[Federal Register Volume 62, Number 48 (Wednesday, March 12, 1997)]
[Proposed Rules]
[Pages 11395-11405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-6082]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[VA 045-5018; FRL-5698-3]


Approval and Promulgation of Air Quality Implementation Plans; 
Virginia; 15 Percent Rate of Progress Plan for the Metropolitan 
Washington, DC Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of proposed rulemaking.

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SUMMARY: EPA is proposing conditional interim approval of the State 
Implementation Plan (SIP) revision submitted by the Commonwealth of 
Virginia for the Northern Virginia portion of the Metropolitan 
Washington, DC serious ozone nonattainment area to meet the 15 percent 
rate-of-progress (ROP) requirements (also known as the 15% plan) of the 
Clean Air Act. EPA is proposing a conditional interim approval, because 
the 15% plan, submitted by the Commonwealth of Virginia, will result in 
significant emission reductions from the 1990 baseline emissions of 
volatile organic compounds (VOCs) which contribute to the formation of 
ground level ozone and, thus, will improve air quality. However, the 
plan as submitted requires additional documentation to demonstrate 
affirmatively that the 15% emission reduction target has been achieved. 
This action is being taken under section 110 of the Clean Air Act.

DATES: Comments on this proposed action must be postmarked by April 11, 
1997.

ADDRESSES: Written comments may be mailed to David L. Arnold, Chief, 
Ozone/Carbon Monoxide, and Mobile Sources Section, Mailcode 3AT21, U.S. 
Environmental Protection Agency--Region III, 841 Chestnut Building, 
Philadelphia, Pennsylvania, 19107. Copies of the documents relevant to 
this action are available for public inspection during normal business 
hours at the Air, Radiation, and Toxics Division, U.S. Environmental 
Protection Agency, Region III, 841 Chestnut Building, Philadelphia, 
Pennsylvania 19107. Persons interested in examining these documents 
should schedule an appointment with the contact person (listed below) 
at least 24 hours before

[[Page 11396]]

the visiting day. Copies of the documents relevant to this action are 
also available at the Virginia Department of Environmental Quality, 629 
East Main Street, Richmond, Virginia 23219.

FOR FURTHER INFORMATION CONTACT: Kristeen Gaffney, Ozone/Carbon 
Monoxide and Mobile Sources Section (3AT21), USEPA--Region III, 841 
Chestnut Building, Philadelphia, Pennsylvania 19107, or by telephone 
at: (215)566-2092. Questions may also be addressed via e-mail, at the 
following address: Gaffney.K<a href="/cdn-cgi/l/email-protection#9eecf7edeafbfbf0defbeefff3fff7f2b0fbeeffb0f9f1e8"><span class="__cf_email__" data-cfemail="9ae8f3e9eefffff4daffeafbf7fbf3f6b4ffeafbb4fdf5ec">[email protected]</span></a> (Please note that 
only written comments can be accepted for inclusion in the docket.)

SUPPLEMENTARY INFORMATION:

I. Background

    Section 182(b)(1) of the Clean Air Act, as amended in 1990 (the 
Act), requires ozone nonattainment areas classified as moderate or 
above to develop plans to reduce VOC emissions by 15% from 1990 
baseline levels in the area while accounting for growth from 1990 to 
1996. VOCs emitted during the summertime months contribute to the 
formation of ground level ozone.
    The Metropolitan Washington, DC area is classified as a serious 
ozone nonattainment area and is subject to the 15% plan requirement. 
The Metropolitan Washington, DC ozone nonattainment area consists of 
the entire District of Columbia (''the District''), five counties in 
the Northern Virginia area and five counties in Maryland. The Northern 
Virginia portion of the nonattainment area consists of the counties of 
Arlington, Fairfax, Loudoun, Prince William and Stafford, and the 
cities of Alexandria, Falls Church, Manassas, Manassas Park and 
Fairfax. These areas are subject to Virginia's 15% plan.
    The Act sets limitations on the creditability of certain control 
measures towards reasonable further progress. Specifically, states 
cannot take credit for reductions achieved by Federal Motor Vehicle 
Control Program (FMVCP) measures (e.g. new car emissions standards) 
promulgated prior to 1990; or for reductions stemming from regulations 
promulgated prior to 1990 to lower the volatility (i.e., Reid Vapor 
Pressure (RVP)) of gasoline. Furthermore, the Act does not allow credit 
towards ROP for post-1990 corrections to existing motor vehicle 
inspection and maintenance (I/M) programs or corrections to reasonably 
available control technology (RACT) rules, since these programs were 
required to be in-place prior to 1990. In addition to these 
restrictions, a creditable measure must be either in the approved SIP, 
result from a national rule promulgated by EPA or be contained in a 
permit issued under Title V of the Act. Any measure must result in 
real, permanent, quantifiable and enforceable emission reductions to be 
creditable toward the 15% goal.
    Virginia, Maryland and the District all must demonstrate reasonable 
further progress for the Metropolitan Washington DC nonattainment area. 
The Commonwealth of Virginia, State of Maryland and the District of 
Columbia in conjunction with municipal planning organizations 
collaborated on a coordinated, 15% plan for the Metropolitan 
Washington, DC nonattainment area (regional 15% plan). This was done 
with the assistance of the regional air quality planning committee, the 
Metropolitan Washington Air Quality Committee (MWAQC), and the local 
municipal planning organization, the Metropolitan Washington Council of 
Governments (MWCOG), to ensure coordination of air quality and 
transportation planning. The Act provides for interstate coordination 
for multi-state nonattainment areas. Because the interstate municipal 
planning organization involved, MWCOG, meets the requirements of 
section 174(c) of the Act, EPA has determined that the relevant 
interstate coordination requirements have been fulfilled. In the 
absence of an agreement to prepare a nonattainment area-wide plan, each 
state could have developed and submitted a SIP revision to obtain the 
15% ROP requirement independent of the others.
    Although the plan was developed by a regional approach, each 
jurisdiction is required to submit its portion of the 15% plan to EPA 
as a revision to its SIP. The 15% plan for the Virginia portion of the 
nonattainment area was submitted as a SIP revision by the Virginia 
Department of Environmental Quality (VADEQ) on May 15, 1995. Because 
the ROP requirements such as the 15% plan affect transportation 
improvement plans, municipal planning organizations have historically 
been involved in air quality planning in the Metropolitan Washington, 
DC area. As explained in further detail below, the regional 15% plan 
determined the regional target level, regional projections of growth 
and the total amount of creditable reductions required under the 15% 
requirement in the entire Metropolitan Washington, DC ozone 
nonattainment area. The three jurisdictions, Maryland, Virginia and the 
District all agreed to apportion this total amount of required 
creditable reductions among themselves. EPA is taking action today only 
on Virginia's 15% plan submittal, which addresses only Virginia's 
responsibility for the 15% ROP plan in the Metropolitan Washington, DC 
area.
    On January 30, 1997 Virginia submitted a draft revised regional 15% 
plan for its portion of the Metropolitan Washington, DC area. Virginia 
scheduled a public hearing on the proposed revisions to its 15% plan on 
February 27, 1997. EPA is taking action today on Virginia's May 15, 
1995 submittal of its 15% plan with the knowledge that Virginia will be 
making a formal SIP revision revising that 15% plan.
    EPA has reviewed Virginia's May 15, 1995 15% plan submittal and has 
identified several deficiencies, which prohibit its full approval. A 
detailed discussion of these deficiencies is included below in the 
``ANALYSIS'' portion of this rulemaking action, and also in the 
Technical Support Document (TSD) prepared by EPA for this action. 
Copies of the TSD are available, upon request, from the EPA Regional 
Office listed in the ADDRESSES section of this notice. Due to these 
deficiencies, it cannot be affirmatively determined that the 
Commonwealth's plan achieves the 15% ROP target for reduction in VOCs. 
Therefore, EPA is proposing conditional interim approval of this plan.

