[Federal Register Volume 66, Number 121 (Friday, June 22, 2001)]
[Proposed Rules]
[Pages 33495-33504]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15619]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[WI85-01-7316; FRL-7000-6]


Approval and Promulgation of Air Quality Plans; Wisconsin; Post-
1996 Rate Of Progress Plan for the Milwaukee-Racine Ozone Nonattainment 
Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA proposes to approve the post-1996 Rate-Of-Progress 
(ROP) plan submitted by the State of Wisconsin for the Milwaukee-Racine 
ozone nonattainment area, as a requested revision of the State 
Implementation Plan (SIP) for ozone. The Clean Air Act (Act) requires a 
post-1996 ROP plan for the Milwaukee-Racine ozone nonattainment area. 
The purpose of the post-1996 ROP plan is to incrementally provide for 
progress toward attainment of the 1-hour ozone standard in the 
Milwaukee-Racine ozone nonattainment area by reducing ground-level 
ozone precursor emissions. The submitted plan, which covers the period 
of 1996 through 1999 and emission reductions occurring by November 15, 
1999, shows that Wisconsin reduced emissions of volatile organic 
compounds (VOC), ozone-forming pollutants by the amounts required by 
the Act.

DATES: EPA must receive comments in writing by July 23, 2001.

ADDRESSES: Written comments should be sent to: Carlton Nash, Chief, 
Regulation Development Section, Air Programs Branch (AR-18J), U.S. 
Environmental Protection Agency, 77 West Jackson Boulevard, Chicago, 
Illinois 60604.
    Copies of the state's submittal addressed in this proposed rule, 
and other relevant materials are available for public inspection during 
normal business hours at the following address: U.S. Environmental 
Protection Agency, Region 5, Air and Radiation Division, 77 West 
Jackson Boulevard, Chicago, Illinois 60604. Please contact Jacqueline 
Nwia at (312) 886-6081 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Jacqueline Nwia, Environmental 
Scientist, U.S. Environmental Protection Agency, Air and Radiation 
Division (AR-18J), 77 West Jackson Boulevard, Chicago cv, Illinois 
60604, (312) 886-6081, <a href="/cdn-cgi/l/email-protection#345a435d551a5e5557454151585d5a51745144551a535b42"><span class="__cf_email__" data-cfemail="0c627b656d22666d6f7d7969606562694c697c6d226b637a">[email protected]</span></a>.

[[Page 33496]]


SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,'' or 
``our'' mean EPA.
    This section provides additional information by addressing the 
following questions and topics:

I. What Is EPA Proposing to Approve In This Action?
II. What Is the Procedural Background of the Wisconsin Submittal?
III. The Wisconsin Post-1996 ROP Plan.
    A. What is a post-1996 ROP plan?
    B. What environmental benefits does the post-1996 ROP plan 
provide?
    C. What Wisconsin counties are in the Milwaukee-Racine ozone 
nonattainment area?
    D. Who is affected by the Wisconsin post-1996 ROP plan?
    E. What public review opportunities were provided?
    F. What criteria must a post-1996 ROP plan meet to be approved?
    G. What are the special requirements for claiming VOC reductions 
from sources outside the nonattainment area boundary?
IV. Wisconsin's Calculation of the Needed ROP Reduction.
    A. How did Wisconsin calculate the needed ROP?
    1. Emission Baselines.
    2. 1999 Emission Target Level to Meet ROP Emission Reduction 
Requirement.
    4. 1999 Projected Growth Level.
    5. Emission Reduction Needed for ROP Reduction Net-Of-Growth.
V. The Wisconsin Post-1996 ROP Plan Control Strategies.
    A. What are the criteria for acceptable control strategies?
    B. What are the control strategies under the Wisconsin post-1996 
ROP plan?
    1. Point/Area Sources.
    a. Wood Furniture Coating.
    b. Yeast Manufacturing.
    c. Screen Printing.
    d. Gray Iron and Steel Foundries.
    e. Industrial Adhesives.
    f. Lithographic Printing.
    g. Degreasing.
    h. Federal Architectural and Industrial Maintenance (AIM) 
Coating (Industrial).
    i. Federal AIM Coating.
    j. Autobody Refinishing.
    k. Stage 2 Vapor Recovery.
    l. Traffic Markings.
    m. Underground Gasoline Tank Vent Valves.
    n. Federal Commercial and Consumer Solvents.
    o. Reformulated Gasoline-Area Petroleum Sources.
    2. Mobile Sources.
    a. Federal Tier I Vehicle Tailpipe Standards.
    b. Reformulated Gasoline.
    c. Enhanced Motor Vehicle Inspection/Maintenance Program.
    d. Federal Gasoline Detergent Additive.
    e. Federal On-Board Vapor Recovery Canisters.
    f. Reformulated Gasoline--Off-Road Source.
    g. Federal Off-Road Engine Standards.
    C. What are the Federal Register citations for the federal 
approval or promulgation of the control measures?
    D. How did Wisconsin calculate the emission reductions for the 
control strategies?
    E. What amount of emission reduction does each control strategy 
achieve?
VI. EPA Review of the Post-1996 ROP Plan.
    A. Why is the Wisconsin Post-1996 ROP plan approvable?
VII. What Action Are We Proposing Today?
VIII. Administrative Requirements.
    A. Executive Order 12866
    B. Executive Order 13045
    C. Executive Order 13084
    D. Executive Order 13132
    E. Regulatory Flexibility
    F. Unfunded Mandates

I. What Is EPA Proposing to Approve In This Action?

    We are approving the post-1996 ROP plan for the Milwaukee-Racine 
ozone nonattainment area because the plan identifies control measures 
to achieve a projected 9 percent VOC emission reduction by November 15, 
1999. Section 182(c)(2) of the Act requires serious and above ozone 
nonattainment areas to submit plans that would achieve reductions in 
VOC emissions by at least 3 percent per year, net of growth, averaged 
over each consecutive 3 year period beginning in 1996 until the areas 
attainment date. These plans are referred to as rate-of-progress (ROP) 
plans. Section 182(c)(2) also requires such areas to submit a plan that 
demonstrates attainment of the ozone standard based on photochemical 
grid modeling or an equally effective method. The attainment 
demonstration and ROP plans were due to EPA by November 15, 1994.
    Many states, however, found it difficult to meet the date for 
submittal of an attainment demonstration and post-1996 ROP plan due 
primarily to an inability to address or control transport of ozone. We 
consequently recognized the efforts made by the states and the 
challenges in developing technical information and control measures 
with respect to these submittals in a memorandum entitled ``Ozone 
Attainment Demonstrations,'' dated March 2, 1995, from Mary D. Nichols, 
Assistant Administrator for Air and Radiation. The memorandum then 
allowed new time frames for these SIP submittals and divided the 
required SIP submittals into two phases. Generally, Phase I consists 
of: SIP measures providing for ROP reductions due by the end of 1999, 
an enforceable SIP commitment to submit any remaining required ROP 
reductions on a specified schedule after 1999, and an enforceable SIP 
commitment to submit the additional SIP measures needed for attainment. 
Phase II consists of the remaining ROP SIP measures, the attainment 
demonstration and additional local rules needed to attain, and any 
regional controls needed for attainment by all areas in the region.
    This action is proposing to approve Wisconsin's post-1996 ROP plan.

