[Federal Register Volume 62, Number 114 (Friday, June 13, 1997)]
[Proposed Rules]
[Pages 32258-32265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-15569]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[VA062-5021 and VA080-5021; FRL- 5841-6]


Approval and Promulgation of Air Quality Implementation Plans; 
Virginia; Redesignation Request, Maintenance Plan and Mobile Emissions 
Budget for the Richmond Ozone Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a redesignation request and two 
State Implementation Plan (SIP) revisions submitted by the Commonwealth 
of Virginia. On July 26, 1996, the Commonwealth of Virginia's 
Department of Environmental Quality, submitted a maintenance plan as a 
revision to the SIP and a request to redesignate the Richmond moderate 
ozone nonattainment area from nonattainment to attainment. EPA's 
proposed action is based upon the Commonwealth's submittal satisfying 
all five criteria for redesignation in the Clean Air Act (the Act), 
including the fact that the Richmond area has at least three years of 
complete, quality-assured ambient air monitoring data which demonstrate 
that the National Ambient Air Quality Standard (NAAQS) for ozone has 
been attained. On July 30, 1996, the Commonwealth submitted another 
revision to the SIP modifying the mobile emission budgets in the 
Richmond area maintenance plan in support of the area's transportation 
plans for the period after the year 2015. EPA is proposing to 
redesignate the Richmond ozone nonattainment area from nonattainment to 
attainment and to approve the maintenance plan and mobile emissions 
budget as revisions to the Virginia SIP. The SIP revisions establish a 
maintenance plan for Richmond including contingency measures which 
provide for continued attainment of the ozone NAAQS until the year 2007 
and adjust the motor vehicle emissions budget established in the 
maintenance plan for Richmond to support the area's long-range 
transportation plans in the horizon years 2015 and beyond. EPA is 
proposing to approve Virginia's redesignation request and maintenance 
plan for the Richmond area because the relevant requirements set forth 
in the the Act, as amended in 1990, have been met. This action is being 
taken under section 110 of the Act.

DATES: Comments must be received on or before July 14, 1997.

ADDRESSES: Comments may be mailed to David Arnold, Chief, Ozone/CO & 
Mobile Sources Section, Mailcode 3AT21, U.S. Environmental Protection 
Agency, Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 
19107. Copies of the documents relevant to this action are available 
for public inspection during normal business hours at the Air, 
Radiation, and Toxics Division, U.S. Environmental Protection Agency, 
Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107 and 
the Virginia Department of Environmental Quality, 629 East Main Street, 
Richmond, Virginia, 23219.

FOR FURTHER INFORMATION CONTACT: Kristeen Gaffney, Ozone/Carbon 
Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841 
Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone 
at: (215) 566-2092. Questions may also be addressed via e-mail, at the 
following address:

[[Page 32259]]

Gaffney.K[email protected] [Please note that only written 
comments can be accepted for inclusion in the docket.]

SUPPLEMENTARY INFORMATION:

I. Background

    The Richmond nonattainment area was designated under section 107 of 
the 1977 Clean Air Act (1977 Act) as nonattainment with respect to the 
ozone NAAQS on March 3, 1978. The 1977 Act required nonattainment areas 
to develop SIPs with sufficient control measures to expeditiously 
attain and maintain the standard. EPA approved the ozone SIP submitted 
by the Commonwealth on January 12, 1979, as meeting the requirements of 
section 110 and part D of the 1977 Act. In its SIP, Virginia projected 
that the Richmond area would attain the standard by December 31, 1982, 
but the area failed to attain the standard by that date. On November 
15, 1990, the Clean Air Act Amendments of 1990 (Act) were enacted. The 
nonattainment designation of the Richmond area continued by operation 
of law according to section 107(d)(1)(C)(i) of the Act. Furthermore, it 
was classified by operation of law as moderate nonattainment for ozone 
pursuant to section 181(a)(1) of the Act. The Richmond nonattainment 
area consists of the following counties: Richmond, Henrico, 
Chesterfield, Colonial Heights, Hopewell, Hanover and portions of 
Charles City County.
    Under section 107 (d)(3)(E) of the Act, nonattainment areas may be 
redesignated to attainment if sufficient air quality data are available 
to warrant the redesignation and the area meets the Act's other 
redesignation requirements for nonattainment areas.
    The Commonwealth submitted a redesignation request and maintenance 
plan on November 12, 1992 to redesignate the Richmond area from 
nonattainment to attainment, based on ambient monitoring from 1989 to 
1991 that indicated that the area was attaining the ozone standard. EPA 
proposed approval of the redesignation request and maintenance plan on 
August 17, 1993 (58 FR 43609) but subsequently proposed and finally 
disapproved the submittal on January 31, 1994 and May 3, 1994, 
respectively, based on violations of the ozone standard that occurred 
during the 1993 ozone season (59 FR 4263 and 59 FR 22757).
    The Richmond ozone nonattainment area has more recently attained 
the ozone NAAQS, based on air quality data from 1993 to 1996. In an 
effort to comply with the Act and to ensure continued attainment of the 
NAAQS, Virginia submitted a 10 year ozone maintenance plan on July 26, 
1996 for the Richmond area as a SIP revision.

