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## p y ~`"!~'/1 Q ~~Tqt ppp#0GS UNITED STATES ENVIRONMENTAL PROTECTION AGENCY RESEARCH TRIANGLE PARK, NC 27711 

## AUG 1 5 2006 MEMORANDUM OFFICE OF AIRQUALITY PLANNING ANDSTANDARDS SUBJECT: Guidance for State Implementation Plan (SIP) Submissions to Meet Current

Outstanding Obligations Under Section 110(a)(2)(D)(i) forthe 8-Hour Ozone and PMZ .5 National Ambient Air Quality Standards FROM : WilliamT. Harnett, Director (N1A 

# TAvr~ Air Quality Policy Division, OAQPS (C539-O1) TO : Regional Air Division Director, Regions I-X The purpose of this memorandum is to provide guidance concerning the State implementation plan (SIP) submissions States should make to meet their currently outstanding obligations under section 110(a)(2)(D)(i) . The Environmental Protection Agency (EPA) has previously indicated through rulemaking what States affected by the Clean Air Interstate Rule (CAIR) must do concerning emissions that significantly contribute to nonattainment or interfere with maintenance ofthe 8- hour ozone or fine particulates (PMZ.5) National Ambient Air Quality Standard (NAAQS) in another State. This guidance, therefore, addresses what States that are not affected by the CAIR should consider in meeting the "significant contribution" and "interfere with maintenance" requirements of section 110(a)(2)(D)(i), and what all States (inside or outside the CAIR region) should consider with respect to making submissions to meet the "prevention of significant deterioration" and "protect visibility" requirements ofsection 110(a)(2)(D)(i) . Because the CAIR region differs for purposes of 8-hour ozone and PM2.5, some States may bewithin the CAIR region for purposes of one NAAQS, but not the other, and should make section 110(a)(2)(D)(i) SIP submissions that account for this distinction. On July 18, 1997, EPApromulgated NAAQSfor ozone and forfine particulate matter. Section 110(a)(1) of the Clean AirAct requires States to submit new SIPs to provide forthe implementation, maintenance, and enforcement ofnew or revised NAAQS

. Section 110(a)(2) lists the elements that the new SIPsubmissions must contain. Among other things, SIPs for new or revised NAAQS must contain adequate provisions to address interstate transport of air pollution, pursuant to section 110(a)(2)(D)(i) .

Internet Address (URL) " http://www .epa .gov Recycled/Recyclable . Printed with Vegetable Oil Based Inks on Recycled Paper (Minimum25% . Postconsumer)Section 110(a)(1) explicitly provides that States must adopt and submit to the EPA

Administrator new

SIPsubmissions within 3 years after the prornulgation of a new or revised NAAQS, meeting the provisions of 110(a)(2), as applicable. Therefore, States should have submitted SIPs to EPAfor the 8-hour ozone NAAQS and the PM2 .5 NAAQS by no laterthan July 2000

