Document ID: EPA-R03-OAR-2006-0840-0001
Agency: epa
Document Type: Proposed Rule
Title: Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; Redesignation of the Lancaster 8-Hour Ozone Nonattainment Area to Attainment and Approval of the Associated Maintenance Plan and 2002 Base-Year Inventory
Posted Date: 2007-05-15T04:00Z

[Federal Register: May 15, 2007 (Volume 72, Number 93)]
[Proposed Rules]               
[Page 27265-27276]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15my07-13]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52 and 81

[EPA-R03-OAR-2006-0840; FRL-8314-2]

 
Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Redesignation of the Lancaster 8-Hour Ozone Nonattainment 
Area to Attainment and Approval of the Associated Maintenance Plan and 
2002 Base-Year Inventory

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a redesignation request and State 
Implementation Plan (SIP) revisions submitted by the Commonwealth of 
Pennsylvania. The Pennsylvania Department of Environmental Protection 
(PADEP) is requesting that the Lancaster ozone nonattainment area 
(``Lancaster Area'' or ``Area'') be redesignated as attainment for the 
8-hour ozone national ambient air quality standard (NAAQS). The Area is 
comprised of Lancaster County, Pennsylvania. EPA is proposing to 
approve the ozone redesignation request for the Lancaster Area. In 
conjunction with its redesignation request, the Commonwealth submitted 
a SIP revision consisting of a maintenance plan for the Lancaster Area 
that provides for continued attainment of the 8-hour ozone NAAQS for 11 
years after redesignation. EPA is proposing to make a determination 
that the Lancaster Area has attained the 8-hour ozone NAAQS, based upon 
three years of complete, quality-assured ambient air quality monitoring 
data for 2003-2005. EPA's proposed approval of the 8-hour ozone 
redesignation request is based on its determination that the Lancaster 
Area has met the criteria for redesignation to attainment specified in 
the Clean Air Act (CAA). In addition, the Commonwealth of Pennsylvania 
has also submitted a 2002 base-year inventory for the Lancaster Area, 
and EPA is proposing to approve that inventory for the Lancaster Area 
as a SIP revision. EPA is also providing information on the status of 
its adequacy determination for the motor vehicle emission budgets 
(MVEBs) that are identified in the maintenance plan for the Lancaster 
Area for purposes of transportation conformity, and is also proposing 
to approve those MVEBs. EPA is proposing approval of the redesignation 
request and of the maintenance plan and 2002 base-year inventory SIP 
revisions in accordance with the requirements of the CAA.

DATES: Written comments must be received on or before June 14, 2007.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2006-0840 by one of the following methods:
    A. http://www.regulations.gov. Follow the on-line instructions for 

submitting comments.
    B. E-mail: miller.linda@epa.gov.
    C. Mail: EPA-R03-OAR-2006-0840, Linda Miller, Acting Chief, Air 
Quality Planning Branch, Mailcode 3AP21, U.S. Environmental Protection 
Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.
    D. Hand Delivery: At the previously-listed EPA Region III address. 
Such deliveries are only accepted during the Docket's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2006-0840. EPA's policy is that all comments received will be included 
in the public docket without change, and may be made available online 
at http://www.regulations.gov, including any personal information 

provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov 

or e-mail. The http://www.regulations.gov Web site is an ``anonymous access'' 

system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through 
http://www.regulations.gov, your e-mail address will be automatically captured 

and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, any form of encryption, and be free of any defects or 
viruses.
    Docket: All documents in the electronic docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 

information is

[[Page 27266]]

not publicly available, i.e., CBI or other information whose disclosure 
is restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the Internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available either electronically in http://www.regulations.gov or in hard copy 

during normal business hours at the Air Protection Division, U.S. 
Environmental Protection Agency, Region III, 1650 Arch Street, 
Philadelphia, Pennsylvania 19103. Copies of the State submittal are 
available at the Pennsylvania Department of Environmental Protection, 
Bureau of Air Quality Control, P.O. Box 8468, 400 Market Street, 
Harrisburg, Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Ellen Wentworth, (215) 814-2034, or by 
e-mail at wentworth.ellen@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA.

Table of Contents

I. What Are the Actions EPA Is Proposing to Take?
II. What Is the Background for These Proposed Actions?
III. What Are the Criteria for Redesignation to Attainment?
IV. Why Is EPA Taking These Actions?
V. What Would Be the Effect of These Actions?
VI. What Is EPA's Analysis of the Commonwealth's Request?
VII. Are the Motor Vehicle Emissions Budgets Established and 
Identified in the Maintenance Plan for the Lancaster Area Adequate 
and Approvable?
VIII. Proposed Actions
IX. Statutory and Executive Order Reviews

I. What Are the Actions EPA Is Proposing To Take?

    On September 20, 2006, as supplemented on November 8, 2006, the 
PADEP formally submitted a request to redesignate the Lancaster Area 
from nonattainment to attainment of the 8-hour NAAQS for ozone. 
Concurrently, Pennsylvania submitted a maintenance plan for the 
Lancaster Area as a SIP revision to ensure continued attainment in the 
Area for at least 11 years after redesignation. PADEP also submitted a 
2002 base-year inventory for the Lancaster Area as a SIP revision. The 
Lancaster Area is comprised of the County of Lancaster. It is currently 
designated a marginal 8-hour ozone nonattainment area. EPA is proposing 
to determine that the Lancaster Area has attained the 8-hour ozone 
NAAQS and that it has met the requirements for redesignation pursuant 
to section 107(d)(3)(E) of the CAA. EPA is, therefore, proposing to 
approve the redesignation request to change the designation of the 
Lancaster Area from nonattainment to attainment for the 8-hour ozone 
NAAQS. EPA is also proposing to approve the Lancaster maintenance plan 
as a SIP revision for the Area (such approval being one of the CAA 
criteria for redesignation to attainment status). The maintenance plan 
is designed to ensure continued attainment in the Lancaster Area for 
the next 11 years. EPA is also proposing to approve the 2002 base-year 
inventory for the Lancaster Area as a SIP revision. Additionally, EPA 
is announcing its action on the adequacy process for the MVEBs 
identified in the Lancaster Area maintenance plan, and proposing to 
approve the MVEBs identified for volatile organic compounds (VOCs) and 
nitrogen oxides (NOX) for the Lancaster Area for 
transportation conformity purposes.

II. What Is the Background for These Proposed Actions?

A. General

    Ground-level ozone is not emitted directly by sources. Rather, 
emissions of NOX and VOC react in the presence of sunlight 
to form ground-level ozone. The air pollutants NOX and VOC 
are referred to as precursors of ozone. The CAA establishes a process 
for air quality management through the attainment and maintenance of 
the NAAQS.
    On July 18, 1997, EPA promulgated a revised 8-hour ozone standard 
of 0.08 parts per million (ppm). This new standard is more stringent 
than the previous 1-hour standard. EPA designated, as nonattainment, 
any area violating the 8-hour ozone NAAQS based on the air quality data 
for the three years of 2001-2003. These were the most recent three 
years of data at the time EPA designated 8-hour areas. The Lancaster 
Area was designated a moderate 8-hour ozone nonattainment area in a 
Federal Register notice signed on April 15, 2004 and published on April 
30, 2004 (69 FR 23857), based on its exceedance of the 8-hour health-
based standard for ozone during the years 2001-2003. In July 2004, 
Pennsylvania requested that the EPA reclassify the Lancaster Area to a 
``marginal'' 8-hour ozone nonattainment Area in accordance with section 
181(a)(4) of the CAA, which allows a state to request reclassification 
if the design value in the nonattainment area is five percent greater 
or five percent less than the level on which the classification is 
based. The Lancaster Area was reclassified by EPA as a ``marginal'' 8-
hour ozone nonattainment area on September 22, 2004 (69 FR 56697).
    On April 30, 2004, EPA issued a final rule (69 FR 23951, 23996) to 
revoke the 1-hour ozone NAAQS in the Lancaster Area (as well as most 
other areas of the country) effective June 15, 2005. See 40 CFR 
50.9(b); 69 FR at 23996 (April 30, 2004); 70 FR 44470 (August 3, 2005).
    However, on December 22, 2006, the U.S. Court of Appeals for the 
District of Columbia Circuit vacated EPA's Phase 1 Implementation Rule 
for the 8-hour Ozone Standard, (69 FR 23951, April 30, 2004). See South 
Coast Air Quality Management Dist. v. EPA, 472 F.3d 882 (D.C. Cir. 
2006) (hereafter ``South Coast.''). The Court held that certain 
provisions of EPA's Phase 1 Rule were inconsistent with the 
requirements of the Clean Air Act. The Court rejected EPA's reasons for 
implementing the 8-hour standard in nonattainment areas under subpart 1 
in lieu of subpart 2 of Title I, part D of the Act. The Court also held 
that EPA improperly failed to retain four measures required for 1-hour 
nonattainment areas under the anti-backsliding provisions of the 
regulations: (1) Nonattainment area New Source Review (NSR) 
requirements based on an area's 1-hour nonattainment classification; 
(2) Section 185 penalty fees for 1-hour severe or extreme nonattainment 
areas; (3) measures to be implemented pursuant to section 172(c)(9) or 
182(c)(9) of the Act, on the contingency of an area not making 
reasonable further progress toward attainment of the 1-hour NAAQS, or 
for failure to attain that NAAQS; and (4) the certain conformity 
requirements for certain types of federal actions. The Court upheld 
EPA's authority to revoke the 1-hour standard provided there were 
adequate anti-backsliding provisions. Elsewhere in this document, 
mainly in section VI.B, ``The Lancaster Area Has Met All Applicable 
Requirements Under Section 110 and Part D of the CAA and Has a Fully 
Approved SIP Under Section 110(k) of the CAA,'' EPA discusses its 
rationale why the decision in South Coast is not an impediment to 
redesignating the Lancaster Area to attainment of the 8-hour ozone 
NAAQS.
    The CAA, title I, part D, contains two sets of provisions--subpart 
1 and subpart 2--that address planning and control requirements for 
nonattainment areas. Subpart 1 (which EPA refers to as ``basic'' 
nonattainment) contains general, less prescriptive requirements for 
nonattainment areas for any pollutant--including ozone--governed by a 
NAAQS. Subpart 2 (which EPA refers to as ``classified'' nonattainment) 
provides more specific requirements for

