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FEDERAL REGISTER
VOL. 59, No. 187
Proposed Rules

ENVIRONMENTAL PROTECTION AGENCY (EPA)

40 CFR Parts 52 and 81
[CA-64-1-6504; FRL-5080-5]

Approval and Promulgation of Implementation Plans and Designation of Areas for Air Quality Planning Purposes; State of California; Approval of the Maintenance Plan for the San Francisco Bay Area and Redesignation of the San Francisco Bay Area Ozone Nonattainment Area to Attainment; Approval of Emissions Inventory; Approval of NOx RACT Exemption Petition

59 FR 49361

DATE: Wednesday, September 28, 1994
ACTION: Notice of proposed rulemaking (NPR).

SUMMARY: On November 12, 1993 the California Air Resources Board (CARB) submitted a maintenance plan and a request to redesignate the San Francisco Bay Area ozone nonattainment area from nonattainment to attainment. The ozone nonattainment area includes the following counties: Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano (part), and Sonoma (part). Under the Clean Air Act, nonattainment areas may be redesignated to attainment if sufficient data are available to warrant the redesignation and the area meets the other Clean Air Act redesignation requirements.

In today's action, EPA is proposing to approve the State of California's submittal because it meets the maintenance plan and redesignation requirements. In addition, EPA is proposing to approve the nitrogen oxides (NOx) Reasonably Available Control Technology (RACT) exemption petition submitted by the Bay Area Air Quality Management District (BAAQMD) on April 15, 1994 under section 182(f). Finally, EPA is proposing to expedite the approval of the annual and peak season 1990 inventory of actual ozone precursor emissions required by section 182(a)(1) by parallel processing the emissions inventory.

DATES: Comments must be received by December 27, 1994.

ADDRESSES: Written comments should be addressed to: David P. Howekamp, Director, Air and Toxics Division (A-1), United States Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California, 94105.

Copies of the redesignation request, State submittal and the EPA's technical support document (TSD) are available for public review at the above address and at the California Air Resources Board, 2020 L Street, Sacramento, CA 95814.

FOR FURTHER INFORMATION CONTACT: Wallace Woo, Chief, Plans Development Section (A-2-2), Air Planning Branch, United States Environmental Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, California, 94105, (415) 744-1207.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background.
II. Evaluation Criteria.
III. Review of State Submittal.
1. Attainment of the Standard
A. The Ozone Standard
B. The BAAQMD Monitoring Record
C. The Alum Rock Monitor
2. Meeting the Applicable Requirements of Section 110 and Part D
A. Section 110 Requirements
B. Part D Requirements
B1. Subpart 1 of Part D-Section 172(c) Plan Provisions
B2. Subpart 1 of Part D-Section 176(c) Conformity Plan Provisions
B3. Subpart 2 of Part D-Sections 182(a) and 182(b) Requirements
B4. Section 182(f) NOx RACT Exemption Petition
a. Section 182(f) Requirements and Exemption Provisions
b. BAAQMD NOx RACT Exemption Petition
c. Proposed Action
3. Fully Approved SIP Under Section 110(k) of the Act
4. Improvement in Air Quality Due to Permanent and Enforceable Measures
5. Fully Approved Maintenance Plan Under Section 175A
5A. Emission Inventory-Base Year Inventory
5B. Demonstration of Maintenance-Projected Inventories
5C. Verification of Continued Attainment
5D. Contingency Plan
5E. Subsequent Maintenance Plan Revisions
IV. Potential Impact of California FIP and SIPs
V. Conclusion

I. Background

The Clean Air Act, as amended in 1977 (1977 Act) required areas that were designated nonattainment based on a failure to meet the ozone national ambient air quality standard (NAAQS) to develop SIPs with sufficient control measures to expeditiously attain and maintain the standard. The San Francisco Bay Area was designated under section 107 of the 1977 Act as nonattainment with respect to the ozone NAAQS on March 3, 1978 (40 CFR 81.305). In accordance with section 110 of the 1977 Act, the California Air Resources Board (CARB) submitted an ozone SIP as required by part D of the 1977 Act on July 25, 1979, which EPA took final action to approve in part, disapprove in part (lack of legal authority and legislation to implement an inspection and maintenance (I/M) program) and conditionally approve in part (resource and extension requirements for transportation control measures with respect to part D) on March 19, 1982 (47 FR 11866) with respect to the requirements of section 110 and part D of the 1977 Act. On July 26, 1983, CARB submitted the legislation and implementation schedule for an I/M program which EPA fully approved on November 25, 1983 (48 FR 53114). This approval rescinded EPA's earlier disapproval of the San Francisco Bay Area's SIP. On February 4, 1983, CARB submitted a SIP revision for the San Francisco Bay Area which projected attainment of the ozone and carbon monoxide NAAQS by 1987. EPA published final approval of this SIP revision and removed the earlier conditional approval for the San Francisco Bay Area on December 28, 1983 (48 FR 57130). In its SIP, CARB projected that the San Francisco Bay Area nonattainment area would attain the ozone standard by 1987. The area failed to attain the standard.

In a May 26, 1988 letter, EPA issued a finding under section 110(a)(2)(H) of the Clean Air Act (the 1988 SIP-Call) that California's SIP for the San Francisco Bay Area was substantially inadequate to attain and maintain the NAAQS for ozone and carbon monoxide. This finding called on California to begin a two phase process which would lead to the revision of the plans. The first phase consisted of updating the emissions inventory, making certain corrections to the area's existing stationary source rules, and beginning to gather other pertinent data by August 1988. The second phase consisted of submitting a revised SIP containing changes necessary to attain the NAAQS. On June 13, 1989, EPA notified California that the deadline for the second phase of this SIP-Call was September 30, 1991.

On November 15, 1990, the Clean Air Act Amendments of 1990 were enacted. Public Law 101-549, 104 Stat. 2399, codified at 42 U.S.C. 7401-7671q. The ozone nonattainment designation for the San Francisco Bay Area continued by operation of law according to section 107(d)(1)(C)(i) of the Clean Air Act, as amended in 1990; furthermore, the area was classified by operation of law as moderate for ozone under section 181(a)(1). See 56 FR 56694 (Nov. 6, 1991), codified at 40 CFR 81.305. In a September 5, 1991 letter, EPA notified California that earlier deadlines for the SIP-Call were revised to conform with the requirements of the Clean Air Act Amendments of 1990.

