[Federal Register Volume 66, Number 177 (Wednesday, September 12, 2001)]
[Proposed Rules]
[Pages 47419-47428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22908]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[Region 2; Docket No. NJ46-226, FRL-7055-6]


Approval and Promulgation of Implementation Plans; New Jersey 
Reasonable Further Progress Plans and Transportation Conformity Budgets 
for 2002, 2005 and 2007

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a New Jersey State Implementation Plan (SIP) revision involving 
the State's 1-hour Ozone Plan which is intended to meet several Clean 
Air Act requirements including the separate requirement for enforceable 
commitments for the 1-hour ozone attainment demonstration. 
Specifically, EPA is proposing approval of the: 1996 periodic emission 
inventory; 2002, 2005 and 2007 ozone projection year emission 
inventories; Reasonable Further Progress Plans for milestone years 
2002, 2005 and 2007; transportation conformity budgets for 2002, 2005 
and 2007; and contingency measures. 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 1-hour 
national ambient air quality standard for ozone.

DATES: Comments must be received on or before October 12, 2001.

ADDRESSES: All comments should be addressed to: Raymond Werner, Chief, 
Air Programs Branch, Environmental Protection Agency, Region 2 Office, 
290 Broadway, 25th Floor, New York, New York 10007-1866.
    Copies of the New Jersey 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 Jersey Department of Environmental Protection, Office of Air 
Quality Management, Bureau of Air Pollution Control, 401 East State 
Street, CN027, Trenton, New Jersey 08625.

FOR FURTHER INFORMATION CONTACT: Paul R. Truchan concerning general 
questions or RFP Plans and Demian Ellis concerning emission 
inventories, both of the 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. Overview
    A. What Action is EPA taking today?
    B. What is required by the Clean Air Act and how does it apply 
to New Jersey?
II. Emission Inventories
    A. What is contained in New Jersey's 1996 Periodic Emission 
Inventory?
    B. How were New Jersey's 2002, 2005, and 2007 Projection Year 
Inventories developed and what were the results?
III. Reasonable Further Progress Plans
    A. What is a reasonable further progress (RFP) Plan?
    B. How does New Jersey demonstrate RFP?
    C. Can control measures that reduce NOX be used to 
demonstrate RFP?
    D. What are the results of New Jersey's RFP Plan demonstration?

[[Page 47420]]

    E. How will New Jersey achieve the necessary emission 
reductions?
    1. NOX Budget Program
    2. Reformulated Gasoline Phase II--On-Road
    3. Enhanced I/M Program
    4. Heavy-Duty Diesel Vehicle (HDDV) Defeat Devices Settlement
    5. Nonroad measures
    F. Summary of 2002, 2005 and 2007 RFP Plans Evaluation
    G. How do the RFP Plans relate to the 1-hour ozone attainment 
demonstration?
    H. How did New Jersey address the contingency measure 
requirement?
IV. Are conformity budgets contained in these plans and are they 
approvable?
V. Are New Jersey's Enforceable Commitments consistent with EPA's 
proposed approval of New Jersey's 1-hour ozone attainment 
demonstration?
VI. What are EPA's Conclusions?
VII. Administrative Requirements:

I. Overview

A. What Action Is EPA Taking Today?

    On April 11, 2001, New Jersey submitted a revision to its 1-hour 
ozone SIP which addressed several Clean Air Act (Act) requirements. 
After reviewing this submittal compared to EPA policy and guidance, EPA 
is proposing approval of this submittal which includes: the 1996 
periodic emission inventory; 2002, 2005 and 2007 ozone projection year 
emission inventories; Reasonable Further Progress (RFP) Plans for 
milestone years 2002, 2005 and 2007; transportation conformity budgets 
for 2002, 2005 and 2007; and contingency measures. This submittal 
applies to the New Jersey portions of two severe ozone nonattainment 
areas--the New York, Northern New Jersey, Long Island Area, and the 
Philadelphia, Wilmington, Trenton Area. For purposes of this action 
these areas will be referred to as, respectively, the Northern New 
Jersey ozone nonattainment area (NAA) and the Trenton ozone NAA. The 
counties located within the Northern New Jersey NAA are: Bergen, Essex, 
Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, 
Somerset, Sussex, and Union. The counties within the Trenton NAA are: 
Burlington, Camden, Cumberland, Gloucester, Mercer, and Salem.
    This SIP revision is intended to fulfill the Act's three percent 
per-annum reasonable further progress (RFP) plan requirement. It also 
includes: ozone projection year emission inventories, contingency 
measures and transportation conformity budgets and fulfills the 
periodic emission inventory requirement for 1996.

