### 55620 Federal Register / Vol. 57, No. 228 / Wednesday, November 25, 1992 / Proposed Rules

ENVIRONMENTAL PROTECTION
AGENCY

40 CFR Part 52 [FRL-4530-51

State Implementation Plans; Nitrogen Oxides Supplement tothe General Preamble for the Implementation of Title I ofthe Clean AirAct Amendments of 1990

AGENCY: Environmental Protection Agency (EPA). ACTION: Supplement to the general preamble for future proposed rulemakings.
SUMMARY: The General Preamble for implementation oftitle I ofthe Clean Air Act (CAA) Amendments which was published on April 16, 1992 (57FR 13498], does not address several new provisions ofthe amended CAA concerning emissions ofnitrogen oxides (NO.). Specifically, the April 16, 1992 General Preamble does not include a discussion of the new NO. provisions with respect to the following topics: reasonably available control technology (RACT), new source review (NSR), interaction of Title Iand IV, ozone transport regions, section 185B report, and section 182(f). The purpose ofthis NO. supplement to the General Preamble is to provide guidance on implementation ofthese NO, provisions.

As State plan submittals are received, EPA will publish Federal Register proposals inviting comment on whether the submittals should be approved. Each proposal inviting comment will state the address and closing date for submittal ofcomments to the appropriate EPA Regional Office.

FOR FURTHER INFORMATION CONTACT: Mr. Doug Grano, Strategies and Policy Section, Ozone/CO Programs Branch, MD-15, at (919) 541-3292, U.S.EPA Research Triangle Park, NC 27711.

SUPPLEMENTARY INFORMATION:

Note: In accordance with 1 CFR 5.9(c), this document is published in the Proposed Rules category OUTLINE 1 Introduction

1.1 General Preamble toTitle 1 1.2 Supplement to the General Preamble to

Title 1 1.3 New NOx Requirements 1.4 NOX for VOC Substitution 1.5 Section 185B Report 1.6 

### Section 182(f) Demonstration 1.7 Attainment ofthe Ozone NAAQS 2 Applicability and Due Dates for NSR and RACT Rules 2.1 Marginal Ozone Nonattainment Areas 2.2 Moderate. Serious, Severe and Extreme

Ozone Nonattainment Areas 2.3 Ozone Transport Region 2.4 Major Stationary Source 2.4.1 Ozone Nonattainment Areas 2.4.2 Ozone Transport Region 2.5 General Due Dates for NSR and RACT

Rules 2.5.1 NSR 2.5.2 RACT 2.5.3 Ozone Transport Region 2.6 Alternative Schedules for NON RACT

Rules 2.6.1 Section 110(k) Conditional Approval '2.6.2 Phase-in ofControls Beyond May 1995 2.7 Section 182(f) Demonstration 3 New Source Review

3.1 General NSR Requirements 3.2 NSR in Submarginal Areas 3.3 NSR in Marginal Areas 3.4 VOCand NON Emissions 3.5 Prevention ofSignificant Deterioration

(PSD) 3.6 NSR Offset Commitment 4 Reasonably Available Control Technology

4.1 Background 4.2 General Definition ofRACT
4.3 Relation to ACTs 4.4 Relation to Title IV 4.5 Relation to VOC RACT Policies 4.6 RACT for Certain Electric Utility Boilers 4.7 RACT for Other Utility Boilers and

Source Categories 4.8 Enforceability 5 Emissions Trading and Economic Incentive Programs 5.1 Emission Trading Policy Statement 5.2 Economic Incentive Programs 5.3 Geographic Limitations 5.4 Relation to Title IVRequired

Reductions 6 Section 182(f) Applicability Guidance

6.1 Background 6.2 Administrative Procedures 6.3 Ozone Transport Region Attainment/

Unclassified Areas 6.4 Relation to the SIP 7 Control Technology Information

7.1 Alternative ControlTechnique (ACT)

Documents 7.2 Section 185B Report 7.3 Section 108(h) Clearinghouse 8 NO. Reductions Needed to Attain the Ozone NAAQS 8.1 Attainment Demonstration 8.2 Advanced ControlTechnologies 8.3 Transported Pollutants 9 Other NO, Related Provisions in Title 1

9.1 Contingency Measures 9.2 Rule Effectiveness 10 Other Requirements

10.1 Executive Order 12291 10.2 Regulatory Flexibility Act
1.Introduction
1.1 General Preambleto TitleI
Title Iof the CAA Amendments of 1990 contains many new and revised requirements for areas that have not attained the national ambient air quality standards (NAAQS) for ozone, carbon monoxide (CO), particulate matter (PM10), sulfur dioxide (SO2), nitrogen dioxide (NO 2), and lead. The EPA developed a guidance document, called the General Preamble to title 1, to assist States regarding the interpretation of the various provisions oftitle 1, as amended. The General Preamble was published April 16, 1992 (57 FR 13498).

The General Preamble principally describes EPA's preliminary views on how EPA should interpret various provisions of title 1, primarily those concerning State implementation plan (SIP) revisions required for nonattainment areas. Although the General Preamble includes various
statements that States must take certain actions, these statements are guidance made pursuant to EPA's preliminary interpretations, and thus do not bind the States and the public as a matter oflaw. In the near future, EPA will (i) begin to take action, pursuant to notice-and-

- comment rulemaking, on SIP revisions submitted by the States, and (ii) issue rules, pursuant to notice-and-comment rulemaking, on various title Iprovisions. During the comment periods for these subsequent actions, members ofthe public will have the opportunity to comment on the relevant issues.

The EPA's interpretation ofthe title I provisions will provide abasis for subsequent approval ordisapproval of SIP submittals concerning NAAQS nonattainment areas. While this Preamble contains guidance on the interpretation ofthe majority ofthe title I SIPrequirements, unique circumstances or as yet unrecognized issues are likely to cause case-by-case exceptions to arise. The EPA intends to provide the public with a formal opportunity to comment on the provisions of this Preamble and other issues that may arise during subsequent rulemakings that take action on SIP revisions submitted by the States under title I and that set out EPA policy on various aspects oftitle I.

The General Preamble focuses primarily on.the SIP submissions required for nonattainment areas under part D of the amended CAA. It discusses specific issues concerning the proper interpretation ofthe title Irequirements for areas designated nonattainment (and, for some pollutants, classified) underpart D, title I, as well as the proper treatment ofnonattainment areas that fall outside ofthe classification schemes. The General Preamble discusses requirements for the SIP submissions required for ozone, CO, PM-10, SO2,NO2, and lead nonattainment areas. In addition, the Preamble discusses interpretation issues that have arisen concerning redesignations to attainment, some general SIP requirements, and EPA action on SIP submissions, as well as

### Federal Register / Vol. 57, No. 228 / Wednesday, November 25, 1992 / Proposed Rules

the various types ofpossible State failures to meet certain requirements and the consequent sanctions and Federal implementation plans {FIPs).