. However, at this time.no State has submitted a new SIP . We recognize that litigation over both the 8-hour ozone NAAQSandthe PM2 .5 NAAQScreated substantial uncertaintyas to how to proceed. Moreover, in thecase ofPMZ.5, additional timewas needed for creation of a monitoring network, collection of at least three years of data, and analysis ofthose data. OnApril 25, 2005, EPApublished an action in the Federal Register making a finding that States had failed to make statutorily required SIPsubmissions for the 8-hour ozone and PM2 .5 NAAQS. The EPAexplicitly limited this finding of failure to submit to the requirements of section 110(a)(2)(D)(i) pertaining to interstate transport. The finding of failure to submit action started a 24-month clock for EPAto issue a final Federal Implementation Plan (FIP) to meet the requirements of section 110(a)(2)(D)(i), for both the 8-hour ozone and PM2 .5 standards, unless EPAinstead approves a State SIP submission to meet those requirements in advance of that date. The finding of failure to submit SIN addressing section 110(a)(2)(D)(i) is the first action required under a Consent Decree between EPAand plaintiffs who sued theAgency for failure to take action to require the submission ofnew SIPs for the 8-hour ozone and PMZ.S NAAQS, or to issue FINin lieu thereof. The EPAhas also committed in the Consent Decree to take later actions to determine whether States have submitted the remaining SIP elements required by section 110(a)(1) and (2) for the 8-hour ozone and PM2.5 NAAQS by no later than December 15, 2007, for ozone, and by no later than October 5, 2008, for PM2.5. The Agency intends to provide States with additional information concerning the remaining section 110(a)(1) and (2) SIP elements, in separate regulations or guidance documents. We emphasize that this document is merely guidance and that States or EPAmay elect to followor deviate fromthis guidance, as appropriate . The ultimate determination ofwhether a given SIP submission by a State meets the statutory requirements of section 110(a)(2)(D)(i) will be accomplished through case by case notice and comment rulemaking in which the facts and circumstances of each State submission will be evaluated by EPA . We ask that the EPA Regional Offices work with their respective States in the development oftheir SIPsubmissions. If you have questions concerning this guidance, please contact Mr . Larry D . Wallace (919) 541-0906. Please ensure_that the appropriate air agency officials for the States in your Region are made aware of this guidance.Attachment

cc: Margo Oge, OTAQ Steve Page, OAQPS Brian McLean, OAP Scott Mathias, AQPD Kevin McLean, OGC Barbara Driscoll, AQPD Larry Wallace, AQPD Kimber Scavo, AQPD Geoffrey Wilcox, OGC Norm Possiel, AQADGuidance for State Implementation Plan Submissions to Meet Current Outstanding Obligations Under Section 110(a)(2)(D)(i) for the 8-Hour Ozone and PMZ,5

National AmbientAir Quality Standards 1 . Introduction : This document provides guidance to States concerning State Implementation Plan (SIP) submissions that States must make pursuant to section 110(a)(2)(D)(i) . The Environmental Protection Agency (EPA) emphasizes that this guidance document merely provides suggestions andthat States or EPAmay elect to followor deviate fromthis guidance, as appropriate . The ultimate determination ofwhether a given SIPsubmission by a Statemeets the requirements of section 110(a)(2)(D)(i) will be accomplished by area specific notice and comment rulemaking in which-the facts and circumstances ofeach State submission will be evaluated by EPA . Sections 110(a)(1) and (2) of the Clean Air Act (CAA), require States to submit SIPs that implement, maintain, and enforce a new or revised national ambient airquality standard (NAAQS) within 3 years following the promulgation ofthe standard. InJuly 1997, EPAissued the 8-hour ozone and PMZ.5 NAAQS . States were thus required to submit SIPs that satisfy the applicable CAArequirements under section 110(a)(1) and (2) for these NAAQS byJuly 2000 . Among the SIPelements identified in section 110(a)(2) is the requirement to address interstate transport ofpollutants pursuant to section 110(a)(2)(D)(i) . The_ EPAhas determined that section 110(a)(2)(D)(i) is among the SIP requirements with which States must comply in accordance with the schedule of section 110(a)(1) .1 On April 25, 2005, EPAnotified States of their failure to make therequired SIP submission addressing interstate transport ofpollutants relatedto ozone and PMZ,5 in downwind States.2Pursuant to section 110(c), EPA's April 25, 2005 finding of failure to submit started a 24-month clock for EPAto issue afinal Federal Implementation Plan (FIP) to address the requirements of section 110(a)(2)(D)(i), unless a State makes the required submission and EPA approves such submission within that 24-month period. The 24-month FTPclock began on

'See, ."Rule to Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule) ; Revisions to Acid Rain Program ; Revisions to the NO, SIP Call ; Final Rule," 70FR 25,162 at 25,263-69 (May 12, 2005) . 2See, "Finding ofFailure to Submit Section 110 State Implementation Plans for Interstate Transport for the National Ambient Air Quality Standards for 8-Hour Ozone and PM 2.5," 70 FR 21,147 (April 25, 2005) . 1May 25, 2005, the effective date ofthe finding offailure to submit, and will end on May 25,