B. What Is Required by the Clean Air Act and How Does it Apply to New 
Jersey?

    Section 182 of the Act specifies the required State Implementation 
Plan (SIP) submissions and requirements for areas designated 
nonattainment for the 1-hour ozone standard and when the states must 
make these submissions to EPA. 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.
    New Jersey has four ozone nonattainment areas (NAAs). These areas 
are the Allentown-Bethlehem Easton Area (Warren County), Atlantic City 
Area, the Trenton Area, and the Northern New Jersey Area. For the 
Atlantic City and Allentown-Bethlehem Easton areas, the most recent 
three years of data continue to demonstrate attainment of the 1-hour 
ozone standard and, therefore, RFP Plans are not necessary. As for the 
Northern New Jersey and Trenton NAAs, which are classified as severe 
ozone nonattainment areas, the most recent three years of data, while 
showing improved air quality, continues to show nonattainment. The 
primary focus of this Federal Register action is the Northern New 
Jersey and Trenton NAAs. Additional details of EPA's review are 
included in the Technical Support Document.

II. Emission Inventories

A. What Is Contained in New Jersey's 1996 Periodic Emission Inventory?

    New Jersey developed a 1996 actual inventory consisting of point, 
area, on-road mobile, nonroad mobile, and biogenic source emissions. 
The point source inventory was based on data from New Jersey's annual 
Emission Statement Program which requires sources (which have the 
potential to emit greater than 10 tons per year of volatile organic 
compounds (VOCs) or 25 tons of oxides of nitrogen ( NOX)) to 
report actual emissions. The area source inventory was based on the 
latest factors and methodologies recommended by EPA. The on-road mobile 
source inventory was developed using data on vehicle miles traveled 
provided by the Metropolitan Planning Organizations in conjunction with 
emission factors generated using EPA's MOBILE5 emissions model for the 
eight on-road vehicle classes. Vehicle registration data for 1996 was 
used in the modeling. The nonroad mobile source inventory was developed 
using EPA's draft NONROAD model to generate emissions for the nonroad 
engines and equipment category; landing and takeoff data to generate 
aircraft emissions; estimated fuel consumption data for locomotive 
emissions; and estimated fuel consumption and vessel trips for 
commercial marine vessel emissions. The biogenic source inventory was 
developed using the USEPA's Biogenic Emission Inventory System (BEIS) 
Version 2.3. Table 1 below provides a summary of 1996 VOC and 
NOX emissions in tons per summer day (tpd) statewide and by 
nonattainment area.

                              Table 1.--Summary of 1996 VOC and NOX Emissions in New Jersey by State and Nonattainment Area
                                                                     [tons per day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                        Category                               Point           Area           On-Road         Nonroad        Biogenic          Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              VOC Emissions
--------------------------------------------------------------------------------------------------------------------------------------------------------
Atlantic City...........................................            0.43           13.02           13.38           20.29          114.07          161.19
Northern N.J............................................          140.87          215.27          206.52          138.41          310.70         1011.77
Trenton.................................................           28.73           72.35           82.70           41.99          241.91          467.68
Allentown...............................................            3.19            4.34            6.41            3.04           20.84           37.82
                                                         -----------------------------------------------------------------------------------------------
    State Total.........................................          173.22          304.98          309.01          203.73          687.52         1678.46
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 47421]]

 
                                                                      NOX Emissions
--------------------------------------------------------------------------------------------------------------------------------------------------------
Atlantic City...........................................           39.91            1.81           23.80           11.46            0.85           77.83
Northern N.J............................................          154.20           29.57          302.92          202.07            3.87          692.63
Trenton.................................................           94.47            7.86          112.94           52.18            3.09          270.54
Allentown...............................................            2.47            0.42           14.17            3.53            0.99           21.58
                                                         -----------------------------------------------------------------------------------------------
    State Total.........................................          291.05           39.66          453.83          269.24            8.80         1062.58
--------------------------------------------------------------------------------------------------------------------------------------------------------

    EPA proposes to find New Jersey's 1996 periodic emission inventory 
to be consistent with EPA's policy and guidance and is approvable.

B. How Were New Jersey's 2002, 2005, and 2007 Projection Year 
Inventories Developed and What Were the Results?

    In order to project its VOC and NOX emissions out to 
future years, New Jersey based its projections on the 1996 periodic 
emission inventory. The point source projections were developed by 
applying growth factors generated either from the Economic Growth 
Analysis System (EGAS) or the Department of Energy's Energy Information 
Administration (EIA). The area source projections were developed by 
applying growth factors which were based on a variety of indicators 
including but not limited to: population, vehicle miles traveled, fuel 
combustion, pesticide use, traffic paint use, asphalt applied, value 
added, etc. The on-road mobile source projections were developed for 
the eight vehicle classes by multiplying emission factors generated 
from MOBILE5 by VMT projections supplied by the Metropolitan Planning 
Organizations within the State. The nonroad mobile source projections 
were derived in several ways: for the nonroad equipment and engine 
category, EPA's draft NONROAD model was used to generate the 
projections. For commercial marine vessels, the State determined growth 
factors from the rulemaking document entitled, ``Control of Emissions 
of Air Pollution from New Compression-Ignition Marine Engines at or 
above 37 Kilowatts,'' and applied the factors by pollutant and vessel 
category. For locomotive emission projections, the State based its 
projections upon the regulatory support document for the rulemaking 
entitled, ``Emission Standards for Locomotives and Locomotive 
Engines.'' The State determined the emission factors and applied them 
by the percent of the locomotive engines covered by the EPA rulemaking. 
Locomotive engines not covered by the rulemaking were projected by 
population. For aircraft emission projections, the State based these on 
either the number of landing and take-off operations, EGAS model 
calculations, or flight facility specific information, depending upon 
the aircraft and the availability of the data. Table 2 below provides a 
summary of projected VOC and NOX emissions for the Northern 
New Jersey and Trenton NAAs.

