[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Proposed Rules]
[Pages 55253-55259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27472]


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


ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[PA 088-4033; FRL-5640-3]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Disapproval of the Reasonable-Further-Progress Plan for 
the 1996-1999 Period for the Philadelphia Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: EPA is proposing to disapprove the State Implementation Plan 
(SIP) revision submitted by the Commonwealth of Pennsylvania (for the 
Philadelphia ozone nonattainment area) to meet the rate-of-progress 
(ROP) requirements under the Clean Air Act (the Act). Under these 
requirements, states must demonstrate a 3% reduction of volatile 
organic compounds (VOCs) per year for a three year period between 1996 
and 1999. EPA is proposing disapproval because the ROP plan submitted 
by Pennsylvania for the Philadelphia area projects emissions reductions 
only for control strategies to the 2005 time frame, rather than for the 
1999 and 2002 interim milestone years, per the ROP requirements of the 
Act. Several of these measures have not been fully adopted or have been 
stayed or replaced by the Commonwealth. Additionally, the Commonwealth 
has not calculated emissions target level to be achieved in 1999 (or 
for 2002) to ensure attainment of reasonable-further-progress toward 
attainment by the statutory deadline. Finally, the 1990 emissions 
inventory estimates provided in the Commonwealth's plan for ROP for the 
period from 1996-1999 vary substantially from the inventory submitted 
as the Commonwealth's official 1990 base year inventory. That VOC base 
year inventory was formally revised in September of 1996. This 
inventory superseded all previous 1990 base year inventories submitted 
by the Commonwealth for Philadelphia--including the one contained in 
the ROP plan for the period from 1996 to 1999. This rulemaking action 
is being taken under section 110 of the Clean Air Act.

DATES: Comments must be received on or before November 25, 1996.

ADDRESSES: Comments may be mailed to David L. Arnold, Chief, Ozone and 
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. 
Persons interested in examining these documents should schedule an 
appointment with the contact person (listed below) at least 24 hours 
before the visiting day. Copies of the documents relevant to this 
action are also available at the Pennsylvania Department of 
Environmental Protection, Bureau of Air Quality, P.O. Box 8468, 400 
Market Street, Harrisburg, Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Brian K. Rehn, Ozone and Mobile 
Sources Section (3AT21), USEPA--Region III, 841 Chestnut Building, 
Philadelphia, Pennsylvania 19107, or by telephone at: (215) 566-2176. 
Questions may also be sent via e-mail, to: Rehn.B[email protected] 
(Please note that only written comments can be accepted for inclusion 
in the docket.)

SUPPLEMENTARY INFORMATION:

Introduction--Clean Air Act Requirements

Reasonable-Further-Progress Requirements

    Section 182(c)(2) of the Clean Air Act (the Act), as amended by 
Congress in 1990, requires each state having one or more ozone 
nonattainment areas classified as serious or worse to develop a plan 
(for each subject area) that provides for actual VOC reductions of at 
least 3 percent per year averaged over each consecutive 3-year period, 
beginning six years after enactment of the Act, until such time as 
these areas have attained the National Ambient Air Quality Standard 
(NAAQS) for ozone. These plans are referred to hereafter as post-1996 
rate-of-progress plans (or post-96 ROP plans). The first of these ROP 
plans, for the 3-year period from 1996-1999, was due to be submitted to 
EPA as a SIP revision by November 15, 1994.
    The Act also mandates a 15 percent VOC emission reduction, net of 
growth, between 1990 and 1996. That SIP

[[Page 55254]]

revision was due to EPA by November 15, 1993. The plan for these 
reductions occurring between 1990-1996 is hereafter referred to as the 
``15% percent rate-of-progress plan.''
    The Clean Air Act limits the creditability of certain control 
measures toward the reasonable-further-progress requirement. 
Specifically, states cannot take credit for reductions achieved by 
Federal Motor Vehicle Control Program (FMVCP) measures (e.g., new car 
emissions standards) promulgated prior to 1990, or for reductions 
stemming from regulations promulgated prior to 1990 to lower the 
volatility (i.e., Reid Vapor Pressure) of gasoline. Furthermore, the 
Act does not allow credit toward reasonable-further-progress 
requirements for post-1990 corrections to existing motor vehicle 
inspection and maintenance (I/M) programs or corrections to reasonably 
available control technology (RACT) rules, since these programs were 
required to be in place prior to 1990.
    Additionally, section 172(c)(9) of the Clean Air Act requires 
``contingency measures'' to be included in the plan revision. These 
measures are required to be implemented immediately if reasonable-
further-progress has not been achieved, or if the NAAQS standard is met 
by the deadline set forth in the Clean Air Act.

