Proposed Rule To Implement the 1997 8-Hour Ozone National Ambient Air Quality Standard: Revision on Subpart 1 Area Reclassification and Anti-Backsliding Provisions Under Former 1-Hour Ozone Standard; Proposed Deletion of Obsolete 1-Hour Ozone Standard Provision, 2936-2945 [E9-806]

Download as PDF 2936 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 50 and 51 [EPA–HQ–OAR–2007–0956, FRL–8762–5] RIN 2060–AO96 Proposed Rule To Implement the 1997 8-Hour Ozone National Ambient Air Quality Standard: Revision on Subpart 1 Area Reclassification and AntiBacksliding Provisions Under Former 1-Hour Ozone Standard; Proposed Deletion of Obsolete 1-Hour Ozone Standard Provision hsrobinson on PROD1PC76 with PROPOSALS AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. SUMMARY: The EPA proposes to revise the rule for implementing the 1997 8hour ozone national ambient air quality standard (NAAQS) for several of the limited portions of the rule vacated by the U.S. Circuit Court of Appeals for the District of Columbia. The proposal addresses the classification system for the subset of initial 8-hour ozone nonattainment areas that the implementation rule originally covered under Clean Air Act (CAA or Act) title I, part D, subpart 1. The proposal also addresses how 1-hour ozone contingency measures that apply for failure to attain or make reasonable progress toward attainment of the 1hour standard should apply under the anti-backsliding provisions of the implementation rule. In addition, the proposal removes language relating to the vacated provisions of the rule that provided exemptions from the requirements of nonattainment new source review (NSR) and CAA section 185 penalty fees under the 1-hour standard. The EPA plans to issue a separate proposed rule providing additional guidance as to how these two requirements (185 fees and NSR) now apply. In addition, this proposal includes the deletion of an obsolete provision in the 1-hour ozone standard itself. DATES: Comments. Comments must be received on or before February 17, 2009. Public Hearing. If anyone contacts us requesting a public hearing by January 26, 2009, we will hold a public hearing approximately 30 days after publication in the Federal Register. Additional information about the hearing would be published in a subsequent Federal Register notice. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–HQ– OAR–2007–0956, by one of the following methods: VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 • www.regulations.gov: Follow the on-line instructions for submitting comments. • E-mail: a-and-r-docket@epa.gov. • Fax: (202) 566–9744. • Mail: Air and Radiation Docket and Information Center, Attention Docket ID No. EPA–HQ–OAR–2007–0956, Environmental Protection Agency, 1301 Constitution Ave., NW., Washington, DC 20460. Mail Code: 2822T. Please include two copies if possible. • Hand Delivery: Air and Radiation Docket and Information Center, Attention Docket ID No. EPA–HQ– OAR–2007–0956, Environmental Protection Agency in the EPA Headquarters Library, Room Number 3334 in the EPA West Building, located at 1301 Constitution Ave., NW., Washington, DC. The EPA/DC Public Reading Room hours of operation will be 8:30 a.m. to 4:30 p.m. Eastern Standard Time (EST), Monday through Friday, Air and Radiation Docket and Information Center. Instructions: Direct your comments to Docket ID No. EPA–HQ–OAR–2007– 0956. The EPA’s policy is that all comments received will be included in the public docket without change and may be made available on-line at www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be confidential business information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through www.regulations.gov, or e-mail. The www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through www.regulations.gov, your email address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters, any form of encryption, and be free of any defects or viruses. For additional information about EPA’s public docket, visit the EPA Docket Center homepage at https:// www.epa.gov/epahome/dockets.htm. PO 00000 Frm 00034 Fmt 4702 Sfmt 4702 For additional instructions on submitting comments, go to the SUPPLEMENTARY INFORMATION section of this document. Docket: All documents in the docket are listed in www.regulations.gov. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically in www.regulations.gov or in hard copy at the Air and Radiation Docket and Information Center in the EPA Headquarters Library, Room Number 3334 in the EPA West Building, located at 1301 Constitution Ave., NW., Washington, DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744. Public Hearing: If a hearing is held, it will be held at the U.S. Environmental Protection Agency, 109 TW Alexander Drive, Research Triangle Park, North Carolina 27709, Building C. FOR FURTHER INFORMATION CONTACT: For further general information or information on the issue of reclassification of subpart 1 areas, contact Mr. John Silvasi, Office of Air Quality Planning and Standards, U.S. Environmental Protection Agency, (C539–01), Research Triangle Park, NC 27711, phone number (919) 541–5666, fax number (919) 541–0824 or by e-mail at silvasi.john@epa.gov. For information on the 1-hour contingency measures issue discussed in this notice, contact Ms. Denise Gerth, Office of Air Quality Planning and Standards, (C504–03), U.S. EPA, Research Triangle Park, North Carolina 27711, phone number (919) 541–5550 or by e-mail at gerth.denise@epa.gov, fax number (919) 541–0824. To request a public hearing, contact Mrs. Pamela Long, Office of Air Quality Planning and Standards, (C504– 03), U.S. EPA, Research Triangle Park, North Carolina 27711, telephone number (919) 541–0641 or by e-mail at long.pam@epa.gov, fax number (919) 541–5509. SUPPLEMENTARY INFORMATION: I. General Information A. Does This Action Apply to Me? Entities potentially affected directly by the subject rule for this action include state, local, and Tribal governments. Entities potentially E:\FR\FM\16JAP1.SGM 16JAP1 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules affected indirectly by this action include owners and operators of sources of emissions (volatile organic compounds (VOCs) and nitrogen oxides (NOX)) that contribute to ground-level ozone concentrations. B. What Should I Consider as I Prepare My Comments for EPA? hsrobinson on PROD1PC76 with PROPOSALS 1. Submitting CBI. Do not submit this information to EPA through www.regulations.gov or e-mail. Clearly mark the part or all of the information that you claim to be CBI. For CBI information on a disk or CD–ROM that you mail to EPA, mark the outside of the disk or CD–ROM as CBI and then identify electronically within the disk or CD–ROM the specific information that is claimed as CBI. In addition to one complete version of the comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed to be CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. 