[Federal Register Volume 64, Number 127 (Friday, July 2, 1999)]
[Rules and Regulations]
[Pages 35930-35941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16927]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-29-1-7403; FRL-6370-8]


Approval and Promulgation of Air Quality Implementation Plans; 
Louisiana: Reasonable-Further-Progress Plan for the 1996-1999 Period, 
Attainment Demonstration, Contingency Plan, Motor Vehicle Emission 
Budgets, and 1990 Emission Inventory for the Baton Rouge Ozone 
Nonattainment Area; Louisiana Point Source Banking Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: In this action, the EPA is finalizing its approval of 
revisions to the Louisiana State Implementation Plan (SIP) for the 
Baton Rouge ozone nonattainment area. These revisions were submitted by 
the State of Louisiana for the purpose of satisfying the Post-1996 
Rate-of-Progress (ROP), Attainment Demonstration, and Contingency Plan 
requirements of the Federal Clean Air Act (the Act), which will aid in 
ensuring the attainment of the National Ambient Air Quality Standard 
(NAAQS) for ozone. The EPA is also approving the associated 1999 Motor 
Vehicle Emissions Budgets (MVEBs) for the area.
    The EPA is also taking final action to approve additional SIP 
revisions submitted by Louisiana including codifying revisions that 
were made to the 1990 base year emission inventory and submitted to the 
EPA as part of the Baton Rouge 15% Rate-of-Progress Plan approved on 
October 22, 1996. Furthermore, the EPA is approving additional 
revisions to the 1990 base year emissions inventory submitted as part 
of the Post-1996 ROP Plan. The EPA is also approving the State's point 
source banking regulations. This rulemaking action is being taken under 
sections 110, 301, and part D of the Act.

EFFECTIVE DATE: This action is effective on August 2, 1999.


[[Page 35931]]


ADDRESSES: Information relevant to this rulemaking is available for 
viewing during normal business hours at the following locations. 
Persons interested in examining these documents should make an 
appointment with the appropriate office at least 24 hours before the 
visiting day.
    Environmental Protection Agency, Region 6, Air Planning Section 
(6PD-L), 1445 Ross Avenue, Suite 700, Dallas, Texas 70202-2733. 
Louisiana Department of Environmental Quality, Office of Air Quality 
and Radiation Protection, H.B. Garlock Building, 7290 Bluebonnet 
Boulevard, Baton Rouge, Louisiana 70810.

FOR FURTHER INFORMATION CONTACT: Ms. Jeanne Schulze, Air Planning 
Section (6PD-L), Environmental Protection Agency, Region 6, 1445 Ross 
Avenue, Dallas, Texas 75202-2733, telephone (214) 665-7254.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
    A. Summary of Today's Action
    B. Clean Air Act Requirements
    1. Reasonable Further Progress (RFP) Requirements
    2. Contingency Measures Requirements
    3. Motor Vehicle Emissions Budgets
    4. Attainment Demonstration Requirements
    C. Related SIP Approvals
    D. Current SIP Submittals
II. Analysis of the Submittals
    A. Post-1996 Rate-of-Progress Plan
    1. Introduction
    2. Base Year Emissions Inventory
    3. Adjusted Base Year Inventory
    4. Required Rate-of-Progress Reductions
    5. Fleet Turnover Correction Term
    6. Calculation of Target Level of Emissions
    7. Growth Calculations
    a. Introduction
    b. EPA Action
    8. Total Required Reductions
    9. Measures to Achieve the Required Reductions
    a. Introduction
    b. EPA Action
    B. Motor Vehicle Emission Budgets
    1. Introduction
    2. EPA Action
    C. Contingency Measures
    1. Introduction
    2. Point Source Emissions Banking
    3. EPA Action
    D. Additional Rule Submitted
    E. Attainment Demonstration
    1. Introduction
    2. EPA Action
    a. Episode Selection and Base Case Performance
    b. Attainment Test
    c. Photochemical Grid Model Used
    d. Demonstration of Attainment
    e. Modeling Evaluation
    f. Control Strategy Evaluation
III. Final Rulemaking Action
IV. Administrative Requirements
    A. Executive Order 12866
    B. Executive Order 12875
    C. Executive Order 13045
    D. Executive Order 13084
    E. Regulatory Flexibility Act
    F. Unfunded Mandates
    G. Submission to Congress and the Comptroller General
    H. Petition for Judicial Review

I. Background

A. Summary of Today's Action

    The EPA is finalizing approval of revisions to the SIP for the 
Baton Rouge ozone nonattainment area including the Post-1996 ROP Plan, 
Attainment Demonstration, and Contingency Plan. In addition, the EPA is 
approving the associated 1999 MVEBs, revisions to the 1990 base year 
emission inventory, and the Louisiana Point Source Banking Regulations.
    The EPA proposed approval of these SIP revisions on August 18, 1998 
(63 FR 44192). The public comment period on the proposed rulemaking 
ended on October 19, 1998. The EPA received no public comments on its 
proposal. Accordingly, in today's rulemaking, the EPA is taking final 
approval action to approve these revisions, which are summarized in the 
following discussion. For more details on these SIP submittals, 
relevant Clean Air Act requirements, etc., please refer to the EPA's 
proposed rulemaking action.

B. Clean Air Act Requirements

1. Reasonable Further Progress (RFP) Requirements
    Section 182(c)(2)(B) of the Act requires each State having one or 
more ozone nonattainment areas classified as serious or worse to 
develop a plan by November 15, 1994, that provides for additional 
actual volatile organic compound (VOC) reductions of at least three 
percent per year, averaged over each consecutive three year period, 
beginning six years after enactment of the Act, until such time as 
these areas have attained the NAAQS for ozone. These plans are referred 
to hereafter as Post-1996 ROP Plans. These plans were due to be 
submitted to the EPA as a SIP revision by November 15, 1994.
    Section 182(b)(1) of the Act mandates a 15 percent VOC emission 
reduction, net of growth, between 1990 and 1996 for each State having 
one or more ozone nonattainment areas classified as moderate or worse. 
That SIP revision was due to the EPA by November 15, 1993. The plan for 
these reductions occurring between 1990-1996 is hereafter referred to 
as the 15% ROP Plan.
    Sections 182(b)(1)(C), 182(b)(1)(D) and 182(c)(2)(B) of the Act 
limit the creditability of certain control measures toward the ROP 
requirements. Specifically, States cannot take credit for reductions 
achieved by Federal Motor Vehicle Control Program (FMVCP) measures 
(e.g., new car emissions standards) promulgated prior to 1990, or for 
reductions stemming from regulations promulgated prior to 1990 to lower 
the volatility (i.e., Reid Vapor Pressure (RVP)) of gasoline. 
Furthermore, the Act does not allow credit towards ROP requirements for 
post-1990 corrections to existing motor vehicle Inspection and 
Maintenance 
(I/M) Programs or corrections to Reasonably Available Control 
Technology (RACT) rules, since these programs were required to be in 
place prior to 1990. Emissions and emissions reductions shall be 
calculated on a typical weekday basis for the ``peak'' 3-month ozone 
period (generally June through August).
2. Contingency Measures Requirements
    Sections 172(c)(9) and 182(c)(9) of the Act require contingency 
measures to be included in the ROP and attainment plans. These measures 
are required to be implemented immediately if reasonable further 
progress has not been achieved, or if the NAAQS is not met by the 
deadline set forth in the Act.
3. Motor Vehicle Emissions Budgets
    Section 176(c) of the Act, and 40 CFR 51.452(b) of the Federal 
Transportation Conformity Rule require States to establish motor 
vehicle emissions budgets in any control strategy SIP that is submitted 
for attainment and maintenance of the NAAQS.
4. Attainment Demonstration Requirements
    Under section 182(c)(2)(A) of the Act, States required to submit 
Post-1996 ROP Plans, by November 15, 1994, for serious or worse ozone 
nonattaiment areas, must also submit for those areas an attainment 
demonstration to provide for achievement of the ozone NAAQS by the 
statutory deadline. This demonstration is to be based on photochemical 
grid modeling, such as the Urban Airshed Model (UAM), or an equivalent 
analytical method. The reader is referred to the proposal for a 
discussion of the relevant EPA memoranda on attainment demonstration 
submissions.
    The Baton Rouge ozone nonattainment area is classified as 
``serious'' and is subject to the section 182(b)(1) 15% ROP 
requirements, section 182(c)(2)(B) Post-1996 ROP requirements, and 
section 182(c)(2)(A) attainment demonstration requirements. The Baton 
Rouge ozone nonattainment