  Table 2.--Summary of 2002, 2005, and 2007 Projected VOC and NOX Emissions in New Jersey by Nonattainment Area
                                                    \1\ (tpd)
----------------------------------------------------------------------------------------------------------------
            Category                   Point           Area           On-Road         Nonroad          Total
----------------------------------------------------------------------------------------------------------------
                                                      2002
----------------------------------------------------------------------------------------------------------------
                                               Northern New Jersey
----------------------------------------------------------------------------------------------------------------
VOC.............................          149.01          225.15          135.48          106.70          616.34
NOX.............................           94.01           29.58          229.28          220.65          573.52
----------------------------------------------------------------------------------------------------------------
                                                     Trenton
----------------------------------------------------------------------------------------------------------------
VOC.............................           30.42           76.34           61.63           33.31          201.70
NOX.............................           84.69            7.85           86.14           55.30          233.98
----------------------------------------------------------------------------------------------------------------
                                                      2005
----------------------------------------------------------------------------------------------------------------
                                               Northern New Jersey
----------------------------------------------------------------------------------------------------------------
VOC.............................          156.27          234.03           94.58           93.23          578.11
NOX.............................           85.27           29.77          178.75          217.72          511.51
----------------------------------------------------------------------------------------------------------------
                                                     Trenton
----------------------------------------------------------------------------------------------------------------
VOC.............................           31.83           79.42           42.64           29.62          183.51
NOX.............................           71.34            7.89           66.04           54.12          199.39
----------------------------------------------------------------------------------------------------------------
                                                      2007
----------------------------------------------------------------------------------------------------------------
                                               Northern New Jersey
----------------------------------------------------------------------------------------------------------------
VOC.............................          162.13          238.40           89.83           83.51          573.87

[[Page 47422]]

 
NOX.............................           93.64           30.14          165.12          212.72          501.62
----------------------------------------------------------------------------------------------------------------
                                                     Trenton
----------------------------------------------------------------------------------------------------------------
VOC.............................         \2\ n/a             n/a             n/a             n/a             n/a
NOX.............................             n/a             n/a             n/a             n/a            n/a
----------------------------------------------------------------------------------------------------------------
\1\ Emissions include growth and application of controls.
\2\ Not applicable.

    EPA proposes to find New Jersey's 2002, 2005, and 2007 projection 
year emission inventories to be consistent with EPA's policy and 
guidance and finds them approvable.

III. Reasonable Further Progress Plans

A. What Is a Reasonable Further Progress (RFP) Plan?

    A RFP Plan is a plan developed by a state for reducing VOC 
emissions by three percent per year averaged over each consecutive 
three-year period beginning six years after enactment of the Act (1996) 
until the area attains the 1-hour ozone standard (2005 for the Trenton 
NAA and 2007 for the Northern New Jersey NAA). EPA previously approved 
the 15 and 9 Percent ROP Plans for New Jersey (64 FR 19913, April 23, 
1999). Those plans identified the control measures and the VOC and 
NOX emission reduction credits associated with those 
measures that would be achieved from 1990 through 1999. This proposal 
takes action on the RFP Plans for the Trenton NAA for milestone years 
2002 through the attainment year 2005; and the Northern New Jersey NAA 
for milestone year 2002, 2005, through the attainment year 2007.

B. How Does New Jersey Demonstrate RFP?

    Using 1990 base year emission inventory which EPA approved on April 
23, 1999 (64 FR 19913), New Jersey calculated an ``adjusted baseline 
inventory'' by removing the biogenic and non-creditable reductions 
(Federal Motor Vehicle Control Program and Federal Gasoline Reid Vapor 
Pressure regulations) from the base year emissions. The required RFP 
percent reduction was then applied to the adjusted baseline year 
inventory to yield the VOC emission target levels. New Jersey used a 
cumulative percent reduction methodology for the RFP demonstration. 
Instead of showing a 9% reduction between 2000-2002, a 9% reduction 
between 2003-2005 and a 6% between 2006-2007, the State showed it would 
achieve 33% by 2002 (15% from the 15 Percent ROP Plan plus 9% from the 
Post 1996 ROP Plan plus 9% from the Post 1999 RFP Plan equaling a total 
of 33%), similarly, a 42% reduction by 2005 and 48% reduction by 2007. 
These are summarized in Table 3.