2007. The EPA's finding of failure to submit STPs that address section 110(a)(2)(D)(i) is the first action required under a Consent Decree.3 Under the Consent Decree, EPAis also obligated to make later determinations as to whether States have made the required SIP submissions to meet the remaining applicable requirements of section 110(a)(1) and (2) . The EPAis obligated to make these later determinations by December 15, 2007, for SIPsubmissions for the 8-hour ozone NAAQS, and by October 5, 2008, forSIP submissions pertaining to the PM2 .5 NAAQS. The EPAbelieves that Section 110(a)(2)(D)(i) provides an important tool for attainment andmaintenance ofthe NAAQS by addressing the problem of interstate transport of air pollutants. This provision applies to each pollutant covered by a NAAQSand to all areas of each State regardless ofthe attainment or nonattainment designation ofsuch areas. Section 110(a)(2)(D)(i) specifically provides that each State's SIP must contain adequate provisions to prohibit air pollutant emissions from within the State that significantly contribute to nonattainment of the,NAAQS, or that interfere with maintenance of the NAAQS, in any other State. In addition, this section requires that each State's SIP must contain adequate provisions to prohibit emissions of air pollutants within the State that interfere with measures required to prevent significant deterioration of airqualityor to protect visibility in any other State. The EPAintends to provide additional information to States concerning the remaining section 110(a)(1) and (2) SIPelements, either in regulations implementing the 8-hour ozone or PM2 .5 NAAQS, or in later guidance documents. 2 . What is required undersection 110(a)(2)(D)(i) : Section 110(a)(1) requires States to make a SIP submission for a new or revised NAAQS within 3 years ofpromulgation of such new or revised NAAQS. Section 110(a)(2) lists the elements those SIPs must contain. For example, this section lists certain SIPinfrastructure elements related to the new or revised standards such as requirements for provisions pertaining to modeling, monitoring, and emissions inventories that are designed to assure attainment and maintenance ofthe standards. An important SIPelement

'The Consent Decree is between Environmental Defense and American Lung Association, as plaintiffs, and EPA, as defendant, signed March 10, 2005. The Consent Decree resolved the case entitled "Environmental Defense, et al . v. Johnson," No. 1 :05CV00493(D

.D.C.) . EPA gave notice of, and took comment on, the proposed consent decree in accordance with CAAsection 113(g) . See, 70 FR 15,623 (March 28, 2005) . 2listed in section 110(a)(2) is the requirementthat States address emissions that impact other

States through interstate transport. The "good neighbor" provisions in section 110(a)(2)(D)(i) require each State to submit a SIP that prohibits emissions that adversely affect another State in the ways contemplated in the statute. Section 110(a)(2)(D)(i) contains four distinct requirements related to the impacts of interstate transport. Each Statemust submit a SIPwhich contains adequate provisions:

prohibiting . .. any source or other type of emissions activitywithin the State from emitting any air pollutant in amounts which will - (I) contribute significantly to nonattainment in, or interfere with maintenance by, any other Statewith respect to any . . . national primary or secondary air quality standard, or (II) interfere with measures required to be included in the applicable implementation plan for any other State . . . . to prevent significant deterioration of air quality or to protect visibility. The EPA's April 25, 2005 finding of failure to submit reflected EPA's determination that States had not yet made SIP submissions for the 8-hour ozone and PM2.5 NAAQS necessary to meet the requirements of section 110(a)(2)(D)(i)

. The precise nature and contents of such a submission is not stipulated in the statute. EPA believes that the contents of the SIP submission required by section 110(a)(2)(D)(i) may vary depending upon the facts and circumstances related to the specific NAAQS. In particular, the data and analytical tools available at the time the State develops and submits a SIP for a new or revised NAAQS necessarily affects the content ofthe required submission. In some instances, this submission may be more detailed and substantive, as when existing data and analyses already provide the requisite information. In other instances, the submission may be more preliminary and simplified, as when there is currently insufficient information to support a determination that there are interstate transport impacts, or when other later regulatory actions are prerequisites to making such a determination. The sections below

provide guidance concerning the types ofSIP submissions that EPA believes would be appropriate in response to the April 25, 2005, finding of failure to submit.3

