[Federal Register Volume 64, Number 39 (Monday, March 1, 1999)]
[Proposed Rules]
[Pages 9952-9957]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4966]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region II Docket No. NJ33-1-190 FRL-6237-1]


Approval and Promulgation of Implementation Plans; New Jersey 15 
Percent Rate of Progress Plans, Recalculation of 9 Percent Rate of 
Progress Plans and 1999 Transportation Conformity Budget Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing 
approval of a New Jersey State Implementation Plan (SIP) revision 
involving the State's Ozone plan. Specifically, EPA's proposed approval 
includes the 15 Percent Rate of Progress (ROP) Plans, recalculation of 
the 9 Percent ROP Plans, updates to the 1990 base year emission 
inventories, 1996 and 1999 projection year emission inventories, and 
the 1999 transportation conformity budgets. The intended effect of this 
action is to approve programs required by the Clean Air Act which will 
result in emission reductions that will help achieve attainment of the 
1-hour national ambient air quality standard for ozone. In addition, a 
final approval of this SIP revision would correct the deficiency which 
led EPA to disapprove on December 12, 1997 New Jersey's 15 Percent ROP 
Plans. Consequently, the sanction and Federal Implementation Plan (FIP) 
process that was started by EPA's disapproval would terminate when EPA 
takes action to approve in final form, today's proposed approval. The 
clocks associated with the State's failure to implement the enhanced 
inspection and maintenance program continue to run.

DATES: Comments must be received on or before March 31, 1999.

ADDRESSES: All comments should be addressed to: Raymond Werner, Acting 
Chief, Air Programs Branch, Environmental Protection Agency, Region II 
Office, 290 Broadway, New York, New York 10007-1866.
    Copies of the state submittal are available at the following 
addresses for inspection during normal business hours:

    Environmental Protection Agency, Region II Office, Air Programs 
Branch, 290 Broadway, 25th Floor, New York, New York 10007-1866.
    New Jersey Department of Environmental Protection and Energy, 
Office of Air Quality Management, Bureau of Air Quality Planning, 401 
East State Street, CN418, Trenton, New Jersey 08625.

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

SUPPLEMENTARY INFORMATION:

I. Introduction/Background

    Section 182 of the Clean Air Act (Act) specifies what states are 
required to submit to EPA for areas classified as nonattainment for 
ozone. On April 30, 1997 (62 FR 23410), EPA proposed approval of New 
Jersey's plan designed to meet several of these Act requirements, 
including all of those which were subsequently revised by New Jersey 
and are being proposed for action today. On June 30, 1997 (62 FR 
35100), EPA either approved or gave conditional interim approval to 
these requirements. The reader is referred to these actions for further 
details.
    On December 12, 1997, EPA announced by letter that the conditional 
approval of New Jersey's 15 Percent ROP Plans had converted to a 
disapproval because the enhanced inspection and maintenance program, 
which was part of the State's plans, did not start as scheduled and 
resulted in an emission reduction shortfall. This disapproval applied 
to the New Jersey portions of the two severe ozone nonattainment areas: 
the New York, Northern New Jersey, Long Island Area, and the 
Philadelphia, Wilmington, Trenton Area. For the purposes of this 
action, these areas will be referred to as, respectively, the Northern 
New Jersey nonattainment area (NAA) and the Trenton NAA.

II. State Submittal

    On February 10, 1999, Commissioner Shinn of the New Jersey 
Department of Environmental Protection (NJDEP) submitted a request to 
EPA to process its revision of the 15 Percent ROP portion of its ozone 
SIP. This SIP revision includes: updates to the 1990 base year emission 
inventories, 1996 and 1999 projection year emission inventories, 15 
Percent ROP Plans and the 1999 transportation conformity budgets. The 
intended effect is to provide sufficient emission reductions to address 
the shortfall.

A. Revisions to the 1990 Base Year and 1996 and 1999 Projection Year 
Emission Inventories

    As part of New Jersey's efforts to continually improve the accuracy 
of its emission estimates, the NJDEP identified an update/correction to 
the estimate of emissions from landfills which affects the 1990 base 
year and 1996 and 1999 projection year emission inventories. This 
update/correction is the result of three changes: (1) revised modeling 
guidance from the USEPA for estimating landfill emissions; (2) 
correction of errors identified in the NJDEP's landfill emissions data 
base; and (3) updated landfill emissions data. The changes to these 
inventories are summarized in Table 1.

