[Federal Register Volume 62, Number 12 (Friday, January 17, 1997)]
[Rules and Regulations]
[Pages 2597-2607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-876]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 52 and 81

[CA-98-1-7196a; FRL-5661-6]


Approval and Promulgation of Implementation Plans and Designation 
of Areas for Air Quality Planning Purposes; State of California; 
Determination Regarding Applicability of Certain Reasonable Further 
Progress and Attainment Demonstration Requirements; Monterey Bay Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The EPA is, through direct final procedure, approving the 
redesignation of the Monterey Bay Area from nonattainment to attainment 
for ozone. Through this direct final action, EPA is also approving for 
the Monterey Bay Area the maintenance plan, 1990 base year emissions 
inventory, emission statement rule, volatile organic compound (VOC) 
reasonably available control technology (RACT) rule 419 and oxides of 
nitrogen (NO<INF>X) RACT rule 431 as revisions to California's State 
Implementation Plan (SIP) for ozone. In addition, EPA is determining 
that the

[[Page 2598]]

Monterey Bay Area has attained the ozone National Ambient Air Quality 
Standard (NAAQS) and, therefore, that certain reasonable further 
progress (RFP) and attainment demonstration requirements, along with 
certain other related requirements of Part D of Title 1 of the Clean 
Air Act (CAA or Act), are not applicable to the Monterey Bay Area for 
as long as the area continues to attain the ozone NAAQS, and that upon 
final redesignation of the Monterey Bay Area, the area will be entirely 
relieved of these requirements.
    EPA is publishing this document without prior proposal because the 
Agency views these actions as noncontroversial and anticipates no 
adverse comments. However, in the proposed rules section of this 
Federal Register, EPA proposes these actions should adverse or critical 
comments be filed. If adverse comments are received, EPA will withdraw 
this final rule and address these comments in a final rule based on the 
proposed rule published in this Federal Register. The Agency will not 
issue a second comment period on these actions.

DATES: This action is effective on March 18, 1997, unless adverse or 
critical comments are received by February 18, 1997. If the effective 
date is delayed, a timely notice will be published in the Federal 
Register.

ADDRESSES: Copies of the documents relevant to this action are 
available for public inspection during normal business hours at the 
following locations:

Plans Development Section (A-2-2), Air and Toxics Division, U.S. 
Environmental Protection Agency, Region IX, 75 Hawthorne Street, San 
Francisco, CA 94105
California Air Resources Board, 2020 L Street, Sacramento, CA 94814
Monterey Bay Unified Air Pollution Control District, 24580 Silver Cloud 
Court, Monterey, CA 93940

FOR FURTHER INFORMATION CONTACT: Julia Barrow, Chief, Plans Development 
Section (A-2-2), Air & Toxics Division, U.S. Environmental Protection 
Agency, Region IX, at (415) 744-1207.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. Determination Regarding Reasonable Further Progress, Attainment 
Demonstration and Related Requirements
III. Redesignation Evaluation Criteria
IV. Review of State Plan
    1. Attainment of the Ozone NAAQS
    2. Meeting Applicable Requirements: Section 110 and Part D
    A. Section 110 Requirements
    B. Part D Requirements
    B.1. Subpart 1 of Part D--Section 172(c) Provisions
    B.2. Subpart 1 of Part D--Section 176(c) Conformity Plan 
Provisions
    B.3. Subpart 2 of Part D--Sections 182(a) and 182(b) 
Requirements
    3. Fully Approved SIP Under Section 110(k) of the Act
    4. Improvement in Air Quality Due to Permanent and Enforceable 
Measures
    5. Fully Approved Maintenance Plan Under Section 175A
    A. Attainment Emission Inventory
    B. Demonstration of Maintenance
    C. Verification of Continued Attainment
    D. Contingency Plan
    E. Subsequent Maintenance Plan Revisions
V. Revisions to the SIP
    1. 1990 Base Year Inventory
    2. Emission Statement Rule
    3. VOC RACT Rule correction
    4. NO<INF>X RACT Rule 431
VI. Conclusion

I. Background

    On November 15, 1990, the Clean Air Act Amendments of 1990 were 
enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C. 
7401-7671q. The ozone nonattainment designation for the Monterey Bay 
Area continued by operation of law according to section 107(d)(1)(C)(i) 
of the Clean Air Act, as amended in 1990; furthermore, the area was 
classified by operation of law as moderate for ozone under section 
181(a)(1). See 56 FR 56694 (Nov. 6, 1991), codified at 40 CFR 81.305.
    The District has collected ambient monitoring data that show no 
violations of the ozone NAAQS (See discussion in Section IV.1. below). 
Accordingly, on July 14, 1994, California requested redesignation of 
the area to attainment with respect to the ozone NAAQS and submitted an 
ozone maintenance SIP for the Monterey Bay Area. The Monterey Bay 
Unified Air Pollution Control Agency (MBUAPCD or the District), the 
Association of Monterey Bay Area Governments (AMBAG), and the Council 
of San Benito County Governments (CSBCG) prepared and adopted the 
maintenance plan on May 25, 1994, May 11, 1994 and May 5, 1994, 
respectively. The plan and redesignation request were subsequently 
submitted to CARB on June 1, 1994, and CARB submitted the plan and 
redesignation request to EPA on July 14, 1994. On November 14, 1994, 
CARB submitted a revision to the maintenance plan, adopted by MBUAPCD, 
AMBAG, and CSBCG on October 19, 1994, October 12, 1994 and October 6, 
1994, respectively.
    All SIP submittals to EPA must meet certain minimum administrative 
and technical criteria as set forth in 40 CFR Part 51, Appendix V (the 
``completeness'' criteria) in order for the Administrator to review and 
take action on the submittal. Section 110(k)(1) of the Act describes 
the mandatory time frame for EPA's determination of completeness and 
rulemaking action on plan submissions. In accordance with section 
110(k)(1)(B) of the Act, the Monterey Bay Area ozone redesignation 
request and maintenance plan was deemed complete by operation of law on 
February 14, 1995.

II. Determination Regarding Reasonable Further Progress, Attainment 
Demonstration and Related Requirements

    The EPA is determining that the Monterey Bay Area ozone 
nonattainment area has attained the NAAQS for ozone. On the basis of 
this determination, EPA is also determining that certain RFP and 
attainment demonstration requirements, along with certain other related 
requirements of Part D of Title 1 of the CAA are not applicable to the 
Monterey Bay Area for so long as the area continues to attain the ozone 
NAAQS.
    Subpart 2 of Part D of Title 1 contains various air quality 
planning and SIP submission requirements for ozone nonattainment areas. 
EPA believes it is reasonable to interpret provisions regarding RFP and 
attainment demonstrations, along with certain other related provisions, 
so as to not require SIP submissions if an ozone nonattainment area 
subject to those requirements is monitoring attainment of the ozone 
standard (i.e., attainment of the NAAQS demonstrated with three 
consecutive years of air quality monitoring data at each monitor). As 
described below, EPA has previously interpreted the general provisions 
of subpart 1 of part D of Title 1 (sections 171 and 172) so as not to 
require the submission of SIP revisions concerning RFP, attainment 
demonstrations, or related contingency measures. As explained in a 
memorandum dated May 10, 1995, from John Seitz to the Regional Air 
Division Directors, entitled ``Reasonable Further Progress, Attainment 
Demonstration and Related Requirements for Ozone Nonattainment Areas 
Meeting the National Ambient Air Quality Standard,'' EPA believes it is 
appropriate to interpret the more specific RFP, attainment 
demonstration and related provisions of subpart 2 in the same manner.
    First, with respect to RFP, section 171(1) states that, for 
purposes of Part D of Title 1, RFP ``means such annual incremental 
reductions in emissions of the relevant air pollutant as are required 
by this part or may reasonably be

