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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 to the General

Preamble for the Implementation of

Title I of the Clean Air Act

Amendments of 1990

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Supplement to the general

preamble for future proposed

rulemakings.

SUMMARY: The General Preamble for

implementation of title I of the Clean Air

Act (CAA) Amendments which was

published on April 16, 1992 (57 FR

13498], does not address several new

provisions of the amended CAA

concerning emissions of nitrogen 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 I and IV, ozone

transport regions, section 185B report,

and section 182(f). The purpose of this

NO. supplement to the General

Preamble is to provide guidance on

implementation of these 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

of comments 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 to Title 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 of the 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 of Controls 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 VOC and NON Emissions

3.5 Prevention of Significant Deterioration

(PSD)

3.6 NSR Offset Commitment

4 Reasonably Available Control Technology

4.1 Background

4.2 General Definition of RACT

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 IV Required

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 Control Technique (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 Control Technologies

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 Preamble to Title I

Title I of 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 of title 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 of law.

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 I provisions.

During the comment periods for these

subsequent actions, members of the

public will have the opportunity to

comment on the relevant issues.

The EPA's interpretation of the title I

provisions will provide a basis for

subsequent approval or disapproval of

SIP submittals concerning NAAQS

nonattainment areas. While this

Preamble contains guidance on the

interpretation of the majority of the title

I SIP requirements, 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 of title 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 of the title I requirements

for areas designated nonattainment

(and, for some pollutants, classified)

under part D, title I, as well as the

proper treatment of nonattainment areas

that fall outside of the classification

schemes. The General Preamble

discusses requirements for the SIP

submissions required for ozone, CO,

PM-10, SO2 , NO 2, 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

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the various types of possible State

failures to meet certain requirements

and the consequent sanctions and

Federal implementation plans {FIPs).

The General Preamble also sets forth

EPA's interpretation of the various

provisions in the amended Act which

change NSR requirements for new and

modified sources in nonattainment

areas. The discussion includes EPA's

intended interpretation of the minimum

changes all States must make in their

SIPs in arder 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 -CAA requirements.

1.2 Supplemen to the General

Preamble to Title I

The General Preamble published on

April 16, 1992 does not address several

new provisions of the amended CAA

concerning emissions of oxides of

nitrogen tNOx). Specifically, the General

Preamble does not include a discussion

of the 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 of this

supplement to the General Preamble to

title I is to provide guidance on

implementation of these NOx provisions.

1.3 New NOx Requirements

Section 182(f) requires States to apply

the same requirements to major

stationary sources of NOx as are applied

to major stationary sources of volatile

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). The NSR 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 NOx for 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 for purposes of

meeting those requirements. In order to

substitute NOx reductions for VOC, the

State must demonstrate to EPA,

consistent with the EPA guidance, that

the NOK reduotions would result in

reductions in ambient ozone

concentrations at least equivalent to

that which would 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 is justified. 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 ,emissions must meet the

guidance required .under section

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 185B Report

Under section 18513, the

Administrator, in conjunction with the

Nation Academy of Sciences, is to

conduct astudy on the role of ozone

precursors in tropospheric ozone

formation.The study must examine the

role of NOx and VOC emission

reductions, the extent to which NO1

reductions may contribute (or be

counterproductive) to achieving

attainment in different nonattainment

areas, the sensitivity of ozone to the

control of NOx, the availability and

extent of controls for NOx, the role of

biogenic VOC emissions, and the basic

information required for air quality

models.

A draft version of the 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 of this

report on December 13, 1991. The

section 185B report will include an EPA

report addressing the availability and

extent of NOx controls. The section 185B

report will also provide EPA

perspectives on key ozone control

strategy -issues addressed 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 this supplement to the

General Preamble provides general

information regarding the circumstances

under which the NSR and RACT NOx

requirements would not apply. The EPA

is preparing a separate guideline

document to further detail these

provisions.

1.7 Attainment of the Ozone NAAQS

Incertain areas, a State may reqire

NOx1 contrwls more restrictive than those

provided by the 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 annual xeductions in emissions

of VOC and NO.x "as necessary to attain

the national primary ambient air quality

standard for ozone by -the attainment

date applicable." The requirement for

specific annual reductions would not

apply as to NOx reductions for those

areas for which the Administrator

determines that additional reductions of

NOx would not oontrinute to attainment

(section 182(b[f1)(A)(il,.