Attainment Demonstration Requirement

    The attainment dates prescribed by the Act for areas classified as 
``ozone nonattainment areas'' are as follows: November 15, 1999, for 
serious ozone nonattainment areas; November 15, 2005, for severe ozone 
nonattainment areas; November 15, 2007, for severe areas with 1986-1988 
design values greater than 0.190 ppm; or November 15, 2010, for extreme 
ozone nonattainment areas.
    The Act also requires that states required to submit post-1996 ROP 
plan SIPs for certain areas, due by November 15, 1994 for serious or 
worse ozone nonattainment areas, must also simultaneously submit for 
those areas an ``attainment demonstration'' to provide for achievement 
of the ozone NAAQS by the statutory deadline. This demonstration is to 
be based on photochemical grid modeling, such as the Urban Airshed 
Model (UAM), or an equivalent analytical method. However, in a March 2, 
1995, memorandum from Mary Nichols, Assistant Administrator for EPA's 
Office of Air and Radiation, EPA set forth guidance for an alternative 
approach to satisfy the attainment demonstration requirements under 
section 182(c)(2)(A) of the Act. Under this alternative, states were 
provided the option to utilize a two-phased approach in order to 
satisfy the attainment demonstration requirements of the Act.

Background

    In Pennsylvania, three nonattainment areas were required to submit 
15% plans in 1993 under the Act. These include the Philadelphia severe 
nonattainment area, the Pittsburgh moderate nonattainment area, and the 
Reading moderate nonattainment area. Since Philadelphia is the only 
Pennsylvania nonattainment having a classification of serious or worse, 
it is the only area with an attainment deadline beyond 1996. Therefore, 
the Philadelphia area must continue to demonstrate reasonable-further-
progress toward attainment until its 2005 attainment deadline--unless 
the Commonwealth can demonstrate attainment of the standard with fewer 
reductions sooner than the statutory deadline.
    The Philadelphia metropolitan area includes counties in New Jersey, 
Delaware, and Maryland, as well as Pennsylvania, all of which must 
demonstrate reasonable-further-progress. However, Pennsylvania is only 
responsible for achieving RFP within its portion of that metropolitan 
area. The Commonwealth did not enter an agreement with the other states 
which comprise the metropolitan Philadelphia area to do a multi-state 
ROP plan, and submitted only a plan to reduce Pennsylvania's 
contribution by 15 percent.
    On November 15, 1994, the Pennsylvania Department of Environmental 
Resources submitted a post-1996 ROP plan for the Pennsylvania portion 
of the Philadelphia ozone nonattainment area, which included an 
attainment demonstration for that area. The post-1996 ROP plan 
submitted by Pennsylvania is actually an attempt to demonstrate 
reasonable-further-progress for Philadelphia from 1990 to 2005--the 
area's prescribed attainment date under the Act. This plan depicts a 
42% reduction (3% per year) from the 1990 baseline, net of emissions 
growth during that period. In a letter dated May 31, 1995, from James 
Seif, Secretary of Pennsylvania's Department of Environmental 
Resources, Pennsylvania expressed its intent to follow a phased 
approach to meeting the attainment demonstration requirements of the 
Clean Air Act, as set forth in a March 2, 1995, EPA guidance 
memorandum.
    EPA is today taking action only upon Pennsylvania's post-1996 ROP 
plan submittal. However, EPA is not taking action upon the attainment 
demonstration portion of that plan. Based on Pennsylvania's commitment 
to pursue the phased attainment demonstration approach, EPA will act 
upon the attainment demonstration at a later date.
    In a separate submittal from its post-1996 ROP plan for 
Philadelphia, Pennsylvania submitted a plan to achieve a 15% reduction 
in VOCs for the period from 1990 to 1996 for the Philadelphia area. 
Pennsylvania amended this plan in January of 1995. EPA proposed 
disapproval of that January 1995 plan in the July 10, 1996, edition of 
the Federal Register (61 FR 36320). Pennsylvania submitted an amended 
15% plan for Philadelphia on September 18, 1996, which included both a 
revised 1990 base year emission inventory and a revised contingency 
measure plan for the Philadelphia area, as well. EPA will act upon this 
September 1996, 15% plan SIP submittal separately from today's 
rulemaking action.
    However, Pennsylvania has not revised its post-1996 ROP plan since 
it was originally submitted, in November of 1994. EPA has reviewed this 
post-1996 ROP plan submittal and has identified several serious 
deficiencies that prohibit approval of this SIP under section 110 of 
the Clean Air Act. A detailed discussion of these deficiencies is 
included below, in the `Analysis' portion of this rulemaking action. 
Due to these deficiencies, the post-1996 ROP plan will not achieve the 
total reductions required by the rate-of-progress requirements of the 
Act. EPA's review of this plan did not examine the individual control 
measures applied toward rate-of-progress in the post-1996 ROP plan. 
Many of these measures have been formally submitted as separate control 
measure SIP revisions, or are national rules adopted by the federal 
government.
    Today's action focuses only the approvability of measures toward 
the reasonable-further-progress requirement of the Act, and does not 
address whether the control measures or inventories included in the 
post-1996 plan comply with other specific underlying requirements of 
the Act pertaining to those elements of the plan. A summary of the 
EPA's findings follows.