II. Review of State Submittal

    According to section 107(d)(3)(E) of the Act, five specific 
requirements must be met in order for EPA to redesignate an area from 
nonattainment to attainment:
    1. The area must have attained the applicable NAAQS;
    2. The area must have met all relevant requirements under section 
110 and part D of the Act;
    3. The area must have a fully approved SIP under section 110(k) of 
the Act;
    4. The air quality improvement must be permanent and enforceable; 
and
    5. The area must have a fully approved maintenance plan pursuant to 
section 175A of the Act.
    The Commonwealth's redesignation request for the Richmond area 
included information and documentation sufficient for EPA to determine 
that all five requirements of section 107, noted above, have been met. 
Following is a brief description of how each of these requirements has 
been fulfilled. Because the maintenance plan is a critical element of 
the redesignation request, EPA will discuss its evaluation of the 
maintenance plan under its analysis of the redesignation request. A 
Technical Support Document (TSD) has been prepared by EPA for this 
rulemaking action. The TSD is available for public inspection at the 
EPA Regional Office listed in the ADDRESSES section of this document.

1. Attainment of the Ozone NAAQS

    Virginia's request is based on an analysis of quality assured 
ambient air quality monitoring data which is relevant to the 
maintenance plan and to the redesignation request. The method for 
determining attainment of the ozone NAAQS is contained in 40 CFR part 
50.9 and appendix H to that section. The simplest method by which 
expected exceedances are calculated is by averaging actual exceedances 
of the 0.12 parts per million ozone NAAQS at each monitoring site over 
a three year period. An area is considered in attainment of the 
standard if the average annual number of expected exceedances is less 
than or equal to 1.0. Ambient air quality data recorded in the Richmond 
area, between the years 1993-1995 shows an expected exceedance rate of 
1.0 per year and attainment of the ozone NAAQS. The data for these 
years meets EPA's completeness criteria of 75% or greater data capture. 
Furthermore, the area remained free of violations during the 1996 ozone 
season. The Commonwealth has committed to continue monitoring in this 
area in accordance with 40 CFR part 58.

2. The Area Has Met All Applicable Requirements Under Section 110 and 
Part D

    As previously stated, EPA fully approved the Commonwealth's SIP for 
the Richmond area as meeting the requirements of section 110(a)(2) and 
part D of the 1977 Act. The amended Act, however, modified section 
110(a)(2) and, under part D, revised section 172 and added new 
requirements for all nonattainment areas. Therefore, for purposes of 
redesignation, EPA has reviewed the SIP to ensure that it contains all 
measures that were due under the Act as of July 26, 1996, the date the 
Commonwealth submitted its redesignation request.
2.A. Section 110 Requirements
    Although section 110 of the 1977 Act was amended in 1990, the 
Virginia SIP for the Richmond area meets the requirements of section 
110(a)(2) of the amended Act. A number of the requirements did not 
change in substance and, therefore, EPA believes that the pre-amendment 
SIP met these requirements. As to those requirements that were amended, 
see 57 FR 27936 and 23939 (June 23, 1993), many are duplicative of 
other requirements of the Act.
    EPA has analyzed the SIP and determined that it is consistent with 
the requirements of section 110(a)(2) of the Act. It contains 
enforceable emissions limitations, it requires monitoring, compiling, 
and analyzing ambient air quality data, it requires preconstruction 
review of new major stationary sources and major modifications to 
existing ones, it provides for adequate funding, staff and associated 
resources necessary to implement its requirements, and requires 
stationary source emissions monitoring and reporting.
2.B. Part D Requirements
    Before an area may be redesignated to attainment, it also must have 
fulfilled applicable requirements of part D due as of the date of the 
Commonwealth's redesignation request. Under part D, an area's 
classification indicates the requirements to which it will be subject. 
Subpart 1 of part D sets forth the basic nonattainment requirements 
applicable to all nonattainment areas, regardless of classification. 
Subpart 2 of part D establishes additional requirements for 
nonattainment areas classified under table 1 of section 181(a). 
Specific

[[Page 32260]]

