463 Palora Avenue, Yuba
City, California
Placer County Air Pollution Control District, 11464 B Avenue, Auburn,
California
Yolo-Solano County Air Pollution Control District, 1947 Galileo Court,
Suite 103, Davis, California
South Coast Air Quality Management District, 21865 E. Copley Drive,
Diamond Bar, California
South Coast Air Quality Management District, Colton Office, 851 S. Mt.
Vernon Avenue, Colton, California
Southern California Association of Governments, 818 W. 7th Street, Los
Angeles, California
Southern California Association of Governments, Inland Empire Office,
3600 Lime Street, Riverside, California
Ventura County Air Pollution Control District, 702 County Square Drive,
Ventura, California
Electronic Availability
This document is available May 10, 1994 as an electronic file on
EPA's Technology Transfer Network (TTN). For 1200 bps or 2400 bps
modems, use 919-541-5742; for 9600 bps use 919-541-1447. The FIP NPRM
is under the Clean Air Act Amendments (CAAA) board, in a section for
``Recently Signed Rules.'' users should check the initial CAAA
announcement screen for updates on file availability. Because of its
size, the FIP NPRM is divided into several pieces, and stored in the
compressed ``ZIP'' archive format. The file name for this notice is
``CALFIP12.ZIP''. If you need help in accessing the system, call the
systems operator by phone at (919) 541-5384 in Durham, North Carolina.
FOR FURTHER INFORMATION CONTACT:
For information on the California FIPs generally, the public hearing,
and the ``cap rules,'' call EPA's FIP Hotline (415) 744-1151, or Julia
Barrow (415) 744-2434, at the Office of Federal Planning (A-1-2), Air
and Toxics Division, U.S. EPA, Region IX, 75 Hawthorne Street, San
Francisco, California, 94105-3901
For information on the Parking Cash Out program, call Jon Kessler, (202
260-3761, at the Office of Policy, Planning and Evaluation, U.S. EPA,
401 M Street, SW, Washington, DC 20460, EPA's FIP Hotline (313) 668-
4361, or Jane Armstrong (313) 668-4471, at the EPA Office of Mobile
Sources, Motor Vehicle and Fuels Emissions Laboratory 2565 Plymouth
Road, Ann Arbor, Michigan, 48105
SUPPLEMENTARY INFORMATION:
I. Public Meetings
EPA will hold a public hearing in the South Coast at 10 a.m. on
July 18, 1994, at the auditorium of the South Coast Air Quality
Management District, 21865 E. Copley Drive, Diamond Bar, California; in
Ventura at 10:00 a.m. on July 20, 1994, at the Ventura County Hall of
Administration Building, Lower Plaza Assembly Room, 800 S. Victoria
Avenue, Ventura, California; and in Sacramento at 10 a.m. on July 25,
1994, at the PERS Building, 400 P Street, Sacramento, California. In
order to be considered for the final promulgation, public comments must
be submitted orally at the public hearing or in writing to the Agency
on or before August 31, 1994. Commenters may provide testimony on any
part of the FIPs at any one of the hearing locations. Commenters need
only testify at one of the hearing locations (e.g., it is sufficient to
testify on the Sacramento FIP at the South Coast location).
Each of the three public hearing days will be conducted in three
sessions beginning at 10:00 a.m., 2:00 p.m., and 7:00 p.m., with a
lunch recess before the 2:00 p.m. and a dinner recess before the 7:00
p.m. sessions. Depending on the number of requests to testify, the
hearing officer may impose a time limit of 5 to 10 minutes per
commenter. Commenters are urged to bring a copy (multiple copies, if
possible) of their full testimony for the hearing officer.
II. ``Cap Rules''
EPA's proposed ozone FIPs for the Sacramento, Ventura, and South
Coast areas of California include ``cap rules'' for certain stationary
and area source categories. Cap rules to achieve reductions in volatile
organic compounds (VOCs) are proposed for each area, and a cap rule for
nitrogen oxides (NOx) is proposed for Ventura. See proposed rules
40 CFR 52.2952 (Sacramento VOC cap rule), 40 CFR 52.2953 (Ventura VOC
cap rule), 40 CFR 52.2954 (South Coast VOC cap rule), and 40 CFR
52.2955 (Ventura NOx cap rule).