II. Analysis of the SIP Revision

A. Base Year Emissions Inventory

    The baseline from which states must determine the required 
reductions for 15% planning is the 1990 base year emissions inventory. 
The relevant portion of the inventory is broken down into several 
emission source categories: Stationary, area, on-road mobile, and off-
road mobile. Virginia submitted a formal SIP revision containing their 
1990 base year emissions inventory on November 20, 1992 and submitted 
revisions to that submittal on November 1, 1993 and April 3, 1995. EPA 
approved Virginia's 1990 base year inventory submittals on September 
16, 1996 (61 FR 48632). This full approval establishes the 1990 base 
year inventory for the purposes of calculating the 15% ROP requirement.

B. Growth in Emissions Between 1990 and 1996

    EPA has interpreted the Act to require that reasonable further 
progress towards attainment of the ozone standard must be obtained 
after offsetting any growth expected to occur over that period. 
Therefore, to meet the 15% plan

[[Page 11397]]

requirement, a state must enact measures achieving sufficient emissions 
reductions to offset projected growth in VOC emissions, in addition to 
achieving a 15% reduction of VOC emissions from baseline levels. Thus, 
an estimate of emissions growth from 1990 to 1996 is necessary for 
determining whether the 15% reduction target has been achieved. Growth 
is calculated by multiplying the 1990 base year inventory by acceptable 
forecasting indicators. Growth must be determined separately for each 
source, or by source category, since sources typically grow at 
different rates. EPA's inventory preparation guidance recommends the 
following indicators, as applied to emission units in the case of 
stationary sources or to a source category in the case of area sources, 
in order of preference: Product output, value added, earnings, and 
employment. Population can also serve as an acceptable surrogate 
indicator.
    Virginia's 15% plan contains growth projections for point, area, 
on-road motor vehicle, and non-road vehicle source categories. For a 
detailed description of the growth methodologies used by the 
Commonwealth, please refer to the TSD for this action.
    To estimate growth for area sources and non-road mobile sources, 
Virginia used acceptable growth factor surrogates such as population, 
employment and vehicle miles traveled (VMT). The travel demand computer 
model, Mobile5.0a was used to project growth for on-road sources. The 
Commonwealth's methodology for selecting growth factors and applying 
them to the 1990 base year emissions inventory to estimate growth in 
emissions in area, on-road mobile, and off-road mobile sources from 
1990 to 1996 is approvable.
    EPA, however, disagrees with the growth projections for the point 
source category. Virginia's 15% plan projected that point source 
emissions would remain constant for the period 1990 to 1996 because 
Virginia assumes that new source review (NSR) offsets and special rules 
for modifications of sections 182(c)(6), (7), (8), and (10) of the Act 
would prevent an increase in point source emissions. EPA does not agree 
with this assumption for the following reasons:
    1. The revised NSR rules for source modifications were not 
effective until November 15, 1992. Therefore, there may have been 
modifications of sources of less than the significance level of 40 tons 
per year (TPY) from 1990 to 1992. A potential 40 TPY increase could 
represent a 0.1 to 0.15 tons per season day (TPD) potential increase 
which is significant compared to the 1990 area-wide rate-of-progress 
(i.e. 1990 base year) inventory point source emissions of 18 TPD.
    2. The revised NSR rules do not apply to cumulative modifications 
at a source of less than 25 TPY (de minimis modifications) nor to 
construction of new sources of less than 25 TPY potential emissions. 
For inventory purposes, point sources are defined as stationary sources 
with the potential to emit 10 TPY or more.
    3. The NSR offset-related assumption does not address increases in 
emissions from sources that operated at less than 100% capacity during 
1990 that can legally increase their typical ozone season day emissions 
by increasing the average daily production without triggering NSR 
offset requirements.
    EPA cannot fully approve Virginia's point source growth projection 
based upon the assumption that the NSR program would hold point source 
emissions constant. As a condition of final approval, Virginia will 
have to remedy this deficiency and revise the 15% plan to:
    1. Project growth in point source emissions between 1990 and 1996 
using growth factors based upon an adequate surrogate in accordance 
with the applicable EPA guidance documents. Such a projection may be 
based upon more recent emissions data than 1990, e.g. from current 
emission statements where available; and
    2. Adopt and implement, if necessary, additional creditable 
measures to ensure that growth in point source emissions from 1990 to 
1996 is offset.
    It is relevant to note that Virginia has included growth in point 
sources, based on actual growth between 1990 and 1996, in the January 
30, 1997 revised draft regional 15% plan subject to public hearing on 
February 27, 1997.

C. Calculation of Target Level Emissions

    The regional 15% plan calculates a target level of emissions to 
meet the 15% ROP requirement over the entire nonattainment area. The 
regional 15% plan projects emissions growth from 1990 to 1996 and 
apportions among the three jurisdictions the amount of creditable 
emission reductions that each jurisdiction must achieve in order for 
the entire nonattainment area to achieve a 15% reduction in VOCs net of 
growth. Each jurisdiction then adopted the regional plan, which 
identified the amount of creditable emission reductions which that 
jurisdiction must achieve for the regional plan to get 15% accounting 
for any growth. The regional plan calculated the ``target level'' of 
1996 VOC emissions, in accordance with EPA guidance.
    EPA has interpreted section 182(b) of the Act to require that the 
base year VOC emission inventory be adjusted to account for reductions 
that would occur from the pre-1990 FMVCP and RVP programs. First, the 
regional plan calculated the non-creditable reductions from the pre-
1990 FMVCP and RVP programs and subtracted those emissions from the 
1990 ROP inventory. This yields the 1990 ``adjusted base year 
inventory''. The target level is the 1990 rate-of-progress inventory 
less the sum of the following:
    1. 15% of the adjusted base year inventory,
    2. The sum of the non-creditable reductions from the pre-1990 FMVCP 
and RVP programs,
    3. Any reductions resulting from post-1990 corrections to existing 
motor vehicle inspection and maintenance (I/M) programs or corrections 
to RACT rules.
    There were no post 1990 emission reductions attributed to RACT 
corrections or I/M corrections in the Metropolitan Washington, DC 
nonattainment area, and the regional plan correctly claimed zero 
reductions in the target level calculation.
    The table below summarizes the calculations for the 1996 VOC target 
level for the entire Metropolitan Washington, DC ozone nonattainment 
area.