                             Table 3.--VOC Reasonable Further Progress Target Levels
----------------------------------------------------------------------------------------------------------------
                                                     Base Year           VOC Emission Target levels  (tpd)
                                                       (tpd)     -----------------------------------------------
      Nonattainment Area New Jersey Portion      ----------------
                                                       1990            2002            2005            2007
----------------------------------------------------------------------------------------------------------------
Northern New Jersey.............................          957.03          593.91          512.90          459.89
Trenton.........................................          358.15          229.35          196.27
----------------------------------------------------------------------------------------------------------------

    The VOC target emission level is the level the State must be at or 
below in order to achieve RFP. The State selected the control measures 
which will reduce the projected VOC emissions to this target level or 
below. The projected VOC and NOX emissions include growth 
that occurs from the 1990 base year. These measures must result in 
attainment as soon as practicable, but no later than the attainment 
date based on the nonattainment areas' classification.
    Using the projection year emission inventories (discussed above) 
along with the selected control measures, the State then checked its 
control strategy selection by determining what the emissions would be 
in the milestone years and compares it to the target VOC emission 
levels.

C. Can Control Measures That Reduce NOX Be Used To 
Demonstrate RFP?

    New Jersey has shown using photochemical grid modeling that 
NOX reductions will contribute toward attaining the ozone 
standard. Section 182(c)(2)(C) of the Act allows NOX 
reductions to be substituted for VOC reductions in RFP demonstrations 
in accordance with EPA guidance. New Jersey has shown that 
NOX reductions may appropriately be counted towards the RFP 
requirements. A full explanation of how New Jersey satisfied EPA's 
guidance is included in the TSD.
    Based on EPA guidance, New Jersey has demonstrated that every ton 
of NOX is equivalent to approximately 0.91 tons of VOC in 
the Northern New Jersey NAA on a percent of total inventory basis. In 
the Trenton NAA New Jersey only used VOC reductions to demonstrate RFP.

D. What Are the Results of New Jersey's RFP Plan Demonstration?

    New Jersey demonstrated RFP based on a cumulative methodology. It 
incorporated growth in point, area and mobile source categories, and 
benefits from State and federal control measures. New Jersey also 
adjusted the NOX reductions to account for growth that is 
projected to occur by the target years. NOX emission 
reductions were used along with VOC emission reductions in the Northern 
New Jersey NAA to demonstrate RFP.
    Figure 1 plots the VOC target out to 2007 for the Northern New 
Jersey NAA. The projected VOC emissions including growth and applying 
control measures is also plotted and a third line

[[Page 47423]]

represents the sum of the VOC emissions and VOC equivalent reductions 
resulting from NOX reductions (NOX equivalent). 
As can be seen from Figure 1, the sum of the VOC emissions with 
NOX equivalent reductions falls below the VOC target level. 
This demonstrates that RFP will be achieved. The projected controlled 
level of emissions in milestone years 2002, 2005 and 2007 are 250.41, 
158.84, and 145.84 tons per summer day, respectively.
    Figure 2 shows the results of applying the RFP Plans for the 
Trenton NAA. It demonstrates that RFP is achieved with only VOC control 
measures. The projected controlled level of emissions in milestone 
years 2002 and 2005 are 201.71 and 183.53 tons per summer day, 
respectively. New Jersey adopted the NOX control measures 
with statewide applicability and the NOX controls are needed 
to demonstrate attainment of the 1-hr ozone NAAQS, but not to meet RFP 
requirements in the Trenton NAA.
BILLING CODE 6560-50-P

[[Page 47424]]

[GRAPHIC] [TIFF OMITTED] TP12SE01.001

BILLING CODE 6560-50-C

E. How Will New Jersey Achieve the Necessary Emission Reductions?

    New Jersey provided a plan which contains control measures 
sufficient to achieve the RFP reductions required for the Northern New 
Jersey and Trenton NAAs. Table 4 identifies the specific control 
measures New Jersey will rely on between 2000-2007. Some of those 
control measures were utilized in the federally approved 15 and 9 
Percent ROP plans, however, due to the nature of the control measures/
programs these measures achieve additional emission reduction credits 
beyond those used in the 15 and 9 Percent ROP Plans. These unused 
reductions are being applied to these RFP Plans. For a concise 
description of those control measures

[[Page 47425]]

and emission reduction credits used in the 15 and 9 Percent Plans, the 
reader is referred to EPA's proposed rulemaking actions on the New 
Jersey 15 and 9 Percent ROP plans, published in the Federal Register on 
April 30, 1997 (62 FR 23410) and March 1, 1999 (64 FR 9952). All of the 
measures identified in Table 4 have either been adopted by New Jersey 
and approved by EPA as SIP revisions or are promulgated federal 
measures.
    Table 5 contains a list of the new measures that were not 
previously included in New Jersey's 15 and 9 Percent Plans. A brief 
description of these new measures follows the table.

