[Federal Register Volume 62, Number 207 (Monday, October 27, 1997)]
[Proposed Rules]
[Pages 55544-55548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28370]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[NH-7157b; FRL-5906-9]


Approval and Promulgation of Implementation Plans; New Hampshire

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: The EPA is proposing action on State Implementation Plan (SIP) 
revisions submitted by the State of New Hampshire. The EPA is proposing

[[Page 55545]]

approval of New Hampshire's 1990 base year ozone emission inventories, 
15 Percent Rate of Progress (ROP) and Contingency plans, and 
establishment of a Photochemical Assessment Monitoring Stations (PAMS) 
network, as revisions to the New Hampshire SIP for ozone. The inventory 
was submitted by the State of New Hampshire to satisfy a CAA 
requirement that those States containing ozone nonattainment areas 
classified as marginal to extreme submit inventories of actual ozone 
season emissions from all sources in accordance with EPA guidance. The 
15% ROP and contingency plans were submitted to satisfy CAA provisions 
that require ozone nonattainment areas classified as moderate and above 
to devise plans to reduce VOC emissions by 1996 when compared to a 1990 
baseline. The PAMS SIP revision was submitted to provide for the 
establishment and maintenance of an enhanced ambient air quality 
monitoring network by November 15, 1993.
    In the final rules section of today's Federal Register, the EPA is 
approving the New Hampshire 1990 base year emission inventories and 
PAMS network as revisions to the New Hampshire SIP as a direct final 
rule without prior proposal, because the Agency views these as 
noncontroversial revision amendments and anticipates no adverse 
comments. A detailed rationale for each approval is set forth in the 
direct final rule. The EPA is not publishing a direct final rule for 
the New Hampshire 15 percent ROP and contingency plans. If no adverse 
comments are received on this direct final rule, no further activity is 
contemplated in relation to this proposed rule for these revisions. If 
EPA receives any material adverse comments, the direct final rule will 
be withdrawn and all public comments received will be addressed in a 
subsequent final rule based on this proposed rule. The EPA will not 
institute a second comment period on this document. Any parties 
interested in commenting on this document should do so at this time.

DATES: Public comments on this document are requested and will be 
considered before taking final action on this SIP revision. Comments on 
this proposed action must be post marked by November 26, 1997.

ADDRESSES: Written comments on this action should be addressed to Susan 
Studlien, Deputy Director, Office of Ecosystem Protection, 
Environmental Protection Agency, Region I, JFK Federal Building, 
Boston, Massachusetts, 02203. Copies of the documents relevant to this 
action are available for public inspection during normal business hours 
at the EPA Region I office, and at the New Hampshire Department of 
Environmental Services, Air Resources Division, 64 North Main Street, 
Caller Box 2033, Concord, NH 03302-2033. Persons interested in 
examining these documents should make an appointment with the 
appropriate office at least 24 hours before the visiting day.

FOR FURTHER INFORMATION CONTACT: Robert F. McConnell, Air Quality 
Planning Unit, EPA Region I, JFK Federal Building, Boston, 
Massachusetts, 02203; telephone (617) 565-9266.

SUPPLEMENTARY INFORMATION: For supplementary information regarding the 
New Hampshire 1990 base year emission inventories or establishment of a 
PAMS network, see the information provided in the direct final action 
of the same title which is located in the rules section of today's 
Federal Register.
    This notice is divided into the following four parts:

