[Federal Register Volume 61, Number 198 (Thursday, October 10, 1996)]
[Proposed Rules]
[Pages 53174-53180]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-25894]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[PA036-4016, PA036-4017; FRL-5633-6]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Redesignation Request, Maintenance Plan, and Emissions 
Inventory for the Reading Ozone Nonattainment Area; Policy Change for 
Ozone Redesignations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a redesignation request for the 
Reading ozone nonattainment area, and State Implementation Plan (SIP) 
revisions submitted by the Commonwealth of Pennsylvania, contingent 
upon Pennsylvania's correction of all deficiencies contained in the 
request and SIP revision. The revisions consist of a maintenance plan 
and 1990 base year inventories for the Reading ozone nonattainment 
area. EPA is also proposing to disapprove the redesignation request and 
SIP revisions for the Reading area, if Pennsylvania does not correct 
the deficiencies. In addition, for the purposes of redesignation, EPA 
is proposing to approve Pennsylvania's legislative authority to adopt 
and implement a vehicle inspection and maintenance program. These 
actions are being taken under sections 107 and 110 of the Clean Air 
Act. Furthermore, EPA is proposing a change in its policy on 
redesignation requirements for ozone nonattainment areas in the Ozone 
Transport Region (OTR). The proposed policy change makes redesignation 
requirements for areas in the OTR consistent with

[[Page 53175]]

requirements for areas outside the OTR by interpreting meeting the 
requirements under section 184 of the Clean Air Act as not being a 
prerequisite for the purpose of redesignation. The policy does not 
affect duplicate requirements under other sections of the Act.

DATES: Comments must be received on or before November 12, 1996.

ADDRESSES: Comments may be mailed to David L. Arnold, Chief, Ozone/CO & 
Mobile Sources Section, Mailcode 3AT21, 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 and 
the Pennsylvania Department of Environmental Protection, Bureau of Air 
Quality, P.O. Box 8468, 400 Market Street, Harrisburg, Pennsylvania 
17105.

FOR FURTHER INFORMATION CONTACT: Maria A. Pino, (215) 566-2181, at the 
EPA Region III office address listed above, or via e-mail at 
[email protected]. While information may be requested via e-
mail, comments must be submitted in writing to the above Region III 
address.

SUPPLEMENTARY INFORMATION: On November 12, 1993, the Commonwealth of 
Pennsylvania formally submitted a redesignation request for the Reading 
ozone nonattainment area. At the same time, the Commonwealth submitted 
a maintenance plan for the Reading area as a SIP revision. The 
maintenance plan was subsequently amended on January 13, 1994 and, 
again, on May 12, 1995. On November 12, 1992, Pennsylvania submitted 
its 1990 base year VOC, NOx, and CO inventories for all areas in the 
Commonwealth. On November 12, 1993, Pennsylvania included revisions to 
its 1990 base year inventories for the Reading area as part of the SIP 
revision submittal, along with the maintenance plan.

