[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Proposed Rules]
[Pages 3254-3260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1493]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[PA 098-4032; FRL-5679-3]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Conditional Approval of 15 Percent Reasonable-Further-
Progress Plan and 1990 VOC Emission Inventory for the Pittsburgh Ozone 
Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing to conditionally approve the State 
Implementation Plan (SIP) revision submitted by the Commonwealth of 
Pennsylvania, for the Pittsburgh ozone nonattainment area, to meet the 
15 percent reasonable further progress (RFP, or 15% plan), also known 
as rate-of-progress (ROP) requirements of the Clean Air Act. EPA is 
proposing conditional approval because the 15 percent plan submitted by 
Pennsylvania for the Pittsburgh area requires additional documentation 
to quantify the 15% emission reduction. The 1990 emissions inventory 
for volatile organic compounds (VOCs) used in the 15% plan as the 
baseline for reasonable further progress contains inconsistencies, 
which must be reconciled by Pennsylvania. EPA is, therefore, proposing 
conditional approval of the 1990 VOC emission inventory.

DATES: Comments on this proposed action must be postmarked by February 
21, 1997.

ADDRESSES: Written comments may be mailed to David L. Arnold, Chief, 
Ozone/Carbon Monoxide, 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: Cynthia H. Stahl, Ozone/Carbon 
Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841 
Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone 
at: (215) 566-2180. Questions may also be addressed via e-mail, at the 
following address: [email protected] Please note that while 
information may be requested via e-mail, only written comments can be 
accepted for inclusion in the docket.

SUPPLEMENTARY INFORMATION:

Background

    Section 182(b)(1) of the Clean Air Act (the Act or CAA), as amended 
in 1990, requires ozone nonattainment areas classified as moderate or 
above to develop plans to reduce VOC emissions by fifteen percent from 
the 1990 baseline inventory for the area. These ``15% plans'' were due 
to be submitted to EPA by November 15, 1993, with the reductions to 
occur within 6 years of enactment of the 1990 Clean Air Act Amendments 
(i.e. November 15, 1996). Furthermore, the Act sets limitations on the 
creditability of certain control measures toward reasonable further 
progress. 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. The Act also 
does not allow credit towards RFP 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 Act requires ``contingency 
measures'' to be included in the plan revision. These measures are 
required to be implemented immediately if reasonable further progress 
is not achieved, or if the NAAQS standard is not attained under the 
deadlines set forth in the Act.
    In Pennsylvania, three nonattainment areas are subject to the Clean 
Air Act 15% rate-of-progress requirements. These are the Philadelphia 
severe nonattainment area, the Pittsburgh moderate nonattainment area, 
and the Reading moderate nonattainment area. On July, 19, 1995, EPA 
published, in the Federal Register, a final rule waiving the 15% rate-
of-progress requirements for the Pittsburgh and Reading moderate ozone 
nonattainment areas. The basis

[[Page 3255]]

for that action was a May 10, 1995 EPA policy memo (entitled 
``Reasonable Further Progress, Attainment Demonstration, and Related 
Requirements for Ozone Nonattainment Areas Meeting the Ozone National 
Ambient Air Quality Standard'') allowing such ``waivers'' for areas 
having ambient monitoring data which demonstrated compliance with the 
ozone standard. On June 4, 1996, EPA revoked the waiver for the 
Pittsburgh area, and reinstated the 15% plan requirement. Pennsylvania 
submitted separate SIP revisions for Philadelphia and Pittsburgh. EPA 
is taking action today only on Pennsylvania's 15% plan submittal 
(including the 1990 VOC emissions inventory), which addresses only the 
Pittsburgh ozone nonattainment area. EPA will act separately on the 
contingency plan for the Pittsburgh 15% plan and the 1990 NOx 
emissions inventory, at a later date. The Pittsburgh moderate ozone 
nonattainment area consists of the following counties in Pennsylvania: 
Allegheny, Armstrong, Beaver, Butler, Fayette, Washington, 
Westmoreland.
    EPA has reviewed the March 22, 1996 Pittsburgh area 15% plan 
submittal and has identified several deficiencies, which prohibit full 
approval of this SIP, per section 110 of the Act. A detailed discussion 
of these deficiencies is included below, in the `Analysis' portion of 
this rulemaking action, and also in the technical support document 
(TSD) for this action. Due to these deficiencies, the 15% plan cannot 
be assured of achieving the total reductions required by the rate-of-
progress requirements of the Act. Therefore, EPA is proposing to 
conditionally approve this plan.
    For further information regarding EPA's analysis of the 
Commonwealth's submittal, please refer to the TSD for this action 
(found in the official docket). A summary of the EPA's findings 
follows.