       Table 4.--Control Measures Included in New Jersey RFP Plans
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
Stationary Sources:
    Pre-1996 Controls Applied to New Sources
    NOX Budget Program
Area Sources:
    Marine Vessel Ballasting and Loading of Gasoline (Barge & Tanker)
    Architectural Surface Coatings
    Consumer and Commercial Solvents
    Auto Refinishing
    Landfills
On-road:
    New Vehicle Standards--Tier 1
    New Vehicle Standards--Tier 2
    National Low Emission Vehicle Program--NLEV
    Reformulated Gasoline--Phase II
    Enhanced Inspection and Maintenance (I/M)
    Heavy Duty Diesel Vehicle Defeat Device & New Engine Standards
Nonroad:
    Spark Ignition, Small Engines
    New Marine Gas Engines
    Nonroad Diesel Engines
    Locomotive Engines
    Commercial Marine Diesel Engines
------------------------------------------------------------------------


  Table 5.--New Control Measures Not Included in New Jersey's 15 and 9
                            Percent ROP Plans
------------------------------------------------------------------------
 
-------------------------------------------------------------------------
NOX Budget Program
Reformulated Gasoline Phase II--On-Road
Enhanced Inspection and Maintenance (I/M) Program
Heavy Duty Diesel Vehicle Defeat Device & New engine standards
New Vehicle Standards--Tier 2
Nonroad measures:
    Spark Ignition, Small Engines
    New Marine Gas Engines
    Nonroad Compression Engines
    Locomotive Engines
    Commercial Marine Diesel Engines
------------------------------------------------------------------------

1. NOX Budget Program

    New Jersey's NOX reduction programs began with adopting 
regulations requiring NOX reasonably available control 
technology (RACT) for stationary sources emitting NOX. This 
was approved by EPA on March 29, 1999 (64 FR 14834). It was further 
expanded to incorporate the Ozone Transport Commission (OTC) Memorandum 
of Understanding recommendations which were effective starting in 1999 
and additional requirements in 2003 for major NOX sources. 
These were approved by EPA on September 5, 2000 (65 FR 53599).
    On October 27, 1998, EPA published a final rule entitled, ``Finding 
of Significant Contribution and Rulemaking for Certain States in the 
Ozone Transport Assessment Group Region for Purposes of Reducing 
Regional Transport of Ozone,'' otherwise known as the `` NOX 
SIP Call.'' See 63 FR 57356. At that time, the NOX SIP Call 
required 22 states and the District of Columbia \1\ to meet statewide 
NOX emission budgets during the five month period from May 1 
through September 30 in order to reduce the amount of ground level 
ozone that is transported across the eastern United States. The 
NOX SIP Call set out a schedule that required the affected 
states, including New Jersey, to adopt regulations by September 30, 
1999, and to implement control strategies by May 1, 2003.\2\
---------------------------------------------------------------------------

    \1\ Alabama, Connecticut, District of Columbia, Delaware, 
Georgia, Illinois, Indiana, Kentucky, Massachusetts, Maryland, 
Michigan, Missouri, North Carolina, New Jersey, New York, Ohio, 
Pennsylvania, Rhode Island, South Carolina, Tennessee, virginia, 
Wisconsin, and West Virginia.
    \2\ On May 25, 1999, the D.C. circuit issued a stay of the 
submission requirement of the SIP Call pending further order of the 
court. Michigan v. EPA, No. 98-1497 (D.C. Cir. May 25, 1999) (order 
granting stay in part). On December 10, 1999 and July 31, 2000, New 
Jersey voluntarily submitted this revision to EPA for approval 
notwithstanding the court's stay of the SIP submission deadline. On 
March 3, 2000, the D.C. Circuit ruled on Michigan v. EPA, affirming 
most aspects of the SIP Call and remanding limited portions to the 
Agency. On June 22, 2000, the DC circuit lifted the stay of the SIP 
submission obligations and provided states until October 30, 2000 to 
adopt regulations.
---------------------------------------------------------------------------

    The NOX SIP Call allowed states the flexibility to 
decide which source categories to regulate in order to meet the 
statewide budgets. However, the SIP Call notice suggested that imposing 
statewide NOX emission caps on large fossil-fuel fired 
industrial boilers and electricity generators would provide a highly 
cost-effective means for states to meet their NOX budgets. 
On December 10, 1999 and July 31, 2000, New Jersey submitted SIP 
revisions which included revisions to Subchapter 31, `` NOX 
Budget Program,'' (adopted July 28, 2000) and a narrative explaining 
the Regional NOX Cap Program requirements in New Jersey. 
These submittals were made to strengthen its 1-hour ozone SIP and to 
comply with EPA's NOX SIP Call during each ozone season, 
i.e., May 1 through September 30, beginning in 2003. On May 22, 2001 
(66 FR 28063) EPA approved New Jersey's NOX control program 
and found it complied with the NOX SIP Call.