Background

    The Reading area, which includes Berks County, is designated 
nonattainment for ozone and is classified as moderate (56 FR 56694). 
Monitored air quality data recorded in the Reading area first met the 
ozone National Ambient Air Quality Standard (NAAQS) during the three-
year period 1989-1991, and continues to meet the NAAQS.
    On July 19, 1995, EPA published a final rule (1) determining that 
the Reading area and the Pittsburgh-Beaver Valley area (the Pittsburgh 
area) had attained the ozone standard, and (2) waiving the Clean Air 
Act requirements for a 15% plan, an attainment demonstration, and 
contingency measures for these areas (60 FR 37015). This action also 
lifted sanctions imposed on the areas for failure to submit these 
requirements. EPA took this action pursuant to a May 10, 1995 policy 
that allows a waiver of these requirements for areas that show, through 
air quality monitoring data, that they meet the ozone standard. 
Subsequently, a lawsuit was filed against EPA on the application of 
this waiver policy.
    A settlement agreement between EPA and the petitioners in the 
lawsuit (the Delaware Valley Citizens' Council for Clean Air, also 
known as the Clean Air Council) was signed on May 20, 1996, and a 
notice regarding it was published in the Federal Register on May 29, 
1996 (61 FR 26903). By agreement with the petitioners, the Regional 
Administrator is to sign a Notice of Proposed Rulemaking on the Reading 
redesignation request and maintenance plan by September 30, 1996. In 
addition, the Regional Administrator is to sign the Final Rulemaking 
Notice by March 3, 1997.
    Under section 107(d)(3)(E) of the Clean Air Act (the Act), the 
following five criteria must be met for an ozone nonattainment area to 
be redesignated to attainment:
    1. The area must meet the ozone NAAQS.
    2. The area must meet applicable requirements of section 110 and 
Part D.
    3. The area must have a fully approved SIP under section 110(k) of 
the Act.
    4. The area must show that its experienced improvement in air 
quality is due to permanent and enforceable measures.
    5. The area must have a fully approved maintenance plan under 
section 175A of the Act, including contingency measures.

Policy Change for Redesignations--Section 184 Requirements

    All areas in the Ozone Transport Region (OTR), both attainment and 
nonattainment, are subject to additional control requirements under 
section 184 for the purpose of reducing interstate transport of 
emissions that may contribute to downwind ozone nonattainment. The 
section 184 requirements are reasonably available control technology 
(RACT) for sources of volatile organic compounds (VOCs) with the 
potential to emit 50 tons per year (TPY) or more, RACT for sources of 
oxides of Nitrogen (NOX) with the potential to emit 100 TPY or 
more, Part D new source review (NSR) for major sources of VOC and 
NOX, enhanced vehicle inspection and maintenance
(I/M), Stage II vapor recovery or a comparable measure, and any 
measures that are mandated by EPA under section 184(c) based on a 
petition by the Ozone Transport Commission (OTC). To date, only the OTC 
Low Emission Vehicle program (or acceptable equivalent) has been 
required under section 184(c) [60 FR 4712; December 19, 1994].
    Some of the section 184 requirements duplicate requirements under 
other sections of the Act for certain classifications of nonattainment 
areas. For example, as a moderate nonattainment area, Reading is also 
subject to VOC RACT under section 182(b)(2) for sources with the 
potential to emit 100 TPY or more, Part D NSR for major sources of 
NOX and NOX RACT for sources with the potential to emit 100 
TPY or more under section 182(f), and Part D NSR for major sources of 
VOC under sections 173 and 182(b)(5). Reading is also subject to basic 
I/M for moderate areas under section 182(b)(4). The EPA believes that, 
for purposes of redesignation, it is appropriate to consider the 
section 184 requirements separately from the requirements under other 
sections because the express purpose of the section 184 requirements is 
different. Section 184 requirements are region-wide requirements 
intended for the control of interstate transport of ozone pollution, 
whereas the similar moderate area requirements are linked with the 
particular nonattainment area designation and classification to address 
local air quality problems. These latter requirements for Reading are 
discussed below. (See ``Status of Moderate Area Requirements--Sections 
173 and 182.'')
    Although this redesignation request was submitted after the due 
date for several of the section 184 requirements, including NSR for 
sources of both VOCs and NOx, RACT for sources of VOCs with the 
potential to emit between 50 and 100 TPY, and enhanced I/M, EPA 
believes it is reasonable and appropriate to interpret the section 184 
requirements as not being applicable requirements for purposes of 
evaluating a redesignation request. The rationale is based on two 
factors. First, the requirement to submit SIP revisions for the section 
184 requirements continues to apply to areas in the OTR after 
redesignation to attainment. Therefore, the State remains obligated to 
adopt NSR, RACT, and I/M even after redesignation and would risk 
sanctions

