Approval and Promulgation of Implementation Plans; California-- Ozone

Note: EPA no longer updates this information, but it may be useful as a reference or resource.

[Federal Register: March 18, 1996 (Volume 61, Number 53)]
[Proposed Rules]
[Page 10920-10962]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[CA114-1-7280; FRL-5439-8]

Approval and Promulgation of Implementation Plans; California--
Ozone

AGENCY: Environmental Protection Agency (EPA).
ACTIONS: Notice of proposed rulemaking.

SUMMARY: EPA proposes to approve revisions to the California State
Implementation Plan (SIP) for ozone for 7 nonattainment areas: South
Coast, Southeast Desert, Ventura, Sacramento, San Diego, San Joaquin
Valley, and Santa Barbara, submitted in order to comply with the
November 1994 deadline under the Clean Air Act (CAA). In addition, EPA
proposes to approve specific local and statewide air pollution control
measures, including the California enhanced motor vehicle inspection
and maintenance program.

EPA proposes to approve these revisions to the California SIP under
provisions of the CAA regarding EPA action on SIP submittals for
nonattainment areas.

EPA proposes to establish a consultative process on the potential
for additional mobile source controls that can contribute to attainment
in the South Coast.

DATES: Written comments on the proposed EPA actions must be received by
EPA at the address below on or before May 2, 1996.

ADDRESSES: Written comments on this proposed action should be addressed
to: Regional Administrator, Attention: Office of Federal Planning (A-1-
2), Air and Toxics Division, Environmental Protection Agency, Region 9,
75 Hawthorne Street, San Francisco, CA 94105-3901
Copies of the SIP submittal and materials relevant to this
rulemaking are contained in Docket No. A-96-13, which is available for
viewing during normal business hours at the address shown above.
Copies of the SIP materials are also available for inspection at
the addresses listed below:

Environmental Protection Agency, Air Docket (6102), 401 M Street, S.W.,
Washington, DC

California Air Resources Board, 2020 L Street, Sacramento, California

In addition, copies of the relevant local plan, the State plan
(1994 California Ozone SIP), and EPA's technical support documents for
this rulemaking are available at the following locations:

Santa Barbara Air Pollution Control District, 26 Castilian Drive B-23,
Goleta, California

San Diego Air Pollution Control District, 9150 Chesapeake Drive, San
Diego, California

San Joaquin Valley Unified Air Pollution Control District, 1999
Tuolumne Street, Fresno, California

Ventura County Air Pollution Control District, 669 County Square Drive,
Ventura, California

Mojave Desert Air Quality Management District, 15428 Civic Drive, Suite
200, Victorville, California

South Coast Air Quality Management District, 21865 E. Copley Drive,
Diamond Bar, California

Electronic Availability

This document and EPA's technical support documents are available
at Region 9's site on the Internet's World Wide Web at http://
www.epa.gov/region09/air/sip/.

FOR FURTHER INFORMATION CONTACT: Julia Barrow, Director, Office of
Federal Planning (A-1-2), Environmental Protection Agency, Region 9, 75
Hawthorne Street, San Francisco, CA 94105-3901, (415) 744-2434

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background

A. Summary

B. Requirements of the Act

C. Affected Areas

[[Page 10921]]

D. The California Ozone Plans

SIP Submittals
EPA Completeness Findings
E. Related SIP Approvals
II. Review of the State Submittal
A. State Measures
Mobile Source Measures
a. Introduction
b. Review of Measures
(i) M1
(ii) M2
(iii) M3
(iv) M4
(v) M5 34
(vi) M7
(vii) M8 39
(viii) M9
(ix) M11
(x) Additional New Control Technologies
c. EPA Action
I/M
a. Review of Program
b. Emission Reductions
c. EPA Action
Consumer Products
a. Introduction
b. Adopted Consumer Products Rules
(i) Measure CP-1
(ii) Measure CP-3 (Aerosol Paints)
c. Mid-Term Committal Measure (CP-2)
d. Long-Term Committal Measure (CP-4)
e. Alternative Compliance Plans (ACPs)
f. Emission Reductions
g. EPA Action
Pesticides
a. Review of Measure
b. Emission Reductions
c. EPA Action
B. Federal Measures
State Approach
EPA Action
C. Local ROP and Attainment Plans and Measures
Introduction and Common Elements
a. Emission Inventories
(1) 1990 Base Year Inventories
(2) Inventory Projections
b. Rate of Progress
c. NO<INF>X Substitution
d. Modeling
(1) Introduction
(2) Uncertainty and Model Performance
(3) Number of Episodes
(4) Attainment Test
(5) Transport
Santa Barbara
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) ROP Control Strategy
(3) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
San Diego
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) ROP Control Strategy
(3) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
San Joaquin Valley
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) 15ROP Control Strategy
(3) Post-1996 ROP Control Strategy
(4) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
Sacramento
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) 15ROP Control Strategy
(3) Post-1996 ROP Control Strategy
(4) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
Ventura
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) 15ROP Control Strategy
(3) Post-1996 ROP Control Strategy
(4) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
South Coast
a. Identification of Plan
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP Provisions
(1) ROP Emission Targets
(2) 15ROP Control Strategy
(3) Post-1996 ROP Control Strategy
(4) EPA Action
e. Demonstration of Attainment
(1) Control Strategy
(2) Modeling and Attainment Demonstration
(3) EPA Action
f. Overall EPA Action
Southeast Desert
a. Identification of Plans
b. 1990 Base Year Inventories
c. SIP Control Measures
(1) Description
(2) EPA Action
d. ROP and Attainment Provisions
(1) ROP and Attainment Emission Targets
(2) State Approach
(3) Modeling and Attainment Demonstration
(4) EPA Action
e. Overall EPA Action
III. Summary of EPA Actions
IV. Regulatory Process
V. Unfunded Mandates

