[Federal Register Volume 64, Number 164 (Wednesday, August 25, 1999)]
[Proposed Rules]
[Pages 46325-46331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22047]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[PA100-4093; FRL-6428-4]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Post-96 Rate of Progress Plan for the Philadelphia Ozone 
Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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

SUMMARY: EPA is proposing limited approval of a State Implementation 
Plan (SIP) revision submitted by the Commonwealth of Pennsylvania. This 
revision consists of the three percent per year emission reduction 
rate-of-progress (ROP) plan for the period 1996-1999 in the 
Pennsylvania portion of the Philadelphia-Wilmington-Trenton severe 
ozone nonattainment area (the Philadelphia area). This requirement is 
commonly known as the Post-96 ROP plan. The intended effect of this 
action is to propose limited approval of this ROP plan required by the 
Clean Air Act to ensure progress on reducing emissions of ozone 
precursors.

DATES: Written comments must be received on or before September 24, 
1999.

ADDRESSES: Written comments may be mailed to David L. Arnold, Chief, 
Ozone and Mobile Sources Branch, Mailcode 3AP21, U.S. Environmental 
Protection Agency, Region III, 1650 Arch Street, Philadelphia, 
Pennsylvania 19103. Copies of the documents relevant to this action are 
available for public inspection during normal business hours at the Air 
Protection Division, U.S. Environmental Protection Agency, Region III, 
1650 Arch Street, Philadelphia, Pennsylvania 19103, and the 
Pennsylvania Department of Environmental Protection, Bureau of Air 
Quality, P.O. Box 8468, 400 Market Street, Harrisburg, Pennsylvania 
17105.

FOR FURTHER INFORMATION CONTACT: Cristina Fernandez, (215) 814-2178. Or 
by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: EPA has prepared a technical support 
document (TSD) for this action. The TSD contains details of 
Pennsylvania's July 31, 1998 submittal and EPA's evaluation of that 
submittal. Copies of the TSD are available from the EPA Regional office 
listed in the ADDRESSES section of this document.

I. Background

    Section 182(b)(1) of the Clean Air Act (the Act) requires all 
moderate, serious, severe, and extreme ozone nonattainment areas to 
reduce volatile organic compound (VOC) emission 15% from 1990 levels by 
1996. That requirement is known as the 15% plan. Section 182(c)(2)(B) 
of the Act requires serious, severe, and extreme ozone nonattainment 
areas to reduce emissions of VOC by 3% per year every year from 1996 
until their attainment dates. This requirement, known as the Post-96 
rate-of-progress (ROP) plan, was originally due by November 15, 1994. 
However, in a March 2, 1995 memorandum, EPA Assistant Administrator 
Mary Nichols outlined an alternative attainment demonstration policy 
that combines the Post-96 ROP plan with the attainment demonstration 
requirements found in section 182(c)(2)(A) of the Act. This approach 
consists of two ``phases.'' Phase I requires the states to submit a 
plan to meet ROP from 1996 to 1999 (the Post-96 ROP plan), and a set of 
three enforceable commitments. For Phase II, states are required to 
submit a ROP plan from 1999 to the area's attainment year (commonly 
referred to as the Post 99 ROP plan), and a modeled attainment 
demonstration.
    The Philadelphia area is classified as a severe ozone nonattainment 
area. This is a four-state ozone nonattainment area consisting of 
portions of Delaware, Maryland, New Jersey, and Pennsylvania. For 
purposes of the Post 96 ROP plan, the four states have maintained the 
same agreement they reached regarding the 15% ROP plan for the 
Philadelphia area, namely that each state would secure a 15% reduction, 
and now a 9% (3% per year for 1997, 1998 and 1999) reduction from its 
portion of the area's base year inventory. The Pennsylvania portion of 
the Philadelphia area consists of Bucks, Chester, Delaware, Montgomery, 
and Philadelphia Counties. In a May 31, 1995 letter from James Seif, 
Secretary of Pennsylvania's Department of Environmental Protection to 
EPA Region III, Pennsylvania committed to participating in the 
alternative attainment demonstration approach outlined in the March 2, 
1995 memorandum.
    On July 31, 1998, the Pennsylvania Department of Environmental 
Protection (PADEP) submitted a revision to the Pennsylvania State 
Implementation Plan (SIP) consisting of the Post-96 plan for the 
Pennsylvania portion of the Philadelphia severe ozone nonattainment 
area. EPA received this revision on August 4, 1998. PADEP's July 31, 
1998 submittal contains both the 1996 to 1999 ROP reduction, and the 
additional requirements described in the March 2, 1995 Mary Nichols 
memorandum. This submittal also includes the 1990 oxides of nitrogen 
(NOX) base year inventory for the Philadelphia nonattainment 
area. In an October 2, 1998 letter, EPA determined that PADEP's 
submittal is administratively and technically complete. That 
completeness determination stopped the 18-month sanctions clock that 
EPA started on May 7, 1997. The sanctions clock had been started for 
Pennsylvania's failure to submit the enforceable commitments to adopt 
(1) additional measures needed for attainment and (2) the remainder of 
the rules to meet ROP requirements pending modeling results from the 
Ozone Transport Assessment Group (OTAG), as required by the March 2, 
1995 Mary Nichols memorandum. PADEP's complete July 31, 1998 SIP 
submittal remedied that failure. Therefore, the sanctions clock was 
halted.
    This rulemaking only addresses the portion of PADEP's July 31, 1998 
submittal related to the 1996 to 1999 ROP plan, i.e. the Post-96 ROP 
plan. On June 17, 1999 EPA approved the 1990 NOX base year 
inventory SIP submittal in a separate rulemaking action (64 FR 32424).
    Section 182(c)(2)(C) of the Act allows states to substitute 
emission reductions of NOX occurring after 1990 for VOC 
reductions in the Post-1996 rate of progress plans. VOC and 
NOX reduction measures, whether mandatory under the Act or 
adopted at the state's discretion, must ensure ``real, permanent, and 
enforceable'' emissions reductions. Pennsylvania uses both VOC and 
NOX emission control measures to meet the 9% reduction 
required for the Post 96 ROP plan.