The BAAQMD more recently has collected ambient monitoring data that show no violations of the ozone NAAQS (See discussion in Section III.1 below). Accordingly, on November 12, 1993 California requested redesignation of the area to attainment with respect to the ozone NAAQS and submitted an ozone maintenance SIP for the San Francisco Bay Area. The three co-lead agencies in the San Francisco Bay Area under section 174 of the Act, the BAAQMD, the Metropolitan Transportation Commission (MTC), and the Association of Bay Area Governments (ABAG), delegated authority to the Joint Air Quality Policy Committee (JAQPC), which is composed of representative board members from the three co-lead agencies, to hold a joint agency public hearing on the redesignation request and maintenance plan. On August 18, 1993, JAQPC held a public hearing on the redesignation request and maintenance plan. The plan and redesignation request were subsequently adopted by the BAAQMD, MTC and ABAG on September 1, 1993, September 22, 1993 and September 16, 1993, respectively, at regularly scheduled agency board meetings.

All SIP submittals to EPA must meet certain minimum administrative and technical criteria as set forth in 40 CFR part 51, appendix V (the "completeness" criteria) in order for the Administrator to review and take action on the submittal. Section 110(k)(1) of the Act describes the mandatory timeframe for EPA's determination of completeness and rulemaking action on plan submissions. In accordance with section 110(k)(1)(B) of the Act, the San Francisco Bay Area's ozone redesignation request and maintenance plan was deemed complete by operation of law on May 12, 1994. Thus, the submittal is considered complete as of November 12, 1993, the date it was submitted.

On July 21, 1994, CARB sent a letter to EPA requesting "parallel processing" of certain revisions to the San Francisco Bay Area's ozone maintenance plan and SIP, including new contingency measures in the maintenance plan, a 1990 emissions inventory, emission statement rule, new source review rule, and amendments to various VOC RACT regulations. The parallel processing request contained draft copies of the SIP revisions that the BAAQMD will adopt this year. The parallel processing provision of 40 CFR part 51, appendix V allows EPA to propose action on the draft revisions prior to submission of the locally adopted SIP revision by the State. At the time of final EPA action, the complete revisions must be submitted to EPA by the State.

II. Evaluation Criteria

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

III. Review of State Submittal

The California redesignation request for the San Francisco Bay Area meets the five requirements of section 107(d)(3)(E), noted above. Following is a brief description of how the State has fulfilled each of these requirements. EPA's technical support document (TSD) contains a more detailed analysis of the submittal with respect to certain of these evaluation criteria.

1. Attainment of the Ozone NAAQS

A. The Ozone Standard

Attainment of the ozone NAAQS is determined based on the expected number of exceedances in a calendar year. The method for determining attainment of the ozone NAAQS is contained in 40 CFR 50.9 and appendix H to that section. The simplest method by which expected exceedances are calculated is by averaging actual exceedances at each monitoring site over a three year period. An area is in attainment of the standard if this average results in expected exceedances for each monitoring site of 1.0 or less per calendar year. When a valid daily maximum hourly average value is not available for each required monitoring day during the year, these missing days must be accounted for when estimating exceedances for the year. Appendix H provides the formula used to estimate the expected number of exceedances for each year.

B. The BAAQMD Monitoring Data

The State of California's request is based on an analysis of quality-assured ozone air quality data which is relevant to both the maintenance plan and to the redesignation request. This data comes from the BAAQMD State and Local Air Monitoring Station (SLAMS) network which is comprised of 23 monitoring stations.

The request is based on ambient air ozone monitoring data for calendar years 1990 through 1992. This data clearly shows an expected exceedance rate for the ozone standard of less than 1.0 per year for 22 of the 23 monitors, including each of the monitors on which the nonattainment designation was based. The exception is the Alum Rock monitor, discussed below, which is a monitoring site that was established during the 1992 ozone season. As described below, the Alum Rock monitoring site recorded one exceedance of the ozone NAAQS in 1992, but EPA believes that due to the circumstances of the timing of the establishment of the site, the best estimate of the expected exceedance rate for this monitoring site leads to the conclusion that the San Francisco Bay Area achieved the ozone NAAQS during the 1990-1992 period.

C. The Alum Rock Monitor

The original Alum Rock monitoring site was located at a fire station in the northeast portion of San Jose. The BAAQMD lost its lease to this monitoring site in October 1990. Prior to its forced closure, the site had not recorded any exceedances of the standard since 1987. A new Alum Rock monitoring location was established in August 1992. This monitor recorded an exceedance of the ozone NAAQS on September 26, 1992. The actual monitored value was 0.125 ppm, the lowest possible measured value which would be considered an exceedance of the ozone NAAQS.

Because the site was operated for only five months during 1992, there is a large gap in data for the new site for 1992. Appendix H contains a formula for estimating the number of exceedances for a year when there is missing data. Normally, for an established site with two previous years of monitoring data, this number would be added to the number of exceedances for the two previous years and averaged to yield an expected exceedance per year. However, because the new site was established at a nearby but different location, it must be considered to be a different site. For this reason, the estimated exceedances for 1992 cannot be averaged over the three year period from 1990 through 1992. Therefore, while an expected annual exceedance rate can be calculated for the Alum Rock site, the lack of three complete years of data introduces uncertainties into the calculation using the formula contained in appendix H.

Appendix H does not explicitly address the situation where a new site starts up and collects data for only a portion of the calendar year. However, this situation has been addressed in an EPA memorandum, "Ozone and Carbon Monoxide Design Value Calculations," William Laxton, Director, Technical Support Division, OAQPS, June 18, 1990 (Laxton memo). The memo recognizes the disincentive created by applying the estimated exceedance calculation for missing data to new sites. The missing data penalty created by the calculation is designed to encourage prompt repair or replacement of monitors, rather than to discourage air pollution control agencies from installing new monitoring sites in excess of the number required by 40 CFR part 58. For this reason, the Laxton memo essentially allows an agency which installs a new monitoring site to base the estimated exceedance calculation for the initial year on the portion of the year following start-up of the monitor. Based on the underlying reasoning of the Laxton memo and the fact that there were no exceedances at any of the 22 established monitoring sites during June, July and August of 1992, EPA calculated expected exceedances for the new Alum Rock site using data from August 24, 1992, the date on which the new Alum Rock monitoring site was established, through the end of December 1992. That calculation results in an estimated expected exceedance calculation of 1.0 exceedances for 1992. EPA believes that, in light of the uncertainties attendant to the lack of three full years of data from the Alum Rock monitor, this calculation represents the "best estimate" of the expected exceedance rate for the Alum Rock monitor in 1992 and leads to the conclusion that, in all likelihood, the San Francisco Bay Area achieved attainment during the 1990-1992 period. The lack of any monitored exceedances at any of the other monitors in the San Francisco Bay Area's extensive SLAMs network during the June-August 1992 period provides additional support for EPA's belief that this calculation represents the best estimate of expected exceedances at the Alum Rock site.

