[Federal Register Volume 64, Number 212 (Wednesday, November 3, 1999)]
[Proposed Rules]
[Pages 59706-59718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28725]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region 2 Docket No. NY37-202, FRL-6469-7]


Approval and Promulgation of Implementation Plans; New York 15 
and 9 Percent Rate of Progress Plans, Phase I Ozone Implementation Plan 
and 1996 and 1999 Transportation Conformity Budgets

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing action 
on a State Implementation Plan revision submitted by New York which is 
intended to meet several Clean Air Act requirements. EPA is proposing 
approval of the 1990 base year ozone emission inventory (for all ozone 
nonattainment areas in New York); the 1996 and 1999 ozone projection 
emission inventories; demonstration that emissions from growth in 
vehicle miles traveled will not increase motor vehicle emissions and, 
therefore, offsetting measures are not necessary; modeling efforts 
completed to date; transportation conformity budgets; photochemical 
assessment monitoring stations network; and enforceable commitments. 
EPA is also proposing

[[Page 59707]]

approval of New York's 15 Percent Rate of Progress Plan and the 9 
Percent Reasonable Further Progress Plan. The intended effect of this 
action is to approve programs required by the Clean Air Act which will 
result in emission reductions that will help achieve attainment of the 
one-hour national ambient air quality standard for ozone.

DATES: Comments must be received on or before December 3, 1999.

ADDRESSES: All comments should be addressed to: Raymond Werner, Acting 
Chief, Air Programs Branch, Environmental Protection Agency, Region 2 
Office, 290 Broadway, 25th Floor, New York, New York 10007-1866.
    Copies of the New York submittals and EPA's Technical Support 
Document are available at the following addresses for inspection during 
normal business hours:

Environmental Protection Agency, Region 2 Office, Air Programs Branch, 
290 Broadway, 25th Floor, New York, New York 10007-1866
New York State Department of Environmental Conservation, Division of 
Air Resources, 50 Wolf Road, Albany, New York 12233

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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. What is required by the Clean Air Act and how does it apply to 
New York?
II. What was included in New York's submittal?
    A. What emission inventories were included in New York's 
submittal and do they meet EPA's guidance?
    1. 1990 base year inventory
    2. 1996 and 1999 projection year inventories for the New York 
Metropolitan Area
    B. What are the Act requirements for an approvable 15 Percent 
Rate of Progress Plan and what does New York's 15 Percent Plan 
consist of?
    C. What are the Act requirements for an approvable 9 Percent 
Reasonable Further Progress Plan and what does New York's 9 Percent 
Plan consist of?
IV. What other Phase I required elements has New York satisfied in 
their submittal?
    A. What modeling work was submitted by New York?
    B. Did New York satisfy the Ozone Transport Commission NOx MOU 
requirement?
    C. What commitments to future actions were included in New 
York's submittal?
    D. Has New York satisfied the Phase I Clean Fuel Fleet 
requirement?
    E. Does New York need to offset growth in emissions from growth 
in VMT?
    F. Has New York submitted an approvable photochemical assessment 
monitoring station network?
V. Are New York's transportation conformity budgets approvable?
VI. What are EPA's Phase I Findings?
VII. What are EPA's Conclusions?
VIII. Administrative Requirements
    A. Executive Order 12866
    B. Executive Orders on Federalism
    C. Executive Order 13045
    D. Executive Order 13084
    E. Regulatory Flexibility Act
    F. Unfunded Mandates

I. What Is Required by the Clean Air Act and How Does It Apply to 
New York?

    Section 182 of the Clean Air Act (Act) specifies the required State 
Implementation Plan (SIP) submissions and requirements for areas 
classified as nonattainment for ozone and when these submissions and 
requirements are to be submitted to EPA by the states. EPA has issued 
the ``General Preamble for the Implementation of Title I of the Clean 
Air Act Amendments of 1990'' (General Preamble) describing in detail 
EPA's preliminary views on how EPA intends to review SIPs and SIP 
revisions submitted under Title I of the Act, [see generally 57 FR 
13498 (April 16, 1992) and 57 FR 18070 (April 28, 1992)]. Because EPA 
is describing its interpretations here only in broad terms, the reader 
should refer to the General Preamble for a more detailed discussion of 
the interpretations of Title I advanced in today's proposal and the 
supporting rationale.
    New York was originally divided into six ozone nonattainment areas. 
These areas were the Albany-Schenectady-Troy Area, Buffalo-Niagara 
Falls Area, Essex County Area, Jefferson County Area, Poughkeepsie Area 
and the New York-Northern New Jersey-Long Island Area. The New York-
Northern New Jersey-Long Island Area is classified as a severe ozone 
nonattainment area. The New York portion of the New York-Northern New 
Jersey-Long Island Area is composed of New York City and the counties 
of Nassau, Suffolk, Westchester and Rockland, referred to as the New 
York City Metropolitan Area (NYCMA), and certain towns in Orange 
County-Blooming Grove, Chester, Highlands, Monroe, Tuxedo, Warwick and 
Woodbury, referred to as the Lower Orange County Metropolitan Area 
(LOCMA). The primary focus of this Federal Register action is the New 
York portion of the New York-Northern New Jersey-Long Island Area 
(referred to as the New York Metropolitan Area). EPA is also acting on 
the 1990 base year emission inventories for the five upstate areas 
identified above.

II. What Was Included in New York's Submittal?

    On February 2, 1999, Deputy Commissioner Johnson of the New York 
State Department of Environmental Conservation (NYSDEC) submitted to 
EPA a revision to the SIP to meet requirements related to attainment of 
the National Ambient Air Quality Standards (NAAQS) for ozone, referred 
to as Phase I. New York's submittal revised the previously submitted 15 
Percent Rate of Progress (ROP) Plan dated November 15, 1993 and 
September 4, 1997. In addition, these revisions are intended to fulfill 
EPA's Phase I requirement (``Ozone Attainment Demonstrations,'' March 
2, 1995 memo from Mary Nichols) and includes the following: revisions 
of the 1990 base year ozone emission inventory (for areas designated 
nonattainment for ozone since 1991 in New York); the 1996 and 1999 
ozone projection emission inventories; 9 Percent Reasonable Further 
Progress (RFP) Plan; contingency measures; demonstration that emissions 
from growth in vehicle miles traveled will not increase motor vehicle 
emissions and, therefore, offsetting measures are not necessary; 
modeling efforts completed to date; enforceable commitments for Phase 
II; photochemical assessment monitoring stations network; and 
transportation conformity budgets. EPA will be acting on the 
contingency measures in a separate Federal Register notice.

A. What Emission Inventories Were Included in New York's Submittal and 
Do They Meet EPA's Guidance?

    New York's submittal included revisions of the 1990 base year ozone 
emission inventory (for areas designated nonattainment for ozone since 
1991 in New York) and the 1996 and 1999 ozone projection emission 
inventories.
1. 1990 Base Year Inventory
    Based on EPA's review, New York has satisfied all of EPA's 
requirements of providing a comprehensive, accurate, and current 
inventory of actual emissions in the six ozone nonattainment areas. A 
more detailed discussion of how the emission inventory was reviewed and 
the results are presented in the technical support document (TSD). A 
summary of EPA's review is given below:

--New York submitted a final Inventory Preparation Plan for the 
``Development of Ozone/CO SIP Inventory of Base Year 1990 Emissions,'' 
September 24, 1992. This Plan contained a Quality Assurance

[[Page 59708]]

Plan which was implemented and documented.
--The inventory is well documented. New York provided documentation 
detailing the methods used to develop emissions estimates for each 
category. In addition, New York identified the sources of data used in 
developing the inventory.
--The point and area source inventories are complete and were prepared/
calculated in accordance with EPA guidance.
--New York biogenic emissions were prepared/calculated using the July 
1991 version of PC-BEIS according to current EPA guidance.
--The method used to develop vehicle miles traveled (VMT) estimates was 
in accordance with EPA guidance and was adequately described and 
documented in the inventory report.
--The most current version of the Mobile model was used correctly for 
each of the eight vehicle classes.
--Emission estimates for the non-road mobile source categories were 
correctly prepared according to EPA guidance.