[[Page 27267]]

ozone nonattainment areas. Some 8-hour ozone nonattainment areas are 
subject only to the provisions of subpart 1. Other areas are also 
subject to the provisions of subpart 2. Under EPA's 8-hour ozone 
implementation rule, an area was classified under subpart 2 based on 
its 8-hour ozone design value (i.e., the 3-year average annual fourth-
highest daily maximum 8-hour average ozone concentration), if it had a 
1-hour design value at or above 0.121 ppm (the lowest 1-hour design 
value in the CAA for subpart 2 requirements). All other areas were 
covered under subpart 1, based upon their 8-hour design values. In 
2004, the Lancaster Area was classified a marginal 8-hour ozone 
nonattainment area based on air quality monitoring data from 2001-2003. 
Therefore, the Lancaster Area is subject to the requirements of subpart 
2 of part D.
    Under 40 CFR part 50, the 8-hour ozone standard is attained when 
the 3-year average of the annual fourth-highest daily maximum 8-hour 
average ambient air quality ozone concentrations is less than or equal 
to 0.08 ppm (i.e., 0.084 ppm when rounding is considered). See 69 FR 
23857, (April 30, 2004) for further information. Ambient air quality 
monitoring data for the 3-year period must meet data completeness 
requirements. The data completeness requirements are met when the 
average percent of days with valid ambient monitoring data is greater 
than 90 percent, and no single year has less than 75 percent data 
completeness as determined in Appendix I of 40 CFR part 50. The ozone 
monitoring data indicates that the Lancaster Area has a design value of 
0.083 ppm for the 3-year period of 2003-2005, using complete, quality-
assured data. Therefore, the ambient ozone data for the Lancaster Area 
indicates no violations of the 8-hour ozone standard.

B. The Lancaster Area

    The Lancaster Area consists of the County of Lancaster, 
Pennsylvania. Prior to its designation as an 8-hour ozone nonattainment 
area, the Lancaster Area was a marginal 1-hour ozone nonattainment 
Area, and therefore was subject to requirements for marginal 
nonattainment areas pursuant to section 182(a) of the CAA. See 56 FR 
56694 (November 6, 1991).
    On September 20, 2006 and supplemented on November 8, 2006, the 
PADEP requested that the Lancaster Area be redesignated to attainment 
for the 8-hour ozone standard. The redesignation request included three 
years of complete, quality-assured data for the period of 2003-2005, 
indicating that the 8-hour NAAQS for ozone had been achieved in the 
Lancaster Area. The data satisfies the CAA requirements that the 3-year 
average of the annual fourth-highest daily maximum 8-hour average ozone 
concentration (commonly referred to as the area's design value), must 
be less than or equal to 0.08 ppm (i.e., 0.084 ppm when rounding is 
considered). Under the CAA, a nonattainment area may be redesignated if 
sufficient complete, quality-assured data is available to determine 
that the area has attained the standard and the area meets the other 
CAA redesignation requirements set forth in section 107(d)(3)(E).

III. What Are the Criteria for Redesignation to Attainment?

    The CAA provides the requirements for redesignating a nonattainment 
area to attainment. Specifically, section 107(d)(3)(E) of the CAA, 
allows for redesignation, providing that:
    (1) EPA determines that the area has attained the applicable NAAQS;
    (2) EPA has fully approved the applicable implementation plan for 
the area under section 110(k);
    (3) EPA determines that the improvement in air quality is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the applicable SIP and applicable Federal air 
pollutant control regulations and other permanent and enforceable 
reductions;
    (4) EPA has fully approved a maintenance plan for the area as 
meeting the requirements of section 175A; and
    (5) The State containing such area has met all requirements 
applicable to the area under section 110 and part D.
    EPA provided guidance on redesignations in the General Preamble for 
the Implementation of Title I of the CAA Amendments of 1990, on April 
16, 1992 (57 FR 13498), and supplemented this guidance on April 28, 
1992 (57 FR 18070). EPA has provided further guidance on processing 
redesignation requests in the following documents:
     ``Ozone and Carbon Monoxide Design Value Calculations,'' 
Memorandum from Bill Laxton, June, 18, 1990;
     ``Maintenance Plans for Redesignation of Ozone and Carbon 
Monoxide Nonattainment Areas,'' Memorandum from G.T. Helms, Chief, 
Ozone/Carbon Monoxide Programs Branch, April 30, 1992;
     ``Contingency Measures for Ozone and Carbon Monoxide (CO) 
Redesignations,'' Memorandum from G.T. Helms, Chief, Ozone/Carbon 
Monoxide Programs Branch, June 1, 1992;
     ``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division, September 4, 1992;
     ``State Implementation Plan (SIP) Actions Submitted in 
Response to Clean Air Act (Act) Deadlines,'' Memorandum from John 
Calcagni Director, Air Quality Management Division, October 28, 1992;
     ``Technical Support Documents (TSDs) for Redesignation 
Ozone and Carbon Monoxide
     (CO) Nonattainment Areas,'' Memorandum from G.T. Helms, 
Chief, Ozone/Carbon Monoxide Programs Branch, August 17, 1993;
     ``State Implementation Plan (SIP) Requirements for Areas 
Submitting Requests for Redesignation to Attainment of the Ozone and 
Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) on 
or after November 15, 1992,'' Memorandum from Michael
     H. Shapiro, Acting Assistant Administrator for Air and 
Radiation, September 17, 1993;
     Memorandum from D. Kent Berry, Acting Director, Air 
Quality Management Division, to Air Division Directors, Regions 1-10, 
``Use of Actual Emissions in Maintenance Demonstrations for Ozone and 
CO Nonattainment Areas,'' dated November 30, 1993;
     ``Part D New Source Review (part D NSR) Requirements for 
Areas Requesting Redesignation to Attainment,'' Memorandum from Mary D. 
Nichols, Assistant Administrator for Air and Radiation, October 14, 
1994; and
     ``Reasonable Further Progress, Attainment Demonstration, 
and Related Requirements for Ozone Nonattainment Areas Meeting the 
Ozone National Ambient Air Quality Standard,'' Memorandum from John S. 
Seitz, Director, Office of Air Quality Planning and Standards, May 10, 
1995.

IV. Why Is EPA Taking These Actions?

    On September 20, 2006, the PADEP requested redesignation of the 
Lancaster Area to attainment for the 8-hour ozone standard. On 
September 20, 2006, as supplemented on November 8, 2006, PADEP 
submitted a maintenance plan for the Lancaster Area as a SIP revision 
to ensure continued attainment at least 11 years after redesignation. 
PADEP also submitted a 2002 base-year inventory concurrently with its 
maintenance plan as a SIP revision, which is an applicable requirement 
for the Lancaster Area for

[[Page 27268]]

purposes of redesignation. EPA has determined that the Lancaster Area 
has attained the 8-hour ozone standard and has met the requirements for 
redesignation set forth in section 107(d)(3)(E).

