Approval and Promulgation of Air Quality Implementation Plans; Maryland; Control of Volatile Organic Compound Emissions From AIM Coatings, 24979-24987 [05-9314]

Download as PDF 24979 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations EPA-APPROVED VIRGINIA REGULATIONS AND STATUTES—Continued State citation (9 VAC 5) * * * * * * * * * Documents Incorporated by Reference. * * * State submittal date * Northern Virginia VOC Emissions Control Area designated in 9 VAC 5–20–206. * * BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [MD166–3112; FRL–7910–2] Approval and Promulgation of Air Quality Implementation Plans; Maryland; Control of Volatile Organic Compound Emissions From AIM Coatings Environmental Protection Agency (EPA). AGENCY: Final rule. SUMMARY: EPA is approving a State Implementation Plan (SIP) revision submitted by the State of Maryland. This revision pertains to the control of volatile organic compounds (VOC) emissions from architectural and industrial maintenance (AIM) coatings. EPA is approving this SIP revision in accordance with the Clean Air Act (CAA or Act). Effective Date: This final rule is effective on June 13, 2005. DATES: Copies of the documents relevant to this action are available for public inspection during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103, and the Maryland Department of the Environment, 1800 Washington Boulevard, Suite 705, Baltimore, Maryland 21230. ADDRESSES: 13:22 May 11, 2005 * Applicable geographic area [FR Doc. 05–9313 Filed 5–11–05; 8:45 am] VerDate jul<14>2003 EPA approval date Explanation [former SIP citation] * * (e) * * * Name of non-regulatory SIP revision ACTION: State effective date Title/subject Jkt 205001 * 3/24/04 EPA approval date * * * 5/12/05 [Insert page number 9 VAC 5–20–21, Sections where the document begins]. E.1.a.(7)., E.4.a.(12) through a.(17), E.10., E.11., E.13.a.(1), and E.13.a.(2). * * Rose Quinto, (215) 814–2182, or by e-mail at quinto.rose@epa.gov. SUPPLEMENTARY INFORMATION: FOR FURTHER INFORMATION CONTACT: I. Background On May 25, 2004 (69 FR 29674), EPA published a notice of proposed rulemaking (NPR) for the State of Maryland. The NPR proposed approval of a Maryland regulation pertaining to the control of VOC from AIM coatings. The formal SIP revision was submitted by the Maryland Department of the Environment (MDE) on March 19, 2004. Other specific requirements of Maryland’s SIP revision for AIM coatings and the rationale for EPA’s proposed action are explained in the NPR and will not be restated here. On June 24, 2004, EPA received adverse comments on its May 25, 2004 proposed rulemaking. A summary of the comments submitted and EPA’s responses are provided in Section II of this document. EPA is aware that concerns have been raised about the achievability of VOC content limits of some of the product categories under the Maryland AIM coatings rule. Although we are approving this rule today, the Agency is concerned that if the rule’s limits make it impossible for manufacturers to produce coatings that are desirable to consumers, there is a possibility that users may misuse the products by adding additional solvent, thereby circumventing the rule’s intended VOC emission reductions. We intend to work with Maryland and manufacturers to explore ways to ensure that the rule achieves the intended VOC emission reductions, and we intend to address this issue in evaluating the amount of PO 00000 Frm 00045 Fmt 4700 Sfmt 4700 Additional explanation * * VOC emission reduction credit attributable to the rule. II. Public Comments and EPA Responses A. The National Paint and Coatings Association (NPCA) is one of commenters on EPA’s May 25, 2004 NPR proposing approval of Maryland’s AIM coatings rule. The NPCA has submitted to EPA, by reference, the same comments it previously submitted to MDE on Maryland’s proposed version of its AIM coatings rule during the State’s adoption process. The NPCA also commented that it endorses and incorporates by reference the comments submitted by the Sherwin Williams Company (SWC) to EPA on the May 25, 2004 NPR proposing approval of Maryland’s AIM coatings rule. The following summarizes the comments presented to Maryland by the NPCA during the State’s adoption of its AIM rule and EPA’s response to those comments as they pertain to its May 25, 2004 NPR proposing approval of Maryland’s AIM coatings rule: 1. Comment: The NPCA has developed an alternative proposal to the Maryland AIM coatings rule (Ozone Transport Commission (OTC) model rule). The NPCA believes that its proposal should be considered by MDE as a viable alternative to the OTC model rule. 2. Comment: The NPCA suggests revising the Maryland AIM coatings rule to include an averaging program, modeled after the California Air Resources Board (CARB) program, and administered on a regional basis. 3. Comment: The NPCA suggests revising the Maryland AIM coatings rule E:\FR\FM\12MYR1.SGM 12MYR1 24980 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations to include a coating-specific variance provision. 4. Comment: The NPCA suggests revising the Maryland AIM coatings rule to include a scheduled technology assessment by MDE and/or OTC AIM workgroup on the appropriateness of implementing all of the future VOC limits. 5. Comment: The NPCA suggests revising the Maryland AIM coatings rule to make the reporting requirements consistent with other OTC states’ AIM coating rules by amending section 13. Reporting Requirements, to eliminate the annual reports for clear brushing lacquers, rust preventive coatings, and specialty primers, sealers and undercoaters. The NPCA recommends MDE replace this requirement with one that only requires the manufacturers to maintain records of the sales of these AIM products and report these sales only when requested by MDE. 6. Comment: NPCA suggests revising the Maryland AIM coatings rule to make section 06. Most Restrictive VOC limit, consistent with other OTC states’ rules by adding the following four additional categories to the list: Calcimine recoaters, impacted immersion coatings, nuclear coatings, and thermoplastic rubber coating and mastic. 7. Comment: The NPCA suggests revising the Maryland AIM coatings rule to eliminate the special labeling requirement for conversion varnishes which requires manufacturers to prominently display the words ‘‘For Professional Use Only’’ on each can of conversion varnish to make the labeling requirements of the Maryland AIM coatings rule consistent with other OTC states’ AIM rules. Response: With regard to the comments submitted by the NPCA to Maryland on its proposed AIM coatings rule and subsequently, by reference, to EPA on its May 25, 2004 proposed approval of Maryland’s March 19, 2004 SIP revision request, it is important to understand EPA’s role with regard to review and approval or disapproval of rules submitted by states as SIP revisions. EPA can only take action upon the final adopted version of a state’s regulation as submitted by that state in its SIP revision request. It is not within EPA’s authority, by its rulemaking on the SIP revision or otherwise, to change or modify the text or requirements of a state regulation. Therefore, EPA cannot modify Maryland’s AIM regulation as suggested in the comments submitted by the NPCA. Prior to approving a SIP revision request submitted by a state, EPA reviews the submission to ensure that the state provided the opportunity for VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 comment and held a hearing(s) on the proposed state regulation that is at issue in the SIP revision pursuant to section 110(a) of the Act. In this case, Maryland’s March 19, 2004 submission of its AIM coatings rule to EPA includes the necessary documentation to demonstrate that it met these requirements. Maryland’s March 19, 2004 SIP revision submission is included in the docket of this rulemaking. A complete SIP revision submission from a state includes copies of timely comments properly submitted to the state on the proposed SIP revision and the state’s responses to those comments. Maryland’s March 19, 2004 submission of its AIM coatings rule as a SIP revision to EPA properly includes both the comments submitted on its proposed AIM coatings rule and Maryland’s responses to those comments. B. As noted previously, SWC is the other commenter on EPA’s May 25, 2004 NPR proposing approval of Maryland’s AIM coatings rule. As stated previously, the comments from NPCA incorporate by reference and endorse these comments submitted by SWC. The following summarizes the comments submitted by SWC and the NPCA (by reference) and EPA’s responses: 1. Comment: Using Flawed Data Violates the Data Quality Objectives Act and Administrative Procedures Act— The commenters assert that the Maryland AIM coatings rule is based on flawed data and that the use of this data violates the Data Quality Objectives Act (‘‘DQOA’’) (Section 515(a) of the Treasury and General Government Appropriations Act for Fiscal Year 2001 (Pub. L. 106–554; H.R. 5658)). The data at issue is contained in what the commenters characterize as a ‘‘study prepared by E.H. Pechan & Associates’’ (Pechan Study) in 2001. The alleged flaws relate to projected emissions reductions calculated in the Pechan Study. The commenters assert that certain of the underlying data and data analyses are allegedly ‘‘unreproduceable.’’ Further, the commenters assert that if better data were used, the OTC model AIM coatings rule would achieve greater VOC emissions reductions, relative to the Federal AIM coatings rule, than was calculated in the Pechan Study (54 percent reduction versus 31 percent reduction), even if certain source categories were omitted from regulation under the OTC rule. For these reasons, the commenters state that EPA must not PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 approve the proposed Maryland AIM coatings rule as a SIP revision.1 Response: EPA disagrees with this comment. What the commenters characterize as the Pechan Study is not at issue in this rulemaking. The Pechan Study was not submitted to EPA by Maryland in its request that EPA approve its AIM coatings rule.2 The validity of the Pechan Study data is not at issue because Maryland did not request approval of a quantified ount of VOC emission reduction from the enactment of its regulation.3 Rather, this AIM coatings regulation has been submitted by Maryland, and is being considered by EPA, on the basis that it strengthens the existing Maryland SIP. The commenters do not dispute that the Maryland AIM coatings rule will, in fact, reduce VOC emissions. Section 110 of the Act provides the statutory framework for approval/ disapproval of SIP revisions. Under the Act, EPA establishes NAAQS for certain pollutants. The Act establishes a joint Federal and state program to control air pollution and to protect public health. States are required to prepare SIPs for each designated ‘‘air quality control region’’ within their borders. The SIP must specify emission limitations and other measures necessary for that area to meet and maintain the required NAAQS. Each SIP must be submitted to EPA for its review and approval. EPA will review and must approve the SIP revision if it is found to meet the minimum requirements of the Act. See section 110(k)(3) of the Act, 42 U.S.C. 7410(k)(3); see also, Union Elec. Co. v. EPA, 427 U.S. 246, 265, 96 S.Ct. 2518, 49 L.Ed.2d 474 (1976). The Act 1 One of the commenters has submitted a ‘‘Request for Correction of Information’’ (RFC) dated June 2, 2004, to EPA’s Information Quality Guidelines Office in Washington, DC which raises substantively similar issues to those raised by this comment. By letter dated February 25, 2005 from Robert Brenner, Principal Deputy Assistant Administrator to the Counsel for Sherwin Williams Company, EPA responded separately to the RFC. A copy of that letter is included in the administrative record for this final rulemaking. 2 The commenters concede that the Pechan Study and related spreadsheet are not part of the record submitted to EPA by Maryland. They assert, however, that there are references to the Pechan Study in other materials submitted by Maryland. The commenters also assert that one of them submitted a copy of the Pechan Study as an exhibit to its comments; however, EPA’s review of the commenter’s submission indicates that the Pechan Study was not submitted to EPA. Whether or not the Pechan Study, or data from that study, was submitted to EPA does not alter our analyses or conclusion, described herein, that the Pechan Study is not relevant in this rulemaking. 3 The commenters assert that there is a ‘‘discrepancy as to whether Maryland has requested credits or intends to do so in the near future.’’ EPA is not aware of any discrepancy. Maryland did not request any amount of VOC reduction credits in the SIP revision that is the subject of this rulemaking. E:\FR\FM\12MYR1.SGM 12MYR1 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations expressly provides that the states may adopt more stringent air pollution control measures than the Act requires with or without EPA approval. See section 116 of the Act, 42 U.S.C. 7416. EPA must disapprove state plans, and revisions thereto, that are less stringent than a standard or limitation provided by Federal law. See section 110(k) of the Act, 42 U.S.C. 7410(k); see also Duquesne Light v. EPA, 166 F.3d 609 (3d Cir. 1999). The Pechan Study is not part of Maryland’s submission in support of its AIM coatings rule. Because Maryland’s March 19, 2004 submission does not seek approval of a specific amount of emissions reductions, the level of emissions reductions that might be calculable using data contained in the Pechan Study is irrelevant to whether EPA should approve this SIP revision.4 The only relevant inquiry at this time is whether this SIP revision meets the minimum criteria for approval under the Act, including the requirement that Maryland’s AIM coatings rule be at least as stringent as the otherwise applicable Federal AIM coatings rule set forth at 40 CFR 59.400, subpart D.5 EPA has concluded that the Maryland AIM coatings rule meets the criteria for approvability. It is worth noting that EPA agrees with the commenters’ conclusion that the Maryland AIM coatings rule is more stringent than the Federal AIM coatings rule, though not for the reasons given by the commenters, i.e., that the commenters’ 4 After submission of a request for approval of a quantified amount of emissions reductions credit due to the AIM coatings rule by the State, EPA will evaluate the credit attributable to the rule. Whatever methodology and data the State uses in such a request will become ripe for public comment. 5 The commenters assert that ‘‘it makes no difference whether Maryland is asking for credits at this time for there to be a Data Quality Act challenge,’’ apparently because the fact that material from the Pechan Study appears in the rulemaking docket for this action, there is ‘‘dissemination of flawed data.’’ This ignores that fact that EPA is taking no stance on the Pechan Study and its underlying data. That study is irrelevant to our analysis as to whether the Maryland AIM rule is approvable as a measure meeting the requirements of section 110 of the Act that strengthens the Maryland SIP. EPA is not required to address irrelevant material merely because it is in the rulemaking docket. Section 307(d)(6)(B) of the CAA (which aplies to, among other things, SIP revisions, see 42 U.S.C. 7607(d)(1)(B)), requires EPA to respond to ‘‘each of the significant comments, criticisms, and new data submitted * * * during the public comment period.’’ 42 U.S.C. 7607(d)(6)(B). The United States Supreme Court has held that ‘‘irrelevant’’ matter in the docket is not ‘‘significant’’ as that term is used in the CAA, and EPA has no duty to respond to them. See Whitman v. Amer. Trucking Ass’ns., Inc., 531 U.S. 457, n. 2 at 470 (2001). With respect to the Pechan data, we are not disseminating it, but we rather are fulfilling our statutory role as custodian of a docket containing irrelevant material submitted by third parties. VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 ‘‘better’’ data demonstrates that OTC Model AIM coatings rule achieves a 54 percent, as opposed to the Pechan Study’s 31 percent reduction in VOC emissions beyond that required by the Federal AIM coatings rule. Rather, EPA has determined that the Maryland AIM coatings rule is, on its face, more stringent than the Federal AIM coatings rule. As stated on page 1945, under ‘‘Comparison to Federal Standards’’ in the Maryland Bulletin, Volume 30, Issue 26 (December 26, 2003): ‘‘[T]his proposed action is more restrictive or stringent than the corresponding Federal standards * * *.’’ Examples of categories for which Maryland’s AIM coatings rule is facially more stringent than the Federal AIM coatings rule include, but are not limited to, the VOC content limit for non-flat high gloss coatings and antifouling coatings. The Federal AIM coatings rule’s VOC content limit for non-flat high gloss coatings is 380 grams/liter while the Maryland AIM coatings rule’s limit is 250 grams/liter, and the Federal AIM coatings rule’s VOC content limit for anti-fouling coatings is 450 grams/liter while the Maryland AIM coatings rule’s is 400 grams/liter. Examples of categories for which the Maryland AIM coatings rule is as stringent, but not more stringent, than the Federal AIM coatings rule include, but are not limited to, the VOC content limit for antenna coatings and low-solids coatings. In both rules the VOC content limits for these categories are 530 grams/liter and 120 grams/liter, respectively. Thus, on a category by category basis, EPA believes that Maryland’s AIM coatings rule is as stringent or more stringent than the Federal AIM coatings rule. Further, EPA has received no comments that the Maryland AIM coatings rule is less stringent than the Federal AIM coatings rule. 2. Comment: The MD AIM Coatings Rule Was Adopted in Violation of Clean Air Act Section 183(e)(9)—The commenters state that in 1998, after a seven-year rule development process, EPA promulgated its nationwide emission limitation for AIM coatings pursuant to Clean Air Act section 183(e). The commenters note that Maryland’s AIM coatings rule seeks to impose numerous VOC emission limits that will be more stringent than the corresponding limits in EPA’s regulation. The commenters assert that section 183(e)(9) requires that any state which proposes regulations to establish emission standards other than the Federal standards for products regulated under Federal rules shall first consult PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 24981 with the EPA Administrator. The commenters believe that Maryland failed to engage in that required consultation, and that, therefore, (1) Maryland violated section 183(e)(9) in its adoption of the Maryland AIM coatings rule, and (2) approval of the AIM coatings rule by EPA would violate, and is, therefore, prohibited by sections 110(a)(2)(A) and (a)(2)(E) of the Act. Response: EPA disagrees with this comment. Contrary to the implication of the commenters, section 183(e)(9) does not require states to seek EPA’s permission to regulate consumer products. By its explicit terms, the statute contemplates consultation with EPA only with respect to ‘‘whether any other state or local subdivision has promulgated or is promulgating regulations or any products covered under [section 183(e)].’’ The commenters erroneously construe this as a requirement for permission rather than informational consultation. Further, the final Federal AIM coatings regulations at 40 CFR 59.410 explicitly provides that states and their political subdivisions retain authority to adopt and enforce their own additional regulations affecting these products. See also 63 FR 48848, 48884 (September 11, 1998). In addition, as stated in the preamble to the final rule for architectural coatings, Congress did not intend section 183(e) to preempt any existing or future state rules governing VOC emissions from consumer and commercial products. See id. at 48857. Accordingly, MDE retains authority to impose more stringent limits for architectural coatings as part of its SIP, and its election to do so is not a basis for EPA to disapprove the submission for inclusion into the SIP. See Union Elec. Co. v. EPA, 427 U.S. at 265–66 (1976). Although national uniformity in consumer and commercial product regulations may have some benefit to the regulated community, EPA recognizes that some localities may need more stringent regulation to combat more serious and more intransigent ozone nonattainment problems. Further, there was ample consultation with EPA prior to Maryland’s adoption of its AIM coatings rule. On March 28, 2001 the OTC adopted a Memorandum of Understanding (MOU) on regional control measures, signed by all the member states of the OTC, including Maryland, which officially made available the OTC model rules, including the AIM coatings model rule. See the discussion of this MOU in the Report of the Executive Director, OTC, dated July 24, 2001, a copy of which has E:\FR\FM\12MYR1.SGM 12MYR1 24982 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations been included in administrative record of this final rulemaking. That MOU includes the following text, ‘‘WHEREAS after reviewing regulations already in place in OTC and other States, reviewing technical information, consulting with other States and Federal agencies, consulting with stakeholders, and presenting draft model rules in a special OTC meeting, OTC developed model rules for the following source categories * * * architectural and industrial maintenance coatings * * *.’’ (a copy of the signed March 28, 2001 MOU has been placed in the administrative record of this final rulemaking). Therefore, there is no validity to the commenters’ assertion that Maryland failed to consult with EPA in the adoption of its AIM coatings rule. EPA was fully cognizant of the requirements of the Maryland AIM coatings rule before its formal adoption by Maryland.6 For all these reasons, EPA disagrees that Maryland violated section 183(e)(9) in its adoption of the its AIM coatings rule, and disagrees that approval of the Maryland AIM coatings rule by EPA is in violation of or prohibited by section 110(a)(2)(A) and (a)(2)(E) of the Act. 3. Comment: The MD AIM Coatings Rule Was Adopted in Violation of Clean Air Act Section 184(c), and Approval of the SIP Revision Would, Itself, Violate That Section—The commenters believe the OTC violated Clean Air Act section 184(c)(l) by failing to ‘‘transmit’’ its recommendations to the Administrator, and that the OTC’s violation was compounded by the Administrator’s failure to review the Model Rule through the notice, comment and approval process required by Clean Air Act section 184(c)(2)–(4). The commenters assert that these purported violations of the Clean Air Act prevent Maryland from adopting the Maryland AIM coatings rule, and now prevent EPA from validly approving them as a revision to the Maryland SIP. Response: EPA disagrees with this comment. Section 184(c)(1) of the Act states that ‘‘the [OTC] may, after notice and opportunity for public comment, develop recommendations for additional control measures to be applied within all or a part of such transport region if the commission 6 While EPA reviewed the model AIM coatings rule and the draft Maryland version of that rule, EPA had no authority under the Clean Air Act to dictate the exact language or requirements of the rule. As explained previously, EPA’s role is to review a state submission to ensure it meets the applicable criteria of section 110 generally, and, in the case of an AIM rule to ensure it is at least as stringent as the otherwise applicable Federal rule. VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 determines such measures are necessary to bring any area in such region into attainment by the dates provided by this subpart.’’ It is important to note that the OTC model AIM coatings rule was not developed pursuant to section 184(c)(1), which provision is only triggered ‘‘[u]pon petition of any State within a transport region established for ozone * * *.’’ No such petition preceded the development of the model AIM coatings rule. Nor, for that matter, was development of a rule upon State petition under section 184(e)(1) meant to be the exclusive mechanism for development of model rules within the OTC. Nothing in section 184 prevents the voluntary development of model rules without the prerequisite of a state petition. Section 184 is a voluntary process and the OTC may opt for that process or another. This provision of the Act was not intended to prevent OTC’s development of model rules which states may individually choose to adapt and adopt on their own, as Maryland did, basing its AIM coatings rule on the model developed within the context of the OTC. In developing its state rule from the OTC model, Maryland was free to adapt that rule as it saw fit (or to leave the OTC model rule essentially unchanged), so long as its rule remained at least as stringent as the Federal AIM coatings rule. As previously stated, on March 28, 2001, the OTC member states signed a MOU on regional control measures, including the AIM coatings model rule. The OTC did not develop recommendations to the Administrator for additional control measures. The MOU stated that implementing these rules will help attain and maintain the 1-hour standard for ozone and were therefore made available to the states for use in developing their own regulations.7 commenters argue that section 184 either does not require a formal petition to be triggered, or alternatively, that the MOU between the OTC states qualifies as a ‘‘petition.’’ With respect to their first argument, section 184(c) says that the OTC ‘‘may, after notice and opportunity for public comment, develop recommendations for additional control measures * * *’’ and that the recommendations shall be presented to the EPA Administrator. This mechanism is triggered ‘‘upon petition of any State with a transport region established for ozone, and based on a majority vote of the Governors on the Commission (or their designees) * * *.’’ 42 U.S.C. 7511d(c)(1) (emphasis added). The clear and unambiguous language of the Act requires a petition and a vote. We reasonably interpret section 184(c), in light of the obligation to conduct a vote, to require the petition to be a manifestation of an express intent to invoke the section 184(c) process. Further, any petition would need to be sufficient in its clarity to put members on notice of their obligation to hold a vote and fulfill the other provisions of the section 184 process. We do not believe that a document which PO 00000 7 The Frm 00048 Fmt 4700 Sfmt 4700 Even though the OTC did not develop the model AIM coatings rule pursuant to section 184(c)(1) of the Act, nevertheless it provided ample opportunity for OTC member and stakeholder comment by holding several public meetings concerning the model rules including the AIM coatings model rule. The signin sheets or agenda for four meetings held in 2000 and 2001 at which the OTC AIM coatings model was discussed (some of which reflect the attendance of a representative of the EPA and/or the commenters), have been placed in the administrative record for this final rulemaking. 4. Comment: The MD AIM Coatings Rule Violates the Commerce Clause and the Equal Protection Clause of the U.S. Constitution—The commenters’ title heading of this comment states that the Maryland AIM coatings rule violates the Equal Protection Clause of the U.S. Constitution, but the text that follows that title heading provides no arguments or assertions to support this claim. In both the title heading and the text that follows, the commenters claim that the Maryland AIM coatings rule violates the Commerce Clause of Article I, section 8, of the U.S. Constitution, because it allegedly imposes an unreasonable burden on interstate commerce. The commenters assert that because the Maryland AIM coatings rule contains VOC limits and other provisions that differ from the Federal AIM coatings rule in 40 CFR 59.400, the rule imposes unreasonable restrictions and burdens on the flow of coatings in interstate commerce. The commenters further clarify that the burdens of the Maryland AIM coatings rule are excessive and outweigh the benefits of the rule. The commenters argue that EPA should disapprove the SIP revision on this basis. in hindsight might be construed as an inadvertent opt-in to the voluntary section 184 process could be the petition affirmatively intended by the Act. With respect to the argument that the MOU is in hindsight a ‘‘petition’’ triggering the section 184 rule development process, nothing in the record indicates that the OTC treated this MOU as a petition to initiate the section 184 process. This is not surprising because the MOU’s plain language recites that the model rules had already been developed that by the time the MOU was signed (‘‘WHEREAS * * * OTC developed final model rules for the following source categories * * *.’’). Under section 184(c) the petition initiates the voluntary section 184 rule development process. 