2. Tips for Preparing Your Comments. When submitting comments, remember to: • Identify the rulemaking by docket number and other identifying information (subject heading, Federal Register date and page number). • Follow directions—The agency may ask you to respond to specific questions or organize comments by referencing a Code of Federal Regulations (CFR) part or section number. • Explain why you agree or disagree; suggest alternatives and substitute language for your requested changes. • Describe any assumptions and provide any technical information and/ or data that you used. • If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. • Provide specific examples to illustrate your concerns, and suggest alternatives. • Explain your views as clearly as possible, avoiding the use of profanity or personal threats. • Make sure to submit your comments by the comment period deadline identified. C. Where Can I Get a Copy of This Document and Other Related Information? In addition to being available in the docket, an electronic copy of this notice is also available on the World Wide Web. A copy of this notice will be VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 posted at https://www.epa.gov/ttn/naaqs/ ozone/o3imp8hr/. D. What Information Should I Know About the Public Hearing? EPA will hold a hearing only if a party notifies EPA by January 26, 2009, expressing its interest in presenting oral testimony on issues addressed in this notice. Any person may request a hearing by calling Mrs. Pamela Long at (919) 541–0641 before 5 p.m. by January 26, 2009. Persons interested in presenting oral testimony should contact Mrs. Pamela Long at (919) 541– 0641. Any person who plans to attend the hearing should also contact Mrs. Pamela S. Long at (919) 541–0641 or visit the EPA’s Web site at https:// www.epa.gov/ttn/naaqs/ozone/ o3imp8hr/ and to learn if a hearing will be held. If a public hearing is held on this notice, it will be held at the EPA, Building C, 109 T.W. Alexander Drive, Research Triangle Park, NC 27709. Because the hearing will be held at a U.S. Government facility, everyone planning to attend should be prepared to show valid picture identification to the security staff in order to gain access to the meeting room. Please check our Web site at https://www.epa.gov/ttn/ naaqs/ozone/o3imp8hr/ for information and updates concerning the public hearing. If held, the public hearing will begin at 10 a.m. and end 1 hour after the last registered speaker has spoken. The hearing will be limited to the subject matter of this document. Oral testimony will be limited to 5 minutes. The EPA encourages commenters to provide written versions of their oral testimony either electronically (on computer disk or CD–ROM) or in paper copy. The list of speakers will be posted on EPA’s Web site at https://www.epa.gov/ttn/naaqs/ ozone/o3imp8hr/. Verbatim transcripts and written statements will be included in the rulemaking docket. A public hearing would provide interested parties the opportunity to present data, views, or arguments concerning issues addressed in this notice. The EPA may ask clarifying questions during the oral presentations, but would not respond to the presentations or comments at that time. Written statements and supporting information submitted during the comment period will be considered with the same weight as any oral comments and supporting information presented at a public hearing. E. How Is This Document Organized? The Information Presented in This Document is Organized as Follows PO 00000 Frm 00035 Fmt 4702 Sfmt 4702 2937 I. General Information A. Does This Action Apply to Me? B. What Should I Consider as I Prepare My Comments for EPA? C. Where Can I Get a Copy of This Document and Other Related Information? D. What Information Should I Know About the Public Hearing? E. How Is This Document Organized? II. What Is the Background for This Proposal? A. Litigation on EPA’s 8-Hour Ozone NAAQS Implementation Rule (40 CFR Part 51, Sections 51.900 Through 51.918 (Collectively Subpart X)) B. Obsolete Provision in 1-Hour Ozone Standard (40 CFR Part 50) III. This Action A. Reclassification of Subpart 1 8-Hour Ozone Nonattainment Areas 1. Current Rule 2. Effect of Court Ruling 3. Proposed Rule 4. Consequences of Proposed Rule B. Anti-Backsliding Under 1-Hour Ozone Standard—In General (Also Discussing NSR and Section 185 Penalty Fees) C. Contingency Measures 1. Phase 1 Rule 2. Effect of Court Ruling 3. Proposed Rule D. Deletion of Obsolete 1-Hour Ozone Standard Provision IV. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review B. Paperwork Reduction Act C. Regulatory Flexibility Act D. Unfunded Mandates Reform Act E. Executive Order 13132—Federalism F. Executive Order 13175—Consultation and Coordination With Indian Tribal Governments G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer Advancement Act J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations K. Determination Under Section 307(d) Appendix A to Preamble. Application of the Proposed Classification Scheme II. What Is the Background for This Proposal? A. Litigation on EPA’s 8-Hour Ozone NAAQS Implementation Rule (40 CFR Part 51, Sections 51.900 Through 51.918 (Collectively Subpart X)) On April 30, 2004 (69 FR 23951), EPA published Phase 1 of a final rule that addressed the following key elements for implementing the 1997 8-hour ozone NAAQS: Classifications for the 1997 8hour NAAQS; revocation of the 1-hour NAAQS (i.e., when the 1-hour NAAQS will no longer apply); anti-backsliding principles for 1-hour ozone E:\FR\FM\16JAP1.SGM 16JAP1 2938 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules requirements to ensure continued progress toward attainment of the 1997 8-hour ozone NAAQS; attainment dates; and the timing of emissions reductions needed for attainment. Following publication of the April 30, 2004 final Phase 1 Rule, the Administrator received three petitions, pursuant to section 307(b)(7)(B) of the CAA requesting reconsideration of a number of aspects of the final rule.1 In final rulemaking on one of these petitions, EPA further clarified the implementation rule in two respects: (a) Section 185 penalty fees under the 1hour standard would no longer be applicable after revocation of the 1-hour standard, and (b) the effective date of designations under the 1997 8-hour standard (i.e., for almost all areas, June 15, 2004) is the date for determining which 1-hour control measures continue to apply in an area once the 1-hour standard is revoked.2 Additionally, EPA clarified that the requirement to have 1hour contingency measures for failure to make progress or failure to attain would no longer apply once the 1-hour standard was revoked. On April 4, 2005 (70 FR 17018), we published a proposed rule to take comment on the issue of whether we should interpret the Act to require areas to retain major NSR requirements that apply to certain 1hour ozone nonattainment areas in implementing the 1997 8-hour standard. We took final action on the NSR issues on June 30, 2005 (70 FR 39413; July 8, 2005), to interpret the CAA to not require NSR under the 1-hour standard once the 1-hour standard was revoked. Several parties challenged EPA’s Phase 1 Rule and the two reconsideration rules, and on December 22, 2006, the Court upheld certain challenges and rejected others, but purported to vacate the Phase 1 Implementation Rule in its entirety. South Coast Air Quality Management District, et al., v. EPA, 472 F.3d 882 (D.C. Cir. 2006) reh’g denied 489 F.3d 1245 (clarifying that the vacatur was limited to the issues on which the court granted the petitions for review). The EPA requested rehearing and clarification of the ruling and on June 8, 2007, the Court clarified that it was hsrobinson on PROD1PC76 with PROPOSALS 1 Three petitions for reconsideration of the Phase 1 Rule were filed by: (1) Earthjustice on behalf of the American Lung Association, Environmental Defense, Natural Resources Defense Council, Sierra Club, Clean Air Task Force, Conservation Law Foundation, and Southern Alliance for Clean Energy; (2) the National Petrochemical and Refiners Association and the National Association of Manufacturers; and (3) the American Petroleum Institute, American Chemistry Council, American Iron and Steel Institute, National Association of Manufacturers and the U.S. Chamber of Commerce. 