Analysis of the SIP Revision

Base Year Emission Inventory

    The baseline from which states must determine the required 
reductions for 15% planning is the 1990 VOC base year emission 
inventory. The inventory is broken down into several emissions source 
categories: stationary, area, on-road mobile sources, and off-road 
mobile sources. Pennsylvania submitted a formal SIP revision containing 
their official 1990 base year emission inventory on November 12, 1992. 
EPA has not yet taken rulemaking action on that inventory submittal. In 
its March 22, 1996 submittal, Pennsylvania stated that the 1990 
emission inventory included with that submittal is meant to supercede 
the 1992 emission inventory submittal. Therefore, this rulemaking will 
address the 1990 VOC emission inventory only as it pertains to the 
Pittsburgh ozone nonattainment area and no further rulemaking action 
will be taken on the November 12, 1992 emission inventory submittal as 
it pertains to the Pittsburgh ozone nonattainment area. The March 1996 
inventory submittal of the 1990 inventory contains inconsistencies 
including inconsistencies with the inventory summaries in the 15% plan. 
Additional information and documentation from Pennsylvania regarding 
the March 1996 submittal of the Pittsburgh 1990 emission inventory is 
necessary in order for EPA to accept it as a replacement for the 
official 1990 base year inventory SIP revision. EPA has been working 
with Pennsylvania to compile the necessary documentation to approve the 
1990 base year emissions inventory. Pennsylvania has recently submitted 
some additional information that may clarify some of the questions 
about the 1990 inventory. This additional information has been placed 
in the docket for this rulemaking. Please refer to the TSD for a 
specific discussion of the inventory. Therefore, EPA is proposing to 
conditionally approve the 1990 VOC emission inventory for the 
Pittsburgh ozone nonattainment area that was submitted on March 22, 
1996.

Growth in Emissions Between 1990 and 1996

    EPA has interpreted the Clean Air Act to require that reasonable 
further progress towards attainment of the ozone standard must be 
obtained after offsetting any growth expected to occur over that 
period. Therefore, to meet the 15% RFP requirement, a state must enact 
measures achieving sufficient emissions reductions to offset projected 
growth in emissions, in addition to a 15 percent reduction of VOC 
emissions. Thus, an estimate of VOC emissions growth from 1990 to 1996 
is necessary for demonstrating reasonable further progress. Growth is 
calculated by multiplying the 1990 base year inventory by acceptable 
forecasting indicators. Growth must be determined separately for each 
stationary (point) source or by area source category, since sources 
typically grow at different rates. Even within a stationary source, 
individual emission unit emissions may grow at different rates during 
the same time period. EPA's inventory preparation guidance recommends 
the following indicators as applied to emission units in the case of 
stationary sources or to a source category in the case of area sources, 
in order of preference: Product output, value added, earnings, and 
employment. As a last resort, population can also serve as a surrogate 
indicator.
    Pennsylvania's 15% plan contains growth projections for point, 
area, on-road motor vehicle, and non-road vehicle source categories. 
For a detailed description of the growth methodologies used by the 
Commonwealth, please refer to the TSD for this action. Although EPA has 
identified some problematic issues with the methods used to project 
growth in the 1996 Pittsburgh inventory, EPA is not conditioning the 
approval of the 15% plan on the resolution of these issues. The 
rationale for this summarized below and in more detail in the TSD. 
Consequently, EPA is proposing to approve the Commonwealth's 1990-1996 
emissions growth projections for the Pittsburgh 15% plan.
    Pennsylvania did not provide EPA with all the documentation 
necessary to verify the growth projections for the on-road vehicle 
category. EPA, however, has no reason to believe that the 
Commonwealth's methodology or assumptions in making these projections 
are flawed. Therefore, EPA is accepting the Commonwealth's 15% plan 
projection for highway vehicle emissions growth that is based on growth 
in total vehicle miles of travel (VMT) for the region, which the 
Commonwealth expects to increase by 2.8 million miles per day. In 
addition, the Commonwealth expects that on-road emissions are projected 
to decrease by 21.35 tons/day. Emissions from on-highway emissions 
control measures are calculated separately in the plan (including 
reductions associated with fleet turnover and the pre-1990 motor 
vehicle standards) and Pennsylvania indicates that this growth is based 
solely upon increasing VMT growth. Typically, growth in highway 
emissions is determined independently of mobile source control 
strategies. Fifteen percent plans usually indicate what, if any, other 
factors effect highway emissions growth, other than the previously 
identified VMT influence. EPA cannot definitively determine how motor 
vehicle emissions are declining from this data but believes, based on 
the sample calculation submitted by Pennsylvania, that Pennsylvania's 
mobile model inputs are correct. Those interested in obtaining the data 
necessary to verify the Commonwealth's calculations are encouraged to 
contact PA DEP for that information. Therefore, EPA is proposing to 
approve the

