[Federal Register Volume 61, Number 54 (Tuesday, March 19, 1996)]
[Proposed Rules]
[Pages 11170-11172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6465]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[VA 0054-5006a; FRL-5441-1]


Approval and Promulgation of Air Quality Implementation Plans; 
Richmond, Virginia--NOX Exemption Petition

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing to approve a request for an exemption 
from the oxides of nitrogen (NOX) reasonably available control 
technology (RACT) requirement of the Clean Air Act (Act) for the 
Richmond moderate ozone nonattainment area. The exemption request, 
submitted by the Commonwealth of Virginia's Department of Environmental 
Quality, is based upon the most recent three years of ambient air 
monitoring data which demonstrate that additional reductions of 
NOX would not contribute to attainment of the National Ambient Air 
Quality Standard (NAAQS) for ozone in the area. The intended effect of 
this action is to propose approval of a request for an exemption from 
the NOX RACT requirement for the Richmond moderate ozone 
nonattainment area. This action is being taken under section 182(f) of 
the Clean Air Act. Elsewhere in today's Federal Register, EPA has 
published an interim final determination to stay and defer sanctions 
for the duration of EPA's rulemaking process on the exemption petition.

DATES: Comments must be received on or before April 18, 1996.

ADDRESSES: Comments may be mailed to Marcia L. Spink, Associate 
Director, Air Programs, Mailcode 3AT00, U.S. Environmental Protection 
Agency, Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 
19107. Copies of the documents relevant to this action are available 
for public inspection during normal business hours at the Air, 
Radiation, and Toxics Division, U.S. Environmental Protection Agency, 
Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107. 
Copies of the documents relevant to this action are available for 
public inspection during normal business hours at the EPA address 
above.

FOR FURTHER INFORMATION CONTACT: Christopher H. Cripps, (215) 597-0545, 
at the EPA Region III address above or via e-mail at 
[email protected]. While information may be requested 
via e-mail, comments must be submitted in writing to the EPA Region III 
address above.

SUPPLEMENTARY INFORMATION: On December 18, 1995, the Virginia 
Department of Environmental Quality requested that the Richmond ozone 
nonattainment area be exempt from the NOX RACT requirement of 
section 182(f) of the Act.

Background

    The air quality planning requirements for the reduction of NOX 
emissions are set out in section 182(f) of the Act. Section 182(f) of 
the Act requires states with areas designated nonattainment for ozone 
and classified as moderate and above to impose the same control 
requirements for major stationary sources of NOX as apply to major 
stationary sources of volatile organic compound (VOC) emissions. 
Section 182(f) provides further that these NOX requirements do not 
apply to areas outside an ozone transport region if EPA determines that 
additional reductions of NOX would not contribute to attainment in 
such areas. In an area that did not implement the section 182(f) 
NOX requirements, but did attain the ozone standard as 
demonstrated by ambient air monitoring data [consistent with 40 CFR 
Part 58 and recorded in the Aerometric Information Retrieval System 
(AIRS)], it is clear that the additional NOX reductions required 
by section 182(f) did not contribute to attainment of the NAAQS.
    On July 8, 1994, EPA notified the Governor of Virginia that the 
Commonwealth had failed to submit a NOX RACT SIP revision for the 
Richmond ozone nonattainment area. This finding commenced the sanctions 
process outlined by section 179 of the Act as implemented by 40 CFR 
52.31. (See 59 FR 39832, August 4, 1994). The two to one (2:1) offset 
sanction has been in effect in the Richmond ozone nonattainment area as 
of January 8, 1996 as a result of the July 8, 1994 finding and cannot 
be lifted until either a NOX RACT SIP is received by EPA and 
deemed complete or a NOX waiver under section 182(f) is granted. 
In the Final Rules section of today's Federal Register, EPA has 
published an interim final determination to stay and defer sanctions 
for the duration of EPA's rulemaking process on the exemption petition.
    The Commonwealth of Virginia could have submitted a NOX RACT 
regulation to stop the sanction clock resulting from the July 1994 
finding since it had started the process to adopt a NOX RACT 
regulation for the Richmond ozone nonattainment area. A public hearing 
was held on August 28, 1995 to amend

