[Federal Register Volume 65, Number 26 (Tuesday, February 8, 2000)]
[Proposed Rules]
[Pages 6091-6102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-2827]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA-237-0221; FRL-6534-5]


Approval and Promulgation of State Implementation Plans; 
California--South Coast

AGENCY:  Environmental Protection Agency (EPA).

ACTION:  Proposed rule.

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SUMMARY:  EPA is proposing to approve a state implementation plan (SIP) 
revision by the State of California to provide for attainment of the 
ozone national ambient air quality standard (NAAQS) in the Los Angeles-
South Coast Air Basin Area (South Coast). EPA is proposing to approve 
the SIP revision under provisions of the Clean Air Act (CAA) regarding 
EPA action on SIP submittals, SIPs for national primary and secondary 
ambient air quality standards, and plan requirements for nonattainment 
areas.

DATES: Comments must be received on or before March 9, 2000.

ADDRESSES:  Written comments should be addressed to: Dave Jesson (AIR-
2), EPA Region IX, 75 Hawthorne Street, San Francisco, CA 94105-3901, 
or [email protected]. The rulemaking docket for this notice is 
available for public inspection during normal business hours at EPA's 
Region IX office. A reasonable fee may be charged for copying parts of 
the docket.
    Copies of the SIP materials are also available for inspection at 
the following locations:

California Air Resources Board, 2020 L Street, Sacramento, California
South Coast Air Quality Management District, 21865 E. Copley Drive, 
Diamond Bar, California

    The SIP materials are also electronically available at: http://www.aqmd.gov/aqmp/

FOR FURTHER INFORMATION CONTACT:  Dave Jesson at (415) 744-1288.

[[Page 6092]]


SUPPLEMENTARY INFORMATION:  This section provides background 
information on the South Coast ozone plan, applicable Clean Air Act 
requirements, and EPA's proposed action on the plan.

Table of Contents

I. Background
    A. What is the ozone problem in the South Coast?
    B. What Clean Air Act requirements apply to this plan?
    C. What action have we taken on previous South Coast ozone 
plans?
    1. Final approval of the 1994 ozone SIP
    2. Proposed partial approval and partial disapproval of the 1997 
ozone revision
    3. Final approval of a 1999 State update to the South Coast 
ozone SIP reflecting conclusion to the Public Consultative Process 
(PCP) and the implementation status of CARB's control measures.
    D. What are the changes in the new plan?
    1. Control measure revisions
    2. Technical revisions
    E. What further revisions are planned in the future?
II. Review of the Revised Ozone Plan
    A. Did the SCAQMD and CARB meet the CAA procedural requirements?
    B. Do the revised baseline and projected emissions inventories 
meet CAA requirements?
    C. Is the modeled attainment demonstration consistent with 
modeling guidelines?
D. Do the control measures meet CAA requirements?
1. What are the applicable CAA requirements?
2. How does the revised ozone plan address these requirements?
a. Control measures already adopted
b. Short- and intermediate-term control measure commitments
c. Long-term control measure commitments
    3. Does the revised ozone plan meet the CAA requirements for 
control measures?
a. Short- and intermediate-term control measure commitments
b. Long-term control measure commitments
E. Does the plan show reasonable further progress?
    1. What are the applicable CAA requirements?
    2. How does the revised ozone plan address these requirements?
    3. Does the revised ozone plan meet the CAA requirements?
F. Does the plan provide for attainment?
    1. What are the applicable CAA requirements?
    2. How does the revised ozone plan address these requirements?
    3. Does the revised ozone plan meet the CAA requirements?
G. Are the emissions budgets approvable?
    1. Motor vehicle emissions budgets
    2. General conformity emissions budgets
H. What are the implications of our proposed plan approval?

III. Administrative Requirements

A. Executive Order 12866
B. Executive Order 13045
C. Executive Order 13084
D. Executive Order 13132
E. Regulatory Flexibility Act
F. Unfunded Mandates
G. National Technology Transfer and Advancement Act

I. Background

A. What is the ozone problem in the South Coast?

    In 1999 the South Coast had the largest number of ozone violations 
in the country, and trailed only the Houston area in terms of the peak 
ozone concentration.\1\ The South Coast in 1999 recorded 43 days with 
1-hour levels at or above the 0.12 parts per million (ppm) NAAQS for 
ozone. In 1998, the South Coast had the worst ozone levels in the 
nation, experiencing 12 days with Stage I smog alerts, when 1-hour 
concentrations reach 0.20 ppm.\2\
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    \1.\ The 1999 air quality information is preliminary data from 
EPA's Aerometric Information Retrieval System (AIRS). For a 
description of the boundaries of the Los Angeles-South Coast Air 
Basin, see 40 CFR 81.305. The nonattainment area includes all of 
Orange County and the more populated portions of Los Angeles, San 
Bernardino, and Riverside Counties.
    \2.\ In 1998, the areas with the highest peak 1-hour ozone 
concentrations were: South Coast .244 ppm, Houston .230 ppm, 
Southeast Desert (the area immediately to the east of the South 
Coast) .202 ppm, San Joaquin Valley .194 ppm, Ventura County .174 
ppm, San Diego County .164 ppm. An area exceeds the 1-hour ozone 
standard each time an ambient air quality monitor records a 1-hour 
average concentration above 0.124 ppm. An area is violating the 
standard if, over a consecutive 3-year period, more than 3 
exceedances are expected to occur at any one monitor. Ground-level 
ozone is formed when emissions of nitrogen oxides (NOx) and volatile 
organic compounds (VOCs) react in the presence of sunlight. NOx and 
VOCs are referred to as precursors of ozone. California air quality 
agencies generally use the term ``reactive organic gas'' (ROG) 
instead of VOC.
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    Ozone causes serious health problems, particularly in children, by 
damaging lung tissue and sensitizing the lungs to other irritants. Even 
at very low levels, ozone can cause acute respiratory problems; 
aggravate asthma; cause temporary decreases in lung capacity of 15 to 
20 percent in healthy adults, cause inflammation of lung tissue; lead 
to hospital admissions and emergency room visits; and impair the body's 
immune system defenses, making people more susceptible to respiratory 
illnesses, including bronchitis and pneumonia.

B. What Clean Air Act Requirements Apply to this Plan?

    The CAA was substantially amended in 1990 to establish new planning 
requirements and attainment deadlines for the NAAQS. Under CAA section 
107(d)(1)(C) of the Act, areas designated nonattainment prior to 
enactment of the 1990 amendments, including the South Coast, were 
designated nonattainment by operation of law.
    Under CAA section 181(a), each ozone area designated nonattainment 
under section 107(d) was also classified by operation of law as either 
marginal, moderate, serious, severe, or extreme, based on air quality 
monitoring data. An ozone area with a design value at or above 0.280 
ppm was classified as extreme. The South Coast was the only area so 
classified. Section 181(a) sets attainment deadlines for each class of 
area. The attainment date for an extreme area is as expeditiously as 
practicable but no later than November 15, 2010 (20 years after 
enactment of the CAA Amendments).
    CAA section 172 contains general requirements applicable to SIPs 
for nonattainment areas. Section 182 sets out additional air quality 
planning requirements for ozone nonattainment areas. The most 
fundamental of these nonattainment area provisions applicable to the 
South Coast is the requirement that the State submit by November 15, 
1994, a SIP demonstrating how the area would attain the ozone NAAQS by 
the CAA deadline and how the area would achieve reductions of precursor 
emissions of 15 percent for the first 6 years and 9 percent for each 3-
year period until attainment (rate-of-progress or ROP). This 
demonstration must be based upon enforceable measures to expeditiously 
achieve emission reductions leading to emissions at or below the level 
predicted to result in attainment throughout the nonattainment area.
    We have issued a ``General Preamble'' describing our preliminary 
views on how we intend to act on SIPs submitted under Title I of the 
Act. See generally 57 FR 13498 (April 16, 1992) and 57 FR 18070 (April 
28, 1992). You should refer to the General Preamble for a more detailed 
discussion of our interpretations of Title I requirements. In this 
proposed rulemaking action, we apply these policies to the South Coast 
ozone SIP submittal, taking into consideration the specific factual 
issues presented.