II. Base Year Inventory

    EPA approved the 1990 base year VOC emissions inventory for 
Pennsylvania's portion of the Philadelphia area on June 9, 1997 (62 FR 
31343). As stated above, EPA approved the 1990 base year NOX 
emissions inventory for Pennsylvania's portion of the Philadelphia area 
on June 17, 1999 (64 FR 32424).

[[Page 46326]]

III. Post-1996 ROP Plans

A. Calculation of Needed Reductions

    The process for the calculation of the required reductions is set 
forth in EPA's guidance document entitled ``Guidance on the Post-96 
Rate of Progress Plans and the Attainment Demonstration,'' January 
1994. The ``target level'' of emissions represents the maximum amount 
of emissions that a nonattainment area can have in the given target 
year, which in this case is 1999. Section 182(c)(2)(C) of the Act 
allows states to substitute NOX emission reductions that 
occur after 1990 for VOC emissions in the Post-1996 Plan. EPA issued 
guidance on the criteria states can use to substitute NOX 
for VOC reductions on December 15, 1993, ``NOX Substitution 
Guidance'' and follow-up guidance on August 5, 1994, ``Clarification of 
Policy for Nitrogen Oxides (NOX) Substitution.'' The 
condition for meeting the ROP requirement is that the sum of all 
creditable VOC and NOX emission reductions must equal 3 
percent per year averaged over the three year period 1996 to 1999, for 
a total of 9 percent. If a state wishes to substitute NOX 
for VOC emission reductions, then a target level of emissions 
demonstrating a representative combined 9 percent emission reduction in 
VOC and NOX emissions must be developed for the year 1999. 
Furthermore, growth in both VOC and NOX emissions must be 
offset by emission reductions. Therefore, separate emission target 
levels for 1999 must be calculated for both VOC and NOX 
emissions.
    To calculate the target level of emissions, the required emission 
reduction is subtracted from the previous milestone's target level. In 
this case, the 1999 ROP VOC target level is based on the 1996 VOC 
target level calculated for the 15% plan. EPA granted approval of 
Pennsylvania's 15% ROP plan for the Philadelphia area on June 9, 1997 
(62 FR 31343). A technical correction to that document was published on 
January 6, 1998 (63 FR 415). In that plan, the PADEP calculated the 15% 
ROP target level to be 494.31 tons per day (TPD).
1999 Rate of Progress (ROP) VOC and NOX Target Level 
Calculation
    Pennsylvania has elected to substitute NOX for VOC 
emission reductions in its Post-96 ROP plan for the Philadelphia area. 
In Pennsylvania's plan, growth in VOC emissions from 1996 to 1999 was 
offset by VOC emission reductions achieved by 1999. Similarly, growth 
in NOX emissions from 1990 to 1999 was offset by 
NOX emission reductions achieved in that same time period. 
Pennsylvania did not calculate separate VOC and NOX target 
levels. However, EPA was able to calculate VOC and NOX 
target levels using data in Pennsylvania's Post-96 ROP plan. These 
calculations are shown below.