Analysis of the SIP Revision

Base Year Emission Inventory

    The baseline from which states determine the required reductions 
for rate-of-progress planning is the 1990 base year emission inventory. 
The inventory is broken down into several

[[Page 55255]]

emissions source sectors: stationary, area, on-road mobile, and off-
road mobile sources. Pennsylvania submitted a formal SIP revision 
containing their official 1990 base year emission inventory on November 
12, 1992. Pennsylvania formally revised this base year inventory on 
September 12, 1996, to reflect recent, more accurate estimates of 
actual 1990 emissions. EPA has not yet taken rulemaking action on the 
base year inventory submittal. The post-1996 ROP plan submitted in 
November of 1994 projects both emissions reductions and emissions 
growth which are predicated upon an inventory which has since been 
revised. The inventory that forms the basis of Pennsylvania's present 
post-1996 ROP plan is no longer valid, and EPA cannot approve emissions 
reduction ``target levels'' derived from this outdated inventory. EPA 
intends to conduct separate rulemaking action on Pennsylvania's 
official 1990 base year inventory SIP submittal at a later date.

Growth in Emissions Between 1996 and 1999

    EPA has interpreted the Clean Air Act to require that states must 
provide for sufficient control measures in their reasonable-further-
progress plans to offset any emissions growth projected to occur after 
1996. Therefore, to meet the ROP requirement, a state must provide for 
sufficient emissions reductions to offset projected growth in 
emissions, in addition to a 3 percent annual average reduction of VOC 
emissions. Thus, an estimate of emissions growth from 1996 to 1999 is 
necessary for demonstrating reasonable-further-progress by 1999. Growth 
is calculated by multiplying the 1990 base year inventory by acceptable 
forecasting indicators. Growth must be determined separately for each 
source, or by source category, since sources typically grow at 
different rates. EPA's inventory preparation guidance recommends the 
following indicators, in order of preference: product output, value 
added, earnings, and employment. Population can also serve as a 
surrogate indicator.
    Pennsylvania's post-1996 plan projects total growth of 61 tons per 
day (tpd) for the period between 1990 and 2005. This includes all 
sectors, i.e., point, area, on-road motor vehicle, and non-road vehicle 
source categories. Growth for point and area sources is based upon 
estimates from the Bureau of Economic Analysis (BEA). Pennsylvania 
linearly extrapolated from several BEA reports representing past and 
future years to obtain its 2005 estimates for stationary, area, and 
non-road mobile source sectors' growth. Highway mobile source growth 
was determined through projections using the MOBILE computer model and 
local projections for vehicle miles of travel increases in 
Philadelphia.
    No interim growth estimates have been included in Pennsylvania's 
plan, therefore, growth for the period from 1996 to 1999 cannot be 
determined. Pennsylvania must estimate interim growth levels to 
determine the level of emissions reduction control strategies needed to 
demonstrate reasonable-further-progress by 1999.