[[Page 2599]]

required by the Administrator for the purpose of ensuring attainment of 
the applicable (NAAQS) by the applicable date.'' Thus, whether dealing 
with the general RFP requirement of section 172(c)(2), or the more 
specific RFP requirements of subpart 2 for classified ozone 
nonattainment areas (such as the 15 percent plan requirement of section 
182(b)(1)), the stated purpose of RFP is to ensure attainment by the 
applicable attainment date.<SUP>1 If an area has in fact attained the 
standard, the stated purpose of the RFP requirement will have already 
been fulfilled and EPA does not believe that the area need submit 
revisions providing for the further emission reductions described in 
the RFP provisions of section 182(b)(1).
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    \1\ EPA notes that paragraph (1) of subsection 182(b) is 
entitled ``PLAN PROVISIONS FOR REASONABLE FURTHER PROGRESS'' and 
that subparagraph (B) of paragraph 182(c)(2) is entitled 
``REASONABLE FURTHER PROGRESS DEMONSTRATION,'' thereby making it 
clear that both the 15 percent plan requirement of section 182(b)(1) 
and the 3 percent per year requirement of section 182(c)(2) are 
specific varieties of RFP requirements.
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    EPA notes that the Agency took this view with respect to the 
general RFP requirement of section 172(c)(2) in the General Preamble 
for the Interpretation of Title 1 of the Clean Air Act Amendments of 
1990 (57 FR 13498, (April 16, 1992)), and that the Agency is now 
extending that interpretation to the specific provisions of subpart 2. 
In the General Preamble, EPA stated, in the context of a discussion of 
the requirements applicable to the evaluation of requests to 
redesignate nonattainment areas to attainment, that the ``requirements 
for RFP will not apply in evaluating a request for redesignation to 
attainment since, at a minimum, the air quality data for the area must 
show that the area has already attained. Showing that the State will 
make RFP towards attainment will, therefore, have no meaning at that 
point.'' (57 FR 13564) <SUP>2
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    \2\ see also ``Procedures for Processing Requests to Redesignate 
Areas to Attainment,'' from John Calcagni, Director, Air Quality 
Management Division, to Regional Air Division Directors, September 
4, 1992, at page 6 (stating that the ``requirements for reasonable 
further progress * * * will not apply for redesignations because 
they only have meaning for areas not attaining the standard'') 
(hereinafter referred to as ``September 1992 Calcagni memorandum'').
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    Second, with respect to the attainment demonstration requirements 
of section 182(b)(1), an analogous rationale leads to the same result. 
Section 182(b)(1) requires that the plan provide for ``such specific 
annual reductions in emission * * * as necessary to attain the (NAAQS) 
by the attainment date applicable under this Act.'' As with RFP 
requirements, if an area has in fact monitored attainment of the 
standard, EPA believes there is no need for an area to make a further 
submission containing additional measures to achieve attainment. This 
is also consistent with the interpretation of certain section 172(c) 
requirements provided by EPA in the General Preamble to Title 1, as EPA 
stated there that no other measures to provide for attainment would be 
needed by areas seeking redesignation to attainment since ``attainment 
will have been reached.'' (57 FR 13564; see also September 1992 
Calcagni memorandum at page 6.) Upon attainment of the NAAQS, the focus 
of state planning efforts shifts to the maintenance of the NAAQS and 
the development of a maintenance plan under section 175A. <SUP>3
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    \3\ The lack of a requirement to submit the SIP revisions exists 
only for as long as the area designated nonattainment continues to 
attain the standard. If EPA subsequently determines that such an 
area has violated the NAAQS, the basis for the determination that 
the area need not make the pertinent SIP revision would no longer 
exist. The EPA would then notify the State of that determination and 
would also provide notice to the public in the Federal Register. 
Such a determination would mean that the area would have to address 
the pertinent SIP requirements within a reasonable amount of time, 
which EPA would establish taking into account the individual 
circumstances surrounding the particular SIP submissions at issue. 
Thus, a determination that an area need not submit one of the SIP 
submittals amounts to no more than a suspension of the requirement 
for so long as the area continues to attain the standard. However, 
if the area continues to attain the standard and submits a request 
for redesignation to attainment, upon final approval of the 
redesignation to attainment the area is entirely relieved of these 
requirements.
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    The determination with regard to the applicability of certain RFP 
and attainment demonstration requirements does not shield an area from 
future EPA action to require emissions reductions from sources in the 
area where there is evidence, such as photochemical grid modeling, 
showing that emissions from sources in the area contribute 
significantly to nonattainment in, or interfere with maintenance by, 
other nonattainment areas. EPA has authority under sections 
110(a)(2)(A) and 110(a)(2)(D) to require such emissions reductions if 
necessary and appropriate to deal with transport situations.

III. Redesignation Evaluation Criteria

    The 1990 CAA Amendments revised section 107(d)(3)(E) to provide 
five specific requirements that an area must meet in order to be 
redesignated from nonattainment to attainment: (1) The area must have 
attained the applicable NAAQS; (2) the area has met all relevant 
requirements under section 110 and Part D of the Act; (3) the area has 
a fully approved SIP under section 110(k) of the Act; (4) the air 
quality improvement must be permanent and enforceable; and, (5) the 
area must have a fully approved maintenance plan pursuant to section 
175A of the Act. Section 107(d)(3)(D) allows a Governor to initiate the 
redesignation process for an area to apply for attainment status.

IV. Review of State Submittal

    The California redesignation request for the Monterey Bay Area 
meets the five requirements of section 107(d)(3)(E), noted above. 
Following is a brief description of how the State has fulfilled each of 
these requirements.

1. Attainment of the Ozone NAAQS

    Attainment of the ozone NAAQS is determined based on the expected 
number of exceedances in a calendar year. The method for determining 
attainment of the ozone NAAQS is contained in 40 CFR 50.9 and Appendix 
H to that Section. The simplest method by which expected exceedances 
are calculated is by averaging actual exceedances at each monitoring 
site over a rolling three year period. An area is in attainment of the 
standard if this average results in expected exceedances for each 
monitoring site of 1.0 or less per calendar year. Appendix H provides 
the formula used to estimate the expected number of exceedances for 
each year.
    The State of California's request is based on actual quality-
assured ozone air quality data which is relevant to both the 
maintenance plan and to the redesignation request. This data comes from 
the District's State and Local Air Monitoring Station (SLAMS) network. 
The request is based on ambient air ozone monitoring data for calendar 
years 1988 through 1990. This data clearly shows the expected 
exceedance rate for the ozone standard of less than 1.0 per year for 
each of the monitors, including the monitor on which the nonattainment 
designation was based. Monitoring data also shows that no violations 
have occurred in the network area through 1995. The District has also 
committed to continue monitoring in the area in accordance with 40 CFR 
part 58.