         Table 1.--1990 VOC Emission Inventories, and 1996 and 1999 VOC Projection Emission Inventories
----------------------------------------------------------------------------------------------------------------
                                      Northern New Jersey NAA (VOC tons/         Trenton NAA (VOC tons/day)
                                                     day)                 --------------------------------------
                                   ---------------------------------------
                                        1990         1996         1999         1990         1996         1999
----------------------------------------------------------------------------------------------------------------
Major Point Sources...............       238.02       211.93       216.28       111.68        85.87        87.93
Minor Point Sources...............       170.24       162.81       166.82        63.49        61.41        62.61
Area Sources......................       115.52       117.29       118.01        33.78        35.53        36.36
Highway Mobile Sources............       296.66       246.71       242.41       103.45        89.22        88.17
Off-Highway Mobile Sources........       136.58       139.82       141.44        45.76        48.13        49.34
Biogenic Sources \1\..............       209.66  ...........  ...........       203.20  ...........  ...........
Use of Pre-1990 Banked ERC........  ...........         5.00         5.00  ...........         3.00         3.00
                                   -----------------------------------------------------------------------------

[[Page 9953]]

 
    Total.........................      1166.69       883.56       889.96       561.35       323.16       327.42
----------------------------------------------------------------------------------------------------------------
\1\ The State did not account for biogenic sources in its 1996 and 1999 Projections.

    Using the revised emission inventories, New Jersey recalculated 
target emission reductions. They used the same procedure used in its 
earlier 15 Percent ROP Plans. A detailed discussion of this procedure 
is contained in the April 30, 1997 Federal Register (62 FR 23413). 
Table 2 summarizes the original and revised 15 Percent ROP 
calculations.

                         Table 2.--Original and Revised 15 Percent ROP Plan Calculations
----------------------------------------------------------------------------------------------------------------
                                                                  Original 15% plan         Revised 15% plan
                                                             ---------------------------------------------------
                                                                Northern                  Northern
                    Component of the plan                      New Jersey  Trenton NAA   New Jersey  Trenton NAA
                                                                NAA VOC     VOC (tons/    NAA VOC     VOC (tons/
                                                               (tons/day)      day)      (tons/Day)      day)
----------------------------------------------------------------------------------------------------------------
1990 Base Year Emission Inventory...........................      1173.96       564.67      1166.69       561.35
1990 Baseline Emission Inventory............................       958.19       359.90       950.91       356.59
Non-Creditable Emission Reductions..........................        69.18        21.17        69.18        21.17
1990 Adjusted Baseline Emission Inventory...................       889.01       338.74       881.73       335.42
15% Reduction Target........................................       133.35        50.81       132.26        50.31
1996 Target Emission Inventory..............................       755.66       287.93       749.47       285.11
1996 Projected Emission Inventory...........................       885.48       325.11       883.56       323.16
Required 15 Percent Reductions..............................       129.82        37.18       134.10        38.05
----------------------------------------------------------------------------------------------------------------

    Based on EPA's review of the methodology New Jersey used to make 
these calculations, EPA proposes to approve the revisions to the 1990 
base year VOC emission inventories, and 1996 and 1999 projection year 
VOC emission inventories. In addition, EPA proposes to approve the 15 
Percent ROP calculations.

B. New 15 Percent ROP Plans

    New Jersey has provided a plan to achieve the reductions required 
for the two nonattainment areas. The following is a concise description 
of each control measure New Jersey plans on using to achieve the 
emission reductions in its 15 Percent ROP Plans. All the State measures 
have been adopted and submitted as SIP revisions except for 
administrative changes to New Jersey's Low Emission Vehicle Program. 
The revisions to New Jersey's Low Emission Vehicle Program are in the 
proposal stage and are needed to formalize New Jersey's opt-in to the 
National Low Emission Vehicle Program which is included in the 15 
Percent ROP Plans. EPA anticipates that New Jersey will submit these 
administrative changes by March 1, 1999. EPA will not include these 
emission reductions in the final action unless New Jersey has submitted 
them in final form.