[[Page 3256]]

Commonwealth's on-road motor vehicle growth projection.
    For the point source categories, Pennsylvania used the Bureau of 
Economic Analysis (BEA) growth factors to project point source 
emissions on a point source category basis to 1996. Typically, this is 
an acceptable method of estimating point source growth. However, 
Pennsylvania operates an emissions bank in the Commonwealth that allows 
facilities to bank emission reduction credits for subsequent use or 
sale. In addition, Pennsylvania states specifically in its 15% plan 
that it is not taking VOC emission reduction credit from shutdown 
sources since those sources are being allowed to sell their VOC 
emission reductions as credits to other sources. These shutdowns all 
occurred after January 1, 1990. Since the BEA growth factors are 
devised to account for all economic activity, including the shutdown of 
facilities (through loss of employment, income, etc.), allowing both 
the use of the BEA point source growth factors for these source 
categories where the shutdowns occurred and allowing the sources in 
these categories to sell their emission reduction credits could result 
in the double counting of emission reductions, which is not allowed. In 
the General Preamble for the Implementation of Title I of the Clean Air 
Act Amendments (57 FR 13498, April 16, 1992), EPA addresses the issue 
of accounting for emission reduction credits (ERCs) by stating that 
banked emission reduction credits need to be accounted for such that 
their use is consistent with the area's 15% rate of progress plan and 
attainment plan. For any ERCs that are either used or available for use 
prior to the end of the planning period (in this case, the end of 
1996), the state must appropriately account or plan for their use in 
the applicable air quality plan (in this case, the 15% plan). In 
Pennsylvania's March 1996 15% plan submittal, DEP did not identify 
which sources had shut down or in which source categories these 
shutdowns had occurred. Without the proper identification of these 
sources and accounting in the 15% plan, there is no guarantee that the 
use of those shutdown or banked ERCs would be consistent with the 15% 
plan. This potential double counting of emissions is not a problem 
unique to Pennsylvania. EPA guidance to date has not addressed this 
issue in detail. Therefore, EPA is not conditioning the approval of the 
Pittsburgh 15% plan on the resolution of this issue. EPA will, however, 
require that this issue be satisfactorily resolved prior to approval of 
any subsequent air quality plans required for the Pittsburgh 
nonattainment area such as the attainment demonstration.

Calculation of Target Level Emissions

    Pennsylvania calculated a ``target level'' of 1996 VOC emissions, 
per EPA guidance. First, the Commonwealth calculated the non-creditable 
reductions from the FMVCP program and subtracted those emissions from 
the 15 percent plan's 1990 inventory estimate. This yields the 1990 
``adjusted inventory''. The emission reduction required to meet the 15 
percent rate-of-progress requirement equals the sum of 15 percent of 
the adjusted inventory and any reductions necessary to offset emissions 
growth projected to occur between 1990 and 1996, plus reductions that 
resulted from corrections to the I/M or VOC RACT rules that were 
required to be in place before 1990. Table 1 summarizes the 
calculations for the seven-county Pittsburgh nonattainment area's VOC 
target level.