2. Meeting Applicable Requirements: Section 110 and Part D

    On December 20, 1983 (48 FR 56215), EPA fully approved California's 
SIP for the Monterey Bay Area as meeting the requirements of section 
110(a)(2) and Part D of the 1977 Act, with the exception of the motor 
vehicle inspection and maintenance (I/M) program which was signed for 
final

[[Page 2600]]

approval by the Regional Administrator on September 25, 1996. The 1990 
amended Act, however, modified section 110(a)(2) and, under Part D, 
revised section 172 and added new requirements for all nonattainment 
areas. Therefore, for purposes of redesignation, to meet the 
requirement that the SIP contain all applicable requirements under the 
Act, EPA has reviewed the SIP to ensure that it contains all measures 
that were due under the amended Act prior to or at the time the State 
submitted its redesignation request, as set forth in EPA policy. <SUP>4 
As explained in Section II. of this document, the RFP and attainment 
demonstration requirements are not applicable for areas meeting the 
ambient air quality standard because these requirements only have 
meaning for areas not attaining the standard.
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    \4\ ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' John Calcagni, Director, Air Quality Management 
Division, September 4, 1992.
    ``State Implementation Plan (SIP) Actions Submitted in Response 
to Clean Air Act (CAA) Deadlines,'' John Calcagni, Director, Air 
Quality Management Division, October 28, 1992.
    ``State Implementation Plan (SIP) Requirements for Areas 
Submitted Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) 
on or after November 15, 1992,'' Michael H. Shapiro, Acting 
Assistant Administrator, September 17, 1993.
    ``Reasonable Further Progress, Attainment Demonstration, and 
Related Requirements for Ozone Nonattainment Areas Meeting the Ozone 
National Ambient Air Quality Standard,'' John S. Seitz, Director, 
Office of Air Quality Planning and Standards, May 10, 1995.
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    All of the SIP requirements must be met by the District and 
approved into the SIP by EPA by the time the area is redesignated.

A. Section 110 Requirements

    Although section 110 was amended in 1990, the Monterey Bay Area SIP 
meets the requirements of amended section 110(a)(2). A number of the 
requirements did not change in substance and, therefore, EPA believes 
that the pre-amendment EPA approved SIP met these requirements. As to 
those requirements that were amended, (see 57 FR 27936 and 23939 (June 
23, 1993)), many are duplicative of other requirements of the Act. EPA 
has analyzed the SIP and determined that it is consistent with the 
requirements of amended section 110(a)(2). The SIP contains enforceable 
emission limitations, requires monitoring, compiling, and analyzing of 
ambient air quality data, requires preconstruction review of new major 
stationary sources and major modifications to existing ones, provides 
for adequate funding, staff, and associated resources necessary to 
implement its requirements, and requires stationary source emissions 
monitoring and reporting.

B. Part D Requirements

    Before the Monterey Bay Area may be redesignated to attainment, it 
also must have fulfilled the applicable requirements of Part D of the 
Act. Under Part D, an area's classification indicates the requirements 
to which it will be subject. Subpart 1 of Part D sets forth the basic 
nonattainment requirements applicable to all nonattainment areas, 
classified as well as nonclassifiable. Subpart 2 of Part D establishes 
additional requirements for nonattainment areas classified under table 
1 of section 181(a)(1) or table 3 of section 186(a). The Monterey Bay 
Area was classified under table 1 of section 181(a)(1) as a moderate 
ozone nonattainment area (See 56 FR 56694, codified at 40 CFR 81.305). 
Therefore, in order to be redesignated to attainment, the District must 
meet the applicable requirements of Subpart 1 of Part D--specifically 
sections 172(c) and 176, as well as the applicable requirements of 
Subpart 2 of Part D.

B.1. Subpart 1 of Part D--Section 172(c) Provisions

    Under section 172(b), the Administrator established that States 
containing nonattainment areas shall submit a plan or plan revision 
meeting the applicable requirements of section 172(c) no later than 
three years after an area is designated as nonattainment, unless EPA 
establishes an earlier date. As discussed in section II. of this 
Federal Register document, EPA has determined that the section 
172(c)(2) reasonable further progress (RFP) requirement is not 
applicable for the Monterey Bay Area based on the area's attainment of 
the ozone NAAQS. Also, the 172(c)(9) contingency measures and 
additional 172(c)(1) non-RACT reasonable available control measures 
(RACM) are not applicable, since those measures are specifically 
related to RFP.
    The 172(c)(3) emissions inventory requirement has been met by the 
submission and approval of the 1990 base year emissions inventory 
discussed in section V.1. of this Federal Register document.
    As for the 172(c)(5) New Source Review (NSR) requirement, the 
Monterey Bay Area NSR program was approved on July 11, 1996 (61 FR 
36501).
    The 172(d) requirements for SIP revisions pursuant to section 
110(k)(5) have been met and are discussed below in section 2.B3 and 
further in sections V.3 and 4. (VOC and NO<INF>X RACT rules).
    Finally, for purposes of redesignation, the Monterey Bay Area SIP 
was reviewed to ensure that all requirements of section 110(a)(2), 
containing general SIP elements were satisfied. The MBUAPCD SIP 
approved under section 110 of the Act (40 CFR 52.220) and the revisions 
to the SIP approved in section V. of this Federal Register document 
satisfy all applicable Part D, Title 1 requirements for moderate area 
ozone SIPs.

B.2. Subpart 1 of Part D--Section 176(c) Conformity Plan Provisions

    Section 176(c) of the CAA requires states to revise their SIPs to 
establish criteria and procedures to ensure that Federal actions, 
before they are taken, conform to the air quality planning goals in the 
applicable SIP. The requirement to determine conformity applies to 
transportation plans, programs and projects developed, funded or 
approved under Title 23 U.S.C. of the Federal Transit Act 
(``transportation conformity''). Section 176 further provides that the 
conformity revisions to be submitted by the States must be consistent 
with Federal conformity regulations that the CAA required EPA to 
promulgate. <SUP>5 These conformity rules require that States adopt 
both transportation and general conformity provisions in the SIP for 
areas designated nonattainment or subject to a maintenance plan 
approved under CAA section 175A. EPA believes it is reasonable to 
interpret the conformity requirements as not being applicable 
requirements for purposes of evaluating the redesignation request under 
section 107(d). The rationale for this is based on a combination of two

[[Page 2601]]

factors. First, the requirement to submit SIP revisions to comply with 
the conformity provisions of the Act continues to apply to areas after 
redesignation to attainment. Therefore, the State remains obligated to 
adopt the transportation and general conformity rules even after 
redesignation and would risk sanctions for failure to do so. Second, 
EPA's Federal conformity rules require the performance of conformity 
analyses in the absence of state-adopted rules. Therefore, a delay in 
adopting State rules does not relieve an area from the obligation to 
implement conformity requirements.
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    \5\ Congress provided for the State revisions to be submitted 
one year after the date for promulgation of final EPA conformity 
regulations. When that date passed without such promulgation, EPA's 
General Preamble for the Implementation of Title 1 informed States 
that the conformity regulation would establish a submittal date (see 
57 FR 13498, 13557 (April 16, 1992)). EPA promulgated final 
transportation conformity regulations on November 24, 1993 (58 FR 
62118), and general conformity regulations on November 30, 1993 (58 
FR 63214). Pursuant to 40 CFR 51.851 of the general conformity rule, 
the State of California was required to submit a SIP revisions 
containing transportation and general conformity criteria and 
procedures consistent with those established in the Federal rule by 
November 25, 1994, and December 1, 1994, respectively. The 
conformity rules for California were submitted to EPA, Region 9 by 
some of the local districts. Because EPA and Department of 
Transportation (DOT) have already amended the conformity regulation 
twice and have proposed a third set of amendments, EPA is allowing 
areas to incorporate all revisions to their conformity SIPs within 
one year of the publication of the Federal Register on the new 
regulation amendments. The anticipated submittal date of the new 
conformity SIP revisions in response to this amendment to the 
conformity regulations is early 1998.
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    Because areas are subject to the conformity requirements regardless 
of whether they are redesignated to attainment and must implement 
conformity under Federal rules if State rules are not yet adopted, EPA 
believes it is reasonable to view these requirements as not being 
applicable requirements for purposes of evaluating a redesignation 
request.