[[Page 53176]]

for failure to do so. While redesignation of an area to attainment 
enables the area to avoid further compliance with the requirements of 
section 110 and part D that are linked with an area's nonattainment 
status, the section 184 requirements apply to both nonattainment and 
maintenance (attainment) areas. Second, the section 184 control 
measures are region-wide requirements and do not apply to Reading by 
virtue of the area's designation and classification. Rather, the 
section 184 measures are required in Reading because Reading is located 
in the OTR. The purpose of these measures is not to address air quality 
in the designated Reading nonattainment area, but to reduce regional 
emissions in the OTR. Where the Act has deemed the same controls needed 
as part of a strategy to reduce emissions in certain nonattainment 
areas, those control measures are specifically required for those areas 
under different sections of the Act. It is these latter requirements 
that are linked with a particular nonattainment area's designation and 
classification that EPA believes are the relevant measures to evaluate 
in reviewing a redesignation request.
    Therefore, with this notice, EPA is proposing to modify its policy 
regarding the interpretation of section 107(d)(3)(E) concerning the 
applicable requirements for purposes of reviewing an ozone 
redesignation request. Under this new policy, for the reasons just 
discussed, EPA believes that the ozone redesignation requests for areas 
in the OTR may be approved notwithstanding the lack of fully approved 
section 184 requirements. Based on this interpretation, EPA is 
proceeding to propose approval of the Reading redesignation request 
despite the lack of SIP approved NSR, enhanced I/M, and RACT for VOC 
sources with the potential to emit between 50 and 100 TPY. 
Redesignation to attainment will not remove the requirement for 
Pennsylvania to adopt and implement all of these section 184 measures 
in the Reading area. It should be noted that Pennsylvania has submitted 
its NSR and I/M programs for the Reading area. These submittals are the 
subject of separate rulemaking actions.
    This new policy is consistent with, and an extension of, EPA's 
existing redesignation policies regarding conformity and oxygenated 
fuels requirements. Transportation and general conformity rules, 
required under section 176, apply to both nonattainment and maintenance 
areas. Just as with the section 184 requirements, States remain 
obligated to adopt and implement conformity rules even after 
redesignation to attainment. Primarily for this reason, EPA has 
previously interpreted the conformity requirements as not being 
applicable requirements for purposes of evaluating redesignation 
requests (60 FR 62748; December 7, 1995).
    Under section 211(m), oxygenated fuels programs are required in 
moderate and serious carbon monoxide nonattainment areas with design 
values of 9.5 parts per million (ppm) or greater. The oxygenated fuels 
program must be applied throughout a consolidated metropolitan 
statistical area (CMSA) or metropolitan statistical area (MSA), even if 
the nonattainment area boundaries do not encompass the entire CMSA. 
Previously, a situation occurred where several not-classified carbon 
monoxide (CO) nonattainment areas were located in the CMSA of a 
moderate CO area whose design value triggered the oxygenated fuels 
requirement. Therefore, the not-classified areas were required to sell 
oxygenated fuels although it was not a requirement linked specifically 
with the not-classified areas' designation, classification and design 
value. In this case, for purposes of evaluating a redesignation 
request, EPA interpreted the oxygenated fuels program as not being an 
applicable requirement for the not-classified areas because the State 
would still be obligated to adopt and implement the oxygenated fuels 
program in the areas after redesignation (due to the continuing 
moderate area requirement) and because the areas were only required to 
implement an oxygenated fuels program by virtue of their location in 
the CMSA of a moderate CO area (60 FR 62741; December 7, 1995).