             Calculation of Required Reductions for the Washington, DC Nonattainment Area's 15% Plan            
                                 [Washington, DC Area Target Level Calculation]                                 
----------------------------------------------------------------------------------------------------------------
                                                                                                     Washington,
                                                           District of    Maryland      Virginia       DC Area  
                                                            Columbia                                   Totals   
----------------------------------------------------------------------------------------------------------------
1. 1990 ROP Inventory...................................         65.9         249.9         222.8         538.6 
2. 1990 Adjusted Base Year Inventory....................         56.3         216.9         190.7         463.9 
3. FMVCP/RVP Adjustment (Line 1 less Line 2)............          9.60         33.00         32.10         74.70

[[Page 11398]]

                                                                                                                
4. 15% Reduction Requirement=15% of Adjusted Base Year                                                          
 (.15 x Line 4).........................................          8.45         32.54         28.61         69.6 
5. RACT Corrections.....................................          0             0             0             0   
6. I/M Corrections......................................          0             0             0             0   
7. Total 15% & Noncreditable Reductions (Sum of lines 3,                                                        
 4, 5 & 6)..............................................         18.05         65.54         60.71        144.30
8. Projected Growth 1990 to 1996........................          5.20         29.10         29.00         63.60
9. Required Regional Emission Reductions (15% plus                                                              
 growth--line 4 plus line 8)............................  ............  ............  ............        132.90
10. 1996 Regional Target Level (line 1 less line 7).....  ............  ............  ............        394.30
11. Apportioned State Emission Reduction................         12.3          60.7          59.9         132.90
12. Total Reductions Claimed in 15% Plan................         12.7          62.7          61.8         137.20
----------------------------------------------------------------------------------------------------------------

    The emission reduction required to meet the 15% ROP requirement 
equals the sum of 15% of the adjusted base year inventory and any 
reductions necessary to offset emissions growth projected to occur 
between 1990 and 1996, plus reductions that resulted from corrections 
to the I/M or VOC RACT rules that were required to be in-place before 
1990. The target level, Line 10 of the Table, is the 1990 ROP inventory 
less the base 15% reduction (Line 4 of the Table) and less all 
noncreditable emission reductions (Lines 3, 5 and 6 of the Table). The 
Metropolitan Washington D.C. area's regional target level is 394.3 TPD. 
EPA believes that the regional target level for the Metropolitan 
Washington D.C. nonattainment area has been properly calculated in 
accordance with EPA guidance.

D. Control Strategies in Virginia's 15% Plan

    The specific measures adopted (either through state or federal 
rules) are addressed, in detail, in Virginia's 15% plan. The following 
is a brief description of each control measure that Virginia has 
claimed credit for in the submitted 15% plan, as well as the results of 
EPA's review of the use of that strategy towards the Act's 15% ROP 
requirement.
Reformulated Gasoline (RFG)
    Section 211(k) of the Act requires that, beginning January 1, 1995, 
only RFG be sold or dispensed in ozone nonattainment areas classified 
as severe or above. Gasoline is reformulated to reduce combustion by-
products and to produce fewer evaporative emissions. Section 211(k)(6) 
of the Act allows other nonattainment areas to ``opt in'' to the 
program. Virginia submitted a request to opt-in to the RFG program, 
which EPA approved on December 23, 1991. The Commonwealth claims a 
reduction of 9.3 tons/day from its 1996 projected uncontrolled on-road 
mobile source emissions using the Mobile5.0a model to determine the 
emission benefit. EPA has reviewed the Virginia submittal's calculation 
of the benefits for this measure and finds that the amount of reduction 
Virginia claims is creditable, but has not been documented as required 
by the Act.
    In order to address these documentation and modeling issues, as 
well as the requirements of the National Highway Systems Designation 
Act of 1995 (NHSDA), EPA is requiring Virginia to recalculate the 
mobile source credits for the enhanced I/M program, RFG and FMVCP (Tier 
1). The benefits from RFG and Tier 1 must not be separated out on a 
tons per day basis for each control measure, but rather all mobile 
source measures must be included in the 1999 target level calculation 
run. This remodeling assessment will remove any potential for ``double-
counting'' the credit accorded to individual mobile source measures. 
While EPA will require Virginia to document and remodel the credits 
derived from RFG under the remodeling condition cited in the enhanced 
I/M section of this rule, EPA has no reason to dispute at this time 
that the 9.3 tons/day emission benefit claimed in Virginia's 15% plan 
from the RFG program is creditable.
Off-Road Use of Reformulated Gasoline
    The use of RFG will also result in reduced emissions from off-road 
engines such as motors for recreational boats and lawn mower engines, 
commonly used in summer months. Virginia claims a reduction of 1.2 
tons/day from its 1996 projected uncontrolled off-road mobile source 
emissions. Virginia used guidance provided on August 18, 1993 by EPA's 
Office of Mobile Sources on the VOC emission benefits for non-road 
equipment which are in a nonattainment area that uses Federal Phase I 
RFG. Virginia has correctly used the guidance to quantify the VOC 
emission reductions for this measure. EPA has determined that the 1.2 
tons/day emission benefit claimed in Virginia's 15% plan is creditable.
Post 1990 Federal Motor Vehicle Control Program (Tier I)
    EPA promulgated a national rule establishing ``new car'' standards 
for 1994 and newer model year light-duty vehicles and light-duty trucks 
on June 5, 1991 (56 FR 25724). Since the standards were adopted after 
the Act was amended in 1990, the resulting emission reductions are 
creditable toward the 15% reduction goal. Due to the three-year phase-
in period for this program and the associated benefits stemming from 
fleet turnover, the reductions prior to 1996 are somewhat limited. 
Virginia claimed a reduction of 1.1 tons/day from Tier 1 using the 
Mobile5.0a model to determine the emission benefits. EPA has reviewed 
the methodology used by Virginia in calculating of the benefits for 
this measure and finds that the amount of reduction Virginia claims is 
creditable, but has not been documented as required by the Act.
    In order to address these documentation and modeling issues, as 
well as the requirements of the NHSDA, EPA is requiring Virginia to 
recalculate the mobile source credits for enhanced I/M, RFG and Tier 1. 
The benefits from RFG and Tier 1 must not be separated out on a tons 
per day basis for each control measure, but rather all mobile source 
measures must be included in the 1999 target level calculation run. 
This remodeling assessment will remove any potential for ``double-
counting'' the credit accorded to individual mobile source measures. 
While EPA will require Virginia to remodel the credits derived from 
Tier 1 under the remodeling condition cited in the enhanced I/M section 
of this rule, EPA has no reason to dispute at this time that the 1.1 
tons/day emission benefit claimed by Virginia in its 15%