 
 
 
VOC:
    1. 1990 ROP base year inventory = 1990 base year         732-116 = 616 TPD.
     inventory minus biogenic emissions.
    2. 1990 adjusted base year inventory = 1990 ROP base     616-39 = 576 TPD.
     year inventory minus 1990 to 1999 Federal Motor
     Vehicle Control Program (FMVCP) and Reid Vapor
     Pressure (RVP) reductions.
    3. Required reductions = 0.5%  x  1990 adjusted base     0%  x  576 = 0 TPD.
     year inventory.
    4. 1999 ROP target level = 1996 target minus required    494-0-6 = 488 TPD.
     reduction minus fleet turnover correction.
    5. Reductions needed for ROP and to offset growth        625-488 = 137 TPD.
     (rounded to nearest ton) = 1999 uncontrolled emissions
     minus 1999 target.
NOX:
    1. 1990 ROP base year inventory (sum of all point,       440 TPD.
     area, and mobile source emissions).
    2. 1990 adjusted base year inventory = 1990 ROP base     440-20 = 420 TPD.
     year inventory minus 1990 to 1999 FMVCP/RVP reductions.
    3. Required reduction = 9%  x  1990 adjusted base year   9%  x  420 = 38 TPD.
     inventory.
    4. 1999 ROP target level = 1990 ROP base year inventory  440-38-20 = 382 TPD.
     minus required reduction minus 1990 to 1999 FMVCP/RVP
     reductions.
    5. Reductions needed for ROP and to offset growth        455-382 = 73 TPD.
     (rounded to nearest ton) = 1999 uncontrolled emissions
     minus 1999 target.
 

B. Growth Projections (1990-1999)

    States must include control measures in their Post-1996 ROP plans 
to offset the emissions growth projected to occur after 1996. 
Therefore, states must project their emission inventories to estimate 
emissions growth between 1996 and 1999. EPA's document entitled 
``Guidance on the Post-1996 Rate-of-Progress Plan and the Attainment 
Demonstration'' provides guidance to states on how to calculate growth. 
The projected inventories must reflect expected growth in activity, as 
well as regulatory actions which will affect emission levels. EPA 
guidance provides that emission projections for point sources can be 
based on information obtained directly from facilities and/or permit 
applications. Area and mobile source emission projections may be 
developed from information from local planning agencies. In the absence 
of source-specific data, credible growth factors must be developed from 
accurate forecasts of economic variables and the activities associated 
with the variables. Economic variables that may be used as indicators 
of activity growth are: product output, value added, earnings, and 
employment. Population can also serve as a surrogate indicator. 
Economic data and models which provide acceptable growth factors for 
emission projections include the U.S. Department of Commerce Bureau of 
Economic Analysis (BEA) forecasts for states and metropolitan 
statistical areas; the Economic Growth Analysis System (E-GAS), which 
models economic growth and estimates corresponding increases in 
emissions-producing activity; and the Emissions Preprocessor System for 
urban airshed modeling, which produces spatially and temporally-
resolved emission inventories for input into urban airshed models.
Growth Factor Methodology
    PADEP's Post-96 ROP plan uses growth factors from the BEA 
projection factor software (BEAFAC) for point sources, most area 
sources, and non-road mobile emissions sources. PADEP's Post-96 ROP 
plan assumes linearity of the BEA data, and uses linear interpolation 
of BEA factors from the years 1988, 1995, and 2000 to generate 
estimates for 1990 and 1999. BEA data from 1973 and 1979 was excluded, 
since the economic changes in Pennsylvania in those years creates a 
nonlinearity in the interpolation. BEA data from 2010 and 2040 was 
excluded because of PADEP's lack of confidence in its accuracy.

[[Page 46327]]

Point Source Emissions Growth Calculation
    PADEP summed the emissions for each 2-digit Standard Industrial 
Classification (SIC), which is industrial source category based, and 
applied the growth factor to the entire emissions attributable to that 
2-digit SIC grouping. For its point source inventory, Pennsylvania 
matched BEA growth projections for 57 industrial categories to similar 
two-digit SIC codes used in the inventory. All of the BEA growth 
projections were increases except for small decreases in nine 
categories. These are: metal mining, coal mining, oil and gas 
extraction, tobacco products, apparel, leather and leather products, 
primary metal industries, electronic and other electrical equipment, 
and water transportation.
Area Source Growth Emissions Growth Calculation
    With the exception of gasoline marketing, growth factors from the 
BEA's projection factor software, BEAFAC, were used for area sources. 
For the most part, employment and population factors were utilized. 
Gasoline marketing growth is determined by growth in vehicle miles 
traveled (VMT), and is calculated using MOBILE5.
Nonroad Engine Emissions Growth Calculation
    Growth factors from the BEA were used for non-road mobile sources.
Section 6.5, Highway Vehicle Emissions Growth Calculation
    Vehicle miles traveled (VMT) growth was projected by a travel-
demand computer model for the Philadelphia area. The MOBILE5 model was 
run, and then meshed with the VMT data using Pennsylvania's Post 
Processor for Air Quality (PPAQ) to determine 1999 projected highway 
emissions. VMT data for 1990 and 1999 is summarized in the following 
table.