V. What Would Be the Effect of These Actions?

    Approval of the redesignation request would change the official 
designation of the Lancaster Area from nonattainment to attainment for 
the 8-hour ozone NAAQS found at 40 CFR part 81. It would also 
incorporate into the Pennsylvania SIP a 2002 base-year inventory and a 
maintenance plan ensuring continued attainment of the 8-hour ozone 
NAAQS in the Lancaster Area for the next 11 years. The maintenance plan 
includes contingency measures to remedy any future violations of the 8-
hour NAAQS (should they occur), and identifies the NOX and 
VOC MVEBs for transportation conformity purposes for the years 2009 and 
2018. These MVEBs are displayed in the following table:

     Table 1.--Motor Vehicle Emissions Budgets in Tons per Day (tpd)
------------------------------------------------------------------------
                     Year                           VOC          NOX
------------------------------------------------------------------------
2009..........................................         14.3         22.3
2018..........................................          7.8          9.0
------------------------------------------------------------------------

VI. What Is EPA's Analysis of the Commonwealth's Request?

    EPA is proposing to determine that the Lancaster Area has attained 
the 8-hour ozone standard, and that all other redesignation criteria 
have been met. The following is a description of how the PADEP's 
September 20, 2006 and November 8, 2006 submittals satisfy the 
requirements of section 107(d)(3)(E) of the CAA.

A. The Lancaster Area Has Attained the 8-Hour Ozone NAAQS

    EPA is proposing to determine that the Lancaster Area has attained 
the 8-hour ozone NAAQS. For ozone, an area may be considered to be 
attaining the 8-hour ozone NAAQS if there are no violations, as 
determined in accordance with 40 CFR 50.10 and Appendix I of Part 50, 
based on three complete, consecutive calendar years of quality-assured 
air quality monitoring data. To attain this standard, the design value, 
which is the 3-year average of the fourth-highest daily maximum 8-hour 
average ozone concentrations measured at each monitor, within the area, 
over each year must not exceed the ozone standard of 0.08 ppm. Based on 
the rounding convention described in 40 CFR part 50, Appendix I, the 
standard is attained if the design value is 0.084 ppm or below. The 
data must be collected and quality-assured in accordance with 40 CFR 
part 58, and recorded in the Air Quality System (AQS). The monitors 
generally should have remained at the same location for the duration of 
the monitoring period required for demonstrating attainment.
    In the Lancaster Area, there is one ozone monitor, located in 
Lancaster County that measures air quality with respect to ozone. As 
part of its redesignation request, Pennsylvania referenced ozone 
monitoring data for the years 2003-2005 for the Lancaster Area. This 
data has been quality assured and is recorded in the AQS. The fourth-
high 8-hour daily maximum concentrations, along with the three-year 
average are summarized in Table 2.

 Table 2.--Lancaster Area Fourth Highest 8-Hour Average Values Lancaster
                    County Monitor/AQS ID 42-071-0007
------------------------------------------------------------------------
                                                           Annual 4th
                         Year                            highest reading
                                                              (ppm)
------------------------------------------------------------------------
2003..................................................             0.083
2004..................................................             0.081
2005..................................................            0.085
------------------------------------------------------------------------
The average for the 3-year period 2003-2005 is 0.083 ppm.

    The air quality data for 2003-2005 show that the Lancaster Area has 
attained the 8-hour standard with a design value of 0.083 ppm. The data 
collected at the Lancaster Area monitor satisfies the CAA requirement 
that the 3-year average of the annual fourth-highest daily maximum 8-
hour average ozone concentration is less than or equal to 0.08 ppm. EPA 
believes this conclusion remains valid after review of the available 
2006 data because the design value for 2004-2006 would be 0.083 ppm. 
The PADEP's request for redesignation for the Lancaster Area indicates 
that the data is complete and was quality assured in accordance with 40 
CFR part 58. The PADEP uses the AQS as the permanent database to 
maintain its data and quality assures the data transfers and content 
for accuracy. In addition, as discussed below with respect to the 
maintenance plan, PADEP has committed to continue monitoring in 
accordance with 40 CFR part 58. In summary, EPA has determined that the 
data submitted by Pennsylvania and data taken from AQS indicate that 
the Lancaster Area has attained the 8-hour ozone NAAQS.

B. The Lancaster Area Has Met All Applicable Requirements Under Section 
110 and Part D of the CAA and Has a Fully Approved SIP Under Section 
110(k) of the CAA

    EPA has determined that the Lancaster Area has met all SIP 
requirements applicable for purposes of this redesignation under 
section 110 of the CAA (General SIP Requirements) and that it meets all 
applicable SIP requirements under part D of Title I of the CAA, in 
accordance with section 107(d)(3)(E)(v). In addition, EPA has 
determined that the SIP is fully approved with respect to all 
requirements applicable for purposes of redesignation in accordance 
with section 107(d)(3)(E)(ii). In making these proposed determinations, 
EPA ascertained which requirements are applicable to the Lancaster Area 
and determined that the applicable portions of the SIP meeting these 
requirements are fully approved under section 110(k) of the CAA. We 
note that SIPs must be fully approved only with respect to applicable 
requirements.
    The September 4, 1992 Calcagni memorandum (``Procedures for 
Processing Requests to Redesignate Areas to Attainment,'' Memorandum 
from John Calcagni, Director, Air Quality Management Division, 
September 4, 1992) describes EPA's interpretation of section 
107(d)(3)(E) with respect to the timing of applicable requirements. 
Under this interpretation, to qualify for redesignation, States 
requesting redesignation to attainment must meet only the relevant CAA 
requirements that came due prior to the submittal of a complete 
redesignation request. See also, Michael Shapiro memorandum, September 
17, 1993, and 60 FR 12459, 12465-66 (March 7, 1995) (redesignation of 
Detroit-Ann Arbor). Requirements of the CAA that are applicable 
subsequent to the area's submittal of a complete redesignation request 
remain applicable until a redesignation is approved, but are not 
required as a prerequisite to redesignation. Section 175A(c) of the 
CAA. Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004). See also, 68 FR 
at 25424, 25427 (May 12, 2003) (redesignation of St. Louis).
    This section also sets forth EPA's views on the potential effect of 
the Court's ruling in South Coast on this redesignation action. For the 
reasons set forth below, EPA does not believe that the Court's ruling 
alters any requirements relevant to this redesignation action so as to 
preclude redesignation, and does not prevent EPA from finalizing this 
redesignation.

[[Page 27269]]