[[Page 11171]]
the existing NOX RACT regulation to extend the applicability of 
Part IV, Rule 4-4 Operations, section 120-04-0408 entitled ``Standard 
for nitrogen oxides'' to sources with a potential to emit of 100 or 
more tons per year of NOX to the Richmond ozone nonattainment 
area. This amendment to the existing NOX RACT regulation was not 
adopted and submitted to EPA.
    The criteria established for the evaluation of an exemption request 
from the section 182(f) requirements are set forth in two EPA memoranda 
from John S. Seitz, Director of EPA's Office of Air Quality Planning 
and Standards, issued on May 27, 1994 and February 8, 1995, both 
entitled, ``Section 182(f) Nitrogen Oxides (NOX) Exemptions-
Revised Process and Criteria'', and an EPA guidance document entitled 
``Guidelines for Determining the Applicability of Nitrogen Oxides 
Requirements Under Section 182(f),'' dated December 1993, from EPA's 
Office of Air Quality Planning and Standards, Air Quality Management 
Division.

State Petition

    On December 18, 1995, the Commonwealth of Virginia's Department of 
Environmental Quality submitted a NOX exemption petition that 
would exempt the Richmond ozone nonattainment area from the NOX 
RACT requirement under section 182(f) of the Act. The exemption request 
is based upon ambient air monitoring data for 1993, 1994, and 1995, 
which demonstrate that the NAAQS for ozone has been attained in the 
area without additional reductions of NOX.

EPA Analysis of the Petition

    An exceedance of the ozone NAAQS occurs when the daily-maximum, 
hourly ozone value exceeds 0.12 parts per million (ppm). A violation of 
the ozone NAAQS occurs when the average number of expected exceedances, 
which is determined by using the procedure of 40 CFR Part 51, Appendix 
H, is greater than 1.0 at any one ozone monitoring site in the area 
during a three year period. The Richmond ozone nonattainment area 
contains four monitors for measuring ambient concentrations of ozone. 
Information on the monitors and on the number of exceedances for 1993 
through 1995 are detailed in the technical support document (TSD). 
Appendix C of the TSD provides calculations of the estimated number of 
exceedances for each monitor, as well as the three-year average number 
of expected exceedances. The sites with the greatest number of expected 
exceedances for the period from 1993 to 1995 were the monitors located 
in Charles City County and Hanover County. Both have an annual average 
exceedance value of 1.0. Three exceedances were recorded at the monitor 
in Charles City County during 1993, but no exceedances were recorded in 
either 1994 or 1995. The monitor in Hanover County recorded one 
exceedance per year for the period from 1993 to 1995. Both the monitor 
in Charles City County and the monitor in Hanover County have an 
average, annual number of expected exceedances that does not exceed 
1.0. Only one exceedance was recorded during 1995 at the monitor in 
Henrico County for the period from 1993 to 1995. The monitor in 
Chesterfield County recorded one exceedance in 1993, none in 1994 and 
one in 1995. Thus, the Richmond ozone nonattainment area is currently 
not recording any violations of the air quality standard for ozone.
    EPA has reviewed the ambient air monitoring data for ozone 
submitted by the Commonwealth of Virginia in support of the exemption 
request and has determined that a violation of the ozone NAAQS has not 
occurred in the Richmond ozone nonattainment area for the relevant 
three year period. Because the ambient air data for Richmond adequately 
demonstrates that the nonattainment area is meeting the ozone NAAQS, 
and the exemption request for the area meets the applicable criteria 
contained in the EPA policy and guidance documents referenced above, 
the petition is approvable.
    Once a petition has been granted, but during the period while the 
area is still designated nonattainment for ozone, the continuation of 
the section 182(f) exemption is contingent upon continued monitoring 
that demonstrates continued attainment of the ozone NAAQS in the entire 
Richmond ozone nonattainment area. If there is a violation of the ozone 
NAAQS in any portion of the Richmond ozone nonattainment area, the 
exemption will no longer be applicable as of the date of such 
determination as provided in a notice in the Federal Register. A 
determination that the NOX exemption no longer applies would mean 
that NOX requirements would once more be applicable to the 
affected area. EPA believes some reasonable period of notice is 
necessary to provide major stationary sources subject to the RACT 
requirements time to purchase, install, and operate any required 
controls. Accordingly, the Commonwealth may provide sources a 
reasonable time period to meet the RACT emission limits after the EPA 
determination that NOX RACT requirements are necessary. EPA 
expects the time period to be as expeditious as practicable, but in no 
case longer than 24 months.