                                       Appendix V.--VMT Growth, 1990-1999
----------------------------------------------------------------------------------------------------------------
                                                                                         Growth as % of 1990 VMT
                County                     1990 VMT (miles)         1999 VMT (miles)            (percent)
----------------------------------------------------------------------------------------------------------------
Bucks................................               12,850,048               14,829,484                     1.15
Chester..............................               10,147,864               12,712,974                     1.25
Delaware.............................                8,279,044               10,201,547                     1.23
Montgomery...........................               16,839,969               19,653,334                     1.17
Philadelphia.........................               16,485,464               17,352,364                     1.05
    Total............................               64,602,389               74,749,703                     1.16
----------------------------------------------------------------------------------------------------------------

Summary of Projected Emissions Growth, 1990-1999 in PADEP's Post-96 ROP 
Plan
    The following tables summarize VOC and NOX emissions 
growth, by source sector, from the PADEP's Post-96 ROP plan:

                            VOC Emissions Growth for the Philadelphia Area, 1990-1999
                   [1990 base year and 1999 projected uncontrolled emission inventories (tpd)]
----------------------------------------------------------------------------------------------------------------
                                                             Point       Area     Highway    Nonroad     Total
----------------------------------------------------------------------------------------------------------------
1990 Emissions...........................................     152.75     194.35     187.89      80.56     615.55
Growth...................................................       9.75       8.51     -11.03       2.07       9.30
Growth as % of 1990 Emissions............................       6.4%       4.4%      -5.9%       2.6%       1.5%
1999 Emissions...........................................     162.50     202.86     176.86      82.63     624.85
----------------------------------------------------------------------------------------------------------------


                            NOX Emissions Growth for the Philadelphia Area, 1990-1999
                   [1990 base year and 1999 projected uncontrolled emission inventories (tpd)]
----------------------------------------------------------------------------------------------------------------
                                                             Point       Area     Highway    Nonroad     Total
----------------------------------------------------------------------------------------------------------------
1990 Emissions...........................................     161.90      47.12     158.32      72.20     439.54
Growth...................................................      15.59      -0.11      -1.94       2.17      15.71
Growth as % of 1990 Emissions............................       9.6%      -0.2%      -1.2%       3.0%       3.6%
1999 Emissions...........................................     177.49      47.01     156.38      74.37     455.25
----------------------------------------------------------------------------------------------------------------

    EPA evaluation: The Commonwealth's growth projection methodologies 
are acceptable, as listed in EPA's inventory preparation guidance and 
guidance for growth factor estimation.

C. EPA's Evaluation of Control Measures

    The purpose of the Post-1996 ROP plan is to demonstrate how the 
State has reduced emissions 3% per year between the years 1996 and 
1999, for a total 9% reduction. In general, reductions toward ROP 
requirements are creditable provided the control measures occurred 
after 1990 and are real, permanent, quantifiable and federally 
enforceable. A short description of each of the control measures 
selected by Pennsylvania follows.
Reformulated Gasoline (RFG)
    This is a federally implemented control measure. Section 211(k) of 
the CAA requires that, beginning January 1, 1995, only reformulated 
gasoline be sold or dispensed in ozone nonattainment areas classified 
as severe or worse. As a severe area, Philadelphia benefits from the 
emission reductions from this program. PADEP claims a VOC emission

[[Page 46328]]

