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# OAR Box 1787
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Number: 

# 41 ) ll-B-2 6
Docket Number: 

# A-90-3 7

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*l PROlt 0 ^ UNITE D STATES-ENVIRONMENTA LPROTECTIO N AGENCY

Offic e o fAi rQualityPlannin g an d Standard s Researc h Triangl e Park , Nort h Carolin a 2771 1 

## A-90-3 7

i e l : 

## i j : \ 7 l i MA Y2 7199 A

MEMORANDU

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SUBJECT :

FRO M Sectio n 182(f ) Nitroge n Oxi d

Revise d Proces s and Criter i ph n S
. Seitz , Direct a Offic e o f Ai r Qualit y TO : ptions —

ndard s (MD-10 ) oxic s Managemen t Director , Air , Pesticide s an d Division , Region s I an d IV Director , Ai r & Wast e Managemen t Division , Regio nI I Director , Air , Radiatio nan d Toxic s Division , Regio n II I Director , Ai r & Radiatio nDivision , Regio n V Director , Air , Pesticide s an d Toxic s Division , Regio n V I Director , Ai r & Toxic s Division , Region s VII , VIII , IX , an d X
Thi s memorandu

m revise s th e proces s th e Environmenta l Protectio n Agenp y(EPA ) currentl yintend s t o follo wfo r grantin g exemption s fromcontro l requirement s fo r N0 Xunde r sectio n182(f ) o f th e Clea n Ai r Ac t (Act ) 7 I t als o revise s certai nguidanc e previousl yissue d qoncernin g N0 Xexemption s fo r area s outsid e th e ozon e transpor t regio n tha t hav e ai r qualit ymonitorin g dat a showing attainment. 2 \

'"Guideline fo r Determining th e Applicabilit yo f Nitroge n Oxid e Requirement s unde r Sectio n 182(f), " fro mJohnS
. Seitz , Director , Offic e o f Ai r Qualit yPlanning an d Standards , t o th e Regiona l Divisio n Directors , Decembe r 16 , 1993 , Chapter
. 2 , Administrativ e Procedures
.

2 "Stat e Implementatio n Pla n(SIP ) Requirement s fo r Area s Submitting Request s fo r Redesignatio nt o Attainmen t o f th e Ozon e an d Carbo n Monoxid e (CO ) Nationa l Ambien t Ai r Qualit yStandard s . (NAAQS ) o n o r afte r Novembe r 15 , 1992, " fro m Michae l H
. Shapiro , Acting Assistan t Administrato r fo r Ai r an d Radiation , t o th e Regiona l Divisio n Directors , Septembe r 17 , 199 3 [N0 Xreasonabl y availabl e contro l technology(RACT ) discussio no npage s 4-5 J and Decembe r 199 3 guidelin e a t sectio n4.4
.P. 3

Th e guidanc e i n thi s memorandu m applie s t o margina l an d abov e ozon e nonattainmen t area s becaus e th e sectio n182(f ) exemptio n i s directe d a t majo r N0 Xstationarysource s onl yi n margina l an

d abov e ozon e nonattainmen t areas . Th e guidanc e doe s no t addres s nonclassifiabl e ozon e nonattainmen t area s (i.e. , transitional , submarginal , d r incomplete/n o dat a areas)
. However , th e EPA' s conformit yrules** 4 als o referenc e th e sectio n 182(f ) exemptio n proces s a s a mean s fo r exempting affecte d area s fromN0 Xconformit yrequirements. 5 Moreover , unde r thes e rules , conformit yapplie s i n al l nonattainmen t an d maintenanc e areas , including th e nonclassifiabl e nonattainmen t areas . Therefore , corresponding guidanc e i s neede d fo r th e applicatio n o f th e sectio n 182(f ) NOxexemptio nreference d i nth e conformit yrule s i n thes e nonclassifiabl e areas . Th e guidanc e documen t entitle d "Conformity ; Genera l Preambl e fo r Exemptio n fromNitroge nOxide s Provisions, " t o b e publishe d i n th e Federa l Register , addresse s ho wEP Agenerall yintend s t o ac t o n request s fo r N0 Xconformit y exemptio n determination s fo r thos e areas , an d shoul d b e consulte d fo r thos e purpose s along wit hthi s guidance
. Ozon e nonattainmen t area s tha t ar e grante d areawid e sectio n 182(f ) exemption s unde r th e approac hdescribe d i nthi s memorandum wil l als o b e exemp t fromth e N0 Xconformit yrequirements
. However , sinc e th e conformit yrequirement s appl yo na nareawid e basis , a sectio n 182(f ) exemptio nfo r anindividua l sourc e (or grou p o f sources ) withi n th e nonattainmen t o r maintenanc e are a woul d no t provid e a sufficien t basi s t o exemp t th e entir e