Status of OTR Requirements--Section 184

    RACT: Under section 184, and excluding the requirements of section 
182, RACT is required for VOC sources with the potential to emit 
between 50 and 100 TPY. On February 4, 1994, Pennsylvania submitted a 
``generic'' RACT rule for NOX sources and for VOC sources not 
covered by a control techniques guidelines (CTG) document, so-called 
non-CTG sources. This rule was effective in the Commonwealth on January 
15, 1994. On February 28, 1994, EPA determined that the submittal was 
complete. This generic RACT rule does not contain any specific 
requirements for VOC sources, and contains only a control technology 
requirement for a class of NOX sources and operation and 
maintenance requirements for several NOX source categories. All 
other VOC and NOX sources are required to submit case-by-case RACT 
determinations. Pennsylvania is in the process of submitting the case-
by-case RACT determinations to EPA for approval into the Pennsylvania 
SIP.
    NSR: On February 4, 1994, Pennsylvania submitted its final NSR 
regulations to EPA. On February 28, 1994, EPA determined that the 
submittal was complete. That submittal is the subject of a separate 
rulemaking action, currently being prepared by EP.
    I/M: Under the November 28, 1995 National Highway System 
Designation Act, Pennsylvania submitted an OTR low-enhanced program on 
March 22, 1996. On September 13, 1996, Regional Administrator W. 
Michael McCabe signed a Notice of Proposed Rulemaking, proposing 
conditional interim approval of Pennsylvania's enhanced I/M SIP.

EPA's Evaluation of Pennsylvania's Redesignation Request and 
Maintenance Plan for the Reading Area

    Criterion 1: The area must meet the ozone NAAQS.
    EPA's Evaluation: The area has met the ozone standard since 1991, 
considering data for the three-year period 1989-1991. The area 
continues to meet the ozone standard.
    Criterion 2: The area must meet applicable requirements of section 
110 and Part D.
    EPA's Evaluation: EPA's redesignation policy requires an area to 
meet all requirements in section 110 and Part D of the Clean Air Act 
that were due prior to the state's submittal of the redesignation 
request. Pennsylvania submitted the redesignation request for the 
Reading area on 11/12/93. Therefore, all section 110 and Part D 
requirements that were due before 11/12/93, other than those required 
under sections 176 and 184, are applicable requirements for the 
purposes of evaluating the redesignation request for the Reading area. 
As explained above, EPA is proposing, in this notice, to modify its 
previous policy regarding whether the requirements of section 184 of 
the Act are applicable requirements for the purposes of evaluating a 
redesignation request.

Status of Moderate Area Requirements--Sections 173 and 182

    RACT: Under section 182 RACT is required for sources of VOC and 
NOX with the potential to emit 100 TPY or more. As stated above, 
Pennsylvania submitted a ``generic'' RACT rule to EPA as a SIP revision 
on February 4, 1994. This rule applies to NOX sources and non-CTG 
VOC sources. This generic RACT rule does not contain any specific

[[Page 53177]]