2 70 FR 30592 (May 26, 2005). VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 vacating the rule only to the extent that it had upheld petitioners’ challenges. Thus, the following provisions of the Phase 1 rule were vacated: • The provisions that placed 8-hour ozone nonattainment areas under subpart 1, part D, title I of the CAA instead of subpart 2. • The provisions that waived obligations under the revoked 1-hour standard for NSR, section 185 penalty fees, and contingency measures for failure to attain or to make reasonable progress toward attainment of the 1-hour standard.3 B. Obsolete Provision in 1-Hour Ozone Standard (40 CFR Part 50) When EPA promulgated the 8-hour ozone standard on July 18, 1997 (62 FR 38856), EPA initially revised 40 CFR 50.9 to revoke the 1-hour ozone standard once EPA determined that an area had air quality meeting the 1-hour standard. Subsequently, because the pending litigation over the 8-hour NAAQS created uncertainty regarding the 8-hour NAAQS and our implementation strategy, we revised 40 CFR 50.9 to place two limitations on our authority to apply the revocation rule: (1) The 8-hour NAAQS must no longer be subject to legal challenge, and (2) it must be fully enforceable.4 (65 FR 45182, July 20, 2000). These limitations were codified as § 50.9(c). In the final Phase 1 Rule, we again revised § 50.9, this time to revise § 50.9(b) to provide for revocation of the 1-hour standard one year after designation of areas under the 1997 8-hour ozone standard. However, we neglected to remove paragraph (c) which was no longer necessary as the 8-hour standard was no longer subject to legal challenge and the standard had been upheld and was enforceable. American Trucking Assoc. v. EPA 283 F.3d 355 (DC Cir. 2002) (resolving all remaining legal challenges to the 8-hour ozone standard and upholding EPA’s rule establishing that standard.) III. This Action A. Reclassification of Subpart 1 8-Hour Ozone Nonattainment Areas 1. Current Rule In the Phase 1 implementation rule, EPA established which planning 3 The Court’s June clarification confirmed that the December 2006 decision was not intended to establish a requirement that areas continue to demonstrate conformity for the 1-hour ozone standard for anti-backsliding purposes. 4 In addition, in June 2003, we stayed our authority to apply the revocation rule pending our reconsideration in this rulemaking of the basis for revocation. (68 FR 38160, June 26, 2003). PO 00000 Frm 00036 Fmt 4702 Sfmt 4702 requirements of part D of title I of the Act would apply to areas for purposes of implementing the 8-hour ozone standard. 40 CFR 51.902. (‘‘Which classification and nonattainment area planning provisions of the CAA shall apply to areas designated nonattainment for the 8-hour NAAQS?’’) Paragraph (a) provided that areas with a 1-hour ozone design value equal to or greater than 0.121 parts per million (ppm) at the time of 8-hour NAAQS nonattainment designation (April 2004) would be classified in accordance with CAA title I, part D, section 181 of the CAA as interpreted in 40 CFR 51.903(a) for purposes of the 8-hour NAAQS, and would be subject to the requirements of CAA title I, part D, subpart 2 that apply for the area’s classification. 40 CFR 51.903(a) set forth a translation into 8hour design values of the CAA section 181 classification table, which is written in terms of 1-hour ozone design values. The preamble to the Phase 1 Rule provides the rationale and procedure for that translation. (See 69 FR 23958 et seq.) Section 181 in subpart 2 provides for specific classifications of each area by the magnitude of the ozone problem, providing shorter time periods for attainment for lower classifications and longer time periods for higher classifications. Higher classified areas also face additional specified control requirements than lower classified areas. A summary listing of the subpart 2 requirements by classification compared to subpart 1 requirements appeared in the proposed 8-hour ozone implementation rule. (See 68 FR 32864, Appendix A; June 2, 2003.) Paragraph (b) of § 51.902 provided that 1997 8-hour ozone nonattainment areas with a 1-hour design value less than 0.121 ppm at the time of 8-hour NAAQS nonattainment designation would be covered under section 172(a)(1) of the CAA and would be subject to the requirements of CAA title I, part D, subpart 1 and not those of subpart 2. The EPA designated areas for the 1997 8-hour standard on April 30, 2004 (69 FR 23858), and in accordance with section 181(a), the areas subject to subpart 2 under the Phase 1 Rule were classified by operation of law at that time. Of the 126 areas designated nonattainment, 84 were classified as under subpart 1, and the remaining 42 as under subpart 2.5 5 13 of the 84 subpart 1 areas and one subpart 2 area were designated as ‘‘Early Action Compact Areas’’ with a deferred effective date for their nonattainment designation. E:\FR\FM\16JAP1.SGM 16JAP1 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules 2. Effect of Court Ruling In its decisions on the Phase 1 rule, the Court vacated the provisions that subjected any 8-hour ozone nonattainment areas to coverage under subpart 1. As the basis for its decision, the Court first agreed that Congress mandated that certain areas be subject to subpart 2, but ruled that our use of 0.121 ppm 1-hour design value as a dividing line was incorrect, holding that the Supreme Court had required use of 0.09 ppm on the 8-hour scale as the level for determining which areas Congress mandated would be subject to subpart 2.6 Furthermore, although recognizing that Congress did not mandate that areas with an 8-hour design value be subject to subpart 2, the Court rejected as unreasonable our rationale for placing certain areas in subpart 1 instead of subpart 2. The Court vacated the Phase 1 rule to the extent it placed certain areas solely under the implementation provisions of subpart 1. Thus, a rule revision is necessary to address which provisions of the Act—only subpart 1 or subpart 2 7—should apply to those areas that were placed solely under subpart 1 in the Phase 1 Rule. 3. Proposed Rule hsrobinson on PROD1PC76 with PROPOSALS We are proposing that all areas designated nonattainment for the 1997 8-hour ozone standard will be classified under and subject to the nonattainment planning requirements of subpart 2. We would modify the regulatory text to remove current § 51.902(b) (which was vacated by the Court), which placed certain areas only under subpart 1. We considered the possibility of proposing to place areas with design values below 0.09 ppm 8-hour design value under subpart 1, but are not proposing this option in the interest of not further delaying implementation of the 8-hour ozone NAAQS that was established over 6 ‘‘* * * the gap identified in Whitman affords EPA discretion only to the extent that an area is nonattaining but its air quality is not as dangerous as the level addressed by the 1990 Amendments, which now translates to 0.09 ppm on the 8 hour scale. Thus, the gap extends only to the extent that the standard was strengthened and not to the extent that the measurement technique merely changed * * * We therefore hold that the 2004 Rule violates the Act insofar as it subjects areas with 8-hour ozone in excess of 0.09 ppm to Subpart 1. We further hold that EPA’s interpretation of the Act in a manner to maximize its own discretion is unreasonable because the clear intent of Congress in enacting the 1990 Amendments was to the contrary.’’ 7 We note that areas subject to subpart 2 are also subject to subpart 1 to the extent subpart 1 specifies requirements that are not superseded by more specific obligations under subpart 2. VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 10 years ago.8 However, we solicit comment on this part of this proposal. Because these are the initial classifications for these areas for the 1997 ozone standard, the EPA further proposes to use the 8-hour ozone design values (from 2001–2003 air quality data) that were used to designate these areas nonattainment initially as the basis for classification and that the classification table in 40 CFR 51.903 (established by the Phase 1 Rule) be used for the classification. CAA section 181(a) provides that ‘‘at the time’’ areas are designated for a NAAQS, they will be classified ‘‘by operation of law’’ based on the ‘‘design value’’ of the areas and in accordance with table 1 of that section. Thus, this language specifies that the area will be classified based on the design value that existed for the area ‘‘at the time’’ of designation. Areas were designated nonattainment in 2004, based on design values derived from data from 2001–2003. We are soliciting comment on the approach of classifying these areas based on the same data that was used for designation. Also, since the classification under this proposal would be the initial one under the 1997 8-hour standard for these areas after court vacatur of the method EPA used to treat these areas under subpart 1 only, EPA proposes that the provision of CAA section 181(a)(4) would apply to these areas, which would allow the Administrator in his discretion to adjust the classification— within 90 days after the initial classification—to a higher or lower classification ‘‘* * * if the design value were 5 percent greater or 5 percent less than the level on which such classification was based.’’ The EPA proposes to address requests for such classification adjustments for the newlyclassified areas that were originally covered under subpart 1 in a manner similar to the way described for the original round of subpart 2 classifications.9 This process is described at 69 FR 23863 et seq. (April 30, 2004). Of the original 84 subpart 1 areas designated in the April 30, 2004 rulemaking, 13 areas successfully completed participation in the Early 8 As the court made clear in its decision on rehearing, the CAA does not mandate coverage under subpart 2 of all areas designated nonattainment for an ozone NAAQS. As EPA moves forward to develop an implementation strategy for the new 2007 ozone NAAQS, we will consider whether subpart 1 alone might apply in some areas for purposes of implementing that NAAQS. 9 Note, however, that if a State requests a reclassification from moderate to marginal and the attainment date for marginal areas has passed and the area is violating the standard, EPA would not grant the request for the reclassification. PO 00000 Frm 00037 Fmt 4702 Sfmt 4702 2939 Action Compacts (EAC) program. As a result, these areas received deferred designations and classifications for as long as they continued to meet program requirements. These requirements were designed to ensure early reductions of ozone and progress toward attainment of the 1997 NAAQS. At the completion of the program, these areas were designated attainment for the 8-hour ozone NAAQS effective April 15, 2008.10 Despite the proposal to implement the 1997 8-hour standard by classifying nonattainment areas under title I, part D, subpart 2 at this time, EPA reserves the right to propose to cover future ozone nonattainment areas under title I, part D, subpart 1, in accordance with the constraints outlined in the Court’s rulings. The EPA may in the future examine the appropriate role for subpart 1 in classifying nonattainment areas and in flexible, efficient, enforceable implementation of an ozone NAAQS. Note that CAA section 182(h) (‘‘Rural Transport Areas’’) would be available for any nonattainment area that qualifies as a rural transport area under that section. A Rural Transport Area would have to only meet requirements of a marginal area. 4. Consequences of Proposed Rule Areas originally covered under subpart 1 that have already been redesignated to attainment will not be affected by this rule, including the 13 EAC areas noted above.11 Appendix A provides a listing of the former subpart 1 areas that are still designated nonattainment and that would be classified under subpart 2 under this proposed rule and provides the subpart 2 classification for the area based on the air quality data initially used to designate the area in the 2004 designation rule. All of these areas would be classified as either marginal or moderate.12 The classification table of 40 CFR 51.903 provides an outside attainment date based on a number of years after the effective date of the 10 One area (Denver, CO) that was originally part of the EAC program did not successfully complete all milestones and was subsequently designated nonattainment under subpart 1. Thus, this area would be treated the same as all areas classified under subpart 1 under the original provisions of the Phase 1 Rule. 11 See, e.g., 73 FR 11558 (col. 2) (March 4, 2008), together with e.g., 73 FR 1166 (col 3) (January 8, 2008). 12 Note that Essex Co (the top of Whiteface Mtn), NY, and Door County, WI would be eligible for consideration under CAA section 182(h) as a Rural Transport Area. This is based on the 1999 definition of Metropolitan Statistical Areas; neither of the above two areas is in or adjacent to an MSA as defined by the Office of Management and Budget (OMB) in 1999 (June 30, 1999; 64 FR 35548). E:\FR\FM\16JAP1.SGM 16JAP1 2940 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules nonattainment designation (3 years for marginal and 6 years for moderate). For all areas other than Denver, the effective date of designation for the 8-hour standard was June 15, 2004. Thus, marginal nonattainment areas would have a maximum statutory attainment date of June 15, 2007 and moderate areas a maximum date of June 15, 2010. Since the marginal area attainment date has passed, EPA proposes that any area that would be classified under the proposal as marginal, and that did not attain by June 15, 2007, or that does not meet the criteria for an attainment date extension under CAA section 181(a)(5)(B) and 40 CFR 51.907, would be reclassified immediately as moderate under this rule. Areas classified marginal or moderate would be required to meet the marginal or moderate area requirements of CAA section 182(a) and/or (b). Moderate area requirements include the requirements for the marginal classification. Briefly, these requirements are depicted in Table 1: TABLE 1 Subpart 2 a Element Classification Attainment Dates .............................................................. For all areas, attainment should occur as expeditiously as practicable, but no later than specified timeframe. Reasonable Further Progress (RFP) ................................ Attainment demonstration submission .............................. NSR and Reasonable Achievable Technology (RACT) major source applicability. NSR offsets ....................................................................... Bump-up to higher classification ...................................... NOX control for RACT ...................................................... Emission inventory ............................................................ Requirement Marginal .............................. 3 years from CAA Amendments enactment. Moderate ............................ Marginal .............................. Moderate ............................ 6 years from CAA Amendments enactment. None. 15% VOC reduction from baseline within 6 years of enactment. None. Due 3 years after CAA Amendments enactment. 100 tons per year (TPY). Marginal .............................. Moderate ............................ Marginal .............................. Moderate ............................ Marginal .............................. Moderate ............................ All except severe & extreme. Moderate & above; all areas in Ozone Transport Commission. All ....................................... RACT ................................................................................ Marginal & above ............... Moderate & above .............. Inspection and Maintenance (I/M) .................................... Marginal .............................. Consequences of failure to attain ..................................... Contingency measures ..................................................... Moderate ............................ Marginal, moderate ............ All ....................................... 100 TPY. 1.1 to 1. 