3 "Criteri a an

d Procedure s fo r Determining Conformit yt o Stat e o r Federa l Implementatio nPlan s o f Transportatio n Plans , Programs , an

d Project s Funde d o r Approve d unde r Title.2 3 U.S.C
. o f th e Federa l Transi t Act, " Novembe r 24 , 199 3 (5 8 FR62188)
. ""Determining Conformit yo f Genera l Federa l Action s t o Stat e o r Federa l Implementatio n Plans ; Fina l Rule, " Novembe r 30 , 199 3 (5 8 F R63214)
. , 5 Th e sectio n 182(f ) exemptio ni s explicitl yreferre d t o and i s describe d i n simila r languag e i n 4 0 CFR51.394(b)(3)(i) , th e "Applicability " sectio n o f th e transportatio nconformit yrule , an d i n th e preambl e (se e 5 8 FR62197 , Novembe r 24 , 1993)
. Th e languag e i s repeate d i n th e provision s o f th e rul e regardin g th e moto r vehicl e emission s budge t tes t [section 51.42 8 (a ) (1. ) (i'i ) ] an d th e "build/no-build " tes t [section s 51.436(e) , 51.438(e)] , althoughsectio n 182(f ) of.th e Ac t i s no t specificall ymentioned
. I n th e genera l conformit yrule , th e sectio n182(f ) NO xexemptio n i s referre d t o i n sectio n51.85 2 (definitiono f "Precursor s o f a criteri a pollutant" ) an d i s discusse d i nth e preambl e (se e 5 8 F R 63240 , Novembe r 30 , 1993)
.P. 4

nonattainmen t o r maintenanc e are a fro mth e N0 Xconformit y requirements
. Sectio n 182(f ) require s State s t o appl yth e sam e requirement s t o majo r stationarysource s o f N0 Xa s ar e applie d t o majo r stationarysource s o f volatil e organi c compounds
. Th e requirement s ar e RAC T an d newsourc e revie w(NSR )
. Th e N0 XRAC T i s require d i n ozon e nonattainmen t area s classifie d a s moderat e and above , a s wel l a s i n al l area s withi n a nozon e transpor t region
. Th e NS Rrule s ar e require d i nozon e nonattainmen t area s classifie d a s margina l an d above , a s wel l a s al l area s withi na n ozon e transpor t region
. Sectio n 182(f ) als o specifie s circumstance s unde r whic hth e newN0 Xrequirement s woul d b e limite d o r woul d no t apply
. Unde r sectio n 182(f)(1)(A) , anexemptio nfromth e N0 X requirement s ma yb e grante d fo r nonattainmen t area s outsid e a n ozon e transpor t regio n i f EP Adetermine s tha t "additiona l reduction s o f [NOx ] woul d no t contribut e t o attainment " o f th e ozon e NAAQ S i n thos e areas . Th e EP Aha s indicate d tha t i n case s wher e a nonattainmen t are a i s demonstrating attainmen t wit h3 consecutiv e year s o f ai r qualit ymonitoring data , withou t havin g implemente d th e sectio n 182(f ) NO xprovisions , i t i s clea r tha t thi s tes t i s me t sinc e "additiona l reduction s o f [NOx ] woul d no t contribut e t o attainment " o f th e NAAQ S i ntha t area . Unde r thi s revise d guidance , a Stat e maysubmi t a petitio n fo r a sectio n 182(f ) exemptio n base d o n ai r qualit ymonitoring dat a showin g attainmen t o f th e ozon e NAAQ S withou t als o havin g t o submi t a redesignatio n reques t o r a maintenanc e pla n wit htha t petition. 6, 7 Th e EPA' s approva l o f th e exemption , i f warranted , woul d b e grante d o n a contingen t basi s (i.e. , th e exemptio nwoul d las t fo r onl ya s long a s th e area' s monitoring dat a continu e t o demonstrat e attainment)
. • I f i t i s subsequentl ydetermine d b yEPAtha t th e are a ha s violate d th e standard , th e sectio n182(f ) exemption , a s o f th e dat e o f th e determination , woul d n o longe r apply
. Th e EPAwoul d