I. Background
II. Analysis of State Submission
III. Proposed Action
IV. Administrative Requirements

I. Background

    Section 182(b)(1) of the CAA as amended in 1990 requires ozone 
nonattainment areas with classifications of moderate and above to 
develop plans to reduce area-wide anthropogenic VOC emissions by 15 
percent from a 1990 baseline. The plans were to be submitted by 
November 15, 1993 and the reductions were required to be achieved 
within 6 years of enactment or November 15, 1996. The Clean Air Act 
also sets limitations on the creditability of certain types of 
reductions. Specifically, States cannot take credit for reductions 
achieved by Federal Motor Vehicle Control Program (FMVCP) measures (new 
car emissions standards) promulgated prior to 1990 or for reductions 
resulting from requirements to lower the Reid Vapor Pressure (RVP) of 
gasoline promulgated prior to 1990. Furthermore, the CAA does not allow 
credit for corrections to basic Vehicle Inspection and Maintenance 
Programs (I/M) or corrections to Reasonably Available Control 
Technology (RACT) rules as these programs were required prior to 1990.
    In addition, section 172(c)(9) and 182(c)(9) of the CAA requires 
that contingency measures be included in the plan revision to be 
implemented if an area misses an ozone SIP milestone, or fails to 
attain the standard by the date required by the CAA.
    There are two serious ozone nonattainment areas in New Hampshire, 
and therefore the State is subject to the 15 Percent ROP requirements. 
The two areas are the Portsmouth-Dover-Rochester area, which includes 
all of Strafford County and portions of Rockingham County, and the New 
Hampshire portion of the Boston-Lawrence-Worcester area which includes 
portions of Hillsborough and Rockingham Counties. New Hampshire did not 
enter into an agreement with Massachusetts to do a multi-state 15 
percent and contingency plan, and therefore submitted a plan to reduce 
emissions only in the New Hampshire portion of this area. EPA is taking 
action today only on the New Hampshire portion of the Boston-Lawrence-
Worcester 15 percent plan.
    New Hampshire submitted a 15% ROP plan for these two areas to the 
EPA on February 3, 1994, and revisions to the plan on May 16, 1994 and 
August 29, 1996. The state's submittal contained adopted rules for all 
of the VOC control measures identified within the plan.

II. Analysis of State Submission

    The EPA has analyzed New Hampshire's submittal and believes that 
the proposed 15 Percent ROP and Contingency plans can be approved 
because they will strengthen the SIP by achieving reductions in VOC 
emissions, and because the State has correctly calculated its emission 
reduction obligations brought about by these requirements in accordance 
with the EPA's guidance. For a complete discussion of EPA's analysis of 
the New Hampshire 15 Percent ROP plan and Contingency Plan, please 
refer to the Technical Support Document for this action. A summary of 
the EPA's findings follows.

Emission Inventory

    The base from which States determine the required reductions in the 
15 Percent ROP and Contingency plans is the 1990 emission inventory. 
The EPA is approving the New Hampshire 1990 emission inventories in a 
direct final action included in the Rules section of today's Federal 
Register. The emission estimates used within the 15 Percent ROP 
calculations match those found in the State's 1990 base year emission 
inventories.

Calculation of Target Level Emissions

    New Hampshire subtracted the non-creditable reductions from the 
FMVCP

[[Page 55546]]

from the 1990 inventory. No adjustment to the inventory to account for 
the RVP of gasoline sold in the state in 1990 was necessary. The 
modification to subtract non-creditable reductions from the FMVCP 
results in the 1990 adjusted inventory. The total emission reduction 
required to meet the 15 Percent ROP Plan requirements equals the sum of 
the following items: 15 percent of the adjusted inventory, reductions 
that occur from noncreditable programs such as the FMVCP program, 
reductions needed to offset any growth in emissions that takes place 
between 1990 and 1996, and reductions that result from corrections to 
the I/M or VOC RACT rules. Table 1 summarizes these calculations for 
the two serious ozone nonattainment areas in New Hampshire.

     Table 1.--Calculation of Required Reductions (Tons/Summer Day)     
------------------------------------------------------------------------
                                                      Por-Dov-  Bos-Law-
                                                         Roc       Wor  
------------------------------------------------------------------------
1990 Anthropogenic Emission Inventory...............      41.0      55.9
1990 Adjusted Inventory.............................      35.6      48.0
15% of Adjusted Inventory...........................       5.3       7.2
Non-creditable Reductions...........................       5.4       7.9
1996 Target.........................................      30.3      40.8
1996 \1\ Projected, Uncontrolled Emissions..........      37.4      52.7
Required Reduction \2\..............................       7.1     11.9 
------------------------------------------------------------------------
\1\ 1996 emissions for on-road mobile sources were calculated using an  
  emission factor that reflected the level of control achieved by the   
  FMVCP in 1996.                                                        
\2\ Required Reductions obtained by subtracting 1996 target from the    
  1996 projected uncontrolled inventory.                                