Calculation of Target Level Emissions

    A ``target level'' of emissions represents the maximum level of 
emissions allowed in each post-1996 milestone year which will still 
provide the 3 percent per year rate-of-progress requirement mandated by 
the Act. EPA's guidance document entitled Guidance on the Post-1996 
Rate-of-Progress Plan and the Attainment Demonstration, dated January 
1995 (EPA 452-93-015), outlines the approach states must take to 
calculate the 1999 target level needed to satisfy the Act's post-1996 
plan requirement.
    The Commonwealth has not calculated a 1999 target level in its 
plan. Instead, the Commonwealth calculated a target level for ROP by 
2005. Without an emissions target level for the 1999 milestone year, it 
is impossible to determine if the Commonwealth has achieved reasonable-
further-progress for the 1996-1999 period. Therefore, EPA must 
disapprove the Commonwealth's ROP plan for failure to demonstrate a 3 
percent per year (on average) reduction from 1996 to 1999, as required 
under section 182(c)(2)(B) of the Act.

Control Strategies in the Philadelphia Post-1996 ROP Plan

    Federal and state adopted VOC control measures may be credited 
toward the ROP plan requirements of the Act (with the exception of 
measures promulgated prior to 1990 which were specifically discussed 
earlier). Per section 182(c)(2)(C) of the Act and EPA guidance, states 
also may substitute NOX control strategies (with certain 
limitations) in the ROP plan, provided that these NOX reductions 
will provide at least as much progress toward meeting the NAAQS as VOC 
controls would. In order to claim NOX reductions, states must 
include a summary NOX emissions inventory and NOX growth 
projections as part of their ROP SIP. The Commonwealth has not provided 
this NOX inventory and growth information in its post-1996 SIP 
submittal.
    The Commonwealth has substituted NOX reductions in its post-
1996 plan, but has not calculated 1999 milestone target levels for the 
pollutant NOX. Therefore, EPA must disapprove the Commonwealth's 
post-1996 ROP plan for failure to satisfy the requirements of section 
182(c)(2)(C) of the Act and to applicable EPA guidance.
    The specific measures adopted (either through state or federal 
rules) for the Philadelphia area are addressed, in detail, in the 
Commonwealth's post-1996 plan. A list of control measures for which 
Pennsylvania has claimed credit in its Philadelphia post-1996 ROP plan 
for Philadelphia follows, along with a brief description of each.

Description of Control Strategies in the Post-1996 Plan

Stage II Vapor Recovery

    This state-adopted regulation requires the installation and 
operation of vapor recovery equipment on gasoline dispensing pumps to 
reduce vehicle refueling emissions. The state regulation for this 
program is codified in 25 PA Code Sec. 129.75. EPA approved the 
Commonwealth's Stage II program on June 13, 1994 (59 FR 112).

Automobile Refinishing

    EPA is in the process of adopting a national rule to control VOC 
emissions from solvent evaporation through reformulation of coatings 
used in auto body refinishing processes. These coatings are typically 
used by small businesses, or by vehicle owners. VOC emissions emanate 
from the evaporation of solvents used in the coating process. 
Pennsylvania's post-1996 plan claims reductions from EPA's national 
rule. Use of emissions reductions from EPA's expected national rule is 
creditable toward reasonable-further-progress.

Reformulated Gasoline

    Section 211(k) of the Clean Air Act requires that, beginning 
January 1, 1995, only reformulated gasoline be sold or dispensed in 
ozone nonattainment areas classified as severe, or worse. This gasoline 
is reformulated to reduce combustion by-products and to produce fewer 
evaporative emissions. As a severe area, Philadelphia benefits from the 
emission reductions from this program. This measure is creditable 
toward ROP planning.

