[Federal Register Volume 62, Number 83 (Wednesday, April 30, 1997)]
[Proposed Rules]
[Pages 23410-23420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-11125]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region II Docket No. NJ28-1-168, FRL-5816-8]


Approval and Promulgation of Implementation Plans; New Jersey 15 
Percent Rate of Progress Plan and Phase I and II Ozone Implementation 
Plans

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing action 
on a State Implementation Plan (SIP) revision submitted by New Jersey 
which is intended to meet several Clean Air Act requirements. EPA is 
proposing approval of revisions to the 1990 base year ozone emission 
inventory; the 1996 and 1999 ozone projection emission inventories; 
photochemical assessment monitoring stations network; demonstration 
that emissions from growth in vehicle miles traveled will not increase 
motor vehicle emissions and, therefore, offsetting measures are not 
necessary; modeling efforts completed to date; transportation 
conformity budgets; and enforceable commitments. EPA is also proposing 
conditional interim approval of New Jersey's 15 Percent Rate of 
Progress Plan and the 9 Percent Reasonable Further Progress Plan. The 
intended effect of this action is to approve programs required by the 
Clean Air Act which will result in emission reductions that will help 
achieve attainment of the national ambient air quality standard (NAAQS) 
for ozone.

DATES: Comments must be received on or before May 30, 1997.

ADDRESSES: All comments should be addressed to: Ronald Borsellino, 
Chief, Air Programs Branch, Environmental Protection Agency, Region II 
Office, 290 Broadway, 25th Floor, New York, New York 10007-1866.
    Copies of the New Jersey submittals and EPA's Technical Support 
Document are available at the following addresses for inspection during 
normal business hours:

Environmental Protection Agency, Region II Office, Air Programs Branch, 
290 Broadway, 25th Floor, New York, New York 10007-1866

      and

New Jersey Department of Environmental Protection, Office of Air 
Quality Management, Bureau of Air Quality Planning, 401 East State 
Street, CN418, Trenton, New Jersey 08625

FOR FURTHER INFORMATION CONTACT: Paul R. Truchan, Air Programs Branch, 
Environmental Protection Agency, 290 Broadway, 25th Floor, New York, 
New York 10007-1866, (212) 637-4249

SUPPLEMENTARY INFORMATION:

I. Introduction/Background

    Section 182 of the Clean Air Act (Act) specifies the required State 
Implementation Plan (SIP) submissions and requirements for areas 
classified as nonattainment for ozone and when these submissions and 
requirements are to be submitted to EPA by the states. EPA has issued 
the ``General Preamble for the Implementation of Title I of the Clean 
Air Act Amendments of 1990'' (General Preamble) describing EPA's 
preliminary views on how EPA intends to review SIPs and SIP revisions 
submitted under Title I of the Act, [see generally 57 FR 13498 (April 
16, 1992) and 57 FR 18070 (April 28, 1992)]. Because EPA is describing 
its interpretations here only in broad terms, the reader should refer 
to the General Preamble for a more detailed discussion of the 
interpretations of Title I advanced in today's proposal and the 
supporting rationale.
    New Jersey is divided into four ozone nonattainment areas: one 
classified as marginal--the Allentown Bethlehem

[[Page 23411]]

Easton Area; one classified as moderate--the Atlantic City Area; and 
two classified as severe--the New York, Northern New Jersey, Long 
Island Area, and the Philadelphia, Wilmington, Trenton Area. New Jersey 
has met the requirements of the Act for the marginal area and EPA has 
determined that this area has attained the ozone standard (October 6, 
1994, 59 FR 50848). For the moderate Atlantic City Area, EPA has found 
that air quality data indicates that this area has attained the 
standard and that a 15 Percent Rate of Progress (ROP) Plan and an 
attainment demonstration are not needed. EPA will be publishing a 
separate Federal Register document for the Atlantic City Area which 
will discuss the ozone air quality data and implications and waive the 
15 Percent ROP Plan requirement. This finding is contingent on New 
Jersey continuing to conduct air quality monitoring and that this data 
continues to demonstrate attainment. It should be noted that should the 
Atlantic City area monitor a violation of the standard prior to being 
redesignated to attainment, the area would have to address all 
pertinent Act requirements including a new 15 Percent ROP Plan and the 
State would have to submit them as a SIP revision.
    The two severe nonattainment areas are the primary subject of this 
Federal Register action.

II. State Submittal

    On December 31, 1996, Commissioner Shinn of the New Jersey 
Department of Environmental Protection (NJDEP) submitted to EPA a major 
revision to the SIP to meet requirements related to attainment of the 
national ambient air quality standards (NAAQS) for ozone. This was 
supplemented on February 25, 1997. These submittals address the 
requirements for the two severe ozone nonattainment areas--the New 
York, Northern New Jersey, Long Island Area, and the Philadelphia, 
Wilmington, Trenton Area. For the purposes of this action these areas 
will be referred to as, respectively, the Northern New Jersey ozone 
nonattainment area (NAA) and the Trenton NAA. New Jersey's two 
submittals revised the previously submitted 15 Percent ROP Plan dated 
November 15, 1993. In addition, these revisions are intended to fulfill 
EPA's Phase I requirement (``Ozone Attainment Demonstrations,'' March 
2, 1995 memo from Mary Nichols) and includes the following: revisions 
of the 1990 base year ozone emission inventory; the 1996 and 1999 ozone 
projection emission inventories; 9 Percent Reasonable Further Progress 
(RFP) Plan; contingency measures; photochemical assessment monitoring 
stations network; demonstration that emissions from growth in vehicle 
miles traveled will not increase motor vehicle emissions and, 
therefore, offsetting measures are not necessary; modeling efforts 
completed to date; enforceable commitments for Phase II; and 
transportation conformity budgets. EPA will be acting on the 
contingency measures in a separate Federal Register document.