II. What Is the Procedural Background of the Wisconsin Submittal?

    On December 11, 1997, the State of Wisconsin submitted the post-
1996 ROP plan for the Milwaukee-Racine area as a requested SIP 
revision. The plan was submitted to meet the Act's requirement, in 
section 182(c)(2)(B), that the state demonstrate a 9 percent reduction 
of VOC emission in the Milwaukee-Racine ozone nonattainment area during 
the 3 year period between 1996 and 1999. We issued a completeness 
letter on December 29, 1998. Wisconsin subsequently submitted several 
supplements to the December 11, 1997 ROP plan, consisting of 
supplemental documentation, on August 5, 1999, January 31, 2000, March 
3, 2000, and February 2001.

III. The Wisconsin Post-1996 ROP Plan

A. What is a Post-1996 ROP Plan?

    An ROP plan is a strategy to achieve timely periodic reductions of 
emissions that produce ground-level ozone in areas that are not 
attaining the ozone National Ambient Air Quality Standards (NAAQS). A 
post-1996 ROP plan must demonstrate a projected 9 percent emission 
reduction of ozone-forming VOC emissions in those areas between 1996 
and 1999.
    ROP plans are a requirement of the Act under section 182. Section 
182(c)(2)(B) requires states with ozone nonattainment areas classified 
as serious and above to adopt and implement plans to achieve periodic 
reductions in VOC emissions after 1996. The requirement is intended to 
ensure that an area make progress toward attainment of the ozone NAAQS. 
The post-1996 ROP emission reductions must be achieved at a rate of 3 
percent per year relative to the 1990 baseline emissions, net of growth 
of emissions, averaged over three-year periods. The first three-year 9 
percent milestone, called the ``post-1996 ROP plan,'' must demonstrate 
that these emission reductions were projected to have occured by 
November 15, 1999. Because the Milwaukee-Racine ozone nonattainment 
area is classified as a severe area, the area was required to meet the 
post-1996 ROP requirement.
    The post-1996 ROP plan contains: (1) Documentation showing how the 
state

[[Page 33497]]

calculated the emission reduction(s) needed on a daily basis to achieve 
the 9 percent VOC emission reduction; (2) a description of the control 
measures used to achieve the emission reduction; and (3) a description 
of how the state determined the emission reduction from each control 
measure.
    The post-1996 ROP plan will contribute to continued progress toward 
achieving attainment by the Act's mandated date of November 15, 2007 
for the Milwaukee-Racine ozone nonattainment area.

B. What Environmental Benefits Does the Post-1996 ROP Plan Provide?

    The Wisconsin post-1996 ROP plan shows reductions of VOC emissions. 
VOC emissions contribute to the formation of ground-level ozone in the 
atmosphere.
    The post-1996 ROP plan demonstrates VOC emission reductions from 
sources within the Milwaukee-Racine ozone nonattainment area and 
several source categories within 100 kilometer of the nonattainment 
area boundary. Although some of the VOC reductions are from sources 
outside the nonattainment area, they are creditable towards the post-
1996 ROP plan. These outside VOC emissions contribute to ozone 
formation in the Milwaukee-Racine area, and reducing such emissions 
will contribute to the Milwaukee-Racine area's progress towards 
attainment.
    The reactivity of ozone causes health problems because it damages 
lung tissue, reduces lung function and sensitizes the lungs to other 
irritants. When inhaled, even at low levels, ozone can cause or 
aggravate a variety of respiratory problems, including shortness of 
breath, chest pain, wheezing, coughing, asthma, decreased lung 
capacity, and inflammation of lung tissue. Repeated exposure to ozone 
at elevated concentrations for several months may cause permanent 
structural damage to the lungs.
    Ozone also affects vegetation and ecosystems, leading to reductions 
in agricultural and commercial forest yields, reduced growth and 
survivability of tree seedlings, and increased plant susceptibility to 
disease and pests.

C. What Wisconsin Counties are in the Milwaukee-Racine Ozone 
Nonattainment Area?

    The Milwaukee-Racine ozone nonattainment area includes the counties 
of Kenosha, Milwaukee, Ozaukee, Racine, Washington, and Waukesha.

D. Who is Affected by the Wisconsin Post-1996 ROP Plan?

    Wisconsin's post-1996 ROP plan does not create any new control 
requirements. Instead, it demonstrates that existing state and federal 
regulations and control programs in the Milwaukee-Racine area will 
result in a 9 percent VOC emission reduction. The control measures in 
Wisconsin's plan affect a variety of industries, businesses, and motor 
vehicle owners. State regulations in the post-1996 ROP plan are 
federally enforceable through separate SIP revisions or through 
separate EPA promulgation. One exception is the state's motor vehicle 
inspection and maintenance program. We conditionally approved an 
enhanced motor vehicle inspection and maintenance program on January 
12, 1995 (60 FR 2881). Subsequently, Wisconsin submitted a revision on 
December 30, 1998 and is expected to submit another revision in the 
near future. These revisions must be finally approved prior to final 
approval of the post-1996 ROP plan.

E. What Public Review Opportunities Were Involved?

    Wisconsin afforded the public a 30 day opportunity for public 
comment on the post-1996 ROP plan from September 10, 1997 through 
October 10, 1997. Wisconsin also held a public hearing on the post-1996 
ROP plan on October 10, 1997.

F. What Criteria Must a post-1996 ROP Plan Meet to be Approved?

    Section 182(c)(2)(B) establishes elements that a post-1996 ROP plan 
must contain for approval. These elements are: (1) an emission 
baseline; (2) an emission target level; (3) an emission reduction 
estimate to compensate for emission growth projections and to reach the 
ROP emission reduction goal; and (4) emission reduction estimates for 
the plan's control measures. Through these elements, the plan must 
illustrate that the nonattainment area will achieve a 9 percent VOC 
emission reduction by November 15, 1999.
    We have issued several guidance documents for states to use in 
developing approvable post-1996 ROP plans. These documents address such 
topics as: (1) The relationship of ROP plans to other SIP elements 
required by the Act; (2) calculation of baseline emissions and emission 
target levels; (3) procedures for projecting emission growth; and (4) 
methodology for determining emission reduction estimates for various 
control measures, including federal measures.
    Our January 1994, policy document, Guidance on the Post-1996 Rate-
Of-Progress Plan and the Attainment Demonstration (post-1996 policy), 
provides states with an appropriate method to calculate the emission 
reductions needed to meet the ROP emission reduction requirement. A 
complete list of ROP guidance documents is provided in the Technical 
Support Document (TSD) for this rulemaking. You can get the TSD for 
this proposed rulemaking from the Region 5 office at the address 
indicated above.