[[Page 35932]]

area is comprised of the following parishes: East Baton Rouge, West 
Baton Rouge, Ascension, Livingston, and Iberville. As a serious ozone 
nonattainment area, Baton Rouge has a statutory attainment date of 
November 15, 1999. Therefore, the area's Post-1996 ROP requirement is 
to achieve an overall 9 percent reduction in actual VOCs (net of 
growth) during the period 1996-1999 pursuant to section 182(c)(2)(B) of 
the Act.

C. Related SIP Approvals

    As stated previously, section 182(b)(1) of the Act requires that 
moderate and above ozone nonattainment areas reduce their 1990 
emissions of VOCs by 15 percent (net of growth) on or before November 
15, 1996. The 15% ROP Plan submittals were required to be submitted to 
the EPA by November 15, 1993. The EPA approved Louisiana's 15% ROP Plan 
on October 22, 1996 (61 FR 54737).
    The following is a summary of the emissions reductions in the 15% 
ROP Plan:

------------------------------------------------------------------------
     Louisiana 15 percent ROP plan required reductions
                   (Excluding RVP/FMVCP)                      (Tons/Day)
------------------------------------------------------------------------
15% ROP Reduction..........................................         29.7
I/M Correction.............................................          1.3
RACT Correction............................................          0.0
Growth.....................................................          3.8
      Total................................................         34.8
                                                            ============
Reductions In the Plan:
    Stage II Vapor Recovery................................          3.4
    Vents to Flares........................................          3.7
    Marine Vapor Recovery..................................          8.6
    Tank Fitting Controls..................................          7.9
    Fugitive Emission Controls.............................         10.4
    Federal Rules (Wastewater National Emission Standards            1.5
     for Hazardous Air Pollutants; Volatile Organic Storage
     New Source Performance Standards).....................
    Compliance Orders/Permits..............................          1.0
    Other (Tank Vent Recovery, Secondary Roof Seal on Tank)           .9
                                                            ------------
      Total................................................         37.4
                                                            ------------
    Surplus Reductions (To Be Carried Over to Post-1996              2.6
     Rate-of-Progress Plan)................................
------------------------------------------------------------------------

    Louisiana subsequently submitted a site-specific revision to the 
approved 15% ROP Plan on December 20, 1997. On May 11, 1998, the EPA 
approved the 15% ROP Plan revision (63 FR 25773).
    In another rulemaking action, the EPA redesignated Pointe Coupee 
Parish, which was formerly part of the six-parish Baton Rouge 
nonattainment area, to attainment for the ozone NAAQS (62 FR 648, dated 
January 6, 1997). The Baton Rouge area was designated nonattainment for 
ozone and classified as serious pursuant to sections 107(d)(4) and 
181(a) of the Act (56 FR 56694, dated November 6, 1991). (It should be 
noted that, in the August 18, 1998, proposal, the EPA did not reopen or 
request comment on the approval actions described in this section.)

D. Current SIP Submittals

    In a letter from the Governor dated November 10, 1994, the State of 
Louisiana submitted to the EPA the Post-1996 ROP Plan and attainment 
demonstration according to section 182(c)(2). The combined plan 
submittal addressed both the 9 percent VOC emissions reduction 
requirement and the requirement to demonstrate attainment of the ozone 
NAAQS by the area's statutory attainment date, November 15, 1999. The 
SIP submittal was deemed administratively complete on May 15, 1995, by 
operation of law pursuant to section 110(k)(1)(B) of the Clean Air Act.
    Subsequently, on December 22, 1995, the Governor of Louisiana 
submitted revisions to the November 10, 1994, submittal. The EPA 
determined that, in effect, this revised Post-1996 ROP Plan and 
Attainment Demonstration superseded the previous submittal.1 
The plan was determined to be administratively complete on March 22, 
1996. The revisions that Louisiana made to the plan substantially 
modified the mix of control measures utilized to satisfy the 9% ROP 
requirement, and also made changes to the attainment demonstration 
based on the EPA's draft guidance document on attainment modeling 
entitled, Guidance on Use of Modeled Results to Demonstrate Attainment 
of the Ozone NAAQS. As provided for by the draft guidance document on 
modeling, the submittal included a weight-of-evidence determination in 
support of the urban airshed modeling results.
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    \1\ In this submittal, the State deleted several of the 
appendices found in the previous submittal and substantially revised 
the remaining portion of the plan (i.e., control strategy, modeling 
demonstration, etc.). The December 22, 1995, submittal is capable of 
standing alone and does not rely on the November 10, 1994, submittal 
to be a complete plan. As such, the EPA's legal obligation to act on 
the State's original Post-1996 ROP Plan/Attainment Demonstration 
submittal, dated November 10, 1994, is rendered moot.
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    Finally, on January 2, 1997, the Governor of Louisiana submitted a 
revision to the December 22, 1995, submittal. The 1997 submittal 
included significant changes to the 1990 base year emissions inventory 
(and associated 15% and 9% ROP reductions) to account for the impending 
redesignation of Pointe Coupee Parish to ozone attainment. Also, the 
1997 submittal incorporated into the 1990 base year emissions inventory 
previously unreported emissions from several point sources. In 
addition, the 1997 submittal removed the emission reduction credits 
taken for the vehicle I/M control measure in the December 22, 1995, 
submittal, and replaced them with additional point source emission 
reductions. Furthermore, the submittal incorporated enhanced mobile 
modeling required by Federal conformity regulations, and also included 
an analysis of how removal of the I/M reductions would impact the 
modeling results submitted in the December 22, 1995, attainment 
demonstration. The 1997 submittal was determined to be administratively 
complete on June 20, 1997.
    In addition, Louisiana submitted its contingency measure, point 
source emissions reduction banking

[[Page 35933]]

regulations, as part of the December 15, 1995, 15% ROP Plan pursuant to 
sections 172(c)(9) and section 182(c)(9) of the Act. The State 
subsequently submitted the same contingency measure in both the 
December 22, 1995, and January 2, 1997, Post-1996 ROP/attainment 
demonstration submittals. The EPA deferred taking action on the 
regulations in the context of the 15% ROP Plan approval until its 
rulemaking action on the Post-1996 ROP Plan/attainment demonstration 
SIP. (The rationale is explained in more detail in the EPA's rulemaking 
on the 15% ROP Plan, along with the associated Technical Support 
Document (TSD).)