III. Clean Air Act Requirements

A. Phase I Elements

1. Revisions to the 1990 Base Year Emissions Inventory
    Sections 172(c)(3) and 182(b)(1) of the Act require that SIP 
revisions for 15 Percent ROP and 9 Percent RFP Plans include 
comprehensive, accurate, current inventories of actual emissions from 
all sources of relevant pollutants in the nonattainment area. Because 
the approval of such inventories is necessary for an area's 15 Percent 
ROP Plan and the Attainment Demonstration, the emissions inventory must 
be approved prior to or with the 15 Percent ROP Plan submission.
    EPA previously approved New Jersey's 1990 base year inventory on 
October 2, 1995 (60 FR 51351). In the Phase I SIP submittal, which 
includes the 15 and 9 Percent plans, New Jersey has made minor 
revisions to the approved 1990 base year emission inventory. These 
revisions are summarized below. The reader is referred to the Technical 
Support Document for additional details.
    The major point source inventory was revised to reflect changes due 
to more accurate information collected from major oxides of nitrogen 
(NOX) emitters in New Jersey as part of the Ozone Transport 
Commission NOX Baseline Project and further quality 
assurance of New Jersey's emissions data. The highway mobile source 
inventory was revised to reflect different methodology used to 
calculate highway mobile source emissions. New Jersey originally used 
the Highway Performance Monitoring System (HPMS) to estimate vehicle 
miles traveled (VMT), but now uses the more comprehensive, 
Transportation Demand Model. There were no changes to the minor point 
sources, area sources, off-highway mobile sources, and biogenic sources 
portion of the emission inventory.
    Tables 1A and 1B contain the revised 1990 base year volatile 
organic compounds (VOC), NOX, and carbon monoxide (CO) 
emission inventories for the Northern New Jersey and Trenton NAAs:

  Table 1A.--Northern New Jersey NAA, 1990 Base Year, 1996 and 1999 Projection Year Inventories; Ozone Seasonal 
                                      VOC, NOX, and CO Emissions (tons/day)                                     
----------------------------------------------------------------------------------------------------------------
                                                                Highway    Off-highway                          
      Pollutant        Major point  Minor point      Area        mobile       mobile      Biogenic      Total   
                          sources      sources     sources      sources      sources      sources               
----------------------------------------------------------------------------------------------------------------
                    Revised 1990 Base Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                   
----------------------------------------------------------------------------------------------------------------
VOC..................          238          164          123          297          137          210        b 959
NOX..................          486           44            9          332          141          N/A         1012
CO...................           73            8           33         2371          974          N/A         3459
----------------------------------------------------------------------------------------------------------------
                     1996 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                    
----------------------------------------------------------------------------------------------------------------
VOC..................         a212          163          125          247          140          N/A          887
NOX..................          459           42            9          305          143          N/A          958
CO...................           69            7           33         1812          993          N/A         2914
----------------------------------------------------------------------------------------------------------------
                     1999 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                    
----------------------------------------------------------------------------------------------------------------
VOC..................         a216          167          126          241          141          N/A          891
NOX..................          482           43            9          301          144          N/A          979

[[Page 23412]]

                                                                                                                
CO...................           72            8           34         1662         1002          N/A         2778
----------------------------------------------------------------------------------------------------------------
 N/A = not applicable                                                                                           
a With 1993 rule effectiveness factors applied.                                                                 
b Rate of Progress base year emission inventory (without biogenic source emissions).                            
                                                                                                                
 Note: Numbers in a table are rounded to nearest whole number.                                                  


 Table 1B.--Trenton NAA, 1990 Base Year, 1996 and 1999 Projection Year Inventories Ozone Seasonal VOC, NOX, and 
                                             CO Emissions (tons/day)                                            
----------------------------------------------------------------------------------------------------------------
                                                                Highway    Off-highway                          
      Pollutant        Major point  Minor point      Area        mobile       mobile      Biogenic      Total   
                         sources      sources      sources      sources      sources      sources               
----------------------------------------------------------------------------------------------------------------
                    Revised 1990 Base Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                   
----------------------------------------------------------------------------------------------------------------
VOC..................          112           61           37          103           46          203        b 359
NOX..................          278            9            3          115           41          N/A          446
CO...................           55            1           14          686          314          N/A         1070
----------------------------------------------------------------------------------------------------------------
                     1996 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                    
----------------------------------------------------------------------------------------------------------------
VOC..................         a 86           61           39           89           48          N/A          323
NOX..................          264            8            3          105           43          N/A          423
CO...................           53            1           14          575          330          N/A          973
----------------------------------------------------------------------------------------------------------------
                     1999 Projection Year Ozone Season VOC, NOX, and CO Emissions (tons/day)                    
----------------------------------------------------------------------------------------------------------------
VOC..................         a 88           63           40           89           49          N/A          329
NOX..................          276            9            3          104           44          N/A          436
CO...................           54            1           15          543          338          N/A          951
----------------------------------------------------------------------------------------------------------------
a With 1993 rule effectiveness factors applied.                                                                 
b Rate of Progress base year emission inventory (without biogenic source emissions).                            
                                                                                                                
  Note: Numbers in a table are rounded to nearest whole number.                                                 

    The revisions have been made in accordance with EPA guidance. 
Therefore, EPA is proposing to approve the revisions to the 1990 base 
year VOC, NOX, and CO emission inventories for the Northern 
New Jersey and Trenton ozone NAAs.
2. 1996 Projection Year Inventory
    A projection of 1996 man-made emissions is required to determine 
the reductions needed for the 15 Percent ROP Plan. The 1996 projection 
year emission inventory is calculated by multiplying the 1990 ROP base 
year inventory by factors which estimate growth from 1990 to 1996. A 
specific growth factor for each source type in the inventory is 
required since sources typically grow at different rates.
    The difference between the 1990 ROP base year inventory estimates 
and the 1996 emissions projection is the emissions growth estimate. 
Total 1996 growth for the four source categories including the 
emissions offsets is estimated to be a reduction of 72 tons per day 
(tpd) in the Northern New Jersey NAA and a reduction of 36 tpd in the 
Trenton NAA. In addition, the 1996 projection year inventory reflects 
1993 rule effectiveness factors. The reader is referred to the 
technical support document for further details.
    Projection Methodology. Major Point Sources. For the major point 
source category, New Jersey projected emissions to 1996 using value 
added data available at the two-digit Standard Industrial 
Classification (SIC) Code level from 1984 to 1991. For the years 1987 
to 1991, value added data showed a sharp decline. In extrapolating to 
determine the 1996 value added, New Jersey constrained these growth 
rates at a 1.0 percent decline each year rather than the larger 
predicted decline to prevent any significant under-prediction of the 
1996 emissions. For cases where value added data were not available, 
New Jersey used a State average to project emissions for those 
remaining SIC codes.
    Since value added is one of the preferred growth indicators to use, 
as outlined in EPA's ``Procedures for Preparing Emissions 
Projections,'' July 1991, EPA finds New Jersey's 1996 major point 
source projection methodology to be acceptable.
    Minor Point Sources. For the minor point source category, New 
Jersey projected emissions to 1996 using value added data available at 
the two-digit SIC Code level for all categories with the following 
exceptions. For traffic paints, New Jersey used 1996 lane mile growth 
rates. For gasoline handling categories (such as gasoline unloading, 
gasoline tank breathing, gasoline refueling, gasoline transit by rail 
car, and gasoline transit by truck), New Jersey used daily VMT growth 
rates to project emissions to 1996.
    Since value added is one of the preferred growth indicators, EPA 
finds New Jersey's 1996 minor point source projection methodology to be 
acceptable. The methods used for the exceptions above are also 
acceptable.
    Area Sources. For the area source category, New Jersey projected 
emissions to 1996 using population growth rates. This is in accordance 
with EPA's recommended growth indicators for projecting emissions for 
area source categories outlined in ``Procedures for

