Federal Register, Volume 63 Issue 16 (Monday, January 26, 1998)

[Federal Register Volume 63, Number 16 (Monday, January 26, 1998)]
[Proposed Rules]
[Pages 3687-3693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1765]

[[Page 3687]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[AZ-005-ROP FRL-5953-4]

Approval and Promulgation of Implementation Plans; Phoenix,
Arizona Ozone Nonattainment Area, 15 Percent Rate of Progress Plan and
1990 Base Year Emission Inventory

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA proposes to determine that the Phoenix, Arizona ozone
nonattainment area has in place sufficient control measures to meet the
15 percent rate of progress (ROP) requirement in Clean Air Act section
182(b)(2). This proposal is based on EPA's reanalysis of Arizona's 15
percent plan submitted for the Phoenix area. This reanalysis takes into
account current information on the implementation of the State's
vehicle inspection and maintenance program, additional controls
recently adopted by the State, and national rules either proposed or
promulgated by EPA that affect emissions in the Phoenix area. EPA is
also proposing to approve the area's 1990 base year emissions
inventory.

DATES: Comments on this proposal must be received in writing by March
27, 1998. Commenters may also request the opportunity to submit oral
comments pursuant to Clean Air Act section 307(d)(5). Requests for a
public hearing must be received by February 5, 1998.

ADDRESSES: Written comments should be addressed to Frances Wicher at
the Region 9 address.
Copies of the State's submittals, EPA's draft technical support
document (TSD) for this rulemaking, EPA's policies governing 15 percent
plan approvals and emission inventories, and other supporting
documentation are contained in the docket for this rulemaking. Copies
of this document and the TSD are also available in the air programs
section of EPA Region 9's website, http://www.epa.gov/region09. The
docket is available for inspection during normal business hours at the
following locations:

U.S. Environmental Protection Agency, Region 9, Office of Air Planning,
Air Division, 17th Floor, 75 Hawthorne Street, San Francisco,
California 94105. (415) 744-1248.
Arizona Department of Environmental Quality, Library, 3033 N. Central
Avenue, Phoenix, Arizona 85012. (602) 207-2217.

FOR FURTHER INFORMATION CONTACT: Frances Wicher, Office of Air Planning
(AIR-2), U.S. Environmental Protection Agency, Region 9, 75 Hawthorne
Street, San Francisco, California 94105. (415) 744-1248.

SUPPLEMENTARY INFORMATION:

I. Background

A. Clean Air Act Requirements

1. Base Year Emission Inventories
The Phoenix metropolitan area was originally classified as a
moderate ozone nonattainment on November 6, 1991. ¹ Section
182(b) of the Clean Air Act (CAA or Act) requires that each state in
which all or part of a moderate ozone nonattainment area is located
submit, by November 15, 1992, an inventory of actual emissions from all
sources, as described in sections 172(c)(3) and 182(a)(1), in
accordance with guidance provided by the Administrator. EPA provided
preliminary guidance on this base year inventory in the General
Preamble for the Implementation of Title I of the Clean Air Act
Amendments of 1990, April 16, 1992, 57 FR 13498, 13502, indicating that
the inventory should be for calendar year 1990 and should include both
anthropogenic and biogenic sources of volatile organic compounds
(VOCs), nitrogen oxides (NOX), and carbon monoxide (CO). The inventory
should address actual emissions of these pollutants during the peak
ozone season in the nonattainment area as well as emissions from
sources emitting greater than 100 tons per year in a 25-mile buffer
zone around the nonattainment area. The inventory should include all
point and area sources, as well as all highway and non-highway (non-
road) mobile sources.
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\1\ The Phoenix metropolitan area was recently reclassified
from moderate to serious for ozone. 62 FR 60001 (November 6, 1997).
This reclassification does not affect the requirement for a 1990
base year inventory or a 15 percent ROP demonstration.
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2. 15 Percent ROP Plans
Section 182(b)(1)(A) of the CAA requires State's with ozone
nonattainment areas classified as moderate and above to develop plans
to reduce VOC emissions by 15 percent, net of growth, from the 1990
baseline. The 15 percent rate of progress (ROP) plans were to be
submitted by November 15, 1993, and the reductions were required to be
achieved by November 15, 1996.
For the 15 percent ROP plans, the CAA sets limitations on the
creditability of certain types of reductions. Specifically, a state
cannot take credit for reductions achieved by Federal Motor Vehicle
Control Program (FMVCP) measures promulgated prior to 1990, or for
reductions resulting from requirements to lower the volatility (Reid
Vapor Pressure (RVP)) of gasoline promulgated prior to 1990 or required
under section 211(h) of the CAA, which restricts gasoline RVP.
Furthermore, the CAA does not allow credit for corrections to vehicle
inspection and maintenance (I/M) programs or corrections to Reasonably
Available Control Technology (RACT) rules as these programs were
required prior to 1990.
Although the November 15, 1996 deadline has now passed, the 15
percent ROP requirement remains. Once a statutory deadline has passed
and has not been replaced by a later one, the deadline then becomes as
soon as possible. Delaney v. EPA, 898 F.2d 687, 691 (9th Cir. 1990).
EPA has interpreted this requirement to be ``as soon as practicable''
(55 FR 36458, 36505 (September 9, 1990)); therefore, to demonstrate
that the Phoenix area has met the CAA section 182(b)(1) requirement, it
must be demonstrated that the 15 percent reduction will be achieved as
soon as practicable by showing that the applicable implementation plan
contains all VOC control measures that are practicable for the Phoenix
area and that meaningfully accelerate the date by which the 15 percent
level is achieved.
EPA has developed guidance that specifically addresses the
crediting of post-1996 emission reductions in 15 percent ROP
demonstrations. Under EPA policy, reliance on post-1996 emission
reductions in the 15 percent plan necessitates that the 1996 target
level of emission reductions be revised to remove the additional
emission reductions from the FMVCP and federal RVP regulations between
1996 and the year 15 percent is actually to be demonstrated. References
2, 3 and 4.
EPA's policy regarding 15 percent ROP plans can be found in the
General Preamble (57 FR 13498, 13507) and other EPA guidance documents
referenced in this document and found in the docket for this
rulemaking.