            Table 3.--Summary of Revised 15 Percent ROP Plans
------------------------------------------------------------------------
                                           Northern New
                                          Jersey NAA VOC    Trenton NAA
                                            (tons/day)    VOC (tons/day)
------------------------------------------------------------------------
Required VOC reductions to meet 15                134.10           38.05
 Percent Plan...........................
Previous 15 Percent ROP Plan measures:
    Mobile Source control measures:
        Tier 1 vehicles.................           14.85            5.53
        Reformulated gasoline--on                  45.98           16.77
         highway........................
        Reformulated gasoline--off                  4.37            1.36
         highway........................
        Enhanced Inspection and                     0.00            0.00
         Maintenance....................
    Stationary source control measures:
        Barge loading...................           22.75            1.23
        Subchapter 16...................           16.74            3.79
        NJ consumer products rule.......            5.98            1.84
        Federal HON rule................            0.12            0.06
                                         -------------------------------
            Total VOC reductions........          110.79           30.58
Shortfall...............................           23.31            7.47
New Control Measures:

[[Page 9954]]

 
    Mobile Source control measures:
        National Low Emission Vehicle               0.48            0.18
         program........................
        Federal Off highway small                  16.16            5.70
         engines........................
        Revisions to Basic I/M program..            2.47            1.10
    Stationary Source control measures:
        NJ Landfill controls............            0.37            0.12
        NJ Architectural Coatings rule..            4.91            1.51
        Federal Architectural Coatings              3.22            1.15
         rule...........................
        Federal Autobody Refinishing               13.23            3.44
         rule...........................
VOC reductions from new control measures           40.84           13.20
                                         -------------------------------
    Total VOC reductions from all                 151.63           43.78
     measures...........................
Surplus.................................           17.53            5.73
------------------------------------------------------------------------

