[Federal Register Volume 63, Number 16 (Monday, January 26, 1998)]
[Proposed Rules]
[Pages 3687-3693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1765]



[[Page 3687]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AZ-005-ROP FRL-5953-4]


Approval and Promulgation of Implementation Plans; Phoenix, 
Arizona Ozone Nonattainment Area, 15 Percent Rate of Progress Plan and 
1990 Base Year Emission Inventory

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA proposes to determine that the Phoenix, Arizona ozone 
nonattainment area has in place sufficient control measures to meet the 
15 percent rate of progress (ROP) requirement in Clean Air Act section 
182(b)(2). This proposal is based on EPA's reanalysis of Arizona's 15 
percent plan submitted for the Phoenix area. This reanalysis takes into 
account current information on the implementation of the State's 
vehicle inspection and maintenance program, additional controls 
recently adopted by the State, and national rules either proposed or 
promulgated by EPA that affect emissions in the Phoenix area. EPA is 
also proposing to approve the area's 1990 base year emissions 
inventory.

DATES: Comments on this proposal must be received in writing by March 
27, 1998. Commenters may also request the opportunity to submit oral 
comments pursuant to Clean Air Act section 307(d)(5). Requests for a 
public hearing must be received by February 5, 1998.

ADDRESSES: Written comments should be addressed to Frances Wicher at 
the Region 9 address.
    Copies of the State's submittals, EPA's draft technical support 
document (TSD) for this rulemaking, EPA's policies governing 15 percent 
plan approvals and emission inventories, and other supporting 
documentation are contained in the docket for this rulemaking. Copies 
of this document and the TSD are also available in the air programs 
section of EPA Region 9's website, http://www.epa.gov/region09. The 
docket is available for inspection during normal business hours at the 
following locations:

U.S. Environmental Protection Agency, Region 9, Office of Air Planning, 
Air Division, 17th Floor, 75 Hawthorne Street, San Francisco, 
California 94105. (415) 744-1248.
Arizona Department of Environmental Quality, Library, 3033 N. Central 
Avenue, Phoenix, Arizona 85012. (602) 207-2217.

FOR FURTHER INFORMATION CONTACT: Frances Wicher, Office of Air Planning 
(AIR-2), U.S. Environmental Protection Agency, Region 9, 75 Hawthorne 
Street, San Francisco, California 94105. (415) 744-1248.

SUPPLEMENTARY INFORMATION:

I. Background

A. Clean Air Act Requirements

1. Base Year Emission Inventories
    The Phoenix metropolitan area was originally classified as a 
moderate ozone nonattainment on November 6, 1991. 1 Section 
182(b) of the Clean Air Act (CAA or Act) requires that each state in 
which all or part of a moderate ozone nonattainment area is located 
submit, by November 15, 1992, an inventory of actual emissions from all 
sources, as described in sections 172(c)(3) and 182(a)(1), in 
accordance with guidance provided by the Administrator. EPA provided 
preliminary guidance on this base year inventory in the General 
Preamble for the Implementation of Title I of the Clean Air Act 
Amendments of 1990, April 16, 1992, 57 FR 13498, 13502, indicating that 
the inventory should be for calendar year 1990 and should include both 
anthropogenic and biogenic sources of volatile organic compounds 
(VOCs), nitrogen oxides (NOX), and carbon monoxide (CO). The inventory 
should address actual emissions of these pollutants during the peak 
ozone season in the nonattainment area as well as emissions from 
sources emitting greater than 100 tons per year in a 25-mile buffer 
zone around the nonattainment area. The inventory should include all 
point and area sources, as well as all highway and non-highway (non-
road) mobile sources.
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    \1\  The Phoenix metropolitan area was recently reclassified 
from moderate to serious for ozone. 62 FR 60001 (November 6, 1997). 
This reclassification does not affect the requirement for a 1990 
base year inventory or a 15 percent ROP demonstration.
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2. 15 Percent ROP Plans
    Section 182(b)(1)(A) of the CAA requires State's with ozone 
nonattainment areas classified as moderate and above to develop plans 
to reduce VOC emissions by 15 percent, net of growth, from the 1990 
baseline. The 15 percent rate of progress (ROP) plans were to be 
submitted by November 15, 1993, and the reductions were required to be 
achieved by November 15, 1996.
    For the 15 percent ROP plans, the CAA sets limitations on the 
creditability of certain types of reductions. Specifically, a state 
cannot take credit for reductions achieved by Federal Motor Vehicle 
Control Program (FMVCP) measures promulgated prior to 1990, or for 
reductions resulting from requirements to lower the volatility (Reid 
Vapor Pressure (RVP)) of gasoline promulgated prior to 1990 or required 
under section 211(h) of the CAA, which restricts gasoline RVP. 
Furthermore, the CAA does not allow credit for corrections to vehicle 
inspection and maintenance (I/M) programs or corrections to Reasonably 
Available Control Technology (RACT) rules as these programs were 
required prior to 1990.
    Although the November 15, 1996 deadline has now passed, the 15 
percent ROP requirement remains. Once a statutory deadline has passed 
and has not been replaced by a later one, the deadline then becomes as 
soon as possible. Delaney v. EPA, 898 F.2d 687, 691 (9th Cir. 1990). 
EPA has interpreted this requirement to be ``as soon as practicable'' 
(55 FR 36458, 36505 (September 9, 1990)); therefore, to demonstrate 
that the Phoenix area has met the CAA section 182(b)(1) requirement, it 
must be demonstrated that the 15 percent reduction will be achieved as 
soon as practicable by showing that the applicable implementation plan 
contains all VOC control measures that are practicable for the Phoenix 
area and that meaningfully accelerate the date by which the 15 percent 
level is achieved.
    EPA has developed guidance that specifically addresses the 
crediting of post-1996 emission reductions in 15 percent ROP 
demonstrations. Under EPA policy, reliance on post-1996 emission 
reductions in the 15 percent plan necessitates that the 1996 target 
level of emission reductions be revised to remove the additional 
emission reductions from the FMVCP and federal RVP regulations between 
1996 and the year 15 percent is actually to be demonstrated. References 
2, 3 and 4.
    EPA's policy regarding 15 percent ROP plans can be found in the 
General Preamble (57 FR 13498, 13507) and other EPA guidance documents 
referenced in this document and found in the docket for this 
rulemaking.