Appendix: Status of EPA's Activities Relating to the ``Federal
Measures'' in the California SIP Submittal

I. Background

A. Summary

Air pollution remains a significant public health concern in many
parts of the country, including many areas in California. The Clean Air
Act requires states to develop state implementation plans (SIPs) that
lay out how areas will reduce pollution and attain the health-based air
quality standards for a number of pollutants, including ground level
ozone.

On the Clean Air Act deadline for ozone SIP submittals, November
15, 1994, the California Air Resources Board (CARB) submitted to EPA
the State's ozone plans, including State and local measures and
regulations, emission inventories, modeling analyses, rate-of-progress
(ROP) plans, and attainment demonstrations. This material was followed
by several supplementary SIP submissions and technical documentation
over the past year, addressing in still greater detail and more
completely the critical ozone planning requirements of the Act.
Together these submissions present a road map of how the State of
California envisions meeting the health-based ozone air quality
standards in 7 distinct geographic areas within the State by the dates
specified in the Clean Air Act. The submittals represent the
culmination of years of work and collaboration among stakeholders at
the local, regional, State, national, and even international level. The
plans were carefully tailored to meet the clean air goals of
Californians, reflecting the social and economic priorities of each
affected area within the State as well as the legitimate concerns of
national and international commerce.

In the last 30 years, California has significantly improved air
quality in its cities through efforts by businesses and

[[Page 10922]]

communities to reduce ground level ozone pollution. California faces
additional challenges in its fight for clean air because of rapid
growth in population and motor vehicle use as well as meteorological
conditions conducive to ozone formation. Nevertheless, there are still
several areas where air pollution continues to threaten public health,
including Southern California, which violates the standard on almost
one out of every three days--25 times more frequently than the next
most polluted urban areas. The current plans build on California's
pioneering air pollution control efforts to make progress against, and
eventually eliminate, one of the most severe and intractable
environmental and public health problems in the Country.
The Clean Air Act guarantees to all Americans healthy air to
breathe. Unfortunately, approximately one-quarter of Americans
nationwide and more than three-quarters of all Californians are
currently exposed to health-threatening levels of air pollution. Of the
top ten U.S. urban areas with the most violations of the national
ambient air quality standard for ozone, nine are located in California.
Ozone is a highly reactive chemical compound which, at ground
level, can affect both biological tissues and man-made materials. Ozone
exposure causes a range of human pulmonary and respiratory health
effects. While ozone's effects on the pulmonary function of sensitive
individuals (e.g., asthmatics) are of primary concern, evidence
indicates that high ambient levels of ozone can cause respiratory
symptoms in healthy adults and children as well. For example, exposure
to ozone for several hours at moderate concentrations, especially
during outdoor work and exercise, has been found to decrease lung
function, increase airway inflammation, increase sensitivity to other
irritants, and impair lung defenses against infections in otherwise
healthy adults and children. Other symptoms include chest pain,
coughing, and shortness of breath.

There are also public health consequences from direct exposure to
the two principal pollutants that cause ozone formation: oxides of
nitrogen (or NO<INF>X) and volatile organic compounds (or VOCs). Since
attainment of the ozone standard requires reductions in these two
precursor pollutants, successful implementation of the ozone SIPs will
yield additional health benefits. Exposure to nitrogen dioxide (a major
component of NO<INF>X) can reduce breathing efficiency and increase
lung and airway irritation even in healthy adults; elevated NO<INF>2
levels also increase symptoms of respiratory illness, lung congestion,
wheeze, and increased bronchitis in children. VOCs include many air
toxics (such as benzene), which can cause respiratory, immunological,
neurological, reproductive, developmental, and mutagenic problems. Some
VOCs are also probable or known human carcinogens.
Finally, the conversion of NO<INF>X into fine particulate matter is
a serious health concern, especially in Southern California. Studies
have shown that high concentrations of fine particulate matter are
associated with major human health problems, including deleterious
effects on breathing and the respiratory system, aggravation of
existing respiratory and cardiovascular disease, alternations in the
body's defense mechanisms against foreign materials, and damage to lung
tissue resulting in fibrosis, carcinogenesis, and premature death.
In addition to impacts on public health, ozone damages vegetation
and NO<INF>X emissions, in the form of acid deposition, both harms
plants and causes eutrophication of lakes and streams. Estimates based
on experimental studies of the major commercial crops in the U.S.
suggests that ozone may be responsible for significant agricultural
crop yield losses. In addition, ozone causes noticeable leaf damage in
many crops, which reduces their marketability and value.
Efforts to clean the air require significant resources, but the
benefits are substantial. While it is easier to put a price tag on a
regulation to limit air pollution than it is to assign a dollar value
to being able to breathe without losing lung capacity or to see
mountains that are a few miles away, we know that impacts on
individuals' health associated with air pollution have considerable
physiological, psychological, and purely financial costs. Similarly,
lower crop yields, decreased forest production, and accelerated
building deterioration due to air pollution also have financial costs
that will be reduced by attainment of the clean air standards.
At the same time, clean air has benefits even beyond healthy
breathing. The technologies and industries that will make air pollution
a problem of the past can also be the growth industries that bring to
California jobs and dollars from markets all around the world. A recent
World Bank study projects a $300 billion worldwide marketplace for
clean technologies by the year 2000. Innovative technologies offer the
promise of continued economic growth in concert with strong
environmental protection.