The preamble discussion of these rules, in section III.C.5. of the
NPRM, indicates that facilities with emissions equal to or greater than
2 tons per year will be subject to the exemption verification reporting
requirements of the proposed rule, while facilities with emissions
equal to or greater than 4 tons per year would be subject to the annual
emission reduction requirements.
The proposed rules, however, mistakenly indicate that the reporting
requirements apply to facilities with emissions greater than or equal
to 4.5 kg (10 lbs) per day, and that the reduction requirements apply
to facilities with emissions greater than or equal to 6.8 kg (15 lbs)
per day.
Accordingly, in this notice EPA proposes to correct the
applicability levels throughout the proposed VOC and NOx cap
rules, to make the rules consistent with EPA's intention, as reflected
in the preamble to the NPRM. EPA proposes the following emendations to
proposed 40 CFR 52.2952, 40 CFR 52.2953, 40 CFR 52.2954, and 40 CFR
52.2955:
The phrase ``greater than or equal to 6.8 kg (15 lbs) during any
one day'' is revised to read as follows: ``greater than or equal to 4
tons during any one year.''
The phrase ``less than 6.8 kg (15 lbs) during any one day, but
greater than or equal to 4.5 kg (10 lbs) during any one day'' is
revised to read as follows: ``less than 4 tons during any one year, but
greater than or equal to 2 tons during any one year.''
The phrase ``greater than or equal to 4.5 kg (10 lbs) during any
one day'' is revised to read as follows: ``greater than or equal to 2
tons during any one year.''
In addition, the proposed NOx cap rule for Ventura includes an
incorrect reference to applicable quality assurance and quality control
requirements for continuous emissions monitoring systems (CEMS). The
first sentence of Sec. 52.2955(a)(4)(i) is revised to read as follows:
``Major sources as defined under the Clear Air Act shall install CEMS
that meet the quality assurance and quality control requirements of
appendix B of part 75 of this chapter.''
III. Parking Cash Out
The proposed California FIPs also include a Parking Cash Out
program, which is discussed in section III.D.2.g. of the preamble to
the proposed rulemaking. The discussion below provides a corrected
description of, and supplementary information on, the proposed Parking
Cash Out program.
Parking Cash Out aims to reduce the incentive to drive to work via
single-occupant mode that results when employers offer their employees
free parking without other commute benefit options. A Parking Cash Out
program gives employees the power to choose the form of their commute
benefits. Under such a program, an employer who offers parking benefits
would also offer the option of a cash allowance equal in value to the
cost of the parking. Employers who offer Parking Cash Out give
employees who rideshire or leave the car at home a powerful financial
reward. By shifting dollars from parking to paychecks, a well designed
Parking Cash Out program can produce emissions reductions without
significant employer costs or new administrative burdens. And Parking
Cash Out will assist employers in complying with the Employee Commute
Option (ECO) programs in each of the FIP areas.
As part of his Climate Change Action Plan, President Clinton is
proposing a change in the tax law to encourage employers who offer tax-
exempt parking subsidies to their employees to offer a Parking Cash Out
alternative. The goal of the FIP language is to incorporate Parking
Cash Out for the FIP areas in a manner consistent with EPA authority.
The FIP does not include a modification of the tax code, but merely
aims to take credit for expected implementation of the President's
proposal. It is expected that the President's Parking Cash Out
legislative proposal will be acted on in the current session of
Congress, that implementation will begin with the 1995 tax year.
Under the President's proposal, employers will for the first time
be allowed to offer compensation and financial incentives such as cash
and transit passes (Cash Out programs) as an option to tax-exempt
parking benefits. Current law does not allow employers to offer Cash
Out programs in lieu of tax-exempt parking benefits. This new
flexibility will apply to all employers, regardless of the type of
value of parking benefits offered.
Also, under the President's proposal, employers in certain
circumstances will be required to offer a Cash Out program as an option
to tax-exempt parking subsidies. As described in the Climate Change
Action Plan, this Cash Out requirement will apply to employers who
offer tax-exempt parking subsidies to their employees in the following
circumstances.