B. Phoenix's 15 Percent ROP Plan

    The State of Arizona submitted the initial 15 percent rate of 
progress plan for the metropolitan Phoenix area (The Maricopa 
Association of Governments 1993 Ozone Plan for the Maricopa County 
Area, November 1993 (1993 MAG Plan)) on November 15, 1993 and an 
Addendum (March 1994) to that plan on April 8, 1994. On April 13, 1994 
EPA found the initial plan incomplete because it failed to include, in 
fully

[[Page 3688]]

adopted and enforceable form, all of the measures relied upon in the 15 
percent demonstration. This incompleteness finding started the 18-month 
sanction ``clock'' in CAA section 179 and the two-year clock under 
section 110(c) for EPA to promulgate a federal implementation plan 
(FIP) covering the 15 percent ROP requirement. Subsequently in November 
1994 and April 1995, Arizona submitted an attainment plan for the 
Phoenix area which updated the 15 percent ROP demonstrations. 
2 On May 12, 1995, EPA found the revised 15 percent plan and 
the attainment plan complete, turning off the sanctions clock; however, 
under section 110(c), the FIP clock continues until EPA approves the 15 
percent plan. Since 1995, EPA has acted to approve many of the control 
measures contained in these plans but has not yet acted on the overall 
15 percent plan.
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    \2\  The State also submitted its Voluntary Early Ozone Plan for 
the Metropolitan Phoenix Area (VEOP) on April 21, 1997. This plan 
contains several additional VOC control measures but does not 
include any revisions to the demonstration in the previously 
submitted 15 percent plan.
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    The 15 percent ROP demonstration in the MAG 1993 Plan relied 
primarily on improvements to the State's vehicle emissions inspection 
and maintenance program (I/M), a summertime gasoline volatility (RVP) 
limitation of 7.00 pounds per square inch (psi), numerous stationary 
and area source control measures, and a number of transportation 
control measures.
    Improvements to the State's I/M program (known as the Vehicle 
Emissions Inspection Program (VEIP)) included biennial IM240 transient 
testing for model year 1981 and newer vehicles, more stringent testing 
cut points (the tailpipe emissions levels at which cars are failed), 
pressure and purge testing, increased waiver limits, improvements to 
the anti-tampering program, and a remote sensing program. These I/M 
improvements accounted for 50 percent of the emission reductions 
necessary to show the required ROP. See 1993 Ozone Plan Addendum, page 
3-6. In designing its enhanced VEIP, Arizona relied in good faith on 
the technical specifications and associated emission reductions in 
EPA's enhanced I/M regulations, 40 CFR part 51, subpart S as 
promulgated on November 5, 1992 (57 FR 52950).
    Arizona began to implement the improvements to its I/M program in 
early 1995 and quickly determined that EPA's pressure and purge test 
could not be implemented in practice in I/M testing lanes, and 
consequently suspended the tests. The State subsequently redesigned the 
pressure test and began implementing it in 1996. No effective purge 
test, however, is currently available. EPA continues to work to develop 
such a test and Arizona remains committed to implementing a test when 
it becomes available.
    Early testing of the final cut points assumed in the State's 15 
percent plan also indicated that they would not work in practice 
because of unacceptably high false failure rates (i.e., failing cars 
that should have passed) of up to 50 percent. Arizona is currently 
working to develop alternatives to the final cut points and intends to 
begin implementing those alternatives as early as 1999.
    The purge test and the final cut points accounted for roughly 60 
percent of the total emission reductions expected from the VEIP and 30 
percent of the emission reductions necessary to show 15 percent ROP. In 
part to replace these lost emission reductions and in part to ensure 
continued progress toward attainment of the ozone standard in the 
Phoenix area, the State opted into EPA's federal reformulated gasoline 
program in 1997 (60 FR 30260 (June 3, 1997)) and has recently adopted 
its own, more stringent Cleaner Burning Gasoline (CBG) program as well 
as other control measures. EPA proposed to approve the State's CBG 
program on November 20, 1997. 62 FR 61942.