To achieve public health progress over the past 30 years,
California has already adopted uniquely stringent controls on a vast
array of industrial sources, consumer products, and motor vehicles. As
developed by California and Californians, these existing regulations
and the SIP's proposed enhancements to them promote technological
advances while meeting the economic and environmental needs of the
State. The credit for this achievement is shared by the State's air
pollution professionals, regulated industry, and citizens, who continue
to explore new and innovative ways to minimize pollution associated
with their products and activities.

Plan Approvals

When a state submits a SIP to EPA the Clean Air Act requires the
Agency to review the plan to determine if it meets the Act's
requirements and environmental goals. California's 1994 Ozone SIP
included, for both the State and local agencies, fully adopted
regulations and control measures for which regulations must be written.
Since November 1994, EPA has already completed approval of all but one
of the State's fully adopted regulations and most of the State's
commitments to adopt regulations in the future. The State submitted its
enhanced motor vehicle inspection and maintenance (I/M) regulations on
January 22, 1996. EPA is proposing today approval of the I/M
regulations, which should help to assure the maximum benefits from the
California motor vehicle emissions standards.
EPA believes that this SIP represents an important blueprint for
clean air in California. By today's actions, the Federal government
signals its intention to concur with these plans. California's
commitments, when implemented, will improve air quality and protect
public health. Now it is incumbent on California to meet those
commitments. EPA is today generally proposing to approve in full the
critical components of all of the plans for all of the areas.
EPA is proposing approval of:

<bullet> The emission inventories and modeling analyses in all of
the affected areas;

<bullet> The 15rate-of-progress plans for the period 1990-1996 in
the South Coast (the Los Angeles basin), Ventura, San Joaquin, San
Diego, and Santa Barbara;

<bullet> The post-1996 rate-of-progress plans in the South Coast,
Ventura, Sacramento, San Joaquin, and San Diego;

[[Page 10923]]

<bullet> The attainment demonstrations for the South Coast,
Southeast Desert, Ventura, Sacramento, San Joaquin, San Diego, and
Santa Barbara;

<bullet> All of the individual local measures included with the
plans.

EPA will take action separately on the 15arogress plan for Sacramento
and the progress plans for the Southeast Desert.
The South Coast ozone attainment demonstration raises a unique
issue. In the SIP, California assumes that EPA will issue specific
national mobile source emission reduction rules to help the South Coast
reach attainment. While some additional mobile source standards may be
feasible and desirable, EPA believes that it is important to examine
and discuss these standards because they have far-reaching
implications. As new national and international standards are being
discussed, EPA commits to support rather than hinder State and local
progress in implementing and updating the ozone attainment
demonstration for the South Coast.

To achieve this objective and allow for approval of the South Coast
attainment demonstration at this time, EPA proposes an approach which
the Agency believes is consistent with EPA's guiding principle for
implementing its statutory responsibilities: accomplish environmental
goals through innovative approaches that are collaborative rather than
adversarial, and that provide flexibility while requiring
accountability.

The South Coast attainment demonstration is based primarily on
those State and local components (enumerated in the text of the notice)
that make up the vast majority of reductions needed for attainment in
the South Coast. EPA has already approved most of the State and local
adopted regulations and many of the State's new commitments made as
part of California's 1994 Ozone SIP. EPA proposes in this document to
approve the enforceable State and local commitments that make up the
remainder of the plan. These State and local regulations and
commitments, together with creditable national controls which EPA has
promulgated or proposed, account for well over 9012f the reductions
needed for attainment.

