[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.

-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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