42 U.S.C. 7511d(c)(1). The MOU, however, came near the end of the OTC’s model rule development process. This is a strong indication that the OTC did not intend the AIM coatings rule, or the other rules recited in the MOU, to be subject to the section 184 process. By its failure to express an intention to trigger the section 184 rule development mechanism, we reject the argument that the MOU constitutes a section 184(c) petition. The MOU neither expressly nor inadvertently opted-in the OTC states to the section 184 process. E:\FR\FM\12MYR1.SGM 12MYR1 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations Response: As indicated previously, the commenters provide no arguments or assertions as to the claim made in the title heading of this comment that the Maryland AIM coatings rule violates the Equal Protection Clause of the U.S. Constitution (see pages 12–13 of the letter dated June 24, 2005 from SWC to Docket ID No. MD166–3111, EPA Proposal To Approve SIP Revision Submitted by the State of Maryland Concerning Architectural and Industrial Maintenance (AIM) Coatings). Moreover, the text of the comment following the title heading does not reference or even make mention of the Equal Protection Clause. Lastly, in no other comment submitted by SW on EPA’s May 25, 2004 proposed approval of Maryland’s AIM coatings rule is there any mention or reference to the Equal Protection Clause of the U.S. Constitution. EPA does not believe that any provision of the Maryland AIM coatings rule violates the Equal Protection Clause of the U.S. Constitution. Regarding the comment that Maryland’s AIM coatings rule violates the Commerce Clause of the U.S. Constitution, EPA agrees with this comment only to the extent that it acknowledges that AIM coatings are products in interstate commerce and that state regulations on coatings therefore have the potential to violate the Commerce Clause. EPA understands the commenters’ practical concerns caused by differing state regulations, but disagrees with the commenters’ view that the Maryland AIM coatings rule impermissibly impinges on interstate commerce. A state law may violate the Commerce Clause in two ways: (i) By explicitly discriminating between interstate and intrastate commerce; or (ii) even in the absence of overt discrimination, by imposing an incidental burden on interstate commerce that is markedly greater than that on intrastate commerce. The Maryland AIM coatings rule does not explicitly discriminate against interstate commerce because it applies evenhandedly to all coatings manufactured or sold for use within the state. At most, therefore, the Maryland AIM coatings rule could have an incidental impact on interstate commerce. In the case of incidental impacts, the Supreme Court has applied a balancing test to evaluate the relative impacts of a state law on interstate and intrastate commerce. See, Pike v. Bruce Church, Inc., 397 U.S. 137 (1970). Courts have struck down even nondiscriminatory state statutes when the burden on interstate commerce is VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 ‘‘clearly excessive in relation to the putative local benefits.’’ Id. at 142. At the outset, EPA notes that it is unquestionable that Maryland has a substantial and legitimate interest in obtaining VOC emissions for the purpose of attaining the ozone NAAQS. The adverse health consequences of exposure to ozone are well known and well established and need not be repeated here. See, e.g., National Ambient Air Quality Standards for Ozone: Final Response to Remand, 68 FR 614, 620–25 (January 6, 2003). Thus, the objective of Maryland in adopting the Maryland AIM coatings rule is to protect the public health of the citizens of Maryland. The courts have recognized a presumption of validity where the state statute affects matters of public health and safety. See, e.g., Kassel v. Consolidated Freightways Corp. of Delaware, 450 U.S. 662, 671 (1980). Moreover, even where the state statute in question is intended to achieve more general environmental goals, courts have upheld such statutes notwithstanding incidental impacts on out of state manufacturers of a product. See, e.g, Minnesota v. Clover Leaf Creamery, et al., 449 U.S. 456 (1981) (upholding state law that banned sales of milk in plastic containers to conserve energy and ease solid waste problems). The commenters assert, without reference to any facts, that the Maryland AIM coatings rule imposes burdens and has impacts on consumers that are ‘‘clearly excessive in relation to the purported benefits * * *.’’ By contrast, EPA believes that any burdens and impacts occasioned by the Maryland AIM coatings rule are not so overwhelming as to trump the state’s interest in the protection of public health. First, the Maryland AIM coatings rule does not restrict the transportation of coatings in commerce itself, only the sale of nonconforming coatings within the state’s own boundaries. The state’s rule excludes coatings sold or manufactured for use outside the state or for shipment to others. COMAR 26.11.33.01(B)(1)(a) and (b). The Maryland AIM coatings rule cannot be construed to interfere with the transportation of coatings through the state en route to other states. As such, EPA believes that the cases concerning impacts on the interstate modes of transportation themselves are inapposite. See, e.g., Bibb v. Navajo Freight Lines, 359 U.S. 520 (1938). Second, the Maryland AIM coatings rule is not constructed in such a way that it has the practical effect of requiring extraterritorial compliance with the state’s VOC limits. The Maryland AIM coatings rule only PO 00000 Frm 00049 Fmt 4700 Sfmt 4700 24983 governs coatings manufactured or sold for use within the state’s boundaries. The manufacturers of coatings in interstate commerce are not compelled to take any particular action, and they retain a range of options to comply with the rule, including, but not limited to: (1) Ceasing sales of nonconforming products in Maryland; (2) reformulating nonconforming products for sale in Maryland and passing the extra costs on to consumers in that state; (3) reformulating nonconforming products for sale more broadly; (4) developing new lines of conforming products; or (5) entering into production, sales or marketing agreements with companies that do manufacture conforming products. Because manufacturers or sellers of coatings in other states are not forced to meet Maryland’s regulatory requirements elsewhere, the rule does not impose the type of obligatory extraterritorial compliance that the courts have considered unreasonable. See, e.g., NEMA v. Sorrell, 272 F.3d 104 (2d Cir. 2000) (state label requirement for light bulbs containing mercury sold in that state not an impermissible restriction). It may be that the Maryland AIM coatings rule will have the effect of reducing the availability of coatings or increasing the cost of coatings within the state, but courts typically view it as the prerogative of the state to make regulatory decisions with such impacts upon its own citizens. NPCA v. City of Chicago, 45 F.3d 1124 (7th Cir. 1994), cert. denied, 515 U.S. 1143 (1995) (local restriction on sales of paints used by graffiti artists may not be the most effective means to meet objective, but that is up to the local government to decide). Third, the burdens of the Maryland AIM coatings rule typically do not appear to fall more heavily on interstate commerce than upon intrastate commerce. The effect on manufacturers and retailers will fall on all manufacturers and retailers regardless of location if they intend their products for sale within Maryland, and does not appear to have the effect of unfairly benefitting in-state manufacturers and retailers. The mere fact that there is a burden on some companies in other states does not alone establish impermissible interference with interstate commerce. See, Exxon Corp. v. Maryland, 437 U.S. 117, 126 (1978). In addition, EPA notes that courts do not typically find violations of the Commerce Clause in situations where states have enacted state laws with the authorization of Congress. See, e.g., Oxygenated Fuels Assoc., Inc. v. Davis, 63 F. Supp. 1182 (E.D. Cal. 2001) (state ban on MTBE authorized by Congress); E:\FR\FM\12MYR1.SGM 12MYR1 24984 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations NEMA v. Sorell, 272 F.3d 104 (2d Cir. 2000) (RCRA’s authorization of more stringent state regulations confers a ‘‘sturdy buffer’’ against Commerce Clause challenges). Section 183(e) of the Act governs the Federal regulation of VOCs from consumer and commercial products, such as coatings covered by the Maryland AIM coatings rule. EPA has issued a Federal regulation that provides national standards, including VOC content limits, for such coatings. See 40 CFR 59.400 et seq. Congress did not, however, intend section 183(e) to pre-empt additional state regulation of coatings, as is evident in section183(e)(9) which indicates explicitly that states may regulate such products. EPA’s regulations promulgated pursuant to the Act recognized that states might issue their own regulations, so long as they meet or exceed the requirements of the Federal regulations. See, e.g., the National Volatile Organic Compound Emission Standards for Architectural Coatings, 40 CFR 59.410, and the Federal Register which published the standards, 63 FR 48848, 48857 (September 11, 1998). Thus, EPA believes that Congress has clearly provided that a state may regulate coatings more stringently than other states. In section 116 of the Act, Congress has also explicitly reserved to states and their political subdivisions the right to adopt local rules and regulations to impose emissions limits or otherwise abate air pollution, unless there is a specific Federal preemption of that authority. When Congress intended to create such Federal preemption, it does so through explicit provisions. See, e.g., section 209(a) of the Act, which pertains to state or local emissions standards for motor vehicles; and section 211 of the Act which pertains to fuel standards. Moreover, the very structure of the Act is based upon ‘‘cooperative federalism,’’ which contemplates that each state will develop its own state implementation plan, and that states retain a large degree of flexibility in choosing which sources to control and to what degree in order to attain the NAAQS by the applicable attainment date. Union Electric Co. v. EPA, 427 U.S. 246 (1976). Given the structure of the Act, the mere fact that one state might choose to regulate sources differently than another state is not, in and of itself, contrary to the Commerce Clause. Finally, EPA understands that there may be a practical concern that a plethora of state regulations creating a checkerboard of differing requirements would not be the best approach to regulating VOCs from AIM coatings or other consumer products. Greater VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 uniformity of standards does have beneficial effects in terms of more cost effective and efficient regulations. As EPA noted in its own AIM coatings rule, national uniformity in regulations is also an important goal because it will facilitate more effective regulation and enforcement, and minimize the opportunities for undermining the intended VOC emission reductions. 63 FR 48856–48857. However, EPA also recognizes that Maryland and other states with longstanding ozone nonattainment problems have local needs for VOC reductions that may necessitate more stringent coatings regulations. Under section 116 of the Act, states have the authority to do so, and significantly, many states in the Northeast have joined together to prepare and promulgate regulations more restrictive than the Federal AIM coatings rule to apply uniformly across that region. This regional collaboration provides regional uniformity of standards. Maryland may have additional burdens to insure compliance with its rule, but for purposes of this action, EPA presumes that Maryland take appropriate actions to enforce it as necessary. EPA has no grounds for disapproval of the SIP revision based upon the commenters’ Commerce Clause comment. 5. Comment: The MD AIM Coatings Rule Is Arbitrary and Capricious Because the Record Supporting It Is Deficient—The commenters assert that the Maryland AIM coatings rule violates the Maryland law as being arbitrary and capricious, because the record supporting Maryland’s actions is deficient in numerous areas. First, the commenters allege that MDE has not undertaken any independent cost analyses, and instead relied solely on information used by CARB to support the suggested control measure (SCM). Second, the commenters assert that MDE failed to address any relevant differences between climatic conditions or the markets for the regulated products in Maryland and California. Finally, the commenters assert that Maryland’s adoption of its AIM coatings rule is arbitrary and capricious because its does not include an averaging provision for inclusion in Maryland SIP as advocated by the commenters. Response: EPA disagrees with this comment. The cost per ton figure determined by Maryland in its economic analysis, its decision to rely upon information from California and its decision whether to include averaging provisions in its final AIM coatings rule, are all decisions which fall within a state’s purview, and issues regarding those decisions are rightly PO 00000 Frm 00050 Fmt 4700 Sfmt 4700 raised by interested parties to the state during its regulatory adoption process. Maryland’s March 19, 2004 SIP revision submittal provides evidence that it has the legal authority to adopt its AIM coatings rule and that it has followed all of the requirements in the State law that are related to adoption of the plan. As noted in BCCA Appeal Group v. EPA, 355 F.3d 817 (5th Cir. 2004): [T]he CAA only requires that the states provide ‘‘necessary assurances that the State * * * will have adequate * * * authority under State (and as appropriate, local) law to carry out such implementation plan (and it is not prohibited by any provision of * * * State law from carrying out such implementation plan or portion thereof).’’ 42 U.S.C. 7410(a)(2)(E)(i). There is no statutory requirement that the EPA review SIP submissions to ensure compliance with state law * * * . Such a requirement would be extremely burdensome and negate the rationale for having the state provide the assurances in the first instance. The EPA is entitled to rely on a state’s certification unless it is clear that the SIP violates state law, and proof thereof, such as a state court decision, is presented to EPA during the SIP approval process. 355 F.3d 817, n.11 at 830. The commenters have offered no proof, such as a state court decision, that Maryland’s AIM coatings rule clearly violates local law. EPA therefore is relying on Maryland’s certification that it had the legal authority to adopt its AIM coatings rule and that it has followed all of the requirements in the State law that are related to adoption of this SIP revision. 