B. Phoenix's 15 Percent ROP Plan

The State of Arizona submitted the initial 15 percent rate of
progress plan for the metropolitan Phoenix area (The Maricopa
Association of Governments 1993 Ozone Plan for the Maricopa County
Area, November 1993 (1993 MAG Plan)) on November 15, 1993 and an
Addendum (March 1994) to that plan on April 8, 1994. On April 13, 1994
EPA found the initial plan incomplete because it failed to include, in
fully

[[Page 3688]]

adopted and enforceable form, all of the measures relied upon in the 15
percent demonstration. This incompleteness finding started the 18-month
sanction ``clock'' in CAA section 179 and the two-year clock under
section 110(c) for EPA to promulgate a federal implementation plan
(FIP) covering the 15 percent ROP requirement. Subsequently in November
1994 and April 1995, Arizona submitted an attainment plan for the
Phoenix area which updated the 15 percent ROP demonstrations.
² On May 12, 1995, EPA found the revised 15 percent plan and
the attainment plan complete, turning off the sanctions clock; however,
under section 110(c), the FIP clock continues until EPA approves the 15
percent plan. Since 1995, EPA has acted to approve many of the control
measures contained in these plans but has not yet acted on the overall
15 percent plan.
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\2\ The State also submitted its Voluntary Early Ozone Plan for
the Metropolitan Phoenix Area (VEOP) on April 21, 1997. This plan
contains several additional VOC control measures but does not
include any revisions to the demonstration in the previously
submitted 15 percent plan.
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The 15 percent ROP demonstration in the MAG 1993 Plan relied
primarily on improvements to the State's vehicle emissions inspection
and maintenance program (I/M), a summertime gasoline volatility (RVP)
limitation of 7.00 pounds per square inch (psi), numerous stationary
and area source control measures, and a number of transportation
control measures.
Improvements to the State's I/M program (known as the Vehicle
Emissions Inspection Program (VEIP)) included biennial IM240 transient
testing for model year 1981 and newer vehicles, more stringent testing
cut points (the tailpipe emissions levels at which cars are failed),
pressure and purge testing, increased waiver limits, improvements to
the anti-tampering program, and a remote sensing program. These I/M
improvements accounted for 50 percent of the emission reductions
necessary to show the required ROP. See 1993 Ozone Plan Addendum, page
3-6. In designing its enhanced VEIP, Arizona relied in good faith on
the technical specifications and associated emission reductions in
EPA's enhanced I/M regulations, 40 CFR part 51, subpart S as
promulgated on November 5, 1992 (57 FR 52950).
Arizona began to implement the improvements to its I/M program in
early 1995 and quickly determined that EPA's pressure and purge test
could not be implemented in practice in I/M testing lanes, and
consequently suspended the tests. The State subsequently redesigned the
pressure test and began implementing it in 1996. No effective purge
test, however, is currently available. EPA continues to work to develop
such a test and Arizona remains committed to implementing a test when
it becomes available.
Early testing of the final cut points assumed in the State's 15
percent plan also indicated that they would not work in practice
because of unacceptably high false failure rates (i.e., failing cars
that should have passed) of up to 50 percent. Arizona is currently
working to develop alternatives to the final cut points and intends to
begin implementing those alternatives as early as 1999.
The purge test and the final cut points accounted for roughly 60
percent of the total emission reductions expected from the VEIP and 30
percent of the emission reductions necessary to show 15 percent ROP. In
part to replace these lost emission reductions and in part to ensure
continued progress toward attainment of the ozone standard in the
Phoenix area, the State opted into EPA's federal reformulated gasoline
program in 1997 (60 FR 30260 (June 3, 1997)) and has recently adopted
its own, more stringent Cleaner Burning Gasoline (CBG) program as well
as other control measures. EPA proposed to approve the State's CBG
program on November 20, 1997. 62 FR 61942.

