# Presentation: 106501

## Transportation Conformity Rule AmendmentsNet Conference

- June 23, 2004
- Hosted by the Federal Highway Administration
- Office of Natural and Human Environment

## Welcome

**James Shrouds, Director, FHWA Office of Natural and Human Environment**

## Presenter

- Gary Jensen, FHWA Office of Natural and Human Environment

## Format

- Please place your phone on mute.
- Please type any questions into the chat box.

## Agenda

- Welcome
- Background on Amendments
- 8-Hour Ozone
- Questions & Answers
- Break
- PM-2.5
- Other Changes
- Questions & Answers
- Wrap-up and Next Steps

## Objectives of Final Rule

- To provide conformity rules for the new national ambient air quality standards (NAAQS)
- To incorporate existing EPA and DOT guidance that is consistent with a March 2, 1999 court decision
- To streamline and improve conformity implementation

## Rulemaking Schedule

- June 2004 final rule
- addresses all issues raised in June 30, 2003 conformity proposal on court decision  (68 FR 38974)
- addresses all but two issues raised in November 5, 2003 conformity proposal on new standards            (68 FR 62690)
- Consistent with EPA’s broader 8-hour ozone and PM2.5 implementation strategies

## Issues Not Addressed in Final Rule

- Consideration of PM2.5 precursors in regional emissions analyses
- EPA will address conformity requirements for precursors after consideration in broader PM2.5 implementation strategy
- PM2.5 and PM10 hot-spot analysis requirements
- A supplemental proposal (SNPRM) will be issued this summer to request further comment on consideration of localized emissions impacts (“hot-spots”) of individual transportation projects
- Both of these issues will be addressed in a separate final rule to be completed before PM2.5 designations are effective

## New 8-hour ozone standard

- Areas designated for the 8-hour ozone standard: April 15, 2004
- Effective date of designation: June 15, 2004
- Except for areas with an Early Action Compact (EAC), where effective date is deferred
- Conformity applies:  June 15, 2005
- Except for areas with an EAC

## The 1-hour ozone standard

- Will be revoked one year after the effective date of designation:  June 15, 2005
- Conformity for the 1-hour standard no longer applies at that point, except for 1-hour maintenance areas that are 8-hour EACs
- Coordinated with date conformity for the 8-hour standard applies
- To ensure conformity not required for both ozone standards at same time

## Conformity under the 1-hour ozone standard

- Final rule does not change 1-hour conformity requirements
- During the one-year conformity grace period for the 8-hour standard:
- conformity for the 1-hour standard required for new plan, TIP, and project approvals
- existing adequate and approved SIP motor vehicle emissions budgets (“budgets”) for the 1-hour standard must continue to be used

## EAC Areas and Conformity

- 8-hour conformity will not apply in EAC areas, unless an EAC milestone is missed and nonattainment designation no longer deferred
- 1-hour conformity applies in 1-hour maintenance areas with EACs until one year after effective date of 8-hour designation, which will be either when:
- they attain the 8-hour standard, or
- they miss an EAC milestone (and become an 8-hour nonattainment area)

## New PM2.5 standards

- EPA intends to designate areas by Nov/Dec 2004
- Effective date Jan/Feb 2005
- Conformity applies 1 year after effective date: Jan/Feb 2006
- Broader PM2.5 implementation strategy rule under development

## New Nonattainment Areas

- One-year grace period for newly designated nonattainment areas
- After one year:
- conforming plan and TIP must be in place
- subject to conformity frequency requirements

## When is the first conformity determination required?

- First conformity determination for the new standards must be completed:
- for metropolitan and donut areas, by the end of the one-year grace period or a plan/TIP conformity lapse will occur
- for isolated rural areas, by the first FHWA/FTA project phase approval  (no lapse will occur in these areas, however, since these areas do not have plans and TIPs)
- conformity determinations can be completed during the grace period

## General Changes to Interim Emissions Tests

- In general, the interim emissions tests are used before adequate or approved SIP motor vehicle emissions budgets are in place for a given pollutant or precursor
- interim emissions tests = baseline year and build/no-build tests
- The final rule:
- changes 1990 to 2002 for baseline year test
- Consistent with EPA establishing 2002 as the baseline year for new SIPs
- changes build<no-build test to be build_<_no-build for certain areas, and waives the build_<_no-build test altogether for certain areas when projects and planning assumptions are the same in the build and no-build scenarios
- Provides flexibility to areas with fewer Clean Air Act (CAA) requirements
- Helps these areas when build and no-build scenarios are exactly the same