To address the small remaining shortfall which the State has
assigned to the Federal government, EPA proposes to conduct a public
consultative process on future mobile source controls. The Agency also
commits to undertake rulemaking, after the consultative process, on any
controls which are determined to be appropriate for EPA. Finally, EPA
is proposing to require that the State submit, before EPA's final
action on the South Coast plan, an enforceable commitment to submit a
revised South Coast attainment demonstration and gap-filling State or
local control measures, if needed, after the consultative process.
In assigning EPA responsibility for issuing Federal emission
standards for various mobile sources, the State argued that attainment
in Southern California depends upon emission reductions from national
and international mobile sources which could not legally or practically
be regulated at the State or local level. EPA and the State have been
working together for the past several years to evaluate the potential
for additional national emission controls on mobile sources. EPA has
recently proposed or finalized national emission controls for
construction, farm, and lawn and garden equipment; pleasure craft and
some categories of marine vessels; and potential new controls on heavyduty
truck emissions. The proposed nationwide heavy-duty truck
controls, in fact, are an outgrowth of an EPA-California joint
initiative, developed in consultation with heavy-duty engine
manufacturers, which also extends to possible future controls on heavyduty
nonroad engines. Other assignments by the State present unique
challenges, such as the establishment of stringent engine emission
standards for aircraft and ocean-going vessels--sources which are today
regulated by treaty principally at the international level.
EPA proposes to continue to consult with the State and other
stakeholders to examine the potential for additional mobile source
controls that can contribute to attainment in the South Coast. This
period provides an opportunity to agree on a set of emission reductions
without adverse consequences to the State or the environment, whether
those additional reductions come from national and international
emission standards or from new State and local measures. At the
conclusion of this consultation, in June 1997, EPA expects that the
State and local agencies will be able to amend the attainment
demonstration appropriately, based on the final mix of national, State,
and local mobile source control responsibilities. During the
consultative process, the State and local agencies need to proceed
aggressively with implementing other parts of the SIP in order to
maintain progress towards cleaning the air.
As mentioned, EPA is proposing to approve all of the local agency
commitments to adopt and implement rules by scheduled dates to achieve
specified emission reductions. In some cases, most notably the South
Coast, scheduled adoption dates have already been missed. It is
critically important that these adoption schedules be amended, that the
local agency staff and governing board's commit themselves to
reasonable and aggressive schedules for rule development and adoption,
and that the affected agencies proceed successfully with plan
implementation to fulfill their public commitments to deliver clean
air. EPA will work with the local agencies, the regulated community,
and the public to help the government boards and officials to meet
their public health obligations. Implementation failures will prolong
the unacceptable current levels of pollution and will expose the areas
to potential sanctions under the Clean Air Act.
Section 182(e)(5) of the Clean Air Act authorizes inclusion of
conceptual, new-technology measures in the attainment demonstration for
the South Coast, the Country's only ``extreme'' ozone nonattainment
area. In this 1990 amendment, Congress recognized that the South
Coast's enormous emission reduction requirements justified giving more
time to allow for the completion of research and development phases
that must precede the successful commercialization of practically zeroemitting
products, industrial processes, and means of transportation. A
large portion of the remaining needed reductions in the 1994 South
Coast plan is now assigned to conceptual measures. If these measures
are to contribute to the solution of the South Coast's ozone problem in
later years, all responsible governmental agencies and private industry
must now increase their resource commitments and cooperative efforts to
develop the clean technologies and innovative market approaches that
will be the basis for the area's economic and environmental progress.
EPA is soliciting public comments on the proposed SIP actions. The
Addresses section of this document provides information on the public
comment process and opportunities to inspect the SIP and related
materials. EPA hopes to take final action soon so that California can
continue to make progress in implementing the challenging strategies in
the plans.

In transmitting the 1994 California Ozone SIP, the Chairwoman of
the California Air Resources Board stated that ``The SIP provides a
firm guarantee to citizens of California that clean air

[[Page 10924]]

goals will be met within the time frames set out in the CAA.'' Indeed,
the goal of the sweeping 1990 Clean Air Act Amendments has been not
simply to sustain the historic progress in reducing air pollution, but
instead to honor the underlying promise of the Act: clean, healthy air
for all Americans. We believe that California's achievement in these
plans for the most polluted areas of the nation proves that the Clean
Air Act is effective when citizens and public officials work together
to focus technical expertise and common sense to protect themselves,
the health of their children, and the welfare of future generations.
The Federal government is committed to playing its part in this final
effort to deliver clean air to all Californians.

B. Requirements of the Act

Title I of the 1990 Amendments to the CAA (CAAA) completely revised
the Part D nonattainment provisions for areas which had not attained
the national ambient air quality standards (NAAQS) for ozone. In
addition, Congress made numerous changes governing EPA's processing of
SIPs, as well as the repercussions of State failures to meet the
various SIP requirements.

Section 110 of Part A of Title I contains general requirements
applicable to all SIP revisions. Section 110(k) describes the Agency's
actions on SIP revisions, including findings as to whether submissions
are complete (section 110(k)(1)), deadlines for EPA actions (section
110(k)(2)), types of actions the Agency may take on complete submittals
(110(k) (3) and (4)), and sanctions which may be applied to areas which
fail to meet the Act's requirements (sections 179 and 110(m)) or fail
to implement approved SIPs (sections 113(a)(5), 173(4), and 179).
The requirements addressed by this proposal are generally those of
Part D of Title I, pertaining to nonattainment areas. Such areas are
designated under section 107 of the Act (codified at 40 CFR Part 81).
While Subpart 1 of Part D (sections 171 to 179 CAA) describes general
requirements for nonattainment areas, Subpart 2 (sections 181 to 185B)
lists additional provisions added under the 1990 CAAA for ozone
nonattainment areas.

Under this subpart, ozone nonattainment areas are classified
according to the severity of the nonattainment problem, and become
subject to a graduated series of requirements. The classification
scheme for ozone nonattainment areas is listed under section 181, which
also establishes deadlines for attainment. The nonattainment
classifications and applicable attainment deadlines are: marginal
(November 15, 1993), moderate (November 15, 1996), serious (November
15, 1999), severe (November 15, 2005 or 2007), and extreme (November
15, 2010). Section 181(a) further provides that the attainment date
shall be ``as expeditiously as practicable but not later than'' these
deadlines.

EPA has issued preliminary interpretations of the amended Act's
provisions applicable to these SIP obligations. See, for example, the
``General Preamble for the Implementation of Title I of the Clean Air
Act Amendments of 1990,'' (57 FR 13498 [April 16, 1992]). In this
proposed rulemaking action, EPA is applying these policies to the
proposed California ozone SIP, taking into consideration the specific
factual issues presented.