    The revisions have been made in accordance with EPA guidance. 
Therefore, EPA is proposing to approve the revisions to the 1990 base 
year volatile organic compounds (VOC), nitrogen oxides (NOx) and carbon 
monoxide (CO) emission inventories.1
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    \1\ EPA's March 1991 guidance document, ``Emission Inventory 
Requirements for Ozone State Implementation Plans'' (EPA-450/4-91-
010), requires the base year inventory summary contain emission 
estimates of VOC, NOx and CO.
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    A summary of the emission inventories broken down by point, area, 
biogenic, on-road, and non-road mobile sources are presented in the 
Tables 
1A-1F.

             Table 1A.--New York Metropolitan Area 1990 Base Year Ozone Season Emissions in Tons/Day
----------------------------------------------------------------------------------------------------------------
                                                    Point       On-road      Non-road
             Pollutant              Area source     source       mobile       mobile      Biogenic      Total
                                     emissions    emissions    emissions    emissions                 emissions
----------------------------------------------------------------------------------------------------------------
VOC...............................          381          103          484          167          103        1,238
NOX...............................           59          286          400          178          N/A          923
CO................................           40           45        3,890        1,333          N/A        5,308
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            Table 1B.--Albany-Schenectady-Troy Area 1990 Base Year Ozone Season Emissions in Tons/Day
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                                                  Point        On-road      Non-road
            Pollutant             Area source     source       mobile        mobile       Biogenic      Total
                                   emissions    emissions     emissions     emissions                 emissions
----------------------------------------------------------------------------------------------------------------
VOC.............................        48.27        78.66         54.40         23.5        222.11       426.79
NOX.............................         4.84        73.34         73.10         23.35          N/A       174.63
CO..............................         3.16        15.04        474.6         174.32          N/A       667.12
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             Table 1C.--Buffalo-Niagara Falls Area 1990 Base Year Ozone Season Emissions in Tons/Day
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                                                    Point       On-road      Non-road
             Pollutant              Area source     source       mobile       mobile      Biogenic      Total
                                     emissions    emissions    emissions    emissions                 emissions
----------------------------------------------------------------------------------------------------------------
VOC...............................        67.11       156.45         50.5        32.70        61.06       367.85
NOX...............................         9.54       116.53         75.3        29.55          N/A       230.92
CO................................         5.13        69.06        437.7        24.12          N/A       536.00
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                 Table 1D.--Poughkeepsie Area 1990 Base Year Ozone Season Emissions in Tons/Day
----------------------------------------------------------------------------------------------------------------
                                                    Point       On-road      Non-road
            Pollutant               Area source     source       mobile       mobile      Biogenic      Total
                                     emissions    emissions    emissions    emissions                 emissions
----------------------------------------------------------------------------------------------------------------
VOC..............................         31.70        15.73        39.27        13.45        56.51       156.66
NOX..............................          4.0         66.47        50.69        15.42          N/A       136.58
CO...............................          1.9          5.73       338.00        23.35          N/A       368.98
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                 Table 1E.--Essex County Area 1990 Base Year Ozone Season Emissions in Tons/Day
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                                                   Point       On-road      Non-road
            Pollutant              Area source     source       mobile       mobile      Biogenic       Total
                                    emissions    emissions    emissions    emissions                  emissions
----------------------------------------------------------------------------------------------------------------
VOC..............................         1.98          .29         2.97          .97       182.22        188.43
NOX..............................          .18         2.50         4.89          .83          N/A          8.4
CO...............................          .36         1.45        25.06         7.61          N/A         34.48
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[[Page 59709]]


               Table 1F.--Jefferson County Area 1990 Base Year Ozone Season Emissions in Tons/Day
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                                                                On-road      Non-road
            Pollutant              Area source  Point source     mobile       mobile      Biogenic      Total
                                    emissions     emissions    emissions    emissions                 emissions
----------------------------------------------------------------------------------------------------------------
VOC.............................          5.53          1.5          7.00         2.88        83.08        99.99
NOX.............................           .56          3.43         12.6         2.69          N/A        19.28
CO..............................           .33           .23        61.90        21.72          N/A        84.18
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2. 1996 and 1999 Projection Year Inventories for the New York 
Metropolitan Area
    A projection of 1990 VOC anthropogenic emissions to 1996 for the 
New York Metropolitan Area is required to determine the reductions 
needed for the 15 Percent ROP Plan. In addition, projection of the 1990 
VOC and NOx anthropogenic emissions to 1999 are required to determine 
the reductions needed for the 9 Percent RFP Plan with NOx substitution. 
The 1996 and 1999 projection year emission inventories are calculated 
by multiplying the 1990 base year inventory by factors which estimate 
growth from 1990 to 1996 and 1990 to 1999. A specific growth factor for 
each source type in the inventory is required since sources typically 
grow at different rates.
    The difference between the most current 1990 base year inventory 
and the 1996 and 1999 projection inventories are the emissions growth 
estimates. Based on the difference between the 1990 base year inventory 
and the 1996 and 1999 projection year inventories, the total 1990-1996 
and 1990-1999 VOC growth for the four source categories is estimated at 
40 tons per day (tpd) and 81 tpd, respectively, in the New York 
Metropolitan Area. The total 1990-1996 and 1990-1999 NOx growth for the 
four source categories is estimated at 79 tpd and 125 tpd, 
respectively, in the New York Metropolitan Area.
    Projection Methodology. Point Sources. For the point source 
category, New York projected 1990 base year emissions to 1996 and 1999 
for each facility using Bureau of Economic Analysis (BEA) growth 
indicators available from New York State at the two-digit Standard 
Industrial Classification (SIC) Code level.
    Since BEA growth indicators are one of the preferred growth 
indicators to use, as outlined in ``Procedures for Preparing Emissions 
Projections,'' July 1991, EPA finds New York's 1996 and 1999 point 
source projection methodologies to be acceptable.
    Area Sources. For the area source category, New York projected 
emissions from 1990 to 1996 and 1999 using population and BEA growth 
rates where applicable. This is in accordance with EPA's recommended 
growth indicators for projecting emissions for area source categories 
outlined in ``Procedures for Preparing Emissions Projections,'' July 
1991.
    Non-Road Mobile Sources. For the non-road mobile source category, 
New York projected emissions utilizing EPA's guidance documents. New 
York included reductions anticipated from reformulated gasoline and new 
engine standards. Population growth rates were utilized to project the 
subcategory emissions except for light commercial, industrial and 
construction equipment which used the BEA growth rates. EPA finds New 
York's methodology for projecting nonroad mobile sources to be 
acceptable.
    On-Road Mobile Sources. For the highway mobile source category, the 
primary indicator and tool for developing on-road mobile growth and 
expected emissions are VMT and EPA's mobile emissions model Mobile 5b. 
1996 and 1999 VOC and NOX emission factors were generated by 
Mobile 5b and applied to the New York State Department of 
Transportation (NYSDOT) VMT projections.
    NYSDOT projected VMT by county and functional roadway 
classification based upon linear regression of historical Highway 
Performance Monitoring System (HPMS) VMT data. NYSDOT's method is in 
accordance with EPA's recommended growth indicators for projecting 
emissions for on-road mobile source categories outlined in ``Procedures 
for Preparing Emissions Projections,'' July 1991.
    The 1996 and 1999 projection year emission inventories were 
calculated in accordance with EPA guidance. Therefore, EPA is proposing 
to approve the 1996 and 1999 projection year inventories. A more 
detailed discussion of how the emission inventories were reviewed and 
the results are presented in the TSD.
    Tables 2A and 2B show 1996 and 1999 VOC and NOX 
projection emission inventories using the aforementioned growth 
indicators/methodologies.

           Table 2A.--New York Metropolitan Area 1996 Projection Year Emissions Inventory in Tons/Day
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                                                                 Point       On-road      Non-road
                   Pollutant                     Area source     source       mobile       mobile       Total
                                                  emissions    emissions    emissions    emissions    emissions
----------------------------------------------------------------------------------------------------------------
VOC............................................          388          109          506          172        1,175
NOX............................................           61          311          443          187        1,002
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           Table 2B.--New York Metropolitan Area 1999 Projection Year Emissions Inventory in Tons/Day
----------------------------------------------------------------------------------------------------------------
                                                                 Point       On-road      Non-road
                   Pollutant                     Area source     source       mobile       mobile       Total
                                                  emissions    emissions    emissions    emissions    emissions
----------------------------------------------------------------------------------------------------------------
VOC............................................          393          113          534          176        1,216
NOX............................................           62          327          467          192        1,048
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[[Page 59710]]

B. What Are the Act Requirements for an Approvable 15 Percent Rate of 
Progress Plan and What Does New York's 15 Percent Plan Consist of?