B.3. Subpart 2 of Part D--Section 182(a) and 182(b) Requirements

    As a moderate ozone nonattainment area, the Monterey Bay Area must 
meet the requirements for marginal areas under Subpart 2 of Part D, 
section 182(a) as well as the requirements for moderate areas contained 
in section 182(b). As discussed in Section II. of this Federal Register 
document, EPA has determined that the RFP requirement for a moderate 
ozone nonattainment area under Subpart 2 of Part D is not applicable to 
the Monterey Bay Area based on the area's attainment of the ozone 
NAAQS.
    For purposes of redesignation, the Monterey Bay Area must meet only 
those requirements of sections 182 (a) and (b) which were due prior to 
or at the time of the submittal of a complete redesignation request. 
Monterey must meet the section 182(a)(1) requirement for an emission 
inventory, the section 182(a)(2)(a) requirement for Reasonably 
Available Control Technology (RACT) rules and the section 182(a)(3)(b) 
requirement for a rule regarding emission statements for stationary 
sources. In sections V.1., 2., 3. and 4. of this Federal Register 
document, EPA is approving revisions to the SIP meeting the 
requirements mentioned above. EPA approval of these revisions completes 
the District's requirements to meet all applicable requirements of 
section 110 and Part D of the Act.

3. Fully Approved SIP Under Section 110(k) of the Act

    In order for EPA to take final action approving the redesignation 
request, the District must have a fully approved SIP under section 
110(k), which also meets the applicable requirements of section 110 and 
Part D. As discussed in Section 2.A. above, EPA approved numerous 
provisions of the Monterey Bay Area SIP under the pre-amended Act and 
finds that these provisions meet the requirements of section 110(a)(2). 
Also, EPA approval of the emissions inventory and emission statement 
rule (Regulation III, Rule 300, parts 4.4-4.4.3) and the District's 
amended VOC RACT rule 419 and the NO<INF>X RACT rule 431, as revisions 
to the SIP as required by sections 182 (a) and (b), fulfills the 
requirement that the District have a fully approved SIP under section 
110(k).

4. Improvement in Air Quality Due to Permanent and Enforceable Measures

    Under the pre-amended Act, EPA approved California's SIP control 
strategy for the Monterey Bay Area nonattainment area, which satisfies 
the requirement that the rules are permanent and enforceable. The 
Monterey Bay Area attained the ozone NAAQS in 1990, therefore, emission 
reductions achieved as a result of those rules are permanent. Since 
enactment of the 1990 Amendments, the State has made additional 
submittals as identified in the discussion of the section 182(b) 
requirements above and in Table 1.A below.

                                                    Table 1.A                                                   
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              Rule number, title                 Adoption                       EPA approval                    
----------------------------------------------------------------------------------------------------------------
416-Organic Solvents.........................     04/20/94  02/12/96, 61 FR 5288.                               
417-Storage of Organic Liquids...............     08/25/93  02/15/95, 60 FR 8565.                               
418-Transfer of Gasoline into Stationary          08/25/93  02/15/95, 60 FR 8565.                               
 Storage.                                                                                                       
420-Effluent Oil Water Separators............     08/25/93  02/09/96, 61 FR 4890.                               
425-Use of Cutback Asphalt...................     08/25/93  02/05/96, 61 FR 4215.                               
426-Architectural Coatings...................     08/25/93  02/09/96, 61 FR 4890.                               
427-Steam Drive Crude Oil Production Wells...     08/25/93  02/15/95, 60 FR 8565.                               
430-Leather Processing Operations............     05/25/94  10/25/95, 60 FR 54595                               
433-Organic Solvent Cleaning.................     06/15/95  02/12/96, 61 FR 5288.                               
434-Coating of Metal Parts & Products........     06/15/95  02/12/96, 61 FR 5288.                               
1002-Transfer of Gasoline into Vehicle Fuel       11/23/94  02/09/96, 61 FR 4892.                               
 Tanks.                                                                                                         
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    In addition, EPA finds that a comparison of the Monterey emission 
inventories by source category (see Table 1.B below), reasonably 
attributes the improvement in air quality to emission reductions from 
controls which are permanent, and are enforceable as they have been 
adopted into the SIP and approved by EPA.

                                                    Table 1.B                                                   
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             Pollutant                         Source category                 1979         1987         1990   
----------------------------------------------------------------------------------------------------------------
ROG*(TPD).........................  Stationary...........................           67           62           50
                                    Mobile...............................           41           44           46
                                    Total................................          108          106           96
NO<INF>X...............................  Stationary...........................           82           34           32
                                    Mobile...............................           46           60           61
                                    Total................................          128           94          93 
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*ROG (Reactive Organic Gases) mainly differs from VOC in that it includes ethane. Ethane is solely a product of 
  combustion; VOC accounts for 98.5 percent of combustion.                                                      


[[Page 2602]]

    The actual reduction in overall emissions from 1979 to 1990 was 12 
tons per day (TPD) of VOC and 35 TPD of NO<INF>X, which reflects growth 
in emissions from some sources and reductions in overall emissions due 
to all control measures. EPA finds that the combination of existing 
EPA-approved SIP and Federal measures contributes to the permanence and 
enforceability of reductions in ambient ozone levels that have allowed 
the area to attain the NAAQS.

5. Fully Approved Maintenance Plan Under Section 175A

    EPA is approving the State's maintenance plan for the Monterey Bay 
Area because EPA finds that the District's submittal meets the 
requirements of section 175A. Section 175A of the Act sets forth the 
elements of a maintenance plan for areas seeking redesignation from 
nonattainment to attainment. The plan must demonstrate continued 
attainment of the applicable NAAQS for at least ten years after the 
Administrator approves a redesignation to attainment. Eight years after 
the redesignation, the State must submit a revised maintenance plan 
which demonstrates attainment for the ten years following the initial 
ten-year period. To provide for the possibility of future NAAQS 
violations, the maintenance plan must contain contingency measures, 
with a schedule for implementation adequate to assure prompt correction 
of any air quality problems. Each of the section 175A plan requirements 
is discussed below.