2. Applicability and Due Dates for NSR

and RACT'Rules

2.1 Marginal Ozone Nanattainmenf

Areas

The section 162(f) NOx provisions for

NSR apply to all ozone nonattainment

areas with a-classification of marginal

or higher. The RACT 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 of NOx, 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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55622. Federal Register / Vol. 57, No. 228 I Wednesday, November 25, 1992 / Proposed Rules

requirements for ozone 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 Vonottainment Areas

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 of NAAQS. Section 184(a)

specifically created at enactment by

operation of law 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. If other 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 of VOC 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

Sta te must adopt rules to apply the NSR

and RACT provisions for ozone to major

VOC sources Statewide, unless a

portion of the 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 Major Stationary Source

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 of the 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 of an ozone transport

region designated attainment/

unclassified, a major stationary NOx

source is defined by section 302(j) as 100

tons per year. 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 for NOx will be

defined as any stationary source that

emits or has the potential to emit 100

tons per year or more of NOx. ,

In the case ofserious, severe, or

extreme ozone nonattainment areas

within the transport region, the lower

threshold definitions of major 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 or regional attainment strategies.

2.5 General Due Dates for NSR 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

for new or modified 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 of the 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

of VOC 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 of a Slate

subsequently included in a transport

region under section 176A, the measures

must be submitted within 9 months of

the area's inclusion in a transport

region.

Because States in a transport region

are generally subject to the moderate

area requirements, EPA believes that the

schedule for implementing these RACT

rules in the ozone transport region

should be consistent with the

requirements of section 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 Alternative Schedules for NO

RA CT Rules

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 of EPA

approval of the plan revision that

incorporated that commitment. If EPA

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

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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 of the new NO,

requirements should not apply. The EPA

has determined that, as a technical

matter, photochemical grid modeling is

the only reliable tool to justify 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 of ozone

nonattainment areas, however,

photochemical grid modeling either has

not been utilized previously or, if

utilized, has not adequately considered

the effects of NOx 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 of NOx 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

of ozone attainment, a State could, as a

means of meeting the November 15, 1992

deadline for submittal of NO, 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 of the

commitment. Decisions to grant

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 is not

available or did not consider the effects

of NOx 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 if the 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 of EPA approval.

2.6.2 Phase-in of Controls Beyond May

1995

As discussed above, the statute

requires the implementation of RACT 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, if a State demonstrates that

installation of all 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 of the 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 itself as 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 of the

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 for many 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 Section 182(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

of the NOx provisions are not required.

Refer to section 6 of this document for

further information.

3. New Source Review

3.1 General NSR Requirements

The NSR requirements are detailed in

section IILG of the 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 I for major VOC

sources must also be applied for major

NO, sources.

3.2 NSR in Submarginal Areas

Nonclassified ozone areas consist of

transitional, submarginal, and

incomplete/no data areas. As described

in section III.A.7 of the 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 of section 182(f) do

not apply in these areas for ozone,

except in the ozone transport region.

This is because section 182(f) applies

only to those NOx sources located in

areas subject to requirements of subpart

2 of part D of title I. That group consists

only of sources located in the ozone

transport region per se:tion 184 and in

areas classified under Table 1 of section

181(a), which does not include the

submarginal and incomplete/no data

areas located outside the transport

region.

3.3 NSR in Marginal Areas

Marginal areas outside of the ozone

transport region that expect to attain by

November 1993 might not realize a

benefit from NOx NSR requirements due

to the lag time between regulation

adoption and implementation within a

source. Adoption of NSR rules by

November 1992 would provide a 1 year

period where new or modified sources

would be subject to the rules. In

contrast, even with an approved

preconstruction permit, construction and

startup of major new sources or major

modifications may take 1 to 2 years. or

more, depending on the complexity and

size of the project. Thus. any emission

benefit from offsets or avoided emission

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increases might not be realized until.

well after the attainment deadline.