[[Page 11399]]

plan from the Tier 1 program is creditable.
Architectural and Industrial Maintenance Coatings (AIM)
    In EPA's most recent policy memorandum on AIM credits, ``Update on 
the Credit for the 15 Percent Rate-of-Progress Plans for Reductions 
from the Architectural and Industrial Maintenance (AIM) Coatings 
Rule'', dated March 7, 1996, EPA allowed states to claim a 20% 
reduction of total AIM emissions from the national rule. Virginia 
claimed a 20% reduction in AIM emissions under its 15% plan, which is a 
reduction of 4.1 tons/day from their 1996 projected uncontrolled AIM 
coating emissions. In the March 7, 1996 memorandum, EPA allowed states 
to continue to claim the 20% reduction of total AIM emissions from the 
national rule in their 15% plans although the emission reductions were 
not expected to occur until April 1997. As a result of legal challenges 
to the proposed national rule, EPA has negotiated a compliance date of 
no earlier than January 1, 1998. Even though the promulgation date for 
this rule is now months beyond the end of 1996, it is EPA's intention 
to still allow the amount of credit specified for the AIM rule in the 
memorandum in states'' 15% plans. EPA believes this is justified in 
light of the significant delays in proposing the rule. Furthermore, EPA 
has determined that the Commonwealth has a significantly limited 
ability to effectuate reductions from this measure through the state 
adoption process any sooner than EPA's rulemaking schedule. If this 
final rule does not provide the amount of credit that Virginia claims 
in its 15% plan, the Commonwealth is responsible for developing 
measures to make up the shortfall.
    Use of emissions reductions from EPA's expected national AIM rule 
is acceptable towards the 15% plan target. Therefore, the 4.1 tons/day 
claimed in Virginia's 15% plan are creditable.
Consumer and Commercial Products
    Section 183(e) of the Act required EPA to conduct a study of VOC 
emissions from consumer and commercial products and to compile a 
regulatory priority list. EPA is then required to regulate those 
categories that account for 80% of the consumer product emissions in 
ozone nonattainment areas. Group I of EPA's regulatory schedule lists 
24 categories of consumer products to be regulated by national rule, 
including personal, household, and automotive products. EPA intends to 
issue a final rule covering these products in the near future. EPA 
policy allows states to claim up to a 20% reduction of total consumer 
product emissions towards the ROP requirement. Virginia claimed a 20% 
reduction or the equivalent reduction of 1.4 tons/day from their 1996 
projected uncontrolled consumer and commercial products emissions in 
its 15% plan. For the reasons discussed above under the AIM rule 
regarding delayed implementation of national rules, EPA has determined 
that the 1.4 tons/day projected reduction in Virginia's 15% plan is 
creditable. If this final rule does not provide the amount of credit 
that Virginia claims in its 15% plan, the Commonwealth is responsible 
for developing measures to make up the shortfall.
Automobile Refinishing
    In a November 29, 1994 memorandum, ``Credit for the 15 Percent 
Rate-of-Progress Plans for Reductions from the Architectural and 
Industrial Maintenance (AIM) Coating Rule and the Autobody Refinishing 
Rule'', EPA set forth policy on the creditable reductions to be assumed 
from the national rule for auto body refinishing. That memorandum 
allowed for a 37% reduction from current emissions with an assumption 
of 100% rule effectiveness (presuming the coating application 
instructions were being followed). Virginia followed EPA's guidance to 
determine the creditable emissions from this rule and claimed a 
reduction of 2.1 tons/day from their 1996 projected uncontrolled auto 
body emissions in its 15% plan. For the reasons discussed above under 
the AIM rule regarding delayed implementation of national rules, the 
EPA has determined that the 2.1 tons/day projected reduction in 
Virginia's 15% plan is creditable. If this final rule does not provide 
the amount of credit that Virginia claims in its 15% plan, the 
Commonwealth is responsible for developing measures to make up the 
shortfall.
Stage I Vapor Recovery
    Stage I vapor recovery is a control measure which substantially 
reduces VOC emissions during the process of filling gasoline storage 
tanks at gasoline stations. This measure can be applied in newly 
designated nonattainment areas after the 1990 Amendments to the Act. In 
the Virginia portion of the Metropolitan Washington D.C. nonattainment 
area, Stage I is a creditable measure in Loudoun and Stafford counties 
because Stage I was not required in these counties before 1990. The 
measure requires ``balanced submerged'' filling of gasoline storage 
tanks at gasoline service stations.
    EPA policy allows emission reduction credits achieved in areas 
implementing Stage I control measures post 1990 to be creditable toward 
15%. Virginia estimates that this rule would result in a reduction of 
0.5 TPD from Stage I in Stafford and Loudoun Counties. The 0.5 tons/day 
projected reduction in Virginia's 15% plan is creditable.
Stage II Vapor Recovery
    Section 182(b)(3) of the Act requires all owners and operators of 
gasoline dispensing systems in moderate and above ozone nonattainment 
areas to install and operate a system for gasoline vapor recovery 
(known as Stage II) of emissions from the fueling of motor vehicles. 
Stage II vapor recovery is a control measure which substantially 
reduces the VOC emissions during the refueling of motor vehicles at 
gasoline service stations. The Stage II vapor recovery nozzles at 
gasoline pumps capture the gasoline-rich vapors displaced by liquid 
fuel during the refueling process.
    On November 5, 1992, Virginia submitted a revision to its SIP to 
require the Stage II controls in all counties of the Virginia portion 
of the Metropolitan Washington DC ozone nonattainment area. The 
revisions to Virginia's Stage I and Stage II rule, Rule 120-04-37 
``Petroleum Liquid Storage and Transfer Operations'', were effective 
January 1, 1993. EPA approved rule 120-04-37 into the Virginia SIP on 
June 23, 1994 [59 FR 32353].
    Virginia had no pre-1990 Stage II controls in its portion of the 
Metropolitan Washington DC nonattainment area. Stage II is a creditable 
measure in counties where these controls were not required before 1990. 
Virginia estimates that this control measure will result in a reduction 
of 6.8 TPD from the 1996 projected baseline of 10.1 TPD. The Virginia 
15% plan states that Virginia used the Mobile5.0a model in conjunction 
with gasoline throughput to determine the creditable emission 
reduction. For this mobile source measure, the Commonwealth submitted 
limited documentation with regard to the Mobile5.0a runs and the 
calculations done to determine credit. However, EPA has no reason to 
dispute Virginia's methodology. Therefore, EPA is proposing to credit 
the claimed mobile emission reductions for Stage II. This measure and 
the 6.8 tons/day is creditable toward the 15% requirement of Virginia's 
15% plan.

[[Page 11400]]