requirements of subpart 2 may override subpart 1's general provisions 
(57 FR 13501, April 16, 1992). Since the Richmond area is classified 
moderate, the Commonwealth must meet the applicable requirements of 
subpart 1, specifically sections 172(c) and 176, and the applicable 
requirements of subpart 2 of part D for moderate areas.
2.B.1. Subpart 1 of Part D--Section 172(c) Provisions
    Under section 172(b), the section 172(c) requirements are 
applicable as determined by the Administrator, but must be met no later 
than 3 years after an area has been designated as nonattainment under 
the amended Act. Furthermore, as noted above, some of these section 
172(c) requirements are superseded by more specific requirements in 
subpart 2 of part D. For moderate ozone nonattainment areas, the 
section 172(c)(1) reasonably available control measures requirement was 
superseded by section 182(a)(2) reasonably available control technology 
(RACT) requirements. Section 182(a)(2) requires moderate ozone 
nonattainment areas that were previously designated nonattainment to 
submit RACT corrections. Because section 182(a)(2) supersedes the RACT 
requirements in subpart 1 of part D, the RACT correction requirement is 
discussed with other RACT requirements below in section 2.B.3.
    Since the Richmond area has attained the ozone NAAQS, the 
reasonable further progress (RFP) requirement, attainment demonstration 
and 179(c)(9) contingency measure SIPs are no longer relevant. A May 
10, 1995 memorandum from John Seitz to Regional Division Directors 
entitled ``Reasonable Further Progress, Attainment Demonstration, and 
Related Requirements for Ozone Nonattainment Areas Meeting the National 
Ambient Air Quality Standard'' indicates that the RFP, attainment 
demonstration and 179(c)(9) contingency measure SIPs would not be 
required for approval of a redesignation request for those areas which 
the EPA determines have attained the ozone NAAQS. Based on this policy, 
on February 25, 1997, EPA published a determination that the Richmond 
area has attained the NAAQS [62 FR 8389]. In a separate rulemaking 
action in today's Federal Register, EPA is taking final approval action 
to waive the RFP and attainment demonstration requirements for the 
Richmond area.
    The section 172(c)(3) emission inventory requirement has been met 
by the Commonwealth's submission and EPA's approval on September 16, 
1996 [61 FR 48629], of the 1990 base year emission inventory required 
by section 182(a)(1).
    As for the section 172(c)(5) NSR requirement, the EPA has 
determined that areas being redesignated need not comply with the NSR 
requirement prior to redesignation provided that the area demonstrates 
maintenance of the NAAQS without part D NSR in effect. A memorandum 
from Mary Nichols, Assistant Administrator for Air and Radiation, dated 
October 14, 1994, entitled ``Part D New Source Review Requirements for 
Areas Requesting Redesignation to Attainment'', fully describes the 
rationale for this view, and is based on the Agency's authority to 
establish de minimis exceptions to statutory requirements. See Alabama 
Power Co. v. Costle, 636 F. 2d 323, 360-61 (D.C. Cir. 1979). As 
discussed below, the Commonwealth has demonstrated that the Richmond 
area will be able to maintain the NAAQS without part D NSR in effect 
and, therefore, the Commonwealth need not have a fully-approved part D 
NSR program prior to approval of the redesignation request for 
Richmond. Once the area is redesignated to attainment, part C, the 
prevention of significant deterioration (PSD) program, which has been 
delegated to Virginia, will become effective immediately. The PSD 
program was delegated to Virginia on June 3, 1981, and amended on 
September 20, 1991.
    Finally, for purposes of redesignation, the Virginia SIP was 
reviewed to ensure that all requirements of section 110(a)(2), 
containing general SIP elements, were satisfied. As noted above, the 
EPA believes the SIP satisfies all of those requirements.
2.B.2. Subpart 1 of Part D--Section 176(c) Conformity Provisions
    Under section 176(c) of the Act, states were required to submit 
revisions to their SIPs that include criteria and procedures to ensure 
that Federal actions conform to the air quality planning goals in the 
applicable SIPs. The requirement to determine conformity applies to 
transportation plans, programs and projects developed, funded or 
approved under Title 23 U.S.C. or the Federal Transit Act 
(``transportation conformity''), as well as all other Federal actions 
(``general conformity''). Congress provided for the State revisions to 
be submitted one year after the date of promulgation of final EPA 
conformity regulations. EPA promulgated final transportation conformity 
regulations on November 24, 1993 (58 FR 62188) and final general 
conformity regulations on November 30, 1993 (58 FR 63214). These 
conformity rules require that the states adopt both transportation and 
general conformity provisions in the SIP for areas designated 
nonattainment or subject to a maintenance plan approved under section 
175A of the Act. Pursuant to 40 CFR 51.396 of the transportation 
conformity rule and 40 CFR 51.851 of the general conformity rule, the 
Commonwealth of Virginia was required to submit a SIP revision 
containing transportation conformity criteria and procedures consistent 
with those established in the Federal rule by November 25, 1994. 
Similarly, Virginia was required to submit a SIP revision containing 
general conformity criteria and procedures consistent with those 
established in the Federal rule by December 1, 1994. Virginia submitted 
both the transportation conformity and general conformity SIP revisions 
to EPA in January of 1997. EPA is reviewing these SIP revisions and 
will take rulemaking action on them at a future date.
    Although this redesignation request was submitted to EPA after the 
due dates for the SIP revisions for transportation conformity [58 FR 
62188] and general conformity [58 FR 63214] rules, EPA believes it is 
reasonable to interpret the conformity requirements as not being 
applicable requirements for purposes of evaluating the redesignation 
request under section 107(d). The rationale for this is based on a 
combination of two factors. First, the requirement to submit SIP 
revisions to comply with the conformity provisions of the Act continues 
to apply to areas after redesignation to attainment. Therefore, the 
Commonwealth remains obligated to implement transportation and general 
conformity rules even after redesignation and would risk sanctions for 
failure to do so. While redesignation of an area to attainment enables 
the area to avoid further compliance with most requirements of section 
110 and part D, since those requirements are linked to the 
nonattainment status of an area, the conformity requirements apply to 
both nonattainment and maintenance areas. Second, EPA's federal 
conformity rules require the performance of conformity analyses in the 
absence of EPA approval of state-adopted rules. Therefore, a delay in 
approving the Commonwealth's rules into the SIP does not relieve an 
area from the obligation to implement conformity requirements.
    Because areas are subject to the conformity requirements regardless 
of whether they are redesignated to attainment and must implement 
conformity under Federal rules if state rules are not yet adopted or 
approved into the SIP, EPA believes it is