As described.in section.6 of this

supplement to the General Preamble, if

specific NOx reductions do nct

contribute to .attainment, States may

request an exemption from the NOx.

requirements under the section 182{0(2)

excess reductions provision. However, if

these areas obtain such an exemption

based on the limited effect of NOx

reductions between 1992 and 1993, but:

then do nut attain by the end of 1993,

these areuas would then be subject to the

nonattainment NSR requirements of the.

CAA and would need a pre-construction

permitting program to meet teze

requirements.

Alternatively, States could apply the

ful'rahge'of NSR requirements to

prospective new. or modified major

sources for which complete pe.nit

applications are submitted after

November 15, 1992. Because of the lead

time involved, it is unlikely that many

such, sources will have received permits

and-made substantial investmentsin.

LAER controls prior to the November

1993 marginal, area attainment date. At

that time,, if the 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 NOx Emissions

The EPA finds nothing in the statutory.

language to. suggest that emissions .oil

VOC and, NOy are to be added together

for part D NSR 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-of SignificantDeterioration (PSDJ

Because NOx emissions also

contribute to-ambient concentrations of

nitrogen dioxide, for which a NAAQS

has been set,, the.PSD provisions of part

C apply to major stationary sources of

NOx in all' areas, designated- attainment

or unclassifiable, for nitrogen dioxide.

Further,, as described. in section 3 of this.

supplement,.NOx.. NSR is required in.

certain ozone nonattainment areas-and

the ozone transport region.. In many

areas, both the nonattainment NSR, and.

the PSD req uirements apply. The major

stationary source thresholds defined. in;

the PSD rules continue to. apply when

determining PSI);applicability..Where a.

source must meet both. the LAER and.

Best Availabli Controll Tbainoliogyr

{BACTY requirements for NO%, 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 or modifyingNOx 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 own use otherwise

surplus NOx emissions reductions. Thus,

until'RACT levels are established, there

may be a scarcity of NOx 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, but which 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 wait out any initial'

uncertainties with the NOx emissions

rediction marker.

Under existing EPA. policy,, sources

must identiy and; secure; offsetting,

emissions. reductions as. a, condition for

receivinga new source review

preconstruction. permit See 40 CFR

51.165, appendix S. Most States have

incorporated. this requirement into. their

nonattainment preconstruction. review

program by reqwring, the offset to be in,

effect and secured by a federally

enforceable permit condition prior to. the

issuance of the permit to. construct the

modification. or new- source. However.,,

the amended CAA is not so. restrictive.

Section 173(a),states..that offsetting.

emissions reductions must be "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 of this 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 willf reqtiire 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

permit restrictions 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 of sources:

Utility boilers, gas turbines,. internal

combustion, engines, and industrdal;

boilers. Approximately 85 percent, of

stationary source NOx. emissions. are

accounted for by these aources, with:

utility boilers contributing almost 0

percent of the total statib'nary source

emissions. Other source categories car

be important in individual: areas.

Section 182(b)'refers to CTGs and

CTG documents that have been or will:

be dbveloped' to assist in the

determination of RAICT for several

categories of VOC sources. However,

neither CTG' documents nor CTGB

themselles have been issued for NOx.

sourses' and; the QAA does not'reqtire

NINI, CTG6.

4.2. General'Definiion. of RACT

The E has. defined'lMCT'as the

lowest emission limitation that a, ,

particular source Is. capable of meeting

by the. application of control, technology

that is reasonably, available considering

technological' and economic. feasibility

(44 FR 53762; September 1719791

Althougb EPA historically has:

recommended source-categpry-wide

presumptive RACT limits,.and. plans to

continue that' practice.. deci'ions on.

RACT may 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 may require'technology that

has been applled' to s imilr, but not

necessarily identicat source categories.

Presumptive RAC'I limits are, basedion

capabilities which are general to an

industry, but may not be attainable at!

every facility.

An extensive research and

development, program, should, not be

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 permit the. application of a,

given technology, to a particular source,

4.3 Relaton to ACT$"

Section 1'83(c)" requires the.

Administratorto Wbsue'alternalvje.

control technique-documents ('A.s)'.by

November 199' that, identify, alternative

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controls for all categories of stationary

sources of VOCs and NO, that emit

more than 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 of NOx.