6. Comment: The Emission Limits and Compliance Schedule in the MD AIM Coatings Rule Are Neither Necessary nor Appropriate To Meet Applicable Requirements of the Clean Air Act—The commenters claim that the Maryland AIM coatings rule is not ‘‘necessary or appropriate’’ for inclusion in the Maryland SIP, because EPA did not direct Maryland to achieve VOC reductions through the AIM coatings rule, but left it to the State to decide how such reductions can be achieved. The commenters further claim that the Maryland AIM coatings rule is not necessary or appropriate for inclusion in the Maryland SIP because of the numerous alleged procedural and substantive failings on the part of MDE in promulgating the rule. The commenters assert that prior to proposing a SIP revision, the state must first provide reasonable notice and a public hearing, thereby implying that Maryland failed to do so. Response: EPA disagrees with this comment. If fulfillment of the ‘‘necessary or appropriate’’ condition of section 110(a)(2)(A) required EPA first to determine that a measure was E:\FR\FM\12MYR1.SGM 12MYR1 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations necessary or appropriate and then to require a state to adopt that measure, this condition would present a ‘‘catch 22’’ situation. EPA does not generally have the authority to require the State to enact and include in its SIP any particular control measure, even a ‘‘necessary’’ one.8 However, under section 110(a)(2)(a) a control measure must be either ‘‘necessary or appropriate’’ (emphasis added); the use of the disjunctive ‘‘or’’ does not provide that a state must find that only a certain control measure and no other measure will achieve the required reduction. Rather, a state may adopt and propose for inclusion in its SIP any measure that meets the other requirements for approvability so long as that measure is at least an appropriate, though not exclusive, means of achieving emissions reduction. See also, Union Elec. Co. v. EPA, 427 U.S. 246, 264–266 (1976) (holding that ‘‘necessary’’ measures are those that meet the ‘minimum conditions’ of the Act, that a state ‘‘may select whatever mix of control devices it desires,’’ even ones more stringent than Federal standard, to achieve compliance with a NAAQS, and that ‘‘the Administrator must approve such plans if they meet the minimum requirements’’ of section 110(a)(2) of the Act). Clearly, in light of the Act and the case law, EPA’s failure to specify that state adopt a specific control measure cannot dictate whether a specific measure is necessary or appropriate. In this particular instance, EPA identified an emission reduction shortfall associated with Maryland’s 1hour ozone attainment demonstration SIPs for the Baltimore and Philadelphia areas, and required Maryland (and Delaware, New Jersey and Pennsylvania in the case of the Philadelphia area) to address the shortfalls (See, 64 FR 70460 (December 16, 1999) and 66 FR 586 (January 3, 2001)). Maryland also needs reductions to satisfy the requirements for rate-of-progress (ROP) and attainment plans (including contingency measures) for the reclassified Metropolitan Washington DC severe 1hour ozone nonattainment area. It is the State’s prerogative to develop whatever rule or set of rules it deems necessary or appropriate such that the rule or rules 8 As noted in Virginia v. EPA, 108 F.3d 1397 (D.C. Cir. 1997), EPA does have the authority within the mechanism created by section 184 of the Act to order states to adopt control measures recommended by the OTC, if EPA agrees with and approves that recommendation. 108 F.3d, n.3 at 1402. As we have previously stated, the OTC model AIM coatings rule was not developed pursuant to the section 184 mechanism; EPA therefore has no authority to order that Maryland or any other state adopt this measure in order to reduce VOC emissions. VerDate jul<14>2003 13:22 May 11, 2005 Jkt 205001 will collectively achieve the additional emission reductions needed to satisfy the ROP and attainment plan requirements for its 1-hour ozone severe nonattainment areas. Because commenters might find it more necessary or appropriate to obtain the needed VOC emission reductions elsewhere is not a basis for EPA to disapprove the rule implementing Maryland’s determination of the best approach to obtain the needed reductions. EPA also disagrees with the commenters’ view of Maryland’s public notice and hearing procedure. In its March 19, 2004 SIP revision submittal, the MDE included copies of the public notices published in six newspapers throughout the State of Maryland, including the Baltimore Sun and Washington Post, announcing its intent to adopt the AIM coatings rule, to submit the rule to EPA as a SIP revision, and to hold a public hearing (providing date, time, venue), and instructions for submitting comments. From the documentation provided in its March 19, 2004 submittal and from the fact that both commenters testified and submitted written comments pursuant to the hearing and these published notices, EPA believes that Maryland fulfilled the requirements of section 110(a) of the Act with respect to reasonable notice and a public hearing in connection with SIP revision submissions. As stated previously, Maryland’s March 19, 2004 SIP revision submittal provides evidence that it has the legal authority to adopt its AIM coatings rule and that it has followed all of the requirements in the State law and constitution that are related to adoption of the plan (see EPA’s response to Comment B.5.). See BCCA Appeal Group v. EPA, 355 F.3d 817, n.11 at 830. (EPA may rely on the state’s certification that it has complied with applicable state requirements for promulgating a rule submitted as a revision to its SIP.) 7. Comment: The commenters claim that EPA’s action to approve or disapprove Maryland’s AIM coatings rule is a ‘‘significant regulatory action’’ as defined by Executive Order 12866, 58 FR 51735 (September 30, 1993). Response: EPA disagrees with this comment. Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a ‘‘significant regulatory action’’ and therefore is not subject to review by the Office of Management and Budget. The commenters allege that EPA’s approval of the Maryland AIM coatings rule is a ‘‘significant regulatory action’’ because it meets several of the following criteria specified in Executive PO 00000 Frm 00051 Fmt 4700 Sfmt 4700 24985 Order 12866: ‘‘[it will have] an annual effect on the economy of $100 million or more or [it will] adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities * * *.’’ However, this action merely approves existing state law as meeting Federal requirements. EPA’s approval of this SIP revision imposes no additional requirements beyond those imposed by state law. Accordingly, this action meets none of the criteria listed above. Any cost or any material adverse effects on the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities exist, if at all, due to Maryland’s approval of its state AIM coatings rule, not by EPA’s approval of that rule into the Maryland SIP. If EPA failed to act on the Maryland AIM coatings rule, the effects of the rule would not be changed because this rule went effect in Maryland on January 1, 2005. Nothing that EPA might do at this point in time alters that fact. Furthermore, Maryland voluntarily adopted its version of the OTC model AIM coatings rule and, as the commenters themselves acknowledge, EPA legally could not impose this control measure on the State. Virginia v. EPA, 108 F.3d 1397 (D.C. Cir. 1997). EPA’s approval of this state rule merely fulfills its statutory obligation under the Act to review SIP submissions and approve state choices, provided that they meet the criteria of the Clean Air Act. III. Final Action EPA is approving the Maryland SIP revision for the control of VOC emissions from AIM coatings rule submitted on March 19, 2004. The Maryland AIM coatings rule is part of Maryland’s strategy to satisfy the requirements of its severe ozone nonattainment areas and to achieve and maintain the ozone standard throughout the State of Maryland. IV. Statutory and Executive Order Reviews A. General Requirements Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a ‘‘significant regulatory action’’ and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, ‘‘Actions Concerning Regulations That Significantly Affect Energy Supply, E:\FR\FM\12MYR1.SGM 12MYR1 24986 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations Distribution, or Use’’ (66 FR 28355, May 22, 2001). This action merely approves state law as meeting Federal requirements and imposes no additional requirements beyond those imposed by state law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104–4). This rule also does not have tribal implications because it will not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a state rule implementing a Federal requirement, and does not alter the relationship or the distribution of power and responsibilities established in the Clean Air Act. This rule also is not subject to Executive Order 13045 ‘‘Protection of Children From Environmental Health Risks and Safety Risks’’ (62 FR 19885, April 23, 1997), because it is not economically significant. In reviewing SIP submissions, EPA’s role is to approve state choices, provided that they meet the criteria of the Clean Air Act. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus standards (VCS), EPA has no authority to disapprove a SIP submission for failure to use VCS. It would thus be inconsistent with applicable law for EPA, when it reviews a SIP submission, to use VCS in place of a SIP submission that otherwise satisfies the provisions of the Clean Air Act. Thus, the requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not impose an information collection burden under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.). B. Submission to Congress and the Comptroller General The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the Small Business Regulatory Enforcement Fairness Act of 1996, generally provides that before a rule may take effect, the agency promulgating the rule must submit a rule report, which includes a copy of the rule, to each House of the Congress and to the Comptroller General of the United States. EPA will submit a report containing this rule and other required information to the U.S. Senate, the U.S. House of Representatives, and the Comptroller General of the United States prior to publication of the rule in the Federal Register. This rule is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). C. Petitions for Judicial Review Under section 307(b)(1) of the Clean Air Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by July 11, 2005. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this rule for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action, pertaining to Maryland’s AIM coatings rule, may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).) List of Subjects in 40 CFR Part 52 Environmental protection, Incorporation by reference, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds. Dated: May 2, 2005. Donald S. Welsh, Regional Administrator, Region III. I 40 CFR part 52 is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: I Authority: 42 U.S.C. 7401 et seq. Subpart V—Maryland 2. In § 52.1070, the table in paragraph (c) is amended by adding entries for COMAR 26.11.33 through 26.11.33.14 to read as follows: I § 52.1070 * Identification of plan. * * (c) * * * * * EPA-APPROVED REGULATIONS IN THE MARYLAND SIP Code of Maryland Administrative Regulations (COMAR) citation State effective date Title/subject * * * * 26.11.33 * Applicability and Exemptions ................................ 3/29/04 26.11.33.02 ............... Test Methods—Incorporation by Reference ......... 3/29/04 26.11.33.03 ............... Definitions .............................................................. 3/29/04 VerDate jul<14>2003 16:41 May 11, 2005 Jkt 205001 PO 00000 Frm 00052 * Architectural Coatings 26.11.33.01 ............... Fmt 4700 Sfmt 4700 Additional explanation/ citation at 40 CFR 52.1100 EPA approval date 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. E:\FR\FM\12MYR1.SGM 12MYR1 * 24987 Federal Register / Vol. 70, No. 91 / Thursday, May 12, 2005 / Rules and Regulations EPA-APPROVED REGULATIONS IN THE MARYLAND SIP—Continued Code of Maryland Administrative Regulations (COMAR) citation Title/subject 26.11.33.04 ............... General Standard—VOC Content Limits .............. 3/29/04 26.11.33.05 ............... VOC Content Limits .............................................. 3/29/04 26.11.33.06 ............... Most Restrictive VOC Limit ................................... 3/29/04 26.11.33.07 ............... Painting Restrictions ............................................. 3/29/04 26.11.33.08 ............... Thinning ................................................................. 3/29/04 26.11.33.09 ............... Rust Preventive Coatings ..................................... 3/29/04 26.11.33.10 ............... Coatings Not Listed in Regulation .05 .................. 3/29/04 26.11.33.11 ............... Lacquers ................................................................ 3/29/04 26.11.33.12 ............... Container Labeling Requirements ........................ 3/29/04 26.11.33.13 ............... Reporting Requirements ....................................... 3/29/04 26.11.33.14 ............... Compliance Provisions and Test Methods ........... 3/29/04 * * * * * * * * [FR Doc. 05–9314 Filed 5–11–05; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [R03–OAR–2004–MD–0001; R03–OAR– 2004–VA–0005; FRL–7909–9] Approval and Promulgation of Air Quality Implementation Plans; Maryland and Virginia; Non-Regulatory Voluntary Emission Reduction Program Measures Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: SUMMARY: EPA is approving State Implementation Plan (SIP) revisions submitted by the State of Maryland and by the Commonwealth of Virginia. These revisions establish a number of non-regulatory measures for which Maryland and Virginia seek SIP credit VerDate jul<14>2003 16:41 May 11, 2005 State effective date Jkt 205001 * EPA approval date 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. 5/12/05 [Insert page number where the document begins]. * in rate-of-progress and attainment planning for the Metropolitan Washington, DC 1-hour ozone nonattainment area (the Washington area). The intended effect of this action is to approve SIP revisions submitted by Maryland and Virginia which establish certain non-regulatory measures. The non-regulatory measures include use of low-or-no-volatile organic compound (VOC) content paints by certain State and local government agencies; auxiliary power units on locomotives; sale of reformulated consumer products in the Northern Virginia area; accelerated retirement of portable fuel containers by certain State and local government agencies; and, renewable energy measures (wind-power purchases by certain local government agencies). This final rule is effective on June 13, 2005. DATES: EPA has established a docket for each of the SIP revisions subject to this action under Regional Material in EDocket (RME) ID Numbers ADDRESSES: PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 Additional explanation/ citation at 40 CFR 52.1100 * * R03–OAR–2004–MD–0001 and R03– OAR–2004–VA–0005. All documents in the docket are listed in the RME index at https://www.docket.epa.gov/rmepub/. Once in the system, select ‘‘quick search,’’ then key in the appropriate RME identification number. Although listed in the electronic docket, some information is not publicly available, i.e., confidential business information (CBI) or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in RME or in hard copy for public inspection during normal business hours at the Air Protection Division, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal are available at the Maryland Department of the Environment, 1800 Washington Boulevard, Suite 705, Baltimore, Maryland 21230; and the Virginia E:\FR\FM\12MYR1.SGM 12MYR1