Transportation, Storage, and Disposal Facilities (TSDFs) Rule

    TSDFs are private facilities that manage dilute wastewater, 
organic/inorganic sludges, and organic/inorganic solids. Waste disposal 
can be done by various means including:

[[Page 55256]]

incineration, treatment, or underground injection or landfilling. EPA 
promulgated a national rule on June 21, 1990 for the control of TSDF 
emissions. This measure is creditable toward ROP planning.

Industrial Rule Effectiveness (RE) Improvements

    Rule effectiveness is a means of enhancing rule compliance or 
implementation by industrial sources, and is expressed as a percentage 
of total available reductions from a control measure. The default 
assumption level for rule effectiveness is 80%. Pennsylvania claims RE 
improvements from the 80% default level to a level of 90% in their ROP 
plan SIP revision for Philadelphia, based upon improvements to RACT 
regulations for specific facilities in the 5-county Philadelphia area. 
The applicable RACT rules pertain to surface coating operations (PA 
Code Sec. 129.52) and offset printing operations (PA Code Sec. 129.67).
    Pennsylvania followed EPA policy to quantify emissions reductions 
from specific RE improvements for two categories, in the absence of 
quantifiable compliance or emissions data. The RE measures Pennsylvania 
claims toward the ROP plan include facility improvements, as well as 
improved state oversight. Facility measures include: Improved operator 
training, better operation and maintenance of process equipment, 
improved source monitoring/reporting. State oversight improvements 
include: more inspector training, stringent compliance inspections of 
all RE improvement facilities. RE improvements are creditable toward 
the ROP plan requirement of the Clean Air Act.

Permanent VOC/NOX Source/Process Shutdowns

    Several industrial VOC sources that were operational in 1990 (i.e., 
included in the base year inventory) have since shut down either 
processes or entire facilities. Pennsylvania has adopted a banking rule 
(25 Pa Code Sec. 127.208), which requires that sources wishing to bank 
emission reduction credits, or ERCs, must do so within one year of 
initiation of the shutdown. If not, the Commonwealth can claim credit 
for the reductions as permanent and enforceable emissions reductions.
    Pennsylvania's ROP plan claims partial credit for shutdowns for 
which the source ``banked'' emissions reductions, and the Commonwealth 
claimed the entire shutdown credit for sources that did not bank their 
emissions within the one year deadline set forth in Pennsylvania's 
banking rule. The ROP plan reflects shutdowns from twenty VOC sources 
in the Philadelphia nonattainment area. These credits are ineligible 
for use as future ERCs, or to offset emissions from new sources under 
the Commonwealth's new source review regulation. Use of permanent, 
enforceable shutdowns for ROP planning is acceptable, provided the 
reductions are not ``double-counted'' in the plan (e.g., industrial 
growth estimates do not account for the shutdowns).

Architectural and Industrial Maintenance Coatings (AIM) Rule

    Emission reductions have been projected for AIM coatings due to the 
expected promulgation by the EPA of a national reformulation rule. 
These coatings include a host of field-applied surface coatings used 
for household, commercial, and industrial applications--including for 
example, paints, highway coatings, and architectural finishes.

Tier I Federal Motor Vehicle Control Program

    EPA promulgated a national rule establishing ``new car'' standards 
for 1994 and newer model year light-duty vehicles and light-duty trucks 
on June 5, 1991 (56 FR 25724). Since the standards were adopted after 
the Clean Air Act was amended in 1990, the resulting emission 
reductions are creditable toward ROP plans. Due to the three-year 
phase-in period for this program, and the associated benefits stemming 
from fleet turnover, the reductions were not significant prior to 1996. 
FMVCP programs promulgated as a result of the Clean Air Act as amended 
in 1990 are creditable for ROP planning purposes.

Off-Road Use of Reformulated Gasoline

    The use of reformulated gasoline will also result in reduced 
emissions (for both exhaust and evaporative emissions) from off-road 
engines such as outboard motors for boats and lawn mower engines. This 
measure is creditable toward the ROP requirements of the Act.