C. What Action Have we Taken on Previous South Coast Ozone Plans?

1. Final approval of the 1994 Ozone SIP
    SCAQMD adopted an ozone plan on September 9, 1994, as part of the 
1994 South Coast Air Quality Management Plan (AQMP). The California Air 
Resources Board (CARB) supplemented the SCAQMD plan with State measures 
and submitted it as a proposed revision to the California SIP on 
November 15, 1994. On July 10, 1996, CARB submitted

[[Page 6093]]

an extensive revision to the South Coast control measure adoption 
schedule to adjust for slippage in the plan's initial implementation. 
On January 8, 1997 (62 FR 1150), we finalized approval of the South 
Coast ozone plan, including the ozone portions of the 1994 South Coast 
AQMP, as amended in 1996, and the State measures (``1994 ozone SIP''). 
\3\ The plan also contained ``Federal measures,'' which the State 
wished us to adopt and implement in order to reduce emissions from 
mobile sources. \4\
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    \3\ We approved some of the State and SCAQMD measures in the 
plan earlier. See particularly 60 FR 43379 (August 21, 1995).
    \4\ In response to this ``assignment,'' we established a Public 
Consultative Process to identify the best options for achieving 
further emission reductions from mobile source controls, at least to 
the extent they are needed for attainment of the ozone NAAQS in the 
South Coast. In connection with the establishment of this process, 
both EPA and CARB made commitments regarding appropriate future 
emission reductions. Please see EPA's final approval of the 1994 
ozone SIP for a discussion of the ``Federal measures'' and our 
rationale, at that time, for establishing the Public Consultative 
Process (62 FR 1152-5, 1184-6). See also section I.C.3 below.
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2. Proposed Partial Approval and Partial Disapproval of the 1997 Ozone 
Revision
    SCAQMD adopted a completely revised plan on November 15, 1996, and 
the California Air Resources Board (CARB) submitted the revision on 
February 5, 1997. The 1997 revision was not federally required for 
ozone, but was adopted by SCAQMD to address, in a comprehensive and 
consistent fashion, federal and state requirements for particulate 
matter, carbon monoxide, and nitrogen dioxide (NO2), and state 
requirements for an ozone plan update. \5\
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    \5\ We approved the CO and NO2 portions of the submittal on 
April 21, 1998 (63 FR 19661) and July 24, 1998 (63 FR 39747), 
respectively.
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    On January 12, 1999 (64 FR 1770), we proposed to find that the 
revised plan met the CAA section 110(a)(1) procedural requirements for 
adoption following public notice and hearings. We also proposed to 
approve the baseline and projected emissions inventory updates under 
CAA sections 172(c)(3) and 182(a)(1).
    Because CAA section 110(l) does not allow us to approve a SIP 
revision that interferes with any applicable CAA requirement concerning 
attainment and reasonable further progress or any other requirement of 
the Act, we proposed to disapprove the 1997 ozone plan as not meeting: 
(1) the control measure requirements of CAA sections 172(c)(6), and 
182(e)(5); (2) the attainment demonstration requirements of CAA section 
182(c)(2)(A); and (3) the quantitative milestones and reasonable 
further progress requirements of CAA section 182(c)(2)(A).
    Our proposed disapproval of these provisions was based on our 
findings that:
    (1) the control measures in the 1997 ozone plan were an 
impermissible relaxation of the 1994 ozone SIP, inasmuch as the plan 
relaxed, abandoned, or postponed approximately 30 short-term SCAQMD 
measures, and did not show that this revision meets the expeditious 
attainment test;
    (2) the 1997 ozone plan was inconsistent with the intent of CAA 
section 182(e)(5), in that it increased, rather than reduced, the 
proportion of needed SCAQMD reductions that are assigned to conceptual, 
new-technology measures;
    (3) the plan relied on unlawful assignments to the Federal 
Government to achieve a portion of the reductions needed for 
attainment; and
    (4) the plan relied on commitments to adopt by the end of 1998 23 
measures, of which SCAQMD had adopted less than 10, and we may not 
approve a plan that is not being implemented.
    Since our proposed action in this document is an action on both the 
1997 ozone plan and the 1999 Amendment to it, we are withdrawing the 
January 12, 1999 proposed partial approval and partial disapproval of 
the 1997 ozone plan. Therefore, if you submitted comments on our 
January 12, 1999 proposal and believe that those comments are relevant 
to our proposed action on the 1999 ozone plan, you will need to 
resubmit your comments within the public comment period for today's 
proposed action.
3. Final Approval of a 1999 State Update to the South Coast Ozone SIP
    On July 23, 1999 (64 FR 39923), we approved an update to the South 
Coast 1994 ozone SIP, reporting on implementation of CARB's control 
measures in the 1994 SIP and the contribution from Federal mobile 
source controls undertaken as part of the Public Consultative Process. 
We also updated our own commitment and approved a new CARB commitment 
to adopt by December 31, 2001, control measures needed to achieve any 
additional reductions which are determined to be appropriate for CARB. 
Please consult this final approval document and our proposed approval 
(64 FR 30276, June 7, 1999) for more details on the update, the 
``Federal measures,'' the Public Consultative Process on national 
mobile source measures, and our associated consent decree in Coalition 
for Clean Air, et al. vs. SCAQMD, CARB, and USEPA, No. CV 97-6916 HLH 
(C.D. CA.).

D. What are the Changes in the New Plan?

    SCAQMD adopted an amendment to the 1997 plan on December 10, 1999, 
to update the District's control measures and to address the 
deficiencies that formed the basis for our proposed disapproval. The 
1999 amendment adds new SCAQMD control measures, revises existing 
SCAQMD measures, and amends the reasonable further progress, attainment 
demonstration, and stationary source emissions budget portions of the 
1997 plan. \6\ The 1999 amendment does not change the emission 
inventories, modeling, non-SCAQMD control measures, and the non-ozone 
portions of the 1997 plan. In this proposed rulemaking, we refer to the 
1997 plan as amended in 1999 as ``the revised ozone plan.'' If we 
approve this revised ozone plan, it will replace the 1994 ozone SIP 
except for that portion of the SIP that consists of State control 
measures and EPA's commitment.
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    \6\ The ``attainment demonstration'' includes both the control 
measures and air quality modeling showing that the control measures 
are sufficient to reduce emissions to levels where violations of the 
NAAQS would not occur. The 1999 amendment does not change the 
modeling in the 1997 plan, which we continue to find approvable, but 
does add new control measures, thus allowing us to propose in this 
document approval of the plan with respect to both the control 
measure and the attainment demonstration requirements of the Act.
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1. Control Measure Revisions
    The 1999 amendment adds commitments to adopt 8 short-term 
stationary source control measures, 4 of which are new control measures 
and 4 of which implement portions of the 1997 plan's long-term control 
measures. The revised ozone plan now includes 26 short- and 
intermediate-term control measures and 4 long-term measures. Along with 
17 regulations adopted after the 1994 ozone SIP was submitted, these 
control measure commitments completely replace all SCAQMD control 
measure commitments in the SIP and greatly reduce the amount of the 
attainment demonstration dependent upon long-term conceptual measures. 
SCAQMD long-term VOC control measures in the 1994 ozone SIP were 
assigned credit for a reduction of 180 tpd; in the 1999 amendment, the 
long-term reductions amount to only 28 tpd. \7\ Neither the 1997 plan 
nor the 1999 amendment changes the State control measures in the 1994 
ozone SIP.
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    \7\ Unless otherwise indicated, when we speak of emission 
reductions in this document we refer to reductions in the attainment 
year (2010), net of growth.