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 Relation to Title IV

Coal-fired utility boilers located in

nonattainment areas must meet the NOx

RACT requirements of section 182(fn, as

well as any other applicable

requirements of title I of the Act, and the

NON requirements of section 407 under

the acid rain program in title IV of the

Act. The NOx RACT requirements for

certain electric utility boilers are

discussed in § 4.6 of this document. As

required under section 407, 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 Relation to VOC RACT Policies

Over the last 15 years, EPA has

provided guidance on what constitutes

RACT for stationary sources. During

these years considerable information

and definitions have been provided 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 of NOx.

4.6 RACT for Certain Electric Utility

Boilers

The EPA has determined that, in the

majority of cases, RACT will result in an

overall level of control equivalent to the

following maximum allowable emission

rates (pounds of NOx per million Btu) for

utility boilers:

(a) 0.45 for tangentially 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 of a 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 for application to

groups of boils on an areawide average,

Btu-weighted basis.

The EPA expects States, to the extent

practicable, to demonstrate that the

variety of emissions controls adopted

are consistent with the most effective

level of combustion 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 of simplifying State RACT

determinations and enhancing the

ability of States to adopt market-based

trading systems for NOK, the State may

allow individual owners/operators in

the nonattainment 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.

In general, 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 and in 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 of site-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 boiler application. The ease of

retrofitting varies substantially from one

boiler to another. Combustion

modifications may also include: Low

excess air, biased burner firing, burners

out of service, reduce air preheat, and

steam/water injection.

4.7 RACT for Other Utility Boilers and

Source Categories

For source categories and utility

boilers other than the electric utility

boilers specified above, EPA is not

recommending a specific RACT level in

this document. In general, EPA expects

that NOx RACT for these other sources

will be set at levels that are comparable

to the RACT guidance specified above

for certain electric utility boilers.

Comparability shall be determined on

the basis of several factors including, for

example, cost, cost-effectiveness, and

emission reductions.

4.8 Enforceability

The SIP measures must be converted

into a legally-enforceable vehicle (e.g.. a

regulation). The regulations or other

measures must meet EPA's criteria

regarding the enforceability of SIPs 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 of the

various requirements.

5. Emissions Trading and Economic

Incentive Programs

5.1 Emission Trading Policy Statement

Since 1976 EPA has developed several

emissions trading programs to allow

industry and States more flexibility in

meeting statutory requirements of the

Clean Air Act. 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 of emission

reduction credits. Only emission

reductions which are surplus,

quantifiable, federally, enforceable, and

permanent may be used in an emissions

trade.

5.2 Economic Incentive Programs

The EPA encourages the development

of economic incentive programs (EIPs)

that increase flexibility and stimulate

the use of more 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 SIP requirements (section

110(a)(2)(A)), the general provisions for

nonattainment SIPs (section 172(c)(6)).

and the system of regulations 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 the EIP rules (which

will' also serve as EPA's guidance for

discretionary programs) will be broadly

applicable to any type of EIP, and will.

provide flexibility to States in. the

development of market-based,

innovative programs for stationary,

area, and mobile sources. The EIP rules

will require EI~s submitted by States. to

EPA for approval as part of a SIP to

contain design features that will ensure

that (1) emissions reductions credited'to

the program will be quantifiable andi

consistent with SIP 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 within the 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 that the above reqirements.will.

be met.. However,, it is 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), for new or modified'

major stationary sources, Section

173(c)(1) stipulates that emissions.

offsets generally must be obtained by the same source or other existing

sources in the same nonattainment area.

However, the statutory provision. does,

allow offsets to be obtained in another

nonattainment area under two specific

conditions.

First, the other nonattainment area

must have an equal. or higher

nonattainment classification than the

nonattainment area in which the source

would construct. In applying this

provision the other nonattainment area

must have an. equal or higher

nonattainment classification, for the

same pollutant. For example, a proposed

major new source of NO.- seeking to

locate in, a nonattainment area classified

as Serious for ozone could possibly

obtain emission. offsets in another ozone

nonattainment area if such area. were

* designated Serious,. Severe or Extreme

forozone.

The second condition -is. that. the

emissions from. such other

nonattainment area must contribute to a

violation of the 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 by the

permitting authority.