reduction of 22.41 TPD and a NOX reduction of 0.43 TPD from 
this measure.
    Fully creditable reductions: 22.41 TPD VOC and 0.43 TPD 
NOX.
Enhanced I/M
    On 1/28/98, EPA granted conditional interim approval of 
Pennsylvania's enhanced I/M program. PADEP made submittals to satisfy 
all conditions of this rulemaking. On June 8, 1999, EPA lifted the 
interim nature of its conditional interim approval (64 FR 30399). On 
June 17, 1999 (64 FR 32411), EPA converted its conditional approval of 
Pennsylvania's enhanced I/M program to full approval. The emission 
reductions from the fully approved enhanced I/M are fully creditable.
    Fully creditable reductions: 59.28 TPD VOC, and 32.29 TPD 
NOX.
Federal Motor Vehicle Control Program (FMVCP) and Tier I Vehicle 
Emission Standard (Tier I)
    This is a federally implemented control measure. The MOBILE5 model 
automatically applies FMVCP controls (unless that feature is disabled). 
PADEP claims a VOC emission reduction of 6.92 TPD and a NOX 
reduction of 14.84 TPD from this measure.
    Fully creditable reductions: 6.92 TPD VOC, and 14.84 TPD 
NOX.
Stage II Vapor Recovery
    EPA approved Pennsylvania's Stage II vapor recovery regulation on 
December 13, 1995 (60 FR 63938). The federally approved Stage II 
regulation requires the use of vapor recovery nozzles at gas stations 
through a phased compliance schedule but the last group of stations 
(pumping less than 100,000 gallons of gasoline per month) were required 
to comply with this requirement by no later than February 8, 1994 in 
all moderate and above ozone nonattainment areas. PADEP claimed a 17.71 
TPD VOC emission reduction from the implementation of this regulation.
    Fully creditable reductions: 17.71 TPD VOC.
OTC NOX MOU (Phase II)
    The 1990 Clean Air Act amendments created the northeast Ozone 
Transport Region (OTR) in recognition that ozone is a regional problem 
that requires a regional planning approach. The OTR includes the States 
of Maine, New Hampshire, Massachusetts, Vermont, Connecticut, Rhode 
Island, New York, New Jersey, Pennsylvania, Maryland, Delaware, 
Washington DC, and portions of northern Virginia. The Ozone Transport 
Commission (OTC) is a planning body composed of representatives of each 
of the OTR states. On September 27 1994, the OTC initiated a major 
agreement to cut emissions of NOX from power plants and 
other large stationary NOX sources. The agreement put forth 
was a Memorandum of Understanding (MOU) that committed states in the 
OTR to reduce NOX emissions in three phases. The first phase 
of NOX reductions outlined in the MOU was NOX 
RACT level of control. The second and third phases are more stringent 
than RACT. Pennsylvania was a signatory to the OTC NOX MOU, 
and has adopted and implemented Phase II controls.
    Pennsylvania adopted its OTC NOX MOU rules, Title 25 
Pennsylvania Code Chapters 121 and Chapter 123--Nitrogen Oxides 
Allowance Requirements, on September 16, 1997. The requirements became 
effective on November 1, 1997. PADEP submitted the rules to EPA as a 
SIP revision on December 29, 1997. On January 26, 1999, EPA proposed 
approval of PADEP's NOX MOU rule (64 FR 3906). The emission 
reductions claimed by Pennsylvania for this control measure are not 
fully approvable as creditable toward ROP requirements until EPA takes 
final action to fully approve Pennsylvania's NOX MOU 
regulation into the SIP. PADEP's claims a 27.37 TPD emission reduction 
from this measure.
    Reductions: 27.37 TPD NOX.

(not fully approvable as creditable until EPA fully approves PADEP's 
NOX MOU rule)
RACT
    PADEP claims a 10 TPD VOC emission reduction and a 6 TPD 
NOX emission reduction from RACT controls. In severe ozone 
nonattainment areas, the Act requires RACT controls on all VOC sources 
for which EPA has issued a control techniques guideline (CTG). RACT 
controls are also required on all non-CTG sources of VOC and on 
NOX sources with the potential to emit (PTE) 25 tons per 
year (TPY) or greater. In the Philadelphia area, by definition, VOC and 
NOX sources with PTE 25 PTE or more are defined as ``major 
sources.'' Compliance was required by May 31, 1995.
    On February 4, 1994, PADEP submitted a revision to its SIP for the 
control of VOC and NOX emissions from major sources 
(Pennsylvania Chapters 129.91 through 129.95). This submittal was 
amended with a revision on May 3, 1994 correcting and clarifying the 
presumptive NOX RACT requirements under Chapter 129.93. The 
SIP revision consists of new regulations which require sources that 
have the PTE 25TPY or more of VOC (not already subject to RACT under a 
category specific SIP regulation developed pursuant to a CTG) or 
NOX in the Philadelphia area to comply with RACT by May 31, 
1995. While the new regulations contain specific provisions requiring 
major non-CTG VOC and major NOX sources to implement RACT, 
the regulations do not contain specific emission limitations in the 
form of a specified overall percentage emission reduction requirement 
or other numerical emission standards. Instead, the regulations contain 
technology-based or operational ``presumptive RACT emission 
limitations'' for certain major NOX sources. For other major 
NOX sources, and all subject major non-CTG VOC sources, the 
submittal contains a ``generic'' RACT provision. A generic RACT 
regulation is one that does not impose specific up-front emission 
limitations but instead allows for future case-by-case determinations. 
This regulation allows PADEP to make case-by-case RACT determinations 
that are then submitted to EPA as revisions to the Pennsylvania SIP. 
PADEP takes credit for emission reductions from source-specific 
controls on a number of VOC and NOX sources in the 
Philadelphia area.
    The following table lists the specifc sources that PADEP takes 
credit for in the Post-96 ROP plan, and the emission reductions claimed 
for each source. Note that the NOX sources listed are not 
covered by the OTC NOX MOU.