Agencies

[Federal Register Volume 70, Number 91 (Thursday, May 12, 2005)]
[Rules and Regulations]
[Pages 24979-24987]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9314]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[MD166-3112; FRL-7910-2]


Approval and Promulgation of Air Quality Implementation Plans; 
Maryland; Control of Volatile Organic Compound Emissions From AIM 
Coatings

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: EPA is approving a State Implementation Plan (SIP) revision 
submitted by the State of Maryland. This revision pertains to the 
control of volatile organic compounds (VOC) emissions from 
architectural and industrial maintenance (AIM) coatings. EPA is 
approving this SIP revision in accordance with the Clean Air Act (CAA 
or Act).

DATES: Effective Date: This final rule is effective on June 13, 2005.

ADDRESSES: Copies of the documents relevant to this action are 
available for public inspection during normal business hours at the Air 
Protection Division, U.S. Environmental Protection Agency, Region III, 
1650 Arch Street, Philadelphia, Pennsylvania 19103, and the Maryland 
Department of the Environment, 1800 Washington Boulevard, Suite 705, 
Baltimore, Maryland 21230.

FOR FURTHER INFORMATION CONTACT: Rose Quinto, (215) 814-2182, or by e-
mail at quinto.rose@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Background

    On May 25, 2004 (69 FR 29674), EPA published a notice of proposed 
rulemaking (NPR) for the State of Maryland. The NPR proposed approval 
of a Maryland regulation pertaining to the control of VOC from AIM 
coatings. The formal SIP revision was submitted by the Maryland 
Department of the Environment (MDE) on March 19, 2004. Other specific 
requirements of Maryland's SIP revision for AIM coatings and the 
rationale for EPA's proposed action are explained in the NPR and will 
not be restated here. On June 24, 2004, EPA received adverse comments 
on its May 25, 2004 proposed rulemaking. A summary of the comments 
submitted and EPA's responses are provided in Section II of this 
document.
    EPA is aware that concerns have been raised about the achievability 
of VOC content limits of some of the product categories under the 
Maryland AIM coatings rule. Although we are approving this rule today, 
the Agency is concerned that if the rule's limits make it impossible 
for manufacturers to produce coatings that are desirable to consumers, 
there is a possibility that users may misuse the products by adding 
additional solvent, thereby circumventing the rule's intended VOC 
emission reductions. We intend to work with Maryland and manufacturers 
to explore ways to ensure that the rule achieves the intended VOC 
emission reductions, and we intend to address this issue in evaluating 
the amount of VOC emission reduction credit attributable to the rule.

II. Public Comments and EPA Responses

    A. The National Paint and Coatings Association (NPCA) is one of 
commenters on EPA's May 25, 2004 NPR proposing approval of Maryland's 
AIM coatings rule. The NPCA has submitted to EPA, by reference, the 
same comments it previously submitted to MDE on Maryland's proposed 
version of its AIM coatings rule during the State's adoption process. 
The NPCA also commented that it endorses and incorporates by reference 
the comments submitted by the Sherwin Williams Company (SWC) to EPA on 
the May 25, 2004 NPR proposing approval of Maryland's AIM coatings 
rule. The following summarizes the comments presented to Maryland by 
the NPCA during the State's adoption of its AIM rule and EPA's response 
to those comments as they pertain to its May 25, 2004 NPR proposing 
approval of Maryland's AIM coatings rule:
    1. Comment: The NPCA has developed an alternative proposal to the 
Maryland AIM coatings rule (Ozone Transport Commission (OTC) model 
rule). The NPCA believes that its proposal should be considered by MDE 
as a viable alternative to the OTC model rule.
    2. Comment: The NPCA suggests revising the Maryland AIM coatings 
rule to include an averaging program, modeled after the California Air 
Resources Board (CARB) program, and administered on a regional basis.
    3. Comment: The NPCA suggests revising the Maryland AIM coatings 
rule

[[Page 24980]]

to include a coating-specific variance provision.
    4. Comment: The NPCA suggests revising the Maryland AIM coatings 
rule to include a scheduled technology assessment by MDE and/or OTC AIM 
workgroup on the appropriateness of implementing all of the future VOC 
limits.
    5. Comment: The NPCA suggests revising the Maryland AIM coatings 
rule to make the reporting requirements consistent with other OTC 
states' AIM coating rules by amending section 13. Reporting 
Requirements, to eliminate the annual reports for clear brushing 
lacquers, rust preventive coatings, and specialty primers, sealers and 
undercoaters. The NPCA recommends MDE replace this requirement with one 
that only requires the manufacturers to maintain records of the sales 
of these AIM products and report these sales only when requested by 
MDE.
    6. Comment: NPCA suggests revising the Maryland AIM coatings rule 
to make section 06. Most Restrictive VOC limit, consistent with other 
OTC states' rules by adding the following four additional categories to 
the list: Calcimine recoaters, impacted immersion coatings, nuclear 
coatings, and thermoplastic rubber coating and mastic.
    7. Comment: The NPCA suggests revising the Maryland AIM coatings 
rule to eliminate the special labeling requirement for conversion 
varnishes which requires manufacturers to prominently display the words 
``For Professional Use Only'' on each can of conversion varnish to make 
the labeling requirements of the Maryland AIM coatings rule consistent 
with other OTC states' AIM rules.
    Response: With regard to the comments submitted by the NPCA to 
Maryland on its proposed AIM coatings rule and subsequently, by 
reference, to EPA on its May 25, 2004 proposed approval of Maryland's 
March 19, 2004 SIP revision request, it is important to understand 
EPA's role with regard to review and approval or disapproval of rules 
submitted by states as SIP revisions. EPA can only take action upon the 
final adopted version of a state's regulation as submitted by that 
state in its SIP revision request. It is not within EPA's authority, by 
its rulemaking on the SIP revision or otherwise, to change or modify 
the text or requirements of a state regulation. Therefore, EPA cannot 
modify Maryland's AIM regulation as suggested in the comments submitted 
by the NPCA. Prior to approving a SIP revision request submitted by a 
state, EPA reviews the submission to ensure that the state provided the 
opportunity for comment and held a hearing(s) on the proposed state 
regulation that is at issue in the SIP revision pursuant to section 
110(a) of the Act. In this case, Maryland's March 19, 2004 submission 
of its AIM coatings rule to EPA includes the necessary documentation to 
demonstrate that it met these requirements. Maryland's March 19, 2004 
SIP revision submission is included in the docket of this rulemaking. A 
complete SIP revision submission from a state includes copies of timely 
comments properly submitted to the state on the proposed SIP revision 
and the state's responses to those comments. Maryland's March 19, 2004 
submission of its AIM coatings rule as a SIP revision to EPA properly 
includes both the comments submitted on its proposed AIM coatings rule 
and Maryland's responses to those comments.
    B. As noted previously, SWC is the other commenter on EPA's May 25, 
2004 NPR proposing approval of Maryland's AIM coatings rule. As stated 
previously, the comments from NPCA incorporate by reference and endorse 
these comments submitted by SWC. The following summarizes the comments 
submitted by SWC and the NPCA (by reference) and EPA's responses:
    1. Comment: Using Flawed Data Violates the Data Quality Objectives 
Act and Administrative Procedures Act--The commenters assert that the 
Maryland AIM coatings rule is based on flawed data and that the use of 
this data violates the Data Quality Objectives Act (``DQOA'') (Section 
515(a) of the Treasury and General Government Appropriations Act for 
Fiscal Year 2001 (Pub. L. 106-554; H.R. 5658)). The data at issue is 
contained in what the commenters characterize as a ``study prepared by 
E.H. Pechan & Associates'' (Pechan Study) in 2001. The alleged flaws 
relate to projected emissions reductions calculated in the Pechan 
Study. The commenters assert that certain of the underlying data and 
data analyses are allegedly ``unreproduceable.'' Further, the 
commenters assert that if better data were used, the OTC model AIM 
coatings rule would achieve greater VOC emissions reductions, relative 
to the Federal AIM coatings rule, than was calculated in the Pechan 
Study (54 percent reduction versus 31 percent reduction), even if 
certain source categories were omitted from regulation under the OTC 
rule. For these reasons, the commenters state that EPA must not approve 
the proposed Maryland AIM coatings rule as a SIP revision.\1\
---------------------------------------------------------------------------

    \1\ One of the commenters has submitted a ``Request for 
Correction of Information'' (RFC) dated June 2, 2004, to EPA's 
Information Quality Guidelines Office in Washington, DC which raises 
substantively similar issues to those raised by this comment. By 
letter dated February 25, 2005 from Robert Brenner, Principal Deputy 
Assistant Administrator to the Counsel for Sherwin Williams Company, 
EPA responded separately to the RFC. A copy of that letter is 
included in the administrative record for this final rulemaking.
---------------------------------------------------------------------------

    Response: EPA disagrees with this comment. What the commenters 
characterize as the Pechan Study is not at issue in this rulemaking. 
The Pechan Study was not submitted to EPA by Maryland in its request 
that EPA approve its AIM coatings rule.\2\ The validity of the Pechan 
Study data is not at issue because Maryland did not request approval of 
a quantified ount of VOC emission reduction from the enactment of its 
regulation.\3\ Rather, this AIM coatings regulation has been submitted 
by Maryland, and is being considered by EPA, on the basis that it 
strengthens the existing Maryland SIP. The commenters do not dispute 
that the Maryland AIM coatings rule will, in fact, reduce VOC 
emissions.
---------------------------------------------------------------------------

    \2\ The commenters concede that the Pechan Study and related 
spreadsheet are not part of the record submitted to EPA by Maryland. 
They assert, however, that there are references to the Pechan Study 
in other materials submitted by Maryland. The commenters also assert 
that one of them submitted a copy of the Pechan Study as an exhibit 
to its comments; however, EPA's review of the commenter's submission 
indicates that the Pechan Study was not submitted to EPA. Whether or 
not the Pechan Study, or data from that study, was submitted to EPA 
does not alter our analyses or conclusion, described herein, that 
the Pechan Study is not relevant in this rulemaking.
    \3\ The commenters assert that there is a ``discrepancy as to 
whether Maryland has requested credits or intends to do so in the 
near future.'' EPA is not aware of any discrepancy. Maryland did not 
request any amount of VOC reduction credits in the SIP revision that 
is the subject of this rulemaking.
---------------------------------------------------------------------------

    Section 110 of the Act provides the statutory framework for 
approval/disapproval of SIP revisions. Under the Act, EPA establishes 
NAAQS for certain pollutants. The Act establishes a joint Federal and 
state program to control air pollution and to protect public health. 
States are required to prepare SIPs for each designated ``air quality 
control region'' within their borders. The SIP must specify emission 
limitations and other measures necessary for that area to meet and 
maintain the required NAAQS. Each SIP must be submitted to EPA for its 
review and approval. EPA will review and must approve the SIP revision 
if it is found to meet the minimum requirements of the Act. See section 
110(k)(3) of the Act, 42 U.S.C. 7410(k)(3); see also, Union Elec. Co. 
v. EPA, 427 U.S. 246, 265, 96 S.Ct. 2518, 49 L.Ed.2d 474 (1976). The 
Act