The General Preamble also sets forth EPA's interpretation ofthe various provisions in the amended Act which change NSR requirements fornew and modified sources in nonattainment

areas. The discussion includes EPA's intended interpretation of the minimum changes all States must make in their SIPs inarder to comply with the amended NSR requirements and the deadlines for making these changes.

The EPA encourages States to refer to the General Preamble as their SIPs are revised to meet the -CAArequirements.

1.2 Supplemen to the General Preambleto TitleI

The General Preamble published on April 16, 1992 does not address several

new provisions ofthe amended CAA concerning emissions ofoxides of nitrogen tNOx). Specifically, the General Preamble does not include a discussion ofthe new NOi provisions with respect to the following topics: RACT,NSR, interaction of titles Land IV, ozone transport regions, section 185B report, and section 182(f). The purpose ofthis supplement to the General Preamble to title I is to provide guidance on implementation ofthese NOx provisions.

1.3 NewNOx Requirements

Section 182(f)requires States to apply the same requirements to major stationary sources ofNOx as are applied
to major stationary sources ofvolatile organic compounds (VOC). As described in sections 3 and 4 of this document,the new NOx requirements

are RACT and NSR for major stationary

sources in certain ozone nonattainment

areas and throughout any ozone transport region.

The RACT requirements are in section 182(b)(2). TheNSR requirements are in section 182(a](2)(C) and in other provisions in section 182. The RACT and NSR requirements for major sources in attainment/unclassified portions of

ozone transport regions originate in section 184(b)(2).

1.4 NOxfor VDC Substitution

Under section 182(c)(2)(C), NOx Control, the Administrator must issue guidance concerning the conditions under which NOx control may be substituted for the VOC control required 'to meet the post-1996 VOC emissions reductions progress requirements or may be combined with VOC control in order to maximize the reduction in

ozone air pollution forpurposes of meeting those requirements. In order to 

### substitute NOxreductions for VOC, the State must demonstrate to EPA, consistent with theEPA guidance, that the NOK reduotions would result in reductions in ambient ozone concentrations at least equivalent to that whichwould result from the amount of VOC emission reductions otherwise required.

In accordance with guidance to be issued by EPA, a State may demonstrate
to the Administrator that the NOx substitution isjustified. The EPA will make a formal determination on any State request when the Administrator approves a plan or plan revision. The EPA's decision will be based on the documentation provided by the State and application of the EPA guidance. The EPA encourages the States to consult with the appropriate EPA Regional Office during the development of the demonstration and plan revision
to ensure thal any such substitution is approvable and that any required rules

can be adopted in a timely manner. If
NOx reductions are to be substituted for the required post-1996 VOC reductions, the NO1 ,emissionsmust meet the guidance required .undersection 182(c)(2)(C) and must meet the same creditability constraints dictated by sections 182(bl(1) (C) and (D) as apply to VOC emission reductions.
1.5 Section 185BReport

Under section 18513, the Administrator, in conjunction with the Nation Academy ofSciences, is to conduct astudy on the role ofozone precursors in tropospheric ozone formation.The study must examine the role ofNOx and VOC emission reductions, the extent to which NO 1 reductions may contribute (orbe counterproductive) to achieving attainment in different nonattainment
areas, the sensitivity ofozone to the control ofNOx, the availability and
extent ofcontrols for NOx, the role of biogenic VOC emissions, and the basic information required for air quality models.

A draft version ofthe section 185B report is to be made available for a 30- day public comment period, and a final report submitted to Congress. The EPA is to use all available information as well as develop additional information in conducting the study. The National Research ,Council announced the completion of the NAS portion ofthis report on December 13, 1991. The section 185B report will include an EPA report addressing the availability and
extent ofNOx controls. The section 185B report will also provide EPA perspectives on key ozone control strategy -issuesaddressed by the National Researoh Council, emphasizing the NOx issues as directed by section 185B.

1.6 Section 182(f)Demonstration

Section 182(f) outlines a process and conditions under which the NOx NSR and RACT requirements would not apply. These provisions are found in section 182(f), paragraphs (1) and J2). Section 6 of thissupplement to the General Preamble provides general information regarding the circumstances under which the NSRand RACT NOx requirements would not apply. The EPA is preparing a separate guideline document to further detail these provisions.
1.7 Attainmentofthe OzoneNAAQS

Incertain areas,a State may reqire NOx 1 contrwls more restrictive than those provided bythe NSR and RACT provisions under section 18Z(f). Section 182(b)(1)(A). for example, requires the State to submit a plan that provides for specific annualxeductions in emissions of VOC and NO.x "as necessary to attain the national primary ambient air quality standard for ozone by -theattainment date applicable." The requirement for specific annual reductions would not apply asto NOx reductions for those

areas for which the Administrator determines that additional reductions of
NOxwould not oontrinute to attainment (section 182(b[f1)(A)(il,.

2. Applicability and DueDates forNSR and RACT'Rules

2.1 MarginalOzoneNanattainmenf Areas

The section 162(f)NOx provisions for NSR apply to all ozone nonattainment

areas with a-classification ofmarginal

orhigher. TheRACT provisions do not apply to marginal ozone nonattainment

areas except in ozone transport regions.

Section 182(f), read in conjunction with the section 182(a)(2)(C) and other NSR related provisions in section 182, requires State NSR plans to apply to major stationary sources ofNOx, the

same requirements that govern major stationary sources of VOC emissions (as defined in sections 302 and 182 (c), (d), and [e)) in ozone nonattainment areas and in other areas located in ozone transport regions. Section 182(a)(2)(C) requires States to adopt and submit revised NSR regulations for all ozone nonattainment areas classified as marginal or above which incorporate (1) the new provisions of the amended CAA and (2) correct existing regulations to incorporate aHl NSR provisions in effect immediately Mefore the date of
enactment. The statutory NSR permit 

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requirements forozone nonattainment

areas are generally contained in the Act under section 172(c)(5), revised section 173, and in various provisions spread throughout newly enacted subpart 2 of part D. These are the minimum requirements that States must include in

an approvable SIP.

2.2 Moderate,Serious,Severe and Extreme Ozone VonottainmentAreas

The section 182(f) NOx provisions for NSR and RACT apply in all ozone nonattainment areas classified moderate or higher.

2.3 Ozone Transport Region

The section 182(f) NO) provisions for NSR and RACT apply throughout an

ozone transport region. That is, areas designated as attainment/unclassified,

as well as ozone nonattainment areas, must meet the NSR and RACT requirements for NOx.