C. EPA's 15 Percent ROP Plan Obligation

In August 1996, EPA was sued by the American Lung Association of
Arizona, ALAA v. Browner, No. CIV 96-1856 PHX ROS (D.Ariz.). This case
sought to enforce EPA's obligation under CAA section 110(c) to
promulgate a federal plan for the 15 percent ROP requirement. On July
8, 1997 a consent decree was filed with the U.S. District Court for the
District of Arizona establishing a schedule of January 20, 1998 for
proposing and May 18, 1998 for promulgating a 15 percent ROP plan.
Under the consent decree, EPA's obligation to promulgate a plan is
relieved to the extent that it has approved State measures.
The State's 15 percent plan as revised and submitted in 1993
through 1995 does not reflect the changes to the control strategy
necessitated by the problems with enhanced I/M and the implementation
of the federal RFG program. In addition, EPA guidance requires a
recalculation of the 15 percent target emission level if post-1996
emissions reductions (such as those from the RFG program) are to be
credited to the 15 percent plan. As a result, EPA does not have in
front of it a complete state submittal containing a revised 15 percent
ROP demonstration that it could act on without additional analysis,
public hearing and adoption by the State. Consequently in this
document, EPA is proposing to find, based on its own analysis of the
available emission reductions, that the State has sufficient measures
to provide for the 15 percent reduction.

II. EPA's Evaluation

A. 1990 Base Year Emission Inventory

EPA is proposing to approve the State's 1990 base year emissions
inventory for the Phoenix metropolitan area and to use it, with minor
modifications, as the basis for the 15 percent ROP demonstration.
As specified in EPA guidance (Reference 1, p. 13502), the 1990 base
year inventory is composed of annual and seasonal inventories of actual
(as opposed to permitted or potential) VOC, NOX, and CO
emissions in the Phoenix ozone nonattainment area as well as actual
emissions from all large point sources within a 25-mile buffer zone
around the nonattainment area.
EPA proposes to approve the base year inventory because it is (1)
accurate in that it uses established estimation and measurement methods
approved by EPA; (2) comprehensive in that it estimates emissions from
all categories of sources for the three ozone precursors; and (3)
current in that it provides estimates of actual emissions for the 1990
base year as required.
Table 1 provides a summary of the baseline emissions inventory.

Table 1.--Metropolitan Phoenix 1990 Baseline Emissions Inventory
(Metric tons per day)
------------------------------------------------------------------------
Source type VOC NOX CO
------------------------------------------------------------------------
Point Sources................................ 25.6 70.9 13.8
Area Sources................................. 111.8 7.4 3.9
On-Road Mobile............................... 136.2 130.1 911.5
Non-Road Mobile.............................. 57.9 85.2 521.1
Biogenic..................................... 37.3 ....... .......
--------------------------
Total.................................... 368.8 293.6 1450.3
------------------------------------------------------------------------
Source: 1993 Ozone Plan, Appendix B, Exhibit 1.

For use in its 15 percent ROP analysis, EPA has slightly modified
the State's 1990 base year inventory to reflect the Agency's delisting
of perchloroethylene (used primarily as a drycleaning solvent) as a VOC
(61 FR 4588 (February 7, 1996)), a revised version of EPA's MOBILE5a
on-road motor vehicle emission estimation model, and slightly revised
inputs to that model to be consistent with base

[[Page 3689]]

year and future year analyses.³ These modifications
decreased the submitted base year area source inventory by 1.2 metric
tons per day and the on-road mobile source inventory by 0.6 metric tons
per day for a total decrease of 1.8 metric tons per day.
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\3\ The modifications that EPA used in its analysis do not
affect the approvability of the State's 1990 base year emissions
inventory. The delisting of perchloroethylene occurred after the
statutory due date for the inventory. In addition, states were not
required to upgrade to the later version of MOBILE5a for their base
year inventories. Reference 5. Finally, the principle MOBILE5a
modification was to use minimum and maximum daily temperatures to
calculate temperature corrections to VOC exhaust emissions, hot soak
evaporative emissions, and resting loss and running loss emissions
instead of a single ambient temperature as was done by Arizona.
Although EPA does not recommend the use of a single ambient
temperature to calculate these emissions, the impact on the base
year inventory in this case is so slight (less than 0.6 metric tons
per day out of an inventory of 136 metric tons per day or less than
0.5 percent) as to not constitute grounds for disapproval.
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B. Calculation of the 15 Percent ROP Target

A number of steps are necessary to calculate the 15 percent ROP VOC
target emission level. First, the 1990 base year inventory must be
revised to exclude sources outside the nonattainment area, biogenic
emissions, and any VOC emission reductions that will accrue from the
FMVCP and federal RVP standards during the 1990-1996 period. The
resulting inventory is referred to as the ``adjusted base year
inventory.'' For 15 percent ROP plans that rely on post-1996 emissions
reductions, the adjusted base year inventory must also exclude any VOC
emission reductions resulting from the FMVCP and federal RVP standards
from 1996 until the projected date by which the 15 percent ROP will be
demonstrated (henceforth referred to as the demonstration year). See
Reference 4. Procedures for calculating emission reductions from the
FMVCP and federal RVP standards are discussed in Reference 1 (page
13507) and Reference 6. Table 2 presents the adjusted base year
inventory.