[[Page 24981]]

expressly provides that the states may adopt more stringent air 
pollution control measures than the Act requires with or without EPA 
approval. See section 116 of the Act, 42 U.S.C. 7416. EPA must 
disapprove state plans, and revisions thereto, that are less stringent 
than a standard or limitation provided by Federal law. See section 
110(k) of the Act, 42 U.S.C. 7410(k); see also Duquesne Light v. EPA, 
166 F.3d 609 (3d Cir. 1999).
    The Pechan Study is not part of Maryland's submission in support of 
its AIM coatings rule. Because Maryland's March 19, 2004 submission 
does not seek approval of a specific amount of emissions reductions, 
the level of emissions reductions that might be calculable using data 
contained in the Pechan Study is irrelevant to whether EPA should 
approve this SIP revision.\4\ The only relevant inquiry at this time is 
whether this SIP revision meets the minimum criteria for approval under 
the Act, including the requirement that Maryland's AIM coatings rule be 
at least as stringent as the otherwise applicable Federal AIM coatings 
rule set forth at 40 CFR 59.400, subpart D.\5\
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    \4\ After submission of a request for approval of a quantified 
amount of emissions reductions credit due to the AIM coatings rule 
by the State, EPA will evaluate the credit attributable to the rule. 
Whatever methodology and data the State uses in such a request will 
become ripe for public comment.
    \5\ The commenters assert that ``it makes no difference whether 
Maryland is asking for credits at this time for there to be a Data 
Quality Act challenge,'' apparently because the fact that material 
from the Pechan Study appears in the rulemaking docket for this 
action, there is ``dissemination of flawed data.'' This ignores that 
fact that EPA is taking no stance on the Pechan Study and its 
underlying data. That study is irrelevant to our analysis as to 
whether the Maryland AIM rule is approvable as a measure meeting the 
requirements of section 110 of the Act that strengthens the Maryland 
SIP. EPA is not required to address irrelevant material merely 
because it is in the rulemaking docket. Section 307(d)(6)(B) of the 
CAA (which aplies to, among other things, SIP revisions, see 42 
U.S.C. 7607(d)(1)(B)), requires EPA to respond to ``each of the 
significant comments, criticisms, and new data submitted * * * 
during the public comment period.'' 42 U.S.C. 7607(d)(6)(B). The 
United States Supreme Court has held that ``irrelevant'' matter in 
the docket is not ``significant'' as that term is used in the CAA, 
and EPA has no duty to respond to them. See Whitman v. Amer. 
Trucking Ass'ns., Inc., 531 U.S. 457, n. 2 at 470 (2001). With 
respect to the Pechan data, we are not disseminating it, but we 
rather are fulfilling our statutory role as custodian of a docket 
containing irrelevant material submitted by third parties.
---------------------------------------------------------------------------

    EPA has concluded that the Maryland AIM coatings rule meets the 
criteria for approvability. It is worth noting that EPA agrees with the 
commenters' conclusion that the Maryland AIM coatings rule is more 
stringent than the Federal AIM coatings rule, though not for the 
reasons given by the commenters, i.e., that the commenters' ``better'' 
data demonstrates that OTC Model AIM coatings rule achieves a 54 
percent, as opposed to the Pechan Study's 31 percent reduction in VOC 
emissions beyond that required by the Federal AIM coatings rule. 
Rather, EPA has determined that the Maryland AIM coatings rule is, on 
its face, more stringent than the Federal AIM coatings rule. As stated 
on page 1945, under ``Comparison to Federal Standards'' in the Maryland 
Bulletin, Volume 30, Issue 26 (December 26, 2003): ``[T]his proposed 
action is more restrictive or stringent than the corresponding Federal 
standards * * *.'' Examples of categories for which Maryland's AIM 
coatings rule is facially more stringent than the Federal AIM coatings 
rule include, but are not limited to, the VOC content limit for non-
flat high gloss coatings and antifouling coatings. The Federal AIM 
coatings rule's VOC content limit for non-flat high gloss coatings is 
380 grams/liter while the Maryland AIM coatings rule's limit is 250 
grams/liter, and the Federal AIM coatings rule's VOC content limit for 
anti-fouling coatings is 450 grams/liter while the Maryland AIM 
coatings rule's is 400 grams/liter. Examples of categories for which 
the Maryland AIM coatings rule is as stringent, but not more stringent, 
than the Federal AIM coatings rule include, but are not limited to, the 
VOC content limit for antenna coatings and low-solids coatings. In both 
rules the VOC content limits for these categories are 530 grams/liter 
and 120 grams/liter, respectively. Thus, on a category by category 
basis, EPA believes that Maryland's AIM coatings rule is as stringent 
or more stringent than the Federal AIM coatings rule. Further, EPA has 
received no comments that the Maryland AIM coatings rule is less 
stringent than the Federal AIM coatings rule.
    2. Comment: The MD AIM Coatings Rule Was Adopted in Violation of 
Clean Air Act Section 183(e)(9)--The commenters state that in 1998, 
after a seven-year rule development process, EPA promulgated its 
nationwide emission limitation for AIM coatings pursuant to Clean Air 
Act section 183(e). The commenters note that Maryland's AIM coatings 
rule seeks to impose numerous VOC emission limits that will be more 
stringent than the corresponding limits in EPA's regulation. The 
commenters assert that section 183(e)(9) requires that any state which 
proposes regulations to establish emission standards other than the 
Federal standards for products regulated under Federal rules shall 
first consult with the EPA Administrator. The commenters believe that 
Maryland failed to engage in that required consultation, and that, 
therefore, (1) Maryland violated section 183(e)(9) in its adoption of 
the Maryland AIM coatings rule, and (2) approval of the AIM coatings 
rule by EPA would violate, and is, therefore, prohibited by sections 
110(a)(2)(A) and (a)(2)(E) of the Act.
    Response: EPA disagrees with this comment. Contrary to the 
implication of the commenters, section 183(e)(9) does not require 
states to seek EPA's permission to regulate consumer products. By its 
explicit terms, the statute contemplates consultation with EPA only 
with respect to ``whether any other state or local subdivision has 
promulgated or is promulgating regulations or any products covered 
under [section 183(e)].'' The commenters erroneously construe this as a 
requirement for permission rather than informational consultation. 
Further, the final Federal AIM coatings regulations at 40 CFR 59.410 
explicitly provides that states and their political subdivisions retain 
authority to adopt and enforce their own additional regulations 
affecting these products. See also 63 FR 48848, 48884 (September 11, 
1998). In addition, as stated in the preamble to the final rule for 
architectural coatings, Congress did not intend section 183(e) to 
preempt any existing or future state rules governing VOC emissions from 
consumer and commercial products. See id. at 48857. Accordingly, MDE 
retains authority to impose more stringent limits for architectural 
coatings as part of its SIP, and its election to do so is not a basis 
for EPA to disapprove the submission for inclusion into the SIP. See 
Union Elec. Co. v. EPA, 427 U.S. at 265-66 (1976). Although national 
uniformity in consumer and commercial product regulations may have some 
benefit to the regulated community, EPA recognizes that some localities 
may need more stringent regulation to combat more serious and more 
intransigent ozone nonattainment problems.
    Further, there was ample consultation with EPA prior to Maryland's 
adoption of its AIM coatings rule. On March 28, 2001 the OTC adopted a 
Memorandum of Understanding (MOU) on regional control measures, signed 
by all the member states of the OTC, including Maryland, which 
officially made available the OTC model rules, including the AIM 
coatings model rule. See the discussion of this MOU in the Report of 
the Executive Director, OTC, dated July 24, 2001, a copy of which has

[[Page 24982]]

been included in administrative record of this final rulemaking. That 
MOU includes the following text, ``WHEREAS after reviewing regulations 
already in place in OTC and other States, reviewing technical 
information, consulting with other States and Federal agencies, 
consulting with stakeholders, and presenting draft model rules in a 
special OTC meeting, OTC developed model rules for the following source 
categories * * * architectural and industrial maintenance coatings * * 
*.'' (a copy of the signed March 28, 2001 MOU has been placed in the 
administrative record of this final rulemaking).
    Therefore, there is no validity to the commenters' assertion that 
Maryland failed to consult with EPA in the adoption of its AIM coatings 
rule. EPA was fully cognizant of the requirements of the Maryland AIM 
coatings rule before its formal adoption by Maryland.\6\ For all these 
reasons, EPA disagrees that Maryland violated section 183(e)(9) in its 
adoption of the its AIM coatings rule, and disagrees that approval of 
the Maryland AIM coatings rule by EPA is in violation of or prohibited 
by section 110(a)(2)(A) and (a)(2)(E) of the Act.
---------------------------------------------------------------------------

    \6\ While EPA reviewed the model AIM coatings rule and the draft 
Maryland version of that rule, EPA had no authority under the Clean 
Air Act to dictate the exact language or requirements of the rule. 
As explained previously, EPA's role is to review a state submission 
to ensure it meets the applicable criteria of section 110 generally, 
and, in the case of an AIM rule to ensure it is at least as 
stringent as the otherwise applicable Federal rule.
---------------------------------------------------------------------------

    3. Comment: The MD AIM Coatings Rule Was Adopted in Violation of 
Clean Air Act Section 184(c), and Approval of the SIP Revision Would, 
Itself, Violate That Section--The commenters believe the OTC violated 
Clean Air Act section 184(c)(l) by failing to ``transmit'' its 
recommendations to the Administrator, and that the OTC's violation was 
compounded by the Administrator's failure to review the Model Rule 
through the notice, comment and approval process required by Clean Air 
Act section 184(c)(2)-(4). The commenters assert that these purported 
violations of the Clean Air Act prevent Maryland from adopting the 
Maryland AIM coatings rule, and now prevent EPA from validly approving 
them as a revision to the Maryland SIP.
    Response: EPA disagrees with this comment. Section 184(c)(1) of the 
Act states that ``the [OTC] may, after notice and opportunity for 
public comment, develop recommendations for additional control measures 
to be applied within all or a part of such transport region if the 
commission determines such measures are necessary to bring any area in 
such region into attainment by the dates provided by this subpart.'' It 
is important to note that the OTC model AIM coatings rule was not 
developed pursuant to section 184(c)(1), which provision is only 
triggered ``[u]pon petition of any State within a transport region 
established for ozone * * *.'' No such petition preceded the 
development of the model AIM coatings rule. Nor, for that matter, was 
development of a rule upon State petition under section 184(e)(1) meant 
to be the exclusive mechanism for development of model rules within the 
OTC. Nothing in section 184 prevents the voluntary development of model 
rules without the prerequisite of a state petition. Section 184 is a 
voluntary process and the OTC may opt for that process or another. This 
provision of the Act was not intended to prevent OTC's development of 
model rules which states may individually choose to adapt and adopt on 
their own, as Maryland did, basing its AIM coatings rule on the model 
developed within the context of the OTC. In developing its state rule 
from the OTC model, Maryland was free to adapt that rule as it saw fit 
(or to leave the OTC model rule essentially unchanged), so long as its 
rule remained at least as stringent as the Federal AIM coatings rule.
    As previously stated, on March 28, 2001, the OTC member states 
signed a MOU on regional control measures, including the AIM coatings 
model rule. The OTC did not develop recommendations to the 
Administrator for additional control measures. The MOU stated that 
implementing these rules will help attain and maintain the 1-hour 
standard for ozone and were therefore made available to the states for 
use in developing their own regulations.\7\
---------------------------------------------------------------------------

    \7\ The commenters argue that section 184 either does not 
require a formal petition to be triggered, or alternatively, that 
the MOU between the OTC states qualifies as a ``petition.'' With 
respect to their first argument, section 184(c) says that the OTC 
``may, after notice and opportunity for public comment, develop 
recommendations for additional control measures * * *'' and that the 
recommendations shall be presented to the EPA Administrator. This 
mechanism is triggered ``upon petition of any State with a transport 
region established for ozone, and based on a majority vote of the 
Governors on the Commission (or their designees) * * *.'' 42 U.S.C. 
7511d(c)(1) (emphasis added). The clear and unambiguous language of 
the Act requires a petition and a vote. We reasonably interpret 
section 184(c), in light of the obligation to conduct a vote, to 
require the petition to be a manifestation of an express intent to 
invoke the section 184(c) process. Further, any petition would need 
to be sufficient in its clarity to put members on notice of their 
obligation to hold a vote and fulfill the other provisions of the 
section 184 process. We do not believe that a document which in 
hindsight might be construed as an inadvertent opt-in to the 
voluntary section 184 process could be the petition affirmatively 
intended by the Act.
    With respect to the argument that the MOU is in hindsight a 
``petition'' triggering the section 184 rule development process, 
nothing in the record indicates that the OTC treated this MOU as a 
petition to initiate the section 184 process. This is not surprising 
because the MOU's plain language recites that the model rules had 
already been developed that by the time the MOU was signed 
(``WHEREAS * * * OTC developed final model rules for the following 
source categories * * *.''). Under section 184(c) the petition 
initiates the voluntary section 184 rule development process. 42 
U.S.C. 7511d(c)(1). The MOU, however, came near the end of the OTC's 
model rule development process. This is a strong indication that the 
OTC did not intend the AIM coatings rule, or the other rules recited 
in the MOU, to be subject to the section 184 process. By its failure 
to express an intention to trigger the section 184 rule development 
mechanism, we reject the argument that the MOU constitutes a section 
184(c) petition. The MOU neither expressly nor inadvertently opted-
in the OTC states to the section 184 process.
---------------------------------------------------------------------------

    Even though the OTC did not develop the model AIM coatings rule 
pursuant to section 184(c)(1) of the Act, nevertheless it provided 
ample opportunity for OTC member and stakeholder comment by holding 
several public meetings concerning the model rules including the AIM 
coatings model rule. The sign-in sheets or agenda for four meetings 
held in 2000 and 2001 at which the OTC AIM coatings model was discussed 
(some of which reflect the attendance of a representative of the EPA 
and/or the commenters), have been placed in the administrative record 
for this final rulemaking.
    4. Comment: The MD AIM Coatings Rule Violates the Commerce Clause 
and the Equal Protection Clause of the U.S. Constitution--The 
commenters' title heading of this comment states that the Maryland AIM 
coatings rule violates the Equal Protection Clause of the U.S. 
Constitution, but the text that follows that title heading provides no 
arguments or assertions to support this claim. In both the title 
heading and the text that follows, the commenters claim that the 
Maryland AIM coatings rule violates the Commerce Clause of Article I, 
section 8, of the U.S. Constitution, because it allegedly imposes an 
unreasonable burden on interstate commerce. The commenters assert that 
because the Maryland AIM coatings rule contains VOC limits and other 
provisions that differ from the Federal AIM coatings rule in 40 CFR 
59.400, the rule imposes unreasonable restrictions and burdens on the 
flow of coatings in interstate commerce. The commenters further clarify 
that the burdens of the Maryland AIM coatings rule are excessive and 
outweigh the benefits of the rule. The commenters argue that EPA should 
disapprove the SIP revision on this basis.