5.A. Attainment Emissions Inventory

    The MBUAPCD adopted comprehensive inventories of VOC, and NO<INF>X 
emissions from area, stationary, and mobile sources using 1990 as the 
base year for calculations to demonstrate maintenance of the ozone 
NAAQS. EPA has determined that 1990 is an appropriate year on which to 
base attainment level emissions because EPA policy allows States to 
select any one of the three years in the attainment period as the 
attainment year inventory.<SUP>6
---------------------------------------------------------------------------

    \6\ ``Procedures for Processing Requests to Redesignate Areas to 
Attainment,'' John Calcagni, Director, Air Quality Management 
Division, September 4, 1992.
---------------------------------------------------------------------------

    The latest revised annual and peak ozone season 1990 comprehensive 
inventories of actual emissions were adopted by the Monterey Bay 
Unified Air Pollution Control District (the District) on October 19, 
1994 and submitted by CARB to EPA on November 15, 1994 as a SIP 
revision. CARB provided a more detailed clarification of the 
inventories on March 30, 1995. EPA notified the State of the 
completeness of the emissions inventories in a letter dated April 18, 
1995.
    The State submittal contains the detailed inventory data and 
summaries by county and source category. The District provided the 
stationary source estimates, and area source emissions for each source 
category based on emission and activity factors for each county in the 
nonattainment area. These factors are cited or their sources referenced 
in Methods for Assessing Area Source Emissions in California, 
California Air Resources Board, September 1991. CARB based on-road 
mobile source emission and activity estimates on CARB's EMFAC7F and 
BURDEN7C models, respectively.
    The comprehensive base year emissions inventory discussed above has 
been entered into the Aerometric Information Retrieval System (AIRS). 
AIRS is EPA's computerized data storage system for air quality and 
emission source data. EPA, under contract with Radian Corporation, has 
entered the base year emissions inventory of stationary sources into 
AIRS and has also prepared computer software to convert the California 
Emission Data System stationary source data to AIRS/AFS format for 
entry into AIRS. California is responsible for entering 1990 area and 
mobile source (AMS) data into AIRS according to a fiscal year 1994 
Clean Air Act section 105 air program grant agreement.

5.B. Demonstration of Maintenance

    The MBUAPCD developed projected VOC and NO<INF>X emissions 
inventories based on the 1990 actual inventory for the years 1995, 
2000, 2005 and 2010 by applying growth factors in accordance with EPA 
guidance. The projected inventories, provided in Table 2.A. and 2.B. 
below, show that the ozone standard will be maintained and that 
emissions are not expected to exceed the level of the 1990 inventory 
during the maintenance period.

5.C. Verification of Continued Attainment

    The plan demonstrates attainment of the NAAQS for at least 10 years 
after the area is redesignated. The tables below show the forecasts for 
ozone precursors VOC (Table 2.A.) and NO<INF>X (Table 2.B.).

                              Table 2.A.--VOC Emissions for Average Summer Weekday*                             
                                                 [Tons Per Day]                                                 
----------------------------------------------------------------------------------------------------------------
                    Source categories                         1990       1995       2000       2005       2010  
----------------------------------------------------------------------------------------------------------------
Stationary:                                                                                                     
    Fuel Combustion......................................      00.86      00.80      00.86      00.87      00.88
    Waste Burning........................................      00.95      01.02      01.09      01.17      01.23
    Solvent Use..........................................      21.45      20.60      22.29      24.13      25.82
    Petroleum Processes, Storage & Transfer..............      06.07      01.72      02.21      02.22      02.22
    Industrial Processes.................................      00.49      00.56      00.58      00.63      00.66
    Miscellaneous Processes..............................      19.68      19.48      19.61      14.82      15.05
    Banked Emissions.....................................      00.24      00.24      00.24      00.24      00.24
                                                          ------------------------------------------------------
        Stationary total.................................      49.74      44.42      46.88      44.08      46.10
                                                          ======================================================
Mobile:                                                                                                         
     On-Road.............................................      39.09      20.74      17.75     13.340      09.95
    Non-Road.............................................      06.88      06.31      05.71      05.86      05.90
                                                          ------------------------------------------------------
        Mobile total.....................................      45.97      27.05      23.46      19.20      15.85
                                                          ======================================================
        Total............................................      95.71      71.47      70.34      63.28      61.95
----------------------------------------------------------------------------------------------------------------
*Anthropogenic sources of ozone precursors.                                                                     


[[Page 2603]]


                              Table 2.B.--NO<INF>X Emissions for Average Summer Weekday*                             
                                                 [Tons Per Day]                                                 
----------------------------------------------------------------------------------------------------------------
                    Source categories                         1990       1995       2000       2005       2010  
----------------------------------------------------------------------------------------------------------------
Stationary:                                                                                                     
    Fuel Combustion......................................      29.79      26.40      28.18      21.27      27.50
    Waste Burning........................................      00.15      00.16      00.17      00.18      00.19
    Petro. Processes, Storage & Transfer.................      00.02      00.02      00.02      00.02      00.02
    Industrial Processes.................................      02.33      02.77      02.98      03.25      03.48
    Miscellaneous Processes..............................      00.01      00.01      00.01      00.01      00.01
    Banked Emissions.....................................      00.14      00.14      00.14      00.14      00.14
                                                          ------------------------------------------------------
        Stationary total.................................      32.44      29.50      31.50      24.87      26.34
                                                          ======================================================
Mobile:                                                                                                         
     On-Road.............................................      43.13      28.99      27.77      25.54      24.86
    Non-Road.............................................      17.34      17.46      18.31      18.90      19.37
                                                          ------------------------------------------------------
        Mobile total.....................................      60.48      46.45      46.08      44.44      44.23
                                                          ======================================================
        Total............................................      92.92      75.95      77.58      69.31     70.57 
----------------------------------------------------------------------------------------------------------------
*Anthropogenic sources of ozone precursors.                                                                     

    The projections show that the area will continue to demonstrate 
attainment of the ozone NAAQS with current control measures. The 
Monterey Bay Area is not subject to additional emission reduction 
requirements for the CAA (since the area can demonstrate maintenance of 
the NAAQS for the 10 year maintenance period without additional 
controls). In addition, the emission inventory projections contained in 
the maintenance plan show a decrease in VOC emissions and NO<INF>X 
emissions.
    Continued attainment of the ozone NAAQS in the Monterey Bay Area 
depends, in part, on the State's efforts to track indicators of 
continued attainment during the maintenance period. MBUAPCD will 
analyze annually the three most recent consecutive years of ambient air 
quality monitoring data to verify continued attainment of the national 
ozone standard, in accordance with 40 CFR part 50, appendix H. The 
District will submit to EPA an annual report of data collected from the 
previous calendar year. This information, in conjunction with the 
reports from the previous two years, will provide adequate information 
for determining continued compliance with the ozone NAAQS.

5.D. Contingency Plan

    The level of VOC and NO<INF>X emissions in the Monterey Bay Area 
will largely determine its ability to stay in compliance with the ozone 
NAAQS in the future. Despite best efforts to demonstrate continued 
compliance with the NAAQS, the ambient air pollutant concentrations may 
exceed or violate the NAAQS. Therefore, as required pursuant to section 
175A, the District has developed a contingency plan, including specific 
measures with a schedule for implementation in the event of a future 
ozone air quality problem. The District has chosen three monitored 
exceedances of the NAAQS at one monitoring site within a consecutive 
three year period as the trigger for the contingency plan.
    At the time of local adoption of the redesignation request and 
maintenance plan, the District identified several VOC and NO<INF>X 
stationary source control measures as the contingency measures which 
would be implemented should the triggering event occur at a monitoring 
site during the maintenance period. Tables 3.A. and 3.B., below, 
summarize the contingency control measures. Rules to implement these 
controls are scheduled for adoption through 1997. However, should the 
triggering threshold described above occur before adoption, adoption 
would be scheduled within six months of the triggering event. When 
contingency measures are triggered, implementation of the measures will 
occur within 6 to 24 months of rule adoption.