    Section 182(b)(1) of the Act as amended in 1990 requires ozone 
nonattainment areas with classifications of moderate and above to 
develop plans to reduce area-wide VOC emissions by 15 percent from a 
1990 adjusted baseline. The plans were to be submitted by November 15, 
1993 and the reductions were required to be achieved within six years 
of enactment or by November 15, 1996. The Act also sets limitations on 
the creditability of certain types of reductions. Specifically, states 
cannot take credit for reductions achieved by Federal Motor Vehicle 
Control Program (FMVCP) measures (new car emissions standards) 
promulgated prior to 1990 and Reid Vapor Pressure (RVP) programs 
promulgated prior to 1990. Furthermore, the Act does not allow credit 
for corrections to vehicle Inspection and Maintenance Programs (I/M) or 
corrections to reasonably available control technology (RACT) rules 
(RACT fix-ups) that were required to have been made to meet 
requirements in effect prior to 1990.
    The target emission reductions were calculated in accordance with 
EPA guidance. The reader is referred to ``Guidance On The Adjusted Base 
Year Emissions Inventory and The 1996 Target For The 15 Percent Rate of 
Progress Plans,'' (EPA-452/R-92-005). New York's 15 Percent ROP Plan is 
summarized in Table 3A.
    The reader should note that the differences in VOC emissions 
between 1990 and 1996, in the New York Metropolitan Area as depicted in 
Tables 1A and 2A, are not the same as the emission reductions for the 
same time period depicted in Table 3A, Summary of 15 Percent ROP Plan. 
This is because the emissions changes between 1990 and 1996 have been 
adjusted for purposes of the 15 Percent ROP Plan to eliminate emission 
changes not creditable according to the Act. These adjustments are 
explained in detail in the previously referenced guidance.

                Table 3A.--Summary of 15 Percent ROP Plan
------------------------------------------------------------------------
                                                             New York
                                                           metropolitan
                                                             area VOC
                                                            (tons/day)
------------------------------------------------------------------------
Required VOC reductions to meet 15 Percent Plan.........          197.2
Creditable Reductions--Mobile Source control measures:
    Non-Road:
        Reformulated Gasoline...........................            4.0
        New Engine Standard.............................           12.0
    On-Road:
        Reformulated Gasoline...........................           56.6
        Tier I--New Vehicle Program.....................            4.1
        Low Emission Vehicle............................            3.3
        Enhanced Inspection & Maintenance, July 1999               22.2
         Emission Reduction Using Phase-in Cutpoints....
        Pressure/Purge Programs July 1999 Emission                 19.8
         Reduction......................................
        Full Inspection Cycle Completed in November 1999           30.6
Stationary Source control measures: Parts 212, 228, 229,           24.34
 234--VOC RACT..........................................
Area Source control measures:
    Auto Body Refinishing...............................            5.7
    Commercial Bakeries (Part 212)......................            2.1
    Consumer Products...................................           12.1
    Graphic Art Facilities..............................            0.7
    Stage II for 1.2 to 2.5K Gal/Yr Stations............            1.6
    Stage II for LOCMA..................................            0.4
    Transit/Loading Losses..............................            0.5
                                                         ---------------
        Total VOC reductions............................          200.04
                                                         ===============
Surplus.................................................            2.84
Reductions not credited in today's action--Stationary               2.27
 Source control measures: Capped/shut down Emissions....
------------------------------------------------------------------------

    Measures Achieving the Projected Reductions. New York has provided 
a plan to achieve the reductions required for the New York Metropolitan 
Area. The following is a concise description of each control measure 
New York used to achieve emission reduction credit within its 15 
Percent ROP Plan. All of the New York measures have been adopted and 
submitted as SIP revisions. EPA has previously approved most of the 
control measures, including interim approval of the enhanced vehicle I/
M program.
    Mobile source control measures. Reformulated Gasoline. Section 
211(k) of the Act requires that after January 1, 1995 in severe and 
above ozone nonattainment areas, only reformulated gasoline (RFG) be 
sold or dispensed. RFG is reformulated to burn cleaner and produce 
fewer evaporative emissions. Specifically, RFG Phase I (1995--1999) 
must achieve reductions in VOCs of 15 to 17 percent and no increase in 
NOx from 1990 baseline gasoline emission levels. RFG Phase II (2000+) 
must achieve reductions in VOCs of 25 to 29 percent and reductions in 
NOx of five to seven percent from 1990 baseline emissions. EPA agrees 
with the reductions toward New York's ROP that were calculated due to 
the sale of RFG for both on-road and off-road use.
    New Engine Standards. In November 1994, EPA provided guidance 
entitled, ``Future Nonroad Emission Reduction Credits for Court-Ordered 
Nonroad Standard'' for calculating future years' emission benefits from 
new engines proposed standards. The small gasoline engine standards, 
except recreational marine vessels, are being implemented in two phases 
starting with 1997 engine model year for both VOC and NOx and 
additional phase II exhaust and evaporative emission standards 
effective by 2001 engine model year. On

[[Page 59711]]