Transportation Control Measures (TCMs)
    TCMs are strategies to both reduce vehicle miles traveled (VMT) and 
decrease the amount of emissions per VMT. TCMs are considered an 
essential element of control strategies for nonattainment areas. 
Section 108(f)(1)(A) of the Act classifies TCMs as programs for 
improved transit, traffic flow, fringe parking facilities for multiple 
occupancy transit programs, high occupancy or share-ride programs, and 
support for bicycle and other non-automobile transit. Virginia's 
measures include TCM projects programmed between fiscal years 1994-1999 
in the transportation improvement plan (TIP) under the Congestion 
Mitigation and Air Quality (CMAQ) Improvement Program and funded for 
implementation by 1996 in the Metropolitan Washington D.C. region. CMAQ 
provides funding for transportation related projects and programs 
designed to contribute to the attainment of air quality standards. TCMs 
are considered acceptable measures for states to use to achieve 15% 
reductions. EPA guidance requires that TCMs meet the following 
conditions to be creditable for the 15% plans: (1) A description of the 
measure; (2) evidence that the measure was adopted by the jurisdictions 
with legal authority to execute the measure; (3) evidence that funding 
is available to implement the measure; (4) evidence that all approvals 
have been obtained; (5) evidence that a complete schedule to plan, 
implement and enforce the measure has been adopted by the implementing 
agencies; and (6) a description of any monitoring program to evaluate 
the measure's effectiveness.
    Virginia provided the required evidence in the plan submittal for 5 
TCM projects with a total combined emissions benefit of 0.8 tons/day. 
Virginia used acceptable methodology for calculating the emissions 
benefit for the TCMs. The TCMs were all programmed and funded in the 
Washington Metropolitan Region's Fiscal Year 1994-1999 TIP. EPA has 
determined that the 0.8 tons/day are creditable.
Seasonal Restrictions on Open Burning
    This measure prohibits the open burning of clean burning 
construction waste, debris waste and demolition waste in the Virginia 
portion of the Metropolitan Washington D.C. nonattainment area during 
the peak ozone season months of June, July and August. Virginia 
submitted revisions to its open burning regulation (120-04-40) for SIP 
approval on April 26, 1996. The revisions to rule 120-04-40 were 
adopted by the Commonwealth on December 19, 1995 and effective April 1, 
1996. In a separate notice in today's Federal Register, EPA is 
approving the revisions to Virginia's rule 120-04-40 for inclusion into 
the SIP.
    Virginia calculated that this rule would result in a reduction of 
2.6 tons/day. The calculation of emission reduction benefits considered 
a rule compliance factor of 80%, which is acceptable. EPA has 
determined that the 2.6 tons/day projected reduction in Virginia's 15% 
plan is creditable.
Enhanced Vehicle Inspection and Maintenance (I/M) Program
    Most of the 15% SIPs originally submitted to the EPA contained 
enhanced I/M programs because this program achieves more VOC emission 
reductions than most, if not all other, control strategies. However, 
because most states experienced substantial difficulties with these 
enhanced I/M programs, only a few states are currently actually testing 
cars using their original enhanced I/M protocols.
    In the case of the Virginia portion of the Metropolitan Washington 
DC nonattainment area, Virginia has submitted a 15% SIP that would 
achieve the amount of reductions needed from enhanced I/M by November 
1999. On March 27, 1996, Virginia submitted an enhanced I/M SIP 
revision that calls for enhanced I/M program implementation in counties 
in the Washington DC nonattainment area and Fauquier County. The 
Virginia enhanced I/M program is a biennial program with implementation 
required to begin no later than November 15, 1997. The enhanced I/M 
submittal consists of its enabling legislation, a description of the 
enhanced I/M program, proposed regulations, and a good faith estimate 
that includes the Commonwealth's basis in fact for emission reductions 
claimed from the enhanced I/M program. On November 6, 1996, EPA 
proposed conditional, interim approval of Virginia's March 27, 1996 
enhanced I/M SIP revision (61 FR 57343).
    The proposed conditional interim approval listed numerous minor and 
major deficiencies and required Virginia to submit a letter to EPA 
within 30 days committing to correct the deficiencies. Virginia 
complied with this provision of the proposed notice, and submitted a 
letter dated December 4, 1996, committing to meet the requirements of 
full approval outlined in the November 6, 1996 proposed rulemaking. 
Full approval of Virginia's 15% plan is contingent on Virginia 
satisfying the conditions of the final conditional interim approval of 
its enhanced I/M SIP by a date certain within one year of final 
conditional interim approval, and receiving final full EPA approval of 
its enhanced I/M program. If Virginia corrects the deficiencies by that 
date, and submits a new enhanced I/M SIP revision, EPA will conduct 
rulemaking to approve that revision. If Virginia fails to fulfill a 
condition required for approval, and its enhanced I/M program converts 
to a disapproval, then the conditional interim approval of Virginia's 
15% plan SIP would also convert to a disapproval.
    In September 1995, EPA finalized revisions to its enhanced I/M rule 
allowing states significant flexibility in designing enhanced I/M 
programs appropriate for their needs (60 FR 48029). Subsequently, 
Congress enacted the NHSDA, which provides states with additional 
flexibility in determining the design of enhanced I/M programs. The 
substantial amount of time needed by states to re-design enhanced I/M 
programs in accordance with the guidance contained within the NHSDA, 
secure state legislative approval when necessary, and set up the 
infrastructure to perform the testing program has precluded states that 
revise their enhanced I/M programs from obtaining emission reductions 
from such revised programs by November 15, 1996.
    Given the heavy reliance by many states upon enhanced I/M programs 
to help achieve the 15% VOC emissions reduction required under section 
182(b)(1) of the Act, the recent NHSDA and regulatory changes regarding 
enhanced I/M programs, EPA believes that it is no longer possible for 
many states to achieve the portion of the 15% reductions that are 
attributed to I/M by November 15, 1996. Under these circumstances, 
disapproval of the 15% SIPs would serve no purpose. Consequently, under 
certain circumstances, EPA will propose to allow states that pursue re-
design of enhanced I/M programs to receive emission reduction credit 
from these programs within their 15% plans, even though the emissions 
reductions from the I/M program will occur after November 15, 1996. The 
provisions for crediting reductions for enhanced I/M programs is 
contained in the following two documents: ``Date by which States Need 
to Achieve all the Reductions Needed for the 15 Percent Plan from I/M 
and Guidance for Recalculation,'' note from John Seitz and Margo Oge, 
dated August 13, 1996, and ``Modeling 15 Percent VOC Reductions from I/
M in 1999--Supplemental Guidance'', memorandum from Gay MacGregor and 
Sally Shaver, dated December 23, 1996.

[[Page 11401]]

    Specifically, EPA is proposing approval of 15% SIPs if the 
emissions reductions from the revised, enhanced I/M programs, as well 
as from the other 15% SIP measures, will achieve the 15% level as soon 
after November 15, 1996 as practicable. To make this ``as soon as 
practicable'' determination, EPA must determine that the SIP contains 
all VOC control strategies that are practicable for the nonattainment 
area in question and that meaningfully accelerate the date by which the 
15% level is achieved. EPA does not believe that measures meaningfully 
accelerate the 15% date if they provide only an insignificant amount of 
reductions.
    EPA has examined other potentially available SIP measures to 
determine if they are practicable for Virginia's portion of the 
Metropolitan Washington, DC area and if they would meaningfully 
accelerate the date by which the area reaches the 15% level of 
reductions. The EPA proposes to determine that the SIP does contain the 
appropriate measures. The TSD for this action contains a discussion of 
other measures available for 15% plans. Virginia has taken credit for 
several of these measures (or essentially similar measures), such as 
reformulated gasoline, controls on small graphic arts facilities, and 
revised surface cleaning rules, municipal landfills, etc. in the 15% 
plan; and taken credit for measures that EPA must promulgate under 
section 183(e) of the Act such as AIM coatings, consumer and commercial 
products rule, and autobody refinishing. Provided below is a tabular 
summary of this analysis. Measures for which Virginia took credit in 
the 15% plan are identified in the table below as ``In 15% Plan'' and 
are not available as possible alternatives to I/M. The other programs 
that Virginia included in the 15% plan result in only a possible 2.32 
tons/day reduction and do not deliver in aggregate, anything close to 
the reductions achieved by enhanced I/M.