EPA notes that monitoring at Alum Rock following the end of 1992 continues to show attainment. This provides further support for the conclusion that the best estimate of expected exceedances at the Alum Rock site for 1992 is 1.0.

D. Demonstration of Attainment

In sum, while some uncertainty attaches to the monitoring data from the Alum Rock site established in August 1992, EPA believes that the data submitted by the BAAQMD provides an adequate demonstration that the San Francisco Bay Area attained the ozone NAAQS during the 1990-1992 period. Moreover, monitoring data from all sites in the Bay Area SLAMs network continues to show attainment in 1993 and so far in 1994.

In order for EPA to take final action approving the San Francisco Bay Area redesignation request, monitoring data from all 23 sites in the BAAQMD's SLAMs network must continue to demonstrate attainment up to the time of final action. Thus, EPA proposes to approve the San Francisco Bay Area redesignation only if the monitoring data from the entire SLAMs network continues to demonstrate attainment. If the monitoring data records a violation of the NAAQS before final action is taken on this proposal, the proposed approval of the redesignation will be withdrawn and a proposed disapproval substituted for the proposed approval.

In addition to the demonstration discussed above, EPA required completion of air network monitoring requirements set forth in 40 CFR part 58. This included a quality assurance plan revision and a monitoring network review to determine the adequacy of the ozone monitoring network. The BAAQMD fulfilled these requirements to complete documentation for the air quality demonstration. The BAAQMD has also committed to continue monitoring in this area in accordance with 40 CFR part 58.

EPA agreed with the BAAQMD recommendation in its network review concerning the need for one additional ozone monitor in the area south of San Jose. As a result, the BAAQMD established an additional State and Local Air Monitoring Site (SLAMS) at the San Martin site in Santa Clara County in April 1994. EPA will review data from this new monitoring station as part of its review of the 1994 ozone season.

2. Meeting Applicable Requirements of Section 110 and Part D

On December 28, 1983 (48 FR 57130), EPA fully approved California's SIP for the San Francisco Bay Area as meeting the requirements of section 110(a)(2) and part D of the 1977 Act, with the exception of the I/M program which was approved on November 25, 1983 (48 FR 53114) and committed to specific implementation schedules for the San Francisco Bay Area. The amended Act, however, modified section 110(a)(2) and, under part D, revised section 172 and added new requirements for all nonattainment areas. Therefore, for purposes of redesignation, to meet the requirement that the SIP contain all applicable requirements under the Act, EPA has reviewed the SIP to ensure that it contains all measures that were due under the amended Act prior to or at the time the State submitted its redesignation request, as set forth in EPA policy. n1 EPA interprets section 107(d)(3)(E)(v) of the Act to mean that, for a redesignation request to be approved, the State must have met all requirements that applied to the subject area prior to or at the same time as the submission of a complete redesignation request. Requirements of the Act that come due subsequently continue to be applicable to the area at later dates (see section 175A(c)) and, if redesignation of any of the areas is disapproved, the State remains obligated to fulfill those requirements. These requirements are discussed below.

n1 "Procedures for Processing Requests to Redesignate Areas to Attainment," John Calcagni, Director, Air Quality Management Division, September 4, 1992. "State Implementation Plan (SIP) Actions Submitted in Response to Clean Air Act (CAA) Deadlines," John Calcagni, Director, Air Quality Management Division, October 28, 1992. "State Implementation Plan (SIP) Requirements for Areas Submitted Requests for Redesignation to Attainment of the Ozone and Carbon Monoxide (CO) National Ambient Air Quality Standards (NAAQS) on or after November 15, 1992," Michael H. Shapiro, Acting Assistant Administrator, September 17, 1993.

As discussed earlier in this document, all of the SIP requirements must be met by the BAAQMD and approved by EPA into the SIP prior to final action on the redesignation request. In the event that these requirements are not met, EPA proposes in the alternative to disapprove the redesignation request. Based on CARB's July 21, 1994 letter to EPA, EPA is "parallel processing" certain SIP revisions in this document (contingency measures and 1990 emission inventory) and will address the other requirements (VOC RACT regulations, emission statement rule, new source review) in a separate Federal Register document prior to final action on this revision. EPA's decision to parallel process the locally adopted contingency measures and 1990 emissions inventory reflect EPA's positive technical and administrative review. An EPA letter dated August 25, 1994 (Howekamp, EPA, to Boyd, CARB) finds the revised baseyear inventory complete (for parallel processing purposes) and rescinds the April 13, 1993 finding of incompleteness for the emission inventory. An approvability review was performed separately by EPA.

A. Section 110 Requirements

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

B. Part D Requirements

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

B.1. Subpart 1 of part D-Section 172(c) Plan Provisions. Under section 172(b), the Administrator established that States containing nonattainment areas shall submit a plan or plan revision meeting the applicable requirements of section 172(c) no later than three years after an area is designated as nonattainment, i.e., unless EPA establishes an earlier date. EPA has determined that the section 172(c)(2) reasonable further progress (RFP) (with parallel requirements for a moderate ozone nonattainment area under subpart 2 of part D, due November 15, 1993) was not applicable at the time the State of California submitted the San Francisco Bay Area redesignation request on November 12, 1993. Also, the 172(c)(9) contingency measures and additional 172(c)(1) non-RACT reasonable available control measures (RACM) beyond what may already be required in the SIP are no longer necessary, since no earlier date was set for these measures and as RFP was not due until November 15, 1993. As discussed below in section B3., subpart 2 of part D, the BAAQMD is in the process of revising certain VOC RACT rules to meet the Clean Air Act requirements.

The 172(c)(3) emissions inventory requirement has been met by the submission and proposed approval of the 1990 base year inventory required under subpart 2 of part D, section 182(a)(1).