G. What are the Special Requirements for Claiming VOC Reductions From 
Sources Outside the Nonattainment Area Boundary?

    On December 29, 1997, we issued a policy memorandum entitled, 
``Guidance for Implementing the 1-Hour Ozone and Pre-Existing PM10 
NAAQS'' (December 1997 policy) which provides additional guidance on 
the types of emission reductions that are creditable towards ROP. This 
guidance provides flexibility in terms of substituting of credits for 
ROP emission reductions, including expanding the geographic boundary of 
the area from which emission reductions may be obtained to meet the 
post-1996 ROP requirement. Specifically, areas may take credit for 
emission reductions obtained from sources outside the designated 
nonattainment area boundary for post-1996 plans. The geographic 
expansion for substitution of VOC emission reductions occurring outside 
the nonattainment area is limited to an area within 100 kilometers from 
the nonattainment area boundary. However, to take credit for VOC 
emission reductions outside the nonattainment area boundaries, the 
emissions from sources outside the nonattainment area that are involved 
must be included in the baseline ROP emissions and target ROP reduction 
calculation.
    Wisconsin claimed emission reduction credits for the following 
source categories: autobody refinishing, traffic markings, and organic 
solvents. Wisconsin included the emissions from these source categories 
outside the nonattainment area in the baseline ROP emissions and target 
ROP reduction calculation. The outside nonattainment counties included 
are: Brown, Calumet, Columbia, Dane, Dodge, Fond du Lac, Green, Green 
Lake, Jefferson, Marquette, Outagamie, Rock, Waushara, and Winnebago. 
These counties are within 100 kilometers of the Milwaukee-Racine ozone 
nonattainment area boundary.

[[Page 33498]]

IV. Wisconsin's Calculation of the Needed ROP Reduction.

A. How did Wisconsin Calculate the Needed ROP and Contingency Measure 
Reduction?

    The following table summarizes Wisconsin's post-1996 ROP 
calculations for determining the ROP emission reductions, as well as 
our adjustments to the calculations. We adjusted the calculations by 
removing the traffic markings emissions for the 100 kilometer boundary 
area, which Wisconsin included in the 1990 base year emission 
inventory. Wisconsin claimed emission reductions from this category, 
which we found not to be approvable because they are not permanent and 
enforceable. Consequently, the emissions from this category were 
removed from the 1990 base year emission inventory. The calculation of 
required emission reductions was based solely on VOC emission 
reductions and includes emissions from outside the Milwaukee-Racine 
ozone nonattainment area boundary but within 100 kilometers of the 
boundary for certain source categories.

                     Required VOC Reduction by 1999
------------------------------------------------------------------------
                                                                EPA's
                                               Wisconsin's    adjusted
  Calculation of the VOC Reduction Needs by   calculations  calculations
                    1999                      tons of VOC/  tons of VOC/
                                                   day           day
------------------------------------------------------------------------
1990 Milwaukee-Racine Area Total VOC                 461.5        458.36
 Emissions..................................
1990 ROP VOC Emissions (Anthropogenic only).         392.6        389.38
1990-99 Noncreditable Reductions............         69.81         69.81
1990 Adjusted Base Year Emissions (1990 ROP         322.79        319.57
 Emissions minus Noncreditable Reductions)..
9 percent of Adjusted Base Year Emissions...         29.05         28.76
1999 Fleet Turnover Correction Factor.......           5.3           5.3
1996 Target Level...........................        278.87        276.13
1999 Target Level (1996 Target Level minus 9        240.02        237.57
 percent Reductions minus Fleet Turnover
 Correction Factor).........................
1999 Projected VOC Emissions (1990 VOC              405.74         402.5
 Emissions Grown to 1999 plus Noncreditable
 Emission Reductions).......................
Required Reductions by 1999 to Meet the 9           165.72        164.93
 Percent ROP Requirement Net-of-Growth (1999
 Projected Emissions minus 1999 Target
 Level).....................................
------------------------------------------------------------------------

    Using our post-1996 policy, the needed emissions reductions are 
calculated by taking the following steps:
    (1) Establish the emission baselines for VOC;
    (2) Calculate the emission target level to meet the overall 9 
percent reduction by 1999;
    (3) Estimate the projected emission growth that would occur if no 9 
percent emission reduction takes place;
    (4) Subtract the projected emission level from the emission target 
to determine the VOC emission reduction needed, net of growth.
    Wisconsin's calculation methods are discussed below.
1. Emission Baselines
    The Act requires that the baseline emissions represent 1990 
anthropogenic emissions on a peak ozone season weekday basis. Peak 
ozone season weekday emissions represent the average VOC daily 
emissions that occur on weekdays during the peak 3-month ozone period 
of June through August.
    Wisconsin used the Milwaukee-Racine area's 1990 base year emission 
inventory for the VOC baseline. We approved the Milwaukee-Racine area 
1990 inventory as a SIP revision on June 15, 1994 (59 FR 30702). In 
addition, Wisconsin included the 1990 VOC emissions from certain source 
categories outside the nonattainment area boundary but within 100 
kilometers of the boundary, namely for the Traffic Markings, Autobody 
Refinishing, Degreasing and Organic Solvents categories. The 1990 
emissions for the sources in the 100 kilometer area were extracted from 
a statewide emission inventory. These emissions were also used in the 
domain-wide modeling for the 1-hour attainment demonstration modeling 
performed by the Lake Michigan Air Director's Consortium and submitted 
separately as a SIP revision in December 2000. It should be noted, 
however, that because we determined that the emission reductions 
claimed by Wisconsin for the traffic markings category for the 100 
kilometer area were not approvable, we excluded these emissions from 
the 1990 baseline inventory. These emissions amounted to 3.17 tpd. We 
then recalculated the post-1996 ROP plan requirement, including the 
1999 target level, 1999 projections and required emission reductions as 
illustrated in the table above.
    The Act requires that the ROP baseline be ``adjusted'' to exclude 
emissions eliminated by the Federal Motor Vehicle Control Program 
(FMVCP), Federal Reid Vapor Pressure (RVP) regulations promulgated 
before November 15, 1990, state regulations required to correct 
deficiencies in existing VOC RACT regulations, and state regulations 
required to correct deficiencies in existing I/M programs. Because 
these regulations were promulgated or required before the 1990 
amendments to the Act, the Act prohibits states from claiming ROP 
reductions from these regulations. To achieve an accurate ROP target, 
the state must subtract these noncreditable reductions from the 
baseline to reflect the impact of these reductions on 1999 emissions. 
The resulting inventory is called the ``adjusted base year inventory.''
    Wisconsin determined the emission reductions associated with the 
noncreditable FMVCP and RVP programs by using the MOBILE emission 
factors program.
    Wisconsin determined that its VOC RACT rule corrections were 
technical in nature and, therefore, did not require any adjustments to 
the 1990 emission inventory. Wisconsin was not required to implement an 
I/M program before the 1990 amendments, and thus did not make 
adjustments to the 1990 emission inventory for I/M corrections, either.
2. 1999 Emission Target Level to Meet ROP Emission Reduction 
Requirement
    After the adjusted base year emission inventory is established, the 
next step is to calculate the VOC emission target level for 1999. Our 
post-1996 policy provides the method for calculating target levels. To 
calculate the VOC target, the previous milestone target must first be 
identified; in this case it is the 1996 target level. From the 1996 
target level, subtract, (1) the percent reduction required to meet the 
ROP requirement, and (2) the fleet turnover correction factor.