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[[Page 6094]]

2. Technical Revisions
    Although SCAQMD did not revise the baseline emissions inventory 
included in the 1997 plan, the 1999 amendment revises the District's 
control measures portion of the plan, adding new measures and 
accelerating adoption and implementation dates of measures in the 1997 
plan. Since these changes amend the plan's scheduled emission 
reductions, the 1999 amendment revises the 1997 plan's stationary 
source emissions budgets for VOC and NOX. The 1999 amendment 
also presents new rate-of-progress calculations.

E. What Further Revisions Are Planned in the Future?

    While the revised ozone plan represents more current and accurate 
information than was used in the 1994 ozone SIP, SCAQMD and CARB 
consider the new plan to be an interim update. A comprehensive ozone 
plan revision is scheduled for adoption and submittal as a SIP revision 
in 2001. This future revision will use new emission inventories and 
modeling, and it will include a revised control strategy if needed to 
provide for expeditious attainment.

II. Review of the Revised Ozone Plan

A. Did SCAQMD and CARB Meet the CAA Procedural Requirements?

    SCAQMD has satisfied applicable requirements for reasonable public 
notice and hearing prior to adoption of the 1997 plan and the 1999 
amendment. SCAQMD conducted public workshops and public hearings prior 
to the adoption of the 1997 plan on November 15, 1996 (Governing Board 
Resolution No. 96-23), and before adoption of the 1999 amendment on 
December 10, 1999 (Governing Board Resolution 99-35). On January 23, 
1997, CARB adopted the 1997 plan (Resolution No. 97-1) following public 
notice, and CARB submitted the plan to us on February 5, 1997. After 
public notice, CARB adopted the 1999 amendment at a public hearing on 
January 27, 2000, and the State indicates its intent to submit the 
amendment promptly as a SIP revision. Assuming that the State makes 
this submittal, we believe that the submittal will have met the 
procedural requirements of CAA sections 110(a) and (l).

B. Do the Revised Baseline and Projected Emissions Inventories Meet CAA 
Requirements?

    As discussed in our proposed approval of the emissions inventory in 
the 1997 plan (64 FR 1774-7), the revised and updated emissions 
inventory conforms to our guidance documents. Please see that notice 
for further details regarding the inventories, the socio-economic 
forecasts underlying the projected inventories, and our emissions 
inventory guidance documents. The 1999 amendment makes no changes to 
these inventory summaries, which are included in Chapter 3 and Appendix 
III of the 1997 plan.
    CARB has prepared draft revisions to the motor vehicle emissions 
factors. Once the new factors are adopted by the State, the responsible 
agencies will begin the process of revising the plan to reflect the new 
emissions data. The State has also recently prepared a new offroad 
mobile source emissions model, and local agencies are revising the 
regional growth and control effectiveness data. These updates and 
enhancements will improve emissions information for the comprehensive 
2001 plan revision.
    Because the methodologies used to prepare the inventories in the 
revised ozone plan are acceptable, we propose to approve the plan 
revision with respect to the emissions inventory requirements of CAA 
sections 172(c)(3) and 182(a)(1).

C. Is the Modeled Attainment Demonstration Consistent With Modeling 
Guidelines?

    The attainment demonstration in the revised ozone plan employs the 
Urban Airshed Model (UAM) with the Carbon Bond IV mechanism. The UAM 
analysis uses 4 episodes in 1987, including a September 7-9 episode 
with a peak ozone concentration of 0.33 ppm.
    The 1994 ozone SIP analysis used a more severe episode, June 5-7, 
1985, which had a peak concentration of 0.36 ppm. For the revised ozone 
plan, SCAQMD modeled the 1985 episode but did not show attainment with 
all control measures, and the episode was dropped for purposes of the 
attainment demonstration. SCAQMD based its decision not to use the 1985 
episode on the age of the episode and the District's contention that 
the episode reflects meteorological conditions that rarely occur in the 
area. This is consistent with our current modeling guidance.\8\
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    \8\ Guidance on Use of Modeled Results to Demonstrate Attainment 
of the Ozone NAAQS, EPA-454/B-95-007 (1996).
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    On November 18, 1998, the SCAQMD submitted a weight of evidence 
analysis for the June 1985 episode.\9\ A copy of this analysis has been 
placed in the docket for this rulemaking. The analysis addresses our 
current modeling guidance and argues for elimination of the 1985 
episode under a weight of evidence approach. Attachment B to the SCAQMD 
correspondence addresses the acceptability of the remaining 4 episodes 
as a basis for an attainment demonstration. SCAQMD provides evidence 
that the episodes are representative of the types of meteorological 
episodes expected in the South Coast when high ozone concentrations 
occur. The evidence examines the episodes based on the deviation index 
(Horie CART analysis) and the Chu-Cox methodology for assessing episode 
frequency.
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    \9\ Letter from Barry R. Wallerstein, SCAQMD Executive Officer, 
to Felicia Marcus, Regional Administrator, EPA Region IX, Attachment 
A.
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    The model performance for the 1987 episode shows a high systematic 
bias, e.g., ozone underprediction of 44 percent for June 24, 40 percent 
for June 25, 47 percent for September 8, and 38 percent for September 
9. SCAQMD showed that this underprediction is significantly reduced if 
motor vehicle VOC emissions are doubled, in which case underprediction 
becomes 24 percent for June 24, 19 percent for June 25, 2 percent for 
September 8, and 3 percent for September 9. CARB's draft revisions to 
the motor vehicle factors support this inventory adjustment. Because 
the model performance falls within an acceptable range of accuracy 
after these adjustments to the inventory and because the modeling 
otherwise conforms to our guidance, we propose to approve the modeling 
analysis.
    More accurate and comprehensive UAM analyses will soon be possible, 
based on the Southern California Ozone Study (SCOS), for which an 
extensive field study was completed in the summer of 1997 and 
continued, in limited form, through the summer of 1998. SCAQMD and CARB 
intend to complete a new modeling analysis using updated emission 
inventories and SCOS modeling, as part of a comprehensive ozone SIP 
revision to be submitted in 2001. We strongly endorse this effort to 
update and enhance the technical foundation of the attainment 
demonstration. This revised SIP will be important to ensure that 
emission reduction target levels and control measures are sufficient to 
provide for attainment within the South Coast, and to establish a 
technically improved basis for making adjustments to the control 
strategy to achieve efficient and expeditious attainment.