IM240 Enhanced Vehicle Inspection and Maintenance (I/M) Program

    The I/M program described in the Commonwealth's ROP plan is a 
contractor-operated, centralized, IM240 inspection program. This 
program was conditionally approved by EPA in August of 1994. However, 
since that time, Pennsylvania suspended operation of this program, 
terminated the test inspector contract, and began the rule adoption 
process for a decentralized program as a replacement for the 
centralized program. Pennsylvania submitted a new I/M program SIP to 
EPA, under authority provided by the National Highway Systems 
Designation Act of 1995, on March 22, 1996, which EPA proposed to 
conditionally approve on October 3, 1996. Pennsylvania has not revised 
the ROP plan for Philadelphia to reflect the significant changes to the 
I/M program since the time the ROP plan was submitted to EPA. I/M 
program emissions reductions are creditable toward ROP planning.

VOC/NOX Reasonably Available Control Technology (RACT) Rules

    The Act requires states to adopt regulatory programs to control 
major sources of VOCs and NOX located in ozone nonattainment 
areas--with the definition of ``major'' becoming increasingly stringent 
based upon the nonattainment area classification. RACT is a generic 
term referring to the variety of controls available to reduce emissions 
from a source or class of sources. EPA has issued guidelines (i.e., 
CTGs) for RACT for more than 30 VOC source categories, with plans to 
issue at least 15 more. Additionally, EPA has issued Alternative 
Control Techniques (ACTs) for specific classes of NOX sources.
    Pennsylvania has adopted a ``case-by-case'' regulatory approach to 
RACT, which applies to the Philadelphia area. Individual sources are 
reviewed independently to determine the level of RACT that source must 
enact. RACT improvements required by the Clean Air Act of 1990 are 
creditable toward ROP plans.

Employee Trip Reduction (ETR) Program

    This program requires employers having 100 or more employees in a 
subject nonattainment area to develop and submit trip reduction plans 
and to reduce their employees trips, as measured by average passenger 
occupancy (APO) levels. A regulation implementing this Clean Air Act 
requirement was adopted by Pennsylvania, but was stayed by the Governor 
before it became effective. Congress eventually amended the Clean Air 
Act to change the nature of the ETR requirement to allow for its 
voluntary implementation. Mandatory ETR programs are creditable toward 
ROP planning.

Consumer Products National Rule

    EPA is in the process of adopting regulations to control VOC 
emissions from consumer products, through manufacturer reformulation of 
these types of products. These products include household, personal, 
and automotive related-products which

[[Page 55257]]

contain VOCs. Pennsylvania has claimed credit toward the ROP plan for 
implementation of this national rule. The consumer products national 
rule is creditable toward ROP planning.

Traffic Line Painting Reformulation

    This measure would require conversion from VOC to water based 
traffic line paints by the Pennsylvania Department of Transportation 
(PennDOT). This measure would take the form of a consent decree with 
PennDOT requiring continued use of these water-based coatings. 
Pennsylvania has taken credit for this measure in its post-1996 plan. 
Only through a mandatory enforcement mechanism (e.g., a binding consent 
decree) would this measure be creditable toward ROP planning.

Highway Vehicle Control NOX Reductions

    This measure includes total NOX reductions associated with 
several mobile source programs. Several programs which would achieve 
NOX reductions, in addition to any other benefits, include the 
enhanced I/M program, the Federal Motor Vehicle Control Program 
(FMVCP), and Phase II of the reformulated gasoline program. 
Pennsylvania has apparently taken credit for all NOX reductions 
stemming from mobile source measures in place, which provide reductions 
in the Philadelphia area. However, it is unclear which specific 
measures are included in the Commonwealth's estimates.

Ozone Transport Region Industrial/Utility Boiler Controls

    The Ozone Transport Commission adopted a memorandum of 
understanding (MOU) for a control strategy to address industrial 
NOX emissions, primarily those generated by electric utilities. 
The MOU recommends reductions (from 1990 levels) from 250 million Btu 
and larger fossil fuel fired indirect transfer units of NOX. 
Additionally, 15 megawatt electric generating units would be capped at 
1990 emissions levels. The reductions would take place through two 
phases, beginning in 1999. Pennsylvania has claimed these NOX 
reductions in its post-1996 ROP.