. Section 176A allows the Administrator to establish a transport region covering multiple States whenever interstate transport of pollutants contributes significantly to violations ofNAAQS. Section 184(a) specifically created at enactment by operation oflaw an ozone transport region comprising the Slates of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont, and the Consolidated Metropolitan Statistical Area that includes the District of Columbia. Section 184(b) contains the specific requirements for States in,ozone transport regions. Ifother ozone transport regions are established under section 176A, States in these regions
must also adopt and implement these controls.

Section 184(b)(2) requires major

sources ofVOC in ozone transport regions to be subject to the same requirements that apply to major

sources in ozone areas classified as moderate (section 182(b)). Thus, the State must adopt rules to apply the NSR and RACT provisions for ozone to major VOC sources Statewide, unless a portion ofthe State has been excluded from the transport region under section 176(a)(2). Section 182(f) specifies that the subpart 2 provisions applicable to VOC major sources shall also apply to NOx major sources. Therefore, section 182(f) requires that the RACT and NSR provisions be applied to major NOx

sources throughout the transport region. 2.4 MajorStationarySource

2.4.1 Ozone Nonattainment Areas

Section 182(f).specifies that major stationary sources of NO, are to be defined according to the definitions in sections 302 and 182(c), (d), and (e). In

ozone nonattainment areas these definitions for NOx are the same as for VOC and, as such, vary from 10 to 100
tons per year according to the classification ofthe ozone nonattainment area. In addition, the

same offset ratios that apply to major VOC sources apply to major NOx

sources. For further information on these definitions, refer to the April 16, 1992 General Preamble.

2.4.2 Ozone Transport Regions

The EPA believes that the section 184(b)(2) provision providing that a major stationary source is one with a potential to emit at least 50 tons per year is specifically limited to VOC

sources because section 182(f) does not refer to the section 184 definition in describing the major stationary source definitions applicable for NOx purposes.

For portions ofan ozone transport region designated attainment/ unclassified, a major stationary NOx

source is defined by section 302(j) as 100
tons peryear. Therefore, for purposes of applying section 182(f) requirements to NOx sources in ozone attainment/ unclassified areas in the ozone transport region, as well as in marginal and moderate ozone nonattainment areas, a major stationary source forNOx willbe defined as any stationary source that emits orhas the potential to emit 100
tons per year or more ofNOx. ,

In the case ofserious, severe, or extreme ozone nonattainment areas within the transport region, the lower threshold definitions ofmajor stationary

source and other NSR requirements apply to NOx sources. Also, State rules
must ensure that NOx offsets (as with VOC offsets) will be consistent with any State orregional attainment strategies.
2.5 GeneralDueDates forNSR and RACTRules

2.5.1 NSR

The amended CAA requires States to adopt SIP revisions subject to EPA approval that incorporate the new preconstruction permitting requirements fornew ormodified sources that were discussed in the preceding sections. New rules for ozone nonattainment

areas must be submitted by November 15, 1992. The EPA has previously announced its interpretation that the

new NSR requirements did not go into effect with passage ofthe 1990 CAA Amendments, but rather become effective in accordance with the schedule for State adoption of SIP revisions. For further information, refer
to the April 16, 1992 General Preamble
to title I, appendix D.

2.5.2 RACT

Section 182(b)(2) requires submittal of RACT rules for major stationary sources ofVOC emissions (not covered by a preenactment control techniques guideline (CTG) document or a post-enactment CTG document) by November 15, 1992. There were no NOx CTGs issued before
enactment and EPA has not issued a CTG document for any NOx sources since enactment. As discussed in § 2.6.2, States, in their RACT rules, will be expected to require final installation of the actual NOx controls by May 31, 1995 from those sources for which installation by that date is practicable.

2.5.3 Ozone Transport Region
States within the Northeast ozone transport region established by section 184(a) must revise their SIPs to include the NRS and RACT measures by November 15, 1992. In the case ofa Slate subsequently included in a transport region under section 176A, the measures mustbe submitted within 9 months of the area's inclusion in a transport region.

Because States in a transport region

are generally subject to themoderate

area requirements, EPA believes that the schedule for implementing these RACT rules in the ozone transport region should be consistent with the requirements ofsection 182(b)(2), Therefore, States, in their RACT rules, will be expected to require final installation of the actual NOx controls by May 31, 1995 from those sources for which installation by that date is practicable.
2.6 AlternativeSchedules forNO RA CTRules
2.6.1 Section 110(k) Conditional Approval

Under section 110(k)(4), the Administrator may approve a plan revision based on a commitment by the State to adopt specific enforceable

measures by a specified date but not later than 1 year after the date ofEPA approval ofthe plan revision that incorporated that commitment. IfEPA finds that the State fails to meet the commitment within that period, the conditional approval would be converted into a disapproval. The time periods culminating in imposition of sanctions.and/or Federal implementation plans (FIPs), pursuant to

### Federal Register / Vol. 57, No. 228 / Wednesday, November 25, 1992 / Proposed Rules

sections 179 and 110(c), respectively, do
not begin to run until the conditional approval is converted to a disapproval.

Section 182(f) provides States an opportunity to demonstrate to EPA that

some or all ofthe new NO, requirements should not apply.The EPA has determined that, as a technical matter, photochemical grid modeling is the only reliable tool tojustify an areawide exemption from the NOx requirements (or relaxation of otherwise required NOK reductions). Therefore. States must include in such demonstrations photochemical grid modeling analyses that consider various control strategies with and without NOx reductions. For a variety ofozone nonattainment areas, however, photochemical grid modeling either has
not been utilized previously or, if utilized, has not adequately considered the effects ofNOx emissions reductions. The EPA recognizes that, while efforts
to conduct photochemical grid modeling

are underway in many States, the time needed to establish and implement a modeling protocol and to interpret the model results will, in a variety of cases, extend beyond the November 15, 1992 deadline for submission ofNOx rules.

Because Congress clearly intended to allow States the opportunity to show that they qualify to opt out of(or specifically tailor) the new NOx requirements and because modeling is
necessary to reliably determine whether
NOx emission reductions will contribute

or be counterproductive to achievement ofozone attainment, a State could, as a

means ofmeeting the November 15, 1992 deadline for submittal ofNO, RACT rules, submit under section 110(k)(4) a commitment to adopt the NOx RACT rules no later than one year after the date of EPA approval ofthe commitment. Decisions togrant conditional approval will be made by EPA on a case-by-case basis, and will be limited to instances where the State documents that (1) credible photochemical grid modeling isnot available ordid not consider the effects ofNOx reductions and (2) the State submits progress reports on the modeling showing the program is on schedule while the committal SIP is being reviewed by EPA.The committal SIP will be disapproved ifthe modeling activities are not well underway as of the date of EPA final action.The committal SIP must also require the State to adopt NOx RACT rules according to a specific schedule and within one year ofEPA approval. 2.6.2 Phase-in ofControls Beyond May 1995

As discussed above, the statute requires the implementation ofRACT as expeditiously as practicable but no later than May 31, 1995. Depending on the

source category, the number of potentially affected sources ranges from
tens to thousands. In the past, NOx controls for older sources were not required on a national scale and, thus, control equipment manufacturers have not supplied NOx controls at the rate needed to meet the May 31, 1995 deadline. It is possible, therefore, that the control equipment will not be available in all cases to meet the demand. As described in more detail below, ifa State demonstrates that installation ofall controls by May 31. 1995 is not practicable for all the affected sources, for example, due to equipment unavailability or system reliability, EPA would consider approving rules that define RACT as a phased program extending beyond that date for those sources for which the application ofthe controls by May 31. 1995.is impractical.