. States subject to the Clean Air Interstate Rule: In March of2005, EPApromulgated the Clean Air Interstate Rule (CAIR) .4 Based upon the requirements ofsection 110(a)(2)(D)(i), EPA determined in the CAIR that NO,, emissions from sources in 25 States and the District ofColumbia contribute significantly to nonattainment and interfere with maintenance of the 8-hour ozone standard in other downwind States. The EPA also determined that S02and NO,, emissions from sources in 23 States andtheDistrict of Columbia contribute significantlyto nonattainment and interfere with maintenance ofthe PM 2.5 standards in other downwind States. Subsequently, EPAdetermined that two additional States contribute to nonattainment and interfere with maintenance ofthe PMZ.5 NAAQS .5 (See Attachment Alisting the States subject to the CAIR) . In the CAIR, EPAconcluded that the States will meet theirsection 110(a)(2)(D)(i) obligations to address the "significant contribution" and "interference with maintenance" requirements by complyingwith the CAIR requirements. Consequently, States within the CAIR region need not submit a separate SIP revision to satisfy the section 110(a)(2)(D)(i) requirements provided that they submit a SIPrevision to satisfy CAIR . Pursuant to section 110(a)(1), those States notwithin the CAIR region must also make a submission with respect to those two requirements. Also in accordance with the statute, all States, both inside and outside the CAIR region must make a submission with respect to the "prevention ofsignificant deterioration" and "protect visibility" requirements of section 110(a)(2)(D)(i) . It should be noted that because the CAIR region differs for purposes of ozone and PMZ.5, some States may be inside the CAIR region for purposes ofone NAAQS, but outside the CAIRregion for the other, and should make section 1 .10(a)(2)(D)(i) SIP submissions that account for this distinction. Accordingly, EPAhas structured this guidance to address the different types of considerations that States mayneed to evaluate in making their respective submissions. 4 . SIPSubmissions fromStates pertaining to the "significant contribution" and "interfere with maintenance" requirements of section 110(a)(2)(D)(i) : States not covered by the CAIR must make a section~ 110(a)(2)(D)(i) SIPsubmission addressing significant contribution to nonattainment and interference with maintenance ofthe 8-hour ozone and PMZ.5 NAAQS in any other States. 'See. supra note 1 . 5See, Inclusion of Delaware and New Jersey in Clean Air Interstate Rule, 71 FR 25288 (April 28, 2006) .The EPAanticipates, basedupon existing information developed in connection with the

CAIR, that emissions from sources in States not covered by the CAIR do not contribute significantly to nonattainment or interfere with maintenance of the 8-hour ozone or PMZ.5 NAAQS in any other State. Unless a State excluded fromthe CAIRhas contrary information or analysis, EPAbelieves that such State should be able to make arelatively simple SIP submission verifying that the State does not significantlycontribute to nonattainment or interfere with maintenance ofthe 8-hour ozone or PM2 .5 in another State. EPAbelieves that anegative declaration fromeach of the non-CAIR States, which certifies that the State in question does not significantly contribute to nonattainment or interfere with maintenance ofthe NAAQS in another State, should be adequate to satisfy the requirements ofsection 110(a)(2)(D)(i) . States should submit a technical demonstration to support a negative declaration. EPA believes that this demonstration should contain the information which the State deems appropriate to support its claimthat it does not significantly contribute to nonattainment or interfere with maintenance of the standards in another State. Suitable information might include, but is not be limited to, information concerning emissions in the State, meteorological conditions in the State, the distance to the nearest nonattainment area in another State, reliance on modeling conducted by EPAin determining that such State should not be included within the ambit of the CAIR, or such other information as the State considers probative on the issue of significant contribution and interference with maintenance. The EPA believes that it would be appropriate for States to make this assessment using considerations comparable to those used by EPA in evaluating significant contribution in the CAIR, e.g_, assessing the impacts of emissions on nearby nonattainment areas as ofthe year 2010, and evaluating mitigation strategies based upon emissions reductions achievable through highly cost effective controls. In addition, States that are not subject to the CAIR, but are subject to the NO . SIP Call, may wish to indicate that SIPs submitted to meet the NO . SIP Call should be sufficient to satisfy the section 110(a)(2)(D)(i) obligation for the 8-hour ozone NAAQS. EPA initially addressed interstate transport for ozone in the NO,, SIP Call rule published in 1998.6 The NO,, SIP Call is substantially reducing ozone transport, and is helping downwind areas meet the 8-hour ozone standards. The EPA believes that states outside the CAIR region that are meeting the NOx SIP Call should not significantly be contributing to nonattainment or interferring with maintenance in any down wind state. The EPAwill assist each State to evaluate the available information and to develop a sufficient SIPsubmission and demonstration to meet this element of section 110(a)(2)(D)(i)