Analysis of Control Measures:

 Emission Control Measures for the Philadelphia Ozone Nonattainment Area
                             Post-1996 Plan                             
                                                                        
                                                                        
                                                                         
VOC Control Strategies:                                                 
  IM240 Program                                                         
  Federal Reformulated Gasoline                                         
  Federal Motor Vehicle Control Program (Tier I vehicle standards)      
  Employer Trip Reduction Program                                       
  Stage II Vapor Recovery at Gasoline Stations                          
  VOC/NOX RACT                                                          
  Select Industrial Rule Effectiveness Improvements (80%90%)   
  Federal Architectural Industrial and Maintenance Coatings Rule        
  Industrial Facility/Process Shutdowns                                 
  Federal Consumer Products Rule                                        
  Federal Autobody Refinishing Rule                                     
  Traffic Line Paint Reformulation                                      
  Treatment, Storage, and Disposal Facility RCRA National Rule          
NOX Control Strategies:                                                 
  Total Highway Vehicle-related Reductions                              
  Industrial Facility/Process Shutdowns                                 
  Industrial/Utility Boiler NOX Controls                                
                                                                        

    The Commonwealth's plan projects emissions reductions from each of 
the above control strategies for the year 2005 and, therefore 
reductions were estimated by the Commonwealth for the evaluation year 
2005. However, for the post-1996 plan, the Commonwealth is required to 
project reductions expected in 1999 for any claimed control strategy, 
in order to demonstrate that the area will meet its 1999 target level, 
and therefore demonstrate reasonable-further-progress for the 1999 
milestone date specified by the Act.
    Without a 1999 milestone target level and a projection for 1999 
emissions reductions associated with the control strategies claimed 
within the post-1996 ROP plan, it is impossible to determine if 
reasonable progress has been achieved for the period from 1996 to 1999.
    Several of the control strategies contained in the post-1996 plan 
are not creditable toward ROP under the Act, since the state has not 
adopted rules for those programs, or the programs have been stayed and 
are not presently being implemented as stated by the post-1996 plan. 
One example is the enhanced IM240 program described in the 
Commonwealth's SIP, which has been subsequently replaced with a test-
and-repair ASM enhanced I/M program. Another example, the ETR which was 
stayed, and is no longer being implemented as a mandatory control 
measure, as described in the post-1996 ROP plan.
    Since EPA cannot determine if the measures contained in the 
Philadelphia post-1996 plan are sufficient to demonstrate reasonable-
further-progress from 1996 to 1999 or from 1999 to 2002, EPA is not 
evaluating the creditability of specific measures or the levels of 
emissions reductions claimed by the Commonwealth for specific measures 
in the plan, at this time.

Contingency Measures

    Per sections 172(c)(9) and 182(c)(9) of the Act, states must 
include contingency measures in their rate-of-progress plan submittals 
for ozone nonattainment areas classified as moderate or above. 
Contingency measures are measures which are to be immediately 
implemented if reasonable-further-progress is not achieved in a timely 
manner, or if the areas do not attain the NAAQS standard by the 
applicable date mandated by the Act. EPA's interpretation of this Clean 
Air Act requirement is set forth in The General Preamble to Title I (57 
FR 13498), which requires that the contingency measures should, at a 
minimum, ensure that emissions reductions continue to be made if 
reasonable progress (or attainment) is not achieved in a timely manner. 
Contingency measures must be fully adopted rules or measures but do not 
need to be implemented until they are triggered by a failure to either 
meet a milestone or attain the NAAQS.
    States must show that their contingency measures can be implemented 
with minimal further action on their part, and with no additional 
rulemaking action (e.g., public hearings, legislative review, etc.).

Analysis of the Commonwealth's Contingency Measures

    The Commonwealth's post-1996 plan does not specify any contingency 
measures to be applied if reasonable-further-progress is not achieved 
by the 1999 milestone date. Pennsylvania's post-1996 plan indicates the 
state will have more control measures in place than is needed to 
demonstrate reasonable-further-progress by 2005, and that the 
``surplus'' of emissions reductions generated by these control measures 
eliminates the necessity for contingency measures, since this surplus 
could be used toward any shortfall.
    EPA disagrees with this rationale. The contingency measures must be 
available in 1999 if reasonable progress is not achieved by that 
milestone date, not 2005 as the Commonwealth's plan provides for. If 
EPA determines there is an emissions reduction shortfall in 1999, 
measures which have already been enacted by the Commonwealth or the 
federal government would not serve to alleviate the shortfall. Only 
through implementation of additional measures (i.e., contingency 
measures), or through