C. EPA's 15 Percent ROP Plan Obligation

    In August 1996, EPA was sued by the American Lung Association of 
Arizona, ALAA v. Browner, No. CIV 96-1856 PHX ROS (D.Ariz.). This case 
sought to enforce EPA's obligation under CAA section 110(c) to 
promulgate a federal plan for the 15 percent ROP requirement. On July 
8, 1997 a consent decree was filed with the U.S. District Court for the 
District of Arizona establishing a schedule of January 20, 1998 for 
proposing and May 18, 1998 for promulgating a 15 percent ROP plan. 
Under the consent decree, EPA's obligation to promulgate a plan is 
relieved to the extent that it has approved State measures.
    The State's 15 percent plan as revised and submitted in 1993 
through 1995 does not reflect the changes to the control strategy 
necessitated by the problems with enhanced I/M and the implementation 
of the federal RFG program. In addition, EPA guidance requires a 
recalculation of the 15 percent target emission level if post-1996 
emissions reductions (such as those from the RFG program) are to be 
credited to the 15 percent plan. As a result, EPA does not have in 
front of it a complete state submittal containing a revised 15 percent 
ROP demonstration that it could act on without additional analysis, 
public hearing and adoption by the State. Consequently in this 
document, EPA is proposing to find, based on its own analysis of the 
available emission reductions, that the State has sufficient measures 
to provide for the 15 percent reduction.

II. EPA's Evaluation

A. 1990 Base Year Emission Inventory

    EPA is proposing to approve the State's 1990 base year emissions 
inventory for the Phoenix metropolitan area and to use it, with minor 
modifications, as the basis for the 15 percent ROP demonstration.
    As specified in EPA guidance (Reference 1, p. 13502), the 1990 base 
year inventory is composed of annual and seasonal inventories of actual 
(as opposed to permitted or potential) VOC, NOX, and CO 
emissions in the Phoenix ozone nonattainment area as well as actual 
emissions from all large point sources within a 25-mile buffer zone 
around the nonattainment area.
    EPA proposes to approve the base year inventory because it is (1) 
accurate in that it uses established estimation and measurement methods 
approved by EPA; (2) comprehensive in that it estimates emissions from 
all categories of sources for the three ozone precursors; and (3) 
current in that it provides estimates of actual emissions for the 1990 
base year as required.
    Table 1 provides a summary of the baseline emissions inventory.

    Table 1.--Metropolitan Phoenix 1990 Baseline Emissions Inventory    
                          (Metric tons per day)                         
------------------------------------------------------------------------
                 Source type                     VOC      NOX       CO  
------------------------------------------------------------------------
Point Sources................................     25.6     70.9     13.8
Area Sources.................................    111.8      7.4      3.9
On-Road Mobile...............................    136.2    130.1    911.5
Non-Road Mobile..............................     57.9     85.2    521.1
Biogenic.....................................     37.3  .......  .......
                                              --------------------------
    Total....................................    368.8    293.6   1450.3
------------------------------------------------------------------------
Source: 1993 Ozone Plan, Appendix B, Exhibit 1.                         

    For use in its 15 percent ROP analysis, EPA has slightly modified 
the State's 1990 base year inventory to reflect the Agency's delisting 
of perchloroethylene (used primarily as a drycleaning solvent) as a VOC 
(61 FR 4588 (February 7, 1996)), a revised version of EPA's MOBILE5a 
on-road motor vehicle emission estimation model, and slightly revised 
inputs to that model to be consistent with base

[[Page 3689]]

year and future year analyses.3 These modifications 
decreased the submitted base year area source inventory by 1.2 metric 
tons per day and the on-road mobile source inventory by 0.6 metric tons 
per day for a total decrease of 1.8 metric tons per day.
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    \3\ The modifications that EPA used in its analysis do not 
affect the approvability of the State's 1990 base year emissions 
inventory. The delisting of perchloroethylene occurred after the 
statutory due date for the inventory. In addition, states were not 
required to upgrade to the later version of MOBILE5a for their base 
year inventories. Reference 5. Finally, the principle MOBILE5a 
modification was to use minimum and maximum daily temperatures to 
calculate temperature corrections to VOC exhaust emissions, hot soak 
evaporative emissions, and resting loss and running loss emissions 
instead of a single ambient temperature as was done by Arizona. 
Although EPA does not recommend the use of a single ambient 
temperature to calculate these emissions, the impact on the base 
year inventory in this case is so slight (less than 0.6 metric tons 
per day out of an inventory of 136 metric tons per day or less than 
0.5 percent) as to not constitute grounds for disapproval.
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B. Calculation of the 15 Percent ROP Target

    A number of steps are necessary to calculate the 15 percent ROP VOC 
target emission level. First, the 1990 base year inventory must be 
revised to exclude sources outside the nonattainment area, biogenic 
emissions, and any VOC emission reductions that will accrue from the 
FMVCP and federal RVP standards during the 1990-1996 period. The 
resulting inventory is referred to as the ``adjusted base year 
inventory.'' For 15 percent ROP plans that rely on post-1996 emissions 
reductions, the adjusted base year inventory must also exclude any VOC 
emission reductions resulting from the FMVCP and federal RVP standards 
from 1996 until the projected date by which the 15 percent ROP will be 
demonstrated (henceforth referred to as the demonstration year). See 
Reference 4. Procedures for calculating emission reductions from the 
FMVCP and federal RVP standards are discussed in Reference 1 (page 
13507) and Reference 6. Table 2 presents the adjusted base year 
inventory.

