Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 2597

withdraw the final action. All public

comments received will be addressed in

a subsequent final rule based on this

action serving as a proposed rule. The

EPA will not institute a second

comment period on this action. Any

parties interested in commenting on this

action should do so at this time. If no

such comments are received, the public

is advised that this action will be

effective on March 18, 1997.

Nothing in this action should be

construed as permitting, allowing or

establishing a precedent for any future

request for revision to any SIP. Each

request for revision to the SIP shall be

considered separately in light of specific

technical, economic, and environmental

factors and in relation to relevant

statutory and regulatory requirements.

IV. Administrative Requirements

A. Executive Order 12866

This action has been classified as a

Table 3 action for signature by the

Regional Administrator under the

procedures published in the Federal

Register on January 19, 1989 (54 FR

2214–2225), as revised by a July 10,

1995, memorandum from Mary D.

Nichols, Assistant Administrator for Air

and Radiation. The Office of

Management and Budget (OMB) has

exempted this regulatory action from

Executive Order 12866 review.

B. Regulatory Flexibility

Under the Regulatory Flexibility Act,

5 U.S.C. section 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.

sections 603 and 604. Alternatively,

EPA may certify that the rule will not

have a significant impact on a

substantial number of small entities.

Small entities include small businesses,

small not-for-profit enterprises, and

government entities with jurisdiction

over populations of less than 50,000.

SIP approvals under section 110 and

subchapter I, part D of the Act do not

create any new requirements, but

simply approve requirements that the

State is already imposing. Therefore,

because the Federal SIP approval does

not impose any new requirements, the

Administrator certifies that it does not

have a significant impact on any small

entities affected. Moreover, due to the

nature of the Federal-State relationship

under the Act, preparation of a

flexibility analysis would constitute

Federal inquiry into the economic

reasonableness of the State action. The

Clean Air Act forbids EPA to base its

actions concerning SIPs on such

grounds. Union Electric Co. versus

EPA., 427 U.S. 246, 256–66 (1976); 42

U.S.C. 7410(a)(2).

C. Unfunded Mandates

Under Section 202 of the Unfunded

Mandates Reform Act of 1995, signed

into law on March 22, 1995, EPA must

undertake various actions in association

with any proposed or final rule that

includes a Federal mandate that may

result in estimated costs to state, local,

or tribal governments in the aggregate;

or to the private sector, of $100 million

or more. This Federal action approves

pre-existing requirements under state or

local law, and imposes no new

requirements. Accordingly, no

additional costs to state, local, or tribal

governments, or the private sector,

result from this action.

D. Submission to Congress and the

General Accounting Office

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).

E. Petitions for Judicial Review

Under section 307(b)(1) of the Act,

petitions for judicial review of this

action must be filed in the United States

Court 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 the

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)).

List of Subjects in 40 CFR Part 52

Environmental protection, Air

pollution control, Hydrocarbons,

Incorporation by reference,

Intergovernmental relations, Ozone,

Reporting and recordkeeping

requirements.

Dated: November 25, 1996.

Valdas V. Adamkus,

Regional Administrator.

For the reasons stated in the

preamble, 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.

2. Section 52.770 is amended by

adding paragraph (c)(111) to read as

follows:

§52.770 Identification of Plan.

* * * * *

(c) * * *

(111) On November 21, 1995, and

February 14, 1996, Indiana submitted a

rule for the control of volatile organic

compound emissions from volatile

organic liquid storage operations in

Clark, Floyd, Lake, and Porter Counties.

(i) Incorporation by reference. 326

Indiana Administrative Code 8–9:

Volatile Organic Liquid Storage Vessels,

Section 1: Applicability, Section 2:

Exemptions, Section 3: Definitions,

Section 4: Standards, Section 5: Testing

and procedures, Section 6: Record

keeping and reporting requirements.

Adopted by the Indiana Air Pollution

Control Board May 3, 1995. Filed with

the Secretary of State December 19,

1995. Published at Indiana Register,

Volume 19, Number 5, February 1, 1996.