5.4 .. Relbtion to Title IV Required

Reductions

Section 407 of title IV of the Clean, Air

Act requires the EPA to establish annual

average NOx emission. limits for. certain.

electric:utility, boilers. and allows the

averaging of emissions between affected

biolers in- order to meet the emission

limits as. a group. NO,,. emission

reductions at these. utilities which result.

from the title I program, may-.be used forpurposes of meeting the title IV NO,

requiremIents. Further, as- discussed

below, NO,, emission, reductions

resulting from the title IV programn may,

be considered. for purposes, of meeting

certain title L requirements,. under

appropriate conditions.

To receive title I. SIP credit for use

under an EIP or for purposes of banking,

bubbling,, or netting, emission reductionsfrom the- title IV program, must, be

surplus:to-the title I requirements,,

enforceable, quantifiable,, and,

permanent. Only those title LV emission.

reductions that exceed any applicable

title I reqprementa (,e;,, RACT, wouldi

be surplus. To be enforceable for titlel'l

purposes,. the title IV emission,

reductions, must be part of an, approved;

SIP or federally enforceable operating,

permit. To be quantifiable for title I

purposes, emission reductions must be

measurable or-predictable on a

timeframe appropriate for the purposes

of title I generally one hour or twentyfour hour levels on a typical high ozone.

day. Emission reductions at. title IV

boilers which- are part of an approved

title IV averaging group are creditable

for purposes of banking, bubbling or

netting, under title I only to the extent

that the emissions reductions at any

boiler, subgroup of boilers or the entire

group of boilers are surplus to their

individual and combined title I emission

limitations, enforceable, quantifiable

and permanent and take place in a

single attainment or nonattainment area. . For purposes of establisilt emission

offset credits, additional requirementsapply. Section 173(c)(2) states that

"Emission reductions otherwise required

by this Act shall not be creditable as

emissions reductions for purposes ef

any such offset. reqi~rement."' Thin

condition, prevents emission reductions

otherwise required by the Act from

being credited for purposes of satisfying-.

the part D NSR. 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 a requirement of the CAA

(incidental, emission reductions); as well

asother reductions which exceed'

requirements of-the CAA, to be credited'

if they meet' the other criteria for offsets.

Thus, reductions, achieved that exceed

the requirements of both title IV and' any

applicable title It requirements, are

creditable for purposes. of offsets.

Emission reductions at title IV boilers

which are part of an approved' title IV'

averaging group are creditable' for

purposes of offsets under title I only to

the extent that' the emissions reductions

at any boiler,. subgroup of boilers or the

entire group of boi]lrs- are enforceable,

quantifiable and permanent are surplus

to their individbal' and combined titfe 1:

and title IV emission, limitations;,and:

take' plhce in a single attafnment area

(within an ozone transport regionj or a

single nonattainment area. Such

emissions.redbctions may be considered.

as creditable reductions if all other

conditions for a creditable offset are

met

6. Section182(f) Applicability Guidance

6.1- Background

Section,182(f)(1 ) states- that- the, new

NOk, requirements shell' mot apply, where

any of the follbwing 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.

In addition, section 182(P(2) states

that the application of the new NOx

requirements may be limited to the

extent necessary to avoid excessreductions of NOx.

6.2 Administrative Procedures

A State may demonstrate ta the

Administrator that the new NOx.

requirements should not apply, The

State's demonstration is not required' to

be a SIP revision, itself. However, fts

demonstration. sheutd accompany a SIP

revision that addresses, the NO,

requirements of section,182(. The EPA%

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will accept or reject the demonstration

as part of the rulemaking process on the

accompanying SIP revision.

The EPA's decision will be based on

the demonstration provided by the State

and application of the guidance

contained in the relevant EPA

document. The EPA encourages the

States to consult with the appropriate

EPA Regional Office during the

development of the documentation and.

plan revision. This is necessary to

ensure that the documentation provided

by the State is likely to be approved and

that any required rules can be adopted

in a timely manner.