2. Reformulated Gasoline Phase II--On-Road

    The second phase of the federal reformulated gasoline program (RFG 
Phase II) began on January 1, 2000 and applied statewide. RFG Phase II 
reduces emissions further than the first phase of the program, 
requiring minimum ozone season VOC reductions of 27 percent from VOC 
levels based on average 1990 gasoline formulations. The second phase of 
the program also requires that refiners reduce NOX levels by 
a minimum of seven percent from average 1990 levels. New Jersey has 
accounted for the emissions reduction effects of RFG Phase II in its 
most recent RFP Plans.

3. Enhanced I/M Program

    The implementation phase of New Jersey's Enhanced I/M program was 
delayed and the emission reductions were unavailable for use in the 15 
and 9 Percent Rate of Progress Plans. It is currently operational and 
EPA reinstated the interim approval on June 12, 2001 (66 FR 31544). New 
Jersey has submitted its proposed final National Highway Systems 
Designations Act evaluation report and its revised performance standard 
modeling for parallel processing as a SIP revision. EPA will be 
proposing action on this submittal in a separate Federal Register.

4. Heavy-Duty Diesel Vehicle (HDDV) Defeat Devices Settlement

    On October 22, 1998, the Department of Justice and the EPA 
announced a settlement with seven major diesel engine manufacturers to 
resolve claims that they illegally installed software that resulted in 
increased emissions. New Jersey has accounted for the decrease in 
emission reductions from this program by identifying additional credits 
from other programs. While the settlement will result in lower 
emissions, these lower emissions will not occur in the time frame the 
RFP Plans cover.

5. New Vehicle Standards--Tier 2

    On February 10, 2000, EPA promulgated more stringent motor vehicle 
emission standards and low sulfur gasoline limits as part of the 
Federal Motor Vehicle Control Program (FMVCP). These are refered to as 
the Tier 2/Low Sulfur Gasoline Program and

[[Page 47426]]

go into effect beginning in 2004. The benefit from these regulations 
increase as new vehicles replace old ones. New Jersey has accounted for 
the emissions reduction effects of Tier 2/Low Sulfur Gasoline Program 
in its most recent RFP Plans.

6. Nonroad Measures

    New Jersey has included emission reductions from several 
promulgated federal regulations: spark ignition small engine, Phase I 
and II; new gasoline spark ignition marine engines; nonroad compression 
ignition engines (Tiers 1, 2 and 3); locomotives and locomotive 
engines; and commercial marine diesel engines. The benefit from these 
regulations increase as new engines replace old ones. New Jersey used 
EPA's National Nonroad Emissions Model to calculate the emissions and 
benefits from the first three categories, for the last two categories 
the regulatory support documents were used from EPA's rulemakings to 
calculate the emission reduction benefit. The benefit from Reformulated 
Gasoline Phase II in nonroad gasoline engines is included in these 
emission calculations.
    New Jersey based its emissions reductions from the first three 
categories using EPA's draft NONROAD computer model. New Jersey 
believed this method was more accurate than allocating national 
emissions and reductions for each engine type to each of New Jersey's 
nonattainment areas. EPA has determined that New Jersey's methods for 
predicting emissions benefits from this source category are acceptable. 
However, New Jersey should be aware that it may need to recalculate the 
nonroad emission inventory once the model has been officially released 
for use. Recalculation would be necessary if, at that time, there is 
reason to believe that results predicted by the final NONROAD model 
would affect the outcome of the RFP Plans conclusions. This is because 
EPA guidance does not recommend use of draft models for SIP purposes.

F. Summary of 2002, 2005 and 2007 RFP Plans Evaluation

    New Jersey has identified the control measures necessary for 
achieving the required emission reductions and all the measures have 
been adopted and implemented or adopted and scheduled for 
implementation. EPA is proposing to find that the RFP Plans contain 
sufficient control measures as identified in Table 4 to achieve the 
required emission reductions. EPA proposes to approve these emission 
reduction credits as part of the RFP Plans.

G. How Do the RFP Plans Relate to the 1-Hour Ozone Attainment 
Demonstration?

    New Jersey's attainment demonstration was based on photochemical 
grid modeling and demonstrated that NOX reductions are 
beneficial in reducing ozone concentrations. The RFP Plans 
demonstration contained the same control measures included in the 1-
hour ozone attainment demonstrations, dated August 31, 1998. The 
projected controlled emission levels will decrease further when the 
State adopts the measures needed to meet the additional emissions 
reduction which EPA identified in its December 16, 1999 proposed 
approval of the 1-hour ozone attainment demonstrations. In addition, 
because New Jersey historically applies control measures statewide, 
additional emission reductions from three counties not included in the 
two severe nonattainment areas will lower ozone precursor emissions 
transported into the severe nonattainment areas.