Measures Achieving the Projected Reductions

    New Hampshire has provided a plan to achieve the emissions 
reductions required for the Portsmouth-Dover-Rochester nonattainment 
area and the New Hampshire portion of the Boston-Lawrence-Worcester 
nonattainment area. The EPA agrees with the emission reductions 
projected in the State submittals from the control measures identified 
within these plans. The following is a description of each control 
measure New Hampshire used to achieve emission reduction credit within 
its 15% ROP plans.
A. Point Source Emission Reductions
    RACT Controls. New Hampshire projects that a 2.1 tons per summer 
day (tpsd) emission reduction will occur within the Por-Dov-Roc area, 
and a 2.6 tpsd emission reduction will occur within the Bos-Law-Wor 
area from the implementation of VOC Reasonably Available Control 
Technology (RACT) on point sources, and from plant shutdowns.
    Section 182(b)(2)(B) of the CAA requires that moderate and above 
ozone nonattainment areas adopt rules to require RACT for all VOC 
sources in the area covered by any Control Technique Guideline (CTG) 
issued before the date of the enactment of the Clean Air Act amendments 
of 1990. New Hampshire imposed new RACT controls on facilities involved 
in the processes covered by a CTG to meet this requirement {these 
controls are referred to as ``RACT Catchups''}.
    New Hampshire submitted VOC RACT catch-up regulations to the EPA on 
December 21, 1992, and June 28, 1996. EPA has not acted on these rules, 
but intends to by the time final action is taken on the New Hampshire 
15 percent plans. Emission reductions from these rules are creditable 
toward the ROP requirement. The State has documented the level of 
emission reductions claimed from point sources. The State's 15% ROP 
plans contain a discussion of the emission reductions expected from 
individual point sources, and a table which lists each point source in 
the State from which emission reductions are anticipated by 1996. While 
EPA agrees that these RACT rules achieves the level of emission 
reductions New Hampshire is claiming in its 15% plan, EPA is not making 
any finding in this proposal whether the rules are otherwise consistent 
with all CAA requirements.
    Plant Closures: New Hampshire's 15% plan identifies facilities that 
will cease operations between 1990 and 1996. The State has used the 
emission reductions generated from these plant closures as part of its 
15 percent ROP plans. The emission reductions generated from these 
plant closures cannot, therefore, be used for other purposes, such as 
to meet the emissions offset provisions of the new source review 
program or as a source of a tradeable emission commodity.
B. Area Source Controls
    Stage I: Emissions from underground tank filling operations at 
gasoline service stations can be reduced by the use of a vapor balance 
system, which is termed Stage I vapor control. New Hampshire has 
adopted a Stage I gasoline vapor recovery regulation, and submitted the 
rule to the EPA as a SIP revision. EPA has not acted on this rule, but 
intends to by the time final action is taken on the New Hampshire 15 
percent plans. The data used to derive the anticipated emission 
reduction from implementation of this rule are documented within the NH 
15% ROP plans. The EPA agrees with the level of emission reductions 
projected by the State. While EPA agrees that the Stage I rule achieves 
the level of emission reductions New Hampshire is claiming in its 15% 
plan, EPA is not making any finding in this proposal whether the rule 
is otherwise consistent with all CAA requirements.
    Underground Tank Breathing: New Hampshire's Stage I rule contains a 
requirement that a pressure vacuum (PV) valve be installed on vents 
located on underground tanks at service stations. The EPA agrees with 
the emission reductions claimed by the State due to this provision of 
the Stage I rule.
    Stage II: New Hampshire has adopted an air pollution control rule 
that will limit VOC emissions from automobile refueling activity, 
commonly referred to as Stage II emissions. The rule was submitted to 
the EPA on December 21, 1992. EPA has not acted on this rule, but 
intends to by the time final action is taken on the New Hampshire 15 
percent plans. The EPA agrees with the emission reduction credit 
claimed by the state due to the implementation of this program. While 
EPA agrees that the Stage II rule achieves the level of emission 
reductions New Hampshire is claiming in its 15% plan, EPA is not making 
any finding in this proposal whether the rule is otherwise consistent 
with all CAA requirements.
    Surface Cleaning Controls: New Hampshire adopted a VOC RACT rule 
that controls emissions from open top and cold cleaning degreasing 
operations. The State determined that area source emissions would also 
be reduced by this rule, which is consistent with EPA guidance. The 
emission reductions claimed by the State from this rule are therefore 
creditable towards the 15% ROP plan.
    Automobile Refinishing: On November 29, 1994, EPA issued a final 
guidance memorandum that allowed States to assume a 37 percent control 
level for this source category without adopting a State rule due to a 
pending National rule. New Hampshire used this guidance to determine 
the magnitude of emission reductions expected to occur within its two 
ozone nonattainment areas. The EPA agrees with the level of emission 
reductions projected by the State.
    Commercial and Consumer Products: On June 22, 1995, EPA issued a 
final guidance memorandum that allowed States to assume a 0.8 pound per 
capita emission reduction for this source category without adopting a 
State rule

