[Federal Register Volume 64, Number 75 (Tuesday, April 20, 1999)]
[Rules and Regulations]
[Pages 19283-19286]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-9868]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX 109-1-7412a; FRL-6329-2]


Rescission of the Conditional Section 182(f) Exemption to the 
Nitrogen Oxides (NOX) Control Requirements for the Dallas/
Fort Worth Ozone Nonattainment Area; TX

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this direct final action, we, the EPA, are rescinding the 
conditional nitrogen oxides (NOX) exemption for the Dallas/
Fort Worth (DFW) ozone nonattainment area. We granted the conditional 
exemption under the Federal Clean Air Act (Act) on November 21, 1994, 
conditioned on our approval of initial modeling showing that 
NOX controls were not needed in the DFW area to reach 
attainment. However, the DFW area failed to attain EPA's National 
Ambient Air Quality Standard (NAAQS) for ozone by its moderate ozone 
deadline of November 15, 1996, and we reclassified the area to 
``serious'' ozone nonattainment on February 18, 1998. The modeling 
conducted for this serious area State Implementation Plan shows control 
of NOX sources will help the area attain the ozone. The 
State of Texas requested the rescission of the conditional 
NOX exemption based on this new photochemical modeling. We 
agree with the need for future NOX controls and are 
rescinding the conditional exemption. The State must now implement 
NOX control rules and conformity determinations will have to 
consider NOX in the DFW area.

DATES: This direct final rule is effective on June 21, 1999, unless we 
receive adverse comments by May 20, 1999. If we receive such comments, 
we will publish a timely withdrawal of the direct final rule in the 
Federal Register informing the public that the rule will not take 
effect.

ADDRESSES: Written comments on this action should be addressed to Mr. 
Thomas H. Diggs, Chief, Air Planning Section (6PD-L), at the EPA Region 
6 Office listed below. Copies of the documents relative to this action 
are available for public inspection during normal business hours at the 
following

[[Page 19284]]

locations. If you want to examine these documents you should make an 
appointment with the appropriate office at least two working days in 
advance.

Environmental Protection Agency, Region 6, Air Planning Section, (6PD-
L), Multimedia Planning and Permitting Division, 1445 Ross Ave, Dallas, 
TX 75202-2733, telephone: (214) 665-7214.
Texas Natural Resource Conservation Commission, Office of Air Quality, 
12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Mr. Herbert R. Sherrow, Jr., Air 
Planning Section (6PD-L), Multimedia Planning and Permitting Division, 
Environmental Protection Agency, Region 6, 1445 Ross Avenue, Dallas, 
Texas 75202-2733, telephone: 214-665-7237.

SUPPLEMENTARY INFORMATION:

What Action is EPA Taking?

    At the request of the State of Texas, we are rescinding the 
conditional exemption from the NOX control requirements for 
the DFW ozone nonattainment area. We are not taking any action on the 
El Paso NOX exemption. Rescission of the section 182(f) 
NOX exemption means the DFW ozone nonattainment area is 
removed from Federal exempt status and the State is required to 
immediately implement its existing NOX Reasonably Available 
Control Technology (RACT), New Source Review (NSR), vehicle Inspection 
and Maintenance (I/M) program, and general and transportation 
conformity requirements.
    However, because of the lead time needed for sources to be able to 
comply, we are also setting a final compliance date for implementation 
of the NOX RACT controls. Final NOX RACT 
compliance is required as expeditiously as practicable, but no later 
than March 31, 2001. The NOX RACT final compliance date is 
consistent with the State's rule.

What is a NOX Exemption?

    The Act states, in section 182(f), that an exemption from 
NOX controls may be given to an ozone nonattainment area if 
the Administrator determines that NOX controls would not 
help the area attain the ozone NAAQS. Texas sent us modeling which 
showed that the DFW area could attain the NAAQS by additional controls 
for Volatile Organic Compounds only; therefore, new NOX 
controls would not be needed. The State requested a NOX 
exemption for the DFW area and we granted a conditional exemption 
effective November 21, 1994. In our Federal Register notice approving 
the exemption we said that if we later determine that NOX 
reductions are beneficial, based on new photochemical modeling, the 
area would be removed from exempt status.

Why is EPA Taking This Action?