II. Analysis of the Submittals

    The EPA has reviewed the State's submittals for consistency with 
the Act and applicable EPA regulations and policy. A summary of the 
EPA's analysis is provided below. More detailed support and technical 
discussion are contained in the proposed rulemaking and associated TSD 
entitled, ``TSD for Proposed Clean Air Act Approval and Promulgation of 
the Post-1996 Rate-of-Progress Plan and Attainment Demonstration for 
the Baton Rouge Ozone Nonattainment Area (July 1998).''

A. Post-1996 Rate-of-Progress Plan

1. Introduction
    As stated previously, section 182(c)(2)(B) of the Act requires each 
serious and above ozone nonattainment area to submit a SIP revision by 
November 15, 1994, which provides for an actual reduction in VOC 
emissions of at least three percent per year averaged over each 
consecutive 3-year period, beginning 6 years after enactment of the 
Clean Air Act Amendments of 1990 (CAAA), until the area attains the 
ozone standard.
2. Base Year Emissions Inventory
    Under section 182(b)(1)(B), the baseline from which States 
determine the required reductions for ROP planning is the 1990 base 
year emissions inventory. The inventory is broken down into several 
emissions source categories: stationary, area, on-road mobile, off-road 
mobile, and biogenics. The EPA originally approved the Louisiana 1990 
base year emissions inventory on March 15, 1995 (60 FR 13911).
    Louisiana's December 15, 1995, submittal made a number of 
adjustments to the base year inventory. The EPA acted upon the revised 
1990 base year inventory as part of its rulemaking on the 15% ROP Plan. 
In that rulemaking, however, the EPA failed to codify its approval of 
the revised base year inventory in the Code of Federal Regulations 
(CFR) (specifically, 40 CFR part 52). In this rulemaking, the EPA is 
taking final action to codify its approval of the revised base year 
inventory (in the context of the rulemaking on the 15% ROP Plan). It 
should be noted that, in the August 18, 1998, proposal, the EPA did not 
reopen or ask for comment on its March 15, 1995, approval of the base 
year inventory.
    Louisiana's January 2, 1997, submittal made a number of additional 
revisions to the 1990 base year emissions inventory. The following 
table compares the revised 1990 base year VOC emissions cited in the 
January 2, 1997, submittal, with those cited in the approved 15% Plan 
rulemaking.

                                Baton Rouge, Louisiana, 1990 Base Year Inventory
                                    [Ozone Seasonal VOC Emissions (Tons/Day)]
----------------------------------------------------------------------------------------------------------------
                                       Point                     Onroad      Nonroad
          Plan submittal               source    Area source     mobile       mobile      Biogenic      Total
                                     emissions    emissions    emissions    emissions    emissions
----------------------------------------------------------------------------------------------------------------
12/15/95..........................       115.40        26.30        55.50        23.20       120.91       341.31
1/2/97............................       115.00        25.40        53.40        21.80        99.60       315.20
                                   -----------------------------------------------------------------------------
Difference........................          .40          .90         2.10         1.40        21.31        26.11
----------------------------------------------------------------------------------------------------------------

    The bases for these changes to the inventory were discussed in 
detail in the EPA's proposed rulemaking.
    The EPA is taking final action to approve the revised 1990 base 
year emissions inventory submitted on January 2, 1997.
    Overall, these revisions to the 1990 base year inventory decrease 
the ``1990 ROP inventory,'' which is the 1990 base year inventory less 
the biogenic emissions, for the Baton Rouge nonattainment area from 
220.4 tons/day to 215.6 tons/day. The decrease of 4.8 tons/day in the 
1990 ROP inventory reduces the 15% ROP Plan reductions requirement by 
.6 tons/day. Since the reductions in the approved 15% ROP Plan have 
remained unchanged, Louisiana added the .6 tons/day differential to the 
15% Plan surplus reductions resulting in a total surplus of 3.2 tons/
day available to be carried over to the Post-1996 ROP Plan. The EPA has 
determined this revised surplus to be acceptable for use in the Post-
1996 ROP Plan.
3. Adjusted Base Year Inventory
    Section 182(c)(2)(B) states that the rate-of-progress reductions 
must be achieved ``from the baseline emissions described in subsection 
182(b)(1)(B).'' This baseline value is termed the 1990 adjusted base 
year inventory. Section 182(b)(1)(B) defines baseline emissions (for 
the purposes of calculating each milestone VOC/nitrogen oxides (NOx) 
emissions reduction) as ``the total amount of actual VOC or NOx 
emissions from all anthropogenic sources in the area during the 
calendar year of enactment.'' This section excludes from the baseline 
the emissions that would be eliminated by FMVCP regulations promulgated 
by January 1, 1990, and the RVP regulations promulgated by the time of 
enactment (at 55 FR 23666, June 11, 1990), which require maximum RVP 
limits for gasoline to be sold in nonattainment areas during the peak 
ozone season.
    In the August 18, 1998, proposal, the EPA provided a detailed 
explanation of the methodology for calculating the FMVCP/RVP 
adjustment. The EPA is taking final action to approve the FMVCP/RVP 
adjustment factor and the inventories discussed above, as follows:

------------------------------------------------------------------------
                     Emissions inventory                        Tons/Day
------------------------------------------------------------------------
A. 1990 Base Year Emissions Inventory........................      315.2
B. 1990 Rate-of-Progress Inventory (Base Year--Biogenics)....      215.6
C. Emissions Reductions from the Pre-1990 FMVCP and Phase II        24.4
 RVP Expected by 1999........................................
D. 1990 Adjusted Base Year Inventory (B-C)...................      191.2
------------------------------------------------------------------------

4. Required Rate-of-Progress Reductions
    The next step is then to calculate the Post-1996 ROP reductions 
requirement. In order to do so, the 1990 adjusted base

[[Page 35934]]