.

6"Finding of Significant Contribution and Rulemaking for Certain States in the Ozone Transport Assessment Group Region for the Purposes of Reducing Regional Transport of Ozone Rule, (63 FR 57356, October 27, 1998) . 5EPAwill take action on the SIP submissions made by States through notice and comment

rulemaking, thereby assuring that the requirements are met. 5 . SIPSubmissions from States pertaining to the "prevention of significant deterioration" requirement of section 110(a)(2)(D)(i) : Section 110(a)(2)(D)(i)(II) also contains a requirement for all States to submit S1Ps that contain adequate provisions prohibiting " .. . . any source or other type of emission activity within the State fromemitting any air pollutant in amounts whichwill - interfere with measures required to be included in the applicable implementation plan forany other State . .. . to prevent significant deterioration of air quality . . ." Under EPAregulations, each SIP must include a preconstruction reviewprogram for major sources to satisfy therequirements ofsection 110(a)(2)(D)(i) of the Act. 40 C.F.R . § 51 .165(b)(1) . In nonattainment areas, thepreconstruction review program is known as Nonattainment New

Source Review(NNSR) and in attainment areas, preconstruction reviewis part ofthe Prevention of Significant Deterioration (PSD) program . These programs require preconstruction permits to protect the air qualitywithin each state and also serve to prohibit construction of new

major sources and major modifications at existing major sources from contributing to nonattainment in adjacent states. The PSDpermitting program is also the primary measure that each SIP must include to prevent significant deterioration of airquality in accordance with Title I, Part Cand section 110(a)(2)(D)(i)(II) oftheAct. See. 40 CFR § 51 .166. Section 110(a)(2)(D)(i)(II) requires that SIPs contain adequate provisions prohibitingsources or emissions activitywithin each state "from emitting anyair pollutant in amounts whichwill -- . . . interfere with measures required to be included in the applicable implementation plan for any other Stateunder part Cof this subchapter to prevent significant deteriorationof air quality . . . ." 42 U .S .C. § 7410(a)(2)(D)(i)(11)

. Because all areas are currentlysubject to some formofpreconstruction permitting program forozone and PM2,5, it is not necessary, at this time, for States to make aSIP submission containing rule changes or modeling demonstrations in order to address section 110(a)(2)(D)(i)(II) for the 8-hour ozone and PM2 .5 NAAQS. EPAhas established or will establish schedules for SIPsubmissions that incorporate revisions to EPA's preconstruction permitting regulations that are specific to the 8-hour ozone and PM2,5 NAAQS. Areas- will need to revise their SIN consistent with such schedules. Each area ofthe country is currently subject to an equivalent PSDor NNSRpermitting program for the 8-hour ozone standard and an interimPSDor NNSR permitting program for PM2,5. If aparticular state SIP lacks an approved PSDprogram, the PSDpermitting requirements must be implemented in that state or local area through a federal PSDprogram that can be administered by the state or local permitting authority under a delegation agreement with EPA . Where a state lacks an approved NNSRprogram, the state may issue NNSRpermitspursuant to an EPAregulation at 40 CFRPart 51, Appendix S. If such a state lacks authority to

