[Federal Register Volume 62, Number 47 (Tuesday, March 11, 1997)]
[Proposed Rules]
[Pages 11131-11138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6019]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[PA 099-4052; FRL-5702-6]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; 15 Percent Plan and 1990 VOC Emission Inventory for the 
Philadelphia Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing conditional interim approval of the State 
Implementation Plan (SIP) revision submitted by the Commonwealth of 
Pennsylvania, for the Philadelphia 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 withdrawing its proposed disapproval of the Philadelphia 15% plan 
and 1990 emission inventory published in the Federal Register on July 
10, 1996. EPA is proposing conditional interim approval because the 15% 
plan submitted by Pennsylvania for the Philadelphia area requires 
additional documentation to quantify the 15% emission reduction and 
relies on the inspection and maintenance (I/M) program that received a 
conditional interim approval. Finally, the 1990 VOC emissions inventory 
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 April 10, 
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]

[[Page 11132]]

Please note that while information may be requested via e-mail, only 
written comments can be accepted for inclusion in the docket.

SUPPLEMENTARY INFORMATION:

I. 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 15% 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. Furthermore, 
the Act 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, two ozone nonattainment areas are subject to the 
CAA 15% rate-of-progress requirements. These are the Philadelphia 
severe nonattainment area and the Pittsburgh moderate nonattainment 
area. 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 the Philadelphia ozone nonattainment area. EPA will act 
separately on the contingency plan for the Philadelphia 15% plan and 
the 1990 NOx emissions inventory, at a later date. The Philadelphia 
severe ozone nonattainment area consists of the following counties in 
Pennsylvania: Bucks, Chester, Delaware, Montgomery, Philadelphia.
    On July 10, 1996, EPA proposed to disapprove the Philadelphia 15% 
plan that was submitted on January 18, 1995 (61 FR 36320). EPA proposed 
disapproval of the January 18, 1995 submittal because it assumed credit 
towards ROP for numerous control strategies which were either not fully 
adopted, are not creditable towards ROP under the Act, or had not been 
adequately quantified. EPA could not approve the January 1995 15% plan 
submittal for Philadelphia as it would have resulted in a ``shortfall'' 
towards Pennsylvania's RFP demonstration. Also in the July notice, EPA 
proposed to disapprove the Philadelphia area 1990 emissions inventory 
estimates used in the 15% plan as the baseline because it differed 
substantially from Pennsylvania's separate 1990 base year emission 
inventory SIP submitted in 1992 to EPA. Without justification for these 
differences in the respective submittals pending before EPA, it cannot 
approve the revised inventory estimates. The September 12, 1996 
submittal by Pennsylvania is intended to address the deficiencies in 
the original January 1995 Philadelphia 15% plan submittal. Therefore, 
this rulemaking action withdraws EPA's July 10, 1996 proposed 
disapproval and instead proposes conditional interim approval of the 
Philadelphia 15% plan that was submitted in September 1996.
    EPA has reviewed the September 12, 1996 Philadelphia area 15% plan 
submittal and has identified several deficiencies, which prohibit full 
approval of this SIP, pursuant to 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) prepared by EPA in support of this action. Due to these 
deficiencies, the 15% plan cannot be assured of achieving the total 
reductions required by the ROP requirements of the Act. EPA is required 
to approve this 15% plan as a conditional interim approval because it 
relies on emission reductions from the Pennsylvania vehicle inspection 
and maintenance (I/M) program. EPA promulgated final conditional 
interim approval of Pennsylvania's I/M program under the National 
Highway Systems Designation Act of 1995 on January 28, 1997 (62 FR 
4004). EPA can only fully approve a 15% plan if the emission control 
measures relied on by the plan are also fully approved. Because the 
Commonwealth's I/M program has received only conditional interim 
approval, EPA is proposing conditional interim approval of the 
Philadelphia 15% plan as well.
    Further information regarding EPA's analysis of the Commonwealth's 
submittal is contained in the TSD for this action. Copies of the TSD 
are available upon request from the Regional office listed in the 
ADDRESSES section of this notice. A summary of the EPA's findings 
follows.