As for the 172(c)(5) NSR requirement, once an area is redesignated to attainment, this requirement is no longer applicable. The area then becomes subject to prevention of significant deterioration (PSD) requirements in lieu of the NSR program (57 FR 13564). Currently, the San Francisco Bay Area is amending its NSR rule to comply with the provisions of the 1990 Clean Air Act amendments. Prior to final action on the redesignation request and maintenance plan, EPA will take final rulemaking action on the BAAQMD's NSR program with respect to the ozone requirements of sections 182(a)(2)(C) and 182(b)(5) in a separate Federal Register document. Upon redesignation to attainment, BAAQMD will continue with NSR permitting until such time as BAAQMD requests delegation of the PSD program for VOC. At that time, the nonattainment area requirements of the BAAQMD's NSR program will be placed in the contingency plan. See the TSD accompanying this notice for a detailed discussion of the NSR requirements and deficiencies in the current regulation.

Finally, for purposes of redesignation, the San Francisco Bay Area SIP was reviewed to ensure that all requirements of section 110(a)(2), containing general SIP elements, under the Act were satisfied. Title 40 CFR 52.220 evidences that the San Francisco Bay Area SIP was approved under section 110 of the Act, and further that it satisfies all applicable part D, title I requirements with the exception of the outstanding part D requirements for the ozone SIP, mentioned above.

B.2. Subpart 1 of Part D- Section 176 Conformity Plan Provisions. Section 176(c) of the Act requires States to revise their SIPs to establish criteria and procedures to ensure that Federal actions, before they are taken, conform to the air quality planning goals in the applicable State SIP. The requirement to determine conformity applies to transportation plans, programs and projects developed, funded, or approved under title 23 U.S.C. or the Federal Transit Act ("transportation conformity"), as well as to all other Federal actions ("general conformity"). Section 176 further provides that the conformity revisions to be submitted by the States must be consistent with Federal conformity regulations that the Act required EPA to promulgate. Congress provided for the State revisions to be submitted one year after the date for promulgation of final EPA conformity regulations. When that date passed without such promulgation, EPA's General Preamble for the Implementation of title I informed the State that its conformity regulations would establish a submittal date (see 57 FR 13498, 13557, (April 16, 1992)).

The EPA promulgated final transportation conformity regulations on November 24, 1993 (58 FR 62118) and general conformity regulations on November 30, 1993 (58 FR 63214).

These conformity rules require that States adopt both transportation and general conformity provisions in the SIP for areas designated nonattainment or subject to a maintenance plan approved under CAA section 175A. Pursuant to 40 CFR 51.396 of the transportation conformity rule and 40 CFR 51.851 of the general conformity rule, the State of California is required to submit a SIP revision containing transportation conformity criteria and procedures consistent with those established in the Federal rule by November 25, 1994. Similarly, California is required to submit a SIP revision containing general conformity criteria and procedures consistent with those established in the Federal rule by December 1, 1994. Because the deadlines for these submittals have not yet come due, they are not applicable requirements under section 107(d)(3)(E)(v) and, thus, do not affect approval of this redesignation request.

Moreover, the BAAQMD has committed to revise its SIP to be consistent with the final Federal regulations on conformity by the applicable November 1994 deadlines (see 40 CFR 51.396(a) and 51.851(a), November 24, 1993 (58 FR 62218) and November 30, 1993 (58 FR 63247), respectively).

B.3. Subpart 2 of Part D-Section 182(a) and 182(b) Requirements. The San Francisco Bay Area is a moderate ozone nonattainment area. Under subpart 2 of part D, such areas must meet the requirements for marginal areas under section 182(a)(1) as well as the requirements for moderate areas contained in section 182(b). As discussed in section 2.B.2. above, for purposes of section 107(d)(3)(E)(v), the San Francisco Bay Area must meet only those requirements of sections 182 (a) and (b) which were due prior to or at the time of the submittal of a complete redesignation request. The BAAQMD has met the requirements of section 182 with the exception of VOC RACT rule corrections, the emissions statement rule, and the NSR rule corrections.

At the request of the CARB, EPA will parallel process the SIP revisions required pursuant to section 182(a) and (b) in a separate Federal Register notice before final action on the redesignation request and maintenance plan (See letter dated July 21, 1994 from James D. Boyd, Executive Officer, CARB to Felicia Marcus, Regional Administrator, EPA).

The CARB submitted a 1990 emissions inventory of ozone precursors as required by section 182(a)(1) on November 12, 1992. On November 18, 1993 the CARB submitted a revised 1990 emissions inventory of ozone precursors which EPA found incomplete on April 13, 1994 because the emissions inventory had not gone through an adequate public notice and hearing process. To correct the deficiency, the BAAQMD held a public hearing on July 29, 1994 (which was the maintenance plan 1990 attainment inventory submitted on November 12, 1993) and will submit the appropriate documentation to EPA. Through this document, EPA also proposes to approve the 1990 emissions inventory as required by section 182(a)(1).

Currently, the BAAQMD is in the process of amending certain VOC RACT regulations required by sections 182(a)(2)(A) and 182(b)(2) which EPA must fully approve into the SIP prior to final action on the redesignation request and maintenance plan. n2 The following is a list of the deficient VOC RACT regulations:

n2 EPA has received all of the VOC RACT rules required by section 182(a), but the rules do not meet all of EPA requirements for full approval. EPA has met extensively with the BAAQMD to discuss specific revisions to correct RACT deficiencies. EPA is unable to make a definitive determination on the approvability of these rules until EPA receives and reviews the formal SIP revision from the CARB.

Rule No.    Rule title 

8-1         General Provisions. 
8-2         Miscellaneous Operations. 
8-4         General Solvent & Surface Coating Operations. 
8-7         Gasoline Dispensing Facilities. 
8-8         Wastewater (Oil-Water) Separators. 
8-11        Metal Container Closure and Coil Coating. 
8-12        Paper, Fabric, and Film Coating. 
8-13        Light and Medium Duty Motor Vehicle Assembly Plants. 
8-14        Surface Coating of Large Appliance and Metal Furniture. 
8-15        Emulsified and Liquid Asphalts. 
8-16        Solvent Cleaning Operations. 
8-19        Surface Coating of Miscellaneous Metal Parts and Products. 
8-20        Graphic Arts Printing and Coating Operations. 
8-22        Valves and Flanges at Chemical Plants. 
8-23        Coating of Flat Wood Paneling and Wood Flat Stock. 
8-24        Pharmaceutical and Cosmetic Manufacturing Operations. 
8-25        Pump and Compressor Seals at Petroleum Refineries, Chemical Plants, 
Bulk Plants, and Bulk Terminals. 
8-28        Pressure Relief Valves at Petroleum Refineries and Chemical Plants. 
8-29        Aerospace Assembly and Component Coating Operations. 
8-30        Semiconductor Manufacturing Operations. 
8-31        Surface Coating of Plastic Parts and Products. 
8-32        Wood Product Coatings. 
8-33        Gasoline Bulk Terminals and Gasoline Delivery Vehicles. 
8-34        Solid Waste Disposal Sites. 
8-35        Coating, Ink, and Adhesive Manufacturing. 
8-38        Flexible and Rigid Disk Manufacturing. 
8-39        Gasoline Bulk Plants and Gasoline Delivery Vehicles. 
8-40        Aeration of Contaminated Soil. 
8-41        Vegetable Oil Manufacturing Operations. 
8-42        Large Commercial Bakeries. 
8-43        Surface Coating of Marine Vessels. 
8-45        Motor Vehicle and Mobile Equipment Coating Operations. 
8-47        Air Stripping and Soil Vapor Extraction Operations. 
8-50        Polyester Resin Operations. 