          Virginia 15% Plan--Metropolitan Washington D.C. Area          
------------------------------------------------------------------------
                                                Potential VOC Reduction 
             Measures considered                       (tons/day)       
------------------------------------------------------------------------
Area Source Measures:                                                   
    AIM Coatings--Federal Rule...............  In 15% Plan.             
    Consumer Solvents--Federal Rule..........  In 15% Plan.             
    Solvent Cleaning--Substitution/Equipment.  In 15% Plan.             
    Graphic Arts--Web Offset Control.........  1.07.                    
    Autobody Refinishing--ACT control........  In 15% Plan.             
    Cutback Asphalt--100% Ban................  0.23.                    
    TSDFs--Federal Rule early implementation.  0.01.                    
    Other Dry Cleaning--SCAQMD 1102..........  1.01.                    
    Stage I Enhancement--P/V Vents...........  In 15% Plan.             
    Stage II--Vapor Recovery.................  In 15% Plan.             
    Nonroad Gasoline--Reformulated Gasoline..  In 15% Plan.             
Point Source Measures:                                                  
    Gravure Printing--MACT early               0.01.                    
     implementation.                                                    
    Web Offset Lithography--ACT control......  In 15% Plan.             
Non-mandated On-Road Mobile Measures:          In 15% Plan.             
 Reformulated Gasoline.                                                 
I/M Reductions:High Enhanced in 15% Plan.....  In 15% Plan.             
------------------------------------------------------------------------

    EPA has determined that the enhanced I/M program is the only 
measure that would significantly accelerate the date by which the 15% 
requirement will be achieved. The EPA proposes to determine that 
Virginia's 15% plan does contain all measures, including enhanced I/M, 
that achieves reductions as soon as practicable. EPA proposes to allow 
enhanced I/M reductions which occur out until November 15, 1999 to 
count toward the 15% emission reduction level for the 15% plan, since 
in doing so, the Commonwealth will reach a 15% VOC reduction as soon as 
practicable.
    Virginia claimed a total of 24.6 tons/day credit for this measure. 
In its May 15, 1995 15% plan submittal, the Commonwealth evaluated the 
enhanced I/M program using EPA's Mobile5.0a model with assumptions that 
called for implementation of a centralized, IM240 test with pressure 
and purge testing, and a program start date of January 1, 1995. Since 
the time of the May 15, 1995 submittal, Virginia has revised its 
enhanced I/M program and on March 27, 1996 submitted the redesigned 
program to EPA pursuant to the NHSDA. Virginia's revised enhanced I/M 
program is a biennial, decentralized, test-and repair program network 
using Accelerated Simulation Mode (ASM) 50/15 testing equipment 
scheduled to begin testing by November 1997. Virginia has designed its 
decentralized network of testing stations to accommodate biennial 
testing.
    EPA has determined that Virginia cannot accelerate the reductions 
by initially requiring annual testing because:
    1. Without additional testing stations, other requirements of the 
enhanced I/M rule relating to motorist convenience would suffer. 
Motorist convenience is one important aspect that affects public 
acceptance and effectiveness of the enhanced I/M program.
    2. Additional infrastructure changes (e.g. more testing equipment, 
enlarging or building new testing stations, and the hiring and training 
of additional inspectors) to the enhanced I/M program would not come 
on-line in time to afford a substantial increase in the amount of 
reductions realized before November 15, 1999.
    3. The cost effectiveness of the program would be adversely 
affected because the additional costs would not result in a 
corresponding amount of reductions.
    EPA proposes to determine that the enhanced I/M program for 
Virginia's portion of the Metropolitan Washington, DC nonattainment 
area achieves reductions from enhanced I/M as soon as practicable.
    Because Virginia's revised enhanced I/M program is designed to meet 
EPA's high-enhanced performance standard and will achieve essentially 
the same number of testing cycles between start-up and November 1999 as 
that modeled in the regional 15% plan, EPA believes that Virginia's 
program will achieve 24.6 tons/day of reductions by 1997. However, EPA 
has determined that Virginia (with MWCOG) is best able to

[[Page 11402]]

perform the definitive determination because Virginia will use the same 
highway network model that was used to determine the 1990 base year 
inventory and the 1996 on-road VOC emissions budget used for 
transportation conformity purposes. (The same highway network model is 
also used for conformity determinations.) EPA has determined that it 
would be appropriate to condition approval of the Virginia 15% plan 
upon Virginia remodeling the I/M benefits to reflect all relevant 
parameters (start date, network type, test types for exhaust and purge/
pressure testing, waiver rates, cut points, etc.) of the revised, 
enhanced I/M program and show the I/M reductions needed to make the 15% 
reduction are achieved by no later than November 15, 1999. In 
performing this remodeling demonstration, the Commonwealth should 
ensure that Tier 1 and RFG benefits are considered. Benefits must not 
be separated out on a tons per day basis for each control measure, but 
rather all mobile source measures should be evaluated in the 1999 
``target level'', as defined in the December 23, 1996 memorandum, 
calculation run. EPA requires that such modeling be done in accordance 
with EPA guidance. EPA's guidance for remodeling I/M for 15% Plans 
includes: 1) A Note to the Regional Division Directors from John Seitz 
and Margo Oge dated August 13, 1996 entitled ``Date by which States 
Need to Achieve all the Reductions Needed for the 15% Plan from I/M and 
Guidance for Recalculation'', and 2) a joint memorandum from Gay 
McGregor and Sally Shaver dated December 23, 1996 entitled ``Modeling 
15% VOC Reduction(s) from I/M in 1999--Supplemental Guidance''.
    As it relates to Virginia's enhanced I/M program, EPA proposes a 
conditional interim approval of the 24.6 tons/day reduction from 
enhanced I/M in the nonattainment area and Facquier County provided 
Virginia meets the conditions of the November 6, 1996 conditional 
interim approval of the enhanced I/M program; receives full EPA 
approval of its enhanced I/M program; and remodels it's enhanced I/M 
program using the appropriate, updated parameters (e.g. appropriate 
start-date, etc).