emission limitation. All VOC and NOX sources are required to 
submit case-by-case RACT proposals to Pennsylvania, which, in turn, 
submits its RACT determinations to EPA as SIP revisions. Pennsylvania 
is in the process of submitting the case-by-case RACT determinations to 
EPA for approval into the Pennsylvania SIP.
    In order for the Reading area to meet this criterion, Pennsylvania 
must submit complete and approvable RACT determinations for all 
applicable sources (all VOC and NOX sources with the potential to 
emit 100 TPY or more in the Reading area) to EPA as SIP revisions, and 
EPA must approve these RACT determinations into the SIP before, or at 
the same time as, EPA completes final rulemaking on the redesignation 
request. Pennsylvania is in the process of submitting the required 
RACTs to EPA as SIP revisions.
    NSR: On February 4, 1994, Pennsylvania submitted its final NSR 
regulations to EPA. EPA determined that the submittal was complete on 
February 28, 1994, but has not completed rulemaking on the NSR SIP. 
However, according to EPA's October 14, 1994 policy memorandum from 
Mary D. Nichols, Assistant Administrator for Air and Radiation, 
entitled Part D New Source Review (Part D NSR) Requirements for Areas 
Requesting Redesignation to Attainment, areas may be redesignated to 
attainment without a fully approved part D NSR program, as long as the 
area does not rely on NSR for maintenance. The Reading redesignation 
request does not rely on NSR for maintenance.
    I/M: Under section 182, moderate areas are required to adopt and 
implement a basic I/M program. However, according to EPA's September 
17, 1993 policy memorandum from Michael H. Shapiro, Assistant 
Administrator for Air and Radiation, 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 Standard (NAAQS) on or after November 15, 1992, areas may be 
redesignated to attainment without a fully adopted I/M program, as long 
as (1) the area does not rely on I/M for maintenance, (2) the area has 
legislative authority for a basic I/M program, (3) basic I/M is 
included in the maintenance plan as a contingency measure, and (4) the 
maintenance plan includes an enforceable schedule and commitment for 
adopting a basic I/M program upon a specific and appropriate trigger.
    As stated above, Pennsylvania submitted an OTR low-enhanced program 
on March 22, 1996, under the National Highway Act. On September 13, 
1996, Regional Administrator W. Michael McCabe signed a Notice of 
Proposed Rulemaking, proposing conditional interim approval of 
Pennsylvania's enhanced I/M SIP. This submittal contains legislative 
authority for an OTR low-enhanced I/M program, as well as a schedule 
for implementation of the program.
    Pursuant to the so called I/M redesignation rule, EPA's January 5, 
1995 Federal Register action, Inspection/Maintenance Program 
Requirements--Provisions for Redesignation (60 FR 1735), Pennsylvania's 
list of contingency measures for the Reading area must include basic I/
M, in the event that the enhanced I/M requirement under section 184 is 
not implemented. The contingency plan must also contain a schedule for 
implementation of a basic I/M program that complies with 40 CFR 
51.372(c)(4). This schedule must be triggered when Pennsylvania chooses 
to implement basic I/M as a contingency measure.
    Base Year Emission Inventories: On November 12, 1992, Pennsylvania 
submitted 1990 VOC, NOX, and carbon monoxide (CO) base year 
inventories for all areas in the Commonwealth. With the redesignation 
request, Pennsylvania submitted summary updates to its 1990 base year 
inventories for the Reading area, which supersede Pennsylvania's 1992 
submittal. The 1990 base year emissions summaries included in the 
redesignation request are different from those in the 1990 base year 
inventories submitted by Pennsylvania on November 12, 1992.
    Pennsylvania must submit adequate technical justification to 
support the changes in the inventories, including sample calculations 
for point, area, and mobile sources, and mobile source emissions 
modeling sample runs.
    Criterion 3: The area must have a fully approved SIP under section 
110(k) of the Act.
    EPA's Evaluation: In order to meet this criterion, all applicable 
SIP elements must be approved into Pennsylvania's SIP for the Reading 
area. All applicable requirements, other than RACT and the 1990 VOC, 
NOX, and CO base year inventories, have been approved into the 
Pennsylvania SIP.
    RACT: As stated above, in EPA's evaluation of criterion 2, 
Pennsylvania must submit complete and approvable RACT determinations 
for all applicable sources (all NOX and non-CTG VOC sources with 
the potential to emit 100 TPY or more in the Reading area) to EPA as 
SIP revisions, and EPA must approve these RACT determinations into the 
SIP before, or at the same time as, EPA completes final rulemaking on 
the redesignation request. As stated above, Pennsylvania is in the 
process of submitting RACT SIP revisions for applicable NOX and 
VOC sources, and must complete these submissions for final approval of 
this redesignation request.
    1990 Base Year Emission Inventories: As stated above, in EPA's 
evaluation of criterion 2, Pennsylvania must provide adequate technical 
justification to support the 1990 VOC, NOX, and CO base year 
inventories for Reading, submitted on November 12, 1992, and updated on 
November 12, 1993.
    Other Moderate Area Requirements: SIP revisions for VOC RACT Fix-
ups, VOC RACT Catch-ups (excluding non-CTG VOC RACT), and emission 
statements have been approved into the Pennsylvania SIP. As stated 
above, in EPA's evaluation of criterion 2, basic I/M and NSR are no 
longer applicable for redesignation purposes. Furthermore, EPA has 
previously interpreted the transportation and general conformity 
requirements as not being applicable for purposes of evaluating 
redesignation requests (60 FR 62748; December 7, 1995). Finally, 
because Pennsylvania submitted the Reading redesignation request prior 
to the due date for the 15% plan, attainment demonstration, and 
contingency measure requirements, these requirements are not applicable 
for the purpose of evaluating this redesignation request. Moreover, 
pursuant to EPA's May 10, 1995 waiver policy, EPA's July 19, 1995 
action (60 FR 37015) waived these requirements for the Reading area.
    Criterion 4: The area must show that its experienced improvement in 
air quality is due to permanent and enforceable measures.
    EPA's Evaluation: The redesignation request has shown that, through 
fully adopted and implemented, permanent and enforceable state and 
federal measures, the area's air quality has improved.
    Criterion 5: The area must have a fully approved maintenance plan 
under section 175A of the Act, including contingency measures.
    EPA's Evaluation: The submitted maintenance plan has several 
deficiencies.
    (1) The maintenance plan must show continued maintenance of the 
standard for at least ten years after the area is redesignated. To that 
end, EPA requires states to include emission inventories in their 
maintenance plans for a year that