Upon EPA's final approval of these rules and the other corrections noted above, the BAAQMD will have met the applicable requirements of the Act.

B4. Section 182(f) NOx RACT Exemption Petition-a. Section 182(f) Requirements and Exemption Provisions. Section 182(f) of the Act requires that the same ozone provisions that apply to major stationary sources of VOC under subpart 2 of Part D also apply to major stationary sources of NOx. Areas designated nonattainment of the NAAQS for ozone, and classified as moderate nonattainment or above, are required to adopt RACT rules for major stationary sources of NOx and to provide for nonattainment area new source review (NSR) for new sources and modifications that are major for NOx. Section 182(f) provides further that these requirements do not apply if EPA determines that additional NOx reductions would not contribute to attainment of the NAAQS, for areas outside the ozone transport region (OTR). Any person (including a state) may petition EPA to make such a finding. EPA guidance interpreting the section 182(f) exemption provisions provides that a state may submit an exemption petition based on three consecutive years of air quality monitoring data showing attainment of the ozone NAAQS.

EPA's NOx exemption policy is contained in several memoranda n3 providing that under section 182(f)(1)(A), an exemption from the NOx requirements may be granted for nonattainment areas outside the OTR if EPA determines that additional reductions of NOx would not contribute to attainment of the NAAQS for those areas. In cases where a nonattainment area is demonstrating attainment with three consecutive years of air quality monitoring data, without having implemented the section 182(f) NOx provisions, it is clear that the "contribute to attainment" test is met. Thus, a State may submit a petition for a section 182(f) exemption based on air quality monitoring data.

n3 Michael H. Shapiro, Acting Assistant Administrator for Air and Radiation, issued on September 17, 1993, entitled "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", and, "Guideline for Determining the Applicability of Nitrogen Oxide Requirements under Section 182(f)," from John Seitz, Director, Office of Air Quality Planning and Standards, to the Regional Division Directors, December 16, 1993, and a subsequent revision to portions of these memoranda from John S. Seitz, Director of EPA's Office of Air Quality Planning and Standards, issued on May 27, 1994, entitled, "Section 182(f) Nitrogen Oxides (NOx) Exemptions-Revised Process and Criteria".

Pursuant to section 182(f)(1) of the Act, the exemption guidance outlines circumstances under which EPA would determine whether the new NOx requirements would be limited or would not apply. For areas that did not implement the section 182(f) NOx requirements but did attain the ozone standard, as demonstrated by ambient monitoring data, it is clear that the additional NOx reductions required by section 182(f) would not contribute to attainment, although they might contribute to maintenance. In addition, EPA has not received a demonstration that the NOx exemption would interfere with attainment or maintenance in downwind areas. (See discussion below in IV. Potential Impact of California Federal Implementation Plan and State Implementation Plan.)

EPA's conformity rules n4, , n5 also reference the section 182(f) exemption process as a means for exempting affected areas from NOx conformity requirements. Therefore, ozone nonattainment areas that are granted areawide section 182(f) exemptions under this approach will also be exempt from the NOx conformity requirements.

n4 "Criteria and Procedures for Determining Conformity to State or Federal Implementation Plans or Transportation Plans, Programs, and Projects Funded or Approved under Title 23 U.S.C. of the Federal Transit Act", November 24, 1993 (58 FR 62188).

n5 "Determining Conformity of General Federal Actions to State or Federal Implementation Plans; Final Rule", November 30, 1993 (58 FR 63214).

b. BAAQMD NOx RACT Exemption Petition. On April 21, 1993, EPA notified the Governor of California of a finding that the State failed to submit the NOx RACT provisions by November 15, 1992 as required by section 182(f). On April 15, 1994, the BAAQMD submitted a petition to EPA requesting that the San Francisco Bay Area ozone nonattainment area be exempted from the requirement to implement NOx RACT controls pursuant to section 182(f) of the Act. A successful exemption demonstration or a complete submittal of the NOx RACT rules would cure this deficiency.

The BAAQMD has not implemented NOx RACT and has submitted monitoring data as part of its redesignation request to demonstrate attainment of the standard. As discussed above, the BAAQMD has monitoring data showing that the area attained the ozone NAAQS since the 1990-1992 timeframe. See section III.1. of this notice for a detailed discussion of the ozone air quality monitoring data.

c. Proposed Action. The EPA proposes to grant the BAAQMD section 182(f) NOx RACT exemption petition based upon the evidence provided by the BAAQMD and the BAAQMD's compliance with the requirements outlined in EPA's section 182(f) exemption guidance. The final approval of this proposed action would exempt the San Francisco Bay Area from the requirements to implement the NOx RACT requirements and the applicable general and transportation conformity provisions for NOx. However, the NOx RACT control measures are included as contingency measures in the San Francisco Bay Area's maintenance plan (See discussion below, 5E. Contingency Plan).

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

In order for EPA to take final action approving the redesignation request and maintenance plan, the San Francisco Bay Area must have a fully approved SIP under section 110(k), which also meets the applicable requirements of section 110 and Part D. As discussed in Section 2.A. above, EPA approved numerous provisions of the San Francisco Bay Area SIP under the pre-amended Act and finds that these provisions meet the requirements of section 110(a)(2). In addition, EPA will take action on the following SIP revisions prior to taking final action on the redesignation request and maintenance plan: VOC RACT rules, NSR rule, and the emission statement rule. Also, EPA is proposing to approve the emissions inventory as required by section 182(a)(1) through this document. Assuming that these SIP revisions meet all requirements for approval, EPA will undertake rulemaking to approve them. Once EPA approves these revisions, the San Francisco Bay Area will have fulfilled the requirement to have a fully approved SIP under section 110(k).