September 7, 1994, EPA issued a memo entitled, ``Advance Emission 
Reduction Credits for Small Nonroad Gasoline Engines'', which stated 
that advance reductions are available starting in 1994 based upon 
manufacturers introducing lower-emitting small gasoline engines into 
the market earlier than required by EPA's phase I rule. New York 
calculated the expected emission reductions from the proposed new 
engine standards for VOC and NOx based upon EPA's guidance. Further, on 
July 3, 1995 (60 FR 34581), EPA promulgated the first phase and on 
March 30, 1999 (64 FR 15208), EPA promulgated the second phase of the 
regulations to control emissions from new nonroad spark-ignition 
engines. These regulations are contained in the Code of Federal 
Regulations (CFR), Title 40, ``Part 90--Control of Emissions From 
Nonroad Spark-Ignition Engines.''
    EPA has determined that the first phase of the new nonroad 
standards will cause a reduction of VOC emissions by 13.1 percent in 
1997, 19.5 percent in 1998 and 23.9 percent in 1999 nationally. New 
York's estimated emission reductions, based upon EPA's earlier 
guidance, is conservative with respect to the reductions estimated by 
EPA in the 1995 Phase I regulations for new nonroad spark-ignition 
engines. EPA agrees with New York's calculated emission reductions 
associated with the Phase I new engine standards.
    Tier I--New Vehicle Standards & Low Emission Vehicle Program. EPA 
promulgated standards for 1994 and later model year light-duty vehicles 
and light-duty trucks (56 FR 25724). Since the standards were adopted 
after the Clean Air Act Amendments of 1990, the resulting emission 
reductions are creditable toward the 15 percent reduction goal. On 
April 28, 1992, New York adopted revisions to Part 218, ``Emission 
Standards for Motor Vehicles and Motor Vehicle Engines'' to incorporate 
the California low emission vehicle (LEV) standards as a part of New 
York's new motor vehicle emission control program. The New York State 
effective date as a result of the revisions to Part 218 was November 
22, 1992. On January 6, 1995 (60 FR 2025), EPA published a final notice 
approving the revisions to Part 218 as a revision to the SIP. EPA 
agrees that the State's adopted LEV program will provide additional 
reductions which can be attributed to New York's 1996 ROP plan. EPA 
agrees with the emission reductions calculated by New York due to 
vehicle turnover combined with the FMVCP and the LEV program.
    Enhanced I/M. On March 27, 1996 New York submitted revisions to its 
existing Inspection and Maintenance (I/M) program to satisfy applicable 
requirements of the Act and the 1995 National Highway Systems 
Designation Act (NHSDA). On November 27, 1996 (61 FR 60242) EPA 
proposed conditional interim approval of this submittal. The reader is 
referred to that proposal for the details on the enhanced I/M program 
and EPA's findings. Conditional approval was proposed because the March 
27, 1996 New York submittal did not include (1) an indication of when 
the Consumer Price Index adjustments to the $450 repair cost waiver 
would take effect; (2) the modeling demonstrating that the proposed I/M 
program would achieve the required emission reductions; and (3) written 
test procedures, pass/fail standards, and equipment specifications. 
That notice called for New York to commit within 30 days to correct 
these major deficiencies in the submittal as identified above, by 
specific dates. On December 20, 1996, New York committed to correct the 
deficiencies by the timelines stipulated in EPA's November 27, 1996 
proposed conditional interim approval. New York has since submitted the 
necessary material as committed to in the December 20, 1996 letter. On 
October 24, 1997 (62 FR 55343) EPA granted a final interim approval of 
New York's enhanced I/M program under section 110 which strengthens the 
SIP, as well as an interim approval under section 348 of the NHSDA. 
Interim approval was granted for 18 months, or until May 24, 1999, for 
New York to correct six minor, or de minimus, deficiencies related to 
the Act requirements for enhanced I/M and provide EPA with an enhanced 
I/M program effectiveness demonstration. The reader is referred to 
EPA's October 24, 1997 interim approval for the details on the enhanced 
I/M program supplemental submittals and EPA's findings.
    On May 20, 1999, New York submitted to EPA a final revision to the 
New York enhanced I/M program which addressed the six minor, or de 
minimus, deficiencies relating to the Act requirements for enhanced I/
M. In addition, on May 24, 1999 New York submitted to EPA an enhanced 
I/M program evaluation report/program effectiveness demonstration. EPA 
is in the process of reviewing these submittals for technical adequacy 
and approvability and will be acting on these submittals in a separate 
Federal Register notice.
    By today's action, EPA proposes to approve emission credits for the 
15 Percent ROP and 9 Percent RFP Plans, pending EPA's verification of 
New York's enhanced I/M program's effectiveness, under section 348 of 
the NHSDA. If EPA determines New York's enhanced I/M program 
effectiveness demonstration indicates a shortfall in emission 
reductions compared to the emission reductions credited in the 15 
Percent ROP and/or 9 Percent RFP Plans, EPA will propose to disapprove 
the 15 Percent ROP and/or 9 Percent RFP Plans. EPA final action will be 
based on EPA's evaluation of New York's demonstration of the enhanced 
I/M program's effectiveness. If New York's demonstration indicates a 
shortfall in emission reductions compared to the emission reductions 
credited in the 15 Percent ROP and 9 Percent RFP Plans, New York would 
need to find additional emission reduction credits. Failure of New York 
to make up for an emission shortfall may subject them to sanctions and 
imposition of a Federal Implementation Plan. The credits provided by 
the enhanced I/M program for those plans may be adjusted based on EPA's 
evaluation of the enhanced I/M Program's performance.
    Enhanced I/M ``as soon as practicable''. Section 182(b)(1) of the 
Act requires that states containing ozone nonattainment areas 
classified as moderate or above prepare SIPs that provide for a 15 
percent VOC emissions reduction by November 15, 1996. Most of the 15 
Percent ROP Plans originally submitted to EPA contained enhanced I/M 
programs because this program achieves more VOC emission reductions 
than most, if not all other, control strategies. However, many states 
became concerned over the cost and convenience issues related to 
enhanced I/M programs as they were originally envisioned.
    In a response to these concerns in September 1995, EPA finalized 
revisions to its enhanced I/M rule allowing states significant 
flexibility in designing I/M programs appropriate for their needs. 
Subsequently, Congress enacted the NHSDA, which provided states 
significantly more flexibility in determining the design of their 
respective enhanced I/M programs. The substantial lead time required 
for states to redesign and set up the necessary infrastructure of 
enhanced I/M programs in accordance with the NHSDA precluded them from 
obtaining emission reductions from such revised programs by November 
15, 1996.
    Given the heavy reliance by many states upon enhanced I/M programs 
to help achieve the 15 percent VOC emissions reduction required under 
section 182(b)(1), and the recent NHSDA and regulatory changes

[[Page 59712]]

regarding enhanced I/M programs, EPA recognized that it was no longer 
possible for many states to achieve the portion of the 15 percent 
reductions that is attributed to I/M by November 15, 1996. Under these 
circumstances, disapproval of the 15 Percent ROP Plans would serve no 
purpose. Consequently, under certain circumstances, EPA will propose to 
allow states that pursue redesign of enhanced I/M programs to receive 
emission reduction credit from these programs within their 15 Percent 
ROP Plans, even though the emissions reductions from the enhanced I/M 
program will occur after November 15, 1996.
    Specifically, EPA can propose approval of 15 Percent ROP Plans if 
the emissions reductions from the revised, enhanced I/M programs, as 
well as from the other 15 Percent ROP Plan measures, will achieve the 
15 percent level as soon as practicable after November 15, 1996. To 
make this ``as soon as practicable'' determination, EPA must determine 
that the SIP contains all VOC control strategies that are practicable 
for the nonattainment area in question and that meaningfully accelerate 
the date by which the 15 percent level is achieved. EPA does not 
believe that measures meaningfully accelerate the 15 percent date if 
they provide only an insignificant amount of reductions.
    In the case of New York, they have submitted a 15 Percent ROP Plan 
that would achieve the amount of reductions needed from enhanced I/M by 
November 15, 1999. New York has submitted a 15 Percent ROP Plan that 
achieves all other reductions by 1996. In addition, EPA is pursuing 
federal rulemaking on a national scope which will result in additional 
emission reductions. EPA proposes to determine that this SIP does 
contain all measures, including enhanced I/M, that achieves the 
required reductions as soon as practicable.
    EPA has examined other potentially available SIP measures to 
determine if they are practicable for New York and if they would 
meaningfully accelerate the date by which the area reaches the 15 
percent level of reductions. In most cases New York has already adopted 
and implemented stationary control measures that other states are 
considering or which other states have included in their 15 Percent ROP 
Plans. Moreover, there are no measures that would achieve the 15 
Percent reduction faster than the measures in New York's SIP. EPA 
proposes to determine that the SIP does contain the appropriate 
measures.
    Pressure/Purge Programs. The 1992 
I/M regulation requires that the enhanced I/M program include measures 
to curtail evaporative emissions from vehicle fueling systems. One such 
measure includes a functional check of the fuel tank integrity through 
pressurization. For a fraction of the emission reduction credit, EPA 
later allowed use of a test that checks only the integrity of the 
vehicle gas cap. New York has opted to perform this version of the test 
and submitted calculated emission reductions based on its use.
    Full Inspection Cycle. In November 1998, New York began mandatory 
testing under the new inspection program. Although initial operating 
problems were identified, most of the vehicles covered under the 
program have thus far been tested. A legal challenge to the State's 
authority by non-implementing stations briefly allowed the use of the 
old test procedure during the early part of 1999. However, only a small 
portion of the covered vehicles was affected and New York estimates 
that the vast majority of the vehicles will have been tested by 
November 1999. Pending the verification of New York's enhanced 
I/M program's effectiveness, this will allow New York to meet the 
emission credit portion calculated in its 15 percent plan submittal.
    Stationary source control measures. Parts 212, 228, 229, 234--VOC 
RACT. New York has submitted adopted revisions to Part 212, ``General 
Process Emission Sources'' which expanded the coverage of the 
regulation to require RACT on all major VOC process sources not covered 
in EPA issued control techniques guidelines (CTG) documents (referred 
to as ``non-CTG major sources'') and NOX process sources 
throughout New York State and those not previously regulated in the New 
York Metropolitan Area. The New York State effective date as a result 
of the amendments to Part 212 was September 22, 1994. Although Part 212 
is pending EPA rulemaking action, EPA agrees with the reductions 
projected in the New York 15 Percent ROP Plan due to the implementation 
of this rule.
    New York submitted adopted revisions to Part 228, ``Surface Coating 
Processes,'' Part 229, ``Petroleum and Volatile Organic Liquid 
Storage,'' and Part 234, ``Graphic Arts'' which became New York State 
effective on April 4, 1993. These revisions extended the applicability 
of New York's RACT rules for sources covered by pre-enactment CTGs 
statewide and also added control requirements for some non-CTG RACT 
sources. On December 23, 1997 (62 FR 67004), EPA published a final 
notice approving these rules as a revision to the SIP. EPA agrees with 
the reductions projected in the New York 15 Percent ROP Plan due to the 
implementation of these rules.
    Area source control measures: Auto Body Refinishing. On September 
11, 1998 (63 FR 48806), EPA promulgated a national rule to control VOC 
emissions from solvent evaporation through reformulation of coatings 
used in auto body refinishing processes. These coatings are typically 
used by small businesses, or by vehicle owners. VOC emissions emanate 
from the evaporation of solvents used in the coating process. Use of 
emissions reductions from EPA's national rule is creditable toward ROP 
and RFP plans. EPA agrees with the reductions projected in the New York 
15 Percent ROP Plan due to the implementation of this rule.
    Commercial Bakeries (Part 212). As stated above, New York submitted 
adopted revisions to Part 212 ``General Process Emission Sources.'' 
Commercial bakeries had previously been exempt from the control 
requirements of Part 212, however, the revisions to Part 212 subject 
commercial bakeries to control requirements and includes a provision 
which sets forth a deadline in which bakeries must apply for a 
certificate to operate. Although Part 212 is pending EPA rulemaking 
action, EPA agrees with the reductions projected in the New York 15 
Percent ROP Plan due to the implementation of this rule.
    Consumer Products. On September 11, 1998 (63 FR 48819) EPA 
promulgated a national rule to control VOC emissions from household 
consumer products, such as cleaning products, personal care products, 
and a variety of insecticides. EPA's regulation is based on best 
available controls, as defined under the Act, and sets specific VOC 
content limits on 24 consumer product categories (some product 
categories are divided into subcategories). VOC limits would be met by 
the pollution prevention method of product reformulation. Use of 
emissions reductions from EPA's national rule is creditable toward ROP 
and RFP plans. EPA agrees with the reductions projected in the New York 
15 Percent ROP Plan due to the implementation of this rule.
    Graphic Arts Facilities (Part 234). As stated above, New York 
submitted adopted revisions to Part 234, ``Graphic Arts'', which became 
New York State effective on April 4, 1993. These amendments extended 
the applicability of regulations currently in force in the NYCMA to the 
major VOC facilities in LOCMA. Control requirements for screen printing 
operations and