[[Page 23413]]

Preparing Emissions Projections,'' July 1991. EPA finds New Jersey's 
area source projection methodology to be acceptable.
    Highway Mobile Sources. For the highway mobile source category, New 
Jersey projected emissions to 1996 using VMT growth rates. New Jersey 
used zonal transportation demand models to model VMT. EPA finds New 
Jersey's methodology for projecting highway mobile sources to be 
acceptable.
    Off-highway Mobile Sources. For the off-highway mobile source 
category, New Jersey projected emissions using population growth rates 
for all subcategories with one exception, the aircraft category. For 
the aircraft category, emissions were projected to 1996 using landing 
and takeoff operations. EPA finds New Jersey's methodology for 
projecting off-highway mobile sources to be acceptable.
    Tables 1A and 1B show the 1996 and 1999 projected emissions using 
the above-mentioned growth indicators/methodologies. States are 
required to account for banked emission offsets which will be used 
during the period covered by the 15 Percent ROP Plan. New Jersey did 
this and accounted for 5 tpd of pre-1990 emissions offsets in the 
Northern New Jersey NAA and 3 tpd of pre-1990 emissions offsets in the 
Trenton NAA.
    The 1996 projection year emission inventories were calculated in 
accordance with EPA guidance. Therefore, EPA is proposing to approve 
the 1996 projection year VOC, NOx, and CO emission inventories for the 
Northern New Jersey and Trenton ozone NAAs.
3. 1999 Projection Year Inventory
    A projection of 1999 man-made emissions is required for the 9 
Percent RFP calculation. The calculation is made by multiplying the 
1996 projection year inventory by factors which estimate growth from 
1996 to 1999. A specific growth factor for each source type in the 
inventory is required since sources typically grow at different rates.
    The difference between the 1996 projection year inventory and the 
1999 emissions projection is the emissions growth estimate. Total 
growth for the four source categories is estimated at 5 tpd in the 
Northern New Jersey NAA and 5 tpd in the Trenton NAA. In addition, the 
1999 projection year inventory reflects 1993 rule effectiveness 
factors. The reader is referred to the technical support document for 
further details.
    Projection Methodology. Major Point Sources. For the major point 
source category, New Jersey projected emissions from 1996 to 1999 using 
historical and projected data for the years 1973, 1979, 1983, 1988, and 
every fifth year from 1995 to 2040. These data were obtained from the 
United States Department of Commerce, Bureau of Economic Analysis 
(earnings data). The data for the relevant years, i.e., 1996 and 1999, 
were obtained by interpolating between the two closest years.
    Since the use of earnings data is one of the preferred growth 
indicators, as outlined in EPA's ``Procedures for Preparing Emissions 
Projections,'' July 1991, EPA finds New Jersey's 1999 major point 
source projection methodology to be acceptable.
    Minor Point Sources. For the minor point source category, New 
Jersey projected emissions to 1999 using earnings data available at the 
two-digit SIC code level for all categories with two exceptions, 
traffic paint and gasoline handling. Since the use of earnings data is 
one of the preferred growth indicators, EPA finds New Jersey's 1999 
minor point source projection methodology to be acceptable.
    Unlike 1996, for which New Jersey used lane miles as a growth 
indicator for traffic paints, New Jersey did not project any growth in 
traffic paint emissions to 1999 since there were no projected lane mile 
data available for 1999. For gasoline handling categories (such as 
gasoline unloading, gasoline tank breathing, gasoline refueling, 
gasoline transit by rail car, and gasoline transit by truck), as done 
for 1996, New Jersey used daily VMT growth rates to project emissions 
to 1999. These approaches are also acceptable.
    Area Sources. The 1996 area source projection methodology was also 
used for 1999 projections and is therefore, acceptable.
    Highway Mobile Sources. The 1996 highway mobile source projection 
methodology was also used for 1999 projections and is therefore, 
acceptable.
    Off-highway Mobile Sources. The 1996 off-highway projection 
methodology was also used for 1999 projections and is therefore, 
acceptable.
    The 1999 projection year emission inventories have been calculated 
in accordance with EPA guidance. Therefore, EPA is proposing to approve 
the 1999 projection year VOC, NOX, and CO emission 
inventories for the Northern New Jersey and Trenton ozone NAAs.
4. 15 Percent Rate of Progress Plan
    Section 182(b)(1) of the Act as amended in 1990 requires ozone 
nonattainment areas with classifications of moderate and above to 
develop plans to reduce area-wide VOC emissions by 15 percent from a 
1990 adjusted baseline. The plans were to be submitted by November 15, 
1993 and the reductions were required to be achieved within six years 
of enactment or by November 15, 1996. The Act also sets limitations on 
the creditability of certain types of reductions. Specifically, states 
cannot take credit for reductions achieved by Federal Motor Vehicle 
Control Program (FMVCP) measures (new car emissions standards) 
promulgated prior to 1990 and Reid Vapor Pressure (RVP) programs 
promulgated prior to 1990. Furthermore, the Act does not allow credit 
for corrections to vehicle Inspection and Maintenance Programs (I/M) or 
corrections to reasonably available control technology (RACT) rules 
(RACT fix-ups) that were required to have been made to meet 
requirements in effect prior to 1990.
    The target emission reductions were calculated in accordance with 
EPA guidance. The reader is referred to ``Guidance On The Adjusted Base 
Year Emissions Inventory and The 1996 Target For The 15 Percent Rate of 
Progress Plans,'' (EPA-452/R-92-005). New Jersey's 15 Percent ROP Plan 
is summarized in Table 2.
    The reader should note that the differences in VOC emissions 
between 1990 and 1996 as depicted in Tables 1A and 1B are not the same 
as the emission reductions for the same time period depicted in Table 
2, Summary of 15 Percent ROP Plan. This is because the emissions 
changes between 1990 and 1996 have been adjusted for purposes of the 15 
Percent ROP Plan to eliminate emission changes not creditable according 
to the Act. These adjustments are explained in detail in the previously 
referenced guidance.