[[Page 32261]]

reasonable to view these requirements as not being applicable 
requirements for purposes of evaluating a redesignation request.
    For the reasons just discussed, the EPA believes that the ozone 
redesignation request for the Richmond area may be approved 
notwithstanding the lack of fully approved Commonwealth transportation 
and general conformity rules.
2.B.3. Subpart 2 of Part D--Section 182 Provisions for Ozone 
Nonattainment Areas
    Richmond is a moderate ozone nonattainment area and is subject to 
section 182(a), 182(b) and 182(f) requirements. Under subpart 2, 
Richmond is required to have met the requirements of section 182(a) 
(1), (2) and (3), section 182(b) (1), (2), (3) and (4), and section 
182(f). The following discussion describes each of these requirements.
    EPA approved Virginia's emission inventory requirement under 
section 182(a)(1) on September 16, 1996 [61 FR 48629]. The section 
182(2)(B) motor vehicle inspection and maintenance (I/M) requirement is 
superseded by the section 182(b)(4) requirement discussed below. The 
Commonwealth need not comply with the requirements of section 182(a) 
concerning revisions to the part D NSR program in order for the 
Richmond area to be redesignated for the reasons explained above under 
the section 172(c)(5) requirement. Section 182(a)(3)(A) requires 
submission of periodic inventories every three years from 1990 until 
the area is redesignated attainment. The maintenance plan for Richmond 
contains a full emissions inventory for the attainment year 1993. 
Because the attainment year is the same as the year the first periodic 
inventory came due, the maintenance plan satisfies this requirement. 
The emission statement SIP required by section 182(a)(3)(B) was 
approved on May 2, 1995 (60 FR 21451). The RFP and attainment 
demonstration requirements of section 182(b)(1) will no longer be 
applicable, as discussed previously, since the area has attained the 
ozone NAAQS.
    Section 182(a)(2) requires moderate ozone nonattainment areas that 
were previously designated nonattainment to submit RACT corrections 
based on requirements in effect prior to enactment of the 1990 
amendments to the Act. Furthermore, sections 182(b)(2) (A),(B) and (C) 
require moderate and above areas to adopt standards for all sources 
covered by any Control Technique Guideline (CTG) document issued by the 
Administrator after 1990 and before the area is required to attain the 
standard; all sources covered by any CTG before the date of enactment 
of the 1990 amendments; and all sources not subject to a CTG. In 
addition, areas newly designated under the 1990 amendments as ozone 
nonattainment areas are required to adopt RACT rules consistent with 
those previously designated nonattainment. These RACT requirements make 
nonattainment areas that previously were exempt from RACT requirements 
``catch up'' to those nonattainment areas that became subject to those 
requirements during an earlier period, and therefore, is known as the 
RACT catch-up requirement. Virginia submitted RACT corrections as SIP 
revisions on May 14, 1991 and June 20, 1991. Among the regulations 
submitted in this SIP revision was a provision (Rule 4-4) that formed 
the legal basis for imposing RACT on all individual major VOC sources 
subject to RACT in the Richmond nonattainment area not covered by an 
existing state adopted VOC control regulation. The RACT correction SIP 
was approved by EPA on March 31, 1994 [59 FR 15117]. To implement Rule 
4-4, the Commonwealth must submit to EPA a SIP revision for the RACT 
determination and enforceable documents for all major VOC sources not 
otherwise controlled under existing VOC regulations.
    Because Rule 4-4 imposed RACT on all major VOC sources in the 
Richmond area on an individual basis, this rule partially satisfied the 
RACT catch-up requirement. On May 6, 1992, Virginia submitted a SIP 
revision expanding the geographic boundaries of the VOC emissions 
control area to coincide with the revised boundaries of the Richmond 
ozone nonattainment area resulting from the 1990 Clean Air Act 
Amendments. This SIP was approved by EPA on October 19, 1994 (59 FR 
52701). To complete the RACT correction and catch up requirements under 
sections 182(a)(2) and 182(b)(2)(A), (B) and(C), EPA must approve into 
the SIP any source specific RACT determinations for any non-CTG major 
source of VOCs identified under Rule 4-4 prior to final approval of the 
redesignation request. Virginia has identified 10 sources required to 
submit source specific RACT SIP revisions under rule 4-4. EPA has 
received SIP revisions for each of these facilities and is currently 
preparing rulemaking actions for them.
    Section 182(b)(3) requires states to submit gasoline vapor recovery 
rules (known as Stage II). EPA approved Virginia's Stage II program on 
June 23, 1994 (59 FR 32353).
    Sections 182(a)(2)(b)(i) and 182 (b)(4) of the Act require moderate 
nonattainment areas to submit a SIP revision that includes any 
provisions necessary to provide for a vehicle inspection and 
maintenance (I/M) program of no less stringency than either the program 
that was in the SIP at the time of passage of the 1990 amendments to 
the Act or the minimum basic program requirements, whichever is more 
stringent. Virginia has not implemented an I/M program in the Richmond 
area. On January 5, 1995 EPA published a rule [60 FR 1735] allowing 
areas subject to the Act's basic I/M requirements and that otherwise 
would qualify for and ultimately obtain approval of redesignation 
requests to defer adoption and implementation of I/M, provided they 
submit a SIP that contains the following four elements:
    (1) legal authority for a basic I/M program meeting all of the 
requirements of Subpart S of 40 CFR part 51, such that implementing 
regulations can be adopted without further legislation;
    (2) a request to place the I/M plan in the contingency measures 
portion of the maintenance plan upon redesignation as described in the 
fourth element below;
    (3) a contingency measure to go into effect as soon as a triggering 
event occurs, consisting of a commitment by the Governor or the 
Governor's designee to adopt regulations to implement the I/M program 
in response to the specified triggering event; and
    (4) a commitment that includes an enforceable schedule for adopting 
and implementing the I/M program, including appropriate milestones in 
the event the contingency measure is triggered (milestones will be 
defined by states in terms of months since the triggering event).
    Virginia has satisfied the first requirement. On October 25, 1996, 
the Commonwealth submitted the legislative authority for adopting 
regulations for a basic I/M program in the Richmond nonattainment area. 
The maintenance plan contains provisions satisfying the other three 
requirements. The maintenance plan relies on I/M as a contingency 
measure, specifies triggering events and contains a schedule for 
adoption and implementation in the event a trigger occurs. Refer to 
section 5.D of this notice for further detail.
    Section 182(f) requires states with areas classified as moderate 
and above to impose the same control requirements for major stationary 
sources of oxides of nitrogen (NOX) as apply to major 
stationary sources of VOCs [i.e., NOX RACT]. Section 182(f) 
further provides that these NOX requirements do not apply to 
areas outside of the ozone transport region if