[[Page 24983]]

    Response: As indicated previously, the commenters provide no 
arguments or assertions as to the claim made in the title heading of 
this comment that the Maryland AIM coatings rule violates the Equal 
Protection Clause of the U.S. Constitution (see pages 12-13 of the 
letter dated June 24, 2005 from SWC to Docket ID No. MD166-3111, EPA 
Proposal To Approve SIP Revision Submitted by the State of Maryland 
Concerning Architectural and Industrial Maintenance (AIM) Coatings). 
Moreover, the text of the comment following the title heading does not 
reference or even make mention of the Equal Protection Clause. Lastly, 
in no other comment submitted by SW on EPA's May 25, 2004 proposed 
approval of Maryland's AIM coatings rule is there any mention or 
reference to the Equal Protection Clause of the U.S. Constitution. EPA 
does not believe that any provision of the Maryland AIM coatings rule 
violates the Equal Protection Clause of the U.S. Constitution.
    Regarding the comment that Maryland's AIM coatings rule violates 
the Commerce Clause of the U.S. Constitution, EPA agrees with this 
comment only to the extent that it acknowledges that AIM coatings are 
products in interstate commerce and that state regulations on coatings 
therefore have the potential to violate the Commerce Clause. EPA 
understands the commenters' practical concerns caused by differing 
state regulations, but disagrees with the commenters' view that the 
Maryland AIM coatings rule impermissibly impinges on interstate 
commerce. A state law may violate the Commerce Clause in two ways: (i) 
By explicitly discriminating between interstate and intrastate 
commerce; or (ii) even in the absence of overt discrimination, by 
imposing an incidental burden on interstate commerce that is markedly 
greater than that on intrastate commerce. The Maryland AIM coatings 
rule does not explicitly discriminate against interstate commerce 
because it applies evenhandedly to all coatings manufactured or sold 
for use within the state. At most, therefore, the Maryland AIM coatings 
rule could have an incidental impact on interstate commerce. In the 
case of incidental impacts, the Supreme Court has applied a balancing 
test to evaluate the relative impacts of a state law on interstate and 
intrastate commerce. See, Pike v. Bruce Church, Inc., 397 U.S. 137 
(1970). Courts have struck down even nondiscriminatory state statutes 
when the burden on interstate commerce is ``clearly excessive in 
relation to the putative local benefits.'' Id. at 142.
    At the outset, EPA notes that it is unquestionable that Maryland 
has a substantial and legitimate interest in obtaining VOC emissions 
for the purpose of attaining the ozone NAAQS. The adverse health 
consequences of exposure to ozone are well known and well established 
and need not be repeated here. See, e.g., National Ambient Air Quality 
Standards for Ozone: Final Response to Remand, 68 FR 614, 620-25 
(January 6, 2003). Thus, the objective of Maryland in adopting the 
Maryland AIM coatings rule is to protect the public health of the 
citizens of Maryland. The courts have recognized a presumption of 
validity where the state statute affects matters of public health and 
safety. See, e.g., Kassel v. Consolidated Freightways Corp. of 
Delaware, 450 U.S. 662, 671 (1980). Moreover, even where the state 
statute in question is intended to achieve more general environmental 
goals, courts have upheld such statutes notwithstanding incidental 
impacts on out of state manufacturers of a product. See, e.g, Minnesota 
v. Clover Leaf Creamery, et al., 449 U.S. 456 (1981) (upholding state 
law that banned sales of milk in plastic containers to conserve energy 
and ease solid waste problems).
    The commenters assert, without reference to any facts, that the 
Maryland AIM coatings rule imposes burdens and has impacts on consumers 
that are ``clearly excessive in relation to the purported benefits * * 
*.'' By contrast, EPA believes that any burdens and impacts occasioned 
by the Maryland AIM coatings rule are not so overwhelming as to trump 
the state's interest in the protection of public health. First, the 
Maryland AIM coatings rule does not restrict the transportation of 
coatings in commerce itself, only the sale of nonconforming coatings 
within the state's own boundaries. The state's rule excludes coatings 
sold or manufactured for use outside the state or for shipment to 
others. COMAR 26.11.33.01(B)(1)(a) and (b). The Maryland AIM coatings 
rule cannot be construed to interfere with the transportation of 
coatings through the state en route to other states. As such, EPA 
believes that the cases concerning impacts on the interstate modes of 
transportation themselves are inapposite. See, e.g., Bibb v. Navajo 
Freight Lines, 359 U.S. 520 (1938).
    Second, the Maryland AIM coatings rule is not constructed in such a 
way that it has the practical effect of requiring extraterritorial 
compliance with the state's VOC limits. The Maryland AIM coatings rule 
only governs coatings manufactured or sold for use within the state's 
boundaries. The manufacturers of coatings in interstate commerce are 
not compelled to take any particular action, and they retain a range of 
options to comply with the rule, including, but not limited to: (1) 
Ceasing sales of nonconforming products in Maryland; (2) reformulating 
nonconforming products for sale in Maryland and passing the extra costs 
on to consumers in that state; (3) reformulating nonconforming products 
for sale more broadly; (4) developing new lines of conforming products; 
or (5) entering into production, sales or marketing agreements with 
companies that do manufacture conforming products. Because 
manufacturers or sellers of coatings in other states are not forced to 
meet Maryland's regulatory requirements elsewhere, the rule does not 
impose the type of obligatory extraterritorial compliance that the 
courts have considered unreasonable. See, e.g., NEMA v. Sorrell, 272 
F.3d 104 (2d Cir. 2000) (state label requirement for light bulbs 
containing mercury sold in that state not an impermissible 
restriction). It may be that the Maryland AIM coatings rule will have 
the effect of reducing the availability of coatings or increasing the 
cost of coatings within the state, but courts typically view it as the 
prerogative of the state to make regulatory decisions with such impacts 
upon its own citizens. NPCA v. City of Chicago, 45 F.3d 1124 (7th Cir. 
1994), cert. denied, 515 U.S. 1143 (1995) (local restriction on sales 
of paints used by graffiti artists may not be the most effective means 
to meet objective, but that is up to the local government to decide).
    Third, the burdens of the Maryland AIM coatings rule typically do 
not appear to fall more heavily on interstate commerce than upon 
intrastate commerce. The effect on manufacturers and retailers will 
fall on all manufacturers and retailers regardless of location if they 
intend their products for sale within Maryland, and does not appear to 
have the effect of unfairly benefitting in-state manufacturers and 
retailers. The mere fact that there is a burden on some companies in 
other states does not alone establish impermissible interference with 
interstate commerce. See, Exxon Corp. v. Maryland, 437 U.S. 117, 126 
(1978).
    In addition, EPA notes that courts do not typically find violations 
of the Commerce Clause in situations where states have enacted state 
laws with the authorization of Congress. See, e.g., Oxygenated Fuels 
Assoc., Inc. v. Davis, 63 F. Supp. 1182 (E.D. Cal. 2001) (state ban on 
MTBE authorized by Congress);

[[Page 24984]]

NEMA v. Sorell, 272 F.3d 104 (2d Cir. 2000) (RCRA's authorization of 
more stringent state regulations confers a ``sturdy buffer'' against 
Commerce Clause challenges). Section 183(e) of the Act governs the 
Federal regulation of VOCs from consumer and commercial products, such 
as coatings covered by the Maryland AIM coatings rule. EPA has issued a 
Federal regulation that provides national standards, including VOC 
content limits, for such coatings. See 40 CFR 59.400 et seq. Congress 
did not, however, intend section 183(e) to pre-empt additional state 
regulation of coatings, as is evident in section183(e)(9) which 
indicates explicitly that states may regulate such products. EPA's 
regulations promulgated pursuant to the Act recognized that states 
might issue their own regulations, so long as they meet or exceed the 
requirements of the Federal regulations. See, e.g., the National 
Volatile Organic Compound Emission Standards for Architectural 
Coatings, 40 CFR 59.410, and the Federal Register which published the 
standards, 63 FR 48848, 48857 (September 11, 1998). Thus, EPA believes 
that Congress has clearly provided that a state may regulate coatings 
more stringently than other states.
    In section 116 of the Act, Congress has also explicitly reserved to 
states and their political subdivisions the right to adopt local rules 
and regulations to impose emissions limits or otherwise abate air 
pollution, unless there is a specific Federal preemption of that 
authority. When Congress intended to create such Federal preemption, it 
does so through explicit provisions. See, e.g., section 209(a) of the 
Act, which pertains to state or local emissions standards for motor 
vehicles; and section 211 of the Act which pertains to fuel standards. 
Moreover, the very structure of the Act is based upon ``cooperative 
federalism,'' which contemplates that each state will develop its own 
state implementation plan, and that states retain a large degree of 
flexibility in choosing which sources to control and to what degree in 
order to attain the NAAQS by the applicable attainment date. Union 
Electric Co. v. EPA, 427 U.S. 246 (1976). Given the structure of the 
Act, the mere fact that one state might choose to regulate sources 
differently than another state is not, in and of itself, contrary to 
the Commerce Clause.
    Finally, EPA understands that there may be a practical concern that 
a plethora of state regulations creating a checkerboard of differing 
requirements would not be the best approach to regulating VOCs from AIM 
coatings or other consumer products. Greater uniformity of standards 
does have beneficial effects in terms of more cost effective and 
efficient regulations. As EPA noted in its own AIM coatings rule, 
national uniformity in regulations is also an important goal because it 
will facilitate more effective regulation and enforcement, and minimize 
the opportunities for undermining the intended VOC emission reductions. 
63 FR 48856-48857. However, EPA also recognizes that Maryland and other 
states with longstanding ozone nonattainment problems have local needs 
for VOC reductions that may necessitate more stringent coatings 
regulations. Under section 116 of the Act, states have the authority to 
do so, and significantly, many states in the Northeast have joined 
together to prepare and promulgate regulations more restrictive than 
the Federal AIM coatings rule to apply uniformly across that region. 
This regional collaboration provides regional uniformity of standards. 
Maryland may have additional burdens to insure compliance with its 
rule, but for purposes of this action, EPA presumes that Maryland take 
appropriate actions to enforce it as necessary. EPA has no grounds for 
disapproval of the SIP revision based upon the commenters' Commerce 
Clause comment.
    5. Comment: The MD AIM Coatings Rule Is Arbitrary and Capricious 
Because the Record Supporting It Is Deficient--The commenters assert 
that the Maryland AIM coatings rule violates the Maryland law as being 
arbitrary and capricious, because the record supporting Maryland's 
actions is deficient in numerous areas. First, the commenters allege 
that MDE has not undertaken any independent cost analyses, and instead 
relied solely on information used by CARB to support the suggested 
control measure (SCM). Second, the commenters assert that MDE failed to 
address any relevant differences between climatic conditions or the 
markets for the regulated products in Maryland and California. Finally, 
the commenters assert that Maryland's adoption of its AIM coatings rule 
is arbitrary and capricious because its does not include an averaging 
provision for inclusion in Maryland SIP as advocated by the commenters.
    Response: EPA disagrees with this comment. The cost per ton figure 
determined by Maryland in its economic analysis, its decision to rely 
upon information from California and its decision whether to include 
averaging provisions in its final AIM coatings rule, are all decisions 
which fall within a state's purview, and issues regarding those 
decisions are rightly raised by interested parties to the state during 
its regulatory adoption process. Maryland's March 19, 2004 SIP revision 
submittal provides evidence that it has the legal authority to adopt 
its AIM coatings rule and that it has followed all of the requirements 
in the State law that are related to adoption of the plan. As noted in 
BCCA Appeal Group v. EPA, 355 F.3d 817 (5th Cir. 2004):

[T]he CAA only requires that the states provide ``necessary 
assurances that the State * * * will have adequate * * * authority 
under State (and as appropriate, local) law to carry out such 
implementation plan (and it is not prohibited by any provision of * 
* * State law from carrying out such implementation plan or portion 
thereof).'' 42 U.S.C. 7410(a)(2)(E)(i). There is no statutory 
requirement that the EPA review SIP submissions to ensure compliance 
with state law * * * . Such a requirement would be extremely 
burdensome and negate the rationale for having the state provide the 
assurances in the first instance. The EPA is entitled to rely on a 
state's certification unless it is clear that the SIP violates state 
law, and proof thereof, such as a state court decision, is presented 
to EPA during the SIP approval process. 355 F.3d 817, n.11 at 830.