The central SIP requirements for ozone nonattainment areas are
demonstrations of reasonable further progress (or ``rate of progress'')
and attainment. Section 182(b)(1) requires, for areas classified as
moderate or above, submission by November 15, 1993 of a SIP revision
providing for reasonable further progress, defined as a reduction from
1990 baseline emissions of at least 15actual emissions of volatile
organic compounds (VOC), taking into account growth, during the first 6
years following enactment of the 1990 CAAA (i.e., up to November 15,
1996).

Baseline emissions for calculating the required ROP reduction are
defined at section 182(b)(1)(B). Baseline emissions are relative to a
particular year for which the ROP reduction is calculated, and differ
from the 1990 base year emissions primarily in excluding reductions for
certain Federal programs which were already required prior to the 1990
CAAA. Section 182(b)(1)(C) describes a number of exclusions from
creditability for the purposes of meeting the ROP requirement.
For moderate areas, section 182(b)(1) requires submission of a plan
revision by November 15, 1993, that provides an attainment
demonstration including sufficient annual reductions in VOC and
NO<INF>X to attain the ozone NAAQS by November 15, 1996. The attainment
demonstration requirement can be met through applying EPA-approved
modeling techniques.

Section 182(c)(2)(B) requires, for serious and above areas,
submission by November 15, 1994, of reasonable further progress and
attainment plans. For these areas, the CAA defines reasonable further
progress as an additional ROP reduction above and beyond the required
1996 reductions, of 3aer year of baseline VOC emissions, averaged
over each consecutive 3-year period from November 15, 1996 until
attainment. Section 182(c)(2)(A) also requires attainment plans, based
on photochemical grid modeling, to be submitted by November 15, 1994,
for serious and above areas.

Section 182(c)(2)(C) allows for actual NO<INF>X emissions
reductions (after accounting for growth) that occur after the base year
of 1990 to be used to meet post-1996 ROP emission reduction
requirements. The reader is referred to section II.C.1.c. below for a
discussion of the Agency's NO<INF>X substitution criteria.
Sections 182(g)(3) and 182(g)(5) specify requirements for areas
which fail to submit a ROP milestone compliance demonstration under
section 182(g)(2) within the required period or if the Administrator
determines that the area has not met any applicable milestone. The
first ozone ROP milestone compliance demonstration is due April 1997,
for the period 1990-1996. Among the options discussed in section 182(g)
for curing a ROP shortfall is the use of an economic incentive program
(EIP). Under section 182(g)(4)(B), EPA promulgated requirements for
EIPs at 40 CFR Part 51, Subpart U (see 40 CFR 51.490 through 40 CFR
51.494--``EIP Rules and Guidance''). These EIP rules also serve as
policy guidance to determine the approvability of SIP measures that
rely on economic incentives (see 40 CFR 51.490(b)).
Under section 182(b)(4) of the Act, basic motor vehicle inspection
and maintenance (I/M) programs are required in all moderate ozone
nonattainment areas. Under section 182(c)(3), ozone nonattainment areas
designated as serious and worse with 1980 populations of 200,000 or
more are required to meet EPA regulations for ``enhanced'' I/M
programs. As required by section 182(a)(2)(B) of the Act, EPA published
updated requirements for I/M programs on November 5, 1992 (40 CFR part
51, Subpart S, see also 57 FR 52950). On September 18, 1995, EPA issued
flexibility amendments to these I/M rules, allowing for an additional,
less stringent enhanced I/M performance standard for areas that can
meet the ROP and attainment requirements with an I/M program that falls
below the originally promulgated enhanced I/M performance standard (see
60 FR 48029). On November 28, 1995, the National Highway System
Designation Act (Public Law 104-59) was enacted. Section 348 of this
legislation modifies the I/M provisions

[[Page 10925]]

of the Clean Air Act, providing a mechanism for approval with full
credit for decentralized or test-and-repair enhanced I/M programs under
certain circumstances. The legislation also establishes an 18-month
evaluation period to verify that the assigned credits have a basis in
fact, prior to permanent program approval.
Part D of the Act includes other ozone SIP requirements. EPA has
previously acted upon some SIP revisions addressing these requirements;
others will be addressed in future actions. Moreover, the ozone ROP and
attainment plans depend upon the successful adoption and implementation
of well over 100 State and local rules. EPA will approve or disapprove
individual rules relating to each local plan after the State submits
the rules and EPA deems them complete.

EPA believes that the law requires and the public expects that the
responsible California State and local agencies will honor all of their
clean air commitments in these ozone plans, and will consistently
pursue reasonable and aggressive plan implementation until the clean
air goals are reached. Nevertheless, the Act does allow the State to
amend the SIPs in the future, both with respect to the technical
foundations of the demonstrations and the specific mix of control
measures chosen for achieving progress and attainment. State and local
agencies have the flexibility to make changes as necessary and
appropriate to improve the plans, but EPA will fulfill the Agency's
responsibilities under section 110(l) of the CAA, which provides that
``the Administrator shall not approve a revision of a plan if the
revision would interfere with any applicable requirement concerning
attainment and reasonable further progress * * * or any other
applicable requirement of the Act.''

C. Affected Areas

When California's ozone nonattainment areas were first classified
under the 1990 CAAA, 9 areas were classified as moderate and above, and
therefore subject to the progress and attainment requirements. The San
Francisco Bay Area was later redesignated to attainment (60 FR 27028,
May 22, 1995). CARB has also submitted a request to redesignate the
Monterey Bay Area to attainment. EPA will act on the Monterey
redesignation in the near future.