Table 2.--Adjusted Base Year Inventories
------------------------------------------------------------------------
Adjusted
base year
Adjustment inventory
(mt VOC/d) (mt VOC/d)
------------------------------------------------------------------------
1990 Base year inventory...................... ........... 367.0
Stationary sources outside of the
nonattainment area........................... -1.8 ...........
Biogenic emissions............................ -37.3 ...........
1990 nonattainment area base year
anthropogenic inventory...................... ........... 327.9
FMVCP/RVP 1990-1996........................... -47.4 ...........
Adjusted base year inventory (1996)........... ........... 280.5
------------------------------------------------------------------------

The target level of VOC emissions for demonstrating 15 percent ROP
is then calculated by multiplying the adjusted base year inventory by
0.15, adding the VOC reductions from any RACT and/or I/M corrections
and from the FMVCP and federal RVP regulations, then subtracting this
total from the 1990 nonattainment area base year anthropogenic
inventory.

Table 3.--15 Percent Rate of Progress Target Levels
(Metric tons of VOC/day)
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(C) 1990 (H) 1996
(A) 1990 (B) Red. adj. base (D) 15% (E) Red. (F) RACT & (G) Needed target
July 1, year ROP base from FMVCP/ year EI (A- target from FMVCP/ I/M Red (B + D emission
year EI RVP (90-96) B) (0.15 x C) RVP (96-99) corrections + E + F) level (A-G)
--------------------------------------------------------------------------------------------------------------------------------------------------------
1996............................................ 327.9 47.4 280.5 42.1 ........... 2.3 91.8 236.1
1998............................................ 327.9 47.4 280.5 42.1 3.4 2.3 95.2 232.7
1/1/1999........................................ 327.9 47.4 280.5 42.1 4.2 2.3 96.0 231.9
4/1/1999........................................ 327.9 47.2 280.5 42.1 4.6 2.3 96.4 231.5
1999............................................ 327.9 47.4 280.5 42.1 5.0 2.3 96.8 231.1
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Note: January 1, 1999 and April 1, 1999 values are interpolated between 1998 and 1999 values.

To demonstrate a 15 percent rate of progress, projected 1996
emissions, accounting for growth after 1990 and including any
adjustments for FMVCP/RVP emission reduction occurring after 1996, must
be at or below the target emission level.

C. 15 Percent Demonstration

EPA proposes to determine that the Phoenix area will have
sufficient controls in place by no later than April 1, 1999 to meet the
15 percent rate of progress requirement and that this date is the most
expeditious date practicable for achieving the 15 percent target based
on the set of controls EPA has proposed for crediting in the 15 percent
demonstration and the unavailability of any other practicable controls
that could advance the date.
Table 4 presents the projected controlled 1996 inventory and Table
5 lists the control measures that make up the 15 percent demonstration.
EPA notes that the State included a number of adopted and implemented
control measures in its 15 percent plan and Voluntary Early Ozone Plan
that have not been credited in this 15 percent demonstration because
they are not yet in the SIP. These measures remain creditable in future
ROP demonstrations to the extent they are SIP approvable.

Table 4.--1996 Projected Inventory for April 1, 1999 Demonstration
------------------------------------------------------------------------
Emissions
Source Category (mt VOC/
day)
------------------------------------------------------------------------
On-Road.................................................... 76.7
Non-Road................................................... 43.0
Point...................................................... 18.2
Area....................................................... 93.3
Total...................................................... 231.2
Target Level............................................... 231.5
Surplus emission reductions................................ 0.3
------------------------------------------------------------------------

[[Page 3690]]

Table 5.--Control Measures Making Up the 15 Percent Demonstration
------------------------------------------------------------------------
Adjusted 1996
Category Approval status reduction (mt
VOC/d)
------------------------------------------------------------------------
Arizona Vehicle Emissions Approved 60 FR 22518 3.3
Inspection Program. (May 8, 1995).
Arizona Summertime Gasoline Approved 62 FR 31734 13.0
Volatility Limitation (7.00 psi (June 11, 1997).
RVP) (on-road and nonroad).
Federal RFG--Phase I (on-road and Approved June 3, 6.0
nonroad). 1997 (62 FR 30260).
National Phase I Non-Road Engines Promulgated July 3, 9.1
Standards. 1995 (60 FR 34582).
MCESD Rules 331, 336, 337, 342, Approval signed 1/20/ 11.3
346, and 351. 97.
Stage II vapor recovery........... Approved 11/1/94 (59 9.8
FR 54521).
MCESD Rule 335 architectural Approved 1/6/92 (57 2.9
coatings. FR 354).
Autobody refinishing (national National rule 1.4
rule). proposed April 30,
1996 (61 FR 19005)
and December 30,
1997 (62 FR 67784).
Consumer products (national rule). National rule 2.4
proposed April 2,
1996 (61 FR 14531).
Architectural and industrial National rule 0.6
coatings (national rule). proposed June 25,
1996 (61 FR 32729).
Total............................. .................... 59.8
------------------------------------------------------------------------