    Table 1.--Calculation of Required Reductions 1 for the Pittsburgh   
                Nonattainment Area's 15% Plan (Tons/day)                
                                                                        
                                                                        
------------------------------------------------------------------------
1990 Base Year Inventory.....................................     402.20
Adjustments for FMVCP/RVP (pre-1990 program).................      28.70
1990 Adjusted Base Year Inventory............................     373.50
15% Reduction Requirement....................................      56.03
RACT ``fix-ups''.............................................       0.0 
FMVCP & RVP Reductions.......................................       8.70
Required Reduction (w/o growth)..............................      84.73
1990 Baseline Emissions......................................     402.20
Required Reductions (w/o growth).............................     -84.73
1996 Target Level............................................     317.47
1990-1996 Emissions Growth...................................     -20.51
Required Reductions (w/o growth).............................      84.73
Total Required Reduction.....................................      64.22
Total Reduction Claimed by Pennsylvania......................      67.48
------------------------------------------------------------------------
1 Emission figures presented here are from the March 27, 1996 submittal.
  These figures will likely change once Pennsylvania makes the          
  corrections to the plan to reconcile inventory inconsistencies, etc.  

    Control Strategies in the 15% Plan:
    The specific measures adopted (either through state or federal 
rules) for the Pittsburgh area are addressed, in detail, in the 
Commonwealth's 15% plan. The following is a brief description of each 
control measure that Pennsylvania has claimed credit for in the 
submitted 15% plan, as well as the results of EPA's review of the use 
of that strategy towards the Clean Air Act rate-of-progress 
requirement.

Creditable Emission Control Strategies

    The control measures described below are creditable towards the 
rate-of-progress requirements of the Act. However, the documentation 
provided by the Commonwealth with the March 22, 1996 submittal does not 
clearly show how the claimed emission reductions from the 
implementation of the benzene National Emission Standards for Hazardous 
Air Pollutants (NESHAP) were obtained and calculated. Pennsylvania has 
recently sent EPA additional material pertaining to the calculation of 
the NESHAP credit. This additional information has been placed in the 
docket for this rulemaking. If EPA determines that the additional 
material with the original submittal is adequate to document the NESHAP 
credit, EPA will state that Pennsylvania has met the condition that 
requires adequate documentation of the NESHAP credit. For the mobile 
source measures, which Pennsylvania estimates using a Post-Processor 
for Air Quality (PPAQ) computer model, limited documentation was 
provided. The PPAQ model uses MOBILE modeling information as input, and 
determines total reductions for mobile source control strategies. The 
Commonwealth recently provided some sample calculations used in this 
modeling, but no detailed documentation of the MOBILE runs. However, as 
mentioned earlier, EPA has no reason to believe that Pennsylvania's 
methodology is flawed. Therefore, EPA is proposing to approve the 
claimed mobile emission reductions.
    As described below, EPA cannot fully approve the reductions from 
the benzene NESHAP measure without additional documentation to verify 
the emissions estimates. As mentioned above, the documentation recently 
submitted by the Commonwealth and placed in the docket for this 
rulemaking may address this issue. For further details regarding EPA's 
review of the Commonwealth's control measures, please refer to the TSD 
for this action.

Benzene NESHAP

    EPA promulgated the benzene NESHAP (40 CFR part 61, subpart L, 
National Emission Standard for Benzene Emissions from Coke By-Product 
Recovery Plants) on September 19, 1991. The coke oven battery NESHAP 
(40 CFR part 63, National Emission Standards for Hazardous Air 
Pollutants for Source Categories and for Coke Oven Batteries) was 
promulgated on October 27, 1993. The rule regulates the emissions from 
new and existing coke oven batteries. The benzene NESHAPs are expected 
to produce high emission

[[Page 3257]]

reductions. However, EPA is unable to fully verify the 35.0 tons/day 
credit estimate claimed by the Commonwealth for this program, due to a 
lack of detail regarding the methodology used to quantify the benzene 
NESHAP emission reductions and inconsistencies with the emission 
inventory figures for sources where this credit is being claimed for 
the 15% plan. Therefore, while it is not unlikely that a 35 ton/day 
credit from these requirements, Pennsylvania must provide the 
documentation that supports it. As stated earlier, Pennsylvania has 
recently provided some additional information regarding this 
calculation that may clarify how the credits were calculated.