It will apply to parking spaces currently leased by employers from
a third party for which the lease allows a reduction in the number of
spaces without penalty. It will also apply to all parking subject to
new lease agreements made after the date of implementation.
The program will not apply to employer-owned parking, parking
provided by firms with fewer than 25 employees, or parking spaces
valued below a de minimis threshold. These exemptions ensure that the
Cash Out requirement apples only where employers can easily shift
expenditures from parking to paychecks. However, all employers will for
the first time be allowed to offer Parking Cash Out options to tax-
exempt parking benefits without incurring tax penalties. EPA will
actively encourage employers in the FIP areas, even those exempt from
the Cash Out requirement, to begin offering Cash Out programs.
The President's proposal also clarifies the tax status of parking
and other commute benefits under a Cash Out program. Employees who opt
for parking spaces will be unaffected by the change. Their parking will
remain tax-exempt. Those employees who opt for cash may receive it as
additional income, which is taxable, or as a transit pass, which is
tax-free up to $60 per month.\1\ Employers may withhold from the Cash
Out offer a percentage sufficient to cover payroll taxes on cash taken
and may deduct from corporate taxes the cost of parking and of a Cash
Out program.
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\1\Cash taken as part of a Parking Cash Out program is subject
to federal taxes calculated on the basis of gross income, such as
FICA. However, California state law exempts Cash Out payments from
State income tax.
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In the FIP areas, the President's proposal builds on and in many
ways enhances the State of California's Cash Out program (referred to
as AB 2109), which is administered by the California Air Resources
Board. Begun in 1992, the California program requires a limited number
of employers to offer a Parking Cash Out alternative to subsidized
employee parking. AB 2109 also encourages local agencies to remove
zoning requirements that force developers to build more parking than is
necessary. The President's proposal eliminates a major impediment to
the timely implementation of AB 2109--the federal tax penalties
incurred by employers who implement Parking Cash Out programs under
current tax law. Current law does not allow employers to offer Cash Out
programs in lieu of tax-exempt parking benefits. As such, parking
accompanied by Cash Out is disqualified from the existing income tax
exemption for employer-provided parking. California employers surveyed
by EPA and by other organizations cite this as a barrier to low cost
implementation of Parking Cash Out. The President's proposal would
eliminate the tax penalties incurred by employers who offer Cash Out by
allowing Cash Out as an option to tax-exempt parking subsidies.
Questions on the President's Parking Cash Out proposal should be
directed to Jon Kessler of EPA's Office of Policy, Planning and
Evaluation at (202) 260-3761.
List of Subjects in 40 CFR Parts 52 and 81
Environmental protection, Air pollution control, Carbon monoxide,
Hydrocarbons, Incorporation by reference, Intergovernmental relations,
Oxides of nitrogen, Ozone, Reporting and recordkeeping requirements.
Dated: May 4, 1994.
Carol M. Browner,
Administrator.
Accordingly, part 52 of title 40 of the Code of Federal Regulations
as proposed in the Federal Register ext 59 FR 23264 is proposed to be
further amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401-7671q.
Subpart GG--California Federal Implementation Plans
2. In Secs. 52.2952, 52.2953, 52.2954, and 52.2955, the phrase
``greater than or equal to 6.8 kg (15 lbs) during any one day'' is
revised to read ``greater than or equal to 4 tons during any one year''
everywhere it appears.
3. In Secs. 52.2952, 52.2953, 52.2954, and 52.2955, the phrase
``less than 6.8 kg (15 lbs) during any one day, but greater than or
equal to 4.5 kg (10 lbs) during any one day'' is revised to read ``less
than 4 tons during any one year, but greater than or equal to 2 tons
during any one year'' everywhere it appears.
4. In Secs. 52.2952, 52.2953, 52.2954, and 52.2955, the phrase
``greater than or equal to 4.5 kg (10 lbs) during any one day'' is
revised to read ``greater than or equal to 2 tons during any one year''
everywhere it appears.
5. The first sentence of paragraph 52.2955(a)(4)(i) is revised to
read ``Major sources as defined under the Clean Air Act shall install
CEMS that meet the quality assurance and quality control requirements
of appendix B of part 75 of this chapter.''
[FR Doc. 94-11399 Filed 5-9-94; 8:45 am]
BILLING CODE 6560-50-P