               Emission Reductions Claimed for VOC and NOX
------------------------------------------------------------------------
                                                         VOC Reductions
                        Source                           Claimed (TPD)
------------------------------------------------------------------------
Fasson--Division of Avery............................               6.54
PECO Energy--Cromby..................................               0.03
ICI/NP...............................................               0.27
Norwood Industries...................................               2.12

[[Page 46329]]

 
Philadelphia Baking..................................               0.12
Nabisco..............................................               0.33
Continental Baking...................................               0.41
                                                      ------------------
    Total VOC Reduction Claimed......................               9.82
------------------------------------------------------------------------
                        Source                           NOX Reductions
                                                         Claimed (TPD)
------------------------------------------------------------------------
PECO Energy--Cromby..................................               3.62
Transcontinental Gas Pipeline........................               0.01
Sun Refining & Marketing.............................               1.99
Philadelphia Baking..................................               0.01
                                                      ------------------
    Total NOX Reduction Claimed......................               5.63
------------------------------------------------------------------------

    On February 23, 1998, EPA granted conditional limited approval to 
PADEP's generic VOC and NOX RACT regulations. The conditions 
required to be met in order for EPA to convert its conditional limited 
approval to limited approval were that Pennsylvania submit all case-by-
case RACTs to EPA as SIP revisions within one year of the effective 
date of EPA's final conditional approval (i.e. by April 22, 1999), and 
certify either (1) that there are no additional sources to which the 
RACT requirement is applicable, or (2) demonstrate that the emissions 
remaining from the sources subject to the RACT requirements are de 
minimis. On April 22, 1999, Pennsylvania submitted a demonstration to 
meet the conditions set forth in this notice. Once EPA approves all of 
PADEP's case-by-case RACT determinations as SIP revisions, EPA will 
convert its limited approval of Pennsylvania's generic RACT rule to a 
full approval.
    The reductions from RACT are not fully approvable as creditable in 
the Post 96 ROP plan for the Philadelphia area until EPA approves as 
SIP revisions those specific case-by-case RACT determinations for which 
credit is claimed. While Pennsylvania has submitted all of the RACTs 
listed above, only one of these has been SIP approved. Because the RACT 
for ICI/NP is the only one approved into the SIP, it is the only source 
with a fully approvable creditable emission reduction, 0.27 TPY VOC. 
Emission reductions from the additional sources will become fully 
approvable as creditable when EPA approves the source-specific SIP 
revisions. Therefore, the remaining emission reductions that PADEP has 
claimed (9.82 minus the 0.27 from ICI/NP = 9.55 TPD VOC, and 5.63 TPD 
NOX) are not fully approvable as creditable until EPA fully 
approves each source-specific SIP revision.
    PADEP needs 3.42 TPD of the 6.54 TPD VOC emission reduction it 
claims from one source, Fasson (located in Bucks County) to meet the 
1999 ROP target. The credits from the VOC and NOX RACT 
sources in PADEP's plan would provide a buffer to ensure that the ROP 
target is met.
    Fully creditable reductions: 0.27 TPD VOC
    Additional reductions: 9.55 TPD VOC and 5.63 TPD NOX