                Table 2.--Adjusted Base Year Inventories                
------------------------------------------------------------------------
                                                               Adjusted 
                                                              base year 
                                                 Adjustment   inventory 
                                                 (mt VOC/d)   (mt VOC/d)
------------------------------------------------------------------------
1990 Base year inventory......................  ...........        367.0
Stationary sources outside of the                                       
 nonattainment area...........................         -1.8  ...........
Biogenic emissions............................        -37.3  ...........
1990 nonattainment area base year                                       
 anthropogenic inventory......................  ...........        327.9
FMVCP/RVP 1990-1996...........................        -47.4  ...........
Adjusted base year inventory (1996)...........  ...........        280.5
------------------------------------------------------------------------

    The target level of VOC emissions for demonstrating 15 percent ROP 
is then calculated by multiplying the adjusted base year inventory by 
0.15, adding the VOC reductions from any RACT and/or I/M corrections 
and from the FMVCP and federal RVP regulations, then subtracting this 
total from the 1990 nonattainment area base year anthropogenic 
inventory.

                                                   Table 3.--15 Percent Rate of Progress Target Levels                                                  
                                                                (Metric tons of VOC/day)                                                                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                              (C) 1990                                                         (H) 1996 
                                                    (A) 1990     (B) Red.    adj. base     (D) 15%      (E) Red.    (F) RACT &   (G) Needed     target  
                  July 1, year                      ROP base   from FMVCP/  year EI (A-     target    from FMVCP/      I/M       Red (B + D    emission 
                                                    year EI    RVP (90-96)       B)       (0.15 x C)  RVP (96-99)  corrections    + E + F)   level (A-G)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1996............................................        327.9         47.4        280.5         42.1  ...........          2.3         91.8        236.1
1998............................................        327.9         47.4        280.5         42.1          3.4          2.3         95.2        232.7
1/1/1999........................................        327.9         47.4        280.5         42.1          4.2          2.3         96.0        231.9
4/1/1999........................................        327.9         47.2        280.5         42.1          4.6          2.3         96.4        231.5
1999............................................        327.9         47.4        280.5         42.1          5.0          2.3         96.8        231.1
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: January 1, 1999 and April 1, 1999 values are interpolated between 1998 and 1999 values.                                                           

    To demonstrate a 15 percent rate of progress, projected 1996 
emissions, accounting for growth after 1990 and including any 
adjustments for FMVCP/RVP emission reduction occurring after 1996, must 
be at or below the target emission level.

C. 15 Percent Demonstration

    EPA proposes to determine that the Phoenix area will have 
sufficient controls in place by no later than April 1, 1999 to meet the 
15 percent rate of progress requirement and that this date is the most 
expeditious date practicable for achieving the 15 percent target based 
on the set of controls EPA has proposed for crediting in the 15 percent 
demonstration and the unavailability of any other practicable controls 
that could advance the date.
    Table 4 presents the projected controlled 1996 inventory and Table 
5 lists the control measures that make up the 15 percent demonstration. 
EPA notes that the State included a number of adopted and implemented 
control measures in its 15 percent plan and Voluntary Early Ozone Plan 
that have not been credited in this 15 percent demonstration because 
they are not yet in the SIP. These measures remain creditable in future 
ROP demonstrations to the extent they are SIP approvable.

   Table 4.--1996 Projected Inventory for April 1, 1999 Demonstration   
------------------------------------------------------------------------
                                                              Emissions 
                      Source  Category                         (mt VOC/ 
                                                                 day)   
------------------------------------------------------------------------
On-Road....................................................         76.7
Non-Road...................................................         43.0
Point......................................................         18.2
Area.......................................................         93.3
Total......................................................        231.2
Target Level...............................................        231.5
Surplus emission reductions................................          0.3
------------------------------------------------------------------------


[[Page 3690]]