1.15 to 1. Required to bump up to higher classification if area doesn’t meet attainment date. Requirements under this subpart for major stationary VOC sources (NSR & RACT) also apply to all major NOX sources, unless EPA approves NOX waiver. Comprehensive emissions inventory within 2 years of enactment; update every 3 years (until area attains). Provision for submission to state of annual emissions statements from VOC and NOX stationary sources. Pre-1990 RACT fix-up. RACT for all Control Techniques Guidelines sources and all other major sources. Pre-1990 corrections to previously required I&M programs. Basic I/M. Bump-up for failure to attain. Required for failure to meet the Rate of Progress milestones or attain. hsrobinson on PROD1PC76 with PROPOSALS a Note that subpart 1 requirements also apply to subpart 2 areas to the extent that the CAA does not provide an exemption (e.g., 182(a) (last paragraph, which exempts marginal areas from the requirement to submit an attainment demonstration)) or such requirements are not superseded by more specific obligations under subpart 2 (e.g., where subpart 2 specifies specific increments of progress for moderate and above areas in place of the more general requirement for ‘‘reasonable further progress’’ under subpart 1). Subpart 1 requirements that are also applicable to subpart 2 areas (but that are not addressed in subpart 2) include reasonably available control measures (RACM) requirement and transportation and general conformity requirements. With respect to transportation conformity requirements, current transportation plan and transportation improvement program conformity determinations for the 1997 8-hour ozone standard will remain valid, and are not impacted by this action. Areas that would be reclassified under subpart 2 are already satisfying the applicable CAA section 176(c) conformity requirements for the 1997 8-hour ozone standard. In addition, no new conformity deadline would be triggered in the subject areas after their classification under subpart 2. Nonattainment areas that are classified VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 as marginal or moderate under Subpart 2 would continue to make future conformity determinations according to the applicable requirements of 40 CFR 93.109(d) and (e). EPA notes that any new moderate areas that continue to be required to use the interim emissions tests will be required to meet additional test requirements that do not apply to marginal areas (40 CFR 93.119(b)(1)). The Phase 1 Rule provided that states must submit the major SIP elements for the subpart 1 areas no later than June 15, 2007. For areas classified as moderate, EPA also provided a submission date of June 15, 2007 for PO 00000 Frm 00038 Fmt 4702 Sfmt 4702 most requirements, but required states to submit the reasonably available control technology requirement (RACT) SIP by September 15, 2006. The EPA proposes to require states to submit all required SIP elements for the areas’ marginal or moderate classification one year after the effective date of a final rule classifying the areas. The EPA believes this is an appropriate and reasonable amount of time given the attainment dates that will apply to these areas and the fact that the areas should have made significant progress toward meeting these requirements based on the obligations that applied before the E:\FR\FM\16JAP1.SGM 16JAP1 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules subpart 1 classification provision of the Phase 1 rule was vacated. As subpart 1 areas, these areas should have been well along the path to developing SIPs at the time the Court issued its decision in December 2006. We believe states have already had ample opportunity to complete the technical work to support development of these major SIP elements prior to now. Also, EPA has encouraged states to continue planning for clean air in the prior subpart 1 areas.13 Therefore, EPA believes one year from the date of final rule should be sufficient time for states to submit these SIPs. However, EPA solicits comment on this aspect of the proposal. hsrobinson on PROD1PC76 with PROPOSALS B. Anti-Backsliding Under 1-Hour Ozone Standard—In General (Also Discussing NSR and Section 185 Penalty Fees) The EPA codified the anti-backsliding provisions governing the transition from the revoked 1-hour ozone NAAQS to the 1997 8-hour ozone NAAQS in 40 CFR 51.905(a). These provisions, as promulgated, retained most of the 1hour ozone requirements as ‘‘applicable requirements’’ (defined in 40 CFR 51.900(f)). The requirements that are retained are those that applied in an area based on the area’s 1-hour ozone designation and classification as of the effective date of its 8-hour designation (for most areas, June 15, 2004). Section 51.905(b) provides that a state remains subject to the listed 1-hour standard obligations until the area attains the 8-hour NAAQS. Furthermore, § 51.905(b) provides that such obligations cannot be removed from a SIP, even if the area is redesignated to attainment for the 8hour NAAQS, but must remain in the SIP as applicable requirements or as contingency measures, as appropriate. Section 51.905(e), as promulgated in 2004, indicated that certain 1-hour standard requirements are not part of the list of anti-backsliding requirements. These include 1-hour NSR, section 185 penalty fees, and 1-hour contingency measures for failure to attain or make reasonable progress toward attainment of the 1-hour NAAQS.14 The Court 13 Memorandum of March 19, 2007 from William L. Wehrum to EPA Regional Administrators, re: ‘‘Impacts of the Court Decision on the Phase 1 Ozone Implementation Rule’’ (response to Question 2) and memorandum of June 15, 2007 from Robert J. Meyers to Regional Administrators re: ‘‘Decision of the U.S. Court of Appeals for the District of Columbia Circuit on our Petition for Rehearing of the Phase 1 Rule to Implement the 8-Hour Ozone NAAQS’’ (Implications for Subpart 1 Areas). 14 Note that if the area is nonattainment for the 1997 8-hour standard, it is subject to nonattainment NSR, contingency measures and (if severe or extreme) the section 185 penalty fee provision for that 1997 NAAQS. VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 vacated these exemption provisions, and accordingly EPA is proposing to delete these exemptions from the rule. Thus, this proposal would remove language relating to the vacated provisions of the rule that provided exemptions from the requirements of nonattainment NSR and CAA section 185 penalty fees under the 1-hour standard in addition to the provision for contingency measures. The EPA plans to issue a separate proposed rule providing further guidance on how the section 185 fee provisions and the 1hour NSR requirements apply as a result of the Court’s vacatur.15 In the following section, in response to the Court vacatur, EPA proposes the manner in which the 1-hour NAAQS contingency measure requirement applies as an anti-backsliding requirement. C. Contingency Measures 1. Phase 1 Rule The Phase 1 Rule did not address anti-backsliding provisions related to sections 172(c)(9) and 182(c)(9) of the CAA, which require nonattainment area SIPs to contain contingency measures that would be implemented if an areas fails to attain or fails to make RFP toward attainment of the 1-hour NAAQS. In the Reconsideration Rule published on May 26, 2005 (70 FR 30592), we determined that these 1-hour contingency measures would no longer be considered required SIP measures once the 1-hour standard was revoked. This meant that after the 1-hour standard was revoked, areas that had not submitted 1-hour attainment 15 As noted above in a previous footnote, the Court’s June 2007 clarification confirms that the December 2006 decision was not intended to establish a requirement that areas continue to demonstrate conformity under the 1-hour ozone standard for anti-backsliding purposes. Therefore, no revisions are necessary to 40 CFR 51.905(e)(3) of the Phase 1 implementation rule. Section 40 CFR 51.905(e)(3) establishes that conformity determinations for the 1-hour standard are not required beginning 1 year after the effective date of the revocation of the 1-hour standard and any state conformity provisions in an applicable SIP that require 1-hour ozone conformity determinations are no longer federally enforceable. This provision does not require revision in light of the Court’s decision and clarification, because the Court did not require conformity determinations for the 1-hour standard, and existing regulations already implement the Court’s holding that 8-hour ozone nonattainment and maintenance areas must use 1-hour ozone budgets to determine conformity to the 1997 8-hour standard until such time as 8-hour ozone budgets are approved or found adequate for the area. Therefore, current transportation conformity-related regulations set forth in 40 CFR part 93 and 40 CFR 51.905(e)(3), and the general conformity regulations in 40 CFR part 93 are consistent with the Court’s decision and clarification on the Phase 1 8-hour ozone implementation rule and do not require revision. PO 00000 Frm 00039 Fmt 4702 Sfmt 4702 2941 demonstrations or a specific 1-hour RFP SIP would no longer be required to submit contingency measures in conjunction with those SIPs. Also, the reconsideration rule stated that areas with approved section 172 and 182 contingency measures in the adopted SIP could submit a revision to remove them from their SIP when the 1-hour standard was revoked. 