II. Analysis of the SIP Revision

A. 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. 
Pennsylvania has stated that its September 12, 1996 15% plan submittal 
includes a revised version of the 1990 emission inventory, and is meant 
to supersede the 1992 emission inventory submittal. Therefore, this 
rulemaking will address the 1990 VOC emission inventory only as it 
pertains to the Philadelphia ozone nonattainment area and no further 
rulemaking action will be taken on the November 12, 1992 emission 
inventory submittal as it pertains to the Pennsylvania portion of the 
Philadelphia ozone nonattainment area. The September 1996 submittal of 
the 1990 emissions inventory contains inconsistencies with the 
inventory summaries of the 15% plan. Additional information and 
documentation from Pennsylvania regarding the September 1996 submittal 
of the Philadelphia 1990 emission inventory is necessary in order for 
EPA to approve it. EPA has been working with Pennsylvania to compile 
the necessary documentation to approve the 1990 base year emissions 
inventory and anticipates the resolution of these issues prior to the 
final 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 Philadelphia ozone nonattainment 
area that was submitted on September 12, 1996.

B. Growth in Emissions Between 1990 and 1996

    EPA has interpreted the Act to require that reasonable further 
progress toward attainment of the ozone standard must

[[Page 11133]]

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. 
Pennsylvania used growth factors from the Bureau of Economic Analysis 
(BEA) for the point and area sources. For a detailed description of the 
growth methodologies used by the Commonwealth, please refer to the TSD 
for this action. Although EPA has identified where the methods used to 
project growth in the 1996 Philadelphia inventory differ from standard 
guidance and methodologies, EPA is not conditioning the approval of the 
15% plan on the resolution of these issues. The rationale for this is 
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 Philadelphia 15% plan.
    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 7.7 million miles per day. In addition, the Commonwealth 
expects that on-road emissions are projected to decrease by 11.9 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. Therefore, EPA is proposing to approve the 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, using 
these growth factors 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 
(ERCs) for subsequent use or sale. In addition, Pennsylvania states 
specifically in its 15% plan that it is taking VOC emission reduction 
credit from certain shutdown sources toward the required 15% emission 
reduction. Other sources that bank their ERCs 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 shutdown 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 by 
stating that banked emission reduction credits need to be accounted for 
such that their use is consistent with the area's 15% ROP plan and 
attainment plan. Where those shutdown credits were being applied to the 
required 15% emission reduction, Pennsylvania's September 1996 15% plan 
submittal identified those sources that had shut down. EPA is not 
conditioning the approval of the Philadelphia 15% plan on the 
resolution of this double counting issue. EPA will, however, require 
that this issue be satisfactorily resolved prior to approval of any 
subsequent air quality plans required for the Philadelphia 
nonattainment area such as the post-96 plan and attainment 
demonstration.

C. 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% 
ROP 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 VOC 
target level for the five counties that make up the Pennsylvania 
portion of the Philadelphia nonattainment area.

  Table 1.--Calculation of Required Reductions \1\ for the Philadelphia 
                      Nonattainment Area's 15% Plan                     
                               [Tons/day]                               
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
1990 Base Year Inventory...................................       615.56
Adjustments for FMVCP/RVP (pre 1990 program)...............        33.02
1990 Adjusted Base Year Inventory..........................       582.53
15% Reduction Requirement..................................        87.38
RACT ``fix-ups''...........................................         0.84
FMVCP & RVP Reductions.....................................        33.02
1990 Adjusted Base Year Inventory..........................       582.53

[[Page 11134]]

                                                                        
Required Reductions (w/o growth)...........................       121.24
1996 Target Level..........................................       494.31
FMVCP & RVP Reductions.....................................       -33.02
1990-1996 Emissions Growth.................................        35.41
Required Reductions (w/o growth)...........................       121.24
Total Required Reduction...................................       123.63
Total Reduction Claimed by Pennsylvania....................      127.91 
------------------------------------------------------------------------
\1\ Emission figures presented here are from the September 12, 1996     
  submittal. These figures may change once Pennsylvania makes the       
  corrections to the plan to reconcile inventory inconsistencies, etc.  