C. Measures Achieving the Projected Reductions

(1) Previous 15 Percent ROP Plan Measures
    New Jersey included all of the control measures previously 
contained in its 15 Percent ROP Plan in the new 15 Percent ROP Plans 
except enhanced inspection and maintenance (I/M). New Jersey assumed 
that no emission reductions from enhanced I/M would occur by November 
15, 1999 and so no credit is being taken for these initially 
anticipated reductions. These measures are summarized in Table 3. New 
Jersey is moving forward with implementing the Enhanced I/M program 
which should start inspecting vehicles in late 1999, thus providing 
reductions for years beyond 1999. The reader is referred to the 
original Federal Register documents for details on these non-I/M 
control measures.
(2) New Control Measures
National Low Emission Vehicle Program
    EPA proposed the National Low Emission Vehicle (NLEV) Program in 
September 1995 and promulgated a supplemental final rule for the NLEV 
Program on January 7, 1998 (63 FR 925). The program consists of the 
sale of low emission vehicles (LEVs) beginning with model year 1999 in 
the Ozone Transport Region (OTR), which includes New Jersey, and model 
year 2001 for the rest of the country (except California and other 
states implementing the California LEV program). Under the NLEV 
program, the emissions from all cars manufactured by an auto maker are 
averaged together and must meet an average emission standard. This 
average emission standard gets progressively more stringent, until in 
2001 that average would correspond to the emissions that would result 
if 100 percent of the vehicles met low emission vehicle standards. 
While the enforceability of the NLEV Program is the responsibility of 
EPA, New Jersey must make some administrative changes to its SIP. These 
were proposed in November 1998 and the changes need to be adopted and 
submitted to EPA by March 1, 1999. The 15 Percent ROP Plans take credit 
for only one year of the NLEV program, that is, through 1999. EPA 
agrees with the calculated emission reductions associated with this 
program. EPA proposes to approve reliance on these reductions, but EPA 
will not include them in the final action unless New Jersey has 
submitted them in final form.
Federal Nonroad Spark Ignition Engines
    On May 16, 1994, EPA published a notice of proposed rulemaking for 
small nonroad engines (59 FR 25399). The Federal Register notice, 
``Control of Air Pollution; Emission Standards for New Nonroad Spark-
Ignition Engines at or Below 19 Kilowatts.'' EPA estimates the proposed 
emission standards will result in a 32 percent reduction in VOC 
emissions and a 14 percent reduction in carbon monoxide emissions 
nationally, by the year 2020 when complete engine turnover is 
projected. In the July 3, 1995 Federal Register (60 FR 34581), EPA 
promulgated the first phase of the regulations to control emissions 
from new nonroad spark-ignition engines. This regulation is contained 
in the Code of Federal Regulations (CFR), Title 40, ``Part 90--Control 
of Emissions From Nonroad Spark-Ignition Engines.'' The second phase 
will be adopted in the future.
    EPA has determined that the first phase of the new nonroad 
standards will cause a reduction of VOC emissions by 13.1 percent in 
1997, 19.5 percent in 1998 and 23.9 percent in 1999 nationally. New 
Jersey applied these percentages to New Jersey's specific engine 
population, and calculated that the resulting VOC emission reductions 
in 1999 will be 16.16 tons per day in the Northern New Jersey 
Nonattainment area and 5.70 tons per day in the Trenton Nonattainment 
area. EPA agrees with the calculated emission reductions associated 
with this program.
Revisions to Basic Inspection and Maintenance Program
    Since 1990, New Jersey has made several changes to its basic (I/M) 
program. These included increased penalties and enforcement for failing 
to have valid inspection sticker, adding a test for the integrity of a 
vehicle's gas cap at centralized inspection stations, and adding a 
visual inspection of the gas cap and evaporative emission control 
system at decentralized inspection stations. New Jersey also changed 
the inspection frequency from annual to biennial in order to facilitate 
installation of test equipment needed for the enhanced I/M program. EPA 
final approval of this SIP revision is described in 63 FR 45402, August 
26, 1998. The changes in the inspection frequency reduces the emission 
benefits from the original program, but the additional test features, 
which were added, resulted in a net increase in emission reductions. 
EPA agrees with the emission reductions calculated by New Jersey. The 
emission reductions from this control measure have already been 
achieved.
New Jersey Architectural Coatings Rule
    New Jersey developed an architectural coatings regulation, 
Subchapter 23 ``Prevention of Air Pollution From Architectural Coatings 
and Consumer Products'' which was originally adopted in 1989 and 
subsequently revised. EPA

[[Page 9955]]

approved Subchapter 23 as part of the SIP on May 23, 1993 (58 FR 
29975). The regulation took effect in January 1990 for Group 1 products 
and March 1990 for Group 2 products. The regulation allowed coatings 
manufactured before 1990 to be sold until 1993. Because of the 
uncertainty in determining when the emission reductions occurred, New 
Jersey treated this source category as uncontrolled in the 1990 base 
year emission inventory and did not take credit in the original 15 
Percent ROP Plans. As part of this SIP revision, New Jersey reassessed 
the emission reductions which would be achieved from this regulation. 
For traffic paints and high performance maintenance coatings, New 
Jersey took no emission reduction credit because they were already 
included in the 1990 base year. For the remaining categories subject to 
Subchapter 23 limits, New Jersey calculated the emission reductions 
since all coatings sold after 1993 were required to comply.
    EPA agrees with the calculated emission reductions. The emission 
reductions from this control measure have already been achieved.
New Jersey Landfill Controls
    New Jersey has implemented a landfill closure program which 
requires the installation of a gas collection system and control 
system. EPA approved this as part of the SIP on June 29, 1990 (55 FR 
26687). The requirements only become applicable upon closure of the 
landfill and, therefore, the emission reductions from landfills closed 
after 1990 are creditable for 15 Percent ROP Plan purposes. EPA agrees 
with the calculated emission reductions. The emission reductions from 
this control measure have already been achieved.
Federal Architectural Coatings Rule
    EPA developed national regulations for architectural coatings as 
part of the larger requirement to control VOC emissions from certain 
categories of consumer and commercial products. EPA proposed the 
``National Volatile Organic Compound Emission Standards for 
Architectural Coatings'' (Architectural rule) on June 25, 1996 (61 FR 
32729), and September 3, 1996 (61 FR 46410). On September 11, 1998 (63 
FR 48848), EPA promulgated 40 CFR part 59, subpart D--``National 
Volatile Organic Compound Emission Standards For Architectural 
Coatings.'' The reader is referred to these Federal Registers for 
greater detail.
    New Jersey is taking credit only for the emission reductions 
associated with those categories of coatings where EPA's national rule 
goes beyond New Jersey's rule. EPA agrees with the calculated emission 
reductions and EPA guidance permits these emission reductions to be 
used in 15 and 9 Percent ROP Plans.
Federal Autobody Refinishing Rule
    EPA developed national regulations for Automobile refinish coatings 
and coating components. These were proposed on April 30, 1996 (61 FR 
19005) and on September 11, 1998 (63 FR 48806), EPA promulgated 40 CFR 
part 59, subpart B--``National Volatile Organic Compound Emission 
Standards for Automobile Refinish Coatings'' (subpart B). The reader is 
referred to these Federal Registers for greater detail. EPA agrees with 
the calculated emission reductions. The emission reductions from this 
control measure will be achieved by November 15, 1999.
15 Percent ROP Plan Evaluation
    New Jersey has identified control measures necessary for achieving 
the required emission reductions and in addition, they provided surplus 
reductions. All the measures have been adopted and are either 
implemented or will be shortly. EPA is proposing to find that the 15 
Percent ROP Plans contain the necessary measures as identified in Table 
3 to achieve the required emission reductions. The original 15 Percent 
ROP Plans demonstrated that the emission reductions would be achieved 
by November 15, 1999. The new 15 Percent ROP Plans will also achieve 
these reductions by November 15, 1999. Therefore, EPA is proposing 
approval of the 15 Percent ROP Plans.