EPA believes that the Court's decision, as it currently stands or as it 
may be modified based upon any petition for rehearing that has been 
filed, imposes no impediment to moving forward with the redesignation 
of this Area to attainment, because in either circumstance, 
redesignation is appropriate under the relevant redesignation 
provisions of the Act and longstanding policies regarding redesignation 
requests.
1. Section 110 General SIP Requirements
    Section 110(a)(2) of Title I of the CAA delineates the general 
requirements for a SIP, which include enforceable emissions limitations 
and other control measures, means, or techniques, provisions for the 
establishment and operation of appropriate devices necessary to collect 
data on ambient air quality, and programs to enforce the limitations. 
The general SIP elements and requirements set forth in section 
110(a)(2) include, but are not limited to the following:
     Submittal of a SIP that has been adopted by the State 
after reasonable public notice and hearing;
     Provisions for establishment and operation of appropriate 
procedures needed to monitor ambient air quality;
     Implementation of a source permit program; provisions for 
the implementation of part C requirements (Prevention of Significant 
Deterioration (PSD));
     Provisions for the implementation of part D requirements 
for New Source Review (NSR) permit programs;
     Provisions for air pollution modeling; and
     Provisions for public and local agency participation in 
planning and emission control rule development.
    Section 110(a)(2)(D) requires that SIPs contain certain measures to 
prevent sources in a State from significantly contributing to air 
quality problems in another State. To implement this provision, EPA has 
required certain states to establish programs to address transport of 
air pollutants in accordance with the NOX SIP Call, October 
27, 1998 (63 FR 57356), amendments to the NOX SIP Call, May 
14, 1999 (64 FR 26298) and March 2, 2000 (65 FR 11222), and the Clean 
Air Interstate Rule (CAIR), May 12, 2005 (70 FR 25162). However, the 
section 110(a)(2)(D) requirements for a State are not linked with a 
particular nonattainment area's designation and classification in that 
State. EPA believes that the requirements linked with a particular 
nonattainment area's designation and classifications are the relevant 
measures to evaluate in reviewing a redesignation request. The 
transport SIP submittal requirements, where applicable, continue to 
apply to a state regardless of the designation of any one particular 
area in the State.
    Thus, we do not believe that these requirements should be construed 
to be applicable requirements for purposes of redesignation. In 
addition, EPA believes that the other section 110 elements not 
connected with nonattainment plan submissions and not linked with an 
area's attainment status are not applicable requirements for purposes 
of redesignation. The Lancaster Area will still be subject to these 
requirements after it is redesignated. The section 110 and part D 
requirements, which are linked with a particular area's designation and 
classification, are the relevant measures to evaluate in reviewing a 
redesignation request. This policy is consistent with EPA's existing 
policy on applicability of conformity (i.e., for redesignations) and 
oxygenated fuels requirement. See Reading, Pennsylvania, proposed and 
final rulemakings (61 FR 53174, October 10, 1996), (62 FR 24826, May 7, 
1997); Cleveland-Akron-Lorain, Ohio final rulemaking (61 FR 20458, May 
7, 1996); and Tampa, Florida, final rulemaking (60 FR 62748, December 
7, 1995). See also, the discussion on this issue in the Cincinnati 
redesignation (65 FR at 37890, June 19, 2000), and in the Pittsburgh 
redesignation (66 FR at 53099, October 19, 2001). Similarly, with 
respect to the NOX SIP Call rules, EPA noted in its Phase 1 
Final Rule to Implement the 8-hour Ozone NAAQS, that the NOX 
SIP Call rules are not ``an'' `applicable requirement' for purposes of 
section 110(1) because the NOX rules apply regardless of an 
area's attainment or nonattainment status for the 8-hour (or the 1-
hour) NAAQS.'' 69 FR 23951, 23983 (April 30, 2004).
    EPA believes that section 110 elements not linked to the area's 
nonattainment status are not applicable for purposes of redesignation. 
As explained later in this notice, two part D requirements applicable 
for purposes of redesignation under the 8-hour standard became due 
prior to the submission of the redesignation request.
2. Part D Requirements Under the 8-Hour Standard
    Pursuant to an April 30, 2004, final rule (69 FR 23951), the 
Lancaster Area was designated a marginal nonattainment area under 
subpart 2 for the 8-hour ozone standard. Sections 172-176 of the CAA, 
found in subpart 1 of part D, set forth the basic nonattainment 
requirements applicable to all nonattainment areas. Section 182 of the 
CAA, found in subpart 2 of part D, establishes additional specific 
requirements depending on the area's nonattainment classification.
    With respect to the 8-hour standard, we do not believe that any 
part of the court's opinion in South Coast would require that this 
subpart 2 classification be changed upon remand to EPA. However, even 
assuming for present purposes that the Lancaster Area would become 
subject to a different classification under a classification scheme 
created in a future role in response to the court's decision, that 
would not prevent EPA from finalizing a redesignation for this area. 
For the reasons set forth below, we believe that any additional 
requirements that might apply based on that different classification 
would not be applicable for purposes of evaluating the redesignation 
request.
    This belief is based upon (1) EPA's longstanding policy of 
evaluating redesignation requests in accordance only with the 
requirements due at the time the request was submitted; and (2) 
consideration of the inequity of applying retroactively any 
requirements that might be applied in the future.
    First, at the time the redesignation request was submitted, the 
Lancaster Area was classified under subpart 2 and was required to meet 
the subpart 2 requirements. Under EPA's longstanding interpretation of 
section 107(d)(3)(E) of the Clean Air Act, to qualify for 
redesignation, states requesting redesignation to attainment must meet 
only the relevant SIP requirements that came due prior to the submittal 
of a complete redesignation request. September 4, 1992 Calcagni 
memorandum (``Procedures for Processing Requests to Redesignate Areas 
to Attainment,'' Memorandum from John Calcagni, Director, Air Quality 
Management Division). See also, Michael Shapiro Memorandum, September 
17, 1993, and 60 FR 12459, 12465-66 (March 7, 1995) (redesignation of 
Detroit-Ann Arbor); Sierra Club v. EPA, 375 F.3d 537 (7th Cir. 2004) 
(which upheld this interpretation); 68 FR 25418, 25424, 25427 (May 12, 
2003) (redesignation of St. Louis).
    Moreover, it would be inequitable to retroactively apply any new 
SIP requirements that were not applicable at the time the request was 
submitted, but which might later become applicable. The D.C. Circuit 
has recognized the inequity in such retroactive rulemaking. See, Sierra 
Club v. Whitman, 285 F.3d 63 (D.C. Cir. 2002), in which the D.C. 
Circuit upheld a District Court's ruling refusing to make retroactive 
an EPA

[[Page 27270]]

determination of nonattainment that was past the statutory due date. 
Such a determination would have resulted in the imposition of 
additional requirements on the area. The Court stated: ``Although EPA 
failed to make the nonattainment determination within the statutory 
time frame, Sierra Club's proposed solution only makes the situation 
worse. Retroactive relief would likely impose large costs on the 
States, which would face fines and suits for not implementing air 
pollution prevention plans in 1997, even though they were not on notice 
at the time.'' Id at 68. Similarly, here it would be unfair to penalize 
the Area by applying to it for purposes of redesignation any additional 
requirements that were not in effect at the time it submitted its 
redesignation request, but that might apply in the future.
    With respect to the 8-hour standard, two part D subpart 2 
requirements became due for the Lancaster Area under section 182(a) of 
the CAA prior to redesignation--a 2002 base-year inventory, and the 
emissions statement requirement pursuant to section 182(a)(3)(B). 
Pennsylvania already has in its approved SIP an emissions statement 
rule for the 1-hour standard that covers all portions of the designated 
8-hour nonattainment area, and that satisfies the emissions statement 
requirement for the 8-hour standard. See, 25 Pa. Code 135.21(a)(1) 
codified at 40 CFR 52.2020; 60 FR 2881, January 12, 1995. EPA is 
proposing to approve the 2002 base-year inventory for the Lancaster 
Area, which was submitted on September 30, 2006, and supplemented on 
November 8, 2006, concurrently with its maintenance plan, into the 
Pennsylvania SIP. A detailed evaluation of Pennsylvania's 2002 base-
year inventory for the Lancaster Area can be found in a Technical 
Support Document (TSD) prepared by EPA for this rulemaking. EPA has 
determined that the emission inventory and emissions statement 
requirements for the Lancaster Area have been satisfied.
    EPA believes it is reasonable to interpret the general conformity 
and NSR requirements of part D as not requiring approval prior to 
redesignation. With respect to section 176, Conformity Requirements, 
section 176(c) of the CAA requires states to establish criteria and 
procedures to ensure that Federally supported or funded projects 
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. and the Federal Transit Act (``transportation conformity'') as 
well as to all other Federally supported or funded projects (``general 
conformity''). State conformity revisions must be consistent with 
Federal conformity regulations relating to consultation, enforcement 
and enforceability that the CAA required the EPA to promulgate. EPA 
believes it is reasonable to interpret the conformity SIP requirements 
as not applying for purposes of evaluating the redesignation request 
under section 107(d) since State conformity rules are still required 
after redesignation and Federal conformity rules apply where State 
rules have not been approved. See, Wall v. EPA, 265 F. 3d 426, 438-440 
(6th Cir. 2001), upholding this interpretation. See also, 60 FR 62748 
(December 7, 1995).
    In the case of the Lancaster Area, which is located in the Ozone 
Transport Region (OTR), nonattainment NSR requirements will continue to 
be applicable after redesignation. On October 19, 2001 (66 FR 53094), 
EPA approved Pennsylvania's NSR SIP revision for the Lancaster Area. 
This revision imposes the OTR NSR requirements in marginal and 
incomplete data ozone nonattainment areas and ozone attainment areas 
within the Commonwealth. The OTR requirements are more stringent than 
those required in marginal ozone nonattainment areas because a lower 
threshold for what constitutes a major stationary source of VOC 
emissions is required and a higher offset ratio is required. 
Pennsylvania's NSR SIP also imposes the NSR requirements on major 
sources of NOX emissions as required by section 182(f) of 
the CAA.
    EPA has also interpreted the section 184 OTR requirements, 
including the NSR program, as not being applicable for purposes of 
redesignation. The rationale for this is based on two considerations. 
First, the requirement to submit SIP revisions for the section 184 
requirements continues to apply to areas in the OTR after redesignation 
to attainment. Therefore, the State remains obligated to have NSR, as 
well as reasonably available control technology (RACT), and Vehicle 
Inspection and Maintenance programs even after redesignation. Second, 
the section 184 control measures are region-wide requirements and do 
not apply to Lancaster by virtue of the Area's designation and 
classification. See, 61 FR 53174, 53175-53176 (October 10, 1996) and 62 
FR 24826, 24830-32 (May 7, 1997).
3. Part D Requirements Under the 1-Hour Standard
    In its December 22, 2006 decision in South Coast, the Court also 
addressed EPA's revocation of the 1-hour ozone standard. The current 
status of the revocation and associated anti-backsliding rules is 
dependent on whether the Court's decision stands as originally issued 
or is modified in response to any petition for rehearing or request for 
clarification that has been filed. As described more fully below, EPA 
believes that the Area has attained the 1-hour standard and has met all 
of the requirements under the 1-hour standard that would apply even if 
the 1-hour standard is deemed to be reinstated and, those requirements 
are viewed as applying under the statute itself. Thus, the Court's 
decision, as it currently stands, imposes no impediment to moving 
forward with the redesignation of this Area to attainment of the 8-hour 
standard. Further, even if the court's decision were modified based 
upon any petition for rehearing that has been filed, such that the 
ultimate decision requires something less than compliance with all 
applicable 1-hour requirements, since the area meets all such 
requirements as explained below, it would certainly meet any lesser 
requirements and thus similarly redesignation could proceed.
    The conformity portion of the Court's ruling does not impact the 
redesignation request for the Lancaster Area because there are no 
conformity requirements that are relevant to a redesignation request 
for any standard, including the requirement to submit a transportation 
conformity SIP.\1\ As we have previously noted, under longstanding EPA 
policy, EPA believes it is reasonable to interpret the conformity SIP 
requirements as not applying for purposes of evaluating a redesignation 
request under section 107(d) because state conformity rules are still 
required after redesignation and federal conformity rules apply where 
state rules have not been approved. 40 CFR 51.390. See, Wall v. EPA, 
265 F.3d 426 (6th Cir. 2001), upholding this interpretation. See, also, 
60 FR 62748 (December 7, 1995) (Tampa, Florida redesignation).
---------------------------------------------------------------------------