                   Table 3.A.VOC--Contingency Measures                  
------------------------------------------------------------------------
                                                          VOC reductions
                  Title                   Action needed       (TPD)     
------------------------------------------------------------------------
Adhesives...............................  Adopt                  .39-.4 
Architectural Coatings (rule 426).......  Revise                    .35 
Automobile Refinishing..................  Adopt               1.04-1.12 
Cutback Asphalt Paving (rule 425).......  Revise              2.15-2.39 
Disposal of Organic Wastes/Hazardous      Adopt                     N/A 
 Waste Minimization.                                                    
Fiberglass Fabrication/Polyester Resin    Adopt                     .02 
 Use.                                                                   
Fixed & Floating Roof Petroleum Storage   Revise                    .23 
 Tanks (rule 417).                                                      
Fugitive Emissions from Petroleum         Adopt                     .06 
 Production.                                                            
Furniture Staining......................  Adopt                     .04 
Graphic Arts Printing & Coating           Adopt                     .06 
 Operations.                                                            
Landfill Gas Collection Systems.........  Adopt               1.52-1.63 
Marine Coatings.........................  Adopt                     .01 
Petroleum Production & Separation.......  Adopt                     N/A 
Petroleum Sumps, Wastewater Separators &  Adopt                     .08 
 Well Cellars.                                                          
Plastic Coatings........................  Adopt                     N/A 
Semiconductor Manufacturing Operations..  Adopt                     N/A 

[[Page 2604]]

                                                                        
Spray Booths-Misc. Coating & Cleanup      Revise              1.55-1.61 
 Solvents (rule 429).                                                   
Wood Products Coatings..................  Adopt                     .19 
------------------------------------------------------------------------


                  Table 3.b.--NO<INF>X Contingency Measures                  
------------------------------------------------------------------------
                                                          NO<INF>x reductions
                  Title                   Action needed       (TPD)     
------------------------------------------------------------------------
Boilers, Steam Generators...............  Adopt                3.36-3.4 
Kilns...................................  Adopt                3.2-3.32 
Stationary Internal Combustion Engines..  Adopt                     .97 
------------------------------------------------------------------------

5E. Subsequent Maintenance Plan Revisions

    In accordance with section 175A(b) of the Act, the District has 
agreed to submit a revised maintenance SIP eight years after the area 
is redesignated to attainment. Such revised SIP will provide for 
maintenance for an additional ten year period.

V. Revisions to the SIP

1. 1990 Base Year Inventory

    CARB submitted a revised 1990 base year emissions inventory to EPA 
on March 30, 1995 as required under section 182(a)(1). Table 4 below 
summarizes the 1990 peak ozone season weekday inventories submitted on 
March 30, 1995.

                                        1990 Base Year Inventory Summary*                                       
                                                 [Tons Per Day]                                                 
----------------------------------------------------------------------------------------------------------------
                                   Stationary                  Onroad      Offroad                              
  1990 peak ozone season (tpd)       point      Stationary     mobile       mobile    Anthropogenic    Biogenic 
                                     source    area source     source       source        total         source  
----------------------------------------------------------------------------------------------------------------
VOC.............................         4.06        51.23        37.08         6.41         98.80        171.00
NO<INF>X.............................        25.38         6.93        41.21        17.53         91.06   ...........
CO..............................        34.62        22.62       309.81        68.97        436.01   ...........
----------------------------------------------------------------------------------------------------------------

    Section 182(a)(1) of the CAA requires States with ozone 
nonattainment areas classified marginal and above to submit base year 
(1990) emission inventories by November 15, 1992, as a revision to the 
SIP. The inventories are to be comprehensive, accurate, and current 
inventories of actual emissions from all sources, in accordance with 
the guidance provided by the EPA Administrator.
    The State submitted base year annual and peak season inventories 
for each of the ozone precursors on November 17, 1992 and subsequently 
revised those inventories. The latest submittal of revised annual 
average and peak ozone season average weekday 1990 inventories for VOC, 
NO<INF>X, and carbon monoxide (CO) were submitted on March 30, 1995 as 
clarification of the inventories adopted by the MBUAPCD Board on 
October 19, 1994 and submitted by the State to EPA on November 15, 
1994.

2. Emission Statement Rule

    The EPA is approving Regulation III, Rule 300, parts 4.4-4.4.3, the 
Emission Statement (ES) Rule for the Monterey Bay ozone nonattainment 
area as a revision to the California SIP, in accord with CAA section 
182(a)(3)(B)(i) for all ozone nonattainment areas classified marginal 
and above. The CAA mandates the adoption of a rule which requires 
owners or operators of each stationary source of VOC or NO<INF>X to 
provide the State with a statement showing actual emissions of those 
pollutants. The ES must be in a form prescribed by the EPA 
Administrator, unless the Administrator accepts an equivalent 
alternative developed by the State. Section 182(a)(3)(B)(ii) allows 
States to waive the application of the ES rule for any class or 
category of stationary sources which emit less than 25 tons per year of 
VOC or NO<INF>X if the State, in its submissions of base year or 
periodic inventories, provides an inventory of emissions from such 
class or category of sources based on the use of emission factors 
established by the Administrator or other methods acceptable to the 
Administrator.
    On January 7, 1992, EPA approved an equivalent alternate form of ES 
developed by the State. However, the State failed to submit ES rules 
for parts of seven ozone nonattainment areas, including the Monterey 
Bay Area, by the November 15, 1992 CAA deadline. On January 15, 1993, 
EPA issued a letter to the State finding that the State had failed to 
meet the CAA deadline for submittal of the ES rule. This action 
triggered the start of sanctions and Federal Implementation Plan (FIP) 
clocks. On June 9, 1993, the District adopted the above-referenced 
rule. The State subsequently submitted the ES rule for the Monterey Bay 
Area on November 18, 1993. On June 22, 1994, by letter, EPA notified 
the State of the completeness of the ES rule, thus stopping the 
sanction clocks. With today's approval of the ES rule, the FIP clock is 
also halted for the Monterey Bay Area.
    The ES rule requires: (1) Emission data from stationary sources of 
VOC and NO<INF>X, (2) the source owner or operator's certification that 
the emission data/information is accurate to the best of his/her 
knowledge, and (3) the data to be reported on a specific form or in a 
specific format. The rule also waives reporting requirements for 
facilities with the potential to emit less that 25 tons per year of VOC 
or NO<INF>X.