[[Page 32262]]

EPA determines that additional reductions of NOX would not 
contribute to attainment in such areas, which could be satisfied 
through a demonstration of clean air quality data and/or a modeling 
demonstration. On December 18, 1995, the Commonwealth submitted a 
NOX exemption petition to exempt the Richmond ozone 
nonattainment area from the NOX RACT requirements based upon 
ambient air quality monitoring data for 1993, 1994 and 1995 which met 
the NAAQS for ozone without any additional reductions of 
NOX. EPA proposed approval of the NOX waiver for 
the Richmond area on March 12, 1996 [61 FR 11170]. Although EPA is 
proposing approval of the Richmond redesignation request in today's 
action, EPA must complete final rulemaking action on the NOX 
waiver before the area can be finally redesignated. As long as Richmond 
remains a designated nonattainment area for ozone, this NOX 
RACT exemption is contingent upon future monitoring that demonstrates 
continued attainment of the ozone NAAQS. Furthermore, this waiver in no 
way insulates or alleviates the Commonwealth of Virginia from any 
future obligations to secure additional NOX reductions 
should technical evidence, including but not limited to that which may 
result from the Ozone Transport and Assessment Group (OTAG) process, 
indicate that such reductions are required because NOX 
emissions generated in Virginia interfere with the ability of another 
state or legally responsible jurisdiction to attain and maintain the 
NAAQS for ozone.

3. Fully Approved SIP Under Section 110(k) of the Act

    EPA has determined that the Commonwealth of Virginia has a fully 
approved SIP under section 110(k), which also meets the applicable 
requirements of section 110 and Part D as discussed above. Therefore, 
the redesignation requirement of section 107(d)(3)(E)(ii) has been met.

4. Improvement in Air Quality Due to Permanent and Enforceable Measures

    The Commonwealth must be able to reasonably attribute air quality 
improvements in the area to emission reductions which are permanent and 
enforceable. Attainment resulting from temporary reductions in emission 
rates or unusually favorable meteorological conditions does not qualify 
for redesignation.
    Several enforceable control measures have come into place since 
Richmond was designated nonattainment under the 1990 amendments. 
Significant reductions in ozone precursor emissions are attributed to 
federal mobile source emission control programs. Specifically, VOC 
reductions occurred due to the Federal Motor Vehicle Control Program 
(FMVCP) due to the mandatory lowering of fuel volatility and automobile 
fleet turnover. Effective in 1993, the Reid Vapor Pressure (RVP) of 
gasoline decreased from 9.9 pounds per square inch (psi) to 7.8 psi in 
the Richmond area reducing VOC emissions from gasoline. Beginning in 
1995, federal reformulated gasoline (RFG) was implemented in Richmond 
as a replacement to low RVP gasoline, further reducing VOC emissions 
from gasoline.
    As a starting point for the redesignation request, Virginia 
developed a design year emissions inventory representing the ``worst 
case'' emissions scenario that contributes to ozone violations. The 
design year chosen by Virginia for Richmond is 1988, a year that was 
particularly conducive to ozone violations in eastern U.S. 
nonattainment areas. The maintenance plan contains a comprehensive 
emissions inventory of ozone precursors, VOCs, NOX and 
carbon monoxide (CO), for the year 1988 to establish the amount of 
emission reductions achieved to reach attainment with the ozone NAAQS 
in the 1993 attainment year.
    The Commonwealth demonstrated that point source VOC emissions were 
not artificially low due to local economic downturn during the period 
in which Richmond air quality came into attainment. Reductions due to 
decreases in production levels or from other unenforceable scenarios 
such as voluntary reductions were not included in the determination of 
the emission reductions.
    EPA finds that the combination of measures contained in the SIP and 
federal measures have resulted in permanent and enforceable reductions 
in ozone precursors that have allowed Richmond to attain the NAAQS, and 
therefore, that the redesignation criterion of section 
107(d)(3)(E)(iii) has been met.