issue permits consistent with appendix S, EPAis thepermitting authority. In April 2004 and November 2005, EPA promulgated regulations in two phases that addressed (among other topics) the implementation of the PSD and NNSR programs under the 8-hour ozone NAAQS. See 69 FR 23951 (Apr. 30,2004) ; 70 Fed. Reg. 71612 (Nov. 29, 2005) . The first phase of these rules requires implementation of NNSR in accordancewith an area's 8- hour ozone classification after revocation ofthe 1-hour ozone NAAQS. See 69 FRat 23985. The EPArevoked the 1-hour ozone NAAQS onJune 15, 2005. Thus, new and modified major sources of volatile organic compound and NO,, are currently subject to NNSRbased on the designation and classification ofthe area inwhich they are located under the 8-hour ozone NAAQS. In an 8-hour ozone nonattainment area that currently has no approved nonattainment plan or otherwise lacks authority to implement nonattainment NSRfor the 8-hour ozone NAAQS through a SIP-approved permitting program, permits for new and modified major stationary sources in such areas must be consistent with the requirements in appendix S of40 CFR . Part 51 . IEPA determined that states did not need to submit any revisions oftheir existing PSD programs to implement of the 8-hour ozone NAAQS, but the Agency simultaneously promulgated new rules to establish NOx as a precursor for ozone under the PSD program . See 68 FR

. 32802, 32843-44 (Jun. 2, 2003) ; 70FRat 71679 . The EPA established June 15, 2007 as the deadline for states to provide SIP submissions that incorporate the requirements ofthe phase II ozone implementation rule into their PSD and NNSR programs. See 70FR at 71683. For PM2.5, EPA has recommended that states employ an interimPM2.5 programthat involves implementing existing PSDand NNSR programs for PMIO as a surrogate for the PM2 .5 requirements until the necessary tools are in place for states to adopt PSDand NNSR programs for PM2,5. See, Memorandum from John Seitz, EPAOAQPS, "InterimImplementation for the New Source Review

Requirements for PM2.5," (October 23, 1997) ; MemorandumfromSteve Page, EPA OAQPS, "Implementation of New Source Review

Requirements in PM2

.5 Nonattainment Areas." (April 5, 2005) . In November 2005, EPA has proposed regulations that establish the minimum requirements for PSDand NNSRprograms for PM2.5, 70 FR 65984, 66033 (Nov. 1, 2005), but the Agency has not promulgated final regulations on this subject . States are not required to submit PSD and NNSR programSIPs for PM2.5 until EPA completes these regulations and finalizes the submission schedule, which we have proposed to be April 5, 2008. Until the submission date is established in EPA's final PMZ,5 implementation rule for NSR, states may continue to implement interimprograms based on PMIo and need not provide PSDor NNSRprogramsubmissions containing rule changes for PM2.5. The air quality demonstrations required for issuance ofa PSD and NNSRpermit must be made for all areas that are potentially impacted by the emissions froma proposed source or modification requiring a permit . As a result, the implementation ofa PSD and NNSRpermitting programin each state serves to prevent significant deterioration in neighboring states and thus largely satisfies the requirements of section 110(a)(2)(D)(i)(II) ofthe CAA . A PSD permit may not be issued unless the new or modified source demonstrates that emissions fromtheconstruction or operation of the facilitywill not cause or contribute to air pollution in any area

that exceeds of any NAAQS or any maximum allowable increase (known as the PSDincrement)