[[Page 59713]]

lithographic printing processes (both which are non-CTG categories) 
have been mandated. Part 234 also has opacity limitations and 
provisions for the handling, storage, and disposal of VOC. EPA agrees 
with the reductions projected in the New York 15 Percent ROP Plan due 
to the implementation of this rule.
    Stage II for 1.2 to 2.5K Gal/Yr Stations (Part 230). New York 
submitted adopted revisions to Part 230 ``Gasoline Dispensing Sites and 
Transport Vehicles'' which became New York State effective on September 
22, 1994. The revisions to Part 230 lowered the applicability of the 
Stage II gasoline vapor recovery systems, which capture gasoline vapors 
during the refueling of motor vehicles, within the NYCMA. On April 30, 
1998 (63 FR 23665), EPA published a final notice approving the 
revisions to Part 230 into the SIP. EPA agrees with the reductions 
projected in the New York 15 Percent ROP Plan due to the implementation 
of this rule.
    Stage II for LOCMA (Part 230). New York submitted adopted revisions 
to Part 230 ``Gasoline Dispensing Sites and Transport Vehicles'' which 
became New York State effective on September 22, 1994. The revisions to 
Part 230 expanded the applicability of all the gasoline vapor control 
measures which are required in the NYCMA, into the LOCMA and expanded 
the applicability to cover additional gas stations. On April 30, 1998 
(63 FR 23665), EPA published a final notice approving the revisions to 
Part 230 into the SIP. EPA agrees with the reductions projected in the 
New York 15 Percent ROP Plan due to the implementation of this rule.
    Transit/Loading Losses. New York submitted adopted revisions to 
Part 230 ``Gasoline Dispensing Sites and Transport Vehicles'' which 
became New York State effective on September 22, 1994. The revisions to 
Part 230 expanded the requirements of Stage I gasoline vapor recovery 
systems to gasoline dispensing facilities located in the LOCMA. All 
gasoline transport vehicles which convey gasoline either to or from 
gasoline loading terminals or gasoline bulk plants are to be equipped 
with a vapor control system or equivalent method. On April 30, 1998 (63 
FR 23665), EPA published a final notice approving the revisions to Part 
230 into the SIP. EPA agrees with the reductions projected in the New 
York 15 Percent ROP Plan due to the implementation of this rule.
    Measures Not Creditable in Today's Action. Capped/shutdown 
emissions. Certain facilities chose permit limits on their hours of 
operation to ``cap'' their facilities potential emissions below an 
annual level which reflected their actual hours of operation and 
emissions. These ``capping out'' provisions are included in a number of 
New York VOC and NOX RACT regulations. The ``capping out'' 
provision exempts the facility from RACT requirements and/or Title V 
permitting requirements. In the projection inventory, New York adjusted 
emissions to account for those facilities that have ``capped out''. In 
addition, New York adjusted emissions to account for those facilities 
that have ceased or shutdown operations since the 1990 base year 
emissions inventory was compiled.
    While EPA acknowledges that capped/shutdown facilities may have 
resulted in emission reductions, the documentation New York provided is 
not sufficient to determine whether these reductions are real, 
permanent and enforceable. Further, without this documentation, EPA is 
unable to verify whether the emission reduction credits associated with 
capped/shutdown facilities are not ``double counted'' or, more simply, 
used more than once (i.e., reductions cannot be used for offsets and to 
meet the 15 percent ROP requirement). Because of the uncertainties 
associated with both capped and shutdown emissions, EPA is considering 
these emissions reductions to be noncreditable at this time with 
respect to New York's Phase I Ozone SIP.
    15 Percent ROP Plan Evaluation. New York has identified the control 
measures necessary for achieving the required emission reductions and 
all the measures have been adopted and implemented. EPA is proposing to 
find that the 15 Percent ROP Plan contains the necessary measures as 
identified in Table 3A to achieve the required emission reductions. The 
Plan also satisfies the requirement of achieving these reductions ``as 
soon as practicable'' and there are no remaining measures which could 
be implemented any sooner to offset the delay in the enhanced I/M 
program. Therefore, EPA proposes to approve emission credits for the 15 
Percent ROP, pending EPA's verification of New York's enhanced 
I/M program's effectiveness. If EPA determines New York's enhanced I/M 
program effectiveness demonstration indicates a shortfall in emission 
reductions compared to the emission reductions credited in the 15 
Percent ROP Plan, EPA will propose to disapprove the 15 Percent ROP 
Plan. EPA final action will be based on EPA's evaluation of New York's 
demonstration of the enhanced I/M program's effectiveness.

C. What Are the Act Requirements for an Approvable 9 Percent Reasonable 
Further Progress Plan and What Does New York's 9 Percent Plan Consist 
Of?

    Section 182(c)(2)(B) of the Act requires ozone nonattainment areas 
with classifications of serious and above to develop plans to reduce 
area-wide VOC emissions by 3 percent per year averaged over the next 
three-year period (1997-1999) from a 1990 baseline. This is referred to 
as the 9 Percent RFP Plan. The plan was to be submitted by November 15, 
1994 and the reductions are required to be achieved by November 15, 
1999. The Act also sets limitations on the creditability of certain 
types of reductions.
    The target emission reductions were calculated in accordance with 
EPA guidance. The reader is referred to ``Guidance On The Post 1996 
Rate of Progress Plan and the Attainment Demonstration,'' (EPA-452/R-
93-015).
    Section 182(c)(2)(C) of the Act allows NOX reductions to 
be substituted for VOC reductions for RFP demonstrations provided 
states demonstrate through modeling that NOX reductions are 
needed in the nonattainment area. New York has shown that 
NOX reductions will contribute toward attaining the ozone 
standard (See section IV. A., Modeling discussion below). New York has 
demonstrated that every ton of NOX is equivalent to 
approximately 1.2 tons of VOC in the New York Metropolitan Area on 
percent of total inventory basis. Table 3B includes columns showing the 
VOC and NOX reductions that will result from the 
implementation of the control measures.