[[Page 53178]]

is 10 years after the state anticipates EPA will approve their 
redesignation request. Furthermore, EPA requires that states project 
emissions for an interim year, between the year the area is 
redesignated and the end year (10 years after redesignation). 
Pennsylvania must project emissions out to at least 2007.
    The maintenance plan that Pennsylvania submitted on November 12, 
1993, and amended on January 13, 1994 and, again, on May 12, 1995 
projects maintenance up to the year 2004, and includes interim year 
emission projection for 1996. However, on September 27, 1996, 
Pennsylvania supplemented the Reading maintenance plan with preliminary 
inventories for 2007. Pennsylvania must submit adequate technical 
support to justify these new inventories. Additionally, Pennsylvania 
can no longer use 1996 as the interim year, because EPA will not 
complete final rulemaking on this redesignation request and maintenance 
plan until 1997. However, Pennsylvania can use the 2004 inventories, 
which have already been submitted, as the interim year inventories.
    (2) More technical support is needed in order for EPA to evaluate 
the projected emissions inventories, for 2004 and 2007, submitted with 
the maintenance plan. The maintenance plan must show that only credible 
measures (fully adopted and SIP approved state measures, and certain 
federal measures) are used to demonstrate maintenance. Mobile source 
emissions modeling must be provided in order to determine if those 
inventories were projected correctly, taking emission reduction credit 
only for measures that are fully adopted and approved into the SIP. In 
addition, Pennsylvania must provide growth factors (not surrogates), 
sample calculations for point, area, and mobile sources.
    (3) The contingency measure provided in the maintenance plan is 
inadequate. The maintenance plan must provide for contingency measures 
to promptly correct any violation of the ozone NAAQS that occurs after 
the area is redesignated. The plan must contain a list of measures to 
be adopted and a schedule and procedures for adoption and 
implementation. The plan must also identify specific triggers used to 
determine when the contingency measures need to be implemented. 
Pennsylvania is in the process of revising the maintenance plan for the 
Reading area to meet this criterion.

EPA's Evaluation of Pennsylvania's 1990 Base Year Inventory for the 
Reading Area

    On November 12, 1992, Pennsylvania submitted the 1990 base year 
inventories for VOC, NOX and CO for all areas in the Commonwealth, 
including the Reading area. Pennsylvania amended these inventories for 
the Reading area when it submitted its redesignation request and 
maintenance plan for the area, on November 12, 1993. However, only 
summaries of the updated inventory were submitted with the 
redesignation request.
    The 1990 base year emissions summaries included in the 
redesignation request are different from those in the 1990 base year 
inventory submitted by Pennsylvania on November 12, 1992. Pennsylvania 
must submit adequate technical justification to support the changes in 
the inventories, including sample calculations for point, area, and 
mobile sources, and mobile source emissions modeling sample runs.
    A more detailed evaluation of Pennsylvania's redesignation request, 
maintenance plan, and 1990 base year emission inventories for the 
Reading area can be found in the Technical Support Document (TSD) 
prepared by EPA for this rulemaking action. The TSD and other materials 
related to this action are available for public inspection at the EPA 
Regional office listed in the ADDRESSES section of this notice.
    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 notice.