D. Control Strategies in the 15% Plan

    The specific measures adopted (either through state or federal 
rules) for the Philadelphia area are addressed, in detail, in the 
Commonwealth's 15% plan. The following is a brief description of each 
control measure 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 ROP requirement.

E. Creditable Emission Control Strategies

    The control measures described below are creditable toward the ROP 
requirements of the Act. Pennsylvania takes emission credit toward the 
15% requirement through implementation of the following required 
programs: (1) Federal reformulated gasoline, (2) reformulated 
gasoline--nonroad, (3) I/M FMVCP/Tier I, and (4) Stage II vapor 
recovery. Pennsylvania also takes emission credit toward the 15% 
requirement through the implementation of the following programs: (1) 
Federal architectural and industrial maintenance coating regulation 
(national rule), (2) treatment, storage and disposal facility (TSDF) 
controls (hazardous waste rule with air emission reductions), (3) 
autobody refinishing national rule, (4) consumer and commercial 
products national rule, and (5) facility shutdowns. 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 has provided some sample calculations used in this 
modeling, but no detailed documentation of the MOBILE runs. However, 
EPA has no reason to believe that Pennsylvania's methodology is flawed. 
Therefore, EPA is proposing to approve the claimed mobile emission 
reductions.
    Further details regarding EPA's review of the Commonwealth's 
control measures are contained in the TSD for this action.
Architectural and Industrial Maintenance (AIM) Coating
    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 was sued over this proposed national rule 
and negotiated a compliance date of no earlier than January 1, 1998. 
VOC emissions come from the evaporation of solvents used in the coating 
process. In a memo 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 memo, 
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 reductions 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. Although Pennsylvania states 
that they are claiming 15% emission reduction credit from this measure 
in their 15% plan, the figures used to calculate the actual expected 
emission reduction from this measure results in an emission reduction 
of 20%, which is EPA's estimate of expected emission reductions from 
the AIM national rule. Therefore, although the Pennsylvania submittal 
is inaccurate, the resulting emission reduction credit of 20% from the 
AIM coating rule is acceptable. A 20% reduction from their 1996 
projected uncontrolled AIM emissions results in a 7.28 tons per day 
(TPD) emission reduction credit (1996 uncontrolled emissions x 20% 
emission reduction). Since the 1996 uncontrolled emissions are 36.41 
TPD, a 20% emission reduction is 7.28 TPD. EPA has determined that 7.28 
TPD is creditable from this control measure for the Philadelphia 15% 
plan.
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 Phase I of the 
TSDF national rule on June 21, 1990 (55 FR 25454). The Phase II TSDF 
rule was published in the Federal Register on December 6, 1994 (59 FR 
62896) and subsequently amended on February 9, 1996 (61 FR 4903) and 
November 25, 1996 (61 FR 59932). Final compliance with the Phase II 
requirements is required by no later than December 8, 1997. 
Pennsylvania claims an expected VOC reduction of 9.45 TPD 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 TPD 
credit. Additionally, from the summary tables (Tables 3.2 and 4.5) of 
the 15% plan, it is not possible to determine the emissions from this 
area source category since there is no category specifically labeled as 
TSDFs. The closest category is one labeled ``Waste Disposal''. The 1996 
projected emissions for this category, however, are listed as 22.50 
tons per day. Using the figures provided by Pennsylvania in Appendix 3 
of the 15% plan, the expected emission reduction from this measure is 
calculated using the 12.57 TPD projected 1996 emissions and

[[Page 11135]]