           Table 3B.--Summary of New York's 9 Percent RFP Plan
------------------------------------------------------------------------
                                            New York metropolitan area
                                                    (tons/day)
                                         -------------------------------
                                              VOC \2\         NOX \2\
------------------------------------------------------------------------
Required VOC reductions needed to meet 9          130.76  ..............
 Percent Plan

[[Page 59714]]

 
Creditable Reductions--1996 Surplus.....            5.11  ..............
Mobile source control measures:
    Non-Road:
        Reformulated gasoline and New               9               5
         Engine Standards...............
    On-Road:
        Reformulated gasoline...........            4               3.9
        Tier I--New Vehicle Program.....           20.3            43.4
        Low Emission Vehicle............            3.2             7.4
        Enhanced Inspection &             ..............           22.2
         Maintenance July 1999 Emission
         Reduction Using Phase-in
         Cutpoints......................
        Full Inspection Cycle Completed   ..............           15.3
         in November 1999...............
Stationary source control measures:
    Parts 212, 228, 229--VOC RACT.......            0.32  ..............
    MACT (Federal Measures).............            3.19  ..............
    OTC Phase II Baseline (Part 227-3)..  ..............          135.65
    Part 227-2..........................  ..............            6.89
Area source control measures:
    Consumer Products...................            0.1   ..............
    Hospital Sterilizers................            0.1   ..............
    Municipal Solid Waste Landfills.....            4.9   ..............
    Surface Cleaning....................           18.3   ..............
                                         -------------------------------
        Total reductions................           68.52      \3\ 239.74
                                         ===============================
VOC Shortfall...........................           62.24  ..............
VOC and NOX Equivalent Surplus..........           75.44       \4\ 62.87
Reductions not credited in today's                  0.15            2.95
 action--Capped/Shutdown Emissions......
------------------------------------------------------------------------
\2\ VOC emission reductions claimed occur from 1997 through 1999. NOX
  emission reductions claimed occur from 1990 through 1999.
\3\ Of the available 239.74 tpd NOX emissions reductions credits, 125
  tpd are used to meet the growth in NOX emissions and 51.87 tpd to
  cover the VOC shortfall (51.87 tpd of NOX is equivalent to 62.24 tpd
  VOC), 62.87 tpd NOX are surplus.
\4\ 62.87 tons/day of NOX surplus converts to 75.44 tons/day of VOC
  equivalent in the New York Metropolitan Area.

    Measures Achieving the Projected Reductions. New York has provided 
a plan to achieve the reductions required for the New York Metropolitan 
Area. The following is a concise description of each control measure 
New York used to achieve the emission reduction credit within its 9 
Percent RFP Plan. All of the State's measures used in the 9 Percent RFP 
Plan have been adopted and submitted as SIP revisions. EPA has 
previously approved most of the control measures, including interim 
approval of the enhanced vehicle I/M program.
    Mobile Source Measures: New Engine Standard. This is the same 
measure as contained in New York's 15 Percent ROP Plan except New 
York's 9 Percent RFP Plan is only taking the additional VOC credit that 
would be generated for the years 1997-1999 and utilizing the 
substitution of the NOX emission reduction credits generated 
for the years 1990-1999. EPA agrees with the calculated emission 
reductions associated with the New Engine Standard.
    Reformulated Gasoline. This is the same measure as contained in New 
York's 15 Percent ROP Plan except New York's 9 Percent RFP Plan is only 
utilizing the substitution of the NOX emission reduction 
credits generated for the years 1990-1999. EPA agrees with the 
calculated emission reductions associated with reformulated gasoline.
    Enhanced Inspection and Maintenance. This is the same measure as 
contained in New York's 15 Percent ROP Plan except New York's 9 Percent 
RFP Plan is utilizing the substitution of the NOX emission 
reduction credits generated for the years 1990-1999. See above 
discussion for EPA's action on New York's enhanced I/M emission credits 
for the 9 Percent RFP Plan.
    Low Emissions Vehicle Program. This is the same measure as 
contained in New York's 15 Percent ROP Plan except New York's 9 Percent 
RFP Plan is utilizing the substitution of the NOX emission 
reduction credits generated for the years 1990-1999. EPA agrees with 
the calculated emission reductions associated with New York's low 
emission vehicle program.
    Stationary Source Control Measures. Parts 212, 228, 229--VOC RACT. 
This is the same measure as contained in New York's 15 Percent ROP Plan 
except New York's 9 Percent RFP Plan is only taking the additional VOC 
credit that would be generated for the years 1997-1999. EPA agrees with 
the calculated emission reductions associated with these VOC RACT 
measures.
    OTC Phase II Baseline (Part 227-3)--NOX MOU/
NOX RACT. On January 12, 1999, New York adopted revisions to 
Part 227-3 ``Pre 2003 Nitrogen Oxides Emissions Budget and Allocation 
Program,'' which incorporate the NOX MOU requirements. The 
OTC NOX MOU calls for states to reduce NOX 
emissions from boilers and indirect heat exchangers with heat inputs 
greater than 250 million BTU per hour. These emission reductions will 
be realized in two phases, first in 1999 and again in 2003. Part 227-3 
became effective on March 5, 1999 and sources are required to be in 
compliance with the first phase by May 1, 1999. On April 29, 1999, 
NYSDEC submitted to EPA a SIP revision which included the revisions to 
Part 227-3. EPA will be acting on the April submittal in the near 
future. EPA agrees with the calculated emission reductions associated 
with this NOX RACT measure, however, only the first phase of 
reductions will be creditable towards New York's 9 Percent RFP Plan.
    Part 227-2--NOX RACT. On January 19, 1994 and January 
27, 1999, New York adopted revisions to Part 227-2, ``Stationary 
Combustion Installations'' to comply with the Act provisions to 
implement NOX RACT. On April 29, 1999, NYSDEC submitted to 
EPA a SIP

[[Page 59715]]