H. How Did New Jersey Address the Contingency Measure Requirement?

    The New Jersey submittal also addresses contingency measures 
required under the Act. Section 172(c)(9) of the Act requires states 
with ozone nonattainment areas classified as moderate and above to 
adopt contingency measures by November 15, 1993. Such measures must 
provide for the implementation of specific emission control measures if 
an ozone nonattainment area fails to achieve RFP or fails to attain the 
NAAQS within the time-frames specified under the Act. Section 182(c)(9) 
of the Act requires that, in addition to the contingency measures 
required under section 172(c)(9), the contingency measure SIP revision 
for serious and above ozone nonattainment areas must also provide for 
the implementation of specific measures if the area fails to meet any 
applicable milestone in the Act. As provided by these sections of the 
Act, the contingency measures must take effect without further action 
by the state or by the EPA Administrator upon failure by the state to: 
meet RFP emission reduction milestones; attain the NAAQS by the 
required deadline; or meet other applicable milestones of the Act. 
EPA's policy, as provided in the April 16, 1992, ``General Preamble for 
the Implementation of Title I of the Clean Air Act Amendments of 1990'' 
(General Preamble) (57 FR 13498), states that the contingency measures, 
in total, must generally be able to provide for 3% reduction of the 
1990 adjusted baseline emissions beyond the reduction required for a 
particular milestone year. While all contingency measures must be fully 
adopted rules or measures, states can use the measures in two different 
ways. A state can choose to implement contingency measures before the 
milestone deadline.
    Alternatively, a state may decide not to implement a contingency 
measure until an area has actually failed to achieve a RFP or 
attainment milestone. In the latter situation, the contingency measure 
emission reduction must be achieved within one year following 
identification of a milestone failure. The General Preamble indicates 
that the 3% reduction ``buffer'' must be maintained through each RFP 
milestone. Therefore, New Jersey must demonstrate that the two severe 
nonattainment areas have enough contingency measure reductions in 
addition to the reductions claimed for the 2002, 2005 and 2007 RFP 
Plans.
    Consistent with EPA guidance, New Jersey used a combination of 
excess VOC and NOX emission reductions (0.3% VOC and 2.7% 
NOX) resulting from the implementation of New Jersey's 
Subchapter 24, ``Control and Prohibition of Volatile Organic Compounds 
from Consumer and Commercial Products'' and Subchapter 31, ``Ozone 
Transport Commission NOX Budget Program'' to provide for the 
contingency reductions.
    The New Jersey RFP Plans achieve, in addition to the RFP ozone 
precursor reduction, a 3% reduction in VOC and NOX through 
creditable control measures. For this reason, the contingency measure 
portion of the 2002, 2005 and 2007 RFP Plans satisfy the contingency 
measure requirements of the Act. EPA proposes to approve the 
contingency measure portion of the SIP revision.

IV. Are Conformity Budgets Contained in These Plans and Are They 
Approvable?

    The tables below summarize New Jersey's Emission Budgets contained 
in the April 11, 2001 SIP revision. They are based on 1999 vehicle 
registration data. On June 1, 2001 (66 FR 29797), EPA found these 
budgets to be adequate for conformity purposes effective June 18, 2001.
    For the South Jersey Transportation Planning Organization (SJTPO) 
and Delaware Valley Regional Planning Commission (DVRPC) the 2002 
budgets are new budgets based on the RFP Plans, while the 2005 budgets 
are revised attainment year budgets. For the North Jersey 
Transportation Planning Authority (NJTPA) the 2002 budgets are new 
budgets based on the RFP Plans,

[[Page 47427]]

the 2005 budgets are revised budgets also based on the RFP Plans, while 
the 2007 budgets are revised attainment year budgets.
    By virtue of proposing approval of the 2002, 2005 and 2007 RFP 
Plans, EPA is also proposing approval of the motor vehicle emissions 
budgets for VOC and NOX. In addition, since New Jersey's 
2005 RFP Plan for the Trenton NAA and 2007 RFP Plan for the Northern 
New Jersey NAA are consistent with the 1-hour attainment 
demonstrations, which EPA proposed to approve on December 19, 1999, 
these emission budgets also represent attainment year budgets.

                             Table 6.--New Jersey Transportation Conformity Budgets
----------------------------------------------------------------------------------------------------------------
                                              2002                      2005                      2007
   Transportation  planning area   -----------------------------------------------------------------------------
                                     VOC  (tpd)   NOX  (tpd)   VOC  (tpd)   NOX  (tpd)   VOC  (tpd)   NOX  (tpd)
----------------------------------------------------------------------------------------------------------------
North Jersey Transportation              140.15       240.19        98.11       187.70        93.20       175.51
 Planning Authority (NJTPA).......
South Jersey Transportation               17.49        33.02        13.36        26.42      \1\ n/a          n/a
 Planning Organization (SJTPO)....
Delaware Valley Regional Planning         55.28        73.05        38.03        55.62          n/a         n/a
 Commission (DVRPC)...............
----------------------------------------------------------------------------------------------------------------
\1\ Not applicable.