2. Effect of Court Ruling The Court concluded that EPA improperly waived the CAA requirements for contingency measures that would apply based on the failure of an area to meet a 1-hour RFP milestone or 1-hour attainment date. The Court vacated the provision of the Phase 1 Rule that waived this requirement for areas once the 1-hour standard was revoked. Consequently, areas remain subject to the obligation to have contingency measures for failure to attain the 1-hour NAAQS or make RFP toward attainment of the 1-hour NAAQS and cannot remove section 172 or 182 contingency measures from their SIPs based on revocation of the 1-hour standard. 3. Proposed Rule The EPA is proposing that states be required to retain contingency measures in their SIPs that would apply based on a failure to meet a 1-hour RFP milestone or upon a failure to attain the 1-hour standard by the area’s attainment date. Consistent with the Court’s vacatur of § 51.905(e)(2)(iii), which waived this requirement once the 1-hour standard was revoked, EPA proposes to remove this provision from the regulations. Furthermore, consistent with EPA’s proposal to retain these 1-hour contingency measure requirements as anti-backsliding measures, we also propose to list contingency measures under sections 172(c)(9) and 182(c)(9) of the CAA as applicable requirements under § 51.900(f). In situations where an area attains the 1-hour NAAQS by its applicable attainment date, the area is not subject to the requirement to implement contingency measures for failure to attain the standard by its attainment date. As a result, any area that meets or has met its attainment deadline, even if the area subsequently lapses into nonattainment, would not be required to implement the contingency measures for failure to attain the standard by its attainment date for purposes of antibacksliding. In situations where a 1-hour ozone nonattainment area is in attainment based on current air quality (e.g., after the area’s attainment date), EPA can E:\FR\FM\16JAP1.SGM 16JAP1 2942 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules hsrobinson on PROD1PC76 with PROPOSALS propose to make a finding of attainment.16 This finding would be pursuant to the interpretation set forth in the May 10, 1995 memorandum from John S. Seitz, Director, Office of Air Quality Planning and Standards, entitled ‘‘Reasonable Further Progress, Attainment Demonstration, and Related Requirements for Ozone Nonattainment Areas Meeting the Ozone Ambient Air Quality Standard’’ (Clean Data Policy). Under this policy, if EPA determines through rulemaking that the area is meeting the 1-hour ozone standard, the requirements for the state to submit an attainment demonstration and related components such as reasonably available control measures (RACM), RFP demonstration, contingency measures for failure to attain or make reasonable further progress and the section 185 fees program are suspended as long as the area continues to attain the 1-hour ozone NAAQS. If the area subsequently violates the ozone NAAQS, EPA would initiate notice-and-comment rulemaking to withdraw the determination of attainment, which would result in reinstatement of the requirement for the state to submit such plans. The Tenth, Seventh and Ninth Circuits have upheld EPA rulemakings applying the Clean Data Policy. See Sierra Club v. EPA, 99 F. 3d 1551 (10th Cir. 1996); Sierra Club v. EPA. 375 F.3d 537 (7th Cir. 2004) and Our Children’s Earth Foundation v. EPA, No. 04–73032 (9th Cir. June 28, 2005) memorandum opinion.17 See also the discussion and rulemakings cited in EPA’s Phase 2, 8Hour Ozone Implementation Rulemaking, 70 FR 71644–71646 (November 29, 2005), which codified the policy for the 8-hour NAAQS. Thus if EPA makes a determination of attainment under the Clean Data Policy, EPA would find that the requirement to submit section 172 and 182 contingency measures under the 1-hour antibacksliding provisions (40 CFR 51.905) would be suspended for so long as the area continues to attain the 1-hour standard. Under 40 CFR 51.905(b), states remain subject to the obligations under § 51.905(a)(1)(i) and (a)(2) until the area attains the 8-hour NAAQS for purposes of anti-backsliding. After the area attains the 8-hour NAAQS, states may request 16 This applies even if the area did not attain by its attainment date; however, the CAA requires EPA in these cases to make a finding of failure to attain by the attainment date and either reclassify the area or apply other requirements (such as section 185) as specified for the area’s classification. 17 The Clean Data Policy, as it is embodied in 40 CFR. 51.918, is being challenged in the context of the 8-hour ozone standard in the Phase 2 Rule ozone litigation pending in the DC Circuit, NRDC v. EPA, No. 06–1045 (DC Cir.). VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 that these obligations be shifted to contingency measures, consistent with sections 110(l) and 193 of the CAA; however, the state cannot remove the obligations from the SIP. D. Deletion of Obsolete 1-Hour Ozone Standard Provision For the reasons stated above in the background section concerning the obsolete nature of 40 CFR 50.9(c), we are proposing to delete that paragraph. This will have no effect on the status of the 1-hour ozone standard,18 or on the anti-backsliding provisions which set forth how areas must meet 1-hour requirements that applied to the area at the time the area was designated for the 8-hour standard. IV. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is a significant regulatory action because it raises novel legal or policy issues arising out of legal mandates. Accordingly, EPA submitted this action to the Office of Management and Budget (OMB) for review under EO 12866 and any changes made in response to OMB recommendations have been documented in the docket for this action. B. Paperwork Reduction Act This action does not impose any new information collection burden. This action sets forth EPA’s proposed rule for addressing portions of the partial vacatur of EPA’s Phase 1 rule for implementation of the 1997 8-hour ozone NAAQS. However, the Office of Management and Budget (OMB) has previously approved the information collection requirements contained in the existing Phase 1 Rule (April 30, 2004; 69 FR 23951) and the Phase 2 Rule (November 29, 2005; 70 FR 71612) regulations and has been assigned OMB Control Number 2060–0594. The OMB control numbers for EPA’s regulations in 40 CFR are listed in 40 CFR part 9. C. Regulatory Flexibility Act The Regulatory Flexibility Act (RFA) generally requires an Agency to prepare a regulatory flexibility analysis of any regulation subject to notice and 18 The 1-hour standard was revoked for most areas on June 15, 2005, the date one-year after the effective date of designation. For the 13 EAC areas designated attainment with an effective date of April 15, 2008, the 1-hour standard will be revoked April 15, 2009, and for the Denver EAC area, which was designated nonattainment effective November 20, 2007, the 1-hour standard will be revoked November 20, 2008. PO 00000 Frm 00040 Fmt 4702 Sfmt 4702 comment rulemaking requirements under the Administrative Procedures Act or any other statute unless the Agency certifies the rule will not have a significant economic impact on a substantial number of small entities. Small entities include small businesses, small organizations, and small governmental jurisdictions. For purposes of assessing the impacts of these proposed regulations revisions on