[[Page 6095]]

D. Do the Control Measures Meet CAA Requirements?

1. What Are the Applicable CAA Requirements?
    The CAA requires that SIPs include enforceable control measures 
sufficient to meet rate-of-progress milestones and provide the 
reductions needed for attainment by the applicable CAA deadline. Where 
it is infeasible for a state to accomplish the necessary regulatory 
adoption in the short term, we have recognized that this requirement 
can be satisfied, to some extent, by enforceable commitments to adopt 
regulations in the future, since these commitments can be enforced in 
court by EPA or citizens.
    In view of the magnitude of reductions required in the South Coast 
and the fact that SCAQMD and CARB have already adopted in regulatory 
form more stringent measures than are included in most other SIPs, we 
approved the 1994 ozone SIP despite its heavy reliance on commitments 
to adopt regulations. See 62 FR 1155-7, 1177-82. Over the past 5 years 
following adoption of the 1994 ozone SIP, SCAQMD rule adoptions and 
attainment demonstration revisions have reduced the dependence of the 
plan on SCAQMD commitments, which now amount to 84 tpd of VOC and 
NOX, compared to well over 400 tpd in the 1994 ozone SIP.
2. How Does the Revised Ozone Plan Address These Requirements?
a. Control Measures Already Adopted
    Following submittal of the 1994 ozone SIP, SCAQMD adopted rules 
projected to reduce VOC emissions by over 150 tpd by 2010. These rules 
fulfill many of the control measure commitments in both the 1994 and 
1997 plans. The table below entitled ``Table 1--SCAQMD Rules Adopted 
between November 1994 and September 1999'' lists the rules with 
projected emission reduction levels. If these levels are not actually 
achieved by the rules, the SCAQMD enforceably commits to revise the 
rules or adopt new rules to provide for compensating reductions.\10\
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    \10\ ``The District is committed to adopt Table 
2-1 measures unless these measures or a portion thereof are found 
infeasible and other substitute measures that can achieve equivalent 
reductions in the same adoption/implementation timeframes are 
adopted. Findings of infeasibility will be made at a regularly 
scheduled meeting of the District Board with proper public 
notification. For purposes of SIP commitment, infeasibility means 
the proposed control technology is not reasonably likely to be 
available by the implementation date in question, or achievement of 
the emission reductions by that date is not cost effective. The 
District acknowledges that this commitment is enforceable under 
Section 304(f) of the federal Clean Air Act.'' 1999 Amendment, page 
2-18. Table 2-1, which is labeled ``Revised AQMP Short- and 
Intermediate-Term Control Measures, Implementing Agency, Adoption 
Date and Implementation Period,'' contains the complete list of 
SCAQMD commitments for short- and intermediate-term control 
measures, as also shown in Table 2 of this document.

                                         Table 1.--SCAQMD Rules Adopted Between November 1994 and September 1999
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                                                                                Adoption
         Control measure             Rule No.               Title                 date            Implementation dates        2010 reductions in tpd VOC
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CTS-C............................        1171    Solvent Cleaning Operations         1996  1999.............................  26.8
CTS-02H..........................        1107    Metal Parts and Products...         1998  1999.............................  8.8
CTS-02M..........................        1145    Plastic, Rubber, Glass              1997  1998.............................  1.2
                                                  Coatings.
CTS-02N..........................        1122    Solvent Degreasers.........         1997  1999.............................  48.1
CTS-07...........................        1113    Architectural Coatings--            1996  1998-2008........................  14.8
                                                  Phase I.
CTS-07...........................        1113    Architectural Coatings--            1999  2002-06..........................  16.5
                                                  Phase II.
CMB-02B..........................        1146.2  Small Boilers and Process           1998  2000-06..........................  4.2 NOX
                                                  Heaters.
FUG-01...........................         462    Organic Liquid Transfer....         1995  1999.............................  0.8*
FUG-02...........................        1176    Sumps and Wastewater                1996  1997.............................  5.0*
                                                  Separators.
PRC-03...........................        1138    Restaurant Operations......         1997  1999.............................  0.2
RFL-02...........................         461    Gasoline Dispensing                 1995  1998.............................  3.7*
                                                  Facilities.
                                         1104    Wood Flat Stock Coating             1998  2000.............................  negligible
                                                  Operations.
                                         1136    Wood Products Coatings.....         1996  2005.............................  7.9*
                                         1124    Aerospace Assembly and              1996  2002.............................  0.2*
                                                  Component Manufacturing
                                                  Operations.
                                         1130.1  Screening Printing                  1996  2003.............................  0.1*
                                                  Operations.
                                         1168    Adhesive Applications......         1998  2003.............................  1.3*
CTS-07...........................        1113    Architectural Coatings.....         1999  2002-6...........................  18.5*
    Total Reductions of VOC......  ............  ...........................  ...........  .................................  153.9
    Total Reductions of NOX......  ............  ...........................  ...........  .................................  4.2
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*Reductions incorporated in baseline inventory.

    In addition to these rules, SCAQMD also adopted 3 rule revisions in 
October and November 1999, implementing plan measures and contributing 
additional emission reductions as shown: CTS-02C (Phase 2)--Further 
Emission Reductions from Solvent Cleaning Operations (Rule 1171)--11 
tpd VOC (with an additional 16 tpd subject to technology assessment in 
the future); CTS-08--Further Emission Reductions from Industrial 
Coating and Solvent Operations (Rule 1130)--2 tpd VOC; and CMB-06--
Emission Standards for New Commercial and Residential Water Heaters 
(Rule 1121)--7.6 tpd NOX.
b. Short and Intermediate-term Control Measure Commitments
    As discussed above, the revised ozone plan now includes commitments 
to adopt 26 short- and intermediate-term control measures. The plan 
describes each control measure in detail, identifying 1993 baseline 
emissions from the source category, projected 2006 and 2010 emissions, 
2006 and 2010 emission reductions, control cost effectiveness, methods 
and technologies of control, rule compliance, implementation schedule, 
implementing agency, and control measure history, including an 
explanation of changes in the measures in successive plan updates. The 
table labeled ``Table 2--Short- and Intermediate-Term Control Measure 
Commitments'' indicates for each control measure the dates of rule 
adoption and implementation and the

[[Page 6096]]

emission reductions projected to occur by 2006 and 2010.