D. The 9 Percent ROP Plans and Transportation Conformity Budgets

    EPA's June 30, 1997 (62 FR 35100) approval of New Jersey's 9 
Percent ROP Plans was conditioned on the State submitting revised 
emission reduction calculations. The purpose of these calculations was 
to ensure that New Jersey correctly accounted for the amount of 
emission reductions attributable to its enhanced I/M program and 
appropriately adjusted the ROP plans to make use of the surplus 
emission reductions that these plans identified in the event that the 
enhanced I/M program provided less emission reductions than 
anticipated. Since the enhanced I/M program will not begin operation 
until late 1999 at the earliest, it was necessary for New Jersey to 
submit revised emission reduction calculations that removed and 
replaced all of the emission reductions that had been attributed to the 
enhanced I/M program for years prior to 2000. New Jersey fulfilled this 
condition in a July 30, 1998 letter from Commissioner Robert C. Shinn, 
Jr. to EPA Region 2 Deputy Regional Administrator William J. Muszynski. 
Table 4, which appears below, summarizes the State's recalculated 9 
Percent ROP Plans. As indicated in the table, these recalculations show 
that New Jersey will still show 9 percent reductions by November 15, 
1999, without relying on any credit from enhanced I/M.

                              Table 4.--Summary of New Jersey's 9 Percent ROP Plans
----------------------------------------------------------------------------------------------------------------
                                                  Northern New Jersey NAA (tons/      Trenton NAA (tons/day)
                                                               day)              -------------------------------
                                                 --------------------------------
                                                        VOC             NOX             VOC             NOX
----------------------------------------------------------------------------------------------------------------
Required VOC reductions to meet 9 Percent Plan..           95.91  ..............           41.98  ..............
Creditable Reductions
 
Surplus reductions from 15 Percent ROP Plans....           17.53  ..............            5.73  ..............
Mobile Source control measures:
    Tier I Vehicles.............................  ..............           29.53  ..............           10.14
    National Low Emission Vehicle Program.......  ..............            0.44  ..............            0.17
    Reformulated Gasoline-On highway............  ..............            0.74  ..............            0.22
    Reformulated Gasoline-Off highway
    Enhanced Inspection & Maintenance
Stationary source control measures:               ..............  ..............  ..............  ..............
    Barge and Tanker loading
        Subchapter 16 & 19--RACT................  ..............           70.92  ..............           58.21

[[Page 9956]]