[[Page 23414]]



                Table 2.--Summary of 15 Percent ROP Plan                
------------------------------------------------------------------------
                                           Northern New                 
                                          Jersey NAA VOC    Trenton NAA 
                                            (tons/day)    VOC (tons/day)
------------------------------------------------------------------------
Required VOC reductions to meet 15                                      
 Percent Plan...........................          129.82           37.18
Creditable reductions                                                   
Mobile source control measures:                                         
    Tier I vehicles.....................            1.96            0.73
    Reformulated gasoline--on highway...           47.99           17.51
    Reformulated gasoline--off highway..            4.32            1.33
    Enhanced inspection & maintenance...           33.08           11.91
Stationary source control measures:                                     
    Barge loading.......................           21.08            1.21
    Subchapter 16--VOC RACT.............           16.34            3.75
    Consumer products rule--Subchapter                                  
     23.................................            5.93            1.79
    Federal HON rule....................            0.12            0.06
        Total VOC reductions............          130.82           38.28
Surplus.................................            1.00            1.10
------------------------------------------------------------------------
Reductions not credited in today's                                      
 action                                                                 
Employer trip reduction and                                             
 transportation control measures........            2.36            0.64
------------------------------------------------------------------------

    Measures Achieving the Projected Reductions. New Jersey has 
provided a plan to achieve the reductions required for the two 
nonattainment areas. The following is a concise description of each 
control measure New Jersey used to achieve emission reduction credit 
within its 15 Percent ROP Plan. All the State measures have been 
adopted and submitted as SIP revisions. EPA has previously approved 
some of the control measures, others EPA has proposed action upon, 
including the enhanced vehicle I/M program. EPA agrees with the 
emission reductions projected in the State submittal except where noted 
in Table 2 under the heading ``Reductions not credited in today's 
action.''
    Mobile source control measures. Tier I Federal Motor Vehicle 
Control Program (FMVCP). EPA promulgated standards for 1994 and later 
model year light-duty vehicles and light-duty trucks (56 FR 25724, June 
5, 1991). Since the standards were adopted after the Clean Air Act 
Amendments of 1990, the resulting emission reductions are creditable 
toward the 15 percent reduction goal. EPA agrees with the emission 
reductions calculated by the State due to the FMVCP.
    Reformulated Gasoline. Section 211(k) of the Act requires that 
after January 1, 1995 in severe and above ozone nonattainment areas, 
only reformulated gasoline be sold or dispensed. This gasoline is 
reformulated to burn cleaner and produce fewer evaporative emissions. 
On December 6, 1991 the State requested that the entire State of New 
Jersey participate in the reformulated gasoline program. EPA's approval 
of this request was published in the Federal Register on March 26, 
1991, 57 FR 11077. EPA agrees with the emission reductions calculated 
by the State due to the sale of reformulated gasoline for both on-road 
and off-road use.
    Enhanced I/M. On October 31, 1996 (61 FR 56172), EPA proposed a 
conditional interim approval of New Jersey's enhanced I/M program 
submittal.
    The reader is referred to that proposal for the details on the 
enhanced I/M program and EPA's findings. That notice called for the 
State to commit within 30 days to correct the major deficiencies in the 
submittal by specific dates. EPA identified two major deficiencies and 
dates by which the State was to address them: (1) Test procedures, 
standards, and equipment specifications which were to be submitted by 
January 31, 1997, and (2) program performance modeling which is to be 
submitted within one year after conditional interim approval. On 
November 27, 1996, New Jersey committed to submit test procedures and 
equipment specifications by the date specified and program modeling by 
October 30, 1997. The equipment information was received as scheduled 
and is currently under review. In a separate action, EPA will be 
publishing conditional interim approval of the enhanced I/M program.
    New Jersey's 15 Percent ROP Plan includes I/M modeling to provide 
estimates for the level of reduction expected from the program (see 
Table 2). However, New Jersey's modeling was completed prior to and is 
not consistent with, EPA's final guidance on the methodology to be used 
for making these calculations (December 23, 1996 memo entitled 
``Modeling 15% VOC Reductions from I/M in 1999--Supplemental Guidance). 
Therefore, the State must commit within 30 days of the publication of 
this document to submit, within 12 months of the final conditional 
interim approval of the 15 Percent ROP and the 9 Percent RFP Plans, 
recalculated emission reduction benefits attributable to the I/M 
program for both the 15 Percent ROP Plan and the 9 Percent RFP Plan. 
This recalculation must take into account actual I/M program conditions 
as they are scheduled to occur, including, but not limited to, program 
start date, cut points, and test type. Also, New Jersey must still 
fulfill the condition in the October 31, 1996 Federal Register document 
to perform modeling in order to determine if the I/M program meets the 
enhanced performance standard. The State has committed to submit the 
performance standard modeling by October 30, 1997.
    By today's action, EPA proposes to approve emission credits for the 
15 Percent ROP and 9 Percent RFP Plans on an interim basis, pending 
verification of the I/M Program's performance, pursuant to section 348 
of the NHSDA. This interim approval of the 15 Percent ROP and the 9 
Percent RFP Plans will expire at the end of the 18 month period, and 
will be replaced by appropriate EPA action based on the evaluation EPA 
receives concerning the Program's performance. If the evaluation 
indicates a shortfall in emission reductions compared to the remodeling 
that the 15 Percent ROP and 9 Percent RFP Plans is conditioned on, the 
State would need to find additional emission credits. Failure of the 
State to make up for an emission shortfall from the enhanced I/M 
program may subject the

[[Page 23415]]