Proposed Action

    EPA is proposing to approve Pennsylvania's request for 
redesignation of the Reading area, and the accompanying maintenance 
plan, which was originally submitted on November 12, 1993, and amended 
on January 13, 1994 and May 12, 1995, contingent upon Pennsylvania's 
correction of all deficiencies contained in the request and maintenance 
plan. EPA is also proposing to approve the 1990 base year VOC, 
NOX, and CO inventories for the Reading ozone nonattainment area, 
which were originally submitted on November 12, 1992, and revised on 
November 12, 1993, contingent upon Pennsylvania's correction of all 
deficiencies contained in those inventories. At the same time, EPA is 
proposing to disapprove the redesignation request, maintenance plan, 
and 1990 base year emission inventories for the Reading area if 
Pennsylvania does not correct the deficiencies. In addition, for 
purposes of satisfying the I/M redesignation rule of January 1995, EPA 
is proposing approval of Pennsylvania's legislative authority to adopt 
and implement an I/M program. Finally, EPA is proposing to change its 
policy on redesignation requirements for ozone nonattainment areas in 
the Ozone Transport Region (OTR). The policy change makes redesignation 
requirements for areas in the OTR consistent with requirements for 
areas outside the OTR by interpreting requirements under section 184 of 
the Clean Air Act as not being applicable for the purpose of 
redesignation.
    In order to correct the deficiencies that exist in the 
redesignation request, maintenance plan, and 1990 base year emission 
inventories, Pennsylvania must submit the following to EPA:
    (1) Adequate technical support to justify the projected emission 
inventories (2007 and 2004), including growth factors (not surrogates), 
sample calculations for point, area, and mobile sources, and mobile 
source emissions modeling sample runs;
    (2) Complete and approvable RACT SIP revisions for all applicable 
sources (all VOC and NOX sources with the potential to emit 100 
TPY or more in the Reading area);
    (3) A declaration that all required RACTs have been submitted;
    (4) SIP revisions to the Reading area maintenance plan so that it 
provides adequate contingency measures. The plan must contain a list of 
measures to be adopted and a schedule and procedures for adoption and 
implementation. The plan must also identify specific triggers used to 
determine when the contingency measures need to be implemented and a 
schedule for implementation of the contingencies in the event that they 
are implemented. The list of contingency measures must include basic I/
M, in the event that enhanced I/M requirement under section 184 is not 
implemented. The plan must contain a schedule for implementation of a 
basic I/M program that complies with 40 CFR 51.372(c)(4). This schedule 
will be triggered when Pennsylvania chooses to implement basic I/M as a 
contingency measure; and
    (5) Technical support to justify the 1990 base year emission 
inventories submitted in the redesignation request. This support must 
include sample

[[Page 53179]]

calculations for point, area, and mobile sources, a list of all point 
sources, and mobile source emissions modeling.
    As stated above, the Regional Administrator is to sign a final 
rulemaking action on the Reading redesignation request and maintenance 
plan by March 3, 1997, according to an agreement between EPA and the 
Clean Air Council. The revisions listed above must be submitted to EPA 
in enough time for EPA to evaluate their adequacy and, where necessary, 
complete separate rulemaking actions on the submittals before March 
1997. Therefore, EPA has determined that Pennsylvania needs to submit 
the required revisions by February 3, 1997, in time for EPA to take 
final action by March 3, 1997.
    Pennsylvania is in the process of addressing all of the 
deficiencies listed above. EPA believes that Pennsylvania will be able 
to meet the February 3, 1997 deadline stated above. In addition, EPA 
believes that it will be able to complete rulemaking on Pennsylvania's 
submittals, as long as Pennsylvania works closely with EPA to develop 
the required revisions.
    If EPA were to take final action to disapprove the maintenance 
plan, the Reading area will no longer be able to demonstrate conformity 
to the submitted maintenance plan pursuant to the transportation 
conformity requirements in 40 CFR Part 51, section 51.448(i). Since the 
submitted maintenance plan budget will no longer apply for 
transportation conformity purposes, the build/no-build and less-than-90 
tests will apply.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any state implementation plan. Each request for revision to 
the state implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.