[[Page 33499]]

    For the Milwaukee-Racine area's post-1996 ROP plan, it would not be 
appropriate to use the 1996 target level from the 15 percent plan 
because the 15 percent plan covered a different geographic area than 
the post-1996 ROP plan. Thus, the 1996 target level must be 
recalculated by reducing the 1990 adjusted ROP base year inventory for 
1996 for this geographic area by 15 percent.
    The fleet turnover correction factor represents the emission 
reduction that has occurred under the pre-1990 Act FMVCP and RVP 
regulations between consecutive milestone years, for the post-1996 
plan, from 1996 to 1999. Since the 1996 target level and the 9 percent 
ROP reduction do not factor in these reductions, the fleet turnover 
correction factor is necessary to accurately calculate the emission 
level that must be achieved by 1999.
    Performing the 1999 target level calculations consistent with this 
methodology results in a 1999 target level of 242.07 tpd. However, 
Wisconsin used a different methodology to calculate the 1999 target 
level. Wisconsin calculated the 1999 target level by subtracting the 
fleet turnover correction factor from 76% (100%-15%-9%) of the 1990 
adjusted ROP base year inventory for 1999. Wisconsin's methodology 
yields a 1999 target level of 237.57 tpd.
    Wisconsin's calculation methodology is not consistent with the Act 
or our policy. However, we will accept the 1999 target level value 
resulting from application of Wisconsin's methodology, 237.57 tpd, 
because it is a value that is less than, and thus, more stringent, than 
what would otherwise be allowed based on the Act and our policy.
3. 1999 Projected Growth Level
    To account for source emission growth between 1990 and 1999, the 
state must develop projected emission inventories for VOC. The 
projected emission inventories represent the expected emissions in 1999 
if no post-1996 ROP control measures had been implemented.
    Wisconsin established the projected emission inventories for point, 
area, and nonroad source categories by taking the 1990 emission 
inventories and applying either EPA growth factors, or state-derived 
growth factors. Projected vehicle emissions were established using the 
MOBILE model. Our TSD for this proposed rulemaking contains more 
details about the growth factors used in Wisconsin's post-1996 plan. 
You may obtain a copy of the TSD by contacting the Region 5 office as 
indicated above.
    The projected VOC emissions for 1999 are 402.5 tpd for point, area, 
on-road mobile, and non-road mobile.
4. Emission Reduction Needed for ROP Reduction Net-Of-Growth
    Based on the emissions inventory and calculations, a 164.93 TPD VOC 
emission reduction is needed for the Milwaukee-Racine ozone 
nonattainment area to meet the 9 percent requirement.

V. Wisconsin's Post-1996 ROP Plan Control Strategies

A. What are the Criteria for Acceptable Control Strategies?

    Under section 182(b)(1)(C) of the Act, emission reductions claimed 
for ROP must be creditable to the extent that the reductions have 
actually occurred before the applicable ROP milestone date, in this 
case November 15, 1999.
    To meet this requirement, our policy provides that all credited 
emission reductions must be real, permanent, and enforceable. In 
addition, the plan's control measures must be adopted and implemented 
before November 15, 1999.
    The post-1996 plan must also adequately document the methods used 
to calculate the emission reduction for each control measure. Our 
policy as described in the General Preamble to the Act (April 16, 1992, 
57 FR 13567) provides that, at a minimum, the methods should meet the 
following four principles: (1) Emission reductions from control 
measures must be quantifiable; (2) control measures must be 
enforceable; (3) interpretation of the control measures must be 
replicable; and, (4) control measures must be accountable.
    Section 182(b)(1)(D) of the Act prescribes limits on what control 
measures states can include in ROP plans. All permanent and enforceable 
control measures occurring after 1990 are creditable with the following 
exceptions: (1) FMVCP requirements promulgated by January 1, 1990; (2) 
RVP regulations promulgated by November 15, 1990; (3) Reasonably 
Available Control Technology (RACT) ``Fix-Up'' regulations required 
under section 182(a)(2)(A) of the Act; and (4) Inspection and 
Maintenance (I/M) program ``Fix-Ups'' as required under section 
182(a)(2)(B) of the Act.