State to sanctions and imposition of a Federal Implementation Plan.
    In addition, in a separate document, EPA is taking both a limited 
conditional approval of the New Jersey enhanced I/M program under 
section 110 which strengthens the SIP, as well as an interim 
conditional approval under section 348 of the NHDSA. The limited 
approval of the enhanced I/M program will not expire at the time the 
interim approval of the 15 Percent ROP and 9 Percent RFP plans and the 
interim approval of the enhanced I/M program under the NHSDA expire. As 
explained above, the credits provided by the I/M program on an interim 
basis for those plans may be adjusted based on EPA's evaluation of the 
I/M Program's performance.
    Enhanced I/M ``as soon as practicable''. Section 182(b)(1) of the 
Act requires that states containing ozone nonattainment areas 
classified as moderate or above prepare SIPs that provide for a 15 
percent VOC emissions reduction by November 15, 1996. Most of the 15 
Percent ROP Plans originally submitted to EPA contained enhanced I/M 
programs because this program achieves more VOC emission reductions 
than most, if not all other, control strategies. However, many states 
became concerned over the cost and convenience of the enhanced I/M 
program as they were originally envisioned.
    In a response to these concerns in September 1995, EPA finalized 
revisions to its enhanced I/M rule allowing states significant 
flexibility in designing I/M programs appropriate for their needs. 
Subsequently, Congress enacted the 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 redesign enhanced I/
M programs, in accordance with the guidance contained within the NHSDA, 
and set up the infrastructure to perform the testing program has 
precluded states that revised 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 percent VOC emissions reduction required under 
section 182(b)(1), and the recent NHSDA and regulatory changes 
regarding enhanced I/M programs, EPA recognized that it was no longer 
possible for many states to achieve the portion of the 15 percent 
reductions that are attributed to I/M by November 15, 1996. Under these 
circumstances, disapproval of the 15 Percent ROP Plans would serve no 
purpose. Consequently, under certain circumstances, EPA will propose to 
allow states that pursue redesign of enhanced I/M programs to receive 
emission reduction credit from these programs within their 15 Percent 
ROP Plans, even though the emissions reductions from the I/M program 
will occur after November 15, 1996.
    Specifically, EPA can propose approval of 15 Percent ROP Plans if 
the emissions reductions from the revised, enhanced I/M programs, as 
well as from the other 15 Percent ROP Plan measures, will achieve the 
15 percent 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 percent level is achieved. EPA does not 
believe that measures meaningfully accelerate the 15 percent date if 
they provide only an insignificant amount of reductions.
    In the case of New Jersey, the State has submitted a 15 Percent ROP 
Plan that would achieve the amount of reductions needed from I/M by 
November 15, 1999. New Jersey has submitted a 15 Percent ROP Plan that 
achieves all other reductions by 1996. In addition, EPA is pursuing 
federal rulemaking on a national scope which will result in additional 
emission reductions. EPA proposes to determine that this SIP does 
contain all measures, including enhanced I/M, that achieves the 
required reductions as soon as practicable.
    EPA has examined other potentially available SIP measures to 
determine if they are practicable for New Jersey and if they would 
meaningfully accelerate the date by which the area reaches the 15 
percent level of reductions. In most cases New Jersey has already 
adopted and implemented stationary control measures that other states 
are considering or which other states have included in their 15 Percent 
ROP Plans. EPA proposes to determine that the SIP does contain the 
appropriate measures.
    Stationary source measures. Barge loading. New Jersey has adopted a 
VOC control regulation for the loading of marine vessels with gasoline. 
The State submitted an adopted revision to Subchapter 16 ``Control and 
Prohibition of Air Pollution by Volatile Organic Substances'' which 
regulates the loading of gasoline into marine vessels to EPA on June 
20, 1990. On November 10, 1992, EPA published a final rulemaking (57 FR 
53440) approving the rule as a revision to the SIP. EPA agrees with the 
reductions projected in the New Jersey 15 Percent ROP Plan due to the 
implementation of this rule.
    Subchapter 16--VOC RACT. New Jersey has submitted adopted revisions 
to Subchapter 16 ``Control and Prohibition of Air Pollution by Volatile 
Organic Compounds'' which regulates major sources not covered in EPA 
issued control techniques guidelines (CTG) documents. This is referred 
to as ``non-CTG major sources.'' It also regulates sources for which 
EPA has published CTGs since 1990. On April 11, 1997 (62 FR 17766), EPA 
published a proposal approving the rule as a revision to the SIP. EPA 
agrees with the reductions projected in the New Jersey 15-Percent ROP 
Plan due to the implementation of this rule.
    Consumer Products rule--Subchapter 24. New Jersey has adopted a VOC 
control regulation limiting the VOC content of designated consumer and 
commercial products. The State submitted an adopted revision to 
Subchapter 24 ``Control and Prohibition of Volatile Organic Compounds 
from Consumer and Commercial Products'' to EPA on January 25, 1996. On 
January 21, 1997 (62 FR 2984), EPA published a proposal approving the 
rule as a revision to the SIP. EPA received no comments on this 
proposal and is preparing a notice announcing its final action. EPA 
agrees with the reductions projected in the New Jersey 15 Percent ROP 
Plan due to the implementation of this rule.
    Federal HON rule. On April 22, 1994 EPA promulgated Part 63, 
Subpart H--National Emission Standards for Organic Hazardous Air 
Pollutants for Equipment Leaks. This requires facilities which 
manufacture or process organic hazardous air pollutants to develop and 
implement a program for leak detection and repair. EPA agrees with the 
reductions projected in the New Jersey 15 Percent ROP Plan due to the 
implementation of this rule.
    Measures Not Creditable in Today's Action. Employer Trip Reduction 
and Transportation Control Measures. On November 15, 1993, New Jersey 
submitted a SIP revision for an Employer Trip Reduction program (ETR), 
as required in section 182(d)(1)(B) of the Act. EPA proposed approval 
of that program on December 6, 1994 (59 FR 62646). Subsequently, the 
State made changes to this program, but failed to submit these changes 
to EPA as a SIP revision. On December 23, 1995, Congress repealed the 
mandatory nature of the employer commute option program (which New 
Jersey calls ``ETR''), allowing states discretion to implement the 
program on a voluntary basis. On November 1, 1996, the New

[[Page 23416]]

Jersey Legislature repealed the State's mandatory ETR program.
    On October 15, 1996, EPA published direct final approval of 
revisions to New Jersey's SIP for ozone submitted by New Jersey on 
November 15, 1992 and November 15, 1993 (61 FR 53624). One of the 
intended effects of this action was to incorporate TCMs as part of New 
Jersey's effort to attain the national ambient air quality standard for 
ozone. Those TCMs included New Jersey's ETR program. On November 13, 
1996, New Jersey indicated it was in the process of amending the list 
of TCMs. Consequently, at New Jersey's request, EPA withdrew this 
approval on December 18, 1996 (61 FR 66606).
    New Jersey plans on replacing its mandatory ETR program with an 
``ETR Replacement Package,'' including TCMs and transportation 
technology measures, and has provided a schedule. While EPA 
acknowledges that the ETR program may have achieved emission reductions 
during the 1996 ozone season, the program the State implemented was not 
submitted as a SIP revision and the State did not require the employers 
to report on the results of their programs. Without this reporting, EPA 
is unable to verify the effectiveness of the program. Because of the 
uncertainties associated with both ETR and TCMs, EPA is considering the 
emissions reductions associated with ETR and TCMs to be noncreditable 
with respect to New Jersey's Phase I Ozone SIP at this time. EPA will 
take action on the State's ``ETR Replacement Package'' once it is 
submitted as a SIP revision.
    15 Percent ROP Plan Evaluation. New Jersey has identified the 
control measures necessary for achieving the required emission 
reductions and, with the exception of enhanced I/M, all the measures 
have been adopted and implemented. New Jersey may also have achieved 
emission reductions from the ETR program as part of the 15 Percent ROP 
Plan, but EPA is unable to verify the reductions. EPA is proposing to 
find that the 15 Percent ROP Plan contains the necessary measures as 
identified in Table 2 to achieve the required emission reductions. The 
Plan also satisfies the requirement of achieving these reductions ``as 
soon as practicable'' and there are no remaining measures which could 
be implemented any sooner to offset the delay in the enhanced I/M 
program. Therefore, EPA is proposing conditional interim approval of 
the 15 Percent ROP Plan.
5. The 9 Percent Reasonable Further Progress Plan (24 Percent Plan)
    Section 182(c)(2)(B) of the Act requires ozone nonattainment areas 
with classifications of serious and above to develop plans to reduce 
area-wide VOC emissions by 3 percent per year averaged over the next 
three-year period (1997-1999) from a 1990 baseline. This is referred to 
as the 9 Percent RFP Plan. The plan was to be submitted by November 15, 
1994 and the reductions are required to be achieved by November 15, 
1999. The Act also sets limitations on the creditability of certain 
types of reductions.
    The target emission reductions were calculated in accordance with 
EPA guidance. The reader is referred to ``Guidance On The Post-1996 
Rate of Progress Plan and the Attainment Demonstration,'' (EPA-452/R-
93-015). New Jersey's 9 Percent RFP Plan (New Jersey refers to this as 
its 24 Percent Plan) is summarized in Table 3.