Administrative Requirements

A. Executive Order 12866

    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
Air and Radiation. The Office of Management and Budget (OMB) has 
exempted this regulatory action from E.O. 12866 review.

B. Regulatory Flexibility 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 
Clean Air Act do not create any new requirements but simply approve 
requirements that the State is already imposing. Therefore, because 
this proposed Federal SIP approval does not impose any new 
requirements, the Regional Administrator certifies that it does not 
have a significant impact on any small entities affected. Moreover, due 
to the nature of the Federal-State relationship under the CAA, 
preparation of a flexibility analysis would constitute Federal inquiry 
into the economic reasonableness of state action. The Clean Air Act 
forbids EPA to base its actions concerning SIPs on such grounds. Union 
Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 
7410(a)(2).
    EPA's proposed disapproval of the State request under Section 110 
and subchapter I, part D of the CAA does not affect any existing 
requirements applicable to small entities. Any pre-existing federal 
requirements remain in place after this disapproval. Federal 
disapproval of the state submittal does not affect its state-
enforceability. Moreover, EPA's proposed disapproval of the submittal 
does not impose any new Federal requirements. Therefore, EPA certifies 
that this proposed disapproval action does not have a significant 
impact on a substantial number of small entities because it does not 
remove existing requirements and impose any new Federal requirements.
    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. The 
Regional Administrator certifies that, in the event that EPA approves 
Pennsylvania's redesignation request for the Reading area, the approval 
will not affect a substantial number of small entities.
    In the event that EPA denies Pennsylvania's redesignation request 
under section 107(d)(3)(E) of the CAA, this denial would not affect any 
existing requirements applicable to small entities nor does it impose 
new requirements. The area would retain its current designation status 
and would continue to be subject to the same statutory requirements. To 
the extent that the area must adopt regulations, based on its 
nonattainment status, EPA will review the effect of those actions on 
small entities at the time the State submits those regulations. 
Therefore, the Regional Administrator certifies that the disapproval of 
the redesignation request will not affect a substantial number of small 
entities.

C. Unfunded Mandates

    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 
private sector, of $100 million or more. Under Section 205, EPA must 
select 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 this 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. This Federal action proposes to 
approve pre-existing requirements under State or local law, and imposes 
no new Federal requirements. Accordingly, no additional costs to State, 
local, or tribal governments, or to the private sector, result from 
this action.
    EPA has also determined that the proposed alternative disapproval 
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. Accordingly, no 
additional costs to State, local, or tribal governments, or to the 
private sector, result from this action.
    The Regional Administrator's decision to approve or disapprove 
Pennsylvania's redesignation request for the Reading ozone 
nonattainment area, the associated maintenance plan, and the 1990 VOC, 
NOx, and CO base year

[[Page 53180]]

inventories for the area will be based on whether they meet the 
requirements of section 110(a)(2)(A)-(K) and part D of the Clean Air 
Act, as amended, and EPA regulations in 40 CFR Part 51.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon Monoxide, 
Hydrocarbons, Intergovernmental relations, Nitrogen dioxide, Ozone.

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

    Dated: September 30, 1996.
W. Michael McCabe,
Regional Administrator, Region III.
[FR Doc. 96-25894 Filed 10-9-96; 8:45 am]
BILLING CODE 6560-50-P