    \1\ The Clean Air Act section 176(c )(4)(E) currently requires 
States to submit revisions to their SIPs to reflect certain federal 
criteria and procedures for determining transportation conformity. 
Transportation conformity SIPs are different from the motor vehicle 
emissions budgets that are established in control strategy SIPs and 
maintenance plans.
---------------------------------------------------------------------------

    With respect to the requirement for submission of contingency 
measures for the 1-hour standard, section 182(a) does not require 
contingency measures for

[[Page 27271]]

marginal areas, and, therefore, that portion of the Court's ruling does 
not impact the redesignation request for the Lancaster Area.
    Prior to its designation as an 8-hour ozone nonattainment area, the 
Lancaster Area was designated a marginal nonattainment area for the 1-
hour standard. With respect to the 1-hour standard, the applicable 
requirements of subpart 1 and of subpart 2 of part D (section 182) for 
the Lancaster Area are discussed in the following paragraphs:
    Section 182(a)(2)(A) required SIP revisions to correct or amend 
RACT for sources in marginal areas, such as the Lancaster Area, that 
were subject to control technique guidelines (CTGs) issued before 
November 15, 1990 pursuant to CAA section 108. On December 22, 1994, 
EPA fully approved into the Pennsylvania SIP all corrections required 
under section 182(a)(2)(A) of the CAA (59 FR 65971, December 22, 1994). 
EPA believes that this requirement applies only to marginal and higher 
classified areas under the 1-hour NAAQS pursuant to the 1990 amendments 
to the CAA; therefore, this is a one-time requirement. After an area 
has fulfilled the section 182(a)(2)(A) requirement for the 1-hour 
NAAQS, there is no requirement under the 8-hour NAAQS.
    Section 182(a)(2)(B) relates to the savings clause for vehicle 
inspection and maintenance (I/M). It requires marginal areas to adopt 
vehicle I/M programs. This provision was not applicable to the 
Lancaster Area because this area did not have and was not required to 
have an I/M program before November 15, 1990.
    Section 182(a)(3)(A) requires a triennial Periodic Emissions 
Inventory for the nonattainment area. The most recent inventory for the 
Lancaster Area was compiled for 2002 and submitted to EPA as a SIP 
revision with the maintenance plan for the Lancaster Area.
    Section 182(a)(2)(C) required Pennsylvania to adopt a NSR Permit 
Program or to correct its existing program to meet EPA guidance 
requirements issued prior to 1990. As discussed previously, EPA 
believes it is reasonable to interpret the NSR requirements of part D 
as not requiring approval prior to redesignation. However, as noted 
previously, EPA has fully approved Pennsylvania's NSR program for the 
Lancaster Area.
    Section 182(a)(3)(B) requires sources of VOCs and NOX in 
the nonattainment area to submit Emissions Statements regarding the 
quantity of emissions from the previous year. As discussed previously, 
Pennsylvania already has in its approved SIP a previously approved 
emissions statement rule for the 1-hour standard which applies to the 
Lancaster Area.
    Section 182(a)(1) provides for the submission of a comprehensive, 
accurate, current inventory of actual emissions from all sources, as 
described in section 172(c)(3), in accordance with guidance provided by 
the Administrator. In this proposed rule, EPA is proposing to approve a 
2002 base-year emissions inventory for the Lancaster Area as meeting 
the requirement of section 182(a)(1). While EPA generally required that 
the base-year inventory for the 1-hour standard be for calendar year 
1990, EPA believes that Pennsylvania's 2002 inventory fulfills this 
requirement because it meets EPA's guidance and because it is more up 
to date than 1990. EPA also proposes to determine that, if the 1-hour 
standard is deemed to be reinstated, the 2002 base-year inventory for 
the 8-hour standard will provide an acceptable substitute for the base-
year inventory for the 1-hour standard.
    As noted previously, EPA believes it is reasonable to interpret the 
general conformity requirements of part D as not requiring approval 
prior to redesignation.
    EPA has previously determined that the Lancaster Area has attained 
the 1-hour ozone NAAQS by the November 15, 1993 attainment date (60 FR 
3349, January 17, 1995), and we further believe that the Lancaster Area 
is still in attainment for the 1-hour ozone NAAQS based upon the ozone 
monitoring data for the years 2003-2005. To demonstrate attainment, 
i.e., compliance with this standard, the annual average of the number 
of expected exceedances of the 1-hour standard over a three-year period 
must be less than or equal to 1. Table 3 provides a summary of the 
number of expected exceedances for each of the years 2003 through 2005 
and three-year annual average.

Table 3.--Lancaster Nonattainment Area Number of Expected Exceedances of
 the 1-Hour Ozone Standard; Lancaster County Monitor/AQS ID 42-071-0007
------------------------------------------------------------------------
                                                              Number of
                            Year                               expected
                                                             exceedances
------------------------------------------------------------------------
2003.......................................................          1.0
2004.......................................................          0.0
2005.......................................................         0.0
------------------------------------------------------------------------
The average number of expected exceedances for the 3-year period 2003
  through 2005 is 0.3.

    In summary, EPA has determined that the data submitted by 
Pennsylvania and taken from AQS indicates that the Lancaster Area is 
maintaining air quality that conforms to the 1-hour ozone NAAQS. EPA 
believes this conclusion remains valid after review of the available 
2006 data because no exceedances were recorded in the Lancaster Area in 
2006.
4. Transport Region Requirements
    All areas in the Ozone Transport Region (OTR), both attainment and 
nonattainment, are subject to additional control requirements under 
section 184 for the purpose of reducing interstate transport of 
emissions that may contribute to downwind ozone nonattainment. The 
section 184 requirements include RACT, enhanced vehicle inspection and 
maintenance, and Stage II vapor recovery or a comparable measure.
    In the case of the Lancaster Area, which is located in the OTR, 
nonattainment NSR will be applicable after redesignation. On October 
19, 2001 (66 FR 53094), EPA fully approved Pennsylvania's NSR SIP 
revision consisting of Pennsylvania's Chapter 127 part D NSR 
regulations that cover the Lancaster Area. The Chapter 127 part D NSR 
regulations in the Pennsylvania SIP explicitly apply the requirements 
for NSR of section 184 of the CAA to attainment areas within the OTR.
    EPA has also interpreted the section 184 OTR requirements, 
including the NSR program, as not being applicable for purposes of 
redesignation. See, 61 FR 53174, October 10, 1996 and 62 FR 24826, May 
7, 1997 (Reading, Pennsylvania Redesignation). The rationale for this 
is based on two considerations. First, the requirement to submit SIP 
revisions for the section 184 requirements continues to apply to areas 
in the OTR after redesignation to attainment. Therefore, the State 
remains obligated to have NSR, as well as RACT, and I/M even after 
redesignation. Second, the section 184 control measures are region-wide 
requirements and do not apply to the Area by virtue of the Area's 
designation and classification. See, 61 FR 53174 at 53175-53176 
(October 10, 1996) and 62 FR 24826 at 24830-24832 (May 7, 1997).
5. Lancaster Has a Fully Approved SIP for Purposes of Redesignation
    EPA has fully approved the Pennsylvania SIP for the purposes of 
this redesignation. EPA may rely on prior SIP approvals in approving a 
redesignation request, Calcagni Memo, p.3; Southwestern Pennsylvania 
Growth

[[Page 27272]]

Alliance v. Browner, 144 F. 3d 984, 989-90 (6th Cir. 1998), Wall v. 
EPA, 265 F. 3d 426 (6th Cir. 2001), plus any additional measures it may 
approve in conjunction with a redesignation action. See, 68 FR at 25425 
(May 12, 2003) and citations therein.
    The Lancaster Area was a 1-hour ozone marginal nonattainment area 
at the time of its designation as a marginal 8-hour ozone nonattainment 
area on September 22, 2004 (69 FR 56697). As stated previously, two 
subpart 2 part D requirements became due for the Lancaster Area prior 
to redesignation--a 2002 base-year inventory, and the emissions 
statement requirement. PADEP has submitted concurrently with its 
maintenance plan, a 2002 base-year inventory as a SIP revision. In this 
action, EPA is proposing approval of this inventory. The emissions 
statement requirement for Lancaster was fulfilled under the 1-hour 
standard. Because there are no outstanding SIP submission requirements 
applicable for the purposes of the redesignation of Lancaster, the 
applicable implementation plan satisfies all pertinent SIP 
requirements.