                               Table 3.--Summary of New Jersey 9 Percent RFP Plan                               
----------------------------------------------------------------------------------------------------------------
                                                  Northern New Jersey NAA (tons/      Trenton NAA (tons/day)    
                                                               day)              -------------------------------
                                                 --------------------------------                               
                                                      VOC \1\         NOx\1\          VOC \1\         NOx\1\    
----------------------------------------------------------------------------------------------------------------
Required VOC reductions to meet 9 Percent Plan..           94.66  ..............           40.34  ..............
Creditable Reductions                                                                                           
Mobile source control measures:                                                                                 
    Tier I vehicles.............................           12.87           29.53            4.80           10.14
    Reformulated gasoline--on highway...........  ..............            0.74  ..............            0.22
    Reformulated gasoline--off highway..........            0.05  ..............            0.03  ..............
    Enhanced inspection & maintenance...........            3.77           33.70            1.58           10.81
    National low emission vehicle program.......            0.48            0.44            0.18            0.17
Stationary source control measures:                                                                             
    Barge and tanker loading....................            0.23  ..............            0.06  ..............
    Subchapter 16 & 19--RACT....................            0.17           70.92  ..............           58.21
    Federal CTG--RACT...........................            0.22  ..............            0.04  ..............
    Consumer products rule--Subchapter 24.......            0.05  ..............            0.05  ..............
                                                 ---------------------------------------------------------------
        Total reductions........................           17.84      \2\ 135.33            6.74       \2\ 79.55
Shortfall.......................................           76.82  ..............           33.60  ..............
VOC equivalents from NOX substitution...........          124.48  ..............           62.63  ..............
Surplus reduction...............................           47.66  ..............           29.03  ..............
----------------------------------------------------------------------------------------------------------------
\1\ VOC emission reductions claimed occur from 1997 through 1999. NOX emission reductions claimed occur from    
  1990 through 1999.                                                                                            
\2\ 135 tons/day of NOX converts to 124.48 tons/day of VOC equivalent in the Northern New Jersey NAA. 79.55 tons/
  day of NOX converts to 62.63 tons/day of VOC equivalent in the Trenton NAA.                                   

    Measures Achieving the Projected Reductions. New Jersey has 
provided a plan to achieve the reductions required for the two 
nonattainment areas. The following is a concise description of each 
control measure New Jersey used to achieve the emission reduction 
credit within its 9 Percent RFP Plan. All of the State's measures have 
been adopted and submitted as SIP revisions. EPA has previously 
approved some of the control measures, others EPA has proposed action 
on, including the enhanced vehicle I/M program. EPA agrees with the 
emission reductions projected in the State's submittal as they appear 
in Table 3. In addition, New Jersey has shown that NOX 
reductions will contribute toward attaining the ozone standard (See 
section B.1., Modeling discussion below). Section 182(c)(2)(C) 
therefore allows NOX reductions to be used toward meeting 
RFP requirements. Table 3 includes columns showing the VOC and 
NOX reductions that will result from the implementation of 
the control measures.
    Mobile Source Measures. Tier I Federal Motor Vehicle Control 
Program. This is the same measure as contained

[[Page 23417]]