                        Table 2--Short-and Intermediate-Term Control Measure Commitments (in tons per summer day of VOC or (NOX))
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                                                                                                                                    Emission reductions
      Control measure No.          Control measure title         Implementing agency         Adoption      Implementation date   -----------------------
                                                                                               date                                  2006        2010
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CTS-02(P2).....................  Further Emission          SCAQMD........................         1999  2002....................       10.6        11.0
                                  Reductions from Solvent
                                  Cleaning Operations--
                                  Rule 1171*.
CTS-02E........................  Emission Reductions from  SCAQMD/CAR B..................         2000  2007-2008...............        0.0         1.3
                                  Adhesives--Rule 1168.
CTS-02O........................  Emission Reductions from  SCAQMD........................         2000  2002....................        1.1         1.0
                                  Solvent Usage--Rule
                                  442*.
CTS-07(P 3)....................  Further Emission          SCAQMD........................         2003  2006-2008...............        3.1         9.8
                                  Reductions from
                                  Architectural Coatings
                                  and Cleanup Solvents--
                                  Rule 1113.
CTS-08.........................  Further Emission          SCAQMD........................         2002  2004-2008...............        2.4         5.0
                                  Reductions from                                                 2003  2005-2008...............
                                  Industrial Coating and
                                  Solvent Operations
                                  (Phases 1 and 2)*.
CTS-09.........................  Further Emission          SCAQMD........................         2000  2003-2004...............  ..........        4.0
                                  Reductions from Large                                           2002  2005-2006...............                    3.0
                                  Solvent and Coating
                                  Sources (Phases 1 and
                                  2).
FUG-03.........................  Further Emission          SCAQMD........................          TBD  TBD.....................      TBD         TBD
                                  Reductions from
                                  Floating Roof Tanks--
                                  Rule 463.
FUG-04.........................  Further Emission          SCAQMD........................                           (4) See FUG-05
                                  Reductions from
                                  Fugitive Sources--Rule
                                  1121.
FUG-05.........................  Further Emission          SCAQMD........................         2001  2003-2006...............  ..........        1.0
                                  Reductions from Large                                           2002  2004-2007...............                    1.0
                                  Fugitive VOC Sources                                            2003  2005-2008...............                    1.0
                                  (Phases 1, 2, and 3)*.
FUG-06.........................  Control of Methanol       SCAQMD........................         2000  2001-2003...............        0.8         0.8
                                  Emissions from Refinery
                                  Hydrogen Plan Vents.
RFL-02(P2).....................  Further Emission          SCAQMD/CAR B2000..............         2000  2001-2002...............        2.0         2.0
                                  Reductions from
                                  Gasoline Dispensing
                                  Facilities--Rule 461.
CMB-06.........................  Emission Standards for    SCAQMD........................         1999  2002-2005...............       (3.6)       (7.6)
                                  New Commercial and
                                  Residential Water
                                  Heaters--Rule 1121.
PRC-03(P2).....................  Further Emission          SCAQMD........................         2000  2001 (new) 2003 (retr           0.9         0.9
                                  Reductions from                                                        ofit).
                                  Restaurant Operations.
PRC-06.........................  Further Emission          SCAQMD........................         2001  2004-2007...............        1.9         3.0
                                  Reductions from
                                  Industrial Processes*.
MSC-01.........................  Promotion of Lighter      SCAQMD/Loc al Govt............          TBD  TBD.....................    Air quality benefit
                                  Color Roofing and Road                                                                           from lowering ambient
                                  Materials and Tree                                                                                    temperature
                                  Planting Programs.
MSC-03.........................  Promotion of Catalyst-    SCAQMD........................          TBD  TBD.....................   Conversion of ambient
                                  Surface Coating                                                                                    ozone and CO into
                                  Technology Programs.                                                                               Oxygen and CO\2\
WST-01.........................  Emission Reductions from  SCAQMD........................         2002  2004....................        3.3         3.3
                                  Livestock Waste.
WST-02.........................  Emission Reductions from  SCAQMD........................         2001  2004-2006...............      TBD         TBD
                                  Composting.
WST-03.........................  Emission Reductions from  SCAQMD/Local Fire Agencies....  ...........  2002....................    Air quality benefit
                                  Waste Burning                                                                                       but no emission
                                  (implemented through                                                                                   reduction
                                  MOUs).
WST-04.........................  Disposal of Materials     SCAQMD........................         2000  2002....................        0.7         0.8
                                  Containing Volatile
                                  Organic Compounds.
FSS-04.........................  Emission Charges of       SCAQMD........................          TBD  TBD.....................      TBD         TBD
                                  $5,000 per Ton of VOC
                                  for Stationary Sources
                                  Emitting over 10 Tons
                                  per Year.
FLX-01.........................  Intercredit Trading       SCAQMD........................          TBD  TBD.....................   Promotion of advanced
                                  Program.                                                                                           pollution control
                                                                                                                                        technology
      Total Reductions of VOC...................................................................................................       26.8        48.1
      Total Reductions of NOX...................................................................................................        3.6         7.6
--------------------------------------------------------------------------------------------------------------------------------------------------------
*SCAQMD commits to achieve the reductions shown but identifies a potential for greater emission reductions from these control measures (Table 2-4, 1999
  Amendment). Any reductions achieved from these measures beyond the amount of the commitment will reduce the long-term measure commitment, shown in
  Table 4, below.


[[Page 6097]]

    SCAQMD commits to meet the adoption dates, implementation dates, 
and emission reduction targets, unless a measure, in whole or in part, 
is determined to be infeasible. Should that be the case, SCAQMD commits 
to achieve equivalent reductions on the same schedule through 
substitute controls.
    Recognizing that such control strategy adjustments may be necessary 
and that development and implementation of regulations may achieve 
actual emission reductions that do not match those projected, SCAQMD 
included in the revised plan an additional enforceable commitment to 
achieve emission reduction targets in future years (1999 Amendment, pp. 
2-18 and 2-19). This complementary commitment is shown below in the 
table titled ``Table 3--Emission Reduction Commitments.'' In order to 
ensure expeditious progress, SCAQMD commits to achieve these emission 
reductions even if control measures are determined to be infeasible.

                                    Table 3.--Emission Reduction Commitments
                                 [In tons per day for 2010 Planning Inventory.]
----------------------------------------------------------------------------------------------------------------
                                                      Based on adoption date       Based on implementation date*
                      Year                       ---------------------------------------------------------------
                                                        VOC             NOx             VOC             NOx
----------------------------------------------------------------------------------------------------------------
1999............................................            11.0             7.6  ..............  ..............
2000............................................            10.0  ..............  ..............  ..............
2001............................................             4.0  ..............  ..............  ..............
2002............................................             9.3  ..............            14.8  ..............
2003............................................            13.8  ..............             0.9  ..............
2004............................................  ..............  ..............             7.3  ..............
2005............................................  ..............  ..............  ..............  ..............
2006............................................  ..............  ..............             4.0  ..............
2007............................................  ..............  ..............             4.0  ..............
2008............................................  ..............  ..............            17.1  ..............
      Total.....................................            48.1             7.6            48.1            7.6
----------------------------------------------------------------------------------------------------------------
*Represents the final, full implementation date; typically, a rule contains multiple implementation dates.

    The 1999 amendment provides the following clarification on the 
``currency'' that will be used in determining emission reduction 
progress under the revised ozone plan: ``For purpose of tracking the 
progress in emission reductions, the baseline emissions for the year 
2010 planning inventory (summer inventory for ozone) in the 1997 AQMP 
will be used, regardless of any subsequent new inventory information 
that reflects more recent knowledge. This is to assure that the same 
``currency'' is used in measuring progress as was used in designing the 
AQMP. This will provide a fair and equitable measurement of progress. 
Therefore, whether progress is measured by emission reductions or by 
remaining emissions for a source category provides no material 
difference.'' (Page 2-16) We propose to accept the use of this approach 
for determinations of compliance with emission reduction commitments 
associated with the control measures in the revised ozone plan.
    The new or amended control measure commitments in the revised ozone 
plan replace 31 control measure commitments contained in the 1994 ozone 
SIP. These measures are listed in the table below labeled ``Table 4--
Measures Deleted from the 1994 Ozone SIP.''