revision which included the revisions to Part 227-2. Subpart 227-2 
requires the following major source of NOX to achieve RACT 
by May 31, 1995: (1) very large boilers (>250 mmBTU/hr); (2) large 
boilers (>100-250 mmBTU/hr); (3) Mid-size boilers (>50-100 mmBTU/hr); 
(4) small boilers (<50 mmBTU/hr); (5) combustion turbines; (6) 
stationary internal combustion engines; (7) other combustion sources 
(not specifically covered under separate New York regulations). EPA 
will be acting on the April submittal in the near future. EPA agrees 
with the calculated emission reductions associated with this 
NOX RACT measure.
    MACT (Federal Measures). For the 1999 projected emissions 
reductions, VOC emissions reductions from specific source categories 
were adjusted according to RACT (promulgated New York regulations 
discussed previously) and Maximum Achievable Control Technology (MACT--
promulgated federal regulations regarding National Emission Standards 
for Hazardous Air Pollutants). In most cases there was a New York rule 
in place and RACT was applied. Where MACT was in effect and it was more 
stringent than RACT, it took the place of RACT. In order for RACT or 
MACT to have been creditable, it had to have a compliance date prior to 
November 15 of the projection year (i.e., 1999 for creditable 
reductions towards the 9 Percent RFP plan). New York took credit for 
the following MACT standards in the 9 Percent RFP plan:
    (1) 40 CFR 63.190 subpart I--Organic Hazardous Air Pollutants for 
Certain Processes Subject to the Negotiated Regulation for Equipment 
Leaks (59 FR 19402).
    (2) 40 CFR 63.1310 subpart JJJ--Standards for Group IV Polymer and 
Resins (61 FR 48208).
    (3) 40 CFR 63.100 subpart F--Organic Hazardous Air Pollutants From 
the Synthetic Organic Chemical Manufacturing Industry (59 FR 19402).
    (4) 40 CFR 63.460 subpart T--Halogenated Solvent Cleaning (59 FR 
61801).
    (5) 40 CFR 63.640 subpart CC--Petroleum Refineries (60 FR 43244).
    (6) 40 CFR 63.820 subpart KK--Standards for the Printing and 
Publishing Industry (61 FR 27131).
    (7) 40 CFR 63.420 subpart R: Gasoline Distribution (59 FR 64303).
    EPA agrees with the calculated emission reductions associated with 
the federal MACT standards.
    Area Source Control Measures: Consumer Products. This is the same 
measure as contained in New York's 15 Percent ROP Plan except New 
York's 9 Percent RFP Plan is only taking the additional VOC credit that 
would be generated for the years 1997-1999. EPA agrees with the 
calculated emission reductions associated with consumer products.
    Hospital Sterilizers. For 1999 the New York Metropolitan Area will 
be affected by the federal MACT for ethylene oxide sterilizers. The 
MACT requires all ethylene oxide sterilizers to be permitted. This 
permit requirement subsequently subjects them to the control 
requirements of Part 212, ``General Process Emission Sources''. EPA 
agrees with the calculated emission reductions associated with hospital 
sterilizers.
    Municipal Solid Waste Landfills. For 1999, federally adopted New 
Source Performance Standards and a New York State adopted regulation 
for Municipal Solid Waste Landfills will be in effect for certain new 
and existing landfills respectively in the New York Metropolitan Area. 
On March 12, 1996 (61 FR 9919), the EPA promulgated in the Federal 
Register standards of performance for new sources for municipal solid 
waste landfills and emission guidelines for existing municipal solid 
waste landfills. These regulations and guidelines were promulgated as 
subparts WWW and Cc of 40 CFR part 60. On September 22, 1998, New York 
adopted revisions to Part 360.2 ``Landfills'', which became effective 
on November 21, 1998. These revisions make enforceable the requirements 
as outlined in EPA's emission guidelines. On July 19, 1999 (64 FR 
38582), EPA published a final notice approving the revisions to Part 
360.2. EPA agrees with the calculated emission reductions associated 
with the Municipal Solid Waste Landfills.
    Surface Cleaning. For 1999, facilities located in the New York 
Metropolitan Area will be subject to the National Emission Standards 
for Hazardous Air Pollutants (NESHAP) for halogenated solvent cleaning 
(NESHAP--40 CFR 63.460, subpart T). Subpart T applies to facilities 
that use any of the following halogenated hazardous air pollutant 
solvents, which have also been identified as VOC's: (1) trichloethylene 
(TCE); (2) carbon tetrachloride (CT); and (3) chloroform (C). EPA 
agrees with the calculated emission reductions associated with surface 
cleaning.
    Measures Not Creditable in Today's Action. Capped/shutdown 
emissions. As discussed under the 15 Percent ROP Plan section, because 
of the uncertainties associated with both capped and shutdown 
emissions, EPA is considering these emissions reductions to be 
noncreditable at this time with respect to New York's Phase I Ozone 
SIP.
    9 Percent RFP Plan Evaluation. New York has identified the control 
measures necessary for achieving the required emission reductions and 
all the measures have been adopted and implemented. EPA is proposing to 
find that the 9 Percent RFP Plan contains the necessary measures as 
identified in Table 3B to achieve the required emission reductions. EPA 
proposes to approve emission credits for the 9 Percent RFP Plan, 
pending EPA's verification of New York's enhanced I/M program's 
effectiveness. However, as discussed under the 15 Percent ROP Plan 
section, if EPA determines New York's enhanced I/M program 
effectiveness demonstration indicates a shortfall in emission 
reductions compared to the emission reductions credited in the 9 
Percent RFP Plan, EPA will propose to disapprove the 9 Percent RFP 
Plan. EPA final action will be based on EPA's evaluation of New York's 
demonstration of the enhanced I/M program's effectiveness.

IV. What Other Phase I Required Elements Has New York Satisfied in 
Their Submittal?

    New York's submittal is intended to fulfill EPA's Phase I 
requirements (``Ozone Attainment Demonstrations,'' March 2, 1995 memo 
from Mary Nichols) and in addition to the previously mentioned SIP 
elements, includes the following Phase I required elements: modeling 
efforts completed to date; Ozone Transport Commission NOX 
MOU; enforceable commitments for Phase II; clean fuel fleet program; 
analysis of growth in emissions due to increases in VMT; and 
photochemical assessment monitoring stations network.

A. What Modeling Work Was Submitted by New York?

    As part of New York's initial submittal of the 15 and 9 percent 
plans, New York submitted a preliminary modeling analysis using 
assumptions about transported ozone and precursors, as required by the 
March 2, 1995 memo.
    Photochemical grid modeling is used to support New York's submittal 
in two ways: first, meet the requirements set out in EPA's March 2, 
1995 memo for a preliminary modeling analysis and to support the 
State's ability to use reductions in VOC and NOX emissions 
as part of its ROP and RFP Plans.
    The modeling predicts that ozone will be reduced if emissions of 
VOC or of NOX are reduced. This is based on modeling the 
impact of proportionally reducing emissions of VOC and NOX 
together and separately and showing

[[Page 59716]]

that the peak ozone concentration is reduced. Thus, emissions of either 
VOC and NOX can be reduced to improve ozone air quality in 
New York and either can be used in the 15 Percent ROP and 9 Percent RFP 
Plans to the extent allowed in the Act.
    New York has since submitted additional modeling analyses as part 
of their Phase II Ozone Attainment Plan. EPA will act on the Phase II 
Ozone Attainment Plan in a separate Federal Register notice.
    EPA is proposing to accept New York's modeling efforts as 
fulfilling EPA's Phase I requirements.

B. Did New York Satisfy the Ozone Transport Commission NOX 
MOU Requirement?

    EPA is proposing that New York has satisfied EPA's Phase I 
requirement for NOX Memorandum of Understanding (MOU). In 
September 1994, the Ozone Transport Commission agreed to develop a 
regional program to achieve significant reduction in NOX 
emissions from large combustion sources. On September 27, 1994, New 
York signed the MOU which formalized this program. EPA's March 2, 1995 
policy requires states to provide an enforceable commitment to 
implement the NOXMOU, which New York did in a June 15, 1995 
letter to EPA. On January 12, 1999, New York adopted revisions to Part 
227-3 ``Pre 2003 Nitrogen Oxides Emissions Budget and Allocation 
Program,'' which incorporate the NOX MOU requirements. Part 
227-3 became effective on March 5, 1999. On April 29, 1999, NYSDEC 
submitted to EPA a SIP revision which included the revisions to Part 
227-3. EPA will be acting on the April submittal in the near future.

C. What Commitments to Future Actions Were Included in New York's 
Submittal?

    As part of New York's submittal of the Phase I SIP revision, New 
York made commitments to the following EPA March 2, 1995 policy 
requirements: (1) participate in the consultative process to address 
regional transport; (2) adopt additional control measures as necessary 
to attain the ozone standard, meet rate of progress requirements, and 
eliminate significant contribution to nonattainment downwind; and (3) 
identify any reductions that are needed from upwind areas for the area 
to meet the ozone standard.
    New York has since submitted a Phase II Ozone Attainment Plan which 
address the commitments made in their Phase I plan. EPA is proposing to 
accept the commitments made by New York as satisfying EPA's Phase I 
requirements and will act on these elements in conjunction with Phase 
II in the near future.

D. Has New York Satisfied the Phase I Clean Fuel Fleet Requirement?

    With regards to fulfilling EPA's Clean Fuel Fleet Program (CFFP) 
Phase I requirement (``Ozone Attainment Demonstrations,'' March 2, 1995 
memo from Mary Nichols), New York has done so by adopting and 
submitting to EPA a LEV program to be used as a substitute measure for 
CFFP.
    Section 182(c)(4) of the Act requires that serious or above ozone 
and carbon monoxide nonattainment areas implement a CFFP. The Federal 
CFFP requires that light and heavy duty fleets of ten or more vehicles 
in the covered areas assure that a percentage of their annual new 
vehicle purchases be clean fueled vehicles. The Act also allows states 
to opt out of the CFFP with a substitute program or programs which 
achieve equivalent long term emission reductions. On January 6, 1995 
(60 FR 2022) EPA approved New York's opt out of the light duty CFFP 
with its LEV program. The LEV program will cover all the vehicles in 
the New York Metropolitan Area (as well as the rest of New York State), 
of which the light duty vehicles covered by the CFFP would be only a 
subset. Since that time New York has proposed to also opt out of the 
heavy duty portion of the CFFP with the LEV program. New York is 
confident that the LEV program will generate enough long term emission 
reduction credits to be used as a substitute measure for the heavy duty 
CFFP as well and still have surplus credit left over from the far 
reaching LEV program. EPA will be acting on the heavy duty CFFP opt-out 
in a separate Federal Register notice. New York is taking credit for 
the LEV program in the 1996 and 1999 ROP plans and no credit is being 
assigned to the CFFP program in these plans (i.e., there is no ``double 
counting'' of credits). EPA agrees with this treatment of the LEV 
program. With respect to New York's use of LEV as a substitute for the 
CFFP, equivalency is measured in the long term, i.e. by the year 2010, 
therefore its use in that capacity will have no bearing on the State's 
1996 and 1999 ROP plans.