 
        Federal CTG--RACT
        Consumer Products rule--Subchapter 24
                                                 ---------------------------------------------------------------
            Total Reductions....................           17.53      \1\ 101.63            5.73       \1\ 68.74
Shortfall.......................................           78.38  ..............           36.25  ..............
VOC equivalents from NOX Substitution...........           93.48  ..............           54.12  ..............
Surplus reductions from 15 Percent ROP Plans....            15.1  ..............           17.87  ..............
Reductions not credited in today's action Ozone   ..............           23.22  ..............           0.00
 Transport Commission NOX MOU2..................
----------------------------------------------------------------------------------------------------------------
\1\ 101.63 tons/day of NOX converts to 93.48 tons/day of VOC equivalent in the Northern New Jersey NAA. 68.74
  tons/day of NOX converts to 54.12 tons/day of VOC equivalent in the Trenton NAA.
\2\ New Jersey has fulfilled the Ozone Transport Commission NOX Memorandum of Understanding by adopting
  Subchapter 31 ``Ozone Transport Commission NOX Budget Program.'' New Jersey is in the process of submitting
  Subchapter 31 as a SIP revision.

    In its December 14, 1998 addendum to its proposed 15 Percent ROP 
plans and proposed 1999 Transportation Conformity Budgets, New Jersey 
clarified its intention that the revised emission reduction 
calculations contained in the July 30, 1998 letter from Commissioner 
Shinn to Deputy Regional Administrator Muszynski be considered as part 
of this SIP revision. Therefore, EPA is proposing to approve these 
revisions to New Jersey's 9 Percent ROP plans.
    The submittal also included proposed revised 1999 transportation 
conformity budgets based on the revised control strategies included in 
the 15 Percent ROP plans and in the July 30, 1998 version of the 9 
Percent ROP plans. Table 5 contains the 1999 conformity budgets in 
tons/day of VOC and nitrogen oxides (NOX) emissions. EPA is 
proposing to approve these conformity budgets for both the 15 Percent 
and 9 Percent ROP Plans as replacements for the budgets contained in 
the previously approved 9 Percent ROP plans for 1999.

  Table 5.--1999 Mobile Source On-road Emission Budgets for Conformity
------------------------------------------------------------------------
                                          VOC (tons/day)  NOX (tons/day)
------------------------------------------------------------------------
North Jersey Transportation Planning              182.23          279.14
 Authority..............................
Delaware Valley Regional Planning                  57.97           81.57
 Commission (New Jersey Portion)........
South Jersey Transportation Planning               21.45           33.86
 Organization...........................
------------------------------------------------------------------------

    EPA's December 12, 1997 disapproval of New Jersey's 15 Percent ROP 
Plans resulted in New Jersey not being able to make conformity 
determinations or changes to their transportation plans and programs 
involving non-exempt projects funded by federal transportation funds. 
This is known as a conformity freeze. On February 10, 1999, EPA 
informed New Jersey that it had found the conformity budgets adequate 
and that the conformity freeze was being lifted.

III. Conclusion

    EPA has evaluated this submittal for consistency with the Act, 
applicable EPA regulations and EPA policy. EPA is proposing approval of 
the following: (1) Revisions to the New Jersey 1990 base year emission 
inventories, (2) revisions to the New Jersey 1996 and 1999 projection 
year emission inventories, (3) the New Jersey 15 Percent ROP Plans, (4) 
recalculation of the 9 Percent ROP Plans, and (5) the transportation 
conformity budgets as revised by the 15 Percent ROP Plans and 
recalculated 9 Percent ROP Plans.
    In addition, final approval of this SIP revision would eliminate 
the shortfall identified in EPA's December 12, 1997 disapproval of New 
Jersey's 15 Percent ROP Plans and, thereby, terminate the sanction 
process associated with this deficiency and the requirement for EPA to 
promulgate a Federal Implementation Plan (FIP). EPA must evaluate any 
public comments received on this proposal before it can take final 
approval action.
    EPA's proposed FIP was published on January 22, 1999 (64 FR 3465). 
Should EPA take final action on today's proposed approval of New 
Jersey's 15 Percent ROP Plans, it would eliminate the need for the 
January 22, 1999 proposed FIP and the proposed FIP will therefore be 
withdrawn.
    If and when EPA promulgates this proposed action, EPA will make its 
approval effective upon the date of publication in the Federal 
Register, based upon a finding of good cause. Approval of this action 
would relieve restrictions that have been placed on the State when EPA 
disapproved its SIP on December 12, 1997 and will not adversely affect 
other parties.