5. Fully Approved Maintenance Plan Under Section 175A

    Section 175A of the Act sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
The plan must demonstrate continued attainment of the applicable NAAQS 
for at least ten years after the Administrator approves a redesignation 
to attainment. Eight years after the redesignation, the Commonwealth 
must submit a revised maintenance plan which demonstrates attainment 
for the ten years following the initial ten-year period. To provide for 
the possibility of future NAAQS violations, the maintenance plan must 
contain contingency measures, with a schedule for implementation, 
adequate to assure prompt correction of any air quality problems. EPA 
is approving the Virginia maintenance plan for the Richmond area 
because EPA finds that Virginia's submittal meets the requirements of 
section 175A of the Act as discussed below.
5. A. Emissions Inventories
    The Commonwealth developed an attainment emissions inventory to 
identify the level of emissions sufficient to achieve the ozone NAAQS. 
The maintenance plan contains comprehensive inventories for the years 
1993, 1999 and 2007 prepared according to EPA guidance for ozone 
precursors, VOCs, NOX, and CO emissions to demonstrate 
attainment and maintenance for Richmond. The inventories include area, 
stationary, non-road mobile and mobile sources. The year 1993 was used 
for the attainment year inventory because it was the first year of the 
three year period on which the redesignation request was based. The 
plan includes a demonstration that emissions will remain below the 1993 
attainment year levels for a 10 year period (2007) and provides an 
interim year inventory, as required by EPA guidance, for the year 1999.
    The Commonwealth has demonstrated that emissions for ozone 
precursors through the year 2007 will remain below the 1993 attainment 
year levels because of permanent and enforceable measures, while 
allowing for growth in population and vehicle miles traveled (VMT).
    The following table summarizes the average peak ozone season 
weekday VOC, NOX, and CO emissions for the major 
anthropogenic (non-biogenic) source categories for the 1993 attainment 
year inventory and projected 1999 and 2007 inventories.

[[Page 32263]]



                     Richmond Area Emissions Summary                    
------------------------------------------------------------------------
    Emissions (tons per year)          1993         1999         2007   
------------------------------------------------------------------------
VOCs:                                                                   
    Point sources................        49.64        53.25        60.05
    Area sources.................        70.34        64.48        67.97
    Mobile sources 1.............        40.41        35.94        31.86
                                  --------------------------------------
        Subtotal.................       160.39       153.67       159.88
NOX:                                                                    
    Point sources................       152.21       156.83       145.99
    Area sources.................        29.49        31.36        33.54
    Mobile sources...............        59.56        52.85        61.07
                                  --------------------------------------
        Subtotal.................       241.26       241.04       240.60
CO:                                                                     
    Point sources................        27.37        28.17        29.47
    Area sources.................       177.22       188.60       202.01
    Mobile sources...............       309.13       220.82       246.64
                                  --------------------------------------
        Subtotal.................       513.72       437.59       478.12
                                  ======================================
        Totals...................       915.37       832.30       878.60
------------------------------------------------------------------------
\1\ The mobile source VOC and NOX estimates include emissions safety    
  margins. A safety margin exists when the total emissions (stationary, 
  mobile, area) projected for the attainment year (or years of a        
  maintenance plan) are less than the emissions level necessary to      
  demonstrate attainment or maintenance. That difference in emissions   
  constitutes a safety margin. In this case, Virginia allocated such    
  safety margins to the on-road portion and inflated the mobile         
  emissions budget to satisfy conformity requirements.                  

5.B. Demonstration of Maintenance
    Virginia attributes the projected reductions of VOC emissions to 
the following national control measures: FMVCP (Tier 1); RFG (on-road 
and non-road), Stage II gasoline dispensing systems and pending EPA 
rules regulating emissions from Consumer/Commercial Solvents 
reformulations; Architectural/Industrial Maintenance Coatings 
reformulation; and Automobile Refinishing. The Commonwealth predicts 
future NOX emission reductions from FMVCP Tier 1, RFG (Phase 
2) and source specific seasonal NOX emission limits 
(emission caps) on two point sources of NOX in the 
nonattainment area. EPA believes these measures will contribute 
significant future emissions reductions that will help keep the 
Richmond area below the level of the 1993 attainment year inventory and 
in attainment of the ozone NAAQS. The TSD prepared for this rulemaking 
contains further detail on these emission control strategies.
5.C. Verification of Continued Attainment
    Continued attainment of the ozone NAAQS in Richmond depends, in 
part, on the Commonwealth of Virginia's efforts toward tracking 
indicators of continued attainment during the maintenance period. The 
Commonwealth of Virginia will track the status and effectiveness of the 
maintenance plan by updating the emissions inventory annually and 
through periodic evaluations. Virginia has committed to develop and 
submit to EPA comprehensive tracking inventories every three years 
during the maintenance period. The Commonwealth of Virginia will 
acquire source emissions data through the annual emission statements 
program; continue to monitor ambient ozone levels in accordance with 40 
CFR part 58 and continue to follow appropriate quality assurance and 
quality control procedures and enter the data into AIRS.
5.D. Contingency Plan
    The level of VOC and NOX emissions in Richmond will 
largely determine its ability to stay in compliance with the ozone 
NAAQS. Despite the Commonwealth of Virginia's best efforts to 
demonstrate continued compliance with the NAAQS, Richmond may exceed or 
violate the NAAQS. Therefore, Virginia has provided the following 
triggering events and contingency measures with a schedule for 
implementation in the event of future ozone air quality problems:
    1. In the event that VOC or NOX emissions exceed the 
regional emissions budgets, with no more than one recorded ozone 
exceedance: Virginia will prepare a complete VOC and NOX 
emission inventory and implement voluntary control measures, such as an 
ozone health advisory notification program.
    2. In the event of two or more monitored exceedances of the ozone 
NAAQS at any one monitor, voluntary controls will continue to be 
implemented.
    3. In the event of a monitored violation of the ozone standard, 
Virginia commits to implement a basic I/M program.
    4. In the event that a violation of the ozone NAAQS at any one 
monitor occurs after the I/M contingency measure has been implemented: 
The Commonwealth commits to implement NOX RACT on sources 
emitting greater than 100 tons/year.
    5. In the event of more than two violations of the ozone NAAQS at 
any individual monitor following implementation of the I/M and 
NOX RACT contingency measures: More restrictive requirements 
on open burning will be implemented; and if appropriate, transportation 
control measures will be developed and implemented.
    The Basic I/M contingency measure will be implemented on the 
following schedule:
    1. Notification received from EPA that a contingency measure must 
be implemented, or three months after a recorded violation;
    2. Applicable regulation to be adopted 12 months after date 
established in ``1'' above;
    3. Regulation implemented within 8 months of adoption;
    4. Program will complete one full cycle two years after 
implementation.
    The other contingency measures 1, 2, 4 and 5 will be implemented on 
the following schedule:
    1. Notification received from EPA that a contingency measure must 
be implemented, or three months after a recorded violation;