This proposal addresses ROP and attainment plans submitted for all
of the remaining nonattainment areas. These areas are the South Coast
(classified as extreme), the Southeast Desert (comprising the Mojave,
Coachella/San Jacinto, and Antelope Valley areas, severe-17), Ventura
(severe-15), Sacramento (severe-15), San Diego (serious), San Joaquin
Valley (serious), and Santa Barbara (moderate). The boundaries for
these areas are set forth at 40 CFR 81.305.
Since a number of the State's measures apply throughout California
and thus contribute both toward attainment and maintenance of the ozone
NAAQS, the SIP submittal and EPA's proposed approval actions affect all
areas in the State.

D. The California Ozone Plans

SIP Submittals

On November 15, 1993, in response to the 15ROP requirements of
section 182(b)(1)(A) of the Act, CARB submitted plans for all of the
areas addressed in this notice. These submittals have been superseded
by revised ROP plans submitted one year later.
On November 15, 1994, CARB submitted a revision to the ``State of
California Implementation Plan for Achieving and Maintaining the
National Ambient Air Quality Standards'' (SIP) under cover letter from
James Boyd (CARB) to Felicia Marcus (EPA). This SIP revision includes
documentation that the public involvement and adoption requirements of
the CAA have been met at both the State and local level.
The revision itself consists of: (a) The State's comprehensive
ozone plan, including the State's own measures and the State's
summaries of, and revisions to, the local plans; (b) the State's
previously adopted regulations for consumer products and reformulated
gasoline and diesel fuels; and (c) local plans addressing the ozone
attainment demonstration and ROP requirements.
The ozone SIP submittal includes the following separate documents:

(a) The State's Comprehensive Ozone Plan

``The 1994 California State Implementation Plan for Ozone,''
volumes I-IV. The November 15, 1994, submittal letter refers to other
submittals, described below, as completing the 1994 California Ozone
SIP. Volume I provides an overview of the entire submittal; Volumes II
and III include the State's measures for mobile sources, consumer
products, and pesticides; and Volume IV treats the local plans. On
December 29, 1994 and February 7, 1995, the State submitted updates to
these documents, incorporating changes made by CARB at the time of
adoption, and providing other technical and editorial corrections.

(b) The State's Adopted Regulations

(1) The California Antiperspirants and Deodorants regulations and
Consumer Products regulations, as contained in Title 17 of the
California Code of Regulations, Sections 94507-94517, adopted on
December 27, 1990, August 14, 1991, and September 21, 1992.
(2) The California Diesel Fuel regulations, as contained in Title
13 of the California Code of Regulations, Sections 2281 and 2282,
adopted on August 22, 1989, June 21, 1990, April 15, 1991, October 15,
1993, and August 24, 1994.

(3) The California Reformulated Gasoline regulations, as contained
in Title 13, of the California Code of Regulations, Sections 2250,
2252, 2253.4, 2254, 2257, 2260, 2262.1, 2262.2, 2262.3, 2262.4, 2262.5,
2262.6, 2262.7, 2263, 2264, 2266-2272, 2296, and 2297, initially
adopted by CARB on November 17, 1988, and formally adopted on August
22, 1989, June 21, 1990, April 15, 1991, October 15, 1993, and August
24, 1994.

(1) ``1994 Clean Air Plan for Santa Barbara County.'' The submittal
letter for this plan is from James Boyd to Regional Administrator
Felicia Marcus and is dated November 14, 1994.
(2) ``1994 Ozone Attainment and Rate-of-Progress Plans for San
Diego County.''

(3) ``San Joaquin Valley Attainment and Rate-of-Progress Plans.''
On December 28, 1994, the State submitted the ``Rate-of-Progress and
Attainment Demonstration Plans for the Kern County Air Pollution
Control District,'' applicable to the Kern desert portion of the San
Joaquin Valley nonattainment area.

(4) ``Sacramento Area Proposed Attainment and Rate-of-Progress
Plans.'' On December 29, 1994, the State replaced this with the
``Sacramento Area Attainment and Rate-of-Progress Plans.''
(5) ``1994 Air Quality Management Plan for Ventura County.''
(6) ``Rate-of Progress and Attainment Demonstration Plans for the
Mojave Desert.''

(7) ``1994 Air Quality Management Plan for South Coast Air Basin,
Antelope Valley and Coachella/San Jacinto Planning Area.''
On December 29, 1994, the State submitted the ``Rate-of-Progress
Plan Revision: South Coast Air Basin &

[[Page 10926]]

Antelope Valley & Coachella/San Jacinto Planning Area.'' <SUP>1

\1\ Antelope Valley and Coachella/San Jacinto Planning Area are
portions of the Southeast Desert Modified Air Quality Management
Area under the jurisdiction of the South Coast Air Quality
Management District.

On March 30, 1995, CARB submitted revised 1990 base year emission
inventories for each of the California ozone nonattainment areas.
On June 30, 1995, CARB submitted descriptive materials relating to
the State's motor vehicle inspection and maintenance program, adopted
by the California Bureau of Automotive Repair.
On January 22, 1996, CARB submitted the motor vehicle inspection
and maintenance regulations adopted by the California Bureau of
Automotive Repair.