in the 15 Percent ROP Plan except it is only taking the additional 
credit that would be generated for the years 1997-1999. EPA agrees with 
the calculated emission reductions associated with the FMVCP.
    Reformulated Gasoline. This is the same measure as contained in the 
15 Percent ROP Plan except it is only taking the additional credit that 
would be generated for the years 1997-1999. EPA agrees with the 
calculated emission reductions associated with reformulated gasoline.
    Enhanced Inspection and Maintenance. This is the same measure as 
contained in the 15 Percent ROP Plan except it is only taking the 
additional credit that would be generated for the years 1997-1999. EPA 
agrees with the calculated emission reductions associated with 
reformulated gasoline.
    National Low Emissions Vehicle Program. On October 10, 1995, EPA 
proposed a national low emission vehicle program (60 FR 52734) and is 
soon expected to sign a final rulemaking. This would provide more 
stringent tailpipe standards for cars and light-duty trucks and be a 
substitute for the Ozone Transport Commission low emission vehicle 
program. EPA agrees with the calculated emission reductions associated 
with this program.
    Stationary Source Measures. Barge and Tanker Loading. AThis is the 
same measure as contained in the 15 Percent ROP Plan except it is only 
taking the additional credit that would be generated for the years 
1997-1999. EPA agrees with the calculated emission reductions 
associated with barge and tanker controls.
    Subchapter 16. This is the same measure as contained in the 15 
Percent ROP Plan except it is only taking the additional credit that 
would be generated for the years 1997-1999. EPA agrees with the 
calculated emission reductions associated with Subchapter 16.
    Subchapter 19. New Jersey has submitted adopted revisions to 
Subchapter 19 ``Control and Prohibition of Air Pollution From Oxides of 
Nitrogen'' which regulates combustion sources that emit NOX. 
On January 27, 1997, EPA published a final rulemaking (62 FR 3804) 
approving the rule as a revision to the SIP. EPA agrees with the 
calculated emission reductions associated with Subchapter 19.
    Federal CTG--RACT. This is the same measure as contained in the 15 
Percent ROP Plan except it is only taking the additional credit that 
would be generated for the years 1997-1999. EPA agrees with the 
calculated emission reductions associated with the post-1990 CTG source 
categories included in Subchapter 16.
    Consumer Products rule--Subchapter 24. This is the same measure as 
contained in the 15 Percent ROP Plan except it is only taking the 
additional credit that would be generated for the years 1997-1999. EPA 
agrees with the calculated emission reductions associated with 
Subchapter 24.
    9 Percent RFP Plan Evaluation. New Jersey has identified the 
control measures necessary for achieving the required emission 
reductions and, with the exception of enhanced I/M, all the measures 
have been adopted and implemented. EPA is proposing to find that the 9 
Percent RFP Plan contains the necessary measures as identified in Table 
3 to achieve the required emission reductions. However, as discussed 
under the 15 Percent ROP Plan section, the State must remodel the 
effectiveness of the enhanced I/M program as it pertains to the 9 
Percent RFP Plan. Therefore, EPA is proposing conditional interim 
approval.
6. Analysis of Growth in Emissions Due to Increases in VMT
    Section 182(d)(1)(A) of the Act requires states containing ozone 
nonattainment areas classified as ``severe'' pursuant to section 181(a) 
of the Act to adopt transportation control measures and transportation 
strategies to offset growth in emissions from growth in VMT or number 
of vehicle trips, and to attain reductions in motor vehicle emissions 
(in combination with other emission requirements) as necessary to 
comply with the Act's RFP milestone and attainment requirements. The 
requirements for establishing a VMT offset program are discussed in the 
section 182(d)(1)(A) and the General Preamble.
    Section 182(d)(1)(A) requires New Jersey to offset any growth in 
emissions from growth in VMT. As discussed in the General Preamble, the 
purpose is to prevent a growth in motor vehicle emissions from 
canceling out the emission reduction benefits of the federally mandated 
programs in the Act. EPA interprets this provision to require that 
sufficient measures be adopted so that projected motor vehicle VOC 
emissions will never be higher during the ozone season in one year than 
during the ozone season in the year before. When growth in VMT and 
vehicle trips would otherwise cause a motor vehicle emissions upturn, 
this upturn must be prevented by offsetting reductions. The emissions 
level at the point of an upturn becomes a ceiling on motor vehicle 
emissions. This requirement applies to projected emissions in the years 
between the submission of the SIP revision and the attainment deadline, 
and is above and beyond the separate requirements for the RFP and the 
Attainment Demonstrations. The ceiling level is defined, therefore, up 
to the point of an upturn, as motor vehicle emissions that would occur 
in the ozone season of that year, with VMT growth, if all measures for 
that area in that year were implemented as required by the Act. When 
this curve begins to turn up due to growth in VMT or vehicle trips, the 
ceiling becomes a fixed value. The ceiling line would include the 
effects of federal measures such as new motor vehicle standards, phase 
II reid vapor pressure controls, and reformulated gasoline, as well as 
the Act mandated SIP requirements.
    As noted previously, on October 15, 1996, EPA published direct 
final approval of revisions to New Jersey's SIP for ozone submitted by 
New Jersey on November 15, 1992 and November 15, 1993 (61 FR 53624). In 
addition to the intended approval of New Jersey's ETR program, this 
action was also intended to approve New Jersey's demonstration that 
emissions from growth in vehicle miles traveled will not increase motor 
vehicle emissions and, therefore, offsetting measures are not 
necessary. While this approval was subsequently withdrawn at New 
Jersey's request, EPA's rationale for separating the three elements of 
Section 182(d)(1)(A) (i.e., offsetting growth in mobile source 
emissions, attainment of the RFP reduction, and attainment of ozone 
NAAQS) is outlined therein and is still valid.
    Included in the 15 Percent ROP Plan, New Jersey submitted an 
analysis of the growth in motor vehicle emissions due to growth in VMT: 
emissions from motor vehicles are projected to continually decline from 
1990 levels in both the Northern New Jersey and Trenton NAAs through 
the year 2012. The attainment deadline for the Northern New Jersey NAA 
is 2007 and for the Trenton NAA is 2005. Therefore, the State is not 
required to implement any measures to offset growth in emissions due to 
growth in VMT. Should increases occur after these dates, they would be 
addressed in the Attainment Demonstration or maintenance plan. EPA is 
proposing to find that the State has adequately demonstrated that 
transportation control measures are not needed to offset growth in 
emissions due to growth in VMT.

[[Page 23418]]

7. Photochemical Assessment Monitoring Station
    Section 182(c)(1) of the Act and the General Preamble (57 FR 13515) 
require that EPA promulgate rules for enhanced monitoring of ozone, 
NOX and VOCs (see 58 FR 8452, February 12, 1993) and that 
states classified serious and above develop and operate a photochemical 
assessment monitoring station network (PAMS). NJDEP submitted its PAMS 
Network Plan which included a schedule for implementation. This 
submittal was reviewed and approved on January 27, 1994 by EPA and was 
judged to satisfy the requirements of 40 CFR 58.40(a). NJDEP has been 
establishing its PAMS network according to its approved Work Plan and 
implementation schedule. EPA is proposing to approve New Jersey's PAMS 
network.