6 Fo r purpose s o f th e NOxexemptio n tes t i nsectio n 182(f)(1)(A ) fo r area s outsid e anozon e transpor t region , EPAi s interpretin g th e term"contribut e t o attainment " t o mea n tha t th e Stat e (or petitioner ) nee d onl yshowwhethe r additiona l reduction s o f NO xwoul d contribut e t o attainmen t o f th e ozon e NAAQS , and no t whethe r suchreduction s woul d contribut e t o attainmen t an

d maintenance
. 7 Th e sectio n 182(f ) exemptio ndoe s no t affec t EPA' s requirement s fo r maintenanc e plans ; th e maintenanc e pla nrequire d fo r redesignatio n mus t stil l addres s N0 Xi naccordanc e wit hEPA guidance
. " "P. 5

notif yth e stat e tha t th e exemptio nn o longe r applies , an dwoul d als o provid e notic e t o th e publi c i n th e Federa l Register
. A determinatio n tha t th e N0 Xexemptio n n o longe r applie s woul dmea n tha t th e are a woul d thereafte r hav e t o addres s an yN0 XNS Ro r N0 X RAC T requirement s tha t mayb e applicabl e unde r sectio n182(f) . Similarly , whil e existing transportatio n plans , transportatio n improvemen t plan s an d pas t conformit ydetermination s woul dnot,be affecte d b

ya determinatio ntha t th e exemptio nn o longe r applies , ne wconformit ydeterminations : woul d hav e t o observ e th e N0 X requirement s o f th e conformit yrule
. Th e Stat e mus t continu e t o operat e a n appropriat e ai r qualit ymonitoring network , i n accordanc e wit h4 0 CF Rpar t 58 , t o verif yth e attainmen t statu s o f th e area . Th e ai r qualit ydat a relie d o nfo r th e abov e determination s mus t b e consisten t wit h4 0 CFRpar t 5 8 requirement s and othe r relevan t EPAguidanc e an d recorde d i n EPA' s Aerometri c Informatio nRetrieva l System (AIRS)
. \

. Sectio n 182(f ) contain s veryfewdetail s regardin g th e administrativ e procedur e fo r acting o nN0 Xexemptio nrequests
. Th e absenc e o f specifi c guideline s b yCongres s leave s EP Awit h discretio n t o establis hreasonabl e procedures , consisten t wit h th e requirement s o f th e Administrativ e Procedur e Ac t (APA)
. Th e EPAbelieve s tha t sectio n 182(f ) set s u p tw o separat e procedure s b