           Table 4.--Measures Deleted From the 1994 Ozone SIP
------------------------------------------------------------------------
     Control measure No.                 Control measure title
------------------------------------------------------------------------
CTS-A........................  Electronic Components
CTS-C........................  Solvent Cleaning
CTS-D........................  Marine/Pleasure Craft Coatings
CTS-E........................  Adhesives
CTS-F........................  Motor Vehicle Non-Assembly Coating
CTS-G........................  Paper/Fabric/Film Coatings
CTS-H........................  Metal Parts/Product Coatings
CTS-I........................  Graphic Arts/Screen Printing
CTS-J........................  Wood Products Coatings,
CTS-K........................  Aerospace/Component Coatings
CTS-L........................  Automotive Assembly Operations
CTS-07.......................  Architectural Coatings
FUG-01.......................  Organic Liquid Transfer
FUG-02.......................  Active Draining of Liquid Products
FUG-04.......................  Fugitive Emissions of VOCs
RFL-02.......................  Gasoline Dispensing Facilities
RFL-03.......................  Pleasure-Boat Fueling Operations
CMB-02F......................  Internal Combustion Engines
CMB-05.......................  Clean Stationary Fuels
PRC-02.......................  Bakeries
PRC-03.......................  Restaurant Operations
WST-01.......................  Livestock Waste
WST-03.......................  Waste Burning
WST-04.......................  Disposal of Materials Containing VOCs

[[Page 6098]]

 
ISR-01.......................  Special Events Centers
ISR-02.......................  Shopping Centers
ISR-03.......................  Registration and Commercial Vehicles
ISR-04.......................  Airport Ground Access
ISR-05.......................  Trip Reduction for Schools
ADV-CTS-02...................  Advanced Technology--Coatings
------------------------------------------------------------------------

Appendix A of the 1999 Amendment presents SCAQMD's reasons for 
replacing these control measures.
c. Long-Term Control Measure Commitments
    Section 182(e)(5) of the Act allows an extreme ozone nonattainment 
area additional time, if necessary, beyond the November 15, 1994 ozone 
SIP submittal deadline, to develop, adopt, and submit some of the 
specific regulations and programs needed to achieve attainment. The CAA 
allows us to approve plans based on long-term measures if the State 
demonstrates that the measures are not needed to meet ROP requirements 
during the first 10 years and if the State has submitted enforceable 
commitments to adopt contingency measures to be implemented if the 
long-term measures do not achieve planned reductions.
    None of the long-term measures in the revised ozone plan are 
scheduled for implementation during the period 1990-2000, and the plan 
meets CAA requirements for ROP without reliance on the long-term 
measures, which are needed only for attainment. The revised ozone plan 
identifies additional measures beyond those credited with reductions 
toward ROP or attainment, to be scheduled for adoption and 
implementation in the future. The plan also provides a range of 
additional emission reductions from several of the short- and 
intermediate-term measures that may contribute additional emission 
reductions creditable against all or part of the long-term measure 
commitments. In addition, the 1999 Amendment includes SCAQMD 
commitments to submit semi-annual progress reports on meeting the 
District's commitments, and to hold annual workshops on identifying new 
controls to minimize, and potentially eliminate, reliance on long-term 
measures.
    Because of SCAQMD's success in accelerating long-term control 
measures, there remain in the revised ozone plan only 28 tpd of VOC 
assigned to this special category of measures, which is authorized for 
extreme ozone areas under CAA section 182(e)(5). The table entitled 
``Table 5--Long-Term Control Measures'' displays SCAQMD's long-term 
measure commitments in the revised ozone plan.

                                      Table 5--Long--Term Control Measures
                                   [2010 VOC reduction in tons per summer day]
----------------------------------------------------------------------------------------------------------------
                                                                                                       Emission
       Control measure                 Title               Adoption date       Implementation date    reductions
----------------------------------------------------------------------------------------------------------------
ADV-CLNG....................  Solvent Cleaning and    2003-4................  2005.................           16
                               Degreasing Operations.
ADV-CTS.....................  Miscellaneous           2003-5................  2006-10..............            6
                               Industrial Coating
                               and Solvent
                               Operations.
ADV-FUG.....................  Fugitive Emissions....  2003-5................  2006-10..............            5
ADV-PRC.....................  Industrial Process      2003-5................  2006-10..............            1
                               Operations.
-----------------------------
----------------------------------------------------------------------------------------------------------------

3. Does the revised ozone plan meet the CAA requirements for control 
measures?
a. Short- and intermediate-term control measure commitments
    In our proposed action on the 1997 ozone plan, we proposed to 
disapprove the near-term control measures because: (1) SCAQMD had 
already failed to adopt many of the measures by the scheduled date; (2) 
the control measures represented an impermissible relaxation of the 
1994 ozone SIP; and (3) the SIP included unlawful assignments of 
control measures to the Federal government (64 FR 1775-7). SCAQMD has 
remedied the first deficiency and is currently on schedule with regard 
to the commitments in the revised ozone plan. The recently adopted 
rules and the short-and intermediate-term control measure commitments, 
as revised in the 1999 Amendment, cure the second deficiency by 
accelerating emission reduction progress beyond the level set out in 
the 1997 plan and thereby eliminating our concern regarding backsliding 
from the 1994 ozone SIP. The third deficiency was remedied by our 
recent rulemaking concluding the Public Consultative Process (64 FR 
39923, July 23, 1999).
    We now propose to approve, under CAA section 110(k)(3), the 
enforceable SCAQMD commitments to adopt and implement the short-and 
intermediate-term control measures, and to implement those measures 
that have already been adopted in regulatory form, by the dates 
specified to achieve the emission reductions shown above in Tables 1, 
2, and 3. We are proposing to assign credit to these measures for 
purposes of the attainment demonstration in the revised ozone plan. We 
propose to approve SCAQMD's commitment to achieve the overall emission 
reduction schedule in Table 3, which provides the basis for allowing 
alternative or revised measures to substitute for those identified in 
Table 2, so long as SCAQMD continues to meet the Table 3 schedule for 
adopting and implementing regulations to achieve specific levels of 
emissions reduction. Finally, we propose to approve the deletion of the 
31 control measures from the 1994 ozone SIP, listed above in Table 4.
b. Long-Term Measure Commitments
    In our proposed action on the 1997 ozone plan, we proposed to 
disapprove the long-term control measures because the 1997 plan 
increased the proportion of reductions assigned to the long-term 
category, and we believed that CAA section 182(e)(5) did not authorize 
us to approve SIP revisions that postpone SIP

[[Page 6099]]

commitments in the near-term and shift the balance of the SIP toward 
more distant and less specific commitments (64 FR 1777). The revised 
ozone plan remedies this deficiency by dramatically reducing the 
emission reductions assigned to this category.
    We therefore propose to approve, as meeting CAA section 182(e)(5), 
the SCAQMD commitments to adopt and implement the long-term control 
measures in Table 4, and we propose to assign the emission reductions 
from these measures to the attainment demonstration in the revised 
ozone plan. As mentioned above, however, SCAQMD may satisfy all or a 
part of its long-term control measure obligations by adopting near-and 
intermediate-term control measures that achieve more emission 
reductions than assigned to these measures in Table 2.