Arizona Vehicle Emissions Inspection Program
Enhancements to Arizona's vehicle emission inspection program were
approved by EPA in 1995 and included IM240 testing for 1981 and newer
vehicles, pressure and purge testing, and tighter cut points.
Enhancements to the program were implemented beginning in January,
1995. Emission reductions credited in the 15 percent demonstration
reflect the program as actually implemented in 1996 (that is, without
the final cut points or the purge test) and assume no further
improvements.
Arizona's enhanced I/M program also includes a remote sensing
program (RSP). The EPA's proposed 15 percent ROP demonstration,
however, does not currently include any reductions from this program.
The State has estimated reductions from the RSP of 3.7 metric tons of
VOC per day in 1996 based on the analysis in the 1993 MAG plan
⁴ (Reference 7); however, EPA does not currently have
sufficient information to determine an appropriate credit for use in
its own analysis. EPA proposes to credit the non-enhanced RSP with up
to 3.7 metric tons per day if it obtains sufficient information to
determine the appropriate credit.
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\4\ Since EPA's approval of the State's VEIP, the State has
enhanced the implementation of the RSP. This measure is not
currently in the SIP. The State's reduction estimate is for the non-
enhanced program.
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Summertime Gasoline Volatility Limit (7 psi RVP)
The State's 7 psi summertime gasoline volatility limit was fully
implemented in 1996. Emission reduction credit proposed for the 15
percent plan assumes a decrease in the RVP limit from the federally-
required 7.8 psi to 7 psi and is calculated for both on-road motor
vehicles and non-road gasoline-powered vehicles.
Federal Reformulated Gasoline Program--Phase I
The Federal reformulated gasoline program became effective in the
Phoenix area at the retail level on August 4, 1997. 62 FR 30260 (June
3, 1997). As with RVP, the program affects both on-road motor vehicle
emissions and non-road gasoline-powered engine emissions. The proposed
emission reduction credit for RFG includes emission reductions from
both categories.
Arizona has adopted its own Clean Burning Gasoline (CBG) Program to
replace the federal RFG program beginning in June, 1998. EPA has
recently proposed to approve that program and Arizona has requested to
opt-out of the Federal RFG program should EPA grant final approval to
its CBG program. Since the State's program has been designed to achieve
more emission reductions than available under EPA's RFG regulations,
there will be no loss of emission reductions as the Phoenix area
transitions from the federal to the state program; therefore, for the
purposes of this 15 percent demonstration, EPA proposes to grant
emission reductions equivalent to those proposed above for the federal
RFG program. If EPA approves the CBG program, the Agency will give it
the same credit as federal RFG for the purposes of the 15 percent
demonstration. Emissions reductions from the CBG program, if approved
by EPA, that are in excess of those proposed for credit above may be
used by the State in any future rate-of-progress demonstrations.
Phase I Non-road Engine Standards
On July 3, 1995, EPA promulgated Phase I emission standards for new
spark-ignition (gasoline) engines of 25 horsepower or less. These
engines include those typically used in lawnmowers and other
residential gardening equipment, commercial lawn and garden equipment,
and small pumps and compressors, and some other industrial/construction
equipment. The Phase I standards were effective with model year 1997
engines and are expected to reduce VOC emissions from the impacted
equipment types by 22.9 percent in 1999. See Reference 8.
Stage II Vapor Recovery
EPA approved Arizona's Stage II Vapor Recovery rules (Arizona
Revised Statutes Secs. 41-2131 through 2133 and Arizona Administrative
Code R4-31-901 through R4-31-910) in 1994. This program required the
installation of California Air Resources Board (CARB) certified stage
II vapor recovery equipment at service stations by November 15,
1994.⁵
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\5\ In its 15 percent plan, the State did not explicitly
identify several measures that had been implemented after 1990 but
prior to the development of the plan even though these measures are
fully creditable in 15 percent plans. These measures include the
Stage II vapor recovery program and the final limits in Maricopa
County's architectural coating rule. The State, however, did
incorporate reductions from these measures into the projected 1996
inventory. For the purposes of EPA's analysis, these measures and
their associated reductions (which are identical to the ones
calculated by the State) have been explicitly identified.