[[Page 55258]]

early implementation of measures slated for the future, could 
additional emissions reductions occur.
    Therefore, the Commonwealth's plan is not approvable at this time, 
due to a lack of sufficient continency measures to offset sufficient 
ozone precursor emissions in the year after a shortfall, or failure to 
achieve ROP, has been identified.
    However, the Commonwealth has submitted a contingency measure plan 
as part of its September 1996 15% plan submittal. EPA will act upon 
that submittal, including the contingency measures contained within, in 
a separate rulemaking from today's action.

Proposed Rulemaking Action

    EPA has evaluated this submittal for consistency with the Clean Air 
Act, applicable EPA regulations, and EPA policy. Pennsylvania's post-
1996 rate-of-progress plan for the Philadelphia nonattainment area will 
not achieve sufficient reductions to meet the rate-or-progress 
requirements of section 182(c)(2)(B) of the Act. Pennsylvania has not 
projected emissions growth for the period from 1996-1999, nor has the 
Commonwealth calculated an interim ``target level'' of emissions for 
1999, by which to measure its rate-of-progress in attaining the ozone 
NAAQS. Instead, the Commonwealth's plan evaluates emissions reductions 
for the period from 1990 to 2005--ignoring any interim evaluation 
milestones. Several of the measures listed in the plan (to occur by 
2005) have been halted or stricken from the Commonwealth's regulations, 
and are therefore invalid toward meeting the ROP requirement for the 
1999 milestone year.
    Additionally, the baseline 1990 emissions inventory contained in 
the Commonwealth's post-1996 plan has been superseded by a revised 
formal base year inventory which was submitted in September of 1996 as 
part of the Commonwealth's 15% RFP plan. The inventory from which many 
of the control measure emissions reductions for the Commonwealth's 
post-1996 plan (which contains projected emissions reductions from 1990 
to 2005) were determined is therefore invalid. The post-1996 ROP plan 
control measure reductions must be recalculated based upon the 
Commonwealth's revised base year inventory.
    Finally, the Commonwealth's plan does not contain contingency 
measures. Under sections 172(c)(9) and 182(c)(9) of the Act, the 
Commonwealth is required to adopt such backstop measures in the event 
an emissions shortfall occurs in the 1999 milestone year.
    In light of the above deficiencies, EPA is proposing to disapprove 
this SIP revision, which was submitted November 12, 1994, under 
sections 110(k)(3) and 301(a) of the Act. The submittal does not 
satisfy the requirements of section 182(c)(2)(B) of the Act regarding 
the post-1996 rate-of-progress plan, nor the requirement of section 
172(c)(9) of the Clean Air Act regarding contingency measures.
    EPA is soliciting public comments on the issues discussed in this 
document, or on other matters relevant to the demonstration of 
reasonable-further-progress toward attainment of the ozone NAAQS for 
the period from 1996 to 1999. 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.
    The Agency has reviewed this request for revision of the federally-
approved State implementation plan for conformance with the provisions 
of the 1990 Clean Air Act, as enacted on November 15, 1990. The Agency 
has determined that this action does not conform with the statute and 
therefore must be disapproved.
    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

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.

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.
    EPA's 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 preexisting federal 
requirements remain in place after this disapproval. Federal 
disapproval of the state submittal does not affect its state-
enforceability. Moreover, EPA's disapproval of the submittal does not 
impose any new Federal requirements. Therefore, EPA certifies that this 
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.

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 the approval action proposed/promulgated 
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 
approves preexisting 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.
    The Administrator's decision to approve or disapprove the 
Commonwealth's post-1996 rate-of-progress plan SIP revision will be 
based on whether it meets 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.

[[Page 55259]]

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements.

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

    Dated: October 15, 1996.
William T. Wisniewski,
Acting Regional Administrator, Region III.
[FR Doc. 96-27472 Filed 10-24-96; 8:45 am]
BILLING CODE 6560-50-P