Architectural and Industrial Maintenance (AIM) Coating

    EPA is in the process of adopting a national rule to control VOC 
emissions from solvent evaporation through reformulation of coatings 
used in architectural and industrial maintenance coatings, such as 
building and bridge paints, etc. This is a national rule that EPA 
proposed on June 25, 1995 (61 FR 32729), which expected compliance with 
the coating requirements by April 1997. Subsequently, EPA has been sued 
over this proposed national rule and has negotiated a compliance date 
of no earlier than January 1, 1998. VOC emissions emanate from the 
evaporation of solvents used in the coating process. In a memorandum 
dated March 22, 1995 (``Credit for the 15% Rate-of-Progress Plans for 
Reductions from the Architectural and Industrial Maintenance (AIM) 
Coating Rule''), EPA allowed states to claim a 20% reduction of total 
AIM emissions from the national rule. In this memorandum, EPA stated 
that although the emission reductions are not expected to occur until 
April 1997, states will be allowed to use the expected emission 
reduction credit from this measure in their 15% plans. EPA believes 
that even though the compliance date has been pushed to January 1, 
1998, the emission reduction from the national AIM rule are creditable 
in state 15% plans.
    Use of emissions reductions from EPA's expected national rule is 
acceptable towards the 15% plan target. Pennsylvania claims a 20% 
reduction, or 5.0 tons/day (1996 uncontrolled emissions x 20% emission 
reduction) from their 1996 projected uncontrolled AIM emissions. Since 
the 1996 uncontrolled emissions are 20.83 tons/day, a 20% emission 
reduction is 4.16 tons/day. Therefore, there appears to be a 
discrepancy in the calculated emission reduction expected from the 
implementation of this national rule. Pennsylvania must resolve this 
discrepancy and determine the proper emission credit from this national 
rule.

Treatment Storage and Disposal Facilities (TSDFs)

    TSDFs are private facilities that manage dilute wastewater, 
organic/inorganic sludges, and organic/inorganic solids. Waste disposal 
can be done by various means including: incineration, treatment, or 
underground injection or landfilling. EPA promulgated a national rule 
on June 21, 1990 for the control of TSDF emissions (55 FR 25454). 
Pennsylvania claims an expected VOC reduction of 9.59 tons/day from 
this national rule in one part of the 15% plan submittal; although in 
the narrative description of the TSDF credit, Pennsylvania claims 10.0 
tons per day (TPD) credit. Using the figures provided by Pennsylvania, 
the expected emission reduction from this measure is calculated using 
the 12.75 TPD projected 1996 emissions and multiplying this by the 
control efficiency (94%) and rule effectiveness (80%), resulting in an 
emission credit of 9.59 TPD. EPA believes that the creditable emissions 
from this control measure, given the inventory information provided by 
Pennsylvania, is 9.59 TPD.

Consumer/Commercial Products National Rule

    Section 183(e) of the Clean Air Act required EPA to conduct a study 
of VOC emissions from consumer and commercial products. EPA was then 
required to list (and eventually) to regulate those product categories 
that account for 80% of those consumer products emissions in ozone 
nonattainment areas. Group I of EPA's regulatory schedule lists 24 
categories of consumer products to be regulated by national rule--
including personal, household, and automotive products. EPA intends to 
issue a final rule covering these products in Spring 1997. The 
Commonwealth claims a 20% reduction from the consumer products portion 
of their 1996 uncontrolled inventory, or a 4.0 tons/day reduction. 
Using the amended emission inventory figures provided by DEP on October 
7, 1996, the actual emission credit available is 5.06 TPD. This is a 
creditable emission reduction for the Pittsburgh 15% plan.

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 Act was amended in 1990, the resulting emission reductions are 
creditable toward the 15% reduction goal. The EPA agrees with the 
Commonwealth's projected emission reductions. Due to the three-year 
phase-in period for this program, and the associated benefits stemming 
from fleet turnover, the reductions prior to 1996 are somewhat limited. 
Pennsylvania claimed a reduction of 6.0 tons/day from this post-1990 
Federal Motor Vehicle Control Program. EPA accepts this estimate of 
expected emission reductions from this program.