ywhic hth e Agenc ymayac t o nN0 Xexemptio nrequests
. Sectio n 182(f)(1 ) and (2 ) direc t tha t actio n o n N0 Xexemptio n determinatio n request s shoul d tak e plac e "whe n[EPA ] approve s a pla n o r pla n revision. " Thi s languag e appear s t o contemplat e tha t exemptio n request s submitte d unde r thes e paragraph s ar e limite d t o States , sinc e State s ar e th e entitie s authorize d unde r th e Ac t t o submi t plan s o r pla nrevisions
. B ycontrast , sectio n 182(f)(3 ) provide s tha t "persoh[s]" 8 maypetitio n fo r a NO x determinatio n "a t an ytime " afte r th e ozon e precursor?study require d unde r sectio n 185 B o f th e Ac t i s finalized, 9 and give s EPAa limi t o f 6 month s afte r filing t o gran t o r den ysuc h petitions
. Althoughsectio n182(f)(3 ) reference s 182(f)(1) , ther e ar e certai n ke ydifference s i n th e language
. First , individual s maysubmi t petition s unde r paragraph(3 ) "a t an y time " (i.e. , eve n whe n ther e i s n o pla n revisio nfromth e Stat e pendin g a t EPA)
. Second , th e specifi c timeframe fo r EP Aactio n establishe d i n paragrap h(3 ) i s substantiall yshorte r tha nth e timeframe usuall yrequire d fo r State s t o develo p and fo r EP At o tak e actio n o n revision s t o a SIP
. Thes e difference s strongl y sugges t tha t Congres s intende d th e proces s fo r actin g o npersona l petition s t o b e distinct—an d mor e expeditious—fro mth e plan

sectio n 302(e ) o f th e Ac t define s th e term"person " t o includ e States
.

9 Th e fina l sectio n 185 B repor t wa s issued Jul y30 , 1993 ,P. 6

revisio n proces s intende d unde r paragrap h(1)
. Thus , EP A believe s tha t paragrap h(3)' s referenc e t o paragrap h(1 ) encompasse s onl yth e substantiv e test s i nparagraph(1 ) [and , by extension , paragraph(2)] , no t th e requiremen t i n paragrap h(l ) fo r EPAt o gran t exemption s onl ywhe nacting o npla nrevisions
. Th e requirement s o f th e APAappl ywit hrespec t t o th e typ e o f notic e whic hmus t b e provide d regarding EPAactio no nN0 X exemptio n determinations
. Notice-and-commen t rulemakin g i s require d b

yth e APAwhe n EPAactio n involve s no t jus t factual , bu t als o polic yan d lega l consideration s tha t wil l appl ya s a genera l matte r and , thus , i s legislativ e i nnature
. Conversely , whe n EPAactio n ca n properl yb e describe d a s part yspecifi c i n nature , involving consideratio no f primaril yfactua l evidence , notice-and-commen t rulemaking i s no t require d b yth e APA
. I n suc ha case , th e EPAactio n coul d consis t o f th e issuanc e o f a n orde r [se e 5 U.S.C
. section s 551(4)-(7 ) an d 553]
. Give n thes e requirement s o f th e APA , EPAbelieve s tha t unde r eithe r o f th e procedure s establishe d i nsectio n182(f) , wher e th e reques t i s fo r a n entir e are a t o b e exempte d fromth e N0 Xrequirements , th e EPAmus t g o throughnotice-and-commen t rulemaking t o gran t o r den yth e petition
. Wher e a petitio n i s submitte d fo r a n exemptio n determinatio n relating t o a n individua l sourc e (or grou p o f sources ) unde r subsectio n182(f)(3) , EPAmaygran t o r den yth e petitio n througha n orde r transmitte d b ylette r t o th e affecte d sourc e (or sources)
. Th e EPAwil l als o provid e th e publi c wit hnotic e i n th e Federa l Registe r o f th e receip t an d availabilit yo f th e petition , a s wel l a s o f th e EPA' s fina l determination
. - Attachmen t I o f thi s memorandu mi s th e step-by-ste p administrativ e procedur e fo r processing areawid e petitions
. Attachmen t I I i s the ; procedur e fo r processing petition s relatin g t o an individua l sourc e (or grou p o f sources)
. Sectio n 182(f)(3 ) require s tha t EPAgran t o r den ya petition , whethe r areawid e o r sourc e specific , withi n6 month s afte r it s filing
. Wher e th e rulemaking proces s i s followe d (fo r areawid e petitions) , EPAi s awar e tha t th e 6-monthrequiremen t mayb e infeasibl e i n som e cases . However , court s hav e rule d tha t eve n i n instances , suc ha s th e one ' presente d here , wher e a prescribe d timeframe fo r EPAactio n apparentl yconflict s wit hth e requiremen t t o provid e th e publi c wit hadequat e opportunit yfo r notic e an