  Table 7.--McGuire Air Force Base General Conformity Emission Budgets
------------------------------------------------------------------------
                                           VOC tons/year  NOX  tons/year
------------------------------------------------------------------------
1990 Baseline...........................           1,112           1,038
1996....................................           1,186           1,107
1999....................................           1,223           1,142
2002....................................           1,405             875
2005....................................           1,406             884
------------------------------------------------------------------------

    On April 11, 2000, New Jersey provided an enforceable commitment to 
revise its attainment year motor vehicle emission budgets within one 
year of the official issuance of the MOBILE6 motor vehicles emissions 
model for regulatory purposes. The revised budgets that will result 
from MOBILE6 will be based on a more appropriate estimation of the 
benefits from EPA's Tier 2 vehicle and fuel standards. New Jersey also 
provided an enforceable commitment to revise its attainment year motor 
vehicle emission budgets if additional mobile source control measures 
are adopted.
    Since New Jersey has committed to revise the emissions budgets 
which EPA is proposing to approve today, EPA's approval of the 
emissions budgets will last only until adequate revised budgets are 
submitted pursuant to the above commitments. The revised budgets will 
apply as soon as they are found adequate. It is not necessary to wait 
until the revised budgets are approved as revisions to the respective 
Plans because EPA recognizes that if the revised budgets are revised 
according to MOBILE6, they will be based on a more technical 
understanding of motor vehicle emission control programs and therefore 
more appropriate than the originally approved budgets for conformity 
purposes. See EPA's July 28, 2000 supplemental proposal (65 FR 46383) 
for the ozone attainment demonstrations for more background 
information.
    Therefore, EPA finds that these budgets are consistent with the 
control measures included in the RFP Plans and attainment 
demonstrations. EPA is proposing to approve New Jersey's emission 
budgets. In the case of the attainment budgets, this approval will 
remain in effect only until the State submits and EPA finds adequate 
revised budgets meeting the commitments New Jersey has made with 
respect to submission of mobile source and shortfall measure budgets.

V. Are New Jersey's RFP Plans Consistent With EPA's Proposed 
Approval of New Jersey's 1-Hour Ozone Attainment Demonstration?

    On December 16, 1999 (64 FR 70380), EPA proposed approval of New 
Jersey's 1-hour ozone attainment demonstrations SIP. However, EPA 
proposed that New Jersey's attainment demonstrations needed additional 
emission reductions in order to attain the 1-hour ozone standard with 
sufficient surety. EPA also identified the need for several other 
enforceable commitments. On April 26, 2000, New Jersey submitted to EPA 
the necessary enforceable commitments, including the one to adopt 
additional measures by October 31, 2001 which would achieve the 
additional emission reductions EPA identified. New Jersey has been an 
active participant in the Ozone Transport Commission's process of 
developing regional control strategies that would achieve the necessary 
additional reductions to attain the 1-hour ozone standard. EPA proposes 
to approve the enforceable commitments that New Jersey submitted on 
April 26, 2000, and that New Jersey has met the conditions EPA 
identified in the December 16, 1999 Federal Register.

VI. What Are EPA's Conclusions?

    EPA has evaluated these submittals for consistency with the Act, 
applicable EPA regulations, and EPA policy. EPA proposes approval of 
New Jersey's: 1996 periodic emission inventory; 2002, 2005 and 2007 
ozone projection year emission inventories; 2002, 2005 and 2007 RFP 
Plans; transportation conformity budgets; contingency measures; and the 
enforceable commitments for the 1-hour ozone attainment demonstration.

VII. Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. This action 
merely approves State law as meeting federal requirements and imposes 
no additional requirements beyond those imposed by State law. 
Accordingly, the Administrator certifies that this rule will not have a 
significant

[[Page 47428]]

economic impact on a substantial number of small entities under the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule 
approves pre-existing requirements under State law and does not impose 
any additional enforceable duty beyond that required by State law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Public Law 104-4). This rule also does not have a 
substantial direct effect on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it 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. This rule also is 
not subject to Executive Order 13045 (62 FR 19885, April 23, 1997), 
because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. As required by section 3 
of Executive Order 12988 (61 FR 4729, February 7, 1996), in issuing 
this rule, EPA has taken the necessary steps to eliminate drafting 
errors and ambiguity, minimize potential litigation, and provide a 
clear legal standard for affected conduct. EPA has complied with 
Executive Order 12630 (53 FR 8859, March 15, 1988) by examining the 
takings implications of the rule in accordance with the ``Attorney 
General's Supplemental Guidelines for the Evaluation of Risk and 
Avoidance of Unanticipated Takings'' issued under the executive order. 
This rule does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et 
seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental relations, Oxides of Nitrogen, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

    Dated: August 31, 2001.
William J. Muszynski,
Acting Regional Administrator, Region 2.
[FR Doc. 01-22908 Filed 9-11-01; 8:45 am]
BILLING CODE 6560-50-P