[[Page 32264]]

    2. Applicable regulation to be adopted 12 months after date 
established in ``1'' above;
    3. Regulation implemented within 6 months of adoption;
    4. Compliance achieved within 12 months of adoption.
    EPA finds that the contingency measures in the Commonwealth's 
submittal meet the requirements of section 175(A)(d) of the Act and 
EPA's policy concerning the use of I/M as a contingency measure as 
outlined in the January 5, 1995 rulemaking [60 FR 1735].
5.E. Subsequent Maintenance Plan Revisions
    In accordance with section 175A(b) of the Act, the Commonwealth of 
Virginia has agreed to submit a revised maintenance SIP eight years 
after the area is redesignated to attainment. Such revised SIP will 
provide for maintenance for an additional ten years.
    EPA has determined that the maintenance plan adopted by the 
Commonwealth of Virginia for the Richmond nonattainment area and 
submitted to EPA on July 26, 1996 meets the requirements of section 
175A of the Act. Therefore, EPA is proposing approval of the 
maintenance plan.

III. Interim Implementation Policy (IIP) Impact

    On December 13, 1996, EPA published proposed revisions to the ozone 
and particulate matter NAAQS. Also on December 13, 1996, EPA published 
its proposed policy regarding the interim implementation requirements 
for ozone and particulate matter during the time period following any 
promulgation of a revised ozone or particulate matter NAAQS (61 FR 
65751). This IIP includes a proposed policy regarding ozone 
redesignation actions submitted to and approved by EPA prior to 
promulgation of a new ozone standard, as well as those submitted prior 
to and approved by EPA after the promulgation date of a new or revised 
ozone standard.
    According to the proposed IIP policy, complete redesignation 
requests, submitted and approved by EPA prior to the promulgation date 
of the new or revised ozone standard, will be allowed to redesignate to 
attainment based on the maintenance plan's ability to demonstrate 
attainment of the current 1-hour standard and compliance with existing 
redesignation criteria.
    As discussed previously, the Richmond redesignation request 
demonstrates attainment under the current 1-hour ozone standard. Since 
the EPA is proposing to approve this request prior to the promulgation 
date of the new or revised ozone standard, the Richmond redesignation 
request is compatible with the proposed IIP.

IV. Motor Vehicle Emissions Budget

    To achieve expeditious attainment of the NAAQS, the Clean Air Act 
provisions at section 176 require that any project, program or plan in 
any way approved, accepted or funded by the federal government conform 
to the applicable SIP. As discussed earlier in this rulemaking in 
2.B.2. Conformity Provisions, conformity determinations are required in 
both maintenance and nonattainment areas. Transportation projects, 
Transportation Improvement Programs (TIPs) and Long Range 
Transportation Plans must demonstrate conformity.
    In 40 CFR 51.392 EPA defines a motor vehicle emissions budget as 
that portion of the total allowable emissions of any criteria pollutant 
or its precursors, which is defined in a revision to the SIP required 
to meet reasonable further progress, attainment or maintenance 
demonstrations, and which is allocated to highway and transit vehicles. 
The applicable implementation plan for an ozone nonattainment area 
designates a motor vehicle emissions budget for VOCs and may also 
allocate a similar budget for NOX in the case of the Post 
1996 Reasonable Further Progress Plans required in ozone nonattainment 
areas classified as serious or above. The applicable SIP for an ozone 
nonattainment area may also include a NOX budget if 
NOX reductions are being substituted for reductions of VOCs 
in milestone years required for reasonable further progress. The 
applicable SIP must demonstrate that this NOX budget will be 
achieved with measures contained therein.
    40 CFR 51.404 requires that long range transportation plans 
specifically describe the transportation system envisioned for certain 
future years, which are called horizon years. For maintenance areas, 
the regional analysis of emissions from this transportation system in 
each horizon year must be less than or equal to the motor vehicle 
emissions budget established by the maintenance plan. EPA's 
transportation conformity regulations require long range transportation 
plans to demonstrate conformity for a period of time (20 years) that 
goes well beyond the actual control strategy period on which the budget 
is based. The maintenance plan requires adopted rules to cover only a 
ten year maintenance period (Virginia's maintenance period for Richmond 
lasts until 2007).
    Virginia is required by the Clean Air Act to perform a regional 
emissions analysis on their long range transportation plans and compare 
the ozone precursor emissions from this analysis to the VOC and 
NOX motor vehicle emissions budgets, in ten year increments 
for the 20 year timeframe of the long range transportation plan. The 
Commonwealth chose to create a VOC and NOX motor vehicle 
emissions budget for the Richmond area for the years after the 10-year 
timeframe of the maintenance plan in order to facilitate transportation 
conformity determinations. To accommodate the projected mobile 
emissions growth in the Richmond area in the horizon years of the 
transportation planning cycle (2015 and beyond), additional emission 
reductions from enforceable control measures are necessary for positive 
conformity determination purposes. To be creditable, such reductions 
must be included in the SIP for the area.
    On July 30, 1996, Virginia submitted a SIP revision modifying the 
motor vehicle emissions budgets in the Richmond maintenance plan in 
support of the area's transportation plans for the period beginning in 
2015. Although mobile source emissions of NOX and VOC are 
predicted to rise in the year 2015 as VMT increases, Virginia 
anticipates that emission reductions will occur during this time 
period. The mobile emissions budget relies on reductions from a ban on 
open burning of such materials as trees, shrubs and brush from land 
clearing, trimmings from landscaping and household or business trash in 
the maintenance area during the ozone season months of June-August 
beginning in the year 2000. Additionally, reductions are anticipated 
from pending national emission control programs on non-road sources to 
offset growth, specifically new engine standards for marine engines, 
locomotive engines and heavy duty diesel engines. The Act requires that 
EPA promulgate new emission standards for marine engines, locomotive 
engines and heavy duty diesel engines. The emissions reductions from 
the open burning ban and the national control programs create a safety 
margin. For Richmond the safety margin for VOCs is 3.78 tons/day and 
for NOX 6.64 tons/day. All these reductions from the area 
and non-road source categories are allocated to the motor vehicle 
emissions budget for the purposes of conformity determinations. The 
motor vehicle emissions budgets in the maintenance plan are increased 
to 35.64 tons/day for VOCs and 67.71 tons/day for NOX, 
effective on January 1,