E. Does New York Need To Offset Growth in Emissions From Growth in VMT?

    New York has indicated in its Phase I SIP submittal, that it will 
not need to offset growth in emissions from growth in VMT until at 
least the year 2007, the year New York is required to demonstrate 
attainment. New York has also chosen to comply with the Act's RFP 
milestone and attainment requirements using measures other than 
Transportation Control Measures (TCMs).
    Section 182(d)(1)(A) of the Act requires states containing ozone 
nonattainment areas classified as ``severe'' under section 181(a) of 
the Act to adopt TCMs in order to offset growth in emissions from 
growth in VMT, and to attain reductions in motor vehicle emissions as 
necessary to comply with the Act's RFP milestone and attainment 
requirements.
    Because current modeling does not indicate a need for TCMs to 
offset a growth in emissions before 2007, EPA is proposing to approve 
the part of the ozone SIP that determines that New York is not required 
to adopt specific, enforceable TCMs to meet the TCM offset requirement. 
EPA is also proposing to approve the states decision to comply with the 
RFP milestone and attainment requirements using measures other than 
TCMs.

F. Has New York Submitted an Approvable Photochemical Assessment 
Monitoring Station Network?

    NYSDEC submitted its photochemical assessment monitoring station 
network (PAMS) Network Plan which was reviewed and found approvable on 
September 21, 1998 by EPA and was judged to satisfy the requirements of 
40 CFR 58.40(a).
    Section 182(c)(1) of the Act and the General Preamble (57 FR 13515) 
require that EPA promulgate rules for enhanced monitoring of ozone, 
NOX and VOCs (see 58 FR 8452, February 12, 1993) and that 
states classified serious and above develop and operate a PAMS. NYSDEC 
has been establishing its PAMS network according to its approved Work 
Plan and implementation schedule. The two PAMS sites approved by EPA, 
one in the Bronx and the other in Queens, have been operating since 
1994 and 1997, respectively. EPA is proposing to approve New York's 
PAMS network.

V. Are New York's Transportation Conformity Budgets Approvable?

    By virtue of proposing approval of the 15 Percent ROP Plan and 9 
Percent RFP Plan, EPA is also proposing approval of the motor vehicle 
conformity emissions budgets for VOC and NOX. For the 1999 
analysis year and later, conformity determinations addressing VOC and 
NOX must demonstrate consistency with the 9 Percent RFP Plan 
revision's VOC and NOX motor vehicle emissions budget. Table 
4 summarizes New York's Emission Budgets.

[[Page 59717]]



                                    Table 4.--Emission Budgets for Conformity
----------------------------------------------------------------------------------------------------------------
                                                                        1996                      1999
                                                             ---------------------------------------------------
                           County                              VOC  tons/                VOC  tons/   NOX  tons/
                                                                  day      tons/dayNOX      day          day
----------------------------------------------------------------------------------------------------------------
Bronx.......................................................         22.2         23.6         18.0         20.6
Kings.......................................................         36.5         31.8         29.7         27.6
Nassau......................................................         71.0         69.2         60.0         61.4
New York....................................................         35.1         21.0         27.9         18.5
Orange (LOCMA)..............................................          5.1          9.2          4.9          8.7
Queens......................................................         47.9         44.4         39.0         38.8
Richmond....................................................         13.0         13.1         11.1         11.9
Rockland....................................................         16.9         20.5         14.3         18.4
Suffolk.....................................................         62.3         75.7         53.6         68.0
Westchester.................................................         43.1         54.5         36.1         48.7
                                                             ---------------------------------------------------
    Total...................................................        353.2        362.8        294.7        322.6
----------------------------------------------------------------------------------------------------------------

    EPA is proposing to approve New York's emission budgets.

VI. What Are EPA's Phase I Findings?

    On July 3, 1996, EPA notified the Governor of New York that EPA was 
making a finding of failure to submit all the Act elements required to 
fulfill the March 2, 1995 ``Ozone Attainment Demonstration'' policy as 
committed to by New York. With New York's submittals of September 4, 
1997 and February 2, 1999 (Phase I SIP revision), and December 19, 1997 
(Clean Fuel Fleets Program SIP revision), New York has now submitted 
all the Phase I requirements.

VII. What Are EPA's Conclusions?

    EPA has evaluated these submittals for consistency with the Act, 
applicable EPA regulations, and EPA policy. EPA is proposing approval 
of New York's: revisions to the 1990 base year ozone emission inventory 
(for all ozone nonattainment areas in New York); the 1996 and 1999 
ozone projection emission inventories; photochemical assessment 
monitoring station network; demonstration that emissions from growth in 
vehicle miles traveled will not increase motor vehicle emissions; 
modeling efforts completed to date; transportation conformity budget; 
and enforceable commitments for Phase II. EPA is also proposing to 
approve emission credits for the 15 Percent ROP and 9 Percent RFP 
Plans, pending EPA's verification of New York's enhanced I/M program's 
effectiveness. If EPA determines New York's enhanced I/M program 
effectiveness demonstration indicates a shortfall in emission 
reductions compared to the emission reductions credited 15 Percent ROP 
and/or 9 Percent RFP Plans, EPA will propose to disapprove the 15 
Percent ROP and/or 9 Percent RFP Plans. EPA final action will be based 
on EPA's evaluation of New York's demonstration of the enhanced I/M 
program's effectiveness.

VIII. Administrative Requirements

    A. Executive Order 12866
    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order (E.O.) 12866, entitled 
``Regulatory Planning and Review.''
    B. Executive Orders on Federalism
    Under Executive Order 12875, EPA may not issue a regulation that is 
not required by statute and that creates a mandate upon a state, local 
or tribal government, unless the Federal government provides the funds 
necessary to pay the direct compliance costs incurred by those 
governments, or EPA consults with those governments. If EPA complies by 
consulting, Executive Order 12875 requires EPA to provide to the Office 
of Management and Budget a description of the extent of EPA's prior 
consultation with representatives of affected state, local and tribal 
governments, the nature of their concerns, copies of any written 
communications from the governments, and a statement supporting the 
need to issue the regulation. In addition, Executive Order 12875 
requires EPA to develop an effective process permitting elected 
officials and other representatives of state, local and tribal 
governments ``to provide meaningful and timely input in the development 
of regulatory proposals containing significant unfunded mandates.''
    Today's rule does not create a mandate on state, local or tribal 
governments. The rule does not impose any enforceable duties on these 
entities. Accordingly, the requirements of section 1(a) of Executive 
Order 12875 do not apply to this rule.
    On August 4, 1999, President Clinton issued a new executive order 
on federalism, Executive Order 13132, [64 FR 43255 (August 10, 1999),] 
which will take effect on November 2, 1999. In the interim, the current 
Executive Order 12612, [52 FR 41685 (October 30, 1987),] on federalism 
still applies. This rule will not have a substantial direct effect on 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 12612. 
The rule affects only one state, and does not alter the relationship or 
the distribution of power and responsibilities established in the Act.

C. Executive Order 13045

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

[[Page 59718]]

D. Executive Order 13084

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

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions. This proposed rule will not have a significant impact on 
a substantial number of small entities because SIP approvals under 
section 110 and subchapter I, part D of the 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, EPA certifies 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 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. Union 
Electric Co., versus U.S. EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 
7410(a)(2).

F. Unfunded Mandates

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

List of Subjects in 40 CFR Part 52

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

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

    DatedD: October 21, 1999.
William J. Muszynski,
Acting Regional Administrator, Region 2.
[FR Doc. 99-28725 Filed 11-2-99; 8:15 am]
BILLING CODE 6560-50-P