2. EPA Completeness Findings

On January 30, 1995, EPA issued a finding of completeness under
Section 110(k)(1) of the Act for the following portions of the
California ozone SIP submittal: Diesel Fuel Regulations; Reformulated
Gasoline Regulations; CARB Measures M2, M3, M5, M8, M9, M11, CP-2, CP-
3, CP-4, Additional Measures; and SCAQMD Long Term Measures ADV-CTS-01/
02, ADV-FUG, ADV-PRC, ADV-UNSP. These elements of the revision were
found complete based on EPA's completeness criteria that are set forth
in 40 CFR Part 51 Appendix V.<SUP>2

\2\ EPA adopted the completeness criteria on February 16, 1990
(55 FR 5830) and pursuant to section 110(k)(1)(A) of the CAA,
revised the criteria on August 26, 1991 (56 FR 42216).

On April 18, 1995 the EPA issued a finding of completeness for the
remaining portions of the November and December 1994 submittals with
regard to: (1) attainment and post-1996 RFP requirements at section
182(c)(2) of the Act; (2) 15ROP requirement of section 182(b)(1)(A);
(3) attainment requirement for moderate areas (Santa Barbara) as
described at Section 182(b)(1)(A); and (4) 1990 base year inventory
requirements of section 182(a)(1).

On June 30, 1995, EPA issued a finding of completeness for the
State's submittal of revisions to the State's I/M program.
On February 5, 1996, EPA issued a finding of completeness for the
State's I/M regulations.

E. Related SIP Approvals

On February 14, 1995, the EPA Administrator signed documents taking
the following approval actions relating to the California ozone SIP:
(1) Final approval of the CARB Antiperspirants and Deodorants
regulations, Consumer Products regulations, Diesel Fuel regulations,
and Reformulated Gasoline regulations, as submitted on November 15,
1994.

(2) Interim final approval of CARB and SCAQMD New-Technology
Measures, submitted as part of the South Coast ozone SIP on November
15, 1994. The measures were approved under the provisions of section
182(e)(5) of the CAA, which authorizes the Administrator to approve
fully and credit as part of an extreme ozone area SIP conceptual
measures dependent upon new control technologies or new control
techniques. The specific measures approved are:
(a) CARB Measure M2, Improved Control Technology for Light-Duty
Vehicles, for adoption in the year 2000 and implementation in 2004-5.
(b) CARB Measure M9, Off-Road Diesel Equipment, 2.5 grams per brake
horsepower-hour (g/bhp-hr) NO<INF>X standard, for adoption in 2001 and
implementation in 2005.

(c) CARB Measure CP-4, Consumer Products Advanced Technology and
Market Incentives, for adoption in 2005 and implementation in 2009.
(d) CARB Additional Measures, for adoption and implementation by
2009-2010.

(e) SCAQMD Measure ADV-CTS-01, Advance Technology-CTS (Coating
Technologies), for adoption in 2003.

(f) SCAQMD Measure ADV-FUG, Advanced Technology-Fugitives, for
adoption in 2003.

(g) SCAQMD Measure ADV-PRC, Advance Technology-Process Related
Emissions, for adoption in 2003.

(h) SCAQMD Measure ADV-UNSP, Advance Technology-Unspecified,
Stationary Sources, for adoption in 2003.
(i) SCAQMD Measure ADV-CTS-02, Advance Technology-CTS (Coatings
Technologies).

(3) Proposed approval of CARB's mid-term control measures: Measures
M3, Accelerated Ultra-Low Emission Vehicle (ULEV) requirement for
Medium-Duty Vehicles, for adoption in 1997 and implementation in 1998;
M5, Heavy-Duty Vehicle NO<INF>X regulations, for adoption in 1997 and
implementation in 2002; M8, Heavy-Duty Gasoline Vehicles lower
emissions standards, for adoption in 1997 and implementation in 1998;
M11, Industrial Equipment, Gas and LPG, for adoption in 1997 and
implementation in 2000; and CP2, Mid-Term Consumer Products, for
adoption in July 1997.

These actions were taken in conjunction with issuance of ozone
Federal Implementation Plans (FIPs) for the South Coast, Ventura, and
Sacramento, and a carbon monoxide FIP for the South Coast. Prior to
publication of the FIP and SIP actions in the Federal Register,
legislation was enacted mandating that these FIPs ``shall be rescinded
and shall have no further force and effect'' (Public Law 104-6, Defense
Supplemental Appropriation, H.R. 889, enacted April 10, 1995).
On August 21, 1995, EPA announced the rescission of the FIPs (60 FR
43468), and reissued the final and interim final SIP approvals (60 FR
43379) and the proposed SIP approvals (60 FR 43421) referenced above.
On December 14, 1995 (60 FR 64126), EPA issued the final SIP approval
of the State's mid-term control measures (M3, M5, M8, M11, and CP-2).

II. Review of the State Submittal

On October 7, 1994 the State published a public notice regarding
its adoption hearings, to begin on November 9, 1994. Those hearings
were extended to November 14 and 15, at which time CARB adopted and
submitted the documents listed above (section I.C.).
The local elements of the State plan were the product of plan
development, public review and adoption processes conducted in each
nonattainment area. Following adoption by the local air pollution
control boards, the local plans were submitted to CARB, which amended
the plans and incorporated them into the overall California Ozone SIP.
This document discusses the State's submittal in terms of 3 broad
categories: measures which the State has adopted, or enforceably
committed to adopt (section II.A.); measures assigned by the State to
the Federal government (section II.B.); and local ROP and attainment
plans and measures (section II.C.).