Effective January 18, 1996.

[FR Doc. 97–1081 Filed 1–16–97; 8:45 am]

BILLING CODE 6560–50–P

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.

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 (NOX) RACT rule 431

as revisions to California’s State

Implementation Plan (SIP) for ozone. In

addition, EPA is determining that the
2598 Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations

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. NOX 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
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 2599

1EPA 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.

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’’).

3The 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.

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.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).

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) 2

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. 3

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
2600 Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations

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.

5Congress 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.

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. 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.

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 preamendment 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 NOX 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. 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
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 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.

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 NOX 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

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 Storage ............................................................................. 08/25/93 02/15/95, 60 FR 8565.

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 Tanks ........................................................................... 11/23/94 02/09/96, 61 FR 4892.

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

Pollutant Source category 1979 1987 1990

ROG*(TPD) ................ Stationary ......................................................................................................... 67 62 50

Mobile .............................................................................................................. 41 44 46

Total ................................................................................................................. 108 106 96

NOX ............................ Stationary ......................................................................................................... 82 34 32

Mobile .............................................................................................................. 46 60 61

Total ................................................................................................................. 128 94 93

*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.
2602 Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations

6 ‘‘Procedures for Processing Requests to

Redesignate Areas to Attainment,’’ John Calcagni,

Director, Air Quality Management Division,

September 4, 1992.

The actual reduction in overall

emissions from 1979 to 1990 was 12

tons per day (TPD) of VOC and 35 TPD

of NOX, 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

NOX 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.6

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 NOX 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 NOX (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.
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 2603

TABLE 2.B.—NOX 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

NOX 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 NOX 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 NOX 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

Title Action

needed

VOC reductions (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 Waste Minimization ....................................................................................... Adopt N/A

Fiberglass Fabrication/Polyester Resin Use .................................................................................................................. Adopt .02

Fixed & Floating Roof Petroleum Storage Tanks (rule 417) ......................................................................................... Revise .23

Fugitive Emissions from Petroleum Production ............................................................................................................. Adopt .06

Furniture Staining ........................................................................................................................................................... Adopt .04

Graphic Arts Printing & Coating Operations .................................................................................................................. Adopt .06

Landfill Gas Collection Systems .................................................................................................................................... Adopt 1.52–1.63

Marine Coatings ............................................................................................................................................................. Adopt .01

Petroleum Production & Separation .............................................................................................................................. Adopt N/A

Petroleum Sumps, Wastewater Separators & Well Cellars .......................................................................................... Adopt .08

Plastic Coatings ............................................................................................................................................................. Adopt N/A

Semiconductor Manufacturing Operations ..................................................................................................................... Adopt N/A
2604 Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations

TABLE 3.A.VOC—CONTINGENCY MEASURES—Continued

Title Action

needed

VOC reductions (TPD)

Spray Booths-Misc. Coating & Cleanup Solvents (rule 429) ........................................................................................ Revise 1.55–1.61

Wood Products Coatings ............................................................................................................................................... Adopt .19

TABLE 3.B.—NOX CONTINGENCY MEASURES

Title Action

needed

NOx reductions (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]

1990 peak ozone season (tpd) Stationary

point source

Stationary

area source

Onroad mobile sourceOffroad mobile sourceAnthropogenic totalBiogenic

source

VOC .................................................................................. 4.06 51.23 37.08 6.41 98.80 171.00

NOX ................................................................................... 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, NOX, 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 NOX 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 NOX 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

NOX, (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 NOX.

3. VOC RACT Rule Correction

Section 182(a)(2) requires ozone

nonattainment areas to adopt and

correct RACT rules pursuant to pre-
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 2605

7Among 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).

8On 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 NOX Supplement)

which describes the requirements of section 182(f).

The November 25, 1992, notice should be referred

to for further information on the NOX requirements

and is incorporated into this document by

reference.

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 NOX Supplement to the General

Preamble, 57 FR 55628, November 25, 1992.

10Among 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).

amended Act section 172(b) as

interpreted in pre-amended Act

guidance. 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.