The proposed approval of the redesignation request is contingent upon the BAAQMD fulfilling the requirements of sections 173 and 182 discussed above prior to final rulemaking. In the alternative, if the requirements are not fulfilled, EPA must disapprove the redesignation request for the San Francisco Bay Area.

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

Under the pre-amended Act, EPA approved California's SIP control strategy for the San Francisco Bay Area nonattainment area, satisfied that the rules and the emission reductions achieved as a result of those rules were enforceable. Since enactment of the amended Act, the State has made additional submittals as identified in section 182(b) above. In addition, EPA finds that the measures listed below contribute to the permanence and enforceability of reductions in ambient ozone levels in the San Francisco Bay Area.

Selected control measures fn 1  BAAQMD reg 8  Emission rule #        reductions 
1987- 
                                             1990 VOC (TPD) 

Stationary Sources: 
Architectural Coatings          3             1.8 
Emulsified and Liquid Asphalts  15            2.0 
Solvent Cleaning Operations     16            0.8 
Valves and Flanges at Petroleum 18            1.4 
Refinery Complexes 
Graphic Arts Printing and       20            0.7 
Coating Operations 
Pump and Compressor Seals at    25            1.1 
Petroleum Refineries 
Solid Waste Disposal Sites      34            3.1 
Natural Gas and Crude Oil       37            0.6 
Production Refineries 
Motor Vehicles and Mobile       45            0.6 
Equipment Coating Operations 
Marine Tank Vessel to Marine    46            0.5 
Tank Vessel Loading 
Aerosol Paint Coatings          49            0.8 
Stationary Sources Subtotal                   13.4 

Mobile Sources: 
ARB Motor Vehicle Program       n/a           56 
(including Basic I/M) 

Total                                         69 

fn 1 Control Measures achieving at least 0.5 TPD reduction of VOC between 1987 
and 1990. 

The actual reduction in VOC emissions from 1987 to 1990 was 61 TPD which reflects growth in emissions from some sources and reductions in emissions due to all control measures.

In association with its emission inventory discussed in Section 5.A. below, the State demonstrated that point source VOC emissions were not artificially low due to local economic downturn. The BAAQMD included trend data for vehicle miles traveled (VMT) and employment in the maintenance plan to demonstrate that attainment was not due to economic downturn. These trend data indicate that neither VMT growth nor daily VMT actually decreased during the attainment period. In addition, using employment data as an indicator for stationary source emissions, the BAAQMD demonstrated a modest decrease during the calendar years 1991 and 1992. The overall effect on the stationary source inventory should have been less than a 2% reduction, not enough to significantly affect the San Francisco Bay Area's attainment of the ozone NAAQS. EPA finds that the combination of existing EPA-approved SIP and Federal measures contribute to the permanence and enforceability of reductions in ambient ozone levels that have allowed the area to attain the NAAQS.

5. Fully Approved Maintenance Plan Under Section 175A

In today's document, EPA is proposing approval of the State's maintenance plan for the San Francisco Bay Area because EPA finds that the BAAQMD's submittal meets the requirements of section 175A. If EPA determines after public notice and comment that it should give final approval to the maintenance plan, the San Francisco Bay Area nonattainment area will have a fully approved maintenance plan in accordance with section 175A. Section 175A of the Act sets forth the elements of a maintenance plan for areas seeking redesignation from nonattainment to attainment. The plan must demonstrate continued attainment of the applicable NAAQS for at least ten years after the Administrator approves a redesignation to attainment. Eight years after the redesignation, the State must submit a revised maintenance plan which demonstrates attainment for the ten years following the initial ten-year period. To provide for the possibility of future NAAQS violations, the maintenance plan must contain contingency measures, with a schedule for implementation, adequate to assure prompt correction of any air quality problems. Each of the section 175A plan requirements is discussed below.

5.A. Emissions Inventory-Base Year Inventory. The BAAQMD adopted comprehensive inventories of VOC, NOx, and CO emissions from area, stationary, and mobile sources using 1990 as the base year for calculations to demonstrate maintenance of the ozone NAAQS. EPA has determined that 1990 is an appropriate year on which to base attainment level emissions because EPA policy allows States to select any one of the three years in the attainment period as the attainment year inventory. n6

n6 "Procedures for Processing Requests to Redesignate Areas to Attainment," John Calcagni, Director, Air Quality Management Division, September 4, 1992.

CARB originally submitted the annual and peak ozone season 1990 comprehensive inventories of actual emissions as a SIP revision on November 12, 1992, and revised them in a submission dated November 18, 1993. CARB also submitted the San Francisco Bay Area's ozone maintenance plan on November 12, 1993 which contained a comprehensive 1990 emission inventory. EPA policy (September 29, 1992, Calcagni and Laxton) allows the public hearing and adoption of the 1990 base year inventories to occur with the first related regulatory submittal. CARB developed the inventories to meet the requirements of sections 172(c)(3) and 182(a)(1), in accordance with EPA guidance.

The State submittal contains the detailed inventory data and summaries by county and source category. The BAAQMD provided the stationary source estimates, based on source test and mass balance computations, as required for annual permit renewal. The CARB and BAAQMD generated area source emissions for each source category based on emission and activity factors for each county in the nonattainment area. These factors are cited or their sources referenced in Methods for Assessing Area Source Emissions in California, California Air Resources Board, September 1991.

CARB based on-road mobile source emission and activity estimates on CARB's EMFAC7F and BURDEN7C models, respectively. Different emission factors and activity rates apply to each type of vehicle, roadway, and road condition. Vehicle mix and age data from vehicle registration vary within each county. Off-road engine estimates were derived from both State and local sources, as cited in the area source document, referenced above. The CARB derived VMT estimates from a mix of the California "Highway Performance Monitoring System" (HPMS) and local surveys. Actual, as opposed to allowable, emission estimates were used for all source categories.

The comprehensive base year emissions inventory discussed above has been entered into the Aerometric Information Retrieval System (AIRS). AIRS is EPA's computerized data storage system for air quality and emission source data. EPA, under contract with Radian Corporation, has entered the base year emissions inventory of stationary sources into AIRS and has also prepared computer software to convert the California Emission Data System stationary source data to AIRS/AFS format for entry into AIRS. California is responsible for entering 1990 area and mobile source (AMS) data into AIRS by October 1994, according to a fiscal year 1994 Clean Air Act section 105 air program grant agreement. EPA's TSD contains a more detailed analysis of the base year inventory for the San Francisco Bay Area.