    We are taking this action because the State requested the 
rescission, because the condition for the exemption has not been met, 
and because the area's modeling now shows the need for NOX 
reductions to achieve attainment.
    The Texas Natural Resource Conservation Commission (TNRCC) sent a 
letter, dated November 13, 1998, from Mr. Barry McBee, Chairman of the 
TNRCC at the time of the letter, to Mr. Gregg Cooke, EPA Region 6, 
Regional Administrator, requesting the rescission.
    The State conducted new photochemical modeling which shows 
NOX controls are now needed for the DFW area to attain the 
ozone NAAQS. We reviewed the new modeling and find it supports the need 
for NOX controls.
    We also conditioned the exemption on our approving initial modeling 
showing that NOX was not needed. Before we could act on the 
initial modeling, monitoring data showed the area did not attain the 
NAAQS by November 15, 1996, which was the attainment date for moderate 
ozone areas. Section 181(b)(2)(A) requires us to reclassify ozone areas 
to the next higher nonattainment classification within six months after 
the applicable attainment deadline if we find the area has not attained 
the ozone standard by that date. Therefore, instead of acting on the 
initial modeling, we reclassified the area from ``moderate'' to 
``serious'' nonattainment on February 19, 1998, and the state initiated 
new modeling. The condition for receiving full approval of the 
exemption has never been and cannot now be met by Texas.

What Actions has the State Taken?

    The State adopted its NOX RACT and New Source Review 
(NSR) rules on February 24, 1999, and they became effective on March 
21, 1999.
    The state's approved Inspection and Maintenance (I/M) program for 
the DFW area does not allow NOX increases. For a discussion 
of the State's vehicle I/M program, please refer to the conditional 
interim approval in 62 FR 3718. Therefore, the State does not need to 
revise its DFW I/M rule as a result of this action.

Who do the NOX RACT and NSR rules apply to?

    The NOX RACT rules will apply to you if you own or 
operate a major source of NOX emissions. A major source is 
defined as any stationary source, or group of sources, located in a 
contiguous area and under common control that emits, or has the 
potential to emit, at least 50 tons of NOX a year. Please 
see TNRCC rules, Chapter 117--Control of Air Pollution from Nitrogen 
Compounds for additional information.
    The NSR rules apply to you if you are an owner or operator planning 
to construct or modify a source that has the potential to emit at least 
50 tons of NOX a year. Please see TNRCC rules, Chapter 116--
Control of Air Pollution By Permits for New Construction or 
Modification, Subchapter B: New Source Review Permits, Division 5: 
Nonattainment New Source Review for additional information.

When do I Have To Comply With the NOX RACT and NSR 
Rules?

    The NOX RACT final compliance date is as expeditiously 
as practicable but not later than March 31, 2001; and the NSR 
compliance date is March 21, 1999. Under the State's NSR rule, permit 
applications determined to be complete prior to March 21, 1999, are not 
subject to the new NOX requirements.

What is the Effect of Rescinding the NOX Exemption on 
Conformity?

    The NOX waiver for transportation and general conformity 
determinations no longer applies after the effective date of this rule.
    The NOX waiver exempted the North Central Texas Council 
of Governments (NCTCOG) from the transportation conformity rule's 
``build-no build'' test for NOX emissions. After the 
effective date of this notice, the NCTCOG must observe the 
NOX requirements in future transportation conformity 
determinations on transportation improvement programs, transportation 
plans, and projects. See the State Transportation Conformity Rule, 30 
Texas Administrative Code (TAC) Chapter 114, and 40 CFR part 93 subpart 
A for more information. The State does not need to revise its 
transportation conformity rule as a result of this action.
    The NOX requirements also apply in future general 
conformity determinations. The NOX waiver exempted Federal 
projects from general conformity determinations regarding 
NOX. Federal agencies that must make a conformity 
determination for Federal actions in the DFW area according to the 
State's General Conformity Rule are now subject to the NOX 
requirements. See the State General Conformity Rule, 30 TAC Section 
101.30, and CFR part 51 subpart W for more information. The State does 
not need to revise its General

[[Page 19285]]

Conformity Rules as a result of this action.
    Existing conformity determinations will not be affected by this 
rescission of the NOX exemption and will continue to be 
valid to the same extent as generally allowed under the rules, but new 
conformity determinations will have to observe the NOX 
requirements.

Where Can I Get Background Information on the Exemption?

    We approved the exemption on November 21, 1994, and published the 
approval in a Federal Register notice, 59 FR 60709, November 28, 1994. 
We proposed approval of the exemption in a Federal Register notice, 59 
FR 44386, August 29, 1994.

What Further Action Must EPA Take?

    We plan to review the State's RACT and NSR NOX 
submissions for approval in separate rulemaking actions because those 
submissions will be contained in a broader SIP that also includes 
Volatile Organic Compounds controls, modeling, and rate of progress 
requirements. The State submitted this SIP March 18, 1999.

What is the Process for EPA Approval of This Action?

