Federal Register, Volume 62 Issue 83 (Wednesday, April 30, 1997)

[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]

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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.

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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
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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
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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
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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
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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
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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.

[[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}}}}}}}}}}