[[Page 55547]]

due to a pending National rule. New Hampshire used this guidance to 
determine the magnitude of emission reductions expected to occur within 
its two ozone nonattainment areas. The EPA agrees with the level of 
emission reductions projected by the State.
    Architectural Coatings: In a memo dated March 22, 1995, EPA 
provided guidance on the expected reductions from a pending national 
rulemaking on AIM coatings. The memo projects that emissions would be 
reduced by 20 percent for both architectural coatings and industrial 
maintenance coatings. New Hampshire used this guidance to determine the 
magnitude of emission reductions expected to occur within its two ozone 
nonattainment areas. The EPA agrees with the level of emission 
reductions projected by the State.
(C) On-Road Mobile Source Controls
    Reformulated Gasoline (RFG): Section 211(k) of the Clean Air Act 
requires that after January 1, 1995 in severe and above ozone 
nonattainment areas, only reformulated gasoline be sold or dispensed. 
This gasoline is reformulated to burn cleaner and produce fewer 
evaporative emissions. The state of New Hampshire contains two 
``serious'' ozone nonattainment areas and one ``marginal'' area, and 
therefore is not required to sell reformulated fuels. However, on 
October 28, 1991 the State submitted a letter from the Governor 
requesting that New Hampshire participate in the reformulated fuels 
program. This request was published in the Federal Register on December 
23, 1991, 56 FR 66444. The EPA agrees with the emission reductions 
calculated by the state due to the use of reformulated gasoline in on-
road vehicles.
    Tier I Federal Motor Vehicle Control Program (FMVCP): The EPA 
promulgated standards for 1994 and later model year light-duty vehicles 
and light-duty trucks (56 FR 25724, June 5, 1991). Since the standards 
were adopted after the CAA amendments of 1990, the resulting emission 
reductions are creditable toward the 15 percent emission reduction 
goal. The EPA agrees with the emission reductions calculated by New 
Hampshire due to the Tier I motor vehicle controls.
    Non-road mobile source controls: As previously discussed, New 
Hampshire has opted in to the reformulated gasoline program. In 
addition to reducing VOC emissions from on-road motor vehicles, the 
sale of this gasoline will also reduce VOC emissions from non-road 
equipment. The EPA agrees with the emission reductions projected by New 
Hampshire to occur due to the sale of reformulated gasoline in the 
state.
    Table 2 summarizes the emission reductions contained within the New 
Hampshire 15% ROP plan. New Hampshire allocated between the two 
nonattainment areas the anticipated reductions from control measures 
using the same methodology that determined the allocation of its 1990 
base year inventory emissions.

  Table 2.--Summary of Emission Reductions: New Hampshire Serious Ozone 
                           Nonattainment areas                          
                               (Tons/Day)                               
------------------------------------------------------------------------
                                                     Por-Dov-   Bos-Law-
                Nonattainment area                      Roc        Wor  
------------------------------------------------------------------------
Required Reduction................................        7.10     11.90
Point Source Reductions...........................        2.10      2.60
Stage I...........................................        1.25      2.09
Stage II..........................................        1.28      2.14
Underground Tank Breathing........................        0.11      0.18
Surface Cleaning..................................        0.30      0.50
Auto Refinishing..................................        0.41      0.69
Consumer & Com. Prod..............................        0.19      0.32
Architectural Coatings............................        0.38      0.63
Reform (On-road), Tier 1..........................        2.60      3.90
Reform, Off-road..................................        0.20      0.20
                                                   ---------------------
      Total.......................................        8.82     13.25
------------------------------------------------------------------------

    Contingency Measures: Ozone nonattainment areas classified as 
moderate or above must submit to the EPA, pursuant to section 172(c)(9) 
and 182(c)(9) of the CAA, contingency measures to be implemented if an 
area misses an ozone SIP milestone or does not attain the national 
ambient air quality standard by the applicable date. The General 
Preamble to Title I, (57 FR 13498) states that the contingency measures 
should, at a minimum, ensure that an appropriate level of emission 
reduction progress continues to be made if attainment or RFP is not 
achieved and additional planning by the State is needed. The EPA 
interprets this provision of the CAA to require States with moderate 
and above ozone nonattainment areas to submit sufficient contingency 
measures so that upon implementation of such measures, additional 
emission reductions of three percent of the adjusted base year 
inventory (or a lesser percentage that will make up the identified 
shortfall) would be achieved in the year after the failure has been 
identified. States must show that their contingency measures can be 
implemented with minimal further action on their part and with no 
additional rulemaking actions such as public hearings or legislative 
review.
    Surplus Emission Reduction from 15 Percent Plan: New Hampshire's 15 
percent ROP plans achieve more emission reductions than required. This 
is illustrated within Table 2 above. New Hampshire's contingency 
obligations for its two ozone nonattainment areas are 1.1 tpsd for the 
Por-Dov-Roc area, and 1.4 tpsd for the New Hampshire portion of the 
Bos-Law-Wor area. The surplus credit generated by the control measures 
in the 15 Percent ROP plans is sufficient to accommodate the 3 percent 
emission reduction requirement for contingency plans for the State's 
two serious ozone nonattainment areas. EPA notes that the State's SIP 
indicates that a 0.1 tpsd surplus exists in the New Hampshire portion 
of the Bos-Law-Wor area after accounting for contingency reductions. 
However, the data presented in Table 2 indicates a minor shortfall of 
0.05 exists after accounting for the 1.4 tpsd contingency obligation 
for this area. Given the large number of inventory and emission 
reduction calculations used to derive the data provided in Table 2, EPA 
considers the minor shortfall of 0.05 tpsd to be within an acceptable 
range of error. EPA proposes to determine that New Hampshire has met 
the contingency measure requirement for both of its nonattainment 
areas.