B. What are the Control Measures in the Wisconsin Post-1996 ROP 
Plan?

1. Point/Area Sources
    a. Wood Furniture Coating.
    Wisconsin's rule (NR 422.125) limits the VOC emissions from wood 
furniture finishing operations in the Milwaukee-Racine area as well as 
Sheboygan, Manitowoc and Kewaunee Counties. The rule was effective on 
September 1, 1995 with a compliance date of September 1, 1996. The rule 
will achieve a control efficiency of 20% and 0.26 tpd in emission 
reductions through 1999.
    b. Yeast Manufacturing.
    Wisconsin's rule (NR 424.05) limits the VOC emissions from yeast 
manufacturing operations in the Milwaukee-Racine area. The rule was 
effective on July 1, 1994 with compliance dates of May 31 and November 
30, 1995. The rule will achieve a control efficiency of 47% and 0.36 
tpd in emission reductions through 1999.
    c. Screen Printing.
    Wisconsin's rule (NR 422.145) limits VOC emission from screen 
printing units at screen printing facilities. The rule was effective on 
July 1, 1994 with compliance dates of July 1, 1994 and May 31, 1995. 
The rule will achieve a control efficiency of 4.5% and 0.5 tpd in 
emission reductions through 1999.
    d. Gray Iron and Steel Foundries.
    Wisconsin's rule (NR 419.08) limits VOC emissions at facilities 
that manufacture cores or molds for use at iron and steel foundries. 
The rule was effective on July 1, 1994 with a compliance date of May 
31, 1995. The rule will achieve a control efficiency of 7% and 0.07 tpd 
in emission reductions through 1999.
    e. Industrial Adhesives.
    Wisconsin's rule (NR 422.127) limits VOC emissions from processes 
using adhesives or adhesive primers on wood furniture, office 
partitions, or wood entry/passage doors. The rule was effective on 
September 1, 1995 with a compliance date of June 30, 1996. The rule 
will achieve a control efficiency of 4.5% and 0.02 tpd in emission 
reductions through 1999.
    f. Lithographic Printing.
    Wisconsin's rule (NR 422.142) limits VOC emissions from 
lithographic printing presses. The rule was effective on July 1, 1995 
with a compliance date of July 1, 1996. The rule will achieve a control 
efficiency of 11.2% in the graphic arts category and 8.8% for the 
printing and publishing category with a total of 0.64 tpd in emission 
reductions through 1999. In addition, Wisconsin included 4.7 tpd of VOC 
reductions achieved at a Quad Graphics facility in Dodge County whose 
emissions in 1990 were 6.7 tpd. Permitted changes to the facility's 
rotogravure presses in 1994 achieved a 4.7 tpd emission reduction. 
Thus, the total emission reduction for this category is 5.34 tpd.
    g. Degreasing.

[[Page 33500]]

    Wisconsin's rule (NR 423.03) further limits VOC emissions from the 
four main types of degreasing equipment used in Wisconsin, namely, cold 
cleaners, open top vapor degreasers (OTVD), conveyorized vapor 
degreasers and conveyorized non-vapor degreasers. The revised rule was 
effective on September 1, 1994 with a compliance date of May 15, 1995. 
The rule will achieve a control efficiency of 30% in the degreasing 
category and 2.7 tpd in emission reductions through 1999. However, 
Wisconsin also includes emission reductions from the organic solvents 
category due to the Federal Consumer and Commercial Products rule. 
Wisconsin assumes a 25% control efficiency and 1.12 tpd of emission 
reductions for a total of 3.82 tpd of reductions for the degreasing 
category. However, our current policy only allows a 20% control 
efficiency assumption for that category based on the national rule for 
consumer products. Consequently, Wisconsin's emission reduction credit 
of 1.12 tpd is not approvable. We will, however, approve a 20% emission 
reduction yielding a 0.9 tpd reduction. In total, the emission 
reductions approvable for the degreasing category is 3.6 tpd.
    h. Federal Architectural and Industrial Maintenance (AIM) Coating 
(Industrial).
    This federal rule applies to commercial coatings which are applied 
in the field by industry, contractors, businesses, and homeowners. VOC 
emissions are limited by product reformulation to lower VOC content, 
product substitution and consumer education in using techniques for 
application, storage and disposal.
    Wisconsin's December 1997 submittal estimated that the anticipated 
federal rule for architectural coatings would provide for a 20% control 
from 1990-1996 and a 25% control from 1996 to 1999. The state's 
supplemental submittal, however, now estimates a 20% control through 
1999. This is consistent with our policy memorandum which allows a 20% 
control assumption. The emission reductions from this category from 
industrial sources is estimated at 1.1 tpd.
    i. Federal AIM Coating.
    Again, this federal rule applies to commercial coatings which are 
applied in the field by industry, contractors, businesses, and 
homeowners. VOC emissions are limited by product reformulation to lower 
VOC content, product substitution and consumer education in using 
techniques for application, storage and disposal.
    The state's December 1997 submittal estimated that the anticipated 
federal rule for architectural coatings would provide for a 20% control 
from 1990-1996 and a 25% control from 1996 to 1999. The state's 
supplemental submittal, however, now estimates a 20% control through 
1999. This is consistent with our policy memorandum which allows a 20% 
control assumption. The emission reductions from this category are 2.91 
tpd for sources other than industrial which are accounted for above.
    j. Autobody Refinishing.
    Our policy allows a 37% emission reduction from this category. The 
state's December 1997 post-1996 ROP plan submittal assumed a 30% 
emission reduction based on a state-adopted rule, NR 422.095, which was 
effective on September 1, 1995 and a compliance date of September 1, 
1995. Wisconsin's rule limits VOC emissions from motor vehicle 
refinishing operations. However, the state's supplemental submittal 
applies a control efficiency of 67.4% to emissions from within the 
nonattainment area based on the state's analysis of the rule's control 
efficiency for a resulting emissions reduction of 6.64 tpd. 
Furthermore, a control efficiency of 37% was applied to emissions for 
this category within the 100 kilometer area as allowed by our policy 
for an emission reduction of 2.91 tpd. The total emissions reduction 
from this category are 9.55 tpd.
    k. Stage 2 Vapor Recovery.
    Wisconsin's rule (NR 420.045) limits VOC emissions from gasoline 
dispensing facilities during vehicle refueling. The rule was effective 
on February 1, 1993 with a full compliance date of March 31, 1995. The 
emission reduction for this category is 6.61 tpd.
    l. Traffic Markings.
    Wisconsin's rule (NR 422.17) limits the VOC emissions of traffic 
markings on any paved surface during the ozone season in the ozone 
nonattainment area. The rule was effective on August 1, 1994 with a 
compliance date of April 30, 1996. The rule will achieve a control 
efficiency of 75.9% and 3.11 tpd in emissions reduction through 1999 in 
the ozone nonattainment area. Wisconsin also applied the same control 
efficiency to VOC emissions from traffic marking coating used within in 
the 100 km area resulting in an additional 2.46 tpd of emission 
reductions. Wisconsin provided documentation that the Wisconsin 
Department of Transportation was employing NR 422.17 compliant traffic 
markings in counties within the 100 kilometers. The Act requires that 
creditable emission reductions be permanent and enforceable. Since NR 
422.17 does not cover the counties within the 100 kilometers, the 
emission reductions resulting from that rule as applied to emissions in 
the 100 kilometer area cannot be approved into the SIP. We acknowledge 
that emissions reductions have likely occurred as a result of the 
state's decision to employ compliant traffic marking coatings outside 
the nonattainment area. However, these emission reductions are not 
creditable towards the post-1996 ROP plan.
    Consequently, the total creditable emission reduction from this 
category is 3.11 tpd.
    m. Underground Gasoline Tank Vent Valves.
    The state rule (NR 420.035) requires gasoline dispensing facilities 
with gasoline storage tanks with a capacity of 2000 gallons or more all 
ensure that each pressure vacuum valve installed on a storage tank vent 
pipe is certified by the California air resources board and is 
maintained in good working order. The rule was effective on August 1, 
1994 with a compliance date of March 31, 1995. The rule will achieve 
0.67 tpd in emissions reduction through 1999 as determined by the 
MOBILE5a model.
    n. Federal Commercial and Consumer Solvents.
    We promulgated this federal rule on September 11, 1998, which has a 
compliance date of December 10, 1998.
    Our policy allows for a 20% emission reduction assumption for this 
category, which results in a 3.06 tpd emission reduction in Wisconsin's 
post-1996 ROP plan.
    o. Reformulated Gasoline-Area Petroleum Sources.
    Reformulated gasoline is discussed below. These emissions 
reductions come from using reformulated gasoline at area sources, 
namely, underground tank breathing, automobile refueling, Stage I and 
Gasoline Truck Transport activities. The emission reduction estimates 
for this category is 2.73 tpd.
2. Mobile Sources.
    a. Federal Tier I Vehicle Tailpipe Standards.
    Section 202 of the Act sets new Tier 1 emission standards for motor 
vehicles. We have promulgated standards for 1994 and later model year 
light-duty cars and light-duty trucks (56 FR 25724, June 5, 1991). For 
passenger cars and light-duty vehicle trucks weighing up to 6,000 
pounds, the implementation of the standards was to be phased in over 
three years: 40 percent of the manufactured vehicles for model year 
1994, 80 percent of the manufactured vehicles in model year 1995, and 
100 percent of the manufactured vehicles in