    Table 5.--Control Measures Making Up the 15 Percent Demonstration   
------------------------------------------------------------------------
                                                           Adjusted 1996
             Category                  Approval status     reduction (mt
                                                              VOC/d)    
------------------------------------------------------------------------
Arizona Vehicle Emissions           Approved 60 FR 22518             3.3
 Inspection Program.                 (May 8, 1995).                     
Arizona Summertime Gasoline         Approved 62 FR 31734            13.0
 Volatility Limitation (7.00 psi     (June 11, 1997).                   
 RVP) (on-road and nonroad).                                            
Federal RFG--Phase I (on-road and   Approved June 3,                 6.0
 nonroad).                           1997 (62 FR 30260).                
National Phase I Non-Road Engines   Promulgated July 3,              9.1
 Standards.                          1995 (60 FR 34582).                
MCESD Rules 331, 336, 337, 342,     Approval signed 1/20/           11.3
 346, and 351.                       97.                                
Stage II vapor recovery...........  Approved 11/1/94 (59             9.8
                                     FR 54521).                         
MCESD Rule 335 architectural        Approved 1/6/92 (57              2.9
 coatings.                           FR 354).                           
Autobody refinishing (national      National rule                    1.4
 rule).                              proposed April 30,                 
                                     1996 (61 FR 19005)                 
                                     and December 30,                   
                                     1997 (62 FR 67784).                
Consumer products (national rule).  National rule                    2.4
                                     proposed April 2,                  
                                     1996 (61 FR 14531).                
Architectural and industrial        National rule                    0.6
 coatings (national rule).           proposed June 25,                  
                                     1996 (61 FR 32729).                
Total.............................  ....................            59.8
------------------------------------------------------------------------

Arizona Vehicle Emissions Inspection Program
    Enhancements to Arizona's vehicle emission inspection program were 
approved by EPA in 1995 and included IM240 testing for 1981 and newer 
vehicles, pressure and purge testing, and tighter cut points. 
Enhancements to the program were implemented beginning in January, 
1995. Emission reductions credited in the 15 percent demonstration 
reflect the program as actually implemented in 1996 (that is, without 
the final cut points or the purge test) and assume no further 
improvements.
    Arizona's enhanced I/M program also includes a remote sensing 
program (RSP). The EPA's proposed 15 percent ROP demonstration, 
however, does not currently include any reductions from this program. 
The State has estimated reductions from the RSP of 3.7 metric tons of 
VOC per day in 1996 based on the analysis in the 1993 MAG plan 
4 (Reference 7); however, EPA does not currently have 
sufficient information to determine an appropriate credit for use in 
its own analysis. EPA proposes to credit the non-enhanced RSP with up 
to 3.7 metric tons per day if it obtains sufficient information to 
determine the appropriate credit.
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    \4\ Since EPA's approval of the State's VEIP, the State has 
enhanced the implementation of the RSP. This measure is not 
currently in the SIP. The State's reduction estimate is for the non-
enhanced program.
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Summertime Gasoline Volatility Limit (7 psi RVP)
    The State's 7 psi summertime gasoline volatility limit was fully 
implemented in 1996. Emission reduction credit proposed for the 15 
percent plan assumes a decrease in the RVP limit from the federally-
required 7.8 psi to 7 psi and is calculated for both on-road motor 
vehicles and non-road gasoline-powered vehicles.
Federal Reformulated Gasoline Program--Phase I
    The Federal reformulated gasoline program became effective in the 
Phoenix area at the retail level on August 4, 1997. 62 FR 30260 (June 
3, 1997). As with RVP, the program affects both on-road motor vehicle 
emissions and non-road gasoline-powered engine emissions. The proposed 
emission reduction credit for RFG includes emission reductions from 
both categories.
    Arizona has adopted its own Clean Burning Gasoline (CBG) Program to 
replace the federal RFG program beginning in June, 1998. EPA has 
recently proposed to approve that program and Arizona has requested to 
opt-out of the Federal RFG program should EPA grant final approval to 
its CBG program. Since the State's program has been designed to achieve 
more emission reductions than available under EPA's RFG regulations, 
there will be no loss of emission reductions as the Phoenix area 
transitions from the federal to the state program; therefore, for the 
purposes of this 15 percent demonstration, EPA proposes to grant 
emission reductions equivalent to those proposed above for the federal 
RFG program. If EPA approves the CBG program, the Agency will give it 
the same credit as federal RFG for the purposes of the 15 percent 
demonstration. Emissions reductions from the CBG program, if approved 
by EPA, that are in excess of those proposed for credit above may be 
used by the State in any future rate-of-progress demonstrations.
Phase I Non-road Engine Standards
    On July 3, 1995, EPA promulgated Phase I emission standards for new 
spark-ignition (gasoline) engines of 25 horsepower or less. These 
engines include those typically used in lawnmowers and other 
residential gardening equipment, commercial lawn and garden equipment, 
and small pumps and compressors, and some other industrial/construction 
equipment. The Phase I standards were effective with model year 1997 
engines and are expected to reduce VOC emissions from the impacted 
equipment types by 22.9 percent in 1999. See Reference 8.
Stage II Vapor Recovery
    EPA approved Arizona's Stage II Vapor Recovery rules (Arizona 
Revised Statutes Secs. 41-2131 through 2133 and Arizona Administrative 
Code R4-31-901 through R4-31-910) in 1994. This program required the 
installation of California Air Resources Board (CARB) certified stage 
II vapor recovery equipment at service stations by November 15, 
1994.5
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    \5\ In its 15 percent plan, the State did not explicitly 
identify several measures that had been implemented after 1990 but 
prior to the development of the plan even though these measures are 
fully creditable in 15 percent plans. These measures include the 
Stage II vapor recovery program and the final limits in Maricopa 
County's architectural coating rule. The State, however, did 
incorporate reductions from these measures into the projected 1996 
inventory. For the purposes of EPA's analysis, these measures and 
their associated reductions (which are identical to the ones 
calculated by the State) have been explicitly identified.