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:

■ Added definitions section

■ Strengthened provisions for bulk

terminals

■ Added provisions for bulk plants

■ Added recordkeeping requirements

■ 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. NOX RACT Rule 431

The air quality planning requirements

for the reduction of NOX emissions

through RACT are set out in section

182(f) of the CAA.8 Section 182(f) of the

Clean Air Act requires States to apply

the same requirements to major

stationary sources of NOX (‘‘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.

NOX 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 NOX rule pursuant to

the CAA, the District applied for an

exemption from the NOX RACT

requirements pursuant to Section 182(f)

of the CAA.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 NOX 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 NOX RACT exemption on

April 25, 1995 (60 FR 20233).

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 NOX Supplement and

various EPA policy guidance

documents.10 Among these provisions is

the requirement that a NOX rule must,

at a minimum, provide for the

implementation of RACT for stationary

sources of NOX 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 NOX

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.

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 NOX 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
2606 Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations

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 NOX 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

NOX, 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:
Federal Register / Vol. 62, No. 12 / Friday, January 17, 1997 / Rules and Regulations 2607

§ 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 § 81.305, the table for

‘‘California—Ozone’’ is amended by

revising the entry ‘‘Monterey Bay Area’’

to read as follows:

§ 81.305 California.

* * * * *

CALIFORNIA—OZONE

Designated area

Designation Classification

Date1 Type Date1 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

40 CFR Part 799

[OPPTS–42150B; FRL–5570–2]

RIN 2070–AB94

Testing Consent Order For Phenol

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final consent agreement and

order; direct final rule.

SUMMARY: Pursuant to section 4 of the

Toxic Substances Control Act (TSCA),

EPA has issued a testing consent order

(Order) that incorporates an enforceable

consent agreement (ECA) with

AlliedSignal Inc., Aristech Chemical

Corporation, The Dow Chemical

Company, Dakota Gasification

Company, Georgia Gulf Corporation,

General Electric Company, GIRSA, Inc.,

JLM Chemicals, Inc., Kalama Chemical,

Inc., Merichem Company, Mitsubishi

International Corporation, Mitsui Co.

(U.S.A.), Inc., Shell Chemical Company,

and Texaco Refining Marketing Inc.

(collectively the Companies). The

Companies have agreed to perform

certain health effects tests on phenol

(CAS No. 108–95–2). This notice

summarizes the ECA and adds phenol to

the list of chemicals subject to testing

consent orders and hence subject to

export notification requirements.

EFFECTIVE DATE: The effective date of the

ECA and Order (including the export

notification requirements) is January 17,

1997. The effective date for the addition

of phenol to the list of chemicals in 40

CFR 799.5000 subject to testing consent

orders, and thus, the effective date of

the export notification requirements

contained in this notice for those

entities not party to the ECA is March

18, 1997.

If EPA receives any adverse comments

on the addition of phenol to the list of

chemicals contained in 40 CFR

799.5000, which makes the export

notification requirements in this notice

applicable to all exporters of phenol,

EPA will withdraw this rule. Instead,

EPA will issue a proposed rule

addressing this issue and will provide a

30-day period for public comment. If no

adverse comments are received, the rule

will become effective as a final rule on

the date specified.

ADDRESSES: Each comment must bear

the docket control number OPPTS–

42150B. All comments should be sent in

triplicate to: OPPT Document Control

Officer (7407), Office of Pollution

Prevention and Toxics, Environmental

Protection Agency, 401 M Street, SW.,

Room G–099, East Tower, Washington,

DC 20460.

Persons submitting information any

portion of which they believe is entitled

to treatment as confidential business

information (CBI) by EPA must assert a

business confidentiality claim in

accordance with 40 CFR 2.203(b) for

each such portion. This claim must be

made at the time that the information is

submitted to EPA. If a submitter does

not assert a confidentiality claim at the

time of submission, EPA will treat the

information as non-confidential and

may make it available to the public

without further notice to the submitter.

Three sanitized copies of any comments