multiplying this by the control efficiency (94%) and rule effectiveness 
(80%), resulting in an emission credit of 9.45 TPD. In a May 1993 EPA 
memorandum, EPA agreed that a 93% emission reduction could be expected 
from the implementation of the Phase II TSDF rule. Therefore, the 
creditable emission reduction for this measure is not 9.45 tons/day but 
9.35 tons/day (12.57 tons/day 1996 emissions  x  0.93 x 0.80). 
Pennsylvania must document how it determined the 1990 emissions from 
this category and calculated the emission reduction credit due to the 
implementation of this national rule. Provided the emission inventory 
and projected figures are correct, EPA has determined that the 
creditable emissions from this control measure, given the inventory 
information provided by Pennsylvania, is 9.35 TPD. Therefore, only 9.35 
TPD of emission reductions from the TSDF rule are creditable toward the 
ROP requirements of the Act.
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. Although EPA 
intended to issue a final rule covering these products by December 
1996, the final rule is now expected to be published in Spring 1997 and 
require compliance by July 1997. The Commonwealth claims a 20% 
reduction from the consumer products portion of their 1996 uncontrolled 
inventory, or a 6.58 tons/day reduction (32.89 tons per day, 1996 
projected emissions  x  20% emission reduction). EPA has determined 
that 6.58 TPD is creditable toward the 15% plan requirement.
Autobody Refinishing
    Autobody shop emissions come from the painting of damaged vehicles 
or the reconditioning of old vehicles typically done in an industrial 
or small business shop. The coatings used emit VOCs in significant 
amounts and EPA has developed a national rule to address the VOC 
content in those coatings. In a November 29, 1994 memorandum, ``Credit 
for the 15 Percent Rate-of-Progress Plans for Reductions from the 
Architectural and Industrial Maintenance (AIM) Coating Rule and the 
Autobody Refinishing Rule'', EPA set forth policy on the creditable 
reductions to be assumed from the national rule for autobody 
refinishing. That memorandum allowed for a 37% reduction from current 
emissions with an assumption of 100% rule effectiveness (presuming the 
coating application instructions were being followed). Pennsylvania is 
claiming a 37% emission reduction, resulting in an overall expected 
emission reduction of 6.3 tons per day (17.02 tons per day, 1996 
projected emissions  x  37% emission reduction). EPA has determined 
that 6.3 TPD is creditable toward the 15% plan requirement.
Shutdown Credits
    Pennsylvania is claiming 3.4 tons per day from large stationary 
sources that have shut down emission units since 1990. Shutdown 
emission reduction credits are creditable toward a state's 15% plan 
requirements provided they are surplus, quantifiable, enforceable and 
permanent. Pennsylvania's regulations (25 Pa. Code Chapter 127.207) 
require that ERCs generated in the Commonwealth also meet these 
criteria. Pennsylvania has submitted documentation with the 
Philadelphia 15% plan showing the 1990 emissions of each of the 23 
facilities that are providing either part or all of its shutdown 
emissions toward the 15% emission reduction requirement. EPA generally 
agrees with the creditability of the shutdown emissions except for 
those calculated for Philadelphia Textile Finishers, S.K.F., 3M, and 
Progress Lighting Co. For Philadelphia Textile Finishers, S.K.F., and 
Progress Lighting Co., the claimed shutdown credits appear to exceed 
those emissions reported for these sources in the 1990 base year 
emissions inventory. EPA cannot allow emission reductions from sources 
to be credited toward the 15% plan where those emission reduction 
credits exceed the amount of those sources' 1990 emissions. While the 
most recent 2 year representative period is used to generate the 
emissions baseline, for credibility toward the 15% emission reduction, 
the emissions may not exceed those emitted in 1990; otherwise the 
emissions cannot be determined to be surplus. The documentation 
provided for Philadelphia County (prepared by the City of Philadelphia 
Air Management Services) was in a different format from the other 4 
counties in the Philadelphia nonattainment area supplied by DEP and, 
unlike those DEP documents, does not provide emissions attributed to 
each of the emission units within a facility. For those facilities 
within Philadelphia County where only part of the facility's shutdown 
emissions are being claimed as credit toward the 15% requirement, EPA 
cannot verify the emissions since the inventory is not provided on an 
emission unit basis. Pennsylvania must clearly document where the 
emission reductions from the partial shutdowns are occuring through a 
more detailed submittal of the 1990 inventory for Philadelphia County. 
It appears from the information provided that out of the 23 facilities 
providing shutdown credits, only 5 are total facility shutdowns. These 
five are all located in Philadelphia County and are: Quality Container 
Corp., U.S. Mint, Schneider Brothers Co., Monarch Manufacturing Works 
Inc., and Craftbilt Co. For 3M, the banked emissions listed in the 
Philadelphia 15% plan contradicts information submitted to EPA via the 
reasonably available control technology (RACT) requirements under 
section 182(b) of the Act. In the 3M RACT proposal, the Company has 
requested that 641.7 tons of VOC per year be banked. Even if 260 
working days were used to determine the ton per day emissions for this 
facility, there are still only banked emissions available at 2.47 tons 
per day rather than the 4.24 tons per day listed in the 15% plan for 
this facility. Compared with the facility specific data provided within 
the Philadelphia 15% plan, the 3M VOC emissions appear to be slightly 
over estimated in the summary list in Table 6.3 of the 15% plan (4.06 
TPD versus 4.24 TPD). At PA DEP's request, EPA has already federally 
approved 1990 VOC (and NOx) emissions for selected emission units at 
the United States Steel--Fairless (USX) facility (April 9, 1996, 61 FR 
15709). Therefore, PA DEP must ensure that the emission reduction 
credits claimed for USX in the Philadelphia 15% plan are consistent 
with the federally approved SIP pertaining to USX. This requires that 
emissions information on an emission unit basis must be provided for 
the USX--Fairless facility clearly indicating which units are providing 
the emission credit in the 15% plan. Pennsylvania must reconcile all 
inconsistencies between and within the 1990 emission inventory and the 
15% plan in order for EPA to approve the 1990 emission inventory. 
Pennsylvania must ensure that any shutdown emissions applied toward the 
required 15% emission reduction may not subsequently be used by the 
Company or the Commonwealth for other purposes. Today's rulemaking 
action does not supersede any 1990