small entities, small entity is defined as: (1) A small business that is a small industrial entity as defined in the U.S. Small Business Administration (SBA) size standards. (See 13 CFR 121.); (2) A governmental jurisdiction that is a government of a city, county, town, school district or special district with a population of less than 50,000; and (3) A small organization that is any not-forprofit enterprise which is independently owned and operated and is not dominant in its field. After considering the economic impact of these proposed revisions to the regulations on small entities, I certify that this action will not have a significant economic impact on a substantial number of small entities. This proposal will not impose any requirements on small entities. We continue to be interested in the potential impacts of the proposed rule on small entities and welcome comments on issues related to such impacts. D. Unfunded Mandates Reform Act This action contains no Federal mandate under the provisions of Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1531–1538 for State, local, or tribal governments or the private sector. The action imposes no enforceable duty on any State, local or tribal governments or the private sector. Therefore, this action is not subject to the requirements of section 202 and 205 of the UMRA. This action is also not subject to the requirements of section 203 of UMRA because it contains no regulatory requirements that might significantly or uniquely affect small governments. The EPA has determined that these proposed regulation revisions contain no regulatory requirements that may significantly or uniquely affect small governments, including tribal governments because these regulations affect Federal agencies only. E. Executive Order 13132—Federalism Executive Order 13132, entitled ‘‘Federalism’’ (64 FR 43255, August 10, 1999), requires EPA to develop an accountable process to ensure ‘‘meaningful and timely input by state E:\FR\FM\16JAP1.SGM 16JAP1 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules hsrobinson on PROD1PC76 with PROPOSALS and local officials in the development of regulatory policies that have Federalism implications.’’ Policies that have ‘‘Federalism implications’’ are defined in the Executive Order to include regulations that 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.’’ This action does not have Federalism implications. It will 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. This proposed rule, if made final, would restore provisions that existed under the 1-hour ozone standard and that would have continued under the 1-hour standard had not EPA issued a revised ozone standard. Those provisions were revoked when EPA revoked the 1-hour standard itself. Although a court upheld EPA’s right to revoke the 1-hour standard, the court ruled that EPA erroneously revoked several 1-hour NAAQS provisions and vacated those portion of EPA’s rule. Thus, the court’s own ruling restored the former 1-hour NAAQS provisions. This proposed rule merely proposes a corrective regulatory mechanism for restoring the 1-hour contingency measure provision that the court had already restored. Thus, Executive Order 13132 does not apply to these proposed regulation revisions. In the spirit of Executive Order 13121 and consistent with EPA policy to promote communications between EPA and state and local governments, EPA is soliciting comments on this proposal from state and local officials. F. Executive Order 13175—Consultation and Coordination With Indian Tribal Governments This action does not have Tribal implications as specified in Executive Order 13175. They do not have a substantial direct effect on one or more Indian Tribes, since no Tribe has to develop a SIP under these proposed regulatory revisions. Furthermore, these proposed regulation revisions do not affect the relationship or distribution of power and responsibilities between the Federal government and Indian Tribes. The CAA and the Tribal Air Rule establish the relationship of the Federal VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 government and Tribes in developing plans to attain the NAAQS, and these revisions to the regulations do nothing to modify that relationship. Thus, Executive Order 13175 does not apply. EPA specifically solicits additional comment on the proposed revisions to the regulations from Tribal officials. G. Executive Order 13045: Protection of Children From Environmental Health and Safety Risks EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying only to those regulatory actions that concern health or safety risks, such that the analysis required under section 5–501 of the EO has the potential to influence the regulation. This action is not subject to EO 13045 because these proposed rule revisions address whether a SIP will adequately attain and maintain the NAAQS and meet the obligations of the CAA. The NAAQS are promulgated to protect the health and welfare of sensitive population, including children. However, EPA solicits comments on whether the proposed action would result in an adverse environmental effect that would have a disproportionate effect on children. H. Executive Order 13211: Actions That Significantly Affect Energy Supply, Distribution, or Use This action is not subject to Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer Advancement Act Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (‘‘NTTAA’’), Public Law 104–113, 12(d) (15 U.S.C. 272 note) directs EPA to use voluntary consensus standards in its regulatory activities unless to do so would be inconsistent with applicable law or otherwise impractical. Voluntary consensus standards are technical standards (e.g., materials specifications, test methods, sampling procedures, and business practices) that are developed or adopted by voluntary consensus standards bodies. NTTAA directs EPA to provide Congress, through OMB, explanations when the Agency decides not to use available and applicable voluntary consensus standards. This proposed rulemaking does not involve technical standards. Therefore, PO 00000 Frm 00041 Fmt 4702 Sfmt 4702 2943 EPA is not considering the use of any voluntary consensus standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes Federal executive policy on environmental justice. Its main provision directs Federal agencies, to the greatest extent practicable and permitted by law, to make environmental justice part of their mission by identifying and addressing, as appropriate, disproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority populations and low-income populations in the United States. EPA has determined that this proposed rule will not have disproportionately high and adverse human health or environmental effects on minority or low-income populations because it does not affect the level of protection provided to human health or the environment. The proposed revisions to the regulations would, if promulgated revise procedures for states to follow in developing SIPs to attain the NAAQS, which are designed to protect all segments of the general populations. As such, they do not adversely affect the health or safety of minority or low income populations and are designed to protect and enhance the health and safety of these and other populations. K. Determination Under Section 307(d) Pursuant to sections 307(d)(1)(E) and 307(d)(1)(V) of the CAA, the Administrator determines that this action is subject to the provisions of section 307(d). Section 307(d)(1)(V) provides that the provisions of section 307(d) apply to ‘‘such other actions as the Administrator may determine.’’ Appendix A to Preamble. Application of the Proposed Classification Scheme This appendix lists the proposed new subpart 2 classifications for the areas that were originally covered under subpart 1 in the phase 1 rule (April 30, 2004) and that are currently still designated nonattainment. The geographic boundaries of these nonattainment areas are provided in 40 CFR Part 81, Subpart C. E:\FR\FM\16JAP1.SGM 16JAP1 2944 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules 2001–2003 8-hour ozone design value ppm Current nonattainment areas not classified under phase 1 rule, as vacated by the court a Albany-Schenectady-Troy, NY e ........................................................ Allegan Co, MI ................................................................................... Amador and Calaveras Cos (Central Mtn), CA c ............................... Buffalo-Niagara Falls, NY .................................................................. Chico, CA e ......................................................................................... Cincinnati-Hamilton, OH-KY-IN .......................................................... Clearfield & Indiana Cos, PA e ........................................................... Columbus, OH ................................................................................... Denver-Boulder-Greeley-Ft. Collins-Love, CO b ................................ Door Co, WI d ..................................................................................... Essex Co (Whiteface Mtn), NY d ....................................................... Greene Co, PA e ................................................................................ Haywood and Swain Cos (Great Smoky NP), NC e .......................... Jamestown, NY .................................................................................. Kern Co (Eastern Kern), CA .............................................................. Knoxville, TN ...................................................................................... Las Vegas, NV e ................................................................................. Manitowoc Co, WI e ........................................................................... Mariposa and Tuolumne Cos (Southern Mtn),CA c ........................... Nevada Co. (Western Part), CA ........................................................ Phoenix-Mesa, AZ e ........................................................................... Pittsburgh-Beaver Valley, PA ............................................................ Rochester, NY e ................................................................................. San Diego, CA ................................................................................... Sutter Co (Sutter Buttes), CA e .......................................................... 0.087 0.097 0.091 0.099 0.089 0.096 0.09 0.095 0.087 0.094 0.091 0.089 0.085 0.094 0.098 0.092 0.086 0.09 0.091 0.098 0.087 0.094 0.088 0.093 0.088 Proposed subpart 2 classification Marginal ..................... Moderate ................... Moderate ................... Moderate ................... Marginal ..................... Moderate ................... Marginal ..................... Moderate ................... Marginal ..................... Moderate ................... Marginal ..................... Marginal ..................... Marginal ..................... Moderate ................... Moderate ................... Moderate ................... Marginal ..................... Marginal ..................... Moderate ................... Moderate ................... Marginal ..................... Moderate ................... Marginal ..................... Moderate ................... Marginal ..................... 2004–2006 8-hour ozone design value ppm 0.078 0.088 0.093 0.083 0.084 0.086 0.077 0.084 0.081 0.086 NAV 0.079 0.076 0.086 0.086 0.084 0.083 0.082 0.086 0.096 0.083 0.083 0.072 0.088 0.082 2005–2007 8-hour ozone design value ppm 0.079 0.093 0.090 0.086 0.084 0.088 0.080 0.087 0.085 0.090 NAV 0.080 0.078 0.086 0.085 0.088 0.086 0.086 0.085 0.095 0.083 0.087 0.080 0.089 0.081 a A number of areas that were placed in Subpart 1 under the vacated portion of the Phase 1 Rule have since attained the 8-hour ozone standard and have been redesignated to attainment. Because these areas are now designated attainment for the ozone standard, they are not nonattainment areas subject to classification and thus are not included in this table. b Denver originally participated in the Early Action Compact (EAC) program and was listed in the April 30, 2004 designation action as a nonattainment area under subpart 1; its nonattainment designation was deferred until November 20, 2007, at which time based on a violation of the 1997 8-hour ozone NAAQS, Denver’s nonattainment designation became effective. Denver has planning requirements as a former EAC area. c Area would have been marginal but did not have attaining design values by the marginal area attainment date (June 15, 2007) (based on 2004-2006 design values). d Essex Co (the top of Whiteface Mtn), NY, and Door County, WI, would be eligible for consideration under CAA section 182(h) as Rural Transport Areas. This is based on the 1999 definition of Metropolitan Statistical Areas; neither of the above two areas is in or adjacent to an MSA as defined by the Office of Management and Budget (OMB) in 1999 (June 30, 1999; 64 FR 35548). Essex Co does not have a design value for the 2005-2007 period (indicated by NAV (not available)). e These areas had attaining design values as of the marginal area attainment date (June 15, 2007) (based on 2004–2006 design values). List of Subjects 2. Section 50.9 is amended by removing and reserving paragraph (c). (f) * * * (14) Contingency measures under CAA sections 172(c)(9) and 182(c)(9) that would be triggered based on a failure to attain the 1-hour NAAQS by the applicable attainment date or to make reasonable further progress toward attainment of the 1-hour NAAQS. * * * * * 5. Section 51.902 is revised to read as follows: PART 51—REQUIREMENTS FOR PREPARATION, ADOPTION, AND SUBMITTAL OF IMPLEMENTATION PLANS § 51.902 Which classification and nonattainment area planning provisions of the CAA shall apply to areas designated nonattainment for the 8-hour NAAQS? PART 50—NATIONAL PRIMARY AND SECONDARY AMBIENT AIR QUALITY STANDARDS 40 CFR Part 50 Environmental protection, Air pollution control, Carbon monoxide, Lead, Nitrogen dioxide, Ozone, Particulate matter, Sulfur oxides. 1. The authority citation for part 50 continues to read as follows: 40 CFR Part 51 § 50.9 Authority: 42 U.S.C. 7401, et seq. Air pollution control, Intergovernmental relations, Ozone, Particulate matter, Transportation, Volatile organic compounds. Authority: 42 U.S.C. 7409; 42 U.S.C. 7410; 42 U.S.C. 7511–7511f; 42 U.S.C. 7601(a)(1). 3. The authority citation for part 51 continues to read as follows: Dated: January 9, 2009. Stephen L. Johnson, Administrator. hsrobinson on PROD1PC76 with PROPOSALS [Amended] Authority: 23 U.S.C. 101; 42 U.S.C. 7401– 7671q. For the reasons stated in the preamble, title 40, chapter I of the Code of Federal Regulations is proposed to be amended as follows: Subpart X—[Amended] 4. Section 51.900 is amended by adding paragraph (f)(14) to read as follows: § 51.900 * VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 PO 00000 * Definitions. * Frm 00042 * Fmt 4702 * Sfmt 4702 (a) An area designated nonattainment for the 8-hour NAAQS will be classified in accordance with section 181 of the CAA, as interpreted in § 51.903(a), for purposes of the 8-hour NAAQS, and will be subject to the requirements of subpart 2 that apply for that classification. (b) [Reserved] 6. Section 51.905 is amended as follows: a. By adding a sentence to the end of paragraph (b). E:\FR\FM\16JAP1.SGM 16JAP1 Federal Register / Vol. 74, No. 11 / Friday, January 16, 2009 / Proposed Rules b. By removing and reserving paragraphs (e)(2)(ii) and (e)(2)(iii). c. By removing paragraph (e)(4). § 51.905 How do areas transition from the 1-hour NAAQS to the 8-hour NAAQS and what are the anti-backsliding provisions? * * * * * (b) * * * Once an area attains the 1hour NAAQS, the section 172 and 182 contingency measures under the 1-hour NAAQS can be shifted to contingency measures for the 8-hour ozone NAAQS and must remain in the SIP until the area is redesignated to attainment for the 8-hour NAAQS. * * * * * [FR Doc. E9–806 Filed 1–15–09; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R02–OAR–2