3. VOC RACT Rule Correction

    Section 182(a)(2) requires ozone nonattainment areas to adopt and 
correct RACT rules pursuant to pre-

[[Page 2605]]

 amended Act section 172(b) as interpreted in pre-amended Act guidance. 
<SUP>7 EPA developed a series of Control Technology Guideline (CTG) 
documents based on the underlying requirements of the Act and which 
specify the presumptive norms for what is RACT for specific source 
categories. The CTGs applicable to this rule are entitled ``Control of 
Hydrocarbons from Tank Truck Gasoline Loading Terminals'' (EPA-450/2-
77-026) and ``Control of Volatile Organic Emissions from Bulk Gasoline 
Plants'' (EPA-450/2-77-035). In general, these guidance documents have 
been set forth to ensure that VOC rules are fully enforceable and 
strengthen or maintain the SIP.
---------------------------------------------------------------------------

    \7\ Among other things, the pre-amendment guidance consists of 
those portions of the proposed Post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
Clarification to Appendix D of November 24, 1987 Federal Register 
Notice'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988); and the existing control 
technique guidelines (CTGs).
---------------------------------------------------------------------------

    MBUAPCD's revised Rule 419, Bulk Gasoline Plants and Terminals, was 
adopted on November 23, 1994 and submitted to EPA by CARB on November 
30, 1994. EPA found this rule complete on December 7, 1994. The rule 
includes the following significant changes from the current SIP 
version:

<box>  Added definitions section
<box>  Strengthened provisions for bulk terminals
<box>  Added provisions for bulk plants
<box>  Added recordkeeping requirements
<box>  Added test methods

EPA has reviewed this rule and has determined the rule to be consistent 
with the CAA requirements, and EPA regulations as found in section 110 
and Part D of the CAA and 40 CFR part 51, and EPA policy. Thus, EPA is 
approving, as part of this direct final action, the MBUAPCD VOC RACT 
Rule 419--Bulk Gasoline Plants and Terminals.

4. NO<INF>X RACT Rule 431

    The air quality planning requirements for the reduction of NO<INF>X 
emissions through RACT are set out in section 182(f) of the CAA.<SUP>8 
Section 182(f) of the Clean Air Act requires States to apply the same 
requirements to major stationary sources of NO<INF>X (``major'' as 
defined in section 302 and section 182 (c), (d), and (e)) as are 
applied to major stationary sources of VOCs, in moderate or above ozone 
nonattainment areas.
---------------------------------------------------------------------------

    \8\ On November 25, 1992, EPA published a NPRM entitled ``State 
Implementation Plans; Nitrogen Oxides Supplement to the General 
Preamble; Clean Air Act Amendments of 1990 Implementation of Title 
I; Proposed Rule,'' (the NO<INF>X Supplement) which describes the 
requirements of section 182(f). The November 25, 1992, notice should 
be referred to for further information on the NO<INF>X requirements 
and is incorporated into this document by reference.
---------------------------------------------------------------------------

    NO<INF>X emissions contribute to the production of ground level 
ozone and smog. The MBUAPCD rule 431 controls emissions from utility 
power boilers. The rule was adopted as part of the District's efforts 
to achieve the National Ambient Air Quality Standard (NAAQS) for ozone, 
as well as to satisfy the mandates of the California State Clean Air 
Act requirements. The rule was submitted in response to the CAA 
requirements cited above.
    However, subsequent to the complete submittal of the NO<INF>X rule 
pursuant to the CAA, the District applied for an exemption from the 
NO<INF>X RACT requirements pursuant to Section 182(f) of the CAA.<SUP>9 
The basis for the Monterey Bay Area's exemption was that the area had 
achieved the ozone standard, as demonstrated by three years of 
monitoring data, without having implemented the NO<INF>X measures. 
While the District had adopted and submitted the measure in response to 
both the state and federal requirements, the emission reductions 
obtained by the rules would not occur until full implementation in the 
future. Subsequently, EPA evaluated the exemption request and published 
approval for the Monterey Bay Area's petition for a NO<INF>X RACT 
exemption on April 25, 1995 (60 FR 20233).
---------------------------------------------------------------------------

    \9\  See ``Guidance for Determining the Applicability of 
Nitrogen Oxides Requirements Under Section 182(f)'', issued by EPA's 
Office of Air Quality Planning and Standards, December 1993 and 
EPA's NO<INF>X Supplement to the General Preamble, 57 FR 55628, 
November 25, 1992.
---------------------------------------------------------------------------

    The MBUAPCD has identified the reductions obtained from Rule 431 as 
contributing to future maintenance of the ozone standard.
    EPA has evaluated Monterey's rule 431 for consistency with the 
requirements of the CAA and EPA regulations, as found in section 110, 
and part D of the CAA and 40 CFR part 51 (Requirements for Preparation, 
Adoption and Submittal of Implementation Plans). The EPA interpretation 
of these requirements, which forms the basis for this action, appears 
in the NO<INF>X Supplement and various EPA policy guidance 
documents.<SUP>10 Among these provisions is the requirement that a 
NO<INF>X rule must, at a minimum, provide for the implementation of 
RACT for stationary sources of NO<INF>X emissions. However, because the 
measure is being incorporated into the SIP as a maintenance measure for 
the area's redesignation plan, and since the District applied for and 
received a NO<INF>X RACT exemption, the rule is not being evaluated for 
meeting the RACT emission limits pursuant to section 182(f) of the CAA. 
Rather, the rule is being incorporated into the SIP as an attainment 
maintenance measure for ozone, and is being evaluated for SIP 
enforceability purposes.
---------------------------------------------------------------------------

    \10\ Among other things, the pre-amendment guidance consists of 
those portions of the proposed post-1987 ozone and carbon monoxide 
policy that concern RACT, 52 FR 45044 (November 24, 1987); ``Issues 
Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations, 
Clarification to appendix D of November 24, 1987 Federal Register 
Notice'' (Blue Book) (notice of availability was published in the 
Federal Register on May 25, 1988).
---------------------------------------------------------------------------

    EPA has evaluated the submitted rule and has determined that it is 
consistent with the CAA, EPA regulations and EPA policy. Therefore, the 
rule is being approved under section 110(k)(3) of the CAA as meeting 
the requirements of section 110(a) and Part D.

VI. Conclusion

    In today's final action, EPA is determining that as a consequence 
of EPA's determination that the Monterey Bay Area ozone nonattainment 
area has attained the ozone standard and continues to attain the 
standard at this time, the requirements of section 182(b)(1) concerning 
the submission of the 15 percent plan and ozone attainment 
demonstration and the requirements of section 172(c)(9) concerning 
contingency measures are not applicable to the area so long as the area 
does not violate the ozone standard prior to the effective date of this 
redesignation.
    Finally, EPA is approving the Monterey Bay Area ozone maintenance 
plan as it meets the requirements of section 175A, and the Agency is 
redesignating the Monterey Bay Area to attainment for ozone because the 
State of California has demonstrated compliance with the requirements 
of section 107(d)(3)(E) for redesignation. Additionally, EPA is 
approving the 1990 emissions inventory, VOC RACT Rule 419 and NO<INF>X 
RACT Rule 431 corrections, and the Emissions Statement Rule as 
revisions to the California SIP for the Monterey Bay Area as they meet 
the requirements of sections 182(a) and (b) of the Act.
    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 shall be considered 
separately in light of specific technical, economic, and environmental 
factors and in relation to relevant statutory and regulatory 
requirements. The ozone SIP is designed to satisfy the requirements

[[Page 2606]]

of Part D of the CAA and to provide for attainment and maintenance of 
the ozone NAAQS. This final redesignation should not be interpreted as 
authorizing the State of California to delete, alter, or rescind any of 
the VOC or NO<INF>X emission limitations and restrictions contained in 
the approved ozone SIP. Changes to the ozone SIP VOC RACT regulations 
rendering them less stringent than those contained in the EPA approved 
plan cannot be made unless a revised plan for attainment and 
maintenance is submitted and approved by EPA. Unauthorized relaxations, 
deletions, and/or changes could result in both a finding of 
nonimplementation (section 173(b) of the CAA) and in a SIP deficiency 
call made pursuant to section 110(a)(2)(H) of the CAA.