[[Page 11136]]

emission inventory figures previously approved by EPA in source-
specific rulemakings.
Federal Reformulated Gasoline
    Section 211(k) of the Act requires that, beginning January 1, 1995, 
only reformulated gasoline be sold or dispensed in ozone nonattainment 
areas classified as severe or extreme. 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. Pennsylvania claims a VOC emission 
reduction of 26.48 tons per day from this measure. EPA has determined 
that this is a creditable emission reduction toward the 15% 
requirement.
Reformulated Gasoline--Nonroad
    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. 
Pennsylvania claims a VOC emission reduction of 0.59 tons per day from 
this measure. EPA has determined that this is a creditable emission 
reduction toward the 15% requirement.
Stage II Vapor Recovery
    EPA approved Pennsylvania's Stage II vapor recovery regulation on 
December 13, 1994 (60 FR 63938). This final approval followed a limited 
approval/limited disapproval rulemaking action that was published in 
the Federal Register on June 13, 1994 (59 FR 30302). The federally 
approved Stage II regulation requires the use of vapor recovery nozzles 
at gas stations through a phased compliance schedule but the last group 
of stations (pumping less than 100,000 gallons of gasoline per month) 
were required to comply with this requirement by no later than February 
8, 1994 in all moderate and above ozone nonattainment areas. 
Pennsylvania claims a 17.02 tons per day VOC emission credit from the 
implementation of this regulation in the 5-county Philadelphia area. 
EPA has determined that this credit to be reasonable and acceptable.
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 percent 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 1.0 tons/day from this post-1990 
Federal Motor Vehicle Control Program. Although Pennsylvania has not 
provided EPA with all the documentation necessary to verify this 
emission reduction credit, EPA has no reason to believe that 
Pennsylvania's methodology is inaccurate. Therefore, EPA is proposing 
to accept the emission reduction credit claimed for this measure.
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 percent 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 
where 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 
Sec. 182(b)(1), 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 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. EPA 
published the final conditional interim approval of the Pennsylvania I/
M program on January 28, 1997 (62 FR 4004).
    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.
    In the case of Philadelphia, the Pennsylvania program has submitted 
a 15% SIP that would achieve the amount of reductions needed from I/M 
by November 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 Philadelphia that includes 
control measures that are creditable toward the 15% plan. Emission 
reductions in the Philadelphia nonattainment area resulting from the 
implementation of the RFG, Stage II, and from implementation of FMVCP--
Tier I have already occurred. EPA believes that this SIP contains all 
measures, including enhanced 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 Philadelphia severe 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 
Philadelphia area, as a severe ozone nonattainment area that is 
required to implement a large number of control measures, there is no 
combination of additional control measures that can be implemented 
prior to the end of 1997

[[Page 11137]]

that would achieve the emission reductions equivalent to I/M. The 
Commonwealth has recently concluded the Southeast 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 Philadelphia nonattainment area in order to reach 
attainment of the ozone national ambient air quality standard. The 
stakeholders final report and recommendation to the Governor was 
released on January 16, 1997. For the Philadelphia 15% plan, the 
Commonwealth has chosen to implement the I/M program in the 
Philadelphia nonattainment area, which is expected to produce a 49.74 
ton per day emission reduction beginning in late 1997. The details of 
this analysis are contained in the accompanying TSD.