d comment , th e notic e requiremen t mus t b e met
. Therefore , EPAwil l proces s areawid e exemptio n request s b yP. 7

rulemaking a s expeditiousl ya s practicable , wit hth e inten t o f meetin g th e 6-mont hdeadline
. ^ A s note d earlier , petition s submitte d unde r sectio n 182(f)(3 ) ar e no t require d t o b e submitte d a s SI P revisions
. Consequently , th e Stat e i s no t require d unde r th e Ac t t o hol d a publi c hearin g i n orde r t o petitio nfo r a n areawid e N0 Xexemptio n determinatio n [se e sectio n 110(a)(1 ) and (2)]
. Fo r simila r reasons , i f th e Stat e i s submitting a nareawid e petitio nunde r subsectio n 182(f)(3) , i t i s unnecessaryt o hav e th e Governo r submi t th e petition
. However , becaus e o f th e nee d fo r consistenc ywit hth e AIR S dat a an d th e requirement s o f 4 0 CF R par t 58 , EPAbelieve s that , particularl yi ncase s wher e th e NO x exemptio n reques t (including a reques t fo r exemptio n from th e N0 X requirement s o f th e conformit yrules ) i s base d o n monitorin g data , i f suc hdat a ar e containe d i n a petitio n submitte d b ya perso n othe r tha n th e State , th e petitio nshoul d b e coordinate d wit hth e Stat e ai r agency . Th e Federa l Registe r notic e o f EPAapprova l o r disapprova l o f a State' s petitio n mus t b e signe d b yth e Administrator
. Thi s i s no t a SI P actio n o r a redesignatio n action
. Consequently , thi s actio n i s no t delegate d an d mus t underg o Headquarter s review
. I f some o r al l type s o f petitio n action s becom e delegated , notificatio n wil l b e provided
. Wher e ther e i s a conflict , thi s guidanc e supersede s guidanc e containe d i n EPA' s Septembe r 17 , 199 3 memorandu mand i n section s 2. 2 an

d 4. 4 o f EPA' s Decembe r 16 , 199 3 document
. Pleas e contac t Dou g Gran o (919 ) 541-329 2 o r Kimbe r Scav o (919 ) 541-335 4 regarding an

yquestions
. Attachment s
cc : TomHelm s Stev e Hitt. e Rober t Kellam Phi l Loran g Ric hOssia s Jo e Tikvar t Lydi a Wegma nP. 8

Attachmen t I (Rulemaking fo r Areawid e Petition) 1 (1 ) Th e petitio n i s sen t t o th e appropriat e Regiona l Office s (RO's ) an

d State s b

yth e petitioner
. (2 ) Th e R O send s copie s o f th e petitio nt o Headquarter s (HQ ) Office s fo r technica l an d lega l review
. Thes e office s are : Ozone/Carbo n Monoxid e Program s Branch , AQM D (Dou g Grano) ; Sourc e Recepto r Analysi s Branch , TS D (Ned Meyer) ; Offic e o f Mobil e Source s (Kathry nSargeant) ; an

d Offic e o f Genera l Counse l (Mike Prosper)
. (The petition should be sent immediatelyupon receipt.) (3 ) Th e R O evaluate s th e demonstratio nan d make s th e initia l determinatio n a s t o whethe r th e petitio n shoul d b e grante d o r denie d along wit hth e supporting rationale
. Th e R O shoul d consul t wit hth e abov e H Q Office s an d affecte d '.States
. ',.-• • (4 ) Th e R O prepare s a Federa l Registe r (FR ) notic e fo r th e Administrator' s signatur e tha t propose s t o gran t o r den yth e petition
. A

- notic e tha t propose s t o gran t a nexemptio n o n a contingen t basi s (for area s outsid e th e ozon e transpor t regio n tha t hav e ai r qualit ymonitorin g dat a showing attainment ) mus t als o propos e tha t th e exemptio nwoul d n o longe r appl yi f EP