B. Other Phase I Elements

1. Modeling Work Completed to Date
    Photochemical grid modeling is used to support the State's 
submittal in two ways: first, meet the requirements set out in EPA's 
March 2, 1995 memo for a preliminary modeling analysis and to support 
the State's ability to use reductions in VOC and NONOX 
emission as part of its ROP and RFP Plans.
    New Jersey has submitted a preliminary modeling analysis using 
assumptions about transported ozone and precursors, as required by the 
March 2, 1995 memo previously referenced. This analysis does not have 
to show attainment of the ozone standard. Two episodes were modeled and 
ozone concentrations were predicted using emission control programs 
mandated by the Act plus various strategies proposed by the Ozone 
Transport Commission for reduction of ozone and its precursors in the 
Ozone Transport Region. Even with these programs, the modeling predicts 
that the State will not attain the ozone standard. To address this, New 
Jersey has actively participated in the multi-state Ozone Transport 
Assessment Group as required in the March 2, 1995 policy memo.
    The modeling also predicts that ozone will be reduced if emissions 
of VOC or of NOX are reduced. This is based on modeling the 
impact of proportionally reducing emissions of VOC and NOX 
together and separately and showing that the peak ozone concentration 
is reduced. Thus, emissions of either VOC and NOX can be 
reduced to improve ozone air quality in New Jersey and either can be 
used in the 15 Percent ROP and 9 Percent RFP Plans to the extent 
allowed in the Act. EPA is proposing to accept New Jersey's modeling 
efforts as fulfilling EPA's Phase I requirements.
2. Ozone Transport Commission NOX MOU
    On September 27, 1994, the Ozone Transport Commission agreed to 
develop a regional program to achieve significant reduction in 
NOX emissions from large combustion sources. New Jersey 
signed the Memorandum of Understanding (MOU) which formalized this 
program. EPA's March 2, 1995 policy requires states to provide 
enforceable commitment to implement the NOX MOU. New Jersey 
provided a schedule for completing the rule development effort by 
November 1997 which will implement the NOX MOU. EPA is 
proposing to accept this as satisfying EPA's Phase I requirement for 
NOX MOU.
3. Commitments to Future Action
    EPA's March 2, 1995 policy requires states to provide enforceable 
commitments to: (1) participate in the consultative process to address 
regional transport; (2) adopt additional control measures as necessary 
to attain the ozone standard, meet rate of progress requirements, and 
eliminate significant contribution to nonattainment downwind; and (3) 
identify any reductions that are needed from upwind areas for the area 
to meet the ozone standard.
    As part of the December 31, 1996 SIP revision, New Jersey made 
commitments for all three of the above requirements. New Jersey is an 
active participant to the Ozone Transport Assessment Group process and 
chairs the Modeling and Assessment Subgroup. EPA is proposing to accept 
these commitments as satisfying EPA's Phase I requirements.
4. Clean Fuel Fleet
    Section 182(c)(4) requires a Clean Fuel Fleet or substitute 
measure. New Jersey submitted a substitute measure on February 15, 1996 
and supplemented the submittal on March 6, 1997. EPA will be taking 
action on this requirement in a separate Federal Register document.

IV. Transportation Conformity Budgets

    By virtue of proposing approval of the 15 Percent ROP Plan and 9 
Percent RFP Plan, EPA is also proposing approval of the motor vehicle 
emissions budgets for VOC and NOX. For the purpose of 
transportation conformity determinations, final approval of this 15 
Percent ROP Plan revision will eliminate the need for a build/no-build 
test and less-than-1990 emissions test for VOC and NOX for 
the 1996 analysis year. For the 1999 analysis year and later, 
conformity determinations addressing VOC and NOX must 
demonstrate consistency with the 9 Percent RFP Plan revision's VOC and 
NOX motor vehicle emissions budget.
    The tables 5 and 6 summarize New Jersey's Emission Budgets.

                Table 4.--Emission Budgets for Conformity               
------------------------------------------------------------------------
                                                VOC  (tons/  NOX  (tons/
                                                    day)         day)   
------------------------------------------------------------------------
                                  1996                                  
------------------------------------------------------------------------
North Jersey Transportation Planning Authority       164.71       270.99
Delaware Valley Regional Planning Commission                            
 (NJ portion).................................        52.26        79.66
South Jersey Transportation Planning                                    
 Organization.................................        29.62        32.64
------------------------------------------------------------------------
                                  1999                                  
------------------------------------------------------------------------
North Jersey Transportation Planning Authority       144.06       244.93
Delaware Valley Regional Planning Commission                            
 (NJ portion).................................        46.48        72.36
South Jersey Transportation Planning                                    
 Organization.................................        17.44        29.53
------------------------------------------------------------------------


[[Page 23419]]


          Table 5.--Emission Budgets for McGuire Air Force Base         
------------------------------------------------------------------------
                                                VOC  (tons/  NOX  (tons/
                                                   year)        year)   
------------------------------------------------------------------------
1990 Baseline.................................        1,112        1,038
1996..........................................        1,186        1,107
1999..........................................        1,223        1,142
------------------------------------------------------------------------

    EPA is proposing to approve New Jersey's emission budgets.

V. Phase I Findings

    On July 3, 1996, EPA notified the Governor of New Jersey that EPA 
was making a finding of failure to submit all the Act elements required 
to fulfill the March 2, 1995 ``Ozone Attainment Demonstration'' policy 
as committed to by New Jersey. EPA announced the start of the sanction 
process in a July 10, 1996 Federal Register notice (61 FR 36292). With 
New Jersey's submittals of December 31, 1996 and February 25, 1997 
(Phase I SIP revision), and March 6, 1997 (Clean Fuel Fleets Program 
SIP revision), New Jersey has now submitted all the Phase I 
requirements. EPA has determined these submittals are complete and will 
notify New Jersey in a letter shortly that the sanction process that 
started on July 3, 1996 is terminated.

VI. Summary

    EPA has evaluated these submittals for consistency with the Act, 
applicable EPA regulations, and EPA policy. EPA is proposing approval 
of New Jersey's: revisions to the 1990 base year ozone emission 
inventory; the 1996 and 1999 ozone projection emission inventories; 
photochemical assessment monitoring stations network; demonstration 
that emissions from growth in vehicle miles traveled will not increase 
motor vehicle emissions; modeling efforts completed to date; 
transportation conformity budget; and enforceable commitments for Phase 
II.
    In addition, EPA is proposing conditional interim approval of New 
Jersey's 15 Percent ROP Plan and the 9 Percent RFP Plan if New Jersey 
commits, in writing, within 30 days of EPA's proposal to correct the 
following condition. New Jersey must remodel the enhanced I/M program 
to estimate the emission reductions that will result from the I/M 
program as implemented. This remodeling must be completed and submitted 
to EPA within one year of EPA's final action on the 15 Percent ROP and 
the 9 Percent RFP Plans.
    If New Jersey submits a commitment to this effect, EPA will publish 
a conditional interim approval of New Jersey's 15 Percent ROP Plan and 
the 9 Percent RFP Plan. EPA will consider all information submitted as 
a supplement or amendment to the December 31, 1996 submittal prior to 
any final rulemaking action.
    If New Jersey does not make the required commitment to EPA within 
30 days, EPA is today proposing in the alternative that the 15 Percent 
ROP Plan and 9 Percent RFP Plan be disapproved.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any SIP. Each request for revision to the SIP shall be 
considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.

VII. Administrative Requirements

Executive Order 12866

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

Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    Conditional approvals of SIP submittals under section 110 and 
subchapter I, part D of the Act 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 Act, preparation of a flexibility 
analysis would constitute federal inquiry into the economic 
reasonableness of state action. The 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.

Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a federal mandate that may result in estimated 
annual 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 annual 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

[[Page 23420]]

no new 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 will be based on whether it meets the requirements of 
section 110(a)(2)(A)-(K) and part D of the 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, Nitrogen dioxide, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

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

    Dated: April 16, 1997.
William J. Muszynski,
Deputy Regional Administrator.
[FR Doc. 97-11125 Filed 4-29-97; 8:45 am]
BILLING CODE 6560-50-P