## Tests for 8-hour Areas without 1-hour SIPs

- Final rule is generally consistent with requirements in 1-hour ozone areas without SIP budgets
- These marginal and subpart 1 (“basic”) areas can choose between:
- build_<_no-build, OR
- no-greater-than-2002 test

## Tests for 8-hour Areas without 1-hour SIPs

- These moderate and above areas complete both the:
- build<no-build AND
- less-than-2002 tests
- _Note:_  CAA requires that transportation activities in moderate and above ozone areas must also “contribute to annual emission reductions....”
- For all 8-hour areas using interim emissions tests, a regional emissions analysis is done for:
- volatile organic compounds (VOCs), and
- nitrogen oxides (NOx), unless EPA has issued a NOx waiver under CAA section 182(f) for the 8-hour ozone standard (1-hour NOx waivers are not applicable for the 8-hour standard)

## 8-hour Areas with 1-hour SIPs

- Final rule requires that existing 1-hour SIP budgets be used for 8-hour conformity before new 8-hour SIPs are in, unless another test is deemed more appropriate for meeting CAA requirements
- Using adequate and approved 1-hour SIP budgets will ensure that these areas continue current air quality progress and attain the 8-hour standard on time
- Final rule is described through four boundary scenarios:
- areas where the 8-hour boundary = 1-hour boundary
- areas where the 8-hour boundary < 1-hour boundary
- areas where the 8-hour boundary > 1-hour boundary
- areas where portions of 8-hour and 1-hour boundaries overlap

## 8-hour Areas with 1-Hour Budgets

- 4 potential boundary scenarios

## Scenario 1 -- 93.109(e)(2)(i)

- Area uses 1-hour budgets as-is

## Scenario 2 -- 93.109(e)(2)(ii)

- Area uses budgets from 1-hour SIP for either:
- the 8-hour area,
- if the appropriate portions of the budgets can be identified
*	**	**	**	**OR*
- the entire 1-hour area,
- and any emissions reductions needed to pass the test must come from within the 8-hour area

## Scenario 3 -- 93.109(e)(2)(iii)

- Area uses budgets from 1-hour SIP for the portion they cover, *AND*
- the interim emissions test(s) for either:
- the entire 8-hour area
-     (yolk + white), *OR*
- for the portion not covered by 1-hour budgets (just the white), *OR*
- for the portion of the 8-hour area in a state (only for cases with separate 1-hour SIP budgets for each state)

## Scenario 4 -- 93.109(e)(2)(iv)

- if possible:
- use 1-hour budgets for the portion that has them, if the appropriate portions can be identified, *AND*
- the interim emissions test(s)
- for the remainder (white crescent moon), *OR*
- for the whole 8-hour area, *OR*
- for the portion of the 8-hour area in a state (only for cases with separate 1-hour SIP budgets for each state)
- if not possible:
- use the interim emissions test(s), for the portion of the 8-hour area where 1-hour budgets are not identified

## Before Areas Have 8-hour SIPsGeneral Principles

- Use budget test (93.118), with the 1-hour budgets for 8-hour conformity
- where they exist, and
- where the boundary scenarios allow it
- because in most cases, budgets ensure air quality progress is maintained (especially if they are currently being used for 1-hour conformity determinations)

## Before Areas Have 8-hour SIPsGeneral Principles

- Use the interim emissions test(s) (93.119)
- where part of an 8-hour area isn’t covered by 1-hour budgets
- where boundary changes make it impossible to determine what portion of the 1-hour budgets apply
- when it is determined through the consultation process that such tests better meet the CAA requirements (limited cases expected) (93.118(e)(2)(v))

## When may a 1-hour SIP budget not be appropriate?

- Primary criterion is whether a 1-hour SIP budget meets CAA requirements to not worsen air quality or delay timely attainment of the 8-hour standard
- A 1-hour budget cannot be considered inappropriate simply because:
- it is difficult to pass for 8-hour conformity purposes
- it is based on older planning assumptions or emissions models
- Interagency consultation process must be used to determine appropriate test