year VOC inventory is multiplied by nine percent. Thus, the Post-1996 
ROP reduction requirement is 17.2 tons/day (.09  x  191.2). The EPA has 
determined the State's calculation of the Post-1996 ROP reduction 
requirement to be acceptable.
5. Fleet Turnover Correction Term
    In the absence of any new requirements of the CAAA, some decrease 
in motor vehicle emissions will occur automatically due to fleet 
turnover. States are not allowed to take credit for these reductions 
for ROP purposes. During the State's calculation of the 1996 target 
level of emissions, these FMVCP reductions, along with non-creditable 
RVP reductions that would occur between 1990 and 1996, were subtracted 
from the 1990 ROP inventory to calculate the 1990 adjusted base year 
inventory. This 1990 adjusted base year inventory was then used to 
calculate the required reductions and the 1996 target level of 
emissions.
    Between 1996 and 1999, there will be some additional reductions in 
emissions due to fleet turnover that are not creditable. These 
additional, non-creditable reductions are referred to as the fleet 
turnover correction term. The fleet turnover correction term is the 
difference between the 1999 and 1996 FMVCP/RVP mobile source 
reductions, or 3.0 tons/day. The EPA has determined the fleet turnover 
correction term in the Baton Rouge Post-1996 ROP Plan to be acceptable.
6. Calculation of Target Level of Emissions
    For the purpose of calculating the 1999 target, the 1996 target 
inventory (obtained from the 15% ROP Plan calculations) is used. The 
1996 target inventory used by the State in this calculation was revised 
from the target inventory approved as part of the 15% ROP Plan 
rulemaking in order to account for the changes made to the 1990 base 
year inventory described in detail in the August 18, 1998, proposal. 
The EPA is taking final action to approve the State's revised 1996 
target level of emissions of 163.8 tons/day.
    The 1999 target level of emissions is the amount of VOC emissions 
that must be achieved in order for the nonattainment area to 
demonstrate that the 9% ROP requirement has been met. The 1999 target 
level used by the State in the Post-1996 ROP Plan is the revised 1996 
target level (163.8 tons/day), less the 9% ROP reductions (17.2 tons/
day), less the fleet turnover correction term (3.0 tons/day), or 143.6 
tons/day. The EPA is taking final action to approve the State's 1999 
target level of emissions of 143.6 tons/day.
7. Growth Calculations
    a. Introduction. The EPA has interpreted the Act to require that 
States must provide for sufficient control measures in their ROP Plans 
to offset any emissions growth expected to occur after 1996. Therefore, 
to meet the ROP requirement, a State must provide for sufficient 
emissions reductions to offset projected growth in emissions in 
addition to the three percent annual average reduction of VOC 
emissions. Thus, an estimate of growth in emissions from 1996 to 1999 
is required for determining the total amount of required reductions in 
the Post-1996 ROP Plan.
    b. EPA Action. In the August 18, 1998, proposal, the EPA provided a 
detailed description of the methodology the State followed for 
projecting growth in each source category during the period 1996-1999.
    The following Table summarizes the projected emissions growth by 
source category for the nonattainment area:

                      BATON ROUGE GROWTH, 1996-1999
------------------------------------------------------------------------
                       Source category                         Tons/Day
------------------------------------------------------------------------
Point.......................................................        0.2
Area........................................................        0.2
On-road Mobile..............................................        2.4
Non-road Mobile.............................................        0.2
Subtotal....................................................        3.0
Offset from Growth of 15% Plan Point Source Reductions......       (0.2)
                                                             -----------
Total Growth in 9% Plan.....................................        2.8
------------------------------------------------------------------------

    The EPA has determined that the State's methodology for estimating 
emissions growth for the period 1996-1999 is acceptable.
8. Total Required Reductions
    The total required reductions in the plan include the 9% ROP 
reductions, reductions to offset projected growth (1996-1999), and the 
FMVCP/RVP turnover correction reductions (1996-1999). These required 
reductions total 23.0 tons/day. The State's ``share'' of the required 
reductions consists of the 9% ROP reductions (17.2 tons/day) plus the 
growth offset (2.8 tons/day), or 20.0 tons/day. The FMVCP/RVP turnover 
correction reductions (3.0 tons/day) are the Federal reductions that 
are not creditable towards meeting the ROP/growth offset requirements.
9. Measures to Achieve the Required Reductions
    a. Introduction. As described in the August 18, 1998, proposed 
rulemaking, the State relied on a combination of surplus emission 
reductions from the 15% ROP Plan, along with additional control 
measures to achieve the emissions reductions required for the Post-1996 
ROP Plan. The EPA has determined that both the surplus reductions from 
the 15% ROP Plan and the emissions reductions claimed from the control 
measures in the Post-1996 ROP Plan are acceptable for meeting the 9% 
(net of growth) emissions reductions requirement. The reader is 
referred to the proposal and associated TSD for a detailed description 
of the control measures and their associated reductions, which are 
summarized below:

 
------------------------------------------------------------------------
Louisiana 9 percent plan required reductions (Excluding RVP/
                          FMVCP):                             (TONS/DAY)
------------------------------------------------------------------------
9% ROP Reduction...........................................         17.2
Growth.....................................................          2.8
                                                            ------------
      Total................................................         20.0
REDUCTIONS IN PLAN:
Federal Measures:
    FMVCP Tier 1 Standards.................................          1.0
    Small Engines Rule.....................................          1.1
    Architectural and Industrial Maintenance Coatings Rule.          1.1
    Autobody Refinishing Rule..............................          0.6

[[Page 35935]]

 
    Consumer Products Rule.................................          0.9
Other Sources:
Surplus Reductions in 15% Plan                                       3.2
    Barge Cleaner (Permit Modification)....................          0.8
    Acetylene Plant (Agreed Order).........................          3.2
    Glycol Dehydrator Controls.............................          8.4
    Vents to Flares........................................          1.1
                                                            ------------
    Total Reductions.......................................         21.4
    SURPLUS REDUCTIONS.....................................          1.4
------------------------------------------------------------------------

b. EPA Action. The EPA is taking final action to approve the 
emissions reductions claimed in the January 2, 1997, Post-1996 ROP 
Plan as creditable towards the 9% ROP requirements of section 
182(C)(2)(B) of the Act. The EPA is also approving into the SIP the 
Borden Chemical and Plastics Reasonable Further Progress Agreed To 
Order. The barge cleaner permit modification was issued under a 
SIP-approved nonattainment new source review program and is, 
therefore, already part of the Louisiana SIP and Federally 
enforceable. In addition, the State's waste gas regulation (LAC 
33:III.2115), which requires controls on glycol dehydrators and 
vent streams, has already been approved into the SIP.

B. Motor Vehicle Emissions Budgets

1. Introduction
    As stated previously, section 176(c) of the Act, and the Federal 
Transportation Conformity Rule require States to establish motor 
vehicle emissions budgets in any control strategy SIP that is submitted 
for attainment and maintenance of the NAAQS. Louisiana submitted, in 
the January 2, 1997, Post-1996 ROP Plan, projected (1999) motor vehicle 
emissions budgets for VOC and NOX for the 5-parish Baton 
Rouge ozone nonattainment area.
    Specifically, for the 5-parish serious ozone nonattainment area, 
the State established the following VOC/NOX mobile vehicle 
emissions budgets:

          Baton Rouge, LA 1999 Motor Vehicle Emissions Budgets
------------------------------------------------------------------------
                 Pollutant                        Budget (Tons/Day)
------------------------------------------------------------------------
VOC.......................................  33.93
NOx.......................................  58.03
------------------------------------------------------------------------

2. EPA Action
    The EPA has determined that the State's methodology for projecting 
the 1999 motor vehicle VOC and NOX emissions is acceptable. 
Therefore, the EPA is taking final action to approve the figures in the 
above table as the official 1999 MVEBs to be used for transportation 
conformity determinations.