On April 13, 1994, EPA found the 1990 base year inventory submission incomplete for lack of adequate public notice and adoption. Instead of adopting the November 12, 1992 and November 18, 1993 base year inventories as submitted by CARB, the BAAQMD held a public hearing on a revised 1990 base year inventory on July 29, 1994 which was the attainment inventory submitted as part of the maintenance plan. The State requested parallel processing of this revised emissions inventory to fulfill section 182(a)(1). Based on the State's parallel processing request and submission of associated documentation, EPA rescinded the finding of incompleteness in an EPA letter dated August 25, 1994 to CARB (Howekamp, EPA to Boyd, CARB).

Following is a table of the revised average peak ozone season weekday VOC and NOx emissions for the biogenic and major anthropogenic source categories for 1990 (the attainment year inventory, 1995, 2000, and 2005.

VOC Emission Inventory Summary fn 1 (Tons Per Day) 

                     1990       1995       2000       2005 

Point                 78         73         75         77 
Area                  173        154        141        141 
Mobile On-Road        300        204        142        104 
Mobile Non-Road       81         85         82         84 
Anthropogenic Total   631        515        440        406 
Biogenics             300        300        300        300 

Total                 931        815        740        706 

fn 1 Entries are rounded to the nearest whole number. Totals may not equal to 
sum of column entries. 

NOx  Emission Inventory Summary fn 1 (Tons Per Day) 

                   1990       1995       2000       2005 

Point               131        130        141        146 
Area                15         16         17         18 
Mobile On-Road      251        194        166        158 
Mobile Non-Road     159        164        176        186 

Total               557        504        499        508 

fn 1 Entries are rounded to the nearest whole number, totals may not equal to 
sum of column entries. 

The BAAQMD provided EPA with the appropriate documentation for technical (Base Year 1990 Emission Inventory-Source Category Methodologies) and administrative requirements. The revised VOC and NOx inventories are 3.4 and 13.5 percent lower, respectively, than the reactive organic compound (ROG) and NOx inventories previously submitted by the State. The primary reason for the difference between the inventories is the use of the BURDEN7F model in place of the BURDEN7C model to estimate vehicular emissions. In addition, ROG inventories include ethane, which are approximately 4 percent higher than VOC inventories.

5.B. Demonstration of Maintenance-Projected Inventories. The BAAQMD developed projected VOC and NOx emissions inventories for the years 1990, 1995, 2000 and 2005 by applying growth factors in accordance with EPA guidance. The CARB included these 1990 emissions inventories for VOC, NOx and CO in the maintenance plan submission. These 1990 emission inventories will be entered into AIRS.

The projected inventories show that the ozone standard will be maintained and that emissions are not expected to exceed the level of the 1990 inventory during the maintenance period. EPA's TSD contains a detailed analysis of the projected emission inventories for the San Francisco Bay Area.

5.C. Verification of Continued Attainment. Continued attainment of the ozone NAAQS in the San Francisco Bay Area depends, in part, on the State's efforts to track indicators of continued attainment during the maintenance period. The BAAQMD will analyze annually the three most recent consecutive years of air quality monitoring data to verify continued attainment of the national ozone standard, in accordance with 40 CFR part 50, appendix H. The BAAQMD will submit to EPA an annual report by July 1 of each year for data collected from the previous calendar year. This information in conjunction with the reports from the previous two years will provide adequate information for determining continued compliance with the ozone NAAQS. The BAAQMD has chosen a violation of the NAAQS as the trigger for the contingency plan.

5.D. Contingency Plan. The level of VOC and NOx emissions in the San Francisco Bay Area will largely determine its ability to stay in compliance with the ozone NAAQS in the future. Despite best efforts to demonstrate continued compliance with the NAAQS, the ambient air pollutant concentrations may exceed or violate the NAAQS. Therefore, as required pursuant to section 175A, the BAAQMD has provided contingency measures with a schedule for implementation in the event of a future ozone air quality problem.

At the time of local adoption of the redesignation request and maintenance plan, the BAAQMD identified the enhanced vehicle inspection and maintenance program (I/M), required for serious and above ozone nonattainment areas, as the contingency measure which would be triggered in the event of a violation during the maintenance period. Since that time, the State of California has passed legislation for an enhanced I/M program which restricts the implementation of the test-only program to nonattainment areas which are required to implement the program under the Clean Air Act. Thus, BAAQMD is prohibited from opting into the test-only portion of the enhanced I/M program. However, the BAAQMD has selected new measures to fulfill the contingency plan requirements of section 175A(d) which are discussed below.

On April 15, 1994, the BAAQMD, MTC, and ABAG sent a letter to the CARB Executive Officer, James Boyd, which committed to adopt basic improvements to the I/M program and NOx control measures as the new contingency provisions for the maintenance plan. In this letter, the BAAQMD, MTC and ABAG, have proposed to implement the basic improvements to the I/M program beginning in January 1995 in order to ensure continued maintenance of the NAAQS. The emission reductions associated with this program go beyond the necessary emission reductions required for maintenance and the reductions are not included in the BAAQMD's projected inventories in the maintenance plan. These improvements yield approximate emission reductions in the amount of 8 tons per day (TPD) VOC and 7 TPD NOx. The early implementation of this contingency provision provides an additional margin of safety for the area in maintaining the NAAQS. In addition, in the event of a violation during the maintenance period, the BAAQMD will meet with EPA within 30 days following the violation to determine which additional measures would be appropriate to implement. The additional measures contained in the proposal include numerous NOx RACT control measures which yield additional NOx reductions through the year 2001. The chart below lists the additional measures and their associated emission reductions. The TSD contains detailed information concerning the basic improvements to the I/M program and the NOx RACT control measures.