Inspection and Maintenance Program

    Section 182(b)(1) of the CAA requires that States containing ozone 
nonattainment areas classified as Moderate or above prepare State 
Implementation Plans (SIPs) that provide for a 15% VOC emissions 
reduction by November 15, 1996. Most of the 15% SIPs originally 
submitted to the EPA contained enhanced I/M programs because this 
program achieves more VOC emission reductions than most, if not all 
other, control strategies. However, because most States experienced 
substantial difficulties with these enhanced I/M programs, only a few 
States are currently actually testing cars using their original 
enhanced I/M protocols.
    On September 18, 1995, EPA finalized revisions to its enhanced I/M 
rule allowing states significant flexibility in designing I/M programs 
appropriate for their needs (60 FR 48029). Subsequently, Congress 
enacted the National Highway Systems Designation Act of 1995 (NHSDA), 
which provides States with more flexibility in determining the design 
of enhanced I/M programs. The substantial amount of time needed by 
States to re-design enhanced I/M programs in accordance with the 
guidance contained within the NHSDA, secure state legislative approval 
when necessary, and set up the infrastructure to perform the testing 
program precludes States that revise their I/M programs from obtaining 
emission reductions from such revised programs by November 15, 1996.
    Given the heavy reliance by many States upon enhanced I/M programs 
to help achieve the 15% VOC emissions reduction required under CAA 
section 182(b)(1) of the Act, and the recent NHSDA and regulatory 
changes regarding enhanced I/M programs, EPA believes that it is no 
longer possible for many states to achieve the portion of the 15% 
reductions that are attributed to I/M by November 15, 1996. Under these

[[Page 3258]]

circumstances, disapproval of the 15% SIPs would serve no purpose. 
Consequently, under certain circumstances, EPA will propose to allow 
States that pursue re-design of enhanced I/M programs to receive 
emission reduction credit from these programs within their 15% plans, 
even though the emissions reductions from the I/M program will occur 
after November 15, 1996.
    Specifically, EPA will propose approval of 15% SIPs if the 
emissions reductions from the revised, enhanced I/M programs, as well 
as from the other 15% SIP measures, will achieve the 15% level as soon 
after November 15, 1996 as practicable. To make this ``as soon as 
practicable'' determination, EPA must determine that the SIP contains 
all VOC control strategies that are practicable for the nonattainment 
area in question and that meaningfully accelerate the date by which the 
15% level is achieved. EPA does not believe that measures meaningfully 
accelerate the 15% date if they provide only an insignificant amount of 
reductions. However, as a minimum requirement, EPA will approve a 15% 
SIP only if it achieves the reductions from I/M needed to reach the 15% 
level by no later than November 15, 1999.
    In the case of Pittsburgh, the Pennsylvania has submitted a 15% SIP 
that would achieve the amount of reductions needed from I/M by late 
1998. The Pennsylvania I/M program is an annual program with 
implementation required to begin no later than November 15, 1997. 
Pennsylvania has submitted a 15% SIP for Pittsburgh that includes 
control measures that are creditable toward the 15% plan. Emission 
reductions in the Pittsburgh nonattainment area resulting from the 
implementation of the benzene NESHAP and from implementation of FMVCP--
Tier I have already occurred. EPA believes that this SIP contains all 
measures, including I/M, that achieves the required reductions as soon 
as practicable for this nonattainment area.
    EPA has examined other potentially available SIP measures to 
determine if they are practicable for the Pittsburgh moderate ozone 
nonattainment area and if they would meaningfully accelerate the date 
by which the area reaches the 15% level of reductions. EPA proposes to 
determine that the SIP contains the appropriate measures. For the 
Pittsburgh area, reformulated gasoline (RFG) and Stage II vapor 
recovery, are regulatory options that, theoretically, might be 
implemented prior to 1998. For RFG, since the Commonwealth has not 
petitioned EPA to opt back into the program, and since the section 
211(k)(6)(A) of the Act provides a one year implementation timeframe 
for opt-ins of the RFG program, EPA believes the Commonwealth is 
meeting 15% as soon as practicably possible. For Stage II, the 
Commonwealth currently has a compliance moratorium in the Pittsburgh 
nonattainment area on their existing Stage II regulation (Pennsylvania 
Code Title 25, Subpart C, Article III, Chapter 129.82). Even if the 
Commonwealth were to choose to lift their moratorium, the emission 
reductions from the implementation of Stage II are unlikely to occur 
prior to 1998 since the regulated community will have to be given some 
time to make the capital investments, purchase and install the 
equipment to implement this program.
    The Commonwealth has recently concluded the Southwestern 
Pennsylvania Stakeholders Group process that will result in 
recommendations to the Governor of Pennsylvania as to the control 
measures that should be implemented in the Pittsburgh nonattainment 
area in order to reach attainment of the ozone national ambient air 
quality standard. The stakeholders final report and recommendation to 
the Governor is expected to be released soon. For the Pittsburgh 15% 
plan, the Commonwealth has chosen to implement the I/M program in the 
Pittsburgh nonattainment area, which is expected to produce a 13 ton 
per day emission reduction beginning in 1998. The details of this 
analysis are contained in the accompanying TSD.