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[[Page 3691]]

MCESD Rules
Concurrently with this proposal, EPA has approved MCESD Rules 331,
336, 337, 342, 346, and 351 into the SIP. Rule 331 limits the emissions
of VOCs from surface cleaning and degreasing operations. Rule 336
limits emissions from surface coating operations. Rule 337 limits
emissions of VOCs from screen, gravure, letterpress, flexographic and
lithographic printing processes, including related coating and
laminating processes. Rule 342 controls the emissions of VOCs emanating
from applying coatings of finishing materials to furniture or fixtures
made of wood or wood derived materials. Rule 346 limits VOC emissions
from the surface preparation and coating of wood millwork such as
shutters, doors, windows and their associated woodwork, and Rule 351
controls emissions of VOCs from organic liquid loading operations at
bulk plants and bulk terminals. These rules, which affect emissions
from both point and area sources, result in a total reduction of 9.2
metric tons per day from point sources and 2.1 metric ton per day from
area sources.
Architectural Coatings
EPA approved MCESD's Rule 335 Architectural Coatings in 1992. This
rule had a number of compliance deadlines in 1991 and reductions from
these final deadlines are fully creditable to the 15 percent plan. See
also Footnote 5.
Consumer Products
On April 2, 1996, EPA proposed national VOC emission standards for
24 categories of consumer products requiring compliance with the
standards by 1997. Under EPA policy, 15 percent demonstrations may
credit an overall 20 percent reduction in emissions from the consumer
products categories covered by this rule. Reference 9. For Maricopa
County, this rule will reduce VOC emissions from consumer products by
an estimated 2.4 metric tons per day.
This measure, as well as the national autobody refinishing rule and
the national architectural and industrial maintenance coating rule
discussed in the following sections are statutorily required. See CAA
section 183(e) and ``Consumer and Commercial Products: Schedule for
Regulation,'' 60 FR 15264 (March 23, 1995). The Agency anticipates at
this time that rules will be finalized by mid-1998. EPA has recently
been sued to enforce the requirement to promulgate these rules and is
currently discussing a schedule for their promulgation. Sierra Club v.
Browner, CIV No. 97-984 PLF (D.D.C.).
The fact that these rules are required federal rules, and will
likely soon have court-ordered deadlines, creates circumstances that
allow EPA to consider them as part of 15 percent plans. Taking credit
for reductions from proposed required federal measures is consistent
with the overall scheme of the Clean Air Act ozone nonattainment
provisions, as well as the relevant provisions by their terms. Congress
anticipated that these federal measures would contribute to both
progress toward attainment and attainment of the ozone standard and
thus these measures are an integral part of Congress' blueprint for
ozone attainment. Therefore, EPA concludes that implementation plans
should be allowed to account for those reductions in both attainment
and rate-of-progress plans. See Reference 10 and 61 FR 10920, 10936
(March 18, 1996).
Among the categories covered by the national rule for consumer
products is windshield wiper fluids. MCESD has also adopted Rule 344 to
control emissions from windshield wiper fluids. EPA is currently
discussing the enforceability of the rule with the County and has not
approved the measure into the SIP, hence the emission reductions from
this category are based on the national rule and not Rule 344.
Autobody Refinishing
On April 30, 1996 and December 30, 1997, EPA proposed a national
rule governing emissions from autobody refinishing coatings. Under EPA
policy (Reference 11), a 37 percent reduction in emissions from
autobody refinishing may be credited to this national rule. For
Maricopa County, this rule will reduce VOC emissions from autobody
refinishing by an estimated 1.4 metric tons per day.
MCESD has also adopted Rule 345 to control emissions from autobody
refinishing. EPA is currently discussing the enforceability of this
rule with the County and has not approved the measures into the SIP,
hence the emission reductions from this category are based on the
national rule and not Rule 345.
Architectural and Industrial Maintenance Coatings
On June 25, 1996 EPA proposed a national rule limiting the VOC
content of numerous categories of architectural and industrial
maintenance (AIM) coatings. Under EPA policy (Reference 12), a 20
percent reduction in emissions from the AIM coatings rule may be
credited to this national rule for areas without architectural coating
rules. As discussed above, Maricopa County already has in place Rule
335 that limits VOC content of architectural coatings. The national
rule, as proposed, includes new or tighter limits than are currently in
Rule 335 for a number of coating categories (e.g., traffic marking);
therefore, the Phoenix area will realize additional emission reductions
from the national rule of 0.6 metric tons per day by mid-1999.