IV. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order (E.O.) 12866, entitled 
``Regulatory Planning and Review.''

B. Executive Order 12875

    Under Executive Order 12875, EPA may not issue a regulation that is 
not required by statute and that creates a mandate upon a State, local 
or tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments, or EPA consults with those governments. If EPA complies by 
consulting, Executive Order 12875 requires EPA to provide to the Office 
of Management and Budget a description of the extent of EPA's prior 
consultation with representatives of

[[Page 9957]]

affected State, local and tribal governments, the nature of their 
concerns, copies of any written communications from the governments, 
and a statement supporting the need to issue the regulation. In 
addition, Executive Order 12875 requires EPA to develop an effective 
process permitting elected officials and other representatives of 
State, local and tribal governments ``to provide meaningful and timely 
input in the development of regulatory proposals containing significant 
unfunded mandates.''
    Today's rule does not create a mandate on State, local or tribal 
governments. The rule does not impose any enforceable duties on these 
entities. EPA is proposing approval of New Jersey's 15 Percent Plan 
which only allocates emission reductions, it does not create any new 
requirements. Accordingly, the requirements of section 1(a) of 
Executive Order 12875 do not apply to this rule.

C. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is 
determined to be ``economically significant'' as defined under E.O. 
12866, and (2) concerns an environmental health or safety risk that EPA 
has reason to believe may have a disproportionate effect on children. 
If the regulatory action meets both criteria, the Agency must evaluate 
the environmental health or safety effects of the planned rule on 
children, and explain why the planned regulation is preferable to other 
potentially effective and reasonably feasible alternatives considered 
by the Agency.
    EPA interprets E.O. 13045 as applying only to those regulatory 
actions that are based on health or safety risks, such that the 
analysis required under section 5-501 of the Order has the potential to 
influence the regulation. This proposed SIP approval is not subject to 
E.O. 13045 because it proposes approval of a state program implementing 
a Federal standard, and it is not economically significant under E.O. 
12866.

D. Executive Order 13084

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly or uniquely affects the 
communities of Indian tribal governments, and that imposes substantial 
direct compliance costs on those communities, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by the tribal governments, or EPA consults with those 
governments. If EPA complies by consulting, Executive Order 13084 
requires EPA to provide to the Office of Management and Budget, in a 
separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.''
    Today's rule does not significantly or uniquely affect the 
communities of Indian tribal governments. Accordingly, the requirements 
of section 3(b) of Executive Order 13084 do not apply to this rule.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
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 small governmental 
jurisdictions. This proposed rule will not have a significant impact on 
a substantial number of small entities because SIP approvals under 
section 110 and subchapter I, part D of the Clean Air Act do not create 
any new requirements but simply approve requirements that the State is 
already imposing. Therefore, because the Federal SIP approval does not 
create any new requirements, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
Moreover, due to the nature of the Federal-State relationship under the 
Clean Air Act, preparation of flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
Clean Air Act forbids EPA to base its actions concerning SIPs on such 
grounds. Union Electric Co., v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 
42 U.S.C. 7410(a)(2).

F. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a federal mandate that may result in estimated 
annual costs to State, local, or tribal governments in the aggregate; 
or to private sector, of $100 million or more. Under section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the proposed approval action does not 
include a federal mandate that may result in estimated annual costs of 
$100 million or more to either State, local, or tribal governments in 
the aggregate, or to the private sector. This federal action approves 
pre-existing requirements under State or local law, and imposes no new 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Reporting and recordkeeping requirements, Volatile 
organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: February 19, 1999.
William J. Muszynski,
Acting Regional Administrator, Region 2.
[FR Doc. 99-4966 Filed 2-26-99; 8:45 am]
BILLING CODE 6560-50-P