[[Page 33501]]

model years 1996 and later. For gasoline and diesel powered light-duty 
trucks weighing more than 6,000 pounds, the Tier 1 standards were to be 
met in 50 percent of the manufactured vehicles in model year 1996 and 
in 100 percent of the manufactured vehicles thereafter.
    Wisconsin used the MOBILE5a emission factor model to calculate the 
VOC emission reductions for this control measures. Wisconsin's emission 
reduction estimates are adequately documented and acceptable for credit 
towards the post-1996 ROP plan. A total of 5.17 tpd of emission 
reductions will be achieved from the program through 1999.
    b. Reformulated Gasoline.
    The Act requires EPA to adopt and enforce a reformulated gasoline 
program for severe and worse ozone areas by the 1995 ozone season. The 
RFG regulations will further reduce gasoline volatility.
    Wisconsin used the MOBILE5a emission factor model to calculate the 
VOC emission reductions for this control measure. Wisconsin's emission 
reduction estimates are adequately documented and acceptable for credit 
towards the post-1996 ROP plan. A total of 14.77 tpd of emission 
reductions will be achieved from the program through 1999.
    c. Enhanced Motor Vehicle Inspection/Maintenance Program.
    The Enhanced I/M program began operation in the Milwaukee-Racine 
area in December 1995. The program is a biennial testing program which 
requires two years of testing to complete one test cycle. The program 
achieved its full emissions reduction potential upon completion of a 
cycle in December 1997.
    Wisconsin used the MOBILE5a emission factor model to calculate the 
VOC emission reductions for this control measure. Wisconsin's emission 
reduction estimates are adequately documented and acceptable for credit 
towards the post-1996 ROP plan. Wisconsin's initial emission reduction 
claim of 24.09 tpd was adjusted to account for the pressure test 
correction amounting to 4.01 tpd. Thus, a total of 20.08 tpd of 
emission reductions will be achieved from the program though 1999.
    d. Federal Gasoline Detergent Additive.
    Beginning January 1, 1995, federal regulations required that 
gasoline sold nationwide contain additives to prevent accumulation of 
deposits in engines and fuel systems. Preventing such deposits 
maintains the efficiency of engine systems and reduces VOC emissions.
    The state used our guidance to determine that the use of gasoline 
containing the required additives will reduce vehicle VOC emissions by 
0.52 tpd.
    e. Federal On-Board Vapor Recovery Canisters.
    In 1994, we published regulations that require vehicles to capture 
vehicle refueling emissions. These regulations require that 40 percent 
of 1998 passenger cars meet Onboard Refueling Vapor Recovery (ORVR or 
OVR) emission standards. Eighty percent of 1999 model year cars and 100 
percent of 2000 and later model year cars must meet ORVR requirements.
    Emissions reduction from this category are 1.41 tpd.
    f. Reformulated Gasoline--Off-Road Source.
    Reformulated gasoline is discussed above. The emission reduction 
estimates resulting from reformulated gasoline use in off road mobile 
sources is 1.4 tpd.
    g. Federal Off-Road Engine Standards.
    Federal standards for non-road engines were promulgated on July 3, 
1995 (60 FR 34582). States may take credit for this measures in their 
ROP plans pursuant to our policy memoranda, ``Guidance on Projection of 
Nonroad Inventories to Future Years,'' dated February 4, 1994, and 
``Future Nonroad Emission Reduction Credits for Court-Ordered Nonroad 
Standards,'' dated November 28, 1994. Based on these policies, 
Wisconsin concluded that the emission reductions that would occur by 
1999 were 5.58 tpd.

C. What are the Federal Register Citations for the Federal Approval or 
Promulgation of the Control Measures?

 Federal Approval or Promulgation of Control Measures in the Milwaukee-
               Racine Area 9 Percent Rate-of-Progress Plan
------------------------------------------------------------------------
                                         Date of EPA SIP approval or
          Control measure                        promulgation
------------------------------------------------------------------------
Wood Furniture Coating.............  April 4, 1996 (61 FR 14972).
Yeast Manufacturing................  June 30,1995 (60 FR 34170).
Screen Printing....................  July 28, 1995 (60 FR 38722),
                                      Technical Correction on February
                                      12, 1996 (61 FR 5307).
Gray Iron and Steel Foundries......  February 13, 1996 (61 FR 5514).
Industrial Adhesives...............  April 25, 1996 (61 FR 18257).
Lithographic Printing..............  April 9, 1996 (61 FR 15706).
Degreasing.........................  April 29, 1996 (61 FR 18681).
Federal Tier 1 Vehicle Tailpipe      Federal Regulation, 40 CFR 86, June
 Standards.                           5, 1991 (56 FR 25724).
Reformulated Gasoline..............  Federal Regulation, 40 CFR 80,
                                      Subpart D, February 16, 1994 (59
                                      FR 7716).
Motor Vehicle Inspection and         Conditional Approval on January 12,
 Maintenance.                         1995 (60 FR 2881). Revision
                                      submitted on December 30, 1998.
                                      EPA must finally approve prior to
                                      full and final approval of this
                                      post-1996 ROP plan.
Federal Gasoline Detergent           Federal Regulation, 40 CFR 80,
 Additives.                           Subpart G, November 1, 1994 (59 FR
                                      54706).
Federal Architectural and            Federal Regulation, 40 CFR Part 59
 Industrial Maintenance Coating.      Subpart D, and September 11, 1998
                                      (63 FR 48848). Also see ``Credit
                                      for the 15 Percent Rate-of-
                                      Progress Plans for Reductions from
                                      the Maintenance Architectural and
                                      Industrial Maintenance Coatings
                                      Rule,'' 3/22/95, and ``Update on
                                      the Credit for the 15% Rate-of-
                                      progress Plans for Reductions from
                                      Architectural and Industrial
                                      Maintenance Coatings Rule,'' 3/7/
                                      96.
Autobody Refinishing...............  February 12, 1996 (61 FR 5306).
Stage 2 Vapor Recovery.............  August 13, 1993 (58 FR 43082).
Federal On-Board Vapor Recovery      Federal Regulation, 40 CFR 86, 88
 Canisters.                           and 600, April 16, 1994 (59 R
                                      16262).
Traffic Marking....................  April 29, 1996 (61 FR 18681).
Underground Gas Tank Vent Valves...  April 29, 1996 (61 FR 18681).