C. The Air Quality Improvement in the Lancaster Area Is Due to 
Permanent and Enforceable Reductions in Emissions Resulting From 
Implementation of the SIP and Applicable Federal Air Pollution Control 
Regulations and Other Permanent and Enforceable Reductions

    EPA believes that the Commonwealth has demonstrated that the 
observed air quality improvement in the Lancaster Area is due to 
permanent and enforceable reductions in emissions resulting from 
implementation of the SIP, Federal measures, and other State-adopted 
measures. Emissions reductions attributable to these rules are shown in 
Table 4.

                  Table 4.--Total VOC and NOX Emissions for 2002 and 2004 in Tons per Day (tpd)
----------------------------------------------------------------------------------------------------------------
                      Year                         Point *        Area       Nonroad       Mobile       Total
----------------------------------------------------------------------------------------------------------------
                                        Volatile Organic Compounds (VOC)
----------------------------------------------------------------------------------------------------------------
2002...........................................          8.5         24.5         17.4         23.4         73.8
2004...........................................          8.1         24.4         17.3         19.8         69.6
Diff. (02-04)..................................          0.4          0.1          0.1          3.6          4.2
----------------------------------------------------------------------------------------------------------------
                                              Nitrogen Oxides (NOX)
----------------------------------------------------------------------------------------------------------------
2002...........................................          3.6          2.6         13.7         36.9         56.8
2004...........................................          3.9          2.6         13.2         32.3         52.0
Diff (02-04)...................................          -03          0.0          0.5          4.6         4.8
----------------------------------------------------------------------------------------------------------------
* The stationary point source emissions shown here do not include banked emission credits of 3.7 tpd of VOC and
  11 tpd of NOX as indicated in Technical Appendix A-4 to Pennsylvania's SIP submission.

    Between 2002 and 2004, VOC emissions decreased by 5.7 percent from 
73.8 tpd to 69.6 tpd; NOX emissions decreased by 8.4 percent 
from 56.8 tpd to 52.0 tpd. These reductions, and anticipated future 
reductions, are due to the following permanent and enforceable 
measures.
1. Stationary Point Sources
Interstate Pollution Transport Reduction (66 FR 43795, August 21, 2001)
2. Stationary Area Sources
Solvent Cleaning (68 FR 2206, January 16, 2003)
Portable Fuel Containers (69 FR 70893, December 8, 2004)
3. Highway Vehicle Sources
Federal Motor Vehicle Control Programs (FMVCP)
--Tier 1 (56 FR 25724, June 5, 1991)
--Tier 2 (65 FR 6698, February 10, 2000)
Heavy-duty Engine and Vehicle Standards (62 FR 54694, October 21, 1997, 
and 65 FR 59896, October 6, 2000)
National Low Emission Vehicle (NLEV) Program (64 FR 72564, December 28, 
1999) Vehicle Emission Inspection/Maintenance Program (70 FR 58313, 
October 6, 2005)
4. Non-Road Sources
Nonroad Diesel Engine and Fuel (69 FR 38958, June 29, 2004)

    EPA believes that permanent and enforceable emissions reductions 
are the cause of the long-term improvement in ozone levels and are the 
cause of the area achieving attainment of the 8-hour ozone standard.

D. The Lancaster Area Has a Fully Approvable Maintenance Plan Pursuant 
to Section 175A of the CAA

    In conjunction with its request to redesignate the Lancaster Area 
to attainment status, Pennsylvania submitted a SIP revision to provide 
for maintenance of the 8-hour ozone NAAQS in the Lancaster Area for at 
least 11 years after redesignation. Pennsylvania is requesting that EPA 
approve this SIP revision as meeting the requirement of section 175A of 
the CAA. Once approved, the maintenance plan for the 8-hour ozone NAAQS 
will ensure that the SIP for the Lancaster Area meets the requirements 
of the CAA regarding maintenance of the applicable 8-hour ozone 
standard.
What Is Required in a Maintenance Plan?
    Section 175 of the CAA sets forth the elements of a maintenance 
plan for areas seeking redesignation from nonattainment to attainment. 
Under section 175A, the plan must demonstrate continued attainment of 
the applicable NAAQS for at least 10 years after approval of a 
redesignation of an area to attainment. Eight years after the 
redesignation, the State must submit a revised maintenance plan 
demonstrating that attainment will continue to be maintained for the 
next 10-year period following the initial 10-year period. To address 
the possibility of future NAAQS violations, the maintenance plan must 
contain such contingency measures, with a schedule for implementation, 
as EPA deems necessary to assure prompt correction of any future 8-hour 
ozone violations. Section 175A of the CAA sets forth the elements of a 
maintenance plan for areas seeking redesignation from nonattainment to 
attainment. The Calcagni memo provides additional guidance on the 
content of a maintenance plan. An ozone maintenance plan should address 
the following provisions:

[[Page 27273]]

    (a) An attainment emissions inventory;
    (b) A maintenance demonstration;
    (c) A monitoring network;
    (d) Verification of continued attainment; and
    (e) A contingency plan.
Analysis of the Lancaster Area Maintenance Plan
    (a) Attainment inventory--An attainment inventory includes the 
emissions during the time period associated with the monitoring data 
showing attainment. An attainment year of 2004 was used for the 
Lancaster Area since it is a reasonable year within the 3-year block of 
2003-2005 and accounts for reductions attributable to implementation of 
the CAA requirements to date.
    The 2002 and 2004 point source data was compiled from actual 
sources. Pennsylvania requires owners and operators of larger 
facilities to submit annual production figures and emission 
calculations each year. Throughput data are multiplied by emission 
factors from Factor Information Retrieval (FIRE) Data Systems and EPA's 
publication series AP-42, and are based on Source Classification Codes 
(SCC). The 2002 area source data was compiled using county-level 
activity data, from census numbers, from county numbers, etc. The 2004 
area source data was projected from the 2002 inventory using temporal 
allocations provided by the Mid-Atlantic Regional Air Management 
Association (MARAMA).
    The on-road mobile source inventories for 2002 and 2004 were 
compiled using MOBILE6.2 and PENNDOT estimates for VMT. The PADEP has 
provided detailed data summaries to document the calculations of mobile 
on-road VOC and NOX emissions for 2002, as well as for the 
projection years of 2004, 2009, and 2018 (shown in Tables 4 and 5 
below). The 2002 and 2004 emissions for the majority of non-road 
emission source categories were estimated using the EPA NONROAD 2005 
model. The NONROAD model calculates emissions for diesel, gasoline, 
liquefied petroleum gasoline, and compressed natural gas-fueled non-
road equipment types and includes growth factors. The NONROAD model 
does not estimate emissions from locomotives or aircraft. For 2002 and 
2004 locomotive emissions, the PADEP projected emissions from a 1999 
survey using national fuel consumption information and EPA emission and 
conversion factors. There are no commercial aircraft operations in 
Lancaster County. For 2002 and 2004 aircraft emissions, PADEP estimated 
emissions using small airport operations statistics and emission 
factors and operational characteristics in the EPA-approved model, 
Emissions and Dispersion Modeling System (EDMS).
    More detailed information on the compilation of the 2002, 2004, 
2009, and 2018 inventories can be found in the Technical Appendices 
which are part of this submittal.
    (b) Maintenance Demonstration--On September 20, 2006, and 
supplemented on November 8, 2006, the PADEP submitted a maintenance 
plan as a SIP revision as required by section 175A of the CAA. The 
Lancaster Area plan shows maintenance of the 8-hour ozone NAAQS by 
demonstrating that current and future emissions of VOC and 
NOX remain at or below the attainment year 2004 emissions 
levels throughout the Lancaster Area through the year 2018. A 
maintenance demonstration need not be based on modeling. See, Wall v. 
EPA, supra; Sierra Club v. EPA, supra. See also, 66 FR at 53099-53100; 
68 FR at 25430-25432.
    Tables 5 and 6 specify the VOC and NOX emissions for the 
Lancaster Area for 2004, 2009, and 2018. The PADEP chose 2009 as an 
interim year in the maintenance demonstration period to demonstrate 
that the VOC and NOX emissions are not projected to increase 
above the 2004 attainment level during the time of the maintenance 
period.