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[[Page 3691]]

MCESD Rules
    Concurrently with this proposal, EPA has approved MCESD Rules 331, 
336, 337, 342, 346, and 351 into the SIP. Rule 331 limits the emissions 
of VOCs from surface cleaning and degreasing operations. Rule 336 
limits emissions from surface coating operations. Rule 337 limits 
emissions of VOCs from screen, gravure, letterpress, flexographic and 
lithographic printing processes, including related coating and 
laminating processes. Rule 342 controls the emissions of VOCs emanating 
from applying coatings of finishing materials to furniture or fixtures 
made of wood or wood derived materials. Rule 346 limits VOC emissions 
from the surface preparation and coating of wood millwork such as 
shutters, doors, windows and their associated woodwork, and Rule 351 
controls emissions of VOCs from organic liquid loading operations at 
bulk plants and bulk terminals. These rules, which affect emissions 
from both point and area sources, result in a total reduction of 9.2 
metric tons per day from point sources and 2.1 metric ton per day from 
area sources.
Architectural Coatings
    EPA approved MCESD's Rule 335 Architectural Coatings in 1992. This 
rule had a number of compliance deadlines in 1991 and reductions from 
these final deadlines are fully creditable to the 15 percent plan. See 
also Footnote 5.
Consumer Products
    On April 2, 1996, EPA proposed national VOC emission standards for 
24 categories of consumer products requiring compliance with the 
standards by 1997. Under EPA policy, 15 percent demonstrations may 
credit an overall 20 percent reduction in emissions from the consumer 
products categories covered by this rule. Reference 9. For Maricopa 
County, this rule will reduce VOC emissions from consumer products by 
an estimated 2.4 metric tons per day.
    This measure, as well as the national autobody refinishing rule and 
the national architectural and industrial maintenance coating rule 
discussed in the following sections are statutorily required. See CAA 
section 183(e) and ``Consumer and Commercial Products: Schedule for 
Regulation,'' 60 FR 15264 (March 23, 1995). The Agency anticipates at 
this time that rules will be finalized by mid-1998. EPA has recently 
been sued to enforce the requirement to promulgate these rules and is 
currently discussing a schedule for their promulgation. Sierra Club v. 
Browner, CIV No. 97-984 PLF (D.D.C.).
    The fact that these rules are required federal rules, and will 
likely soon have court-ordered deadlines, creates circumstances that 
allow EPA to consider them as part of 15 percent plans. Taking credit 
for reductions from proposed required federal measures is consistent 
with the overall scheme of the Clean Air Act ozone nonattainment 
provisions, as well as the relevant provisions by their terms. Congress 
anticipated that these federal measures would contribute to both 
progress toward attainment and attainment of the ozone standard and 
thus these measures are an integral part of Congress' blueprint for 
ozone attainment. Therefore, EPA concludes that implementation plans 
should be allowed to account for those reductions in both attainment 
and rate-of-progress plans. See Reference 10 and 61 FR 10920, 10936 
(March 18, 1996).
    Among the categories covered by the national rule for consumer 
products is windshield wiper fluids. MCESD has also adopted Rule 344 to 
control emissions from windshield wiper fluids. EPA is currently 
discussing the enforceability of the rule with the County and has not 
approved the measure into the SIP, hence the emission reductions from 
this category are based on the national rule and not Rule 344.
Autobody Refinishing
    On April 30, 1996 and December 30, 1997, EPA proposed a national 
rule governing emissions from autobody refinishing coatings. Under EPA 
policy (Reference 11), a 37 percent reduction in emissions from 
autobody refinishing may be credited to this national rule. For 
Maricopa County, this rule will reduce VOC emissions from autobody 
refinishing by an estimated 1.4 metric tons per day.
    MCESD has also adopted Rule 345 to control emissions from autobody 
refinishing. EPA is currently discussing the enforceability of this 
rule with the County and has not approved the measures into the SIP, 
hence the emission reductions from this category are based on the 
national rule and not Rule 345.
Architectural and Industrial Maintenance Coatings
    On June 25, 1996 EPA proposed a national rule limiting the VOC 
content of numerous categories of architectural and industrial 
maintenance (AIM) coatings. Under EPA policy (Reference 12), a 20 
percent reduction in emissions from the AIM coatings rule may be 
credited to this national rule for areas without architectural coating 
rules. As discussed above, Maricopa County already has in place Rule 
335 that limits VOC content of architectural coatings. The national 
rule, as proposed, includes new or tighter limits than are currently in 
Rule 335 for a number of coating categories (e.g., traffic marking); 
therefore, the Phoenix area will realize additional emission reductions 
from the national rule of 0.6 metric tons per day by mid-1999.