States,in their RACT rules, will be expected to require final installation of the actual NOx controls by May 31, 1995 from those sources for which installation by that date is practicable. For the remaining sources, the rule should define RACT itselfas a stage-bystage program of measures, ranging, perhaps, from preliminary set-up

measures in the first year or so to fully installed and operating control equipment as the end-stage. The rule
must also include clearly specified compliance milestones that represent the most expeditious schedule practicable toward final compliance. Under this approach, the portion ofthe schedule that can practically be implemented by May 31, 1995, must be implemented by that date and the other portions of the schedule leading toward (and including) final installation of controls must be implemented as soon
as those steps become practicable (and hence will supplement the initial RACT
at those later times). Further,given the need formany moderate nonattainment

areas to demonstrate attainment by 1996, States should make every effort to

ensure that the actual controls for any
source which causes or contributes to a moderate area's nonattainment status

are installed prior to the 1996 ozone

season. 2.7 Section182(f) Demonstration

The NSR and RACT provisions for NOx described above do not apply in those areas for which the Administrator 

### makes a determination, pursuant to section 192(f) (1)or (2). that all or some ofthe NOx provisions are not required. Refer to section 6 of this document for further information.
3.New Source Review
3.1 GeneralNSRRequirements

The NSR requirements are detailed in section IILG ofthe General Preamble to title I.The NSR provisions include, but

are not limited to,requirements that a
new or modified major stationary source will apply controls representing lowest achievable emission rate (LAER) and that the source will obtain an emission offset prior tooperation. Unless otherwise noted, the requirements detailed in section III.G of the Gerieral Preamble to title Ifor majorVOC

sources must also be applied for major NO, sources. 3.2 NSR inSubmarginal Areas
Nonclassified ozone areas consist of transitional, submarginal, and incomplete/no data areas. As described in section III.A.7 ofthe General Preamble to title I,all nonattainment
areas, including submarginal, transitional and incomplete/no data
areas, are required to adopt NSR programs meeting the requirements of section 173 as amended. However,the NOx requirements ofsection 182(f) do not apply in these areas forozone, except in the ozone transport region. This isbecause section 182(f) applies only to those NOx sources located in

areas subject to requirements of subpart 2ofpart Doftitle I.That group consists only of sources located in the ozone transport region per se:tion 184 and in

areas classified under Table 1of section 181(a), which does not include the submarginal and incomplete/no data

areas located outside the transport region.
3.3 NSR inMarginal Areas Marginal areas outside ofthe ozone transport region that expect to attain by November 1993might not realize a benefit from NOx NSR requirements due to the lag time between regulation adoption andimplementation within a source. Adoption ofNSR rules by November 1992 would provide a 1year period where new ormodified sources would be subject to therules. In contrast, even with an approved preconstruction permit, construction and startup of majornew sources or major modifications may take 1to 2years. or more, depending on the complexity and size ofthe project. Thus.any emission benefit from offsets or avoided emission 55623

### 55624 Federal Register li Vol 57,. No., 228f Wiednesday, November 25,, 1992,/f Proposed, Rides

increases might notbe realized until. well afterthe attainmentdeadline.

Asdescribed.in section.6 ofthis supplement to the General Preamble, if specific NOxreductions donct contribute to.attainment,States may request an exemption from theNOx. requirements under thesection 182{0(2)

excess reductions provision. However, if these areas obtain such an exemption based on the limited effect ofNOx reductions between 1992 and 1993, but: then donut attainby the endof1993, these areuas would then be subject to the nonattainment NSR requirements ofthe. CAA and wouldneed a pre-construction permitting program to meet teze requirements.

Alternatively, States could apply the ful'rahge'ofNSR requirements to prospective new.ormodified major

sources forwhich complete pe.nit applications are submitted after November 15, 1992. Because ofthe lead time involved, it is unlikely that many such,sources will have received permits and-made substantialinvestmentsin. LAER controls prior to the November 1993 marginal,area attainment date. At that time,,ifthe area has.achieved! 

### attainment-and,meets EPA redesignation criteria, the State could, request redesignation and, following approval,,the State permit program. could be revised to delete any superfluous requirements.
3.4 VOC and NOxEmissions
The EPA finds nothing in the statutory. language to.suggest thatemissions .oil VOC and,NOy are tobe added together forpartDNSR applicability purposes. That.is,VOCs and.NOx are to.be 'conisidered, separately for purposes; of determining whether a,source is subject to the permit requirements.
3.5 Prevention-ofSignificantDeterioration (PSDJ
Because NOx emissions also contribute to-ambient concentrations of nitrogen dioxide, forwhich a NAAQS has been set,,the.PSD provisions ofpart C apply to major stationary sources of NOxin all'areas,designated-attainment

orunclassifiable,for nitrogen dioxide. Further,,asdescribed.in section 3 ofthis. supplement,.NOx..NSR is required in. certain ozone nonattainment areas-and the ozone transportregion..In many areas,both thenonattainment NSR,and. thePSD requirements apply. Themajor stationary source thresholds defined.in; thePSDrules continue to.apply when determining PSI);applicability..Where a. source must meet both.theLAER and. Best Availabli ControllTbainoliogyr 

### {BACTYrequirements forNO%, the more stringent LAER,reqpirement satisfies the BACT requirement.

3.6 NSR Offset Commitment

Some sources have expressed,the

concern that the delay in adbpting RACT'rules for utility boilers and other stationary sources may hinder efforts by

new ormodifyingNOx sources to secure offsets. Their fear is that the uncertainty

over the eventual'RACT'limit may lead existing.NOx stationary sources-the easiest source of'offsetting credits--to retain for their ownuse otherwise surplus NOx emissions reductions.Thus, until'RACT levels are established, there may be a scarcity ofNOx offsets available to fund growth in these nonattainment areas. For this reason, EPA will.approve NSR SIP revisions which require NO1 offsets for new and' modifying sources in.ozone nonattainment areas, butwhich allow

sources to secure the offset at any time up until.the source commences

. operation. By delbying the offset requirement through the construction period, Stares will allow sources more time to secure offsets and,,thus,enabling

sources.to waitout any initial' uncertainties with the NOx emissions rediction marker.