  Summary of Creditable Emission Reductions for the Philadelphia Ozone  
                           Nonattainment Area                           
                               [Tons/day]                               
------------------------------------------------------------------------
                                                                        
------------------------------------------------------------------------
Required Reduction for the Philadelphia area...................   123.64
Creditable Reductions:                                                  
    Shutdown credits 1.........................................     3.40
    AIM Coatings Rules.........................................     7.28
    Consumer/Commercial Products...............................     6.58
    TSDF Controls..............................................     9.35
    Autobody refinishing.......................................     6.30
    Stage II vapor recovery....................................    17.02
    Federal Reformulated gasoline..............................    26.48
    Reformulated gasoline--nonroad.............................     0.59
    FMVCP (Tier I).............................................     1.08
    Inspection and Maintenance (I/M)...........................    49.74
                                                                --------
      Total....................................................   127.82
------------------------------------------------------------------------
\1\ The emission reductions from this program have not been             
  substantiated by Pennsylvania.                                        

III. Proposed Action

    The EPA has evaluated this submittal for consistency with the Clean 
Air Act, applicable EPA regulations, and EPA policy. On its face, this 
RFP plan for Philadelphia 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 has determined that the submittal for Philadelphia 
contains enough of the required structure to warrant proposing 
conditional interim 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% reasonable further progress plan 
or section 182(a)(1) of the Act regarding emission inventories. Since 
the September 1996 Philadelphia 15% plan submittal supersedes the 
previous 15% plan submittal, EPA is withdrawing its July 10, 1996 
proposed disapproval of the Philadelphia 15% plan and is, instead, 
proposing conditional interim approval of the plan that was submitted 
on September 12, 1996.
    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 interim 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 the technical 
support document.);
    (3) Provide additional documentation for the emissions for those 
sources categories where credit is claimed (shutdowns, TSDFs);
    (4) Provide a written commitment to remodel and submit the enhanced 
I/M program as implemented in the Philadelphia nonattainment area in 
accordance with EPA guidance (December 23, 1996 memo entitled 
``Modeling 15% VOC Reductions from I/M in 1999--Supplemental Guidance); 
and
    (5) Fulfill the conditions listed in the enhanced I/M SIP 
rulemaking notice (proposed October 3, 1996, 61 FR 51638; final January 
28, 1997, 62 FR 4004).
    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 
Philadelphia 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 (although documentation for the amount of shutdown credit is). 
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 September 1996 
submittal in order to resolve all the issues necessary to fully approve 
the Philadelphia 15% plan. Pennsylvania is aware of the deficiencies 
cited above and is currently working to amend the Philadelphia 15% plan 
to address the above-named deficiencies. While these deficiencies 
currently remain, EPA believes that all issues will be resolved no 
later than 12 months after EPA's final conditional interim approval of 
the Philadelphia 15% plan. EPA will consider all information submitted 
as a supplement or amendment to the September 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 Philadelphia 15% plan and the Philadelphia 
1990 base year emissions inventory, including its amendments, for 
compliance with the requirements of the 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 SIP. Each request for revision to the SIP 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 interim approval action for the 
Pennsylvania

[[Page 11138]]

15% plan and the 1990 VOC emission inventory for Philadelphia 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 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.
    The Regional Administrator's decision to approve or disapprove the 
SIP revision pertaining to the Philadelphia 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 regulations, Reporting and recordkeeping, Ozone, 
Volatile organic compounds.

    Dated: February 28, 1997.
Stanley Laskowski,
Acting Regional Administrator.
[FR Doc. 97-6019 Filed 3-10-97; 8:45 am]
BILLING CODE 6560-50-P