Section 182(f)(3) also provides that a

person (including a State) may petition

the Administrator for a NOx exemption

at any time after the final section 185B

report is submitted to Congress. The

petition may be made with respect to

any nonattainment area or any portion

of an ozone transport region. The EPA is

required to grant or deny a petition

within 6 months. The EPA's decision

will be based on the documentation

provided by the petitioner, the State's

recommendation, and application of the

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 must be prepared by

EPA, in conjunction with the National

Academy of Sciences, and was

mandated by Congress in order to

improve understanding of many aspects

of the roles of NOx and VOC in ozone

formation. Section 182(f) requires EPA,

in its review of a petition, to "consider

the study tequired under section 185B."

Thus, the petition opportunity is linked

to consideration of a portion of the

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 of the National Academy

of Sciences portion of the 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 of attainment in different

ozone nonattainment areas.

While the amended CAA provides a

person the opportunity to petition EPA

under section 182(f)(3) after EPA

submits the section 185B report to

Congress, the statute also mandated the

submittal of the report to Congress by

February 15, 1992. In this sequence of

events, Congress clearly intended that

petitions could be submitted to EPA well

before the November 15, 1992 statutory

deadline for adoption of the 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 of the section

185B report to Congress. That language

prescribes a specific time after which

the Administrator must make 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 of the petition, the relevant

issues examined by the section 185B

study. Therefore, EPA has decided to

act, within 6 months of receipt, 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 of any

petition (other than 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 of the

petition should also be submitted to the

relevant EPA Regional Office and EPA's

Office of Air 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 of a

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.

If EPA grants a petition, some or all of

these title I NOx 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 for purposes of ozone

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 to justify how the

SIP continues to be adequate for

achieving ozone attainment given its

NOx reductions. 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 of a transport

region that are attainment/unclassified

can opt-out of the NOx requirements.

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 of the 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 for these

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 of an

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 of an ozone transport region.

6.4 Relation to the SIP

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 of the State's rules, the State

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may simply choose not to submit the

rules. If a petition is granted after

submittal of the rules, but prior tO EPA

approval, the State may choose to

withdraw the rules and preclude firther

EPA action. In a case where a petition is

granted ("exempted area") after EPA

approves of the NO, rules, the SIP

would need to be modified to rescind

the NOx rules. In an exempted area, the

NOx RACT and/or NSR rules may 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 of a

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 of NO,- RACT

and/or NSR rules and may result in

revision of the 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 if in

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 of a photochemical grid

model showing that'the subject NO

controls result in excess emission

reductions, as determined using the

section 182(f) tests set forth at the

beginning of this section. The revisions

must be submitted as a SIP revision and

the SIP must demonstrate attainment as

expeditiously as practicable.

7. Control Technology Information

7.1 Alternative Control Technique

(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 of VOCs 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 of NOx'. 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 185B Report

The report required by section 185B

will include information on the

availability and extent of controls 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 Attainment Demonstration

As described in Sections III.A.3 and

III.A.4 of the 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 of NOx would not

contribute to attainment (section

182(b)(1)(A)(i)).

8.2 Advanced Control Technologies

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 of a serious ozone nonattainment

area's 1994 SIP if modeling found such

controls to be necessary to provide for

expeditious attainment of the ozone

NAAQS. In order to avoid or minimize

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 of such

areas to attain the ozone NAAQS as

required. For further discussion of this

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. of the General Preamble to title

9.2 Rule Effectiveness

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. Other Requirements

10.1 Executive Order 12291

Under Executive Order 12291, EPA is

required to judge 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 of policy as defined

in the Administrative Procedure Act

(APA).

10.2 Regulatory Flexi6ility Act

Whenever the Agency is required by

section 553 of the APA or any other law

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Federal Register / Vol. 57, No. 228 / Wednesday, November 25, 1992 / Proposed Rules 55629

to publish general notice and proposed

rulemaking for any proposed rule, the

Agency shall propose and make

available for public comment an initial

regulatory flexibility analysis. The

regulatory flexibility requirements do

not apply foF the NOx Supplement to the

General Preamble because it is not a

regulatory action in the context of the

APA or the Regulatory Flexibility Act.

Dated: October 27, 1992.

William K. Reilly,

Administrotor.

[FR Doc. 92-27548 Filed 11-24-92; 8:45 am]

BILLING CODE 6560-50-U

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