Under existing EPA.policy,,sources mustidentiy and;secure; offsetting, emissions.reductions as.a,condition for receivinga new sourcereview preconstruction.permit See 40 CFR 51.165, appendix S.Most States have incorporated.this requirement into.their nonattainment preconstruction.review program byreqwring,the offset to be in, effect andsecured bya federally enforceable permit condition prior to.the issuance ofthepermit to.construct the modification.or new-source. However.,, the amended CAA is not so.restrictive. Section 173(a),states..that offsetting. emissions reductions mustbe "federally, enforceable before [the'NSRJ,permit. may be issued.' However, both.sections 173(a)(a) and'(c explicitly state that the. offsetting emissionsreductions only, need'to be in effect by the time a new or modified: source "bommences. operation." If'States wish to take adivantage ofthis statutory language: and. issue permits to sources on the basis of

an enforceable commitment to secure the.offset,by the.time the source is ready
to commence operations, EPA will not object..However,,EPA willfreqtiire that permits issued in this manner contain. federally enforceable provisions that. expressly prohibit the commencement of any actual,operations-untli such,time as the necessary offsetting;emissions' reductions have been,identified approved;,and'secured; with.appropriater permitrestrictions on,the source providing the restriction.

4.Reasonably Available Conttol Technology

4.1 Background

On.a nationwide basis,,stetionary/

source NO. emissions originate primarily from.fot types ofsources: Utilityboilers, gas turbines,.internal combustion,engines, andindustrdal; boilers. Approximately 85percent,of stationary source NOx.emissions.are accounted for by these aources,with: utility boilers contributing almost 0 percent ofthetotal statib'nary source emissions. Other source categories car be important in individual: areas.

Section 182(b)'refers to CTGs and CTGdocuments thathave been orwill: be dbveloped'to assistin the determination ofRAICT for several categories ofVOC sources. However, neither CTG' documents nor CTGB themselles have been issued for NOx. sourses'and;the QAA doesnot'reqtire 

## NINI,CTG6.

4.2. General'Definiion. ofRACT
TheE has.defined'lMCT'as the lowestemission limitation that a, , particular source Is.capable of meeting by the.application ofcontrol,technology thatis reasonably,available considering technological' and economic.feasibility (44 FR53762; September 1719791 Althougb EPA historically has: recommended source-categpry-wide presumptive RACTlimits,.and.plans to continue that' practice..deci'ions on. RACTmay be made on a caserb-case basis, considtering the.technological' and' economic circumstances of the individual!source,The'EPAI will"make date. from NOx RACT determinations availablb through.a clearinghouserequiredtby seation10(,hy.

RACT mayrequire'technology that has been applled'to s imilr, but not necessarily identicat source categories. Presumptive RAC'I limits are,basedion capabilities which are generalto an industry,but may notbe attainable at!
every facility.

An extensive research and development,program,should,notbe necessary before a.RACT control; technology can;be applied,to,a,source. This does not.,however,.preclude reqpir ng a short.termn evaluation program.to permitthe.application ofa, given technology,to a particular source,
4.3 Relaton toACT$"

Section 1'83(c)"requires the. Administratorto Wbsue'alternalvje. control technique-documents ('A.s)'.by November199' that,identify,alternative

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controls forall categories of stationary

sources ofVOCs and NO, that emit

more than 25 tons per year.Through the ACT documents, EPA will provide information on the full range ofNOx control technologies forcategories of stationary sources that emit orhave the potential to emit 25 tons per year or

more ofNOx.

Similar to the CTGs issued for VOC

source categories, the ACTs will contain extensive background information on control technologies, costs, availability. etc., that can be used by States in making RACT determinations. However, unlike the CTGs, the ACTs will not established a presumptive RACT.

4.4 Relationto TitleIV

Coal-fired utility boilers located in nonattainment areas must meet the NOx RACT requirements ofsection 182(fn, as well as any other applicable requirements oftitle I ofthe Act, and the NON requirements ofsection 407 under the acid rain program in title IV ofthe Act. The NOx RACT requirements for certain electric utility boilers are discussed in §4.6 of this document. As required under section407, EPA will promulgate regulations to limit emissions from coal-fired boilers. Utilities should plan to meet the most stringent requirements applicable under the Act.
4.5 Relationto VOCRACTPolicies

Over the last 15 years, EPA has provided guidance on what constitutes RACT for stationary sources. During these years considerable information and definitions have beenprovided by EPA concerning RACT. While this guidance has been largely directed at application within the VOC program, much of the guidance is also applicable to RACT for stationary sources ofNOx.

4.6 RACT forCertainElectricUtility Boilers

The EPA has determined that, in the majority ofcases, RACT will result in an overall level ofcontrol equivalent to the following maximum allowable emission rates (pounds ofNOx per million Btu) for utility boilers:

(a) 0.45 fortangentially fired, coal burning;

(b) 0.50 for dry bottom wall fired (other than cell burner), coal burning;

(c)0.20 for tangentially fired, gas/oil burning, and

(d) 0.30 for wall fired, gas/oil burning; Compliance with these limits may be determined on a continuous basis through the use ofa 30 day rolling average emission rate, calculated each operating day as the average of all hourly data for the proceeding 30 

### operating days. As described below, EPA believes that the above emission rates are appropriate forapplication to groups ofboils on an areawide average, Btu-weighted basis.

The EPA expects States,to theextent practicable, to demonstrate that the variety ofemissions controls adopted

are consistent with the most effective level ofcombustion modification reasonably available for its individual affected sources. However, EPA encourages States to structure their RACT requirements to inherently .incorporate an emissions averaging concept (i.e., installing more stringent controls on some units in exchange for lesser control on others). Therefore, in the interest ofsimplifying State RACT determinations and enhancing the ability ofStates to adopt market-based trading systems for NOK, the State may allow individual owners/operators in thenonattainment area (or, alternatively, Statewide within an ozone transport region)to have emission limits which result in greater or lesser emission reductions so long as the areawide average emission rates described above are met on a Btuweighted basis.