III. Proposed Action

    The EPA has evaluated these submittals for consistency with the 
CAA, EPA regulations, and EPA policy. The New Hampshire 15 Percent ROP 
plans will achieve the required quantity of emission reductions to meet 
the 15 percent ROP requirements of section 182(b)(1) of the CAA. In 
addition, the New Hampshire contingency plan will achieve enough 
emission reductions to meet the three percent reduction requirement 
under 172(c)(9) and 182(c)(9) of the CAA. Therefore, the EPA is 
proposing approval of these plan revisions under Section 110(k)(3) and 
Part D.

Transportation Conformity Budgets

    In recognition of the proposed approval of the 15 percent ROP 
plans, EPA also proposes approval of motor vehicle emission budgets for 
VOCs and NO<INF>X</INF>. Final approval of the 15 percent plan will 
eliminate the need for the transportation conformity emission reduction 
tests, which are the build/no build test and the less than 1990 
emissions test, for these pollutants.
    A control strategy SIP is required to establish a motor vehicle 
emission budget which places a cap on emissions that cannot be exceeded 
by predicted

[[Page 55548]]

highway and transit vehicle emissions. EPA is proposing to utilize the 
on-road mobile emissions provided in the 15 percent plan SIP submittals 
as the motor vehicle emission budgets for transportation conformity 
purposes. The 1996 projected on-road mobile emission estimates 
contained within the State's 15 percent plans are shown in the 
following table:

              Table 3.--1996 Motor Vehicle Emission Budgets             
------------------------------------------------------------------------
                                                                   NH   
                                                                 portion
                                                      Por-Dov-   of Bos-
                                                      Roc area   Law-Wor
                                                                  area  
------------------------------------------------------------------------
VOC.................................................      12.1      18.0
NO<INF>X.................................................      17.2      24.1
------------------------------------------------------------------------

    EPA is soliciting public comments on the issues discussed in this 
proposal or on other relevant matters. These comments will be 
considered before EPA takes final action. Interested parties may 
participate in the Federal rulemaking procedure by submitting written 
comments to the EPA regional office listed in the ADDRESSES section of 
this action.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any SIP. Each request for revision to the SIP shall be 
considered separately in light of specific technical, economic, and 
environmental factors, in relation to relevant statutory and regulatory 
requirements.

IV. Administrative Requirements

A. Executive Order 12866

    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995 memorandum from Mary Nichols, Assistant Administrator for 
Air and Radiation. The Office of Management and Budget (OMB) has 
exempted this regulatory action from review under Executive Order 
12866.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. Sec. 600 et seq., 
EPA must prepare a regulatory flexibility analysis assessing the impact 
of any proposed or final rule on small entities. 5 U.S.C. Secs. 603 and 
604. Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under section 110 and subchapter I, part D of the 
Clean Air Act do not create any new requirements but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP approval does not impose any new requirements, the 
Administrator certifies that it does not have a significant impact on 
any small entities affected. Moreover, due to the nature of the 
Federal-State relationship under the CAA, preparation of a flexibility 
analysis would constitute Federal inquiry into the economic 
reasonableness of state action. The Clean Air Act forbids EPA to base 
its actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under Sections 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under Section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the approval action proposed does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Reporting and recordkeeping, Nitrogen oxides, Ozone, Volatile organic 
compounds.

    Authority: 42 U.S.C. 7401-7671-q.

    Dated: September 29, 1997.
John P. DeVillars,
Regional Administrator, Region I.
[FR Doc. 97-28370 Filed 10-24-97; 8:45 am]
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