(Not fully approvable as creditable until EPA fully approves the 
case-by-case SIP revisions)
Autobody Refinishing Coatings
    According to EPA's guidance and proposed national autobody 
refinishing rule, PADEP claimed a 37% reduction from this source 
category. PADEP used projected 1999 uncontrolled VOC emissions of 18.34 
TPD to calculate a 6 TPD emission reduction.
    This is a federally implemented control measure. EPA's final rule, 
``National Volatile Organic Compound Emission Standards for Automobile 
Refinish Coatings,'' was published on September 11, 1998 (63 FR 48806). 
This rule will result in a 36% VOC reduction for areas such as 
Philadelphia that are currently unregulated for this source category.
    EPA reviewed the area source emissions data and projections 
included in the plan, and determined that the 1999 projected 
uncontrolled VOC emissions for autobody refinish coatings is 17.176 
TPD.
    Fully creditable reductions: 36%  x  17.176 = 6.18 TPD VOC
Consumer Products
    PADEP claims a 20% reduction from this control measure, and states 
that the 1999 uncontrolled VOC emissions from this source category are 
33 TPD. This is a federally implemented control measure. The final rule 
``National Volatile Organic Compound Emission Standards for Consumer 
Products,'' (63 FR 48819), published on September 11, 1998, results in 
a 20% reduction. EPA reviewed the area source emissions data and 
projections that PADEP included in appendix IV, Area Source Emissions 
Data and concluded that PA used the overall consumer & commercial 
products emission factor, 6.3 pounds per capita annually, to calculate 
the 1999 projected emissions for this source category. EPA's consumer 
products rule only covers a subset of that source category, and the 
proper emission factor is 3.9 pounds per capita annually, as specified 
in the June 22, 1995 memorandum from John S. Seitz, Director of EPA's 
Office of Air Quality Planning and Standards, entitled ``Regulatory 
Schedule for Consumer and Commercial Products under section 183(e) of 
the Clean Air Act.'' Therefore, PADEP overestimated the creditable 
emission reduction by a factor of 1.62 (6.3  3.9 = 1.62).
    The 1999 projected uncontrolled emission from the entire consumer 
products source category in the Philadelphia area is 33.205 TPD. 
Therefore, the 1999 uncontrolled emissions from the sources covered by 
the consumer products rule is 20.497 TPD (33.205  1.62).
    Fully creditable reductions: 20%  x  20.497 = 4.10 TPD VOC
Architectural and Industrial Coatings
    PADEP claims a 15% reduction from this measure, and states that the 
uncontrolled emissions from this category are approximately 40 TPD, and 
the resulting emission reduction is 7 TPD. This is a federally 
implemented control measure. EPA's final rule, ``National Volatile 
Organic Compound

[[Page 46330]]

Emission Standards for Architectural Coatings,'' (63 FR 48848), 
published on September 11, 1998, results in a 20% reduction. EPA 
reviewed the area source emissions data and projections that PADEP 
included in appendix IV, Area Source Emissions Data, to determine the 
1999 projected uncontrolled VOC emissions for architectural coatings. 
Uncontrolled emissions from architectural surface coatings, high 
performance industrial coatings, and other special purpose coatings 
total 36.325.
    Fully creditable reductions: 20%  x  36.325 = 7.27 TPD VOC
Treatment, Storage, and Disposal Facilities (TSDFs)
    In the plan, PADEP states that the federally-implemented Phase II 
TSDF standards require 93% control of emissions from this source 
category. PADEP states that, using an 80% rule effectiveness factor, 
emission reductions from this control measure equal about 10 TPD. This 
is a federally implemented control measure. EPA reviewed the area 
source emissions data and projections that PADEP included in appendix 
IV, Area Source Emissions Data, to determine the 1999 projected 
uncontrolled VOC emissions for TSDFs to be 12.689 TPD.
    EPA promulgated Phase I of the TSDF national rule on June 21, 1990 
(55 FR 25454). In a May 6, 1993 policy memo, ``Credit Toward the 15 
Percent Rate-of-Progress Reductions from Federal Measures,'' from G.T. 
Helms, Chief, Ozone/Carbon Monoxide Programs Branch and Susan Wyatt, 
Chief, Chemicals and Petroleum Branch, to Air Branch Chiefs, Regions I-
X, EPA specified that the maximum reduction limit that states could 
claim for Phase II of the national TSDF regulation is 93% of total TSDF 
emissions. The Phase II TSDF rule was published in the Federal Register 
on December 6, 1994 (59 FR 62896) and subsequently amended on February 
9, 1996 (61 FR 4903) and November 25, 1996 (61 FR 59932). Final 
compliance with the Phase II requirements is required by no later than 
December 8, 1997. Using an 80% rule effectiveness factor, creditable 
emission reductions from this control measure equal 9.44 TPD.
    Fully creditable reductions: 93%  x  80% x 12.698 = 9.44 TPD VOC.

D. EPA Evaluation of Rate of Progress Plan

    EPA's review of this Pennsylvania submittal indicates that the 
Commonwealth has adopted, submitted and implemented adequate measures 
to achieve the Act's required 9 percent reduction in ozone precursor 
emissions between 1996 and 1999 and offset VOC growth with VOC 
reductions in that same period. As shown in the table below, the 
emission reductions from the measures in PADEP's Post-96 plan will meet 
the 9% requirement. When all measures are fully SIP approved, they will 
result in fully creditable emission reductions of 9% for NOX 
and 0% for VOC.