E. Measures Not Evaluated

    EPA is not taking action at this time on the following control 
measures contained in the Virginia 15% plan submitted May 15, 1995:
Rule Effectiveness (RE) Improvements
    Rule effectiveness is a means of enhancing rule compliance or 
implementation by industrial sources, and is expressed as a percentage 
of total available reductions from a control measure. The default 
assumption level for RE is 80%. Virginia estimated in this control 
measure that RE at bulk terminals will be improved from the current 
level of 80% to 90% and RE at tank truck unloading sources improved 
from 70% to 91%. The resulting estimated emission benefits are 1.7 
tons/day for bulk terminals and 1.3 tons/day for tank truck unloading 
for a total of 3.0 tons/day. EPA is not taking action on this control 
strategy in the May 15, 1995 Virginia 15% plan submittal, nor deeming 
the 3.0 tons/day reduction creditable toward the 15% ROP requirement in 
this rulemaking.
Graphic Arts
    This measure regulates emissions from formerly uncontrolled small 
lithographic printing operations, such as heatset web, non-heatset web, 
non-heatset sheet-fed, and newspaper non-heatset web operations. VOCs 
are emitted from the inks, fountain solutions and solvents used to 
clean the printing presses. This measure is modeled on EPA's draft 
documents ``Offset Lithographic Printing Control Techniques Guideline'' 
and ``Alternative Control Techniques Document: Offset Lithographic 
Printing'' announced in the Federal Register, November 8, 1993. 
Virginia claims 1.4 tons/day in emission benefits from the 1996 
projected year inventory of lithographic printing sources. EPA is not 
taking action on this control strategy in the May 15, 1995 Virginia 15% 
plan submittal, nor deeming the 1.4 tons/day reduction creditable 
toward the 15% ROP requirement in this rulemaking.
Municipal Landfill Emissions
    This control measure is a state control program regulating VOC 
emissions from municipal landfills, utilizing landfill gas capture and 
destruction systems. The 1996 projection year inventory for this source 
category is 1.5 tons/day. Virginia estimated that this rule would 
result in a reduction of 0.4 tons/day. EPA is not taking action on this 
control strategy in the May 15, 1995 Virginia 15% plan submittal, nor 
deeming the 0.4 tons/day reduction creditable toward the 15% ROP 
requirement in this rulemaking.
Surface Cleaning Operations
    This measure amends the Virginia regulation for surface cleaning 
(also called cold cleaning and degreasing) devices and operations for 
area sources and requires more stringent emission control requirements 
and enlarges the field of applicable sources. Virginia's 1996 
projection year inventory in this source category is 3.9 tons/day. 
Virginia estimates that this measure would result in a 10% reduction of 
emissions and with 80% rule compliance resulting in 1.5 tons/day 
reduction credits. EPA is not taking action on this control strategy in 
the May 15, 1995 Virginia 15% plan submittal, nor deeming the 1.5 tons/
day reduction creditable toward the 15% ROP requirement in this 
rulemaking.
Non-CTG RACT to 50 TPY and 25 TPY
    Section 182(b)(2)(B) of the Act requires that serious ozone 
nonattainment areas adopt rules to require RACT for all VOC sources in 
the nonattainment area not already subject to RACT by any other SIP 
regulation developed pursuant to a Control Technique Guideline (CTG) 
that has potential emissions of greater than or equal to 50 TPY. On 
April 22, 1996 Virginia submitted a SIP revision to its Non-CTG VOC 
RACT rule lowering the major source definition to 25 tpy in the 
Virginia portion of the Metropolitan Washington DC nonattainment area. 
EPA is approving the revisions to this rule, 120-04-0407 ``Standard for 
VOC Compounds'', in a separate rulemaking notice also published in 
today's Federal Register. The regulation currently requires that 
sources with the potential to emit 50 tpy or more achieve compliance 
with RACT by May 31, 1995; and has been revised to require sources with 
the potential to emit 25 tpy or greater, but less than 50 tpy to comply 
with RACT by May 31, 1996.
    Virginia takes credit in the 15% plan for reductions at five 
sources subject to Non-CTG RACT to 50 tpy and three individual sources 
subject to Non-CTG RACT to 25 tpy (see table below).

[[Page 11403]]



                          Source Specific RACT With Reductions Claimed in the 15% Plan                          
----------------------------------------------------------------------------------------------------------------
                                                                       Current control   Reduction              
                             Source name                               emissions(tons/   potential    Reductions
                                                                             day)           (%)       (tons/day)
----------------------------------------------------------------------------------------------------------------
Non-CTG RACT to 50 TPY:                                                                                         
    Lorton Reform....................................................           0.19             25         0.05
    Tuscarora Plastics...............................................           0.31             25         0.08
    Insulated Building Systems.......................................           0.20             25         0.05
    Treasure Chest Ad................................................           0.24             65         0.16
    Cellofoam........................................................           0.23             25         0.06
Non-CTG RACT to 25 tpy:                                                                                         
    Times Journal....................................................           0.06             65         0.04
    Stephanson.......................................................           0.13             65         0.08
    IBM..............................................................           0.12             25         0.03
                                                                      ------------------------------------------
        Total Reductions Claimed.....................................  ...............  ...........         0.55
----------------------------------------------------------------------------------------------------------------

    Virginia's SIP approved generic RACT rule does not apply individual 
process emission limits on either source categories or individual 
sources. Emissions limits are an integral part of a RACT determination 
and necessary for enforceability. Emission limits on sources must be 
established in individual RACT determinations on a source by source 
basis. Each RACT determination must be SIP approved to be federally 
enforceable and creditable toward 15%. EPA is not taking action on this 
control strategy in the May 15, 1995 Virginia 15% plan submittal, nor 
deeming the combined 0.55 tons/day reduction associated with the RACT 
determinations creditable toward the 15% ROP requirement in this 
rulemaking.
Pesticide Reformulation
    This measure requires the use of low-VOC content pesticides for 
consumer, commercial and/or agricultural use. Virginia claims that this 
measure results in a reduction of 0.4 tons/day by applying a 40% 
overall reduction to the 1996 base year projection emissions for 
pesticide application. EPA is not taking action on this control 
strategy in the May 15, 1995 Virginia 15% plan submittal, nor deeming 
the 0.4 tons/day reduction creditable toward the 15% ROP requirement in 
this rulemaking.

F. Reasonable Further Progress

    The table below summarizes both the proposed creditable measures 
and those measures which EPA is not taking action on in this rulemaking 
from Virginia's 15% plan for the Metropolitan Washington DC area.

    Summary of Creditable Emission Reductions in the Commonwealth of    
  Virginia's 15% Plan for the Washington DC Serious Ozone Nonattainment 
                             Area (Tons/day)                            
                      CREDITABLE REDUCTIONS                             
                                                                        
FMVCP Tier I.....................................................    1.1
Reformulated Gasoline:                                                  
    On-Road......................................................    9.3
    Off-Road.....................................................    1.2
Auto Refinishing.................................................    2.1
AIM..............................................................    4.1
Consumer/Commercial Products.....................................    1.4
TCMs.............................................................    0.8
Seasonal Open Burning Restrictions...............................    2.6
Stage II Vapor Recovery Nozzles..................................    6.8
Stage I Enhancement..............................................    0.5
Enhanced Inspection & Maintenance \1\............................   23.7
Fauquier County..................................................    0.9
                                                                  ------
                                                                        
      Total Creditable...........................................   54.5
                                                                  ======
     MEASURES EPA IS NOT TAKING ACTION ON IN THIS RULEMAKING            
                                                                        
Degreasing/Surface Cleaning enhancement..........................    1.5
Graphic Arts--Offset lithography.................................    1.4
Rule Effectiveness Improvements..................................    3.0
Non-CTG RACT to 50 tpy...........................................    0.4
Non-CTG RACT to 25 tpy...........................................    0.2
Municipal Landfills..............................................    0.4
Pesticide Reformulation..........................................    0.4
                                                                  ------
      Total No Action............................................   7.3 
                                                                        