    We are publishing this rule without prior proposal because we view 
this as a noncontroversial action and anticipate no adverse comments. 
However, in the ``Proposed Rules'' section of today's Federal Register 
publication, we are publishing a separate document that will serve as 
the proposal to approve the action if adverse comments are filed. This 
rule will be effective on June 21, 1999, without further notice unless 
we receive adverse comment by May 20, 1999. If we receive adverse 
comment, we will publish a timely withdrawal in the Federal Register 
telling the public that the rule will not take effect. If this happens, 
we will address all public comments in a subsequent final rule based on 
the proposed rule. We will not initiate a second comment period on this 
action. Any parties interested in commenting must do so at this time.

Administrative Requirements

A. Executive Order (E.O.) 12866

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

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 600 et seq., 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. Removal of the NOx exemption under section 
182(f) of the Act is an action that affects the status of a 
geographical area and does not directly regulate any entities. See Mid-
Tex Electric Cooperative Inc. v. FERC, 773 F.2nd 327 (D.C. 1985) 
(Agency's certification need only consider the rule's impact on 
entities subject to the requirements of the rule. To the extent that 
the area must adopt new regulations, we will review the effect of those 
actions at the time the State submits those regulations. Therefore, I 
certify that this action will not have a significant economic impact on 
a substantial number of small entities.

C. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995, 
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.
    The EPA has determined that the rescission action promulgated 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. Statutory requirements that 
previously were waived for the DFW area are now applicable. To the 
extent that the State must adopt new regulations, we will review the 
effect of these actions at the time the State submits the regulations.

D. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. The EPA will submit a report containing this rule and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2). This rule will be effective June 21, 1999.

E. Executive Order 12875

    Under E.O. 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, E.O. 12875 requires EPA to provide to OMB a description of 
the extent of EPA's prior consultation with representatives of 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, 
E.O. 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 implements statutory provisions but would not impose a 
mandate on State, Local, or Tribal governments. Accordingly, the 
requirements of section 1(a) of E.O. 12875 do not apply to this rule.

F. Executive Order 13084

    Under E.O. 13084, EPA may not issue a regulation that is not 
required by statute, that significantly affects 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 the EPA complies by consulting, E.O. 13084 requires EPA 
to provide to OMB, 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, E.O.

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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 implements requirements specifically set 
forth by the Congress in the Federal Clean Air Act without the exercise 
of any discretion by EPA. However, today's rule does not significantly 
or uniquely affect the communities of Indian tribal governments. This 
action does not involve or impose any new requirements that affect 
Indian tribes. Accordingly, the requirements of section 3(b) of E.O. 
13084 do not apply to this rule.

G. 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 rule is not subject to E.O. 13045 because it implements a 
previously promulgated health or safety-based Federal standard.

H. Petitions for Judicial Review

    Under section 307(b)(1) of the Act, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by June 21, 1999. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for the purposes of judicial review nor does 
it extend the time within which a petition for judicial review may be 
filed, and shall not postpone the effectiveness of such rule or action. 
This action may not be challenged later in proceedings to enforce its 
requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental Relations, Nitrogen oxides, Ozone, Volatile organic 
compounds.

    Dated: April 14, 1999.
Carol M. Browner,
Administrator.
    Part 52, chapter I, Title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:

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

Subpart SS--Texas

    2. Section 52.2308 is amended by adding paragraph (g) to read as 
follows:


Sec. 52.2308  Area-wide nitrogen oxides (NOX) exemptions.

* * * * *
    (g) The Texas Natural Resource Conservation Commission submitted a 
letter to EPA requesting rescission of the previously-granted 
conditional exemption from the NOX control requirements of 
section 182(f) of the Act for the Dallas/Fort Worth ozone nonattainment 
area. The letter was sent on November 13, 1998. The conditional 
exemption was granted on November 21, 1994, conditioned upon EPA 
approving the modeling portion of the DFW attainment demonstration SIP. 
The conditional exemption was also approved on a contingent basis. The 
modeling-based exemption would last only as long as the area's modeling 
continued to demonstrate attainment without the additional 
NOX reductions required by section 182(f). The State's 
request is based on new photochemical modeling which shows the need for 
NOX controls to help the area attain the ozone National 
Ambient Air Quality Standards. Furthermore, EPA would not and could not 
approve the earlier attainment demonstration SIP modeling upon which 
the condition was based.
    (1) On June 21, 1999, the conditional NOX exemption for 
the DFW area granted on November 21, 1994 is rescinded. Upon 
rescission, the Federal requirements pertaining to NOX 
Reasonably Available Control Technology (RACT), New Source Review, 
vehicle Inspection/Maintenance, general and transportation conformity 
now apply.
    (2) The NOX RACT final compliance date must be 
implemented as expeditiously as practicable, but no later than March 
31, 2001.

[FR Doc. 99-9868 Filed 4-19-99; 8:45 am]
BILLING CODE 6560-50-P