A. State Measures

Statewide elements of the ozone progress and attainment plans
include measures to control mobile sources, consumer products, and
pesticides. These control measures consist of existing adopted rules,
commitments to adopt rules between 1995 and 1997, and long-term
measures scheduled for regulatory adoption in the year 2000 or later.

Mobile Sources Measures

a. Introduction. According to data from CARB, mobile sources (onroad
and non-road) account for more than 60 percent of ozone precursor
emissions in California. Therefore, further reductions in mobile source
emissions are essential if attainment of the NAAQS for ozone is to be
achieved.

[[Page 10927]]

CARB has an existing statewide control program for mobile source
emissions, which is expected to achieve significant reductions in
emissions in the ozone nonattainment areas of the State. A key element
of this existing control program is the Low-Emission Vehicle/Clean
Fuels (LEV) program which was originally adopted in 1990 and has been
amended several times since. The LEV program aims to reduce emissions
from future light- and medium-duty vehicles. The program contains
several categories of vehicle emission requirements. Increasingly
stringent fleet average requirements must be met by vehicle
manufacturers beginning in 1994. In addition, the LEV program requires
manufacturers to introduce increasing percentages of zero-emission
vehicles (ZEVs), beginning with two percent in 1998 (Title 13,
California Code of Regulations, Section 1960.1).
Other CARB-adopted mobile source control measures include the
California Diesel Fuel Regulations and the California Reformulated
Gasoline regulations. Both of these fuel regulations were originally
adopted in 1989 and frequently amended. As discussed above, EPA
approved the diesel and reformulated gasoline regulations on August 21,
1995 (60 FR 43379).

Beginning in 1988, CARB also adopted the following important sets
of mobile source regulations:

(1) Emission standards for diesel farm and construction equipment
over 175 hp;

(2) revised evaporative emission test procedures;
(3) Phase 2 on-board diagnostics (OBD) provisions;
(4) Revised emission standards for medium-duty vehicles (MDVs) and
light-heavy-duty vehicles (LHDVs); and

(5) Requirements for utility engines and off-highway recreational
vehicles/engines.

In addition to the adopted measures, the State has committed in the
1994 California Ozone SIP to future adoption of a series of mobile
source measures. The commitments fall chronologically into two
categories with regard to the adoption schedule: mid-term commitments
to be adopted during the 1995-1997 time frame, and long-term measures
scheduled for adoption in the year 2000 or later.
The long-term measures are relied upon only in the South Coast Air
Basin. The South Coast is the only area in the country classified as
extreme for ozone, and is subject to section 182(e)(5) of the Act,
which authorizes EPA to credit conceptual measures using new
technologies or control techniques if they are not needed for meeting
the first 10 years of ROP (see section II.C.7.e.(1).).
The following is a description of the State's mobile source
measures, or M Measures, and EPA's approval actions on the measures.
b. Review of Measures

(i) M1--Accelerated Retirement of Light-Duty Vehicles. The SIP
commits to adopt this measure in 1996 and implement it from 1996 to
2010. Responsibility for implementing this measure may be shared
between CARB and regional air districts. In this measure, CARB commits
to the annual retirement (scrappage or removal) of up to 75,000 older,
high-emitting vehicles in the South Coast Air Basin only, beginning in
1999. A smaller number of vehicles will be retired between 1996 and
1998 in order to gain experience with the program. CARB estimates that
$1,000 per car will be required to cover costs associated with vehicle
purchase and program administration. CARB committed in the SIP to
secure a financing mechanism for the program by the end of 1995, and
legislative efforts to do so have been partially successful. While all
critical near-term revenues should be obtained now, the State also
should begin to pursue long-term support for the program. CARB must
also ensure that implementation and monitoring of the measure prevents
double-counting of reduction credits, since scrappage is also a feature
of the State's I/M program and emission reduction credits from
scrappage may be claimed as emission reduction credits in trading
programs.<SUP>3

\3\ These concerns were expressed in a letter from David P.
Howekamp, Director, Air & Toxics Division, USEPA Region 9, to James
D. Boyd, Executive Officer, CARB, dated June 15, 1995, on follow-up
issues to a June 9, 1995 meeting between CARB, USEPA, and the
Western States Petroleum Association (WSPA).

While M1 is a commitment to implement an accelerated vehicle
retirement program only in the South Coast, the SIP states that
``implementation of light-duty vehicle retirement programs in other
non-attainment areas will be considered as a means of further reducing
emissions'' (Vol. II, p. B-2).

The emission reductions to be achieved in the South Coast by the
measure are displayed by year in the table below, labeled ``Reductions
from California Mobile Source Measure M1.''

Reductions From California Mobile Source Measure M1 South Coast Air
Basin
[Tons per day]
1999 2002 2005 2007 2008 2010
Basin
[Tons per day]
1999 2002 2005 2007 2008 2010
Reductions From California Mobile Source Measure M3
[Tons per day]
1999 2002 2005 2007 2008 2010
-----------------------------------------------------------------------------------------------------
ROG NO ^X ROG NO ^X ROG NO ^X ROG NO ^X ROG NO ^X ROG NO ^X
SE Desert................ 0 0.1 0.1 1.4 0.2 3.5 0.3 4.1
Ventura.................. 0 0 0 0.5 0.1 1.0
Sacramento............... 0 0.2 0 1.7 0.4 3.9
S. Joaquin............... 0 0.4
S. Diego................. 0.9 6.5

Notices For
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994

Approval and Promulgation of Implementation Plans; California-- Ozone

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