Sanctions

    If EPA takes final action approving the December 18, 1995 exemption 
petition, then the Richmond ozone nonattainment area would not be 
subject to the NOX RACT requirement for the duration of the 
exemption. Further, approval of the December 18, 1995 exemption 
petition would stop the application of the offset sanction imposed on 
January 8, 1996 and defer application of further sanctions contingent 
on continued attainment of the ozone NAAQS. If, prior to the area being 
redesignated to attainment, the NOX exemption is revoked due to a 
monitored violation of the NAAQS, EPA believes it is appropriate to 
provide the State a reasonable period of time before the re-application 
of sanctions would become effective. EPA's notice in the Federal 
Register of the waiver revocation would address when sanctions would be 
re-applied.

Other Environmental Effects

    While EPA is proposing to waive the requirements to control 
NOX emissions in the Richmond ozone nonattainment area on the 
basis that NOX emission reductions would not contribute to 
attainment of the ozone NAAQS in Richmond, EPA recognizes that there 
are other benefits to controlling NOX. These benefits include 
reducing acid deposition, reducing nitrogen deposition in sensitive 
estuaries, and their watersheds, in particular the Chesapeake Bay, and 
mitigating ozone nonattainment problems further downwind. The EPA has 
performed several simulations using the Regional Oxidant Model (ROM) 
analyzing alternative regional emissions control strategies for the 
Ozone Transport Commission (OTC). Several of the major findings of 
these OTC/EPA ROM simulations were: (1) From a regional perspective, 
NOX reductions generally provide greater benefits than VOC 
reductions; (2) combined regional NOX controls, with urban VOC 
controls, may be an effective strategy; (3) the controls mandated by 
the Act are estimated to effectively reduce ozone concentrations, but 
will be insufficient to achieve the NAAQS throughout the ozone 
transport region (OTR); and (4) extending NOX controls to outside 
of the OTR may have some benefits in reducing ozone concentrations 
inside the OTR depending on weather conditions.

Maintenance Benefits of NOX RACT

    EPA believes that adoption and implementation of NOX RACT 
controls

[[Page 11172]]
in the Richmond ozone nonattainment area would assist maintenance of 
the ozone NAAQS in the Richmond area by compensating for future growth 
in point, area and mobile source NOX emissions. Consequently, the 
Commonwealth of Virginia may choose, at any time, to implement such 
NOX controls by adoption and implementation of their NOX RACT 
regulation for the Richmond area. Nothing in this notice or approval of 
the December 18, 1995 exemption petition will preclude the Commonwealth 
of Virginia from adopting a NOX RACT regulation for the Richmond 
area and withdrawing the exemption petition.
    Detailed descriptions of the petition addressed in this document, 
and EPA's evaluation of this petition, are contained in the TSD 
prepared for this action. Copies of the TSD are available from the EPA 
Regional office listed in the ADDRESSES section of this document.
    EPA's review of this material indicates that the Virginia petition 
meets applicable requirements of the Act and EPA policy. EPA is 
proposing to approve the exemption from the NOX requirements 
discussed herein. EPA is soliciting public comments on the issues 
discussed in this notice or on other relevant matters. These comments 
will be considered before taking final action. Interested parties may 
participate in the Federal rulemaking procedure by submitting written 
comments to the EPA Regional office listed in the ADDRESSES section of 
this document.