[[Page 32265]]

2015. Virginia used applicable EPA guidance in calculating the 
anticipated emission benefits from the national control programs. EPA's 
guidance includes two policy memos ``Future Nonroad Emission Reduction 
Credits for Locomotives'' dated January 3, 1995 and ``Future Nonroad 
Emission Reduction Credits for Court Ordered Nonroad Standards'' dated 
November 28, 1996.
    In general, approved budgets in the SIP are not superseded until 
the replacement budgets in the next SIP are actually SIP approved. 
However, because budgets after 2007 are not required by the Act for 
this maintenance plan and are being established for conformity purposes 
only to bridge the gap between the end of the first maintenance plan 
and the horizon years, these budgets will cease to apply once the 
second ten-year maintenance plan is submitted to EPA. The new submitted 
budget prepared by the Commonwealth for the second 10-year maintenance 
plan will replace the budget being approved today, as soon as it is 
submitted to EPA because these budgets will be a more appropriate basis 
of conformity. If the national emission control programs relied on in 
this SIP revision are not implemented according to the current schedule 
or do not produce the emission benefits anticipated, the Commonwealth 
commits to revising the SIP to include other measures as necessary to 
compensate any shortfall. Furthermore, the long range motor vehicle 
emission budget approved today will have to be incorporated into the 
second ten-year maintenance plan demonstrating continued attainment of 
the ozone NAAQS developed for the Richmond area. To satisfy conformity 
requirements in outlying years, EPA is approving the motor vehicle 
emissions budget for the Richmond area submitted on July 30, 1996 into 
the Virginia SIP.

V. Proposed Action

    EPA has evaluated the Commonwealth's redesignation request for 
Richmond for consistency with the Act, EPA regulations, and EPA policy. 
EPA has determined that the redesignation request and maintenance plan 
submitted by the Commonwealth meet the requirements of section 
107(d)(3)(E) and policy set forth in the General Preamble and policy 
memorandum discussed in this notice for area redesignations, and today 
is proposing approval of Virginia's redesignation request for Richmond 
submitted on July 26, 1996. Furthermore, EPA is proposing approval of 
the required maintenance plan into the Virginia SIP because it meets 
the requirements of section 175A. EPA is also proposing to approve the 
motor vehicle emissions budget for the Richmond area into the SIP. The 
Richmond nonattainment area is subject to the Act's requirements for 
moderate ozone nonattainment areas until and unless it is redesignated 
to attainment. EPA is soliciting public comments on the issues 
discussed in this document. These comments will be considered before 
taking final action. Interested parties may participate in the Federal 
rulemaking procedure by submitting written comments to the EPA Regional 
office listed in the Addresses section of this document.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any state implementation plan. Each request for revision to 
the state implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.

VI. Administrative Requirements

A. 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.

B. 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.
    Redesignation of an area to attainment under section 107(d)(3)(E) 
of the Act does not impose any new requirements on small entities. 
Redesignation is an action that affects the status of a geographical 
area and does not impose any regulatory requirements on sources. The 
Administrator certifies that the approval of the redesignation request 
will not affect a substantial number of small entities.

C. Unfunded Mandates

    Under Section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
private sector, of $100 million or more. Under 40 CFR section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the approval action proposed does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
Federal requirements. Accordingly, no additional costs to State, local, 
or tribal governments, or to the private sector, result from this 
action.
    The Regional Administrator's decision to approve or disapprove 
Virginia's redesignation request for Richmond, the associated 
maintenance plan and the Richmond area mobile emissions budget will be 
based on whether it meets the requirements of section 110(a)(2) (A)-(K) 
and part D of the Clean Air Act, as amended, and EPA regulations in 40 
CFR Part 51.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Nitrogen dioxide, Ozone.

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

    Dated: June 5, 1997.
W. Michael McCabe,
Regional Administrator, Region III.
[FR Doc. 97-15569 Filed 6-12-97; 8:45 am]
BILLING CODE 6560-50-P