BAAQMD NOx  Rules as Contingency Measures 

Title regulation 9     Adopted      Implementation  NOx 
                                   year(s)         Reductions 
                                                   (TPD) 

NOx and CO from   9/16/92      1/1/96          14.9 
Industrial, 
Institutional and 
Commercial Boilers, 
Steam Generators (rule 
7) 
NO sub 2 and CO sub 2  1/20/93      1/1/97          8.3 
Emissions from 
Stationary Internal 
Combustion Engines 
(rule 8) 
NOx from          5/5/93       1/1/97          7/0 
Stationary Gas 
Turbines (rule 9) 
Refinery Boilers,      1/5/94       5/31/95         n/a 
Steam Generators and 
Process Heaters (rule 
10) 
NOx and CO from   2/16/94      5/31/95         1-2.6 
Utility Electric Power 
Generating Boilers 
(rule 11) 
NOx from Glass    1/19/94      1/1/97-         1.2 
Melting Furnaces (rule              1/1/2001 
12) 

fn 1 Sources already meet RACT standards. 

At the request of CARB, the changes to the contingency plan are being parallel processed in accordance with 40 CFR part 51, appendix V in order to expedite the approval of the redesignation request and maintenance plan. The BAAQMD, MTC and ABAG held a public hearing on the new contingency plan on July 29, 1994.

The contingency measures proposed by the BAAQMD meet the requirements of section 175A(d) of the Act.

5E. Subsequent Maintenance Plan Revisions. In accordance with section 175A(b) of the Act, the State has agreed to submit a revised maintenance SIP eight years after the area is redesignated to attainment. Such revised SIP will provide for maintenance for an additional ten years (See letter dated April 15, 1994 from Milton Feldstein, BAAQMD to James Boyd, CARB attached to the TSD).

IV. Potential Impact of California Federal Implementation Plans and State Implementation Plans

EPA is under court order to promulgate final federal implementation plans (FIPs) for ozone for Los Angeles-South Coast Air Basin Area, the Sacramento Metro Area, and the Ventura County Area and for carbon monoxide for Los Angeles-South Coast Air Basin Area by February 15, 1995. EPA discusses the phenomenon of pollutant transport within air basins in the proposed FIPs (59 FR 23393, May 5, 1994). EPA acknowledges that future modeling analyses could eventually result in revisions to the FIP, which may impose additional FIP controls for areas not covered by the proposed FIPs, such as the San Francisco Bay Area, which is upwind of Sacramento. EPA's proposed action to redesignate the San Francisco Bay Area to an attainment area does not exclude the possibility of future FIP controls in the area.

In addition, States are responsible for developing and submitting demonstrations which show that the standard will be attained by the applicable date for areas where the demonstration of attainment is complicated by transport between two areas of different classifications (See General Preamble to title I of the Clean Air Act (57 FR 13528, April 16, 1992)). Thus, EPA expects the ozone modeling demonstrations due by November 15, 1994 required by section 182(c)(2) to address transport and to demonstrate attainment for all areas within California.

A recent report released by CARB, "Preliminary Assessment of Transport on San Joaquin Valley Ozone," discusses recent simulations to assess the impact of transported emissions in the San Joaquin Valley. It should be noted that the results discussed in the report are based on an extreme scenario in which anthropogenic emissions for the San Francisco Bay Area and the Sacramento area are set to zero. In this scenario, the report indicates that there would be a decrease in ozone measurements of 27% in the Northern San Joaquin Valley, ten percent in the Central San Joaquin Valley and seven percent in Southern San Joaquin Valley. The results discussed in this report are preliminary. EPA will review the final report when it is available.

EPA is soliciting comment on whether transport has any impact on EPA's proposed redesignation of the San Francisco Bay Area to attainment.

V. Conclusion

EPA is soliciting public comments on this document and on issues relevant to EPA's proposed action. Comments will be considered before taking final action. Interested parties may participate in the Federal rulemaking procedure by submitting written comments to the person and address listed in the ADDRESSES section at the beginning of this notice.

Proposed Action

In today's document, EPA proposes to approve the San Francisco Bay Area's ozone maintenance plan because it meets the requirements of section 175A. In addition, the Agency is proposing approval of the redesignation request for the ozone nonattainment area, subject to final approval of the maintenance plan and provided the hearing notice and adoption documentation are submitted for the amendments to the contingency plan, because the State has demonstrated compliance with the requirements of section 107(d)(3)(E) for redesignation. Finally, EPA proposes to approve the emissions inventory as meeting the requirements of section 182(a)(1), provided the hearing notice and adoption documentation are submitted, and the NOx exemption petition which fulfills the requirements of section 182(f). Nothing in this action should be construed as permitting or allowing or establishing a precedent for any future request for revision to any SIP. Each request for revision to the SIP shall be considered separately in light of specific technical, economic, and environmental factors and in relation to relevant statutory and regulatory requirements.

Ozone State implementation plans (SIP's) are designed to satisfy the requirements of part D of the Clean Air Act and to provide for attainment and maintenance of the ozone NAAQS. This proposed redesignation should not be interpreted as authorizing the State to delete, alter, or rescind any of the VOC or NOx emission limitations and restrictions contained in the approved ozone SIP. Changes to ozone SIP VOC regulations rendering them less stringent than those contained in the EPA approved plan cannot be made unless a revised plan for attainment and maintenance is submitted to and approved by EPA. Unauthorized relaxations, deletions, and changes could result in both a finding of nonimplementation (section 173(b) of the Clean Air Act) and in a SIP deficiency call made pursuant to section 110(a)(2)(H) of the Clean Air Act.

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA must prepare a regulatory flexibility analysis assessing the impact of any proposed or final rule on small entities. 5 U.S.C. 603 and 604. Alternatively, EPA may certify that the rule will not have a significant impact on a substantial number of small entities. Small entities include small businesses, small not-for-profit enterprises, and government entities with jurisdiction over populations of less than 50,000.

SIP approvals under section 110 and subchapter I, part D of the CAA do not create any new requirements, but simply approve requirements that the State is already imposing. Therefore, because the Federal SIP-approval does not impose any new requirements, it does not have any economic impact on any small entities. Redesignation of an area to attainment under section 107(d)(3)(E) of the CAA does not impose any new requirements on small entities.

Redesignation is an action that affects the status of a geographical area and does not impose any regulatory requirements on sources. Accordingly, I certify that the approval of the redesignation request will not have an impact on any small entities.

The Office of Management and Budget has exempted this rule from the requirements of section 6 of Executive Order 12866.

List of Subjects

40 CFR Part 52

Environmental protection, Air pollution control, Hydrocarbons, Intergovernmental relations, Ozone.

40 CFR Part 81

Air pollution control, National parks, Wilderness areas.

Authority: 42 U.S.C. 7401-7671q.

Dated: August 31, 1994.

Felicia Marcus, Regional Administrator.

[FR Doc. 94-23983 Filed 9-27-94; 8:45 am]

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