C. Contingency Measures

1. Introduction
    Under section 172(c)(9) of the Act, ozone nonattainment areas 
classified as moderate or above must submit contingency measures to be 
implemented if RFP is not achieved or if the standard is not attained 
by the applicable attainment date. The ``General Preamble for the 
Implementation of Title I of the Clean Air Act Amendments of 1990'' (57 
FR 13498, April 16, 1992) states that the contingency measures should, 
at a minimum, ensure that an appropriate level of emissions reduction 
progress continues to be made if attainment or RFP is not achieved in a 
timely manner and additional planning by the State is needed.
    In the General Preamble, the EPA interpreted the Act to require 
States with moderate and above ozone nonattainment areas to include 
sufficient contingency measures in their November 1993 submittals so 
that, upon implementation of such measures, additional emissions 
reductions of up to three percent of the emissions in the adjusted base 
year inventory (or a lesser percentage that will cure the identified 
failure) would be achieved in the year following the year in which the 
failure has been identified. States must show that their contingency 
measures can be implemented with minimal further action on their part 
and with no additional rulemaking actions such as public hearings or 
legislative review.
    Additional contingency provisions are included in section 182(c)(9) 
for serious ozone nonattainment areas. These latter provisions are 
similar to the section 172(c)(9) requirements except that the focus in 
section 182 (Ozone Areas) is on meeting emissions reductions milestones 
(section 182(g)).
2. Point Source Emissions Banking
    Louisiana identified, in both its 15% and Post-1996 ROP Plans 
submittals, the State's point source VOC/NOX banking 
regulations (LAC 33:III sections 601, 603, 605, 607, 613, 615, 617, 
619, 621, 623, and 625) 2 as the three percent contingency 
measure. These banking regulations are intended to meet the contingency 
measure requirements of both section 172(c)(9) and section 182(c)(9) of 
the Act. The adopted point source banking regulations were initially 
submitted to the EPA for approval in the December 15, 1995, 15% ROP 
Plan submittal. The EPA deferred taking action on the regulations in 
the context of the 15% ROP Plan approval until its rulemaking action on 
the Post-1996 ROP Plan/Attainment Demonstration SIP. (The rationale for 
``carving out'' the contingency measures was explained in detail in the 
TSD to the August 18, 1998, proposed rulemaking, as well as the TSD to 
the 15% ROP Plan rulemaking.) The reader is referred to the EPA's 
proposal for an in-depth discussion of the point source banking 
regulations.
---------------------------------------------------------------------------

    \2\ It should be noted that, in the preamble discussion to its 
August 18, 1998, proposal (pp. 44200 and 44207), the EPA's 
description of the State's submission inadvertently left out 
references to certain sections of the point source banking 
regulations submitted by the State. The correct sections, however, 
were actually discussed (generally and/or specifically) elsewhere in 
the proposal/TSD and are correctly set out in the preamble to this 
final rule.
---------------------------------------------------------------------------

    In the December 22, 1995, Post-1996 ROP Plan submittal, the State 
provided a table of the emissions reductions that had been banked by 
industry to date pursuant to the regulations. The State's contingency 
measure requirement is 5.7 tons/day of VOCs (three percent times the 
adjusted base year inventory of 191.2 tons/day). The VOC reductions 
``on deposit,'' 13.0 tons/day, are well in excess of the three percent 
requirement.
    The EPA has determined that the State has met the contingency 
measures requirements by having adopted and

[[Page 35936]]

submitted the point source banking regulations, and demonstrating the 
bank has sufficient VOC credits ``on deposit'' and available for 
confiscation in the event of a missed milestone/failure to attain. 
Furthermore, the EPA has determined that the banking rules provide for 
expeditious implementation of the contingency measures consistent with 
the time frames identified in the General Preamble.
    As mentioned in the August 18, 1998, proposal, Louisiana also 
submitted to the EPA, in the January 2, 1997, submittal, a correction 
to a typographical error in section 615, ``Schedule for Submitting 
Applications.'' The EPA is taking final action to also approve this 
correction to the point source banking rules.
3. EPA Action
    The EPA is taking final action to approve the already-banked VOC 
emissions reductions credits (totaling 5.7 tons/day) toward meeting the 
three percent contingency measure requirement pursuant to sections 
172(c)(9) and 182(c)(9) of the Act.
    The EPA has determined that the point source VOC/NOX 
banking regulations are generally consistent with the Act, EPA policy/
guidance and Federal regulations. Therefore, the EPA is taking final 
action to approve the State's banking regulations as meeting the 
requirements for SIP approval under part D and section 110 of the Act.
    It should be noted that the scope of this final rulemaking is to 
approve the banked VOC emissions reductions as creditable toward the 
contingency measures pursuant to sections 172(c)(9) and 182(c)(9) of 
the Act, and to approve all of the point source banking regulations as 
an acceptable SIP revision pursuant to part D and section 110 of the 
Act. The EPA is not, however, approving the banking regulations as an 
economic incentive program (EIP) pursuant to the EPA's Economic 
Incentives Program Rules (59 FR 16690) and section 182(g) of the Act. 
(Since the State has not expressly submitted the point source banking 
regulations as a section 182(g) SIP revision, the EPA believes it 
beyond the scope of this rulemaking to act upon the banking regulations 
as an EIP.)

D. Additional Rule Submitted

    The State elected to include regulation LAC 33:III.611, ``Mobile 
Sources Emissions Reductions,'' in the January 2, 1997, submittal for 
the EPA's approval as part of the overall emissions banking program. 
However, the State is not taking any reduction credit in the 
contingency plan from this voluntary mobile source emissions reduction 
program. In fact, no vehicles have actually been scrapped to date under 
the program and, hence, no mobile emission reduction credits have been 
banked statewide as part of the vehicle scrappage program.
    Since the State's submission of section 611, certain national 
policy issues have arisen surrounding the use of mobile source-
generated emissions reductions credits for use by point sources. 
Pending resolution of these issues, the EPA is deferring taking action 
on the regulation at this time. The deferral will have no effect on 
either the Post-1996 ROP Plan or the Attainment Demonstration since the 
State is not relying on reductions from the vehicle scrappage program 
to meet the reductions target or demonstrate attainment. (A more in-
depth discussion of the EPA's rationale for deferring action on the 
rule was provided in the TSD to the August 18, 1998, proposed 
rulemaking.)

E. Attainment Demonstration

1. Introduction
    As stated previously, section 182(c)(2)(A) of the Act stipulates 
that serious and above ozone nonattainment areas must submit a revision 
to the SIP that includes a demonstration that the plan, as revised, 
will provide for attainment of the NAAQS for ozone by November 15, 
1999. In addition to the 15% and 9% (net of growth) ROP reductions 
requirements, if the mandatory emission reductions are not sufficient 
to demonstrate attainment of the ozone NAAQS by November 15, 1999, 
emissions (VOCs and/or NOX) must be further reduced until 
attainment is demonstrated through photochemical grid modeling.
    For ozone nonattainment areas classified as serious or above, 
section 182(c)(2)(A) of the Act requires an attainment demonstration 
based on photochemical grid modeling, for which the Urban Airshed Model 
(UAM) is the EPA-approved model. See appendix W of 40 CFR part 51.
    The following guidance documents establish the acceptable 
techniques for application of UAM to demonstrate attainment of the 
ozone NAAQS:

EPA's Guideline on Air Quality Models (Revised) (July 1986);
EPA's Guideline for Regulatory Application of the UAM (July 1991); and
EPA's final Guidance on use of Modeled Results to Demonstrate 
Attainment of the Ozone NAAQS (June 1996).