## TCM Timely Implementation

- Need to show timely implementation of TCMs in all SIPs
- Even TCMs in approved 1-hour SIPs after revocation of 1-hour standard
- In other words, 8-hour conformity determinations will have to demonstrate timely implementation of TCMS in approved 1-hour SIPs

## Once Areas Have 8-hour or PM2.5 SIPs

- Once adequate or approved SIP budgets are available for new standards, they must be used (93.118)
- existing interim emissions tests and/or 1-hour budgets (where applicable) for the pollutant or precursor addressed by the new SIP budget
- 					...*no longer apply*

## Questions

## BREAK

- Transportation Conformity Rule AmendmentsNet Conference

## Tests for PM2.5 Areas

- Final rule is generally consistent with requirements in PM10 areas without SIP budgets
- Final rule allows all PM2.5 areas to choose either the:
- build_<_no-build, OR
- no-greater-than-2002 test
- A regional emissions analysis is done for direct PM2.5 emissions and any applicable PM2.5 precursors

## Direct PM2.5 in Regional Analyses(93.102(b)(1))

- Direct PM2.5 emissions from tailpipe, brake and tire wear:
- Conformity analyses would include these emissions in all PM2.5 areas
- All PM2.5 regional emissions analyses address direct PM2.5 including:
- tailpipe and brake and tire wear emissions
- MOBILE6.2 and EMFAC2002(CA only) generate PM2.5 emissions factors

## Road Dust in PM2.5 Regional Analyses(93.102(b)(3) and 93.119(f))

- Before PM2.5 emissions budgets are adequate or approved road dust is not included in regional analyses unless:
- the EPA Regional Administrator or state air agency determines that road dust is a significant contributor to the PM2.5 problem
- Road dust is include in regional analyses if adequate or approved SIP budgets include road dust emissions

## Calculating Road Dust Emissions

- Road dust emissions can be calculated using methods described in:
- AP-42, Fifth Edition, Volume 1, Chapter 13, Miscellaneous Sources (US EPA OAQPS; http//www.epa.gov/ttn/chief/ap42/ch13/)
- Alternatively, areas may develop local calculation methods, as determined through interagency consultation process
- By end of 2004, guidance will be issued on adjusting road dust emissions for SIPs and conformity to reflect true impact on regional air quality

## Construction Dust in PM2.5 Regional Analyses (93.122(f))

- Fugitive dust from construction of transportation projects is only included in regional emissions analyses if:
- the SIP identifies these emissions as significant contributors to the regional PM2.5 problem
- These emissions would be included in the area’s direct PM2.5 SIP budgets, where significant

## Calculating Construction Dust Emissions

- Road dust emissions can be calculated using methods described in:
- AP-42, Fifth Edition, Volume 1, Chapter 13, Miscellaneous Sources (US EPA OAQPS; http//www.epa.gov/ttn/chief/ap42/ch13/)
- Alternatively, areas may develop local calculation methods, as determined through consultation process
- By end of 2004, guidance will be issued on adjusting dust emissions in SIPs and conformity to reflect true impact on regional air quality

## PM2.5 Precursors in Regional Analyses

- EPA is not finalizing any requirements for addressing PM2.5 precursors in regional emissions analyses at this time
- Requirements for PM2.5 precursors will be finalized before PM2.5 designations are effective
- However, June 2004 final rule provides sufficient information for potential areas to begin preparing for PM2.5 conformity, if desired

## PM2.5 Precursors in Regional Analyses

- The November 2003 NPRM identified:
- NOx
- VOCs
- sulfur oxides (SOx); and
- ammonia (NH3)
- 	as potential transportation-related PM2.5 precursors

## PM2.5 Precursors in Regional Analyses

- NPRM included two options for PM2.5 precursors in regional analyses before SIP budgets are adequate or approved
- Option1:
- Include NOx and VOCs unless the EPA RA or state air agency finds that one or both precursors is _not_ a significant contributor
- Only include SOx or NH3 if the EPA RA or state air agency finds that one or both is a significant contributor

## PM2.5 Precursors in Regional Analyses

- Option 2:
- Only include NOx, VOCs, SOx or NH3 if the EPA RA or state air agency finds that one or more is a significant contributor
- The NPRM also proposed that after a SIP emissions budget for a precursor was found adequate or approved a regional emissions analysis would be required for that precursor