Asubsequentl ydetermine s tha t a violatio n o f th e ozon e standard ha s occurred
. Tha t proposa l mus t specif ytha t th e N0 Xrequirement s o f th e conformit yrule s woul d appl yt o newconformit ydeterminations , an d th e amoun t o f tim e th e Stat e woul d hav e t o submi t an yapplicabl e sectio n 182(f ) N0 XNS Rand/o r RAC T rule s i n th e even t tha t EPAdetermine s a t some futur e tim e tha t a violatio n occurred
. Th e evaluatio n unde r step 3 abov e mus t b e include d i neithe r th e F Rnotic e o r a technica l suppor t documen t tha t i s include d i n th e docket
. (The ROshould prepare and

complete, the FRproposal

within 2 monthsafter receipt., taking into account anyHQcommentson the petition or the RO evaluation.) 2 (5 ) The-F Rproposa l i s sen t t o H Q reviewer s fo r concurrence . (HQ 

### should finishthe reviewwithin 1 monthafter receipt.)

'Thi s proces s assume s n o delegatio n t o th e Regiona l Administrator
. - Petition s tha t ar e base d o nanare a havin g dat a indicating tha t i t ha s alread

yattaine d th e ozon e standar d shoul d generall y b e processe d i n les s time
.P. 9

(6 ) Afte r an yrevisio n an d concurrenc e b yH Q reviewers , th e F R proposa l i s sen t t o th e Administrato r fo r signatur e an d i s 

### then published
. (There should be at least 1 monthfor

a formal comment

period after FRpublication.) (7 ) Th e R O prepare s a F Rnotic e o f fina l rulemakin g tha t addresse s comment s receive d an d take s fina l actio n t o gran t

. (full yo r o n a contingen t basis ) o r t o den yth e petition
. Th e R O send s th e notic e t o th e H Q reviewer s note d abov e 

### unde r Ste

p 2
. (HQshould

finishthe reviewwithin 1 month after receipt.) (8 ) Afte r anyrevisio n and.concurrenc e byH Q reviewers , th e F R fina l notic e i s sen t t o th e Administrato r fo r signatur e an d i s the n published
.



# JP.1 0

Attachmen t II 1 [Lette r o f Approval/Denia l fo r Individua l Sourc e (o r Grou p o f Sources ) Petition ] (1 ) Th e petitio n i s sen t t o th e affecte d State s an d RO' s byth e petitioner
. (2 ) Th e R O prepare s a F Rnotic e o f availabilit yan d send s i t directl yt o th e F Rafte r Regiona l Administrato r signature
. Thi s notic e doe s no t indicat e EPA' s intende d action
. Th e EP Anotic e shoul d solici t comments
. However , becaus e th e actio n i s no t a rulemaking , ther e i s n o obligatio n o n EPA' s par t t o respon d t o th e comment s whe n takin g fina l action
. Th e EP Aprovide s affecte d State s a 3-mont hperio d t o mak e a recommendatio n t o EPA
. (3 ) Th e R O send s a cop yo f th e petitio n t o th e H Q Office s liste d i n Attachmen t I , Ste p 2
. (4 ) Th e R O make s th e initia l determinatio n a s t o whethe r th e petitio n shoul d b e grante d o r denie d i n consultatio n wit h affecte d States
. Th e determinatio n i s incorporate d byth e R O int o a lette r fo r signatur e o f th e Administrator , alon g wit hth e supportin g rationale
. (5 ) Th e draf t lette r i s sen t t o H Q reviewer s fo r concurrence . (6 ) Afte r concurrenc e byH Q reviewers , th e fina l lette r i s prepare d byth e R O an d sen t t o th e Administrato r fo r signatur e ("cc " t o th e affecte d States)
. (7 ) Th e R O prepare s a secon d F Rnotic e tha t include s th e lette r signe d byth e Administrato r t o th e petitione r an d send s th e notic e directl yt o th e F Rafte r Regiona l Administrato r signature
.

'Thi s proces s assume s n o delegatio n t o th e Regiona l Administrator
.