   Summary of Creditable Emission Reductions for the Pittsburgh Ozone   
                           Nonattainment Area                           
                               [Tons/day]                               
------------------------------------------------------------------------
           Required Reduction for the Pittsburgh area              64.22
------------------------------------------------------------------------
Creditable reductions:                                                  
  Benzene NESHAP \1\............................................   35.00
  FMVCP (Tier I)................................................    6.00
  Inspection and Maintenance Program \2\........................    5.00
  AIM Coatings Rules............................................    4.16
  Consumer/Commercial Products..................................    5.06
  TSDF Controls.................................................    9.59
                                                                 -------
      Total.....................................................   64.81
------------------------------------------------------------------------
\1\ The emission reductions from this program have not been             
  substantiated by Pennsylvania.                                        
\2\ Partial credit from this program is taken in the 15% plan with the  
  remaining credit taken in the contingency plan, which is not the      
  subject of this rulemaking notice.                                    

III. Proposed Action

    The EPA has evaluated this submittal for consistency with the Act, 
applicable EPA regulations, and EPA policy. On its face, this RFP plan 
for Pittsburgh achieves the required 15% VOC emission reduction to meet 
the requirements of section 182(b)(1) of the Act. While all the 
emissions inventory figures have not been substantiated and the amount 
of creditable reductions for certain control measures has not been 
adequately documented to qualify for Clean Air Act approval, EPA 
believes that the submittal for Pittsburgh contains enough of the 
required structure to warrant conditional approval.
    In light of the above deficiencies, EPA is proposing to 
conditionally approve this SIP revision, which includes the 15% plan 
and the 1990 emission inventory, under section 110(k)(4) of the Act. 
The submittal does not fully satisfy the requirements of section 
182(b)(1) of the Act regarding the 15 percent reasonable further 
progress plan or section 182(a)(1) of the Act regarding emission 
inventories.
    Today's notice of proposed rulemaking begins a 30-day clock for the 
Commonwealth to make a commitment to EPA to correct the major elements 
of the SIP that EPA considers deficient, by date certain, within 1 year 
of conditional approval. These elements are described as follows. In 
order to make this 15% plan approvable, Pennsylvania must fulfill the 
following conditions by no later than 12 months after EPA's final 
conditional approval:
    (1) Reconcile the 1990 VOC point source emissions inventory with 
all the appendices, tables and narratives throughout the 15% document, 
wherever emissions are cited;
    (2) After establishing consistent figures as described in (1) 
above, provide sample calculations for point source 1990, 1990 
adjusted, and 1996 projected emissions showing how each of these 
figures were obtained (The level of documentation must be equivalent to 
that required for approval of a 1990 emissions inventory as described 
in the emission inventory documents at the beginning of this technical 
support document.);
    (3) Provide additional documentation for the emissions for those 
sources categories where credit is claimed (NESHAP);
    (4) Provide a written commitment to remodel the I/M program as 
implemented in the Pittsburgh nonattainment area in accordance with EPA 
guidance (December 23, 1996 memo entitled ``Modeling 15% VOC Reductions 
from I/M in 1999--Supplemental Guidance), submit the remodeling to EPA; 
and

[[Page 3259]]