D. ``As Soon As Practicable'' Demonstration

As discussed above, CAA section 182(b)(1) requires that all
moderate and above ozone nonattainment areas prepare plans that provide
for a 15 percent VOC emission reduction by November 15, 1996. Since
this deadline has passed, in order to demonstrate that the Phoenix area
has met the CAA section 182(b)(1) requirement, it must be demonstrated
that the 15 percent reduction will be achieved as soon as practicable
by showing that the applicable implementation plan contains all VOC
control measures that are practicable for the Phoenix area and that
meaningfully accelerate the date by which the 15 percent level is
achieved. Measures that provide only an insignificant additional amount
of reductions or could not be implemented soon enough to meaningfully
advance the date by which the 15 percent is demonstrated are not
required to be implemented to meet this test.
For the purposes of this 15 percent demonstration only, EPA is
proposing to interpret ``significant emission reduction'' to be equal
to or more than one-half of one percent (0.5 percent) of the total
emission reduction needed to meet the 15 percent ROP requirement in
1999 for the Phoenix nonattainment area. One-half of one percent is 0.5
metric tons per day.
For the purposes of this 15 percent demonstration only, EPA is also
proposing to interpret ``to meaningfully accelerate the date by which
the 15 percent is demonstrated'' to mean three or more months. Because
April 1 is before the June 1 start of the Phoenix ozone season, the
ambient air quality benefit that would be gained by advancing the
demonstration date by less than three months in advance of April 1
would not justify the implementation of additional federal measures in
the Phoenix area for the purposes of demonstrating 15 percent. On the
other hand, to advance the benchmark demonstration date for the ``as
soon as practicable'' test much more than three months (that is, before

[[Page 3692]]

January 1, 1999) would leave so little time between the projected
effective date of this action (July 1, 1998) and the benchmark
demonstration date that no measure could be reasonably implemented in
that short time period. Based on this reasoning, EPA believes that
three months is an appropriate benchmark for this ``as soon as
practicable'' test in this case.
Based on its analysis and the set of SIP-approved and federal
measures proposed for credit above, EPA is projecting that the Phoenix
area will meet the required 15 percent reduction no later than April 1,
1999. An additional emission reduction totaling at least 0.6 metric
tons per day would be needed by January 1, 1999 to advance the
demonstration date to January 1, 1999. See TSD, Section III.D.
Therefore, to show that April 1, 1999 is the ``as soon as practicable
date'' to demonstrate a 15 percent ROP for the Phoenix area, it must be
shown that there are no measures that achieve a 0.6 metric tons per day
reduction by January 1, 1999.
EPA analyzed a number of control measures that could potentially
advance the date by which the 15 percent reduction is demonstrated in
the Phoenix area and has found that there are no measures or
combination of measures that would advance the date by more than a de
minimis amount. These measures included ones recommended by EPA (see
``Sample City Analysis Comparison of Enhanced I/M Reductions Versus
Other 15 Percent ROP Plan Measures,'' which is an attachment to
Reference 2), by the State and Territorial Air Pollution Program
Administrators/Association of Local Air Pollution Control Officials
(see ``Meeting the 15-Percent Rate-of-Progress Requirement Under the
Clean Air Act: A Menu of Options,'' STAPPA/ALAPCO, September 1993), and
in the Report of the Governor's Air Quality Strategies Task Force
(December 2, 1996), and the ``Reanalysis of the Metropolitan Voluntary
Early Ozone Plan,'' ADEQ et al, October 1997.
Most of the measures EPA analyzed generated very small additional
emission reductions by January 1, 1999 (e.g., a complete ban on open
burning) or could not be implemented to achieve emission reduction
before January 1, 1999 (e.g., I/M improvements). In many cases, the
State is already developing (e.g., industrial cleaning solvents) or had
already adopted a similar measure (e.g., graphic arts) so that little,
if any, additional reductions would be achieved by a federal measure.
The complete analysis of potential measures is contained in the TSD for
this proposal.
Based on this analysis, EPA has concluded that there are no
reasonable measures or combination of reasonable measures that could
meaningfully advance the demonstration date; therefore, the Agency
proposes to find that April 1, 1999 is the most expeditious date
practicable to demonstrate the 15 percent reduction.

III. Conclusion

Pursuant to its authority under CAA section 110(c) and for the
reasons discussed above, EPA is proposing to determine that the Phoenix
metropolitan area has in place or will have in place sufficient control
measures to meet the 15 percent ROP requirement for VOCs in CAA section
182(b)(1)(A) as soon as practicable. This proposed determination is
predicated on EPA's reanalysis of the State's 15 percent ROP plan to
reflect the realities of the VEIP, reductions from additional controls
adopted by the State, and additional federal regulations.
EPA is also proposing to approve the State's 1990 base year
inventory under CAA sections 110(k)(2) and 182(a)(1).

IV. Administrative Requirements

A. Executive Order (E.O.) 12866

The Office of Management and Budget has exempted this action from
E.O. 12866 review.

B. Regulatory Flexibility Act

Under the Regulatory Flexibility Act, 5 U.S.C. 601 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 economic 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.
This proposal simply presents the analysis of the emission impacts
on the Phoenix metropolitan area of already adopted or proposed State
and federal rules. This action neither proposes the promulgation of
additional measures nor requires Arizona or its local jurisdictions to
adopt or implement additional measures beyond those that they currently
have adopted and implemented or have been proposed or implemented at
the federal level. As such, it does not propose to regulate any
entities. Therefore, pursuant to 5 U.S.C. 605(b), EPA certifies that
today's proposed action does not have a significant impact on a
substantial number of small entities within the meaning of those terms
for RFA purposes.

C. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), P.L.
104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, EPA
generally must prepare a written statement, including a cost-benefit
analysis, when EPA promulgates ``any general notice of proposed
rulemaking that is likely to result in promulgation of any rule that
includes any Federal mandate that may result in the expenditures by
State, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more'' in any one year. A ``Federal
mandate'' is defined, under section 101 of UMRA, as a provision that
``would impose an enforceable duty'' upon the private sector or State,
local, or tribal governments'', with certain exceptions not here
relevant. Under section 203 of UMRA, EPA must develop a small
government agency plan before EPA ``establish[es] any regulatory
requirements that might significantly or uniquely affect small
governments''. Under section 204 of UMRA, EPA is required to develop a
process to facilitate input by elected officers of State, local, and
tribal governments for EPA's ``regulatory proposals'' that contain
significant Federal intergovernmental mandates. Under section 205 of
UMRA, before EPA promulgates ``any rule for which a written statement
is required under [UMRA section] 202'', EPA must identify and consider
a reasonable number of regulatory alternatives and either adopt the
least costly, most cost-effective or least burdensome alternative that
achieves the objectives of the rule, or explain why a different
alternative was selected.
As explained above, sections 202, 203, 204, and 205 of UMRA do not
apply to today's action because it does not impose an enforceable duty
on or otherwise affect any entity. Therefore, EPA is not required and
has not taken any actions under UMRA.

List of Subjects in 40 CFR Part 52

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

[[Page 3693]]

Dated: January 20, 1998.
Carol M. Browner,
Administrator.

References

1. General Preamble for the Implementation of Title I of the Clean
Air Act Amendments of 1990, April 16, 1992, 57 FR 13498.
2. Memorandum, John S. Seitz, Director of the Office of Air Quality
Planning and Standards, and Richard B. Ossias, Deputy Associate General
Counsel to Regional Air Division Directors; ``15 Percent VOC SIP
Approvals and the `As Soon As Practicable' Test;'' February 12, 1997
including the attachment ``Sample City Analysis Comparison of Enhanced
I/M Reductions Versus Other 15 Percent ROP Plan Measures,'' E.H. Pechan
and Associates, December 12, 1996.
3. Note, Margo Oge, Director Office of Mobile Sources and John
Seitz, Director of OAPQS to Regional Division Directors; re: Date by
which States Need to Achieve all the Reductions Needed for the 15% Plan
from I/M and Guidance for Recalculation, August 13, 1996.
4. Memorandum, Gay MacGregor, Director Regional and State Programs
Division, OMS and Sally Shaver, Director, Air Quality Strategies and
Standards Division, OAQPS to Regional Air Division Directors;
``Modeling 15% VOC Reduction(s) from I/M in 1999--Supplemental
Guidance;'' December 23, 1996.
5. Memorandum, Philip A. Lorang, Director, Emission Planning and
Strategies Division, OMS to Regional Air Division Directors; ``Release
of MOBILE5a Emission Factor Model,'' March 29, 1993.
6. OAQPS, U.S. EPA. Guidance on the Adjusted Base Year Emissions
Inventory and the 1996 Target for the 15 Percent Rate of Progress
Plans. EPA-452/R-92-005. October 1992.
7. Letter, Nancy Wrona, Director, Air Quality Division, ADEQ; to
David Howekamp, Director, Air and Toxics Division, EPA-Region 9;
``Submittal of Additional Information in Support of Approval of 15%
Rate of Progress Ozone Plan for Maricopa County;'' September 11, 1997.
8. Memorandum, Philip A. Lorang, Director, Emission Planning and
Strategies Division, OMS to Regional Air Division Directors; ``Future
Nonroad Emission Reduction Credits for Court-Ordered Nonroad
Standards;'' November 29, 1994.
9. Memorandum, John S. Seitz, Director, OAQPS to Regional Air
Division Directors; ``Regulatory Schedule for Consumer and Commercial
Products under Section 182(e) of the Clean Air Act;'' June 22, 1995.
10. Memoranda, Mary Nichols, Assistant Administrator for Air and
Radiation, U.S. EPA to Regional Administrators, Regions 1-10; ``SIP
Credits for Federal Nonroad Engine Emissions Standards and Certain
Other Mobile Source Programs;'' November 23, 1994 and January 30, 1996.
11. Memorandum, John S. Seitz, Director, OAQPS to Regional Air
Division Directors; ``Credit for the 15 Percent Rate-of-Progress Plans
for Reductions from the Architectural and Industrial Maintenance
Coating Rule and the Autobody Refinishing Rule;'' November 29, 1994.
12. Memorandum, John S. Seitz, Director, OAQPS to Regional Air
Division Directors; ``Credit for the 15 Percent Rate-of-Progress Plans
for Reductions from the Architectural and Industrial Maintenance (AIM)
Coating Rule;'' March 22, 1995.

[FR Doc. 98-1765 Filed 1-23-98; 8:45 am]
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