## Project-level Requirements in PM2.5 Areas

- EPA proposed several options in the November 5, 2003 NPRM for PM2.5 and PM10 hot-spot requirements
- Supplemental proposal to be published: Summer 2004 to propose additional options for:
- new PM2.5 hot-spot requirements
- changes to existing PM10 requirements
- Continued

## Project-level Requirements in PM2.5 Areas

- Rule to be finalized before PM2.5 designations are effective
- Current PM10 hot-spot analyses requirements continue to apply as under current practice

## What projects can proceed during a conformity lapse?

- All exempt projects:
- exempt projects (e.g., safety projects) (93.126)
- projects exempt from regional analyses (93.127)
- traffic signal synchronization (93.128)
- Transportation control measures (TCMs) in an approved SIP

## What projects can proceed during a conformity lapse?

- Any FHWA/FTA project phase approved prior to the lapse
- Result of March 1999 court decision
- Any regionally significant non-federal project that had received all approvals prior to the lapse
- Result of March 1999 court decision
- Non-regionally significant non-federal projects

## Relevant Guidance Documents

- Final rule is consistent with and does not supersede existing federal guidance:
- FHWA/FTA January 2, 2002 memo (general guidance on what projects can proceed during a lapse)
- FTA April 9, 2003 memo (guidance for transit projects and lapses)
- FHWA/FTA May 20, 2003 memo (clarification of conformity requirements for projects requiring environmental impact statements)
- EPA May 14, 1999 memo (includes guidance for projects that require only NEPA approval, but no subsequent federal funding approvals)

## Adequacy Review of Budgets

- March 1999 court decision requires that SIP budgets must be deemed adequate before used for conformity
- Final rule incorporates EPA’s May 14, 1999 guidance on adequacy reviews
- No change from current practice
- Current rule describes adequacy criteria
- Not affected by March 1999 court decision or final rule

## TCM Conformity Trigger

- 93.104(e) amended to eliminate TCM triggers
- Conformity determinations no longer required within 18-months of SIP approvals that add, delete, or change TCMs

## Budget Approval Conformity Trigger

- 93.104(e) revised to streamline budget approval trigger
- Conformity required within 18-months of the effective date of EPA’s approval of a SIP that creates or revises a budget, unless the budget was already used pursuant to an adequacy finding or previous approval

## Latest Planning Assumptions (93.110)

- Final rule allows MPOs to use the latest planning assumptions _*in force at the time the conformity analysis begins*_
- Prior rule:  assumptions in force when DOT’s final conformity determination _is completed_
- This change makes implementation of latest planning assumptions similar to latest emissions model

## Grace Period for Compliance with Plan Content and Network Modeling Requirements

- Final rule provides a two-year grace period to new areas that are serious and above ozone and CO with an urbanized population greater than 200,000
- Bump-up - reclassification to serious or worse
- Population grows in serious or worse areas to greater than 200,000
- Newly designated areas, or portions of areas

## Questions

## Forthcoming Guidance

- Multi-jurisdictional nonattainment and maintenance areas
- Transportation conformity in Indian Country
- Conformity SIPs
- Adjusting PM-2.5 dust emissions from AP-42

## Wrap-up

- FHWA Regional Workshops
- July 21, 2004		Washington, DC
- July 22, 2004		Charlotte, NC
- July 27, 2004		Dallas, TX
- August 3, 2004	Los Angeles, CA
- EPA Workshops
- Next Steps

## For More Information

- FHWA website:  _[www.fhwa.dot.gov/environment/conform.htm](http://www.fhwa.dot.gov/environment/conform.htm)_
- EPA website:  _[www.epa.gov/otaq/traq](http://www.epa.gov/otaq/traq)_                               (at site, click on “conformity”)
- Gary Jensen, 202-366-2048 or _[gary.jensen@fhwa.dot.gov](mailto:gary.jensen@fhwa.dot.gov)_
- Cecilia Ho, 202-366-9862 or _[cecilia.ho@fhwa.dot.](mailto:cecilia.ho@fhwa.dot.gov)__[gov](mailto:cecilia.ho@fhwa.dot.gov)_