            Table 5.--Total VOC Emissions for 2004-2018 (tpd)
------------------------------------------------------------------------
                                     2004 VOC     2009 VOC     2018 VOC
         Source category            emissions    emissions    emissions
------------------------------------------------------------------------
Point *..........................          8.1          8.7         11.0
Area.............................         24.4         24.2         27.2
Mobile...........................         19.8         14.3          7.8
Nonroad..........................         17.3         15.0         11.9
                                  --------------------------------------
    Total........................         69.6         62.2        57.9
------------------------------------------------------------------------
* The stationary point source emissions shown here do not include
  available banked emission credits as indicated in Appendix A-4
  submitted with the maintenance plan.

            Table 6.--Total NOX Emissions for 2004-2018 (tpd)
------------------------------------------------------------------------
                                     2004 NOX     2009 NOX     2018 NOX
         Source category            emissions    emissions    emissions
------------------------------------------------------------------------
Point *..........................          3.9          4.1          4.6
Area.............................          2.6          2.8          2.9
Mobile...........................         32.3         22.3          9.0
Non-road.........................         13.2         10.8          6.8
                                  --------------------------------------
    Total........................         52.0         39.9        23.2
------------------------------------------------------------------------
\*\ The stationary point source emissions shown here do not include
  available banked emission credits as indicated in Appendix A-4.

    The following programs are permanent and enforceable control 
measures to ensure emissions during the maintenance period are equal to 
or less than the emissions in the attainment year:
     The Clean Air Interstate Rule (CAIR) (71 FR 25328, April 
28, 2006)
     The Federal NOX SIP Call (66 FR 43795, August 
21, 2001)
     Pennsylvania's Portable Fuel Containers (December 8, 2004, 
69 FR 70893)
     Pennsylvania's Consumer Products (December 8, 2004, 69 FR 
70895)

[[Page 27274]]

     Pennsylvania's Architectural and Industrial Maintenance 
(AIM) Coatings (November 23, 2004, 69 FR 68080)
    Additionally, the following mobile programs are either effective or 
due to become effective and will further contribute to the maintenance 
demonstration of the 8-hour ozone NAAQS:
     FMVCP for passenger vehicles and light-duty trucks and 
cleaner gasoline (2009 and 2018 fleet)--Tier 1 (56 FR 25724, June 5, 
1991) and Tier 2 (65 FR 6698, February 10, 2000)
     Federal NLEV (64 FR 72564, December 28, 1999)
     PA Clean Vehicle Program (December 9, 2006)-Pennsylvania 
will implement this program in car model year 2008.
     Heavy-duty diesel on-road (2004/2007) and low-sulfur on-
road (2006) (66 FR 5002, January 18, 2001)
     Non-road emissions standards (2008) and off-road diesel 
fuel (2007/2010) (69 FR 38958, June 29, 2004)
     Vehicle emission/inspection/maintenance program (70 FR 
58313, October 6, 2005)
     Pennsylvania Heavy-Duty Diesel Emissions Control Program. 
(May 11, 2002)
    Based upon the comparison of the projected emissions and the 
attainment year emissions along with the additional measures, EPA 
concludes that PADEP has successfully demonstrated that the 8-hour 
ozone standard should be maintained in the Lancaster Areas.
    (c) Monitoring Network--There is currently one monitor measuring 
ozone in the Lancaster Area. PADEP will continue to operate its current 
air quality monitor (located in Lancaster County), in accordance with 
40 CFR part 58.
    (d) Verification of Continued Attainment--The Commonwealth will 
track the attainment status of the ozone NAAQS in the Lancaster Area by 
reviewing air quality and emissions during the maintenance period. The 
Commonwealth will perform an annual evaluation of Vehicle Miles 
Traveled (VMT) data and emissions reported from stationary sources, and 
compare them to the assumptions about these factors used in the 
maintenance plan. The Commonwealth will also evaluate the periodic 
(every three years) emission inventories prepared under EPA's 
Consolidated Emission Reporting Regulation (40 CFR 51, subpart A) to 
see if the Area exceeds the attainment year inventory (2004) by more 
than 10 percent. Based on these evaluations, the Commonwealth will 
consider whether any further emission control measures should be 
implemented.
    (e) The Maintenance Plan's Contingency Measures--The contingency 
plan provisions are designed to promptly correct a violation of the 
NAAQS that occurs after redesignation. Section 175A of the CAA requires 
that a maintenance plan include such contingency measures as EPA deems 
necessary to ensure that the State will promptly correct a violation of 
the NAAQS that occurs after redesignation. The maintenance plan should 
identify the events that would ``trigger'' the adoption and 
implementation of a contingency measure(s), the contingency measure(s) 
that would be adopted and implemented, and the schedule indicating the 
time frame by which the state would adopt and implement the measure(s).
    The ability of the Lancaster Area to stay in compliance with the 8-
hour ozone standard after redesignation depends upon VOC and 
NOX emissions in the Area remaining at or below 2004 levels. 
The Commonwealth's maintenance plan projects VOC and NOX 
emissions to decrease and stay below 2004 levels through the year 2018. 
The Commonwealth's maintenance plan outlines the procedures for the 
adoption and implementation of contingency measures to further reduce 
emissions should a violation occur.
    Contingency measures will be considered if for two consecutive 
years the fourth highest 8-hour ozone concentrations at the Lancaster 
monitor are above 84 ppb. If this trigger point occurs, the 
Commonwealth will evaluate whether additional local emission control 
measures should be implemented in order to prevent a violation of the 
air quality standard. PADEP will also analyze the conditions leading to 
the excessive ozone levels and evaluate which measures might be most 
effective in correcting the excessive ozone levels. PADEP will also 
analyze the potential emissions effect of Federal, state, and local 
measures that have been adopted but not yet implemented at the time the 
excessive ozone levels occurred. PADEP will then begin the process of 
implementing any selected measures.
    Contingency measures will be considered in the event that a 
violation of the 8-hour ozone standard occurs at the Lancaster County, 
Pennsylvania monitor. In the event of a violation of the 8-hour ozone 
standard, contingency measures will be adopted in order to return the 
Area to attainment with the standard. Contingency measures to be 
considered for the Lancaster Area will include, but not be limited to 
the following:
    Regulatory measures:

--Additional controls on consumer products.
--Additional controls on portable fuel containers
    Non-Regulatory measures:
--Voluntary diesel engine ``chip reflash''--installation software to 
correct the defeat device option on certain heavy-duty diesel engines.
--Diesel retrofit, including replacement, repowering or alternative 
fuel use, for public or private local on-road or off-road fleets.
--Idling reduction technology for Class 2 yard locomotives.
--Idling reduction technologies or strategies for truck stops, 
warehouses and other freight-handling facilities.
--Accelerated turnover of lawn and garden equipment, especially 
commercial equipment, including promotion of electric equipment.
--Additional promotion of alternative fuel (e.g., biodiesel) for home 
heating and agricultural use.

    The plan lays out a process to have any regulatory contingency 
measures in effect within 19 months of the trigger. The plan also lays 
out a process to implement the non-regulatory contingency measures 
within 12-24 months of the trigger.

VII. Are the Motor Vehicle Emissions Budgets Established and Identified 
in the Lancaster Maintenance Plan Adequate and Approvable?