E. Does the plan show reasonable further progress?

1. What are the applicable CAA requirements?
    CAA sections 182(c)(2) and (e) require that extreme area ozone SIPs 
include quantitative milestones that are to be achieved every 3 years 
until attainment, and that demonstrate reasonable further progress 
(RFP) toward attainment by the applicable date. CAA section 171(a) of 
the Act defines RFP as ``such annual incremental reductions in 
emissions of the relevant air pollutant as are required by this part or 
may reasonably be required by the Administrator for the purpose of 
ensuring attainment of the applicable national ambient air quality 
standard by the applicable date.''
    For ozone areas classified as serious or above, section 182(c)(2) 
requires that the SIP must provide for reductions in ozone-season, 
weekday VOC emissions of at least 3 percent per year net of growth 
averaged over each consecutive 3-year period beginning in 1996 until 
the attainment date. This is in addition to the 15 percent reduction 
over the first 6-year period required by CAA section 182(b)(1) for 
areas classified as moderate and above.
2. How Does the Revised Ozone Plan Address These Requirements?
    The revised ozone plan shows reductions consistent with the 3 
percent per year rate of progress requirement for 1997-1999 and 2000-
2002 through use of VOC emission reductions from currently adopted 
regulations. For 2003-2005, 2006-2008, and 2009-2010 milestone periods, 
however, the plan does not have enough creditable VOC reductions to 
meet the milestones, and must substitute NOx reductions, as allowed by 
CAA section 182(c)(2)(C). As shown below in the table entitled ``Table 
6--Rate-of-Progress Plan,'' NOx substitution accounts for 3.6 percent 
of the required 9 percent reduction between 2003-2005; 8.5 percent 
between 2006-2008; and 0.5 percent between 2009-2010.

                                                             Table 6.--Rate-of-Progress Plan
                                                       [Emissions Rounded to Nearest Ton per Day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                              1999                  2002                   2005                    2008                    2010
                                     -------------------------------------------------------------------------------------------------------------------
                                         VOC        NOx        VOC        NOx         VOC         NOx         VOC         NOx         VOC         NOx
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted 1990 Base Year.............       1527       1472       1515       1472      1510        1472        1509        1472        1509        1472
Required Percent Reduction..........         24          0          9          0         5.4         3.6         0.5         8.5         0.5         8.5
Required Reductions.................        367          0        136          0        82          53           8         125           8          81
Emissions Target....................       1161       1472       1012       1472       926        1419         917        1294         909        1213
Emissions (Adopted Rules)...........        982        956        946        859       918         797         913         764         909         751
Emissions (Counting Reductions from         939        935        826        815       708         695         587         609         414         530
 Commitments).......................
--------------------------------------------------------------------------------------------------------------------------------------------------------

The 1999 Amendment significantly increases VOC reductions in all 
interim milestone years, compared to the 1997 ozone plan.
3. Does the Revised Ozone Plan Meet the CAA Requirements?
    As shown by Table 6, the revised ozone plan meets the ROP 
requirements based entirely on fully adopted regulations. Taking into 
account reductions from SCAQMD and CARB enforceable commitments, 
implementation of the plan should result in reductions in excess of the 
minimum ROP requirement (compare the last line in Table 6 to the 
emissions target for each milestone year). This is appropriate, given 
the enormous reductions required for this area to reach attainment.
    Compliance with the milestone and RFP provisions of the Act 
requires that all of the creditable emission reductions be approved as 
enforceable parts of the SIP (General Preamble, April 16, 1992, at 57 
FR 13517). Because we proposed to disapprove the control measure 
provisions in the 1997 ozone plan, we also proposed to disapprove the 
plan with respect to the CAA section 182(c)(2) quantitative milestone 
and reasonable further progress requirements. As discussed above, 
however, we now propose to approve the control measures in the revised 
ozone plan, and therefore propose to approve the new plan as meeting 
the quantitative milestone and RFP requirements of CAA section 
182(c)(2).

[[Page 6100]]

F. Does the Plan Provide for Attainment?

1. What are the Applicable CAA Requirements?
    CAA sections 182(c)(2)(A) and (e) require that ozone SIPs for areas 
classified as extreme demonstrate attainment of the ozone NAAQS by the 
applicable deadline--in the case of the South Coast, as expeditiously 
as practicable but not later than November 15, 2010. CAA section 
181(a)(1). The demonstration must be based upon photochemical grid 
modeling or any other analytical method determined to be at least as 
effective.
2. How Does the Revised Ozone Plan Address These Requirements?
    As discussed above, the modeling approach in the revised ozone plan 
is consistent with our modeling guidelines. The modeling analysis shows 
that attainment of the ozone NAAQS will require reducing ozone 
precursors to the following summer day levels: 413 tpd VOC and 530 tpd 
NOX. These levels are frequently called the ``carrying 
capacity'' of the area. The enforceable emission reductions in the 
revised ozone plan will reduce 2010 baseline emissions to these 
attainment levels, as shown in the table entitled ``Table 7--Ozone 
Attainment Demonstration.''

                Table 7.--Ozone Attainment Demonstration
                        [In tons per summer day]
------------------------------------------------------------------------
                                                             VOC    NOX
------------------------------------------------------------------------
1990 baseline emissions...................................   1733   1472
2010 baseline emissions (assuming reductions from all         839    727
 rules adopted as of 9/96)................................
Plan reductions from baseline.............................    426    197
2010 emissions assuming reductions from plan                  413    530
 implementation...........................................
Carrying capacity.........................................    413    530
Percent reduction from 1990 baseline emissions............    76%    64%
------------------------------------------------------------------------

3. Does the Revised Ozone Plan Meet the CAA Requirements?
    The revised ozone plan includes enforceable measures and 
commitments that will achieve the ozone precursor reductions needed to 
reach attainment, as established in a modeling analysis consistent with 
our guidelines. Moreover, the stringent new measures, aggressive 
implementation schedules, and accelerated progress in the revised ozone 
plan also meet the expeditious attainment requirement of CAA section 
181(a). We therefore propose to approve the attainment demonstration 
under CAA section 182(c)(2).

G. Are the emissions budgets approvable?

1. Motor vehicle emissions budgets
    Attainment demonstration submittals must specify the maximum motor 
vehicle emissions allowed in the attainment year and demonstrate that 
this emissions level, when considered with emissions from all other 
sources, is consistent with attainment. In order for us to find the 
budget adequate and approvable, the submittal must meet the conformity 
adequacy requirements of 40 CFR 93.118(e)(4) and be approvable under 
all pertinent SIP requirements.
    The motor vehicle emissions caps defined by this and other plans 
when they are approved into the SIP are used to determine the 
conformity of transportation plans, programs, and projects to the SIP, 
as described by CAA section 176(c)(2)(A). For more detail on this part 
of the conformity requirements see 40 CFR 93.118. For transportation 
conformity purposes, the cap on motor vehicle emissions is known as the 
motor vehicle emissions budget. The budget must reflect all of the 
motor vehicle control measures contained in the attainment 
demonstration (40 CFR 93.118(e)(4)(v)).
    The motor vehicle emissions budgets in the revised ozone plan for 
2010 are 80.7 tpd VOC and 277.8 tpd NOX. These budgets were 
developed using the State's EMFAC7G motor vehicle emissions factors. We 
propose to approve the budgets as consistent with all of the adequacy 
criteria of 40 CFR 93.118(e)(4), including consistency with the 2010 
baseline emissions inventory, the motor vehicle control measure 
emission reductions used in the attainment demonstration, and the 
reductions needed for attainment.
    In the near future, CARB is expected to issue refinements to the 
emissions factors for use in transportation conformity determinations. 
The refinements would more accurately reflect emission reductions 
associated with the State's motor vehicle inspection and maintenance 
(I/M) program and other motor vehicle controls.\11\ These refinements 
must be used in conformity determinations, in accordance with our 
transportation conformity regulations, which require use of the most 
current and accurate information (40 CFR 93.110(e), 122(a)(2)). 
Subsequent budgets will reflect these changes and any new or modified 
control measures.
---------------------------------------------------------------------------

    \11\ The updated emission reductions which, among other things, 
would reflect more accurately the I/M program as compared to the 
1994 submittal, are necessary in the case of I/M to account for a 
legislative change to the program in 1997.
---------------------------------------------------------------------------