    The UAM model uses an inventory of pollutant emissions, together 
with air quality and meteorological data, as input to a system of 
algorithms incorporating chemistry and dispersion, in order to simulate 
an observed pollution episode. Once a ``base case'' is developed that 
meets the minimum performance criteria, projected future emissions are 
used as input to simulate air quality in the attainment deadline year. 
Various combinations of geographically uniform emission reductions are 
simulated to determine approximate attainment reduction targets. 
Planners design a control strategy to meet these targets, and then 
simulate it with UAM, including the spatially and temporally varying 
effects of the selected controls. Attainment is demonstrated when the 
modeled air quality with emission controls in effect is below the NAAQS 
throughout the geographical modeling domain.
    The EPA's Guidance on the Use of Modeled Results to Demonstrate 
Attainment of the Ozone NAAQS allows States to use a ``weight-of-
evidence'' determination if the modeled attainment test is not fully 
passed, showing that attainment of the NAAQS is still likely. (The 
reader is referred to the EPA's proposal for a detailed discussion of 
UAM modeling procedures and requirements.)
2. EPA Action
    The EPA's review focused on the data sources used, technical 
judgments, and procedures followed in input preparation and performing 
quality assurance and diagnostics. The EPA also evaluated the model's 
base case performance, consistency of control measure simulation inputs 
with submitted control measures, adequacy of the demonstration of 
attainment of the NAAQS, and the consistency/completeness of the 
modeling documentation.
    a. Episode Selection and Base Case Performance. As explained in the 
Guideline for the Regulatory Application of the Urban Airshed Model, 
episodes are chosen for modeling based on their high ozone levels, data 
availability and other criteria. Generally, episodes should be chosen 
that are approximately as severe as the area's design value, which is 
based on historical ozone highs. During a particular episode, the 
observed ozone peak may be higher or lower than the design value; but 
as long as it is relatively close, that episode can be accepted for use 
in an attainment demonstration.
    The Guideline for the Regulatory Application of the Urban Airshed 
Model calls for a minimum of three primary episode days to be modeled. 
The EPA

[[Page 35937]]

may allow areas to use just two episode days if they are based on a 
field study, since this provides substantially more complete data, and, 
hence, more confidence in model development procedures and results. In 
the case of the Baton Rouge demonstration, the State modeled three 
primary episode days.
    The following three episodes were selected for use in the December 
22, 1995, Baton Rouge Attainment Demonstration SIP submittal: August 
15-16, 1989, May 24-25, 1990; and August 18-19, 1993.
    Once the episodes were chosen, the modelers are required to 
simulate these observed pollution episodes using the urban airshed 
model. In conducting the Baton Rouge base case model performance 
evaluation, the State employed both graphical and statistical 
performance measures to gauge their success. (A discussion of the 
graphical and statistical tests used in the evaluation of the Baton 
Rouge modeling demonstration was provided in the EPA's August 18, 1998, 
proposal and associated TSD.) In the Baton Rouge base case simulations, 
the model performance for the August 15-16, 1989, and August 18-19, 
1993, episodes was rated ``good,'' and the model performance for the 
May 24-25, 1990, episode was rated ``very good.'' The EPA has 
determined that the Baton Rouge episodes had acceptable performance and 
met the Guideline criteria.
    b. Attainment Test. The Guidance on use of Modeled Results to 
Demonstrate Attainment of the Ozone NAAQS (June 1996) identifies two 
approaches that the State can use for demonstrating attainment of the 
ozone NAAQS. One of the acceptable approaches is called the 
``Deterministic Approach,'' which consists of a deterministic test and 
an optional weight-of-evidence determination. The deterministic test is 
passed if predicted maximum ozone concentrations are less than or equal 
to 124 parts per billion (ppb) in all surface grid cells on all modeled 
primary episode days. If the test is not passed, a weight-of-evidence 
determination may be used to show that attainment of the NAAQS is still 
likely.
    Meanwhile, the second acceptable approach is called the 
``Statistical Approach.'' This approach consists of two parts: a 
statistical test and a weight-of-evidence determination. The 
statistical test includes three benchmarks. The first benchmark limits 
the number of allowed exceedences, the second restricts the magnitude 
of an allowed exceedence, and the third requires a minimum level of 
improvement in air quality to be exceeded. If one or more of the 
benchmarks is failed, a weight-of-evidence determination may also be 
performed using corroborative information. If the corroborative 
information is consistent with the likelihood that a proposed strategy 
will lead to attainment of the ozone NAAQS by statutory dates, 
attainment has been demonstrated.
    As discussed in detail in the EPA's August 18, 1998, proposal, the 
State elected to follow the ``Statistical Approach,'' consisting of a 
statistical test and weight-of-evidence determination, for 
demonstrating attainment of the ozone NAAQS through UAM modeling.
    c. Photochemical Grid Model Used. The State used UAM Version IV, an 
EPA-approved photochemical grid model, to develop the attainment 
demonstration for the Baton Rouge area. The State performed its 
modeling activities as outlined in the UAM modeling protocols and 
according to the EPA's Guideline for Regulatory Application of the 
Urban Airshed Model. (In advance of performing the UAM analyses, the 
State developed a specific protocol for conducting its modeling 
activities, which EPA reviewed and approved.)
    The Baton Rouge modeling domain covers all or part of 20 parishes 
in Louisiana, including the Baton Rouge serious ozone nonattainment 
area consisting of East Baton Rouge, West Baton Rouge, Livingston, 
Iberville, and Ascension Parishes.
    The EPA has determined that the State followed acceptable 
procedures to develop the meteorological and air quality inputs, base 
case emissions inventories, projection inventories, and future boundary 
conditions used in the UAM modeling. (The reader is referred to the 
EPA's proposal for a more in-depth discussion of the methodology the 
State followed in developing these model inputs.)
    d. Demonstration of Attainment. The EPA's Guideline for the 
Regulatory Application of the Urban Airshed Model stipulates that, for 
the primary episode days modeled, there should be no predicted daily 
maximum ozone concentrations greater than 124 ppb anywhere in the 
modeling domain for each primary episode day modeled. However, in its 
subsequent Guidance on the Use of Modeled Results to Demonstrate 
Attainment of the Ozone NAAQS (June 1996), the EPA revised the model 
test for demonstrating attainment of ozone NAAQS. (The revisions were 
intended to make the modeled attainment test more closely reflect the 
form of the NAAQS.) In the Guidance, the EPA recommended that either 
the ``Statistical Approach'' or ``Deterministic Approach'' should be 
used for the attainment demonstration of the ozone NAAQS. (These 
approaches were discussed in detail in the proposed rulemaking.)
    As stated above, the State elected to use the ``Statistical 
Approach,'' consisting of a statistical test with optional weight-of-
evidence determination, to demonstrate attainment of the ozone NAAQS. 
The statistical test included the application of three benchmark tests. 
The weight-of-evidence determination entailed the use of supplementary 
analyses to determine whether attainment was likely, despite model 
results which did not pass the statistical test.
    The State used the three selected episodes, all having good to very 
good base case model performance ratings, for demonstrating attainment 
of the ozone NAAQS. These episodes were modeled using the projected 
1999 emission inventory, which included the emission controls to be 
implemented through 1999. The results of the various benchmark tests 
are discussed in detail in the August 18, 1998, proposed rulemaking.
    e. Modeling Evaluation. The EPA has determined that the State's 
attainment demonstration for the Baton Rouge ozone nonattainment area 
fulfills the requirements of section 182(c)(2)(A) of the Act. The State 
adequately followed the EPA's guidance on the application of the UAM 
for demonstrating attainment of the ozone NAAQS. Following the 
``Statistical Approach,'' it demonstrated that two of the three 
episodes met or nearly met all the specified benchmark criteria. 
Furthermore, supplementary information provided by the State for 
consideration in the weight-of-evidence determination (i.e., mid-course 
review, severity of selected episodes, uncertainty in the boundary 
condition estimates, etc.) supported the modeled attainment 
demonstration.
    The Guidance on the Use of Modeled Results to Demonstrate 
Attainment of the Ozone NAAQS also allows the use of normalized trend 
data, results from observational models and or other models and 
consideration of incremental cost/benefit estimates, etc., in a weight-
of-evidence determination. In determining whether the State's 
``Statistical Approach'' to demonstrating attainment was adequate, the 
EPA considered general trend data, which reflected reductions in 
monitored ozone values, precursor emissions, and total exceedence days 
since 1990.