A. What Are the Motor Vehicle Emissions Budgets?

    Under the CAA, States are required to submit, at various times, 
control strategy SIPs and maintenance plans in ozone areas. These 
control strategy SIPs (i.e., RFP SIPs and attainment demonstration 
SIPs) and maintenance plans identify and establish MVEBs for certain 
criteria pollutants and/or their precursors to address pollution from 
on-road mobile sources. In the maintenance plan, the MVEBs are termed 
``on-road mobile source emission budgets.'' Pursuant to 40 CFR part 93 
and Sec.  51.112, MVEBs must be established in an ozone maintenance 
plan. A MVEB is the portion of the total allowable emissions that is 
allocated to highway and transit vehicle use and emissions. A MVEB 
serves as a ceiling on emissions from an area's planned transportation 
system. The MVEB concept is further explained in the preamble to the 
November 24, 1993, transportation conformity rule (58 FR 62188). The 
preamble also describes how to establish and revise the MVEBs

[[Page 27275]]

in control strategy SIPs and maintenance plans.
    Under section 176(c) of the CAA, new transportation projects, such 
as the construction of new highways, must ``conform'' to (i.e., be 
consistent with) the part of the State's air quality plan that 
addresses pollution from cars and trucks. ``Conformity'' to the SIP 
means that transportation activities will not cause new air quality 
violations, worsen existing violations, or delay timely attainment of 
or reasonable progress towards the NAAQS. If a transportation plan does 
not ``conform,'' most new projects that would expand the capacity of 
roadways cannot go forward. Regulations at 40 CFR part 93 set forth EPA 
policy, criteria, and procedures for demonstrating and ensuring 
conformity of such transportation activities to a SIP.
    When reviewing submitted ``control strategy'' SIPs or maintenance 
plans containing MVEBs, EPA must affirmatively find the MVEB contained 
therein ``adequate'' for use in determining transportation conformity. 
After EPA affirmatively finds the submitted MVEB is adequate for 
transportation conformity purposes, that MVEB can be used by state and 
federal agencies in determining whether proposed transportation 
projects ``conform'' to the SIP as required by section 176(c) of the 
CAA. EPA's substantive criteria for determining ``adequacy'' of a MVEB 
are set out in 40 CFR 93.118(e)(4).
    EPA's process for determining ``adequacy'' consists of three basic 
steps: public notification of a SIP submission, a public comment 
period, and EPA's adequacy finding. This process for determining the 
adequacy of submitted SIP MVEBs was initially outlined in EPA's May 14, 
1999 guidance, ``Conformity Guidance on Implementation of March 2, 
1999, Conformity Court Decision.'' This guidance was finalized in the 
Transportation Conformity Rule Amendments for the ``New 8-Hour Ozone 
and PM2.5 National Ambient Air Quality Standards and Miscellaneous 
Revisions for Existing Areas; Transportation Conformity Rule 
Amendments--Response to Court Decision and Additional Rule Change'' on 
July 1, 2004 (69 FR 40004). EPA consults this guidance and follows this 
rulemaking in making its adequacy determinations.
    The MVEB for the Lancaster Area are listed in Table 1 of this 
document for the 2009 and 2018 years, and are the projected emissions 
for the on-road mobile sources plus any portion of the safety margin 
allocated to the MVEBs. These emission budgets, when approved by EPA, 
must be used for transportation conformity determinations.

B. What Is a Safety Margin?

    A safety margin is the difference between the attainment level of 
emissions (from all sources) and the projected level of emissions (from 
all sources) in the maintenance plan. The attainment level of emissions 
is the level of emissions during one of the years in which the area met 
the NAAQS. The safety margin is the extra emissions that can be 
allocated as long as the total attainment level of emissions is 
maintained. The credit, or a portion thereof, can be allocated to any 
of the source categories. PADEP is at this time preserving the entire 
difference between attainment and projected maintenance year emissions 
to ensure continued maintenance of the standard.

C. Why Are the MVEBs Approvable?

    The 2009 and 2018 MVEBs for the Lancaster Area are approvable 
because the MVEBs for NOX and VOCs continue to maintain the 
total emissions at or below the attainment year inventory levels as 
required by the transportation conformity regulations.

D. What Is the Adequacy and Approval Process for the MVEBs in the 
Lancaster Maintenance Plan?

    The MVEBs for the Lancaster Area maintenance plan are being posted 
to EPA's conformity Web site concurrently with this proposal. The 
public comment period will end at the same time as the public comment 
period for this proposed rule. In this case, EPA is concurrently 
processing the action on the maintenance plan and the adequacy process 
for the MVEBs contained therein. In this proposed rule, EPA is 
proposing to find the MVEBs adequate and also proposing to approve the 
MVEBs as part of the maintenance plan. The MVEBs cannot be used for 
transportation conformity until the maintenance plan and associated 
MVEBs are approved in a final Federal Register notice, or EPA otherwise 
finds the budgets adequate in a separate action following the comment 
period.
    If EPA receives adverse written comments with respect to the 
proposed approval of the Lancaster MVEBs, or any other aspect of our 
proposed approval of this updated maintenance plan, we will respond to 
the comments on the MVEBs in our final action or proceed with the 
adequacy process as a separate action. Our action on the Lancaster Area 
MVEBs will also be announced on EPA's conformity Web site: http://www.epa.gov/otaq/stateresources/transconf/index.htm
 (once there, click 

on ``Adequacy Review of SIP Submissions'').

VIII. Proposed Actions

    EPA is proposing to determine that the Lancaster Area has attained 
the 8-hour ozone NAAQS. EPA is also proposing to approve the 
redesignation of the Lancaster Area from nonattainment to attainment 
for the 8-hour ozone NAAQS. EPA has evaluated Pennsylvania's 
redesignation request and determined that it meets the redesignation 
criteria set forth in section 107(d)(3)(E) of the CAA. EPA believes 
that the redesignation request and monitoring data demonstrate that the 
Lancaster Area has attained the 8-hour ozone standard. The final 
approval of this redesignation request would change the designation of 
the Lancaster Area from nonattainment to attainment for the 8-hour 
ozone standard. EPA is also proposing to approve the associated 
maintenance plan for the Lancaster Area, submitted on September 20, 
2006, and supplemented on November 8, 2006, as a revision to the 
Pennsylvania SIP. EPA is proposing to approve the maintenance plan for 
the Lancaster Area because it meets the requirements of section 175A as 
described previously in this notice. EPA is also proposing to approve 
the 2002 base-year inventory for the Lancaster Area, and the MVEBs 
submitted by Pennsylvania for the Lancaster Area in conjunction with 
its redesignation request. EPA is soliciting public comments on the 
issues discussed in this document. These comments will be considered 
before taking final action.

IX. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed action is not a ``significant regulatory action'' and 
therefore is not subject to review by the Office of Management and 
Budget. For this reason, this action is also not subject to Executive 
Order 13211, ``Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use'' (66 Fed. Reg. 28355 (May 22, 
2001)). This action merely proposes to approve state law as meeting 
Federal requirements and imposes no additional requirements beyond 
those imposed by state law. Accordingly, the Administrator certifies 
that this proposed rule will not have a significant economic impact on 
a substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.). Because this rule proposes to approve pre-
existing requirements under state law and does not impose any 
additional enforceable

[[Page 27276]]

duty beyond that required by state law, it does not contain any 
unfunded mandate or significantly or uniquely affect small governments, 
as described in the Unfunded Mandates Reform Act of 1995 (Public Law 
104-4). This proposed rule also does not have a substantial direct 
effect on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes, 
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
nor will it 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 (64 FR 43255, August 
10, 1999), because it merely proposes to approve a state rule 
implementing a Federal requirement, and does not alter the relationship 
or the distribution of power and responsibilities established in the 
Clean Air Act. This proposed rule also is not subject to Executive 
Order 13045 (62 FR 19885, April 23, 1997), because it approves a State 
rule implementing a Federal standard. In reviewing SIP submissions, 
EPA's role is to approve State choices, provided that they meet the 
criteria of the Clean Air Act. In this context, in the absence of a 
prior existing requirement for the State to use voluntary consensus 
standards (VCS), EPA has no authority to disapprove a SIP submission 
for failure to use VCS. It would thus be inconsistent with applicable 
law for EPA, when it reviews a SIP submission, to use VCS in place of a 
SIP submission that otherwise satisfies the provisions of the Clean Air 
Act. Redesignation is an action that affects the status of a 
geographical area and does not impose any new requirements on sources. 
Thus, the requirements of section 12(d) of the National Technology 
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. 
As required by section 3 of Executive Order 12988 (61 FR 4729, February 
7, 1996), in issuing this proposed rule, EPA has taken the necessary 
steps to eliminate drafting errors and ambiguity, minimize potential 
litigation, and provide a clear legal standard for affected conduct. 
EPA has complied with Executive Order 12630 (53 FR 8859, March 15, 
1988) by examining the takings implications of the rule in accordance 
with the ``Attorney General's Supplemental Guidelines for the 
Evaluation of Risk and Avoidance of Unanticipated Takings'' issued 
under the executive order.
    This rule, proposing to approve the redesignation of the Lancaster 
Area to attainment for the 8-hour ozone NAAQS, the associated 
maintenance plan, the 2002 base-year inventory, and the MVEB identified 
in the maintenance plan, does not impose an information collection 
burden under the provisions of the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.).

List of Subjects

40 CFR Part 52

    Environmental protection, Air pollution control, Nitrogen dioxide, 
Ozone, Reporting and recordkeeping requirements, Volatile organic 
compounds.

40 CFR Part 81

    Air pollution control, National parks, Wilderness areas.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: May 4, 2007.
James W. Newsom,
Acting Regional Administrator, Region III.
 [FR Doc. E7-9296 Filed 5-14-07; 8:45 am]

BILLING CODE 6560-50-P