D. ``As Soon As Practicable'' Demonstration

    As discussed above, CAA section 182(b)(1) requires that all 
moderate and above ozone nonattainment areas prepare plans that provide 
for a 15 percent VOC emission reduction by November 15, 1996. Since 
this deadline has passed, in order to demonstrate that the Phoenix area 
has met the CAA section 182(b)(1) requirement, it must be demonstrated 
that the 15 percent reduction will be achieved as soon as practicable 
by showing that the applicable implementation plan contains all VOC 
control measures that are practicable for the Phoenix area and that 
meaningfully accelerate the date by which the 15 percent level is 
achieved. Measures that provide only an insignificant additional amount 
of reductions or could not be implemented soon enough to meaningfully 
advance the date by which the 15 percent is demonstrated are not 
required to be implemented to meet this test.
    For the purposes of this 15 percent demonstration only, EPA is 
proposing to interpret ``significant emission reduction'' to be equal 
to or more than one-half of one percent (0.5 percent) of the total 
emission reduction needed to meet the 15 percent ROP requirement in 
1999 for the Phoenix nonattainment area. One-half of one percent is 0.5 
metric tons per day.
    For the purposes of this 15 percent demonstration only, EPA is also 
proposing to interpret ``to meaningfully accelerate the date by which 
the 15 percent is demonstrated'' to mean three or more months. Because 
April 1 is before the June 1 start of the Phoenix ozone season, the 
ambient air quality benefit that would be gained by advancing the 
demonstration date by less than three months in advance of April 1 
would not justify the implementation of additional federal measures in 
the Phoenix area for the purposes of demonstrating 15 percent. On the 
other hand, to advance the benchmark demonstration date for the ``as 
soon as practicable'' test much more than three months (that is, before

[[Page 3692]]

January 1, 1999) would leave so little time between the projected 
effective date of this action (July 1, 1998) and the benchmark 
demonstration date that no measure could be reasonably implemented in 
that short time period. Based on this reasoning, EPA believes that 
three months is an appropriate benchmark for this ``as soon as 
practicable'' test in this case.
    Based on its analysis and the set of SIP-approved and federal 
measures proposed for credit above, EPA is projecting that the Phoenix 
area will meet the required 15 percent reduction no later than April 1, 
1999. An additional emission reduction totaling at least 0.6 metric 
tons per day would be needed by January 1, 1999 to advance the 
demonstration date to January 1, 1999. See TSD, Section III.D. 
Therefore, to show that April 1, 1999 is the ``as soon as practicable 
date'' to demonstrate a 15 percent ROP for the Phoenix area, it must be 
shown that there are no measures that achieve a 0.6 metric tons per day 
reduction by January 1, 1999.
    EPA analyzed a number of control measures that could potentially 
advance the date by which the 15 percent reduction is demonstrated in 
the Phoenix area and has found that there are no measures or 
combination of measures that would advance the date by more than a de 
minimis amount. These measures included ones recommended by EPA (see 
``Sample City Analysis Comparison of Enhanced I/M Reductions Versus 
Other 15 Percent ROP Plan Measures,'' which is an attachment to 
Reference 2), by the State and Territorial Air Pollution Program 
Administrators/Association of Local Air Pollution Control Officials 
(see ``Meeting the 15-Percent Rate-of-Progress Requirement Under the 
Clean Air Act: A Menu of Options,'' STAPPA/ALAPCO, September 1993), and 
in the Report of the Governor's Air Quality Strategies Task Force 
(December 2, 1996), and the ``Reanalysis of the Metropolitan Voluntary 
Early Ozone Plan,'' ADEQ et al, October 1997.
    Most of the measures EPA analyzed generated very small additional 
emission reductions by January 1, 1999 (e.g., a complete ban on open 
burning) or could not be implemented to achieve emission reduction 
before January 1, 1999 (e.g., I/M improvements). In many cases, the 
State is already developing (e.g., industrial cleaning solvents) or had 
already adopted a similar measure (e.g., graphic arts) so that little, 
if any, additional reductions would be achieved by a federal measure. 
The complete analysis of potential measures is contained in the TSD for 
this proposal.
    Based on this analysis, EPA has concluded that there are no 
reasonable measures or combination of reasonable measures that could 
meaningfully advance the demonstration date; therefore, the Agency 
proposes to find that April 1, 1999 is the most expeditious date 
practicable to demonstrate the 15 percent reduction.

III. Conclusion

    Pursuant to its authority under CAA section 110(c) and for the 
reasons discussed above, EPA is proposing to determine that the Phoenix 
metropolitan area has in place or will have in place sufficient control 
measures to meet the 15 percent ROP requirement for VOCs in CAA section 
182(b)(1)(A) as soon as practicable. This proposed determination is 
predicated on EPA's reanalysis of the State's 15 percent ROP plan to 
reflect the realities of the VEIP, reductions from additional controls 
adopted by the State, and additional federal regulations.
    EPA is also proposing to approve the State's 1990 base year 
inventory under CAA sections 110(k)(2) and 182(a)(1).

IV. Administrative Requirements

A. Executive Order (E.O.) 12866

    The Office of Management and Budget has exempted this action from 
E.O. 12866 review.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 601 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 economic 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.
    This proposal simply presents the analysis of the emission impacts 
on the Phoenix metropolitan area of already adopted or proposed State 
and federal rules. This action neither proposes the promulgation of 
additional measures nor requires Arizona or its local jurisdictions to 
adopt or implement additional measures beyond those that they currently 
have adopted and implemented or have been proposed or implemented at 
the federal level. As such, it does not propose to regulate any 
entities. Therefore, pursuant to 5 U.S.C. 605(b), EPA certifies that 
today's proposed action does not have a significant impact on a 
substantial number of small entities within the meaning of those terms 
for RFA purposes.

C. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), P.L. 
104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, when EPA promulgates ``any general notice of proposed 
rulemaking that is likely to result in promulgation of any rule that 
includes any Federal mandate that may result in the expenditures by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more'' in any one year. A ``Federal 
mandate'' is defined, under section 101 of UMRA, as a provision that 
``would impose an enforceable duty'' upon the private sector or State, 
local, or tribal governments'', with certain exceptions not here 
relevant. Under section 203 of UMRA, EPA must develop a small 
government agency plan before EPA ``establish[es] any regulatory 
requirements that might significantly or uniquely affect small 
governments''. Under section 204 of UMRA, EPA is required to develop a 
process to facilitate input by elected officers of State, local, and 
tribal governments for EPA's ``regulatory proposals'' that contain 
significant Federal intergovernmental mandates. Under section 205 of 
UMRA, before EPA promulgates ``any rule for which a written statement 
is required under [UMRA section] 202'', EPA must identify and consider 
a reasonable number of regulatory alternatives and either adopt the 
least costly, most cost-effective or least burdensome alternative that 
achieves the objectives of the rule, or explain why a different 
alternative was selected.
    As explained above, sections 202, 203, 204, and 205 of UMRA do not 
apply to today's action because it does not impose an enforceable duty 
on or otherwise affect any entity. Therefore, EPA is not required and 
has not taken any actions under UMRA.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Ozone.


[[Page 3693]]


    Dated: January 20, 1998.
Carol M. Browner,
Administrator.

References

    1. General Preamble for the Implementation of Title I of the Clean 
Air Act Amendments of 1990, April 16, 1992, 57 FR 13498.
    2. Memorandum, John S. Seitz, Director of the Office of Air Quality 
Planning and Standards, and Richard B. Ossias, Deputy Associate General 
Counsel to Regional Air Division Directors; ``15 Percent VOC SIP 
Approvals and the `As Soon As Practicable' Test;'' February 12, 1997 
including the attachment ``Sample City Analysis Comparison of Enhanced 
I/M Reductions Versus Other 15 Percent ROP Plan Measures,'' E.H. Pechan 
and Associates, December 12, 1996.
    3. Note, Margo Oge, Director Office of Mobile Sources and John 
Seitz, Director of OAPQS to Regional Division Directors; re: Date by 
which States Need to Achieve all the Reductions Needed for the 15% Plan 
from I/M and Guidance for Recalculation, August 13, 1996.
    4. Memorandum, Gay MacGregor, Director Regional and State Programs 
Division, OMS and Sally Shaver, Director, Air Quality Strategies and 
Standards Division, OAQPS to Regional Air Division Directors; 
``Modeling 15% VOC Reduction(s) from I/M in 1999--Supplemental 
Guidance;'' December 23, 1996.
    5. Memorandum, Philip A. Lorang, Director, Emission Planning and 
Strategies Division, OMS to Regional Air Division Directors; ``Release 
of MOBILE5a Emission Factor Model,'' March 29, 1993.
    6. OAQPS, U.S. EPA. 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. October 1992.
    7. Letter, Nancy Wrona, Director, Air Quality Division, ADEQ; to 
David Howekamp, Director, Air and Toxics Division, EPA-Region 9; 
``Submittal of Additional Information in Support of Approval of 15% 
Rate of Progress Ozone Plan for Maricopa County;'' September 11, 1997.
    8. Memorandum, Philip A. Lorang, Director, Emission Planning and 
Strategies Division, OMS to Regional Air Division Directors; ``Future 
Nonroad Emission Reduction Credits for Court-Ordered Nonroad 
Standards;'' November 29, 1994.
    9. Memorandum, John S. Seitz, Director, OAQPS to Regional Air 
Division Directors; ``Regulatory Schedule for Consumer and Commercial 
Products under Section 182(e) of the Clean Air Act;'' June 22, 1995.
    10. Memoranda, Mary Nichols, Assistant Administrator for Air and 
Radiation, U.S. EPA to Regional Administrators, Regions 1-10; ``SIP 
Credits for Federal Nonroad Engine Emissions Standards and Certain 
Other Mobile Source Programs;'' November 23, 1994 and January 30, 1996.
    11. Memorandum, John S. Seitz, Director, OAQPS to Regional Air 
Division Directors; ``Credit for the 15 Percent Rate-of-Progress Plans 
for Reductions from the Architectural and Industrial Maintenance 
Coating Rule and the Autobody Refinishing Rule;'' November 29, 1994.
    12. Memorandum, John S. Seitz, Director, OAQPS to Regional Air 
Division Directors; ``Credit for the 15 Percent Rate-of-Progress Plans 
for Reductions from the Architectural and Industrial Maintenance (AIM) 
Coating Rule;'' March 22, 1995.

[FR Doc. 98-1765 Filed 1-23-98; 8:45 am]
BILLING CODE 6560-50-U