[[Page 35938]]

    As stated previously under ``Current SIP Submittals,'' the State, 
in its January 2, 1997, submittal, removed the emission reduction 
credits taken for the vehicle inspection and maintenance control 
measure included in the December 22, 1995 Post-1996 ROP Plan submittal, 
and replaced them with additional point source reductions. The January 
2, 1997, submittal provided an analysis of how removal of the I/M 
reductions would impact the modeling results submitted in the December 
22, 1995, attainment demonstration. The EPA reviewed the State's 
analysis and concurred that removal of the I/M reductions from the plan 
would not significantly alter the modeling results.
    In summary, based on the results of the statistical test, the 
weight-of-evidence determination, and the I/M impact analysis, the EPA 
has determined that State adequately demonstrated the modeled control 
strategy would provide for attainment of the ozone NAAQS by the 
statutory attainment date.
    f. Control Strategy Evaluation. The EPA has determined that the 
modeling results for Baton Rouge adequately demonstrate that the area 
could attain the ozone standard by 1999 through the implementation of a 
VOC-only control strategy consisting of the Federally enforceable 15 
Percent and Post-1996 ROP VOC reductions (net of growth) from the 1990 
base year levels. The reader is referred to the proposed rulemaking for 
a more in-depth discussion of the control strategy modeled.
    The EPA is taking final action to approve Louisiana's Attainment 
Demonstration SIP submittals, dated December 22, 1995, and January 2, 
1997, as meeting the requirements of section 182(c)(2)(A) of the Act 
for demonstrating attainment of the NAAQS for ozone by November 15, 
1999. Through photochemical grid modeling, the State has demonstrated 
to the EPA's satisfaction that the VOC reductions in the 15% and Post-
1996 ROP Plans (34.8 and 21.4 3 tons/day, respectfully) are 
sufficient to demonstrate attainment of the ozone NAAQS by the 
statutory deadline.
---------------------------------------------------------------------------

    \3\ The 21.4 tons/day in emissions reductions includes the 3.2 
tons/day surplus reductions from the 15% ROP Plan carried over to 
the Post-1996 ROP Plan.
---------------------------------------------------------------------------

III. Final Rulemaking Action

    The EPA has reviewed the SIP submittals for consistency with the 
Act, applicable EPA regulations and EPA policy, and is approving the 
following under sections 110(k)(3), 301(a), and part D of the Act:
    A. The Baton Rouge, Louisiana, Post-1996 Rate-of-Progress Plan, 
submitted December 22, 1995, and revised January 2, 1997, as meeting 
the requirements of section 182(c)(2)(B) of the Act to achieve a 
reduction in VOC emissions (net of growth) of 9 percent between 1996 
and 1999.
    B. The Baton Rouge, Louisiana, contingency plan, initially 
submitted as part of the 15% ROP Plan on December 15, 1995, and, 
subsequently, as part of the Post-1996 ROP Plan submitted December 22, 
1995, and revised January 2, 1997. The EPA is taking final action to 
approve the contingency plan as meeting the requirements of sections 
172(c)(9) and 182(c)(9) of the Act that moderate and above ozone 
nonattainment areas include contingency measures in their ROP Plan 
submittals. Specifically, the EPA is taking final action to approve the 
contingency-reserved VOC banked emissions reductions of 5.7 tons/day 
(achieved through the State's banking regulations), identified in a 
table in appendix T of the December 22, 1995, submittal, as creditable 
towards the 3 percent contingency requirements of sections 172(c)(9) 
and 182(c)(9) of the Act. In addition, the EPA is taking final action 
to approve the point source VOC and NOX emissions reductions 
banking regulations (LAC 33:III sections 601, 603, 605, 607, 613, 615, 
617, 619, 621, 623, and 625) submitted December 15, 1995, and revised 
January 2, 1997, as meeting the requirements for SIP approval under 
part D and section 110 of the CAAA.
    C. The 1999 Motor Vehicle Emissions Budgets for on-road mobile VOC 
and NOX emissions for the Baton Rouge 5-parish ozone 
nonattainment area submitted January 2, 1997, as meeting the 
requirements of section 176(c) of the Act and 40 CFR 51.452(b) of the 
Federal Transportation Conformity Rule.
    D. The Baton Rouge, Louisiana Attainment Demonstration submitted 
December 22, 1995, and revised January 2, 1997, including the modeling 
analyses, as meeting the requirements of section 182(c)(2)(A) of the 
CAAA to provide for attainment of the ozone NAAQS by the applicable 
November 15, 1999, attainment date.
    E. Revisions to the 1990 base year VOC emissions inventory 
submitted January 2, 1997 as meeting the requirements of section 
182(a)(1) of the Act. In addition, the EPA is taking final action to 
codify the revisions to the 1990 base year emissions inventory 
submitted as part of the 15% ROP Plan approved October 22, 1996 (61 FR 
54737).
    F. The revision to the 1996 target level of VOC emissions submitted 
January 2, 1997, as meeting the requirements of part D and EPA 
guidance.
    The EPA is deferring taking any action at this time on the State's 
accelerated vehicle retirement regulation (LAC 33:III.611) entitled, 
``Mobile Sources Emission Reductions,'' which was submitted to the EPA 
on January 2, 1997. Deferring action on this regulation has no effect 
on either the Baton Rouge Post-1996 ROP Plan or on the Baton Rouge 
Attainment Demonstration since the State took no credit in these plans 
for reductions from vehicle scrappage.

IV. 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. 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 the 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 does not create a mandate on State, local, or tribal 
governments. The rule does not impose any enforceable rules on any of 
these entities. This action does not create any new requirements but 
simply approves requirements that the State is already imposing. 
Accordingly, the requirements of section 1(a) of E.O. 12875 do not 
apply to this rule.

C. Executive Order 13045

    Executive Order 13045, entitled ``Protection of Children from 
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23, 
1997),

[[Page 35939]]

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 the 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.
    The 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 final rule is not subject to E.O. 13045 
because it approves a State program.

D. Executive Order 13084

    Under E.O. 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, E.O. 13084 requires EPA to 
provide to the 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. 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. 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.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 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. This final 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 
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 Act, preparation of a flexibility analysis 
would constitute Federal inquiry into the economic reasonableness of 
state action. The Act forbids EPA to base its actions concerning SIPs 
on such grounds. See 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, 
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 approval 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. 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.

G. 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 can 
not 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 August 2, 1999.