The commenters have offered no proof, such as a state court decision, 
that Maryland's AIM coatings rule clearly violates local law. EPA 
therefore is relying on Maryland's certification that it had the legal 
authority to adopt its AIM coatings rule and that it has followed all 
of the requirements in the State law that are related to adoption of 
this SIP revision.
    6. Comment: The Emission Limits and Compliance Schedule in the MD 
AIM Coatings Rule Are Neither Necessary nor Appropriate To Meet 
Applicable Requirements of the Clean Air Act--The commenters claim that 
the Maryland AIM coatings rule is not ``necessary or appropriate'' for 
inclusion in the Maryland SIP, because EPA did not direct Maryland to 
achieve VOC reductions through the AIM coatings rule, but left it to 
the State to decide how such reductions can be achieved. The commenters 
further claim that the Maryland AIM coatings rule is not necessary or 
appropriate for inclusion in the Maryland SIP because of the numerous 
alleged procedural and substantive failings on the part of MDE in 
promulgating the rule. The commenters assert that prior to proposing a 
SIP revision, the state must first provide reasonable notice and a 
public hearing, thereby implying that Maryland failed to do so.
    Response: EPA disagrees with this comment. If fulfillment of the 
``necessary or appropriate'' condition of section 110(a)(2)(A) required 
EPA first to determine that a measure was

[[Page 24985]]

necessary or appropriate and then to require a state to adopt that 
measure, this condition would present a ``catch 22'' situation. EPA 
does not generally have the authority to require the State to enact and 
include in its SIP any particular control measure, even a ``necessary'' 
one.\8\ However, under section 110(a)(2)(a) a control measure must be 
either ``necessary or appropriate'' (emphasis added); the use of the 
disjunctive ``or'' does not provide that a state must find that only a 
certain control measure and no other measure will achieve the required 
reduction. Rather, a state may adopt and propose for inclusion in its 
SIP any measure that meets the other requirements for approvability so 
long as that measure is at least an appropriate, though not exclusive, 
means of achieving emissions reduction. See also, Union Elec. Co. v. 
EPA, 427 U.S. 246, 264-266 (1976) (holding that ``necessary'' measures 
are those that meet the `minimum conditions' of the Act, that a state 
``may select whatever mix of control devices it desires,'' even ones 
more stringent than Federal standard, to achieve compliance with a 
NAAQS, and that ``the Administrator must approve such plans if they 
meet the minimum requirements'' of section 110(a)(2) of the Act). 
Clearly, in light of the Act and the case law, EPA's failure to specify 
that state adopt a specific control measure cannot dictate whether a 
specific measure is necessary or appropriate.
---------------------------------------------------------------------------

    \8\ As noted in Virginia v. EPA, 108 F.3d 1397 (D.C. Cir. 1997), 
EPA does have the authority within the mechanism created by section 
184 of the Act to order states to adopt control measures recommended 
by the OTC, if EPA agrees with and approves that recommendation. 108 
F.3d, n.3 at 1402. As we have previously stated, the OTC model AIM 
coatings rule was not developed pursuant to the section 184 
mechanism; EPA therefore has no authority to order that Maryland or 
any other state adopt this measure in order to reduce VOC emissions.
---------------------------------------------------------------------------

    In this particular instance, EPA identified an emission reduction 
shortfall associated with Maryland's 1-hour ozone attainment 
demonstration SIPs for the Baltimore and Philadelphia areas, and 
required Maryland (and Delaware, New Jersey and Pennsylvania in the 
case of the Philadelphia area) to address the shortfalls (See, 64 FR 
70460 (December 16, 1999) and 66 FR 586 (January 3, 2001)). Maryland 
also needs reductions to satisfy the requirements for rate-of-progress 
(ROP) and attainment plans (including contingency measures) for the 
reclassified Metropolitan Washington DC severe 1-hour ozone 
nonattainment area. It is the State's prerogative to develop whatever 
rule or set of rules it deems necessary or appropriate such that the 
rule or rules will collectively achieve the additional emission 
reductions needed to satisfy the ROP and attainment plan requirements 
for its 1-hour ozone severe nonattainment areas. Because commenters 
might find it more necessary or appropriate to obtain the needed VOC 
emission reductions elsewhere is not a basis for EPA to disapprove the 
rule implementing Maryland's determination of the best approach to 
obtain the needed reductions.
    EPA also disagrees with the commenters' view of Maryland's public 
notice and hearing procedure. In its March 19, 2004 SIP revision 
submittal, the MDE included copies of the public notices published in 
six newspapers throughout the State of Maryland, including the 
Baltimore Sun and Washington Post, announcing its intent to adopt the 
AIM coatings rule, to submit the rule to EPA as a SIP revision, and to 
hold a public hearing (providing date, time, venue), and instructions 
for submitting comments. From the documentation provided in its March 
19, 2004 submittal and from the fact that both commenters testified and 
submitted written comments pursuant to the hearing and these published 
notices, EPA believes that Maryland fulfilled the requirements of 
section 110(a) of the Act with respect to reasonable notice and a 
public hearing in connection with SIP revision submissions. As stated 
previously, Maryland's March 19, 2004 SIP revision submittal provides 
evidence that it has the legal authority to adopt its AIM coatings rule 
and that it has followed all of the requirements in the State law and 
constitution that are related to adoption of the plan (see EPA's 
response to Comment B.5.). See BCCA Appeal Group v. EPA, 355 F.3d 817, 
n.11 at 830. (EPA may rely on the state's certification that it has 
complied with applicable state requirements for promulgating a rule 
submitted as a revision to its SIP.)
    7. Comment: The commenters claim that EPA's action to approve or 
disapprove Maryland's AIM coatings rule is a ``significant regulatory 
action'' as defined by Executive Order 12866, 58 FR 51735 (September 
30, 1993).
    Response: EPA disagrees with this comment. Under Executive Order 
12866 (58 FR 51735, October 4, 1993), this action is not a 
``significant regulatory action'' and therefore is not subject to 
review by the Office of Management and Budget. The commenters allege 
that EPA's approval of the Maryland AIM coatings rule is a 
``significant regulatory action'' because it meets several of the 
following criteria specified in Executive Order 12866: ``[it will have] 
an annual effect on the economy of $100 million or more or [it will] 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or communities 
* * *.'' However, this action merely approves existing state law as 
meeting Federal requirements. EPA's approval of this SIP revision 
imposes no additional requirements beyond those imposed by state law. 
Accordingly, this action meets none of the criteria listed above. Any 
cost or any material adverse effects on the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or communities 
exist, if at all, due to Maryland's approval of its state AIM coatings 
rule, not by EPA's approval of that rule into the Maryland SIP. If EPA 
failed to act on the Maryland AIM coatings rule, the effects of the 
rule would not be changed because this rule went effect in Maryland on 
January 1, 2005. Nothing that EPA might do at this point in time alters 
that fact.
    Furthermore, Maryland voluntarily adopted its version of the OTC 
model AIM coatings rule and, as the commenters themselves acknowledge, 
EPA legally could not impose this control measure on the State. 
Virginia v. EPA, 108 F.3d 1397 (D.C. Cir. 1997). EPA's approval of this 
state rule merely fulfills its statutory obligation under the Act to 
review SIP submissions and approve state choices, provided that they 
meet the criteria of the Clean Air Act.

III. Final Action

    EPA is approving the Maryland SIP revision for the control of VOC 
emissions from AIM coatings rule submitted on March 19, 2004. The 
Maryland AIM coatings rule is part of Maryland's strategy to satisfy 
the requirements of its severe ozone nonattainment areas and to achieve 
and maintain the ozone standard throughout the State of Maryland.

IV. Statutory and Executive Order Reviews

A. General Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. For this 
reason, this action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply,

[[Page 24986]]

Distribution, or Use'' (66 FR 28355, May 22, 2001). This action merely 
approves state law as meeting Federal requirements and imposes no 
additional requirements beyond those imposed by state law. Accordingly, 
the Administrator certifies that this rule will not have a significant 
economic impact on a substantial number of small entities under the 
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule 
approves pre-existing requirements under state law and does not impose 
any additional enforceable duty beyond that required by state law, it 
does not contain any unfunded mandate or significantly or uniquely 
affect small governments, as described in the Unfunded Mandates Reform 
Act of 1995 (Pub. L. 104-4). This rule also does not have tribal 
implications because it will not have a substantial direct effect on 
one or more Indian tribes, on the relationship between the Federal 
Government and Indian tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian tribes, as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000). 
This action also does not have Federalism implications because it does 
not have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). 
This action merely approves a state rule implementing a Federal 
requirement, and does not alter the relationship or the distribution of 
power and responsibilities established in the Clean Air Act. This rule 
also is not subject to Executive Order 13045 ``Protection of Children 
From Environmental Health Risks and Safety Risks'' (62 FR 19885, April 
23, 1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not 
impose an information collection burden under the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

B. Submission to Congress and the Comptroller General

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. This rule is not a 
``major rule'' as defined by 5 U.S.C. 804(2).

C. Petitions for Judicial Review

    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by July 11, 2005. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action, pertaining to Maryland's AIM coatings 
rule, may not be challenged later in proceedings to enforce its 
requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Incorporation by reference, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: May 2, 2005.
Donald S. Welsh,
Regional Administrator, Region III.


0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart V--Maryland

0
2. In Sec.  52.1070, the table in paragraph (c) is amended by adding 
entries for COMAR 26.11.33 through 26.11.33.14 to read as follows:


Sec.  52.1070  Identification of plan.

* * * * *
    (c) * * *

                                  EPA-Approved Regulations in the Maryland SIP
----------------------------------------------------------------------------------------------------------------
                                                                                                  Additional
       Code of Maryland                                       State                              explanation/
  Administrative Regulations         Title/subject       effective date   EPA approval date   citation at 40 CFR
       (COMAR) citation                                                                             52.1100
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
------------------------------
                                         26.11.33 Architectural Coatings
----------------------------------------------------------------------------------------------------------------
26.11.33.01..................  Applicability and                3/29/04  5/12/05 [Insert      ..................
                                Exemptions.                               page number where
                                                                          the document
                                                                          begins].
26.11.33.02..................  Test Methods--                   3/29/04  5/12/05 [Insert      ..................
                                Incorporation by                          page number where
                                Reference.                                the document
                                                                          begins].
26.11.33.03..................  Definitions.............         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].

[[Page 24987]]

 
26.11.33.04..................  General Standard--VOC            3/29/04  5/12/05 [Insert      ..................
                                Content Limits.                           page number where
                                                                          the document
                                                                          begins].
26.11.33.05..................  VOC Content Limits......         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.06..................  Most Restrictive VOC             3/29/04  5/12/05 [Insert      ..................
                                Limit.                                    page number where
                                                                          the document
                                                                          begins].
26.11.33.07..................  Painting Restrictions...         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.08..................  Thinning................         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.09..................  Rust Preventive Coatings         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.10..................  Coatings Not Listed in           3/29/04  5/12/05 [Insert      ..................
                                Regulation .05.                           page number where
                                                                          the document
                                                                          begins].
26.11.33.11..................  Lacquers................         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.12..................  Container Labeling               3/29/04  5/12/05 [Insert      ..................
                                Requirements.                             page number where
                                                                          the document
                                                                          begins].
26.11.33.13..................  Reporting Requirements..         3/29/04  5/12/05 [Insert      ..................
                                                                          page number where
                                                                          the document
                                                                          begins].
26.11.33.14..................  Compliance Provisions            3/29/04  5/12/05 [Insert      ..................
                                and Test Methods.                         page number where
                                                                          the document
                                                                          begins].
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 05-9314 Filed 5-11-05; 8:45 am]
BILLING CODE 6560-50-P
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