[[Page 33502]]

 
Federal Commercial and Consumer      Federal Regulation, 40 CFR Part 59
 Solvents.                            Subpart C, September 11, 1998 (63
                                      FR 48791). Also see ``Regulatory
                                      Schedule for Consumer and
                                      Commercial Products under Section
                                      183(e) of the Clean Air Act,'' 6/
                                      22/95.
Reformulated Gasoline (area source   Federal Regulation, 40 CFR 80,
 petroleum activities).               Subpart D, February 16, 1994 (59
                                      FR 7716).
Reformulated Gasoline (off-road)...  Federal Regulation 40 CFR 80,
                                      Subpart D, February 16, 1994 (59
                                      FR 7716).
Federal Off-Road Engine Standards..  Federal Regulation, 40 CFR 90, July
                                      3, 1995 (60 FR 34582).
------------------------------------------------------------------------

D. How did Wisconsin Calculate the Emission Reductions for the Control 
Strategies?

    We have issued several policy documents, listed in the TSD for this 
proposed rulemaking, which provide assumptions for states to use in 
quantifying emission reductions. We have also developed the MOBILE 
model for the states to calculate emission reductions from mobile 
sources.
    Wisconsin appropriately used our policy documents and MOBILE model 
for calculating emission reductions. Wisconsin obtained the necessary 
data for quantifying the source baselines and emission reductions from 
its 1990 emission inventory, permit information, and emissions 
reporting data from affected industries. Where Wisconsin had to develop 
its own assumptions regarding emission reductions, the assumptions were 
adequately justified based on existing data.
    The Wisconsin post-1996 ROP plan does not contain any new state 
rules, it merely accounts for the emission reductions achieved from 
existing creditable state and federal measures occurring from 1990-
1999. Many of the point, area, on-road and off-road source measures for 
which Wisconsin is claiming post-1996 ROP credit were part of the 15 
percent ROP plan, including Tier 1, reformulated gasoline for on-road 
and off-road mobile and area sources, off-road small engine standards, 
federal detergent additive, wood furniture coating, yeast 
manufacturing, screen printing controls, gray iron and steel foundries, 
industrial adhesives, lithographic printing, degreasing, AIM, autobody 
refinishing, Stage II, traffic markings, gas station tank breathing, 
and consumer and commercial products.

E. What Amount of Emission Reduction Does Each Control Strategy 
Achieve?

    The following table summarizes the state's VOC reduction claims for 
the post-1996 ROP control measures, and the amount of reductions we 
find approvable.
    There are two categories for which emission reductions claimed by 
the state are determined not to be approvable. First, the state claims 
a 25% control efficiency for the organic solvents category based on the 
Federal Consumer and Commercial Products rule. However, our more 
current policy only allows a 20% control efficiency assumption for that 
category based on the national rule for consumer products. Thus, 
Wisconsin's emission reduction credit of 1.12 tpd is not approvable. 
However, a 20% reduction yielding a 0.9 tpd reduction is approvable. 
Secondly, Wisconsin claims 75.9% control efficiency for the traffic 
markings category based on the state's rule (NR 422.17) for emissions 
within the ozone nonattainment area boundary and the 100 kilometer 
area. However, Wisconsin's rule 422.17 is not applicable and 
enforceable in the 100 kilometer area. Thus, Wisconsin's emission 
reduction credit of 5.57 tpd is not approvable, although emission 
reductions for this category within the nonattainment area boundary of 
3.11 tpd are approvable.

------------------------------------------------------------------------
                                                    VOC          VOC
                                                 Reduction    Reduction
                Control measure                    State        Credit
                                                  Claimed     Approvable
                                                  Tons/Day     Tons/Day
------------------------------------------------------------------------
Mobile source measures:
    Federal Tier 1 Vehicle Tailpipe Standards.         5.17         5.17
    Reformulated Gasoline.....................        14.77        14.77
    Motor Vehicle Inspection and Maintenance..        20.08        20.08
    Federal Gasoline Detergent Additive.......         0.52         0.52
    Reformulated Gasoline (off-road)..........          1.4          1.4
    Federal Off-Road Engine Standards.........         5.58         5.58
      Subtotal................................        47.52        47.52
Industrial source measures:
    Yeast Manufacturing.......................         0.36         0.36
    Screen Printing...........................          0.5          0.5
    Gray Iron and Steel Foundries.............         0.07         0.07
    Industrial Adhesives......................         0.02         0.02
    Lithographic Printing.....................         5.34         5.34
      Subtotal................................         6.29         6.29
Area source measures:
    Wood Furniture Coating....................         0.26         0.26
    Degreasing................................         3.82          3.6
    Federal AIM Coating (Industrial)..........          1.1          1.1
    Federal AIM Coating.......................         2.91         2.91
    Autobody Refinishing......................         9.55         9.55

[[Page 33503]]

 
    Stage 2 Vapor Recovery....................         6.61         6.61
    Federal On-Board Vapor Recovery Canisters.         1.41         1.41
    Traffic Marking...........................         5.57         3.11
    Underground Gas Tank Vent Valves..........         0.67         0.67
    Federal Commercial and Consumer Solvents..         3.06         3.06
    Reformulated Gasoline (area petroleum              2.73         2.73
     activities)..............................
      Subtotal................................        36.72        35.01
        Total FMVCP non-creditable emissions           81.6         81.6
         reductions grown to 1999.............
        Total RVP non-creditable emissions              1.5          1.5
         reductions grown to 1999.............
        Total 1999 VOC reductions.............       173.63       171.92
------------------------------------------------------------------------