H. Petition 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 August 31, 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 dioxide, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

    Dated: June 24, 1999.
Jerry Clifford,
Acting Regional Administrator, Region 6.
    Part 52 of chapter I, title 40, CFR, is amended as follows:

PART 52--[AMENDED]

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

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

Subpart T--Louisiana

    2. In Sec. 52.970, in the ``EPA-Approved Louisiana Regulations in 
the Louisiana SIP'' table in paragraph (c), chapter 6 is added to read 
as follows:


Sec. 52.970  Identification of plan.

* * * * *
    (c) EPA approved regulations.

[[Page 35940]]



                             EPA Approved Louisiana Regulations in the Louisiana SIP
----------------------------------------------------------------------------------------------------------------
                                                        State approval
         State citation              Title/subject           date          EPA approval date       Comments
----------------------------------------------------------------------------------------------------------------
 
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------
                    Chapter 6--Regulations on Control of Emissions Reduction Credits Banking
----------------------------------------------------------------------------------------------------------------
Section 601.....................  Background and      Aug. 1994,          [July 2, 1999 and   ..................
                                   Purpose.            LR20:874.           Federal Register
                                                                           cite].
Section 603.....................  Applicability.....  Aug. 1994,          [July 2, 1999 and   ..................
                                                       LR20:874.           Federal Register
                                                                           cite].
Section 605.....................  Definitions.......  Aug. 1994,          [July 2, 1999 and   ..................
                                                       LR20:874.           Federal Register
                                                                           cite].
Section 607.....................  Stationary Point    Aug. 1994,          [July 2, 1999 and   ..................
                                   Source Reductions.  LR20:877.           Federal Register
                                                                           cite].
Section 613.....................  ERC Bank Balance    Aug. 1994,          [July 2, 1999 and   ..................
                                   Sheet.              LR20:877.           Federal Register
                                                                           cite].
Section 615.....................  Schedule for        Jul. 1995,          [July 2, 1999 and   Approves original
                                   Submitting          LR21:681.           Federal Register    rule (adopted 8/
                                   Applications.                           cite].              94) and
                                                                                               subsequent
                                                                                               revision (adopted
                                                                                               07/95).
Section 617.....................  Review and          Aug. 1994,          [July 2, 1999 and   ..................
                                   Approval of ERC     LR20:878.           Federal Register
                                   Bank Balance                            cite].
                                   Sheets.
Section 619.....................  Registration of     Aug. 1994,          [July 2, 1999 and   ..................
                                   Emission            LR20:879.           Federal Register
                                   Reduction Credit                        cite].
                                   Certificates.
Section 621.....................  Protection of       Aug. 1994,          [July 2, 1999 and   ..................
                                   Banked ERCs.        LR20:679.           Federal Register
                                                                           cite].
Section 623.....................  Withdrawal, Use,    Aug. 1994,          [July 2, 1999 and   ..................
                                   and Transfer of     LR20:880.           Federal Register
                                   Emission                                cite].
                                   Reduction Credits.
Section 625.....................  Application and     Aug. 1994,          [July 2, 1999 and   ..................
                                   Processing Fees.    LR20:880.           Federal Register
                                                                           cite].
 
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------

    3. In section 52.970, an entry in the ``EPA-Approved Louisiana 
Source-Specific Requirements'' table in paragraph (d) is added to read 
as follows:
    (d) EPA-approved State source-specific requirements.

                               EPA Approved Louisiana Source-Specific Requirements
----------------------------------------------------------------------------------------------------------------
                                                        State approval/
          Name of source              Permit number        effective     EPA approval date         Comments
                                                             date
----------------------------------------------------------------------------------------------------------------
 
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------
Borden Chemicals and Plastics in   Reasonable Further         10/24/96  [July 2, 1999 and    Submitted as part
 Baton Rouge.                       Progress Agreed To                   Federal Register     of the Baton
                                    Order.                               cite].               Rouge, LA Post-
                                                                                              1996 ROP Plan
----------------------------------------------------------------------------------------------------------------

    4. In section 52.970, an entry in the ``EPA Approved Control 
Measures in the Louisiana SIP'' table in paragraph (e) is added to read 
as follows:
    (e) EPA approved nonregulatory and quasi-regulatory measures.

                               EPA Approved Control Measures in the Louisiana SIP
----------------------------------------------------------------------------------------------------------------
                                        Applicable           State
         Control measures             geographic or     submittal date/  EPA approval date         Comments
                                    nonattainment area  effective date
----------------------------------------------------------------------------------------------------------------
 
                          *         *         *         *         *         *         *
----------------------------------------------------------------------------------------------------------------
Post-1996 ROP Plan (Including a    Baton Rouge, LA....        01/02/97  [July 2, 1999 and    Originally
 Revised 1996 Target Level of VOC                                        Federal Register     submitted 12/22/95
 Emissions).                                                             cite].               and revised 01/02/
                                                                                              97.
Attainment Demonstration for the   Baton Rouge, LA....        01/02/97  [July 2, 1999 and    Originally
 1-hour Ozone NAAQS.                                                     Federal Register     submitted 12/22/95
                                                                         cite].               and revised 01/02/
                                                                                              97.

[[Page 35941]]

 
Contingency Plan.................  Baton Rouge, LA....        01/02/97  [July 2, 1999 and    Submitted as part
                                                                         Federal Register     of the 15% ROP
                                                                         cite].               Plan on 12/14/95
                                                                                              and, subsequently,
                                                                                              as part of the
                                                                                              Post-1996 ROP Plan
                                                                                              submitted on 12/22/
                                                                                              95 and revised 1/2/
                                                                                              97.
1999 Motor Vehicle Emission        Baton Rouge, LA....        01/02/97  [July 2, 1999 and    ...................
 Budgets.                                                                Federal Register
                                                                         cite].
Revised 1990 Base Year VOC         Baton Rouge, LA....        01/02/97  [July 2, 1999 and    See also 52.993.
 Emissions Inventory.                                                    Federal Register
                                                                         cite].
----------------------------------------------------------------------------------------------------------------

    5. Section 52.993 is amended by adding paragraphs (d) and (e) as to 
read as follows:


52.993  Emissions inventories.

* * * * *
    (d) On December 15, 1995, the Governor of the State of Louisiana 
submitted a revision to the 1990 base year volatile organic compound 
(VOC) emissions inventory for the Baton Rouge, Louisiana ozone 
nonattainment area. The revised inventory was submitted as part of the 
revised Baton Rouge 15 Percent Rate-of-Progress Plan. This revision to 
the base year inventory modified the point source VOC emissions. The 
revisions satisfy the requirements of section 182(a)(1) of the Clean 
Air Act, as amended in 1990.
    (e) On January 2, 1997, the Governor of the State of Louisiana 
submitted a revision to the 1990 base year volatile organic compound 
(VOC) emissions inventory for the Baton Rouge, Louisiana ozone 
nonattainment area. The revised inventory was submitted as part of the 
revised Baton Rouge Post-1996 Rate-of-Progress Plan. This revision to 
the base year inventory modified the point, area, non-road mobile, on-
road mobile, and biogenic sources of VOC emissions. The revisions 
satisfy the requirements of section 182(a)(1) of the Clean Air Act, as 
amended in 1990.
[FR Doc. 99-16927 Filed 7-1-99; 8:45 am]
BILLING CODE 6560-50-P