2. General Conformity Emissions Budgets
    CAA section 176(c)(1) provides that ``No department, agency, or 
instrumentality of the Federal Government shall engage in, support in 
any way or provide financial assistance for, license or permit, or 
approve any activity which does not conform to an implementation plan. 
. . .'' This provision establishes requirements for ``general 
conformity,'' as distinct from ``transportation conformity,'' discussed 
above.\12\ General conformity must be based on the most recent 
estimates of emissions in the federally approved SIP.
---------------------------------------------------------------------------

    \12\ For more details on the general conformity requirements, 
you should consult 40 CFR 51.850-51.860 and 40 CFR part 93.
---------------------------------------------------------------------------

    The revised ozone plan establishes new emissions budgets for ROP 
milestone years for each source category. The budgets appear in Table 
4-9 of Appendix V of the 1997 ozone revision, and are modified by Table 
2-6 of the 1999 Amendment, which reduces the stationary source VOC 
emissions consistent with the new and accelerated SCAQMD control 
measures in the 1999 Amendment. The emissions budgets as revised by the 
1999 Amendment appear below in the table entitled ``Table 8--Emissions 
Budgets by Milestone Year.''

[[Page 6101]]



                                                      Table 8.--Emissions Budgets by Milestone Year
                                                                    [In tons per day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Stationary              Onroad                Nonroad                Total
                              Year                               ---------------------------------------------------------------------------------------
                                                                     VOC        NOX        VOC        NOX        VOC        NOX        VOC        NOX
--------------------------------------------------------------------------------------------------------------------------------------------------------
1999............................................................      435.2      115.7      354.0      526.8      137.3      292.6      938.6      935.1
2002............................................................      402.4       96.7      273.1      447.1      125.1      270.7      826.1      814.5
2005............................................................      334.4       91.4      206.0      369.1      116.6      234.0      707.6      694.5
2008............................................................      305.1       91.4      145.4      310.1      106.7      209.2      587.4      609.0
2010............................................................      267.6       88.3       80.7      277.8       65.1      164.3      413.6      530.4
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Final approval of the revised ozone plan would establish these 
budgets for purposes of general conformity under CAA section 176(c)(1), 
replacing the budgets in the 1994 ozone SIP. Thus, projects requiring 
general conformity determinations may be able to show that emissions 
from the project are specifically included in the revised ozone plan's 
attainment demonstration (see, 40 CFR 93.158(a)(1)).

H. What are the implications of EPA's proposed plan approval?

    If we finalize the proposed approval of the revised ozone plan, 
this plan would replace and supersede the 1994 ozone SIP with the 
exception of the State control measures for mobile sources, consumer 
products, and pesticides, and EPA's commitment. These State measures 
remain unchanged from those approved as part of the 1994 ozone SIP. 
Final approval would also set new emissions budgets for purposes of 
conformity.
    Our final approval would also make enforceable the SCAQMD 
commitments to adopt and implement the control measures and regulations 
listed above in Tables 1, 2, and 5, to achieve the specified emissions 
reductions, computed consistently with the assumptions in the plan's 
emissions inventory. Similarly, final plan approval would make 
enforceable the SCAQMD commitment to achieve the overall emission 
reduction schedule in Table 3, and this would create the possibility of 
SCAQMD control measure adjustments and substitutions under the approved 
SIP, so long as the emission reduction obligations of Table 3 are 
met.\13\
---------------------------------------------------------------------------

    \13\ Once a substitute control measure has been adopted as a 
regulation and submitted as a SIP revision, we will undertake formal 
rulemaking, with opportunity for public comment, on the regulation.
---------------------------------------------------------------------------

    As discussed in section I.E. above, CARB and SCAQMD intend to adopt 
and submit a comprehensive revision to the ozone plan in 2001. This new 
plan will use an entirely new UAM attainment analysis, updated and 
corrected baseline and projected emissions information, and updates to 
the control measures to reflect the current status of the measures and 
any changes to the measures that may be required to meet the emission 
reduction needs in the new attainment demonstration or to ensure that 
the SIP emission reduction commitments are met. We strongly support the 
timely completion of this new comprehensive revision to refine and 
enhance the technical foundations of the attainment demonstration and 
update the control measures, as necessary.

III. Administrative Requirements

A. Executive Order 12866

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

B. Executive Order 13132

    Executive Order 13132, entitled Federalism (64 FR 43255, August 10, 
1999) revokes and replaces Executive Orders 12612, Federalism and 
12875, Enhancing the Intergovernmental Partnership. Executive Order 
13132 requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations that have ``substantial direct 
effects on the 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.'' Under 
Executive Order 13132, EPA may not issue a regulation that has 
federalism implications, that imposes substantial direct compliance 
costs, and that is not required by statute, unless the Federal 
government provides the funds necessary to pay the direct compliance 
costs incurred by State and local governments, or EPA consults with 
State and local officials early in the process of developing the 
proposed regulation. EPA also may not issue a regulation that has 
federalism implications and that preempts State law unless the Agency 
consults with State and local officials early in the process of 
developing the proposed regulation.
    This proposed rule will not have substantial direct effects on the 
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 13132 (64 
FR 43255, August 10, 1999), because it merely approves a state rule 
implementing a federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act. Thus, the requirements of section 6 of the Executive Order 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: (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. This rule is 
not subject to E.O. 13045 because it is does not involve decisions 
intended to mitigate environmental health or safety risks.

D. Executive Order 13084

    Under Executive Order 13084, Consultation and Coordination with 
Indian Tribal Governments, 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

[[Page 6102]]

Federal government provides the funds necessary to pay the direct 
compliance costs incurred by the tribal governments, or EPA consults 
with those governments. If EPA complies by consulting, Executive Order 
13084 requires EPA to provide to the Office of Management and Budget, 
in a separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.'' Today's rule 
does not significantly or uniquely affect the communities of Indian 
tribal governments. Accordingly, the requirements of section 3(b) of 
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 final rule will not have a significant impact on a 
substantial number of small entities because SIP approvals under 
section 110 and subchapter I, part D of the Clean Air Act do not create 
any new requirements but simply approve requirements that the State is 
already imposing. Therefore, because the Federal SIP approval does not 
create any new requirements, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
Moreover, due to the nature of the Federal-State relationship under the 
Clean Air Act, preparation of flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
Clean Air Act forbids EPA to base its actions concerning SIPs on such 
grounds. Union Electric Co., v. U.S. EPA, 427 U.S. 246, 255-66 (1976); 
42 U.S.C. 7410(a)(2).

F. Unfunded Mandates

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

G. National Technology Transfer and Advancement Act

    Section 12 of the National Technology Transfer and Advancement Act 
(NTTAA) of 1995 requires Federal agencies to evaluate existing 
technical standards when developing new regulations. To comply with 
NTTAA, the EPA must consider and use ``voluntary consensus standards'' 
(VCS) if available and applicable when developing programs and policies 
unless doing so would be inconsistent with applicable law or otherwise 
impractical.
    EPA believes that VCS are inapplicable to this proposed action. 
Today's proposed action does not require the public to perform 
activities conducive to the use of VCS.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental regulations, Nitrogen oxides, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

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

    Dated: January 28, 2000.
Nora L. McGee,
Acting Regional Administrator, Region IX.
[FR Doc. 00-2827 Filed 2-7-00; 8:45 am]
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