Ingeneral, EPA considers RACT for utilities to be the most effective level of combustion modification reasonably available to an individual unit.This implies low NOx burners, in some cases with overfire air andin other instances without overfire air; flue gas recirculation; and conceivably some situations with no control at all.The actual NOx emission reduction that can be achieved on a specific boiler depends

on a number ofsite-specific factors including,but not limited to, furnace dimensions and operating characteristics, fuel type and characteristics, design and condition of burner controls, design and condition of stream control systems, and fan capacity. The combustion modification technology must be custom-designed for each boilerapplication. The ease of retrofitting varies substantially from one boiler to another. Combustion modifications may also include: Low

excess air,biased burner firing,burners out ofservice, reduce airpreheat, and steam/water injection.
4.7 RACT forOtherUtilityBoilersand Source Categories

For source categories and utility boilers other than theelectric utility boilers specified above, EPA is not recommending a specific RACT level in this document. Ingeneral, EPA expects that NOx RACT for these other sources willbe set at levels that are comparable to the RACTguidance specified above forcertain electric utility boilers. Comparability shall be determined on the basis ofseveral factors including, for example, cost, cost-effectiveness, and emission reductions.
4.8 Enforceability

The SIP measures mustbe converted into a legally-enforceable vehicle (e.g.. a regulation). The regulations or other

measures must meet EPA's criteria regarding the enforceability ofSIPs and SIP revisions. Guidance on enforceability requirements has been provided to Regional Offices in various memoranda (see Bauman/Biondi and Potter/Adams/Blake memoranda listed in Section III.D.6. of the General Preamble to title I).

In cases where States adopt an areawide averaging rule for a group of
sources, the emission limits,emission quantification methods, and monitoring and recordkeeping requirements applicable to each owner/operator in the group must be clearly specified. In addition, the rule must specify appropriate penalties for violation ofthe various requirements. 5. Emissions Trading and Economic
Incentive Programs

5.1 Emission TradingPolicyStatement

Since 1976 EPA has developed several emissions trading programs to allow industry and States more flexibility in meeting statutory requirements of the Clean AirAct. The bubble, offset, netting and banking programs, discussed in EPA's Emissions Trading Policy Statement (ETPS) (51 FR 43812, December 4, 1986) each entail the creation, storage and/or use ofemission reduction credits. Only emission reductions which are surplus, quantifiable, federally, enforceable, and permanent may be used in an emissions trade.
5.2 EconomicIncentivePrograms

The EPA encourages the development of economic incentive programs (EIPs) that increase flexibility and stimulate the use ofmore cost-effective control strategies while providing incentives to develop and implement innovative emission reduction technology and strategies beyond those specifically mandated through standards and regulations. The use of economic incentives is explicitly allowed for in the general SIPrequirements (section 110(a)(2)(A)), the general provisions for nonattainment SIPs (section 172(c)(6)). and the system ofregulations for controlling emissions from consumer and commercial products (section 183(e)(4)). Beyond these general 

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authorities, the use orconsideration of

an economic incentive program is mandated in certain cases. Section 182(g) of the CAA calls for-EPA to 

### publish economic incentive rules for mandatory EIPs by November 15, 1992.

It is expected that theEIP rules (which will'also serve as EPA's guidance for discretionary programs) will be broadly applicable to any type ofEIP, and will. provide flexibility toStates in.the development ofmarket-based, innovative programs for stationary, area, and mobile sources. The EIP rules will require EI~s submitted by States.to EPA forapproval as part ofaSIP to contain design features that willensure that (1) emissions reductions credited'to the program willbe quantifiable andi consistent withSIP attainment and" reasonable future progress demonstrations,,as applicable; (2) 

### any credited,emissions.reductions will'be surplus to,reductions required by, and. credited to, other implementation.plan. prcvisions to avoid double counting of reductions: (43.proams are'federally enforceable and.credited reductions will be permanent withinthe timeframe' specified within the program; and (4):no interference with other requirements of the CAA will occur.The proposed rules will,identify key program provisions which must generally be included to
ensure thatthe above reqirements.will. be met..However,,itis not expected that the rules wilrlimif flexibility and innovation beyond those constraints that are necessary.to meet these requirements.
5.3 Geographic Limitations
Offset programs.should be subject to the geographic limitations contained',in section 173(c)(,I),fornew or modified' major stationary sources, Section 173(c)(1) stipulates that emissions. offsets generally must be obtained by the same source orother existing

sources in the same nonattainment area. However, the statutory provision.does, allow offsets to be obtained in another nonattainment area undertwo specific conditions.

First,the other nonattainment area musthave an equal.or higher nonattainment classification than the nonattainment area in which the source would construct. In applying this provision the other nonattainment area musthave an. equal or higher nonattainment classification,forthe

same pollutant. For example, a proposed major new source ofNO.- seeking to locate in, a nonattainment area classified
as Serious for ozone could possibly obtain emission.offsets in another ozone nonattainment area ifsuch area.were *designated Serious,.Severe orExtreme forozone.

The second condition-is. that.the emissions from.such other nonattainment area mustcontribute to a violation ofthe NAAQS in the nonattainment area In which the source. would construct. The showing that such. contribution from sources in another nonettainment area.exists should be ,acknowledged and verified bythe permitting authority.
5.4

..Relbtionto TitleIVRequired Reductions

Section 407 oftitleIV ofthe Clean,Air Act requires the EPA to establish annual average NOx emission.limitsfor.certain. electric:utility,boilers.and allows the averaging ofemissions between affected biolers in-order to meet the emission limits as.a group. NO,,.emission reductions at these.utilities which result. from the title Iprogram,may-.be used forpurposes ofmeeting the title IV NO, requiremIents. Further, as- discussed below, NO,, emission,reductions resulting from thetitle IV programn may, be considered.forpurposes,ofmeeting certain title L requirements,.under appropriate conditions.

To receive title I. SIP credit foruse under an EIP or forpurposes ofbanking, bubbling,,or netting, emission reductionsfrom the-titleIV program,must,be surplus:to-the title Irequirements,, enforceable, quantifiable,,and, permanent. Only those title LV emission. reductions that exceed any applicable title Ireqprementa (,e;,,RACT, wouldi be surplus. Tobe enforceable for titlel'l purposes,.the title IV emission, reductions,mustbe partof an,approved; SIP orfederally enforceable operating, permit.To be quantifiable for title I purposes, emission reductions mustbe measurable or-predictable on a timeframe appropriate for thepurposes oftitle I generally one houror twentyfour hourlevels on a typical high ozone. day. Emission reductions at.title IV boilers which-are part ofan approved title IV averaging group are creditable for purposes of banking,bubbling or netting,under title Ionly to the extent thatthe emissions reductions at any boiler, subgroup ofboilers or the entire group ofboilers are surplus to their individual and combined title Iemission limitations, enforceable, quantifiable and permanent and takeplace in a single attainment or nonattainment area.

.For purposes ofestablisilt emission offset credits, additional requirementsapply. Section 173(c)(2) statesthat "Emission reductions otherwise required by thisAct shall notbe creditable as emissions reductions forpurposes ef any such offset.reqi~rement."'Thin condition,prevents emission reductions otherwise required by the Act from being credited forpurposes ofsatisfying-. the part DNSR.offset requirement. For example, reductions required tomeet MACT or'acid rain,limitations pursuant, to statutory requirements are not -creditable for NSR emissions offsets, The statutory language does allow. reductions that are achieved indirectly pursuant to arequirement ofthe CAA (incidental,emission reductions); as well asother reductions which exceed' requirements of-the CAA, to be credited' ifthey meet'the other criteria foroffsets. Thus,reductions,achieved thatexceed the requirements ofboth title IV and'any applicable title It requirements,are creditable for purposes.of offsets. Emission reductions attitle IV boilers which are part of an approved'title IV' averaging group are creditable'for purposes ofoffsets under title Ionly to the extent that'the emissions reductions at any boiler,.subgroup ofboilers orthe entire group ofboi]lrs-are enforceable, quantifiable and permanent are surplus to theirindividbal' andcombined titfe 1: and title IV emission,limitations;,and: take'plhce in a single attafnment area (within an ozone transportregionj or a single nonattainment area. Such emissions.redbctions may be considered.

as creditable reductions ifall other conditions fora creditable offsetare met 6. Section182(f) Applicability Guidance
6.1- Background

Section,182(f)(1 ) states-that- the,new NOk,requirements shell'mot apply,where any ofthefollbwing test& is mett (I}'In;any.area,the net'air quality benefits are greater without"NOYx, reductions from-the sources;concemed'

(2) In a nontransport region, additional NO* reductions,would-,not contribute to ozone attainment in the nonattainment area;, or

(3),In,a transport region,additional NOx reductions would not produce net

ozone benefits in.the transport region.

Inaddition, section 182(P(2) states that the application ofthe new NOx requirements may be limited to the extentnecessary to avoid excessreductions ofNOx.
6.2 AdministrativeProcedures

A State may demonstrate ta the Administrator that thenew NOx. requirements shouldnot apply, The State's demonstration isnot required'to be a SIPrevision,itself. However, fts demonstration.sheutd accompany a SIP revision that addresses,the NO, requirements ofsection,182(. The EPA%

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will accept or reject the demonstration

as part oftherulemaking process on the accompanying SIPrevision.

The EPA's decision willbe based on the demonstration provided by the State and application oftheguidance contained in the relevant EPA document. The EPA encourages the States to consult with the appropriate EPA Regional Office during the development ofthe documentation and. plan revision. This is necessary to

ensure that the documentation provided by the State is likely tobe approved and that any required rules can be adopted in a timely manner.

Section 182(f)(3) alsoprovides that a person (including a State) maypetition the Administrator for a NOx exemption at any time after thefinal section 185B report is submitted to Congress. The petition maybe made with respect to any nonattainment area oranyportion ofan ozone transport region. TheEPA is required to grant or deny a petition within 6months. The EPA's decision will bebased on the documentation provided by the petitioner, theState's recommendation, and application ofthe EPA guidance. The EPA does not intend to delegate this authority to the States.

As noted above, the petitions may be submitted to EPA after the final section 185B report is sent to Congress. The Section 185B report mustbe prepared by EPA, in conjunction with theNational Academy ofSciences, and was mandated by Congress in order to improve understanding ofmany aspects ofthe roles ofNOx and VOC in ozone formation. Section 182(f) requires EPA, in its review ofa petition, to "consider the study tequired under section 185B." Thus, the petition opportunity is linked 

### to consideration ofa portion ofthe section 185B study. EPA is preparing a separate guidance document to specifically describe acceptable methods to demonstrate cases where an exemption from the NO) requirements is appropriate (exemption guidance]. The exemption guidance includes consideration ofthe National Academy ofSciences portion ofthe section 185B study. Further, informulating the exemption guidance, EPA will address relevant issues that are being examined in the section 185B study, in particular, the extent to which NOx reductions may contribute (or be counterproductive) to achievement ofattainment in different

ozone nonattainment areas.

While the amended CAA provides a person the opportunity topetition EPA under section 182(f)(3) after EPA submits the section 185Breport to Congress, the statute also mandated the submittal ofthe report toCongress by February 15, 1992. In this sequence of events, Congress clearly intended that petitions could be submitted to EPA well before theNovember 15, 1992 statutory deadline for adoption ofthe NOx rules by States. In fact, the report was not provided to Congress within the intended timeframe and, therefore, major stationary sources could be subject to the NOx rules without an opportunity to demonstrate through the petition process that the rules should not apply. EPA does not believe that Congress intended this result. In any event, section 182(f)(3) indicates that the Administrator may consider and act on petitions after submission ofthe section 185B report to Congress. That language prescribes a specific time after which theAdministrator mustmake the required petition determinations. However, nothing in that section expressly prohibits the Administrator from exercising his discretion and considering a petition prior to submission of the report to Congress, so long as the Agency considers, in its review ofthe petition, the relevant issues examined by the section 185B study.Therefore, EPA has decided to act, within 6 months ofreceipt, on any petition under section 182(f)(3) that is received after the issuance of EPA's exemption guidance. In light of these unforeseen circumstances, EPA believes this solution best implements what Congress originally intended.

Since there may be multiple petitions for a given area and the SIP is primarily

a State responsibility, a copy ofany petition (otherthan from the State itself) should be provided to the State at the

same time it is submitted to the Adm'inistrator. The EPA will provide the State a 3-month period to provide a recommendation to EPA regarding the

area. This 3-month period runs concurrent with the required 6-month period noted above. A copy ofthe petition should also be submitted to the relevant EPA Regional Office and EPA's Office ofAir Quality Planning and Standards.

The EPA encourages any petitioner to consult with the State air quality agency and the appropriate EPA Regional Office during the development ofa section 182(f) demonstration.This is necessary to ensure that the documentation provided (1) meets EPA guidance, (2) does not conflict with similar analyses by the State, and (3) is likely to be accepted by the State and EPA. The EPA's decision would be based on the demonstration provided by the petitioner, the State's recommendation, and application of EPA guidance.

IfEPA grants a petition, some or all of these title INOx requirements would no longer apply. However, States remain free to impose NOx restrictions on other bases. For example, States may choose in certain circumstances to reduce NO, emissions forpurposes ofozone maintenance planning, visibility protection, PM-10 control, acid deposition control or other environmental protection. If,however, the EPA finds that NOx reductions are counterproductive to the extent that, for example, they delay ozone attainment, the State would have tojustify how the SIP continues to be adequate for achieving ozone attainment given its
NOxreductions. That is because the
statute does not permit EPA to approve
a SIP revision that would "interfere with" meeting any requirement of the Act (section 110t1).

6.3 Ozone Transport Region Attainment/Unclassified Areas

The Act does not clearly state whether or not portions ofa transport region that are attainment/unclassified

can opt-out of the NOxrequirements. The section 182(f)(1)(B) exemption provision specifically applies only to nonattainment areas within a transport region. The section 182(f)(1) net air quality benefit test is available to any area; however, it is a high hurdle and this is especially true in rural areas. Thus, while a severely polluted area might be able to avoid NOx reductions, the Act could be interpreted to require
NOx reductions in the surrounding attainment area.

An alternative reading of the Act can be found under section 184(b)(2). This provision states that the attainment/ unclassified portions ofthe transport region must meet "the requirements which would be applicable to major stationary sources if the area were classified as a moderate nonattainment area." Thus, the Act could be interpreted to provide the same section 182(f)(1)(B) exemption process forthese attainment/unclassified areas, since they would be treated as moderate nonattainment.

It is unlikely that Congress intended

more stringent requirements for the attainment/unclassified portions ofan

ozone transport region than would apply
to the more severely polluted portions. Therefore, EPA interprets the section 182{f)(t)(B) provision to apply to any portion ofan ozone transport region.

6.4 Relationto theSIP

Where a petition for an exemption (section 182[f)[11)or excess reductions determination (section 1824f9121) is granted by EPA prior to adoption and submittal ofthe State's rules, the State 

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may simply choose not to submit the rules. If a petition is granted after submittal ofthe rules, but prior tO EPA approval, the State may choose to withdraw the rules andpreclude firther EPA action. In a case where a petition is granted ("exempted area") after EPA approves ofthe NO, rules, the SIP would need to be modified to rescind the NOx rules. In an exempted area, the NOx RACT and/or NSR rulesmay be rescinded at any time through a SIP revision, provided such rescission would not interfere with attainment or reasonable further progress (section 110[11).

Following application ofa photochemical grid model that is required for serious and above areas to support the attainment demonstrations due by November 1994, a State must select and adopt a control strategy that provides for attainment as expeditiously

as practicable, but no later than the date prescribed in section 181. This decision
must be addressed by a State whether

or not an area was exempted from the November 1992 submittal ofNO,- RACT and/or NSR rules and may result in revision ofthe previously adopted rules. In some instances the NOx RACT and NSR requirements already adopted may need to be supplemented with additional or more advanced NOx controls in order for the area to attain the NAAQS.

In other cases, an area initially exempted may choose, based on the

new photochemical grid modeling results, to adopt certain NOx reduction rules in order to attain and/or meet reasonable further progress requirements through NOx substitution. The area would be removed from "exempt" status since NO_ reductions

were subsequently found to be beneficial in their ozone attainment plan. Consequently, the area would have to adopt the NOx RACT and NSR rules except to the extent modeling shows that the.controls beyond those chosen

are "excess reductions." Credit for NOx substitution would be granted only ifin a.ccordance with the EPA guidance. In any event, these changes must be submitted as a SIP revision and must provide for attainment as expeditiously

as practicable and meet reasonable further progress requirements.

Alternatively, for an area that adopted the NOx RACT and NSR rules

as required by section 182 (i.e., not exempt), a State may choose to revise

some or all of those rules to require less NOx stationary source controls. This action would be based on the application ofa photochemical grid model showing that'the subject NO controls result inexcess emission reductions, as determined using the section 182(f) tests set forth at the beginning ofthis section. The revisions must be submitted as a SIPrevision and the SIPmust demonstrate attainment as expeditiously as practicable.

7. Control Technology Information

7.1 Alternative ControlTechnique (ACT Dcuments

Section 183(c) requires the Administrator to issue ACT documents by November 1993 that identify alternative controls for all categories of stationary sources ofVOCs and NOx that emit more ihan 25 tons per year. Through the ACT documents, EPA will provide information on the full range of NOx control technologies for categories of stationary sources that emit or have the potential to emit 25 tons per year or
more ofNOx'. While the ACT documents will not contain presumptive RACT emission limits, they will contain extensive background information on control technologies, costs, etc., that can be used by States in making RACT determinations. The EPA will issue ACT documents for specific source categories

as they are completed.

7.2 Section 185BReport

The report required by section 185B will include information on the availability and extent ofcontrols for NOx.

7.3 Section 108[h) Clearinghouse

Under section 173(d), the States must provide that the control technology information from permits issued under section 173 be promptly submitted to EPA's RACT/BACT/LAER clearinghouse, to other States, and to the general public.
8. NOx Reductions Needed to Attain the Ozone NAAQS

8.1 AttainmentDemonstration

As described in Sections III.A.3 and III.A.4 ofthe General Preamble to title I. States must provide a SIP for moderate and above classified ozone nonattainment areas that includes specific annual reductions in VOC and NOx emissions as necessary to attain the NAAQS. This requirement supplements the RACT and NSR requirements described above. The requirement for specific annual reductions would not apply as to NOx reductions for those areas for which the Administrator determines'that additional reductions ofNOx would not contribute to attainment (section 182(b)(1)(A)(i)). 8.2 Advanced ControlTechnologies

In certain areas, States may require NOK controls based on advanced control technologies; i.e.. control technologies that reduce emissions beyond RACT or title IV requirements. For example, advanced controls would be required as part ofa serious ozone nonattainment area's 1994 SIP ifmodeling found such controls to be necessary to provide for expeditious attainment of the ozone NAAQS. In order to avoid orminimize potentially incremental or repetitive control requirements, States and regulated sources should consider in advance the implications of all relevant requirements.

8.3 Transported Pollutants

In developing their control strategies, States need to consider the transport of pollutants into downwind areas and resultant impacts on the ability ofsuch

areas to attain the ozone NAAQS as required. For further discussion ofthis issue, refer to the General Preamble published April 16, 1992.

9. Other NOx Related Provisions in Title I
9.1 Contingency Measures
The contingency measures for serious and above ozone nonattainment areas

are required by section 182(c)(9) to be adequate to correct any shortfall in meeting an emission reduction milestone (e.g.. the 15 percent reduction required by late 1996). If the strategy for an area relies on NOx reductions in addition to VOC reductions, the State should also submit NOx contingency measures. These measures are described in section IILA.2.c. ofthe General Preamble to title

9.2 RuleEffectiveness

The same criteria apply for NO, as for VOC. Refer to section III.A.3.(a)(4) of the General Preamble to title I.
10. OtherRequirements

10.1 Executive Order12291

Under Executive Order 12291, EPA is required tojudge whether an action is "major" and, therefore, subject to the requirement of a regulatory impact analysis. The Agency has determined that this action is exempt from classification as "major" because it is a compilation of interpretive rule and general statements ofpolicy as defined in the Administrative Procedure Act (APA).

10.2 RegulatoryFlexi6ility Act
Whenever the Agency is required by section 553 of the APA or any other law

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to publish general notice andproposed rulemaking for any proposed rule, the Agency shall propose and make available forpublic comment an initial regulatory flexibility analysis.The regulatory flexibility requirements do not apply foF the NOx Supplement to the General Preamble because itis not a regulatory action in the context ofthe APA or the Regulatory Flexibility Act.

Dated: October 27, 1992. 

### William K.Reilly, Administrotor. [FRDoc. 92-27548 Filed 11-24-92; 8:45 am]
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