    (5) Fulfill the conditions listed in the I/M SIP rulemaking notice 
(proposed October 3, 1996, 61 FR 51638) and summarized here as: (a) 
Geographic program coverage and program start dates, (b) ongoing mass-
based transient program evaluation, (c) test types, test procedures and 
emission standards, (d) test equipment specifications, and (e) motorist 
compliance enforcement demonstration.
    After making all the necessary corrections to establish accuracy 
and consistency in the emission inventory, baseline and projected 
figures, and the creditability of chosen control measures, Pennsylvania 
must demonstrate that 15% emission reduction is obtained in the 
Pittsburgh nonattainment area as required by section 182(b)(1) of the 
Act and in accordance with EPA's policies and guidance issued pursuant 
to section 182(b)(1). Resolution of the issues pertaining to banked 
emissions and projected growth is not a condition of this 15% plan 
approval. Satisfactory resolution of these issues will be required for 
any approval of subsequent air quality plans. If the Commonwealth does 
not make the required written commitment to EPA within 30 days, EPA is 
today proposing in the alternative that this SIP revision be 
disapproved.
    EPA and Pennsylvania have worked closely since the March 1996 
submittal in order to resolve all the issues necessary to fully approve 
the Pittburgh 15% plan. Pennsylvania is aware of the above deficiencies 
and is currently working to amend the Pittsburgh 15% plan to address 
the above-named deficiencies. Some of these amendments have been sent 
to EPA and others remain to be sent. While some of these deficiencies 
currently remain, EPA believes that all issues will be resolved no 
later than 12 months after EPA's final conditional approval of the 
Pittsburgh 15% plan. While this rulemaking was being prepared, 
Pennsylvania has provided some additional information pertaining to 
their March 1996 submittal. This additional information has been placed 
in the rulemaking docket and is available to the public. EPA will 
consider all information submitted as a supplement or amendment to the 
March 1996 submittal prior to any final rulemaking action. In addition, 
since Congress passed the National Highway Systems Designation Act of 
1995, which amended federal I/M program requirements and granted states 
authority to revise their I/M programs, and Pennsylvania has utilized 
that authority to revise its I/M program, revision of the 15% plan to 
reflect the I/M program changes is expected. When the Commonwealth 
submits an amended 15% plan, EPA will review the whole Pittsburgh 15% 
plan and the Pittsburgh 1990 base year emissions inventory, including 
its amendments, for compliance with the requirements of the Clean Air 
Act. At that time, EPA will re-propose rulemaking action based on the 
merits of the original submittal and its amendments.
    Nothing in today's 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.
    This proposed conditional approval action for the Pennsylvania 15% 
plan and the 1990 VOC emission inventory for Pittsburgh 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.
    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.
    Conditional approvals of SIP submittals under section 110 and 
subchapter I, part D of the CAA do not create any new requirements but 
simply approve requirements that the State is already imposing. 
Therefore, because the Federal SIP approval does not impose any new 
requirements, EPA 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).
    If the conditional approval is converted to a disapproval under 
section 110(k), based on the State's failure to meet the commitment, it 
will not affect any existing state requirements applicable to small 
entities. Federal disapproval of the state submittal does not affect 
its state-enforceability. Moreover, EPA's disapproval of the submittal 
does not impose a new Federal requirement. Therefore, EPA certifies 
that this disapproval action would not have a significant impact on a 
substantial number of small entities because it does not remove 
existing requirements nor does it substitute a new federal requirement.
    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 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.
    Under section 801(a)(1)(A) of the Administrative Procedures Act 
(APA) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996, EPA submitted a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of the General Accounting 
Office prior to publication of the rule in today's Federal Register. 
This rule is not a ``major rule'' as defined by section 804(2) of the 
APA as amended.
    The Regional Administrator's decision to approve or disapprove the

[[Page 3260]]

SIP revision pertaining to the Pittsburgh ozone nonattainment area 15% 
plan and 1990 VOC emission inventory 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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Reporting and recordkeeping requirements, 
Ozone, Volatile organic compounds.

    Dated: January 13, 1997.
W. Michael McCabe,
Regional Administrator.
[FR Doc. 97-1493 Filed 1-21-97; 8:45 am]
BILLING CODE 6560-50-P