\1\ To conform with EPA's proposal of conditional interim approval of   
  Virginia's enhanced I/M plan, EPA is proposing conditional interim    
  approval of the reduction credits from Virginia's enhanced I/M program
  claimed in Virginia's 15% plan.                                       

    EPA has evaluated the May 15, 1995 submittal for consistency with 
the Act, applicable EPA regulations, and EPA policy. On its face, 
Virginia's 15% plan achieves the required 15% VOC emission reduction to 
meet Virginia's portion of the regional multi-state plan to achieve the 
15% ROP requirements of section 182(b)(1) of the Act. However, there 
are measures included in the Virginia 15% plan, which may be creditable 
towards the Act requirement, but which are insufficiently documented 
for EPA to take action on at this time. While the amount of creditable 
reductions for certain control measures has not been adequately 
documented to qualify for Clean Air Act approval, EPA has determined 
that the submittal for Virginia contains enough of the required 
structure to warrant conditional interim approval. Furthermore, the May 
15, 1995 submittal strengthens the Virginia SIP.
    Based on EPA's preliminary review of the draft revised regional 15% 
plan for the Metropolitan Washington DC nonattainment area, sent to EPA 
for comment by the Commonwealth on January 30, 1997, EPA believes that 
the amount of VOC reduction that Virginia needs to satisfy the 15% ROP 
requirement in the Metropolitan Washington D.C. area may be lower than 
the 54.5 tons/day accounted for with creditable measures in the May 15, 
1995 submittal. The January 30, 1997 draft revised plan includes 
revised information for the 1990 base year inventory and actual growth 
between 1990 and 1996, as opposed to projected growth. The effect of 
these revisions may lower the amount of creditable emission reductions 
Virginia needs to achieve its share of the 15% ROP requirement.

III. Proposed Action

    In light of the above deficiencies and to conform with EPA's action 
proposing conditional interim approval of Virginia's enhanced I/M 
program, EPA is proposing conditional interim approval of this SIP 
revision under section 110(k)(4) of the Act.
    EPA is proposing conditional interim approval of the Virginia 15% 
plan for the Virginia portion of the Metropolitan

[[Page 11404]]

Washington D.C. nonattainment area if Virginia commits, in writing, 
within 30 days of EPA's proposal to correct the deficiencies identified 
in this rulemaking. These conditions are described below. If the 
Commonwealth does not make the required written commitment to EPA 
within 30 days, EPA is proposing in the alternative to disapprove the 
15% plan SIP revision. If the Commonwealth does make a timely 
commitment, but the conditions are not met by the specified date within 
one year, EPA is proposing that the rulemaking will convert to a final 
disapproval. EPA would notify Virginia by letter that the conditions 
have not been met and that the conditional approval of the 15% plan has 
converted to a disapproval. Each of the conditions must be fulfilled by 
Virginia and submitted to EPA as an amendment to the SIP. If Virginia 
corrects the deficiencies within one year of conditional interim 
approval, and submits a revised 15% plan as a SIP revision, EPA will 
conduct rulemaking to fully approve the revision. In order to make this 
15% plan approvable, Virginia must fulfill the following conditions by 
no later than 12 months after EPA's final conditional interim approval:
    1. Virginia's 15% plan must be revised to account for growth in 
point sources.
    2. Virginia must meet the conditions listed in the November 6, 1996 
conditional interim I/M rulemaking notice, including its commitment to 
remodel the I/M reductions using the following two EPA guidance memos: 
``Date by which States Need to Achieve all the Reductions Needed for 
the 15 Percent Plan from I/M and Guidance for Recalculation,'' note 
from John Seitz and Margo Oge, dated August 13, 1996, and ``Modeling 15 
Percent VOC Reductions from I/M in 1999--Supplemental Guidance'', 
memorandum from Gay MacGregor and Sally Shaver, dated December 23, 
1996.
    3. Virginia must remodel to determine affirmatively the creditable 
reductions from RFG, and Tier 1 in accordance with EPA guidance.
    4. Virginia must submit a SIP revision amending the 15% plan with a 
demonstration using appropriate documentation methodologies and credit 
calculations that the 54.5 tons/day reduction, supported through 
creditable emission reduction measures in the submittal, satisfies 
Virginia's 15% ROP requirement for the Metropolitan Washington DC 
nonattainment area.
    After making all the necessary corrections to establish the 
creditability of chosen control measures, Virginia must demonstrate 
that the 15% emission reduction is obtained in the Washington DC 
nonattainment area as required by section 182(b)(1) of the Act and in 
accordance with EPA's policies and guidance.
    EPA and the Virginia Department of Environmental Quality have 
worked closely since the May 1995 submittal to resolve all the issues 
necessary to fully approve the 15% plan. The Commonwealth is aware of 
the above deficiencies and has addressed many of the above-named 
deficiencies in the draft revised regional plan. The Commonwealth has 
stated that it intends to submit additional information to address all 
deficiencies within the 15% plan. Therefore, while some deficiencies 
currently remain in the 15% plan, EPA believes that these issues will 
be resolved no later than 12 months after EPA's final conditional 
interim approval. EPA will consider all information submitted as a 
supplement or amendment to the May 15, 1995 submittal prior to any 
final rulemaking action.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any state implementation plan. Each request for revision to 
the state implementation plan shall be considered separately in light 
of specific technical, economic, and environmental factors and in 
relation to relevant statutory and regulatory requirements.

IV. Administrative Requirements

    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 E.O. 12866 review.
    Under the Regulatory Flexibility Act, 5 U.S.C. 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. 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.
    Conditional approvals of SIP submittals under section 110 and 
subchapter I, part D of the CAA 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, EPA 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).
    If the conditional interim approval is converted to a disapproval 
under section 110(k), based on the Commonwealth's failure to meet the 
commitment, it will not affect any existing Commonwealth requirements 
applicable to small entities. Federal disapproval of the Commonwealth 
submittal does not affect its state-enforceability. Moreover, EPA's 
disapproval of the submittal does not impose a new Federal requirement. 
Therefore, EPA certifies that this disapproval action would not have a 
significant impact on a substantial number of small entities because it 
does not remove existing requirements nor does it substitute a new 
federal requirement.
    Under Section 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 
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

[[Page 11405]]

governments, or to the private sector, result from this action.
    Under section 801(a)(1)(A) of the Administrative Procedures Act 
(APA) as amended by the Small Business Regulatory Enforcement Fairness 
Act of 1996, EPA submitted a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives and the Comptroller General of the General Accounting 
Office prior to publication of the rule in today's Federal Register. 
This rule is not a ``major rule'' as defined by section 804(2) of the 
APA as amended.
    The Regional Administrator's decision to approve or disapprove the 
SIP revision pertaining to the Virginia 15% plan for the Washington, DC 
nonattainment area will be based on whether it meets the requirements 
of section 110(a)(2)(A)-((K) and part D of the Clean Air Act, as 
amended, and EPA regulations in 40 CFR Part 51.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Intergovernmental regulations, Reporting and recordkeeping, Ozone, 
Volatile organic compounds.

    Dated: February 25, 1997.
Stanley L. Laskowski,
Acting Regional Administrator.
[FR Doc. 97-6082 Filed 3-11-97; 8:45 am]
BILLING CODE 6560-50-P


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