Proposed Action

    EPA is proposing approval of Virginia's request to exempt the 
Richmond moderate ozone nonattainment area from the section 182(f) 
NOX RACT requirement. This proposed approval is based upon the 
evidence provided by Virginia that the criteria outlined in the EPA 
guidance for section 182(f) exemptions have been met for the Richmond 
ozone nonattainment area. If a violation of the ozone NAAQS occurs in 
the Richmond ozone nonattainment area while this area is designated 
nonattainment for ozone, the exemption from the NOX RACT 
requirement under section 182(f) of the Act shall no longer apply.
    Final approval of Virginia's NOx exemption petition would stop 
application of the offset sanction imposed on January 8, 1996 and defer 
application of future sanctions on the effective date of the waiver 
approval. Sanctions would then remain stopped or deferred contingent 
upon continued monitoring that demonstrates continued attainment of the 
ozone NAAQS in the entire Richmond ozone nonattainment area. If there 
is a violation of the ozone NAAQS in any portion of the Richmond ozone 
nonattainment area while this area is designated nonattainment for 
ozone, the exemption will no longer be applicable as of the date of any 
such determination. Should this occur, EPA will provide notice both of 
the waiver revocation and of the date sanctions will re-apply in the 
Federal Register. A determination that the NOx exemption no longer 
applies would mean that the NOx requirements become once more 
applicable to the affected area, that the sanctions would be 
reinstated, and that deferred sanctions would be imposed on the date 
originally due or the effective date of the notice, whichever is later.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for NOx 
exemptions under section 182(f). Each request for an exemption under 
section 182(f) shall be considered separately in light of specific 
technical, economic, and environmental factors and in relation to 
relevant statutory and regulatory requirements.
    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. Exemptions under section 182(f) do not create any new 
requirements, but allow suspension of the indicated requirements for 
the life of the exemptions. Therefore, because the approval does not 
impose any new requirements, the Administrator certifies that it does 
not have a significant impact on any small entities affected.
    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under section 205, EPA 
must adopt the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the proposed approval action does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. EPA's proposed action will relieve 
requirements otherwise imposed under the Clean Air Act and, hence does 
not impose any Federal intergovernmental mandate, as defined in section 
101 of the Unfunded Mandates Act. Accordingly, no additional costs to 
State, local, or tribal governments, or to the private sector, result 
from this action.
    This action is not a SIP revision and is not subject to the 
requirements of section 110 of the Act. The authority to approve or 
disapprove exemptions from NOX requirements under section 182 of 
the Act was delegated to the Regional Administrator from the 
Administrator in a memo dated July 6, 1994, from Jonathan Cannon, 
Assistant Administrator, to the Administrator, titled, ``Proposed 
Delegation of
    Authority: Exemptions from Nitrogen Oxide Requirements Under Clean 
Air Act Section 182(f) and Related Provisions of the Transportation and 
General Conformity Rules'--Decision Memorandum.''
    The EPA's decision to approve or disapprove the Virginia petition 
to exempt the Richmond ozone nonattainment area from NOx RACT 
requirements will be based on whether it meets the requirements of 
section 182(f) of the Clean Air Act.
List of Subjects in 40 CFR Part 52
    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements.

    Authority: 42 U.S.C. 7401-7671q.

    Dated: March 7, 1996.

Stanley L. Laskowski,
Acting Regional Administrator, Region III.
[FR Doc. 96-6465 Filed 3-18-96; 8:45 am]
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