                         Emission Reductions in the Philadelphia Post-96 ROP Plan (TPD)
----------------------------------------------------------------------------------------------------------------
                                                    VOC                                     NOX
                                 -------------------------------------------------------------------------------
        Control Measures                              Not yet creditable                            Not yet
                                   Fully creditable            *           Fully creditable       creditable*
----------------------------------------------------------------------------------------------------------------
RFG.............................               22.41  ..................                0.43  ..................
Enhanced I/M....................               59.28  ..................               32.29
FMVCP/Tier 1....................                6.92  ..................               14.84
Stage II........................               17.71
NOX MOU.........................  ..................  ..................  ..................               27.37
RACT & Source-Specific VOC                      0.27                9.55  ..................                5.63
 Controls.......................
AIM.............................                7.27
Autobody Refinishing............                6.18
Consumer Products...............                4.10
TSDF Controls...................                9.44
Subtotals.......................              133.58                9.55               47.56               33.00
                                 -------------------------------------------------------------------------------
    Total Reductions............                  143.13
                                                   80.56
                                 -------------------------------------------------------------------------------
    Required Reductions.........                    137
                                                    73
----------------------------------------------------------------------------------------------------------------
* These emission reductions will not be fully approvable as creditable until EPA fully approves the related
  control measures into the Pennsylvania SIP.

    EPA cannot propose full approval of the plan until all underlying 
measures from which emission reductions are credited are fully approved 
into Pennsylvania's SIP. Therefore, EPA cannot fully approve the Post 
96 ROP plan until the OTC NOX MOU rule and the source 
specific SIP revision for Fasson in Bucks County are fully approved. 
EPA is proposing limited approval of the Post-1996 ROP plan for the 
Pennsylvania portion of the Philadelphia area on the basis that it 
strengthens the SIP. The limited approval would remain until EPA fully 
approves the NOX MOU rule, and the source-specific SIP 
revision for Fasson needed to meet the target.
    EPA is soliciting public comments on the issues discussed in this 
document or on other relevant matters. These comments will be 
considered before taking final action. Interested parties may 
participate in the Federal rulemaking procedure by submitting written 
comments to the EPA Regional office listed in the Addresses section of 
this document.

Proposed Action

    EPA is proposing limited approval of the Post-96 ROP plan for the 
Pennsylvania portion of the Philadelphia severe ozone nonattainment 
area, submitted by the Commonwealth of Pennsylvania on July 31, 1998.

Administrative Requirements

A. Executive Orders 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from review under 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

[[Page 46331]]

the funds necessary to pay the direct compliance costs incurred by 
those governments. If EPA complies by consulting, E.O. 12875 requires 
EPA to provide to the Office of Management and Budget a description of 
the extent of EPA's prior consultation with representatives of affected 
state, local, and tribal governments, the nature of their concerns, 
copies of 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 duties on these 
entities. 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), applies to any rule that the EPA determines (1) is 
``economically significant,'' as defined under Executive Order 12866, 
and (2) the environmental health or safety risk addressed by the rule 
has 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.
    This proposed rule is not subject to Executive Order 13045 because 
it is not an economically significant regulatory action as defined by 
Executive Order 12866, and it does not address an environmental health 
or safety risk that would have a disproportionate effect on children.

D. 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. If EPA complies by 
consulting, E.O. 13084 requires EPA to provide to the Office of 
Management and Budget, in a separately identified section of the 
preamble to the rule, a description of the extent of EPA's prior 
consultation with representatives of affected tribal governments, a 
summary of the nature of their concerns, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 13084 
requires EPA to develop an effective process permitting elected 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 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) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions. This proposed rule will not have a significant impact on 
a substantial number of small entities because SIP approvals under 
sections 110 and 301, and subchapter I, part D of the CAA do not create 
any new requirements but simply approve requirements that the State is 
already imposing. Therefore, because the Federal SIP approval does not 
impose any new requirements, I certify that it does not have a 
significant impact on any small entities affected. Moreover, due to the 
nature of the Federal-State relationship under the Clean Air Act, 
preparation of a flexibility analysis would constitute Federal inquiry 
into the economic reasonableness of state action. The Clean Air Act 
forbids EPA to base its actions concerning SIPs on such grounds. Union 
Electric Co. v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 
7410(a)(2).

F. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
annual costs to State, local, or tribal governments in the aggregate; 
or to private sector, of $100 million or more. Under section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule. EPA has determined that 
this proposed approval action, proposing limited approval of 
Pennsylvania's July 31, 1998 Post-96 ROP plan for its portion of the 
Philadelphia severe ozone nonattainment area, does not include a 
Federal mandate that may result in estimated annual costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

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

    Dated: August 12, 1999.
W. Michael McCabe,
Regional Administrator, Region III.
[FR Doc. 99-22047 Filed 8-24-99; 8:45 am]
BILLING CODE 6560-50-P