Regulatory Process

    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.
    Redesignation of an area to attainment under section 107(d)(3)(E) 
of the CAA, and approval of an emissions inventory do not impose any 
new requirements on small entities. Additionally, the approval of the 
emission statement rule, which waives reporting requirements for 
facilities with the potential to emit less than 25 tons per year of VOC 
or NO<INF>X, does not impose any new requirements on small entities. 
Redesignation is an action that affects the status of a geographical 
area and does not impose any regulatory requirements on sources. SIP 
approvals under sections 110 and 301(a) and subchapter I, Part D of the 
CAA do not create any new requirements, but simply approve the 
requirements that the State is already imposing. Therefore, the 
Administrator certifies that the approval of the SIP revisions and 
redesignation will not affect a substantial number of small entities. 
Moreover, due to the nature of the Federal-State relationship under the 
CAA, preparation of a regulatory flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
CAA forbids EPA to base Agency actions concerning SIPs on such grounds. 
Union Electric Co. v. U.S. EPA, 427 U.S. 246, 256-66 (S. Ct. 1976); 42 
U.S.C. 7410(a)(2).

Unfunded Mandates

    Under Sections 202, 203 and 205 of the Unfunded Mandates Reform Act 
of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 1995, 
EPA must undertake various actions in association with proposed or 
final rules that include a Federal mandate that may result in estimated 
costs of $100 million or more to the private sector, or to State, 
local, or tribal governments in the aggregate.
    Through submission of the state implementation plan or plan 
revisions approved in this action, the State and any affected local or 
tribal governments have elected to adopt the program provided for under 
section 175A and 182(a)(1) of the Clean Air Act. Also, EPA's final 
action approving the emission inventory does not impose any federal 
intergovernmental mandate, as defined in section 101 of the Unfunded 
Mandates Act. The rules and commitments approved in this action may 
bind State, local and tribal governments to perform certain actions and 
also may ultimately lead to the private sector being required to 
perform certain duties. To the extent that the rules and commitments 
being approved by this action will impose or lead to the imposition of 
any mandate upon the State, local or tribal governments either as the 
owner or operator of a source or as a regulator, or would impose or 
lead to the imposition of any mandate upon the private sector, EPA's 
action will impose no new requirements; such sources are already 
subject to these requirements under State law. Accordingly, no 
additional costs to State, local, or tribal governments, or to the 
private sector, result from this action. Therefore, EPA has determined 
that this final action does not include a mandate that may result in 
estimated costs of $100 million or more to State, local, or tribal 
governments in the aggregate or to the private sector.
    Under section 307(b)(1) of the Act, 42 U.S.C. 7607(b)(1), petitions 
for judicial review of this action must be filed in the United States 
Courts of Appeals for the appropriate circuit by March 18, 1997. Filing 
a petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements (See section 307(b)(2) of the Act, 42 
U.S.C. 7607(b)(2).
    Under 5 U.S.C. 801(a)(1)(A) as added 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 5 
U.S.C. 804(2).
    These actions have been classified as Table 2 and Table 3 actions 
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 an October 14,1993 memorandum from Michael H. 
Shapiro, Acting Assistant Administrator for Air and Radiation and 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 the requirements of section 6 of 
Executive Order 12866.

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Reporting and recordkeeping requirements, Volatile 
organic compounds.

40 CFR Part 81

    Environmental Protection Air pollution control, National Parks, 
Wilderness Areas.

    Note: Incorporation by reference of the State Implementation 
Plan for the State of California was approved by the Director of the 
Federal Register on July 1, 1982.

    Dated: November 15, 1996.
Felicia Marcus,
Regional Administrator.

    Subpart F of part 52, chapter I, title 40 of the Code of Federal 
Regulations is amended as follows:

PART 52--[AMENDED]

    1. The authority citation for part 52 continues to read as follows:
    Authority: 42 U.S.C. 7401-7671q.

Subpart F--California

    2. Section 52.220 is amended by adding paragraphs 
(c)(194)(i)(F)(5), (c)(207)(i)(E)(1), (c)(209), (c)(213), and 
(c)(225)(i)(E)(1) to read as follows:

[[Page 2607]]

Sec. 52.220   Identification of plan.

* * * * *
    (c) * * *
    (194) * * *
    (i) * * *
    (F) * * *
    (5) Rule 300--Regulation 3, Part 4, Paragraph 4.4 adopted on June 
9, 1993.
* * * * *
    (207) * * *
    (i) * * *
    (E) * * *
    (1) Rule 419, adopted on November 23, 1994.
* * * * *
    (209) Redesignation Request and Ozone Maintenance Plan for the 
redesignation of the Monterey Bay Unified Air Pollution Control 
District submitted on July 14, 1994 and November 14, 1994, 
respectively, by the Governor's designee.
    (i) Incorporation by reference.
    (A) Maintenance Plan for the redesignation of the Monterey Bay Area 
adopted on October 19, 1994 by the Monterey Bay Unified Air Pollution 
Control District, October 12, 1994 by the Association of Monterey Bay 
Area Governments, and October 6, 1994 by the Council of San Benito 
County Governments.
* * * * *
    (213) Statewide 1990 Base-year Ozone Precursor Emission Inventory 
for Ozone Nonattainment Areas submitted on March 30, 1995, by the 
Governor's designee.
    (i) Incorporation by reference.
    (A) Monterey Bay Area Unified Air Pollution Control District.
    (1) 1990 Base-year ozone emissions inventory, adopted on October 
19, 1994.
* * * * *
    (225) * * *
    (i) * * *
    (E) * * *
    (1) Rule 431, adopted on August 16, 1995.
* * * * *

PART 81--[AMENDED]

    1. The authority citation for part 81 continues to read as follows:

    Authority: 42 U.S.C. 7407, 7501, 7515, 7601.

Subpart B--Designation of Air Quality Control Regions

    2. In Sec. 81.305, the table for ``California--Ozone'' is amended 
by revising the entry ``Monterey Bay Area'' to read as follows:


Sec. 81.305   California.

* * * * *

                                                                                        California--Ozone                                                                                       
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       Designation                                                                 Classification                               
           Designated area           -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Date\1\                                  Type                                 Date\1\                                  Type                
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                
                                       *                  *                  *                  *                  *                  *                  *                                      
Monterey Bay Area...................  February 18, 1997....................  Attainment...........................                                                                              
  Monterey County                                                                                                                                                                               
  San Benito County                                                                                                                                                                             
  Santa Cruz County                                                                                                                                                                             
                                                                                                                                                                                                
                                       *                  *                  *                  *                  *                  *                  *                                      
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
This date is November 15, 1990, unless otherwise noted.                                                                                                                                         

[FR Doc. 97-876 Filed 1-16-97; 8:45 am]
BILLING CODE 6560-50-W