VI. EPA Review of Wisconsin's Post-1996 ROP Plan

A. Why is the Wisconsin post-1996 ROP Plan Approvable?

    We reviewed the documentation submitted with the Wisconsin post-
1996 ROP plan. From this review, we find that the plan is approvable.
    Wisconsin provided sufficient justification that the nonattainment 
area VOC emission reductions in conjunction with the VOC emission 
reductions from certain sources outside the ozone nonattainment area 
boundary but within 100 kilometers of that boundary will reduce ozone 
precursor emissions and, therefore, ozone concentrations in the 
Milwaukee-Racine ozone nonattainment area. Although Wisconsin did not 
calculate the emissions reduction needed to meet the 9 percent ROP 
reduction requirement consistent with our guidance, we will accept 
Wisconsin's reduction requirement because it is more stringent than 
what would otherwise be allowable under our guidance.
    The post-1996 plan's control measures are creditable because the 
emissions reductions achieved are real, permanent, and enforceable. All 
claimed emission reductions from the plan's control measures occurred 
by November 15, 1999, the Act's deadline by which creditable reductions 
are to occur.
    The state's emission reduction estimates for the control strategies 
follow our guidance documents, where applicable, and are adequately 
documented with acceptable emission control assumptions.
    Finally, the post-1996 ROP plan shows that it will achieve a 
reduction of ozone precursor emissions sufficient to achieve the 
required ROP toward attaining the 1-hour ozone NAAQS in the Milwaukee-
Racine ozone nonattainment area.

         Comparison of Needed and Creditable Emission Reductions
------------------------------------------------------------------------
                                                                    TPD
------------------------------------------------------------------------
 VOC Reduction Needed to Meet 9 percent ROP....................   164.93
 Total Creditable VOC Reduction................................   171.92
------------------------------------------------------------------------

    For these reasons, we are proposing approval of Wisconsin's 
Milwaukee-Racine area post-1996 ROP plan, as meeting the requirements 
of section 182(c)(2)(B).

VII. What Action Are We Proposing Today?

    In this rulemaking action, we are proposing to approve Wisconsin's 
SIP revision, submitted on December 11, 1997, and subsequent 
supplemental information submitted on August 5, 1999, January 31, 2000, 
March 3, 2000, and February 2001, establishing a post-1996 ROP plan for 
the Milwaukee-Racine ozone nonattainment area. It should be noted that 
final approval of Wisconsin's post-1996 ROP plan is contingent on final 
approval of the motor vehicle I/M SIP revisions.

VIII. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order 12866, entitled ``Regulatory 
Planning and Review.''

B. Executive Order 13045

    Protection of Children from Environmental Health Risks and Safety 
Risks (62 FR 19885, April 23, 1997), applies to any rule that: (1) is 
determined to be ``economically significant'' as defined under 
Executive Order 12866, and (2) concerns an environmental health or 
safety risk that we have reason to believe may have a disproportionate 
effect on children. If the regulatory action meets both criteria, the 
Agency must evaluate the environmental health or safety effects of the 
planned rule on children, and explain why the planned regulation is 
preferable to other potentially effective and reasonably feasible 
alternatives considered by the Agency.
    This proposed rule is not subject to Executive Order 13045 because 
it does not involve decisions intended to mitigate environmental health 
or safety risks.

C. Executive Order 13084

    Under Executive Order 13084, EPA may not issue a regulation that is 
not required by statute, that significantly affects or uniquely affects 
the communities of Indian tribal governments, and that imposes 
substantial direct compliance costs on those communities, unless the 
federal government provides the funds necessary to pay the direct 
compliance costs incurred by the tribal governments, or EPA consults 
with those governments. If EPA complies by consulting, Executive Order 
13084 requires EPA to provide to the Office of Management and Budget, 
in a separately identified section of the preamble to the rule, a 
description of the extent of EPA's prior consultation with 
representatives of affected tribal governments, a summary of the nature 
of their concerns, and a statement supporting the need to issue the 
regulation. In addition, Executive Order 13084 requires EPA to develop 
an effective process permitting elected officials and other 
representatives of Indian tribal governments ``to provide meaningful 
and timely input in the development of regulatory policies on matters 
that significantly or uniquely affect their communities.''
    Today's proposed rule does not significantly or uniquely affect the 
communities of Indian tribal governments. This action does not involve 
or impose any requirements that affect Indian Tribes. Accordingly, the 
requirements of section 3(b) of

[[Page 33504]]

Executive Order 13084 do not apply to this proposed rule.

D. Executive Order 13132

    Federalism (64 FR 43255, August 10, 1999) revokes and replaces 
Executive Orders 12612 (Federalism) and 12875 (Enhancing the 
Intergovernmental Partnership). Executive Order 13132 requires EPA to 
develop an accountable process to ensure ``meaningful and timely input 
by state and local officials in the development of regulatory policies 
that have federalism implications.'' ``Policies that have federalism 
implications'' is defined in the Executive Order to include regulations 
that have ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.'' Under Executive Order 13132, EPA may not issue a 
regulation that has federalism implications, that imposes substantial 
direct compliance costs, and that is not required by statute, unless 
the federal government provides the funds necessary to pay the direct 
compliance costs incurred by state and local governments, or EPA 
consults with state and local officials early in the process of 
developing the proposed regulation. EPA also may not issue a regulation 
that has federalism implications and that preempts state law unless the 
Agency consults with state and local officials early in the process of 
developing the proposed regulation.
    This proposed rule will not have substantial direct effects on the 
states, on the relationship between the national government and the 
states, or on the distribution of power and responsibilities among the 
various levels of government, as specified in Executive Order 13132, 
because it merely approves a state rule implementing a federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the Act. Thus, the 
requirements of section 6 of the Executive Order do not apply to this 
proposed rule.

E. Regulatory Flexibility

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to conduct a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements unless the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities. Small entities include small 
businesses, small not-for-profit enterprises, and small governmental 
jurisdictions.
    This proposed rule will not have a significant impact on a 
substantial number of small entities because 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 create 
any new requirements, I certify that this action will not have a 
significant economic impact on a substantial number of small entities. 
Moreover, due to the nature of the federal-state relationship under the 
Act, preparation of flexibility analysis would constitute federal 
inquiry into the economic reasonableness of state action. The Act 
forbids EPA to base its actions concerning SIPs on such grounds. Union 
Electric Co., v. U.S. EPA, 427 U.S. 246, 255-66 (1976).

F. Unfunded Mandates

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

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Ozone, Volatile Organic Compounds.

    Dated: June 13, 2001.
David Ullrich,
Acting Regional Administrator, Region 5.
[FR Doc. 01-15619 Filed 6-21-01; 8:45 am]
BILLING CODE 6560-50-P


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