. 42 U .S.C. § 7475(a)(3) ; 40 CFR § 51 .166(k) . ANNSR permit may not be issued unless the new or modified source shows it has obtained sufficient emissions reductions to offset increases in emissions ofthe pollutants for which an area is in nonattainment, consistent with reasonable further program

toward attainment . These offsetting reductions. could also help serve to prevent significant deterioration in any instance where the emissions of a nonattainment pollutant froma source in a nonattainment area would impact a nearby attainment area for that pollutant. In addition to PSDpermitting program, a SIP may include additional measures as necessary to prevent air pollution in excess ofthe PSDincrement that defines significant deterioration for each area. 40 CFR § 51 .166(a) . The EPAhas not established PSDincrements forozone or PMZ.5. Without these components of a PSDprogram, it is difficult for states to determine if additional measures are needed to prevent significant deterioration within the state. Likewise, a neighboring state cannot determine whether its SIPwould interfere with such additional measures in another state's SIP . However, notwithstanding the absence of PSD increments for ozone and PMZ.5, states may continue to rely on their existing PSDand NNSR permitting programs to prevent significant deterioration of airqualitywithin their own boundaries and in adjacent states. Becausethe PSDand NNSRpermitting programs currently applicable in each area require ademonstration that new or modified sources will not cause or contribute to air pollution in excess of the NAAQS in neighboring states or that sources in nonattainment areas procure offsets, EPAbelieves that states need not make an additional SIPsubmission containing rule changes or modeling demonstrations to address the "prevent significant deterioration" requirement ofsection 110(a)(2)(D)(i)(II) for the 8-hour ozone and PMZ,5 NAAQS. For 8-hour ozone, each state only needs to make a SIPsubmission confirming that majorsources in the state are currently subjectto PSDand NNSR permitting programs that implement the 8-hour ozone standard and that SIP-approved states are on trackto meet the June 15, 2007 deadline for SIP submissions adopting therequirements ofthe Phase II ozone implementation rule. For PMZ,5, states need only provide a SIPsubmission confirming that major sources in the state are subject to PSDand NNSRpermitting programs implemented in accordance with EPA's interim guidance calling for use ofPMIOas a surrogate for PM2 .5 in the PSDand NNSR programs. Additional SIPsubmissions will be due after the final NSRimplementation rules for PM2 .5 are promulgated. The EPAwill assist each State to evaluate the available information andto develop a sufficient SIPsubmission and demonstration to meet this element of section 110(a)(2)(D)(i) . The EPAwill take action on the SIPsubmissions made by States through notice and comment rulemaking, thereby assuring that the requirements are met.6

. SIPSubmissions from States pertaining to the "protect visibility" requirement of section 110(a)(2)(D)(i) : Section 110(a)(2)(D)(i)(II) also contains a requirement for all States to submit SIPS that containadequate provisions prohibiting " . . . any source or other type of emission activitywithin the State fromemitting anyair pollutant in amounts which will - interfere with measures required to be included in the applicable implementation plan for any other State . .. .to protect visibility." The EPAadopted a phased approach to visibility protection, issuing regulations in 1980 to address reasonably attributable visibility impairment, i .e., visibility impairment that is caused by the emissions of air pollutants fromone, or a small number of sources, and issuing regulations in 1999 to address regional haze, i .e., "visibility impairment that is caused by the emission of air pollutants fromnumerous sources located over a wide geographic area."' Under the 1980 regulations, 33 States and the Virgin Islands were required to submit SIPS to address reasonably attributable visibility impairment . At this point in time, EPAhas made no determination that emissions fromany State interfere with measures required to be included in aplan to address reasonably attributable visibility impairment . Further, EPAis not aware of any certification of existing reasonably attributable impairment of visibility by a Federal Land Manager that has not already been resolved. The EPAaccordingly believes that States should be able to make a relatively simple SIPsubmission verifying that no source within the State emits pollutants that interfere with measures included in the visibility SIPS under the 1980 regulations. In 1999, EPAfound that all States contain sources whose emissions are reasonably anticipated to contribute to regional haze in one or more Class I areas.$ Pursuant to this finding, States are currently under an obligation to submit SIPS that contain measures to address regional haze, including a long-termstrategy to address visibility impairment for each Class Iarea which may be affected by emissions froma State .9 The States and Regional Plarming Organizations are currently engaged in the task ofidentifying those Class I areas impacted by each State's emissions and developing strategies for addressing regional haze to be included in the States' regional haze SIPS. These SIPsubmissions are due no later than December 17, 2007. As aresult, EPAbelieves that it is currently premature to determine whether or not State SIPS for 8-hour ozone or PM2 .5 contain adequate provisions to prohibit emissions that interfere with measures in other States' SIPS designed to address regional haze. Accordingly, EPA believes that States maymake a simple SIPsubmission confirming that it is not possible at this time to assess whether there is any interference with measures in the applicable SIP for another ' See, 40CFRsection 51 .300-308. $See, "Regional Haze Regulations," 64 FR 35,714, 35,721 (July 1, 1999) . 940CFR51 .308(d)(3) .State designed to "protect visibility" for the 8-hour ozone and PMZ .5 NAAQSuntil regional haze SIPs are submitted and approved. The EPAwill assist each State to evaluate the available information and to develop a sufficient SIPsubmission and demonstration to meet this element of section-110(a)(2)(D)(i) . EPAwill take action on the SIP submissions made by States through notice and comment rulemaking, thereby assuring that the requirements are met. 7 . When should States make section 110(a)(2)(D)(i) SIPsubmissions? The EPAmade the finding of failure to submit in April of2005, with an effective date of May 25, 2005. As a result ofthe finding of failure to submit, the CAAimposes a 24-month clock for EPAto issue a FIP, unless a Statehas made the required submission to cure the failure to submit and EPAhas acted to approve such submission fully in advance ofthe end ofthe 24-month period. In conjunction with the CAIR, EPAhas promulgated a FIP for alljurisdictions in the CAIR region to provide a federal backstop to insure timely and effective reductions of emissions fromthose States in accordance with section 110(a)(2)(D)(i)(I) . The EPA has not, however, promulgated a FIP addressing section 110(a)(2)(D)(i) for any States outside ofthe. CAIR region. States outside the CAIR region must therefore make submissions to meet the significant contribution and interference with maintenance requirements of section 110(a)(2)(D)(i)(1) to avoid a FIP addressing those requirements. In addition, all States have an outstanding statutory obligation to make a SIP submission to meet the requirements of section 110(a)(2)(D)(i)(I17 in avoid a FIPfor those requirements. The EPAis currently underan obligation to issue a FIP by May25, 2007, for anyState that does not make a submission that cures the outstanding elements of section 110(a)(2)(D)(i) for that State. Unless the State makes the necessary SIPsubmission sufficiently in advance of that date for EPAto evaluate the submission and to take the necessary rulemaking action to approve or disapprove it, EPAmay need to initiate the FIP rulemaking process in orderto meet the May2007 FIPdeadline. Forthis reason, EPAbelieves that it would be appropriate foreach State to make the SIP submission necessary to meet its outstanding obligations under section 110(a)(2)(D)(i) well in advance ofthe May 25, 2007 FIPdeadline. The EPAtherefore suggests that States should make their SIPsubmission by no laterthan November 25, 2006, in order to allow

adequate time forthe necessary Agency action on the submission. The EPArecognizes that this target SIP submission date is only 18 months after the effective date of the finding offailure to submit, and that the Agency is issuing this guidance concerning the necessary SIPsubmissions only shortly in advance of the target date. As a result, EPAintends to be as flexible as possible with respect to the target SIPsubmission date andwill work with States to insure that they can make appropriate SIP submissions as closeto 10November 25, 2006, as possible. However, in the event of submissions significantly laterthan

this date, EPAmayneed to initiate the FIP process to meet its own statutory obligations to implement FINwhere States fail to submit SINthat the Agency can approve in advance ofthe May 25, 2007 FIP deadline.Attachment A : States subject to the CAIR Alabama Mississippi Arkansas (ozone only) Missouri Connecticut (ozone only) New York Florida New Jersey Delaware North Carolina Georgia (PM

2.5 only) Ohio Illinois Pennsylvania Indiana South Carolina Iowa Tennessee Kentucky Texas (PM 2.5 only) Louisiana Virginia . Maryland West Virginia Massachusetts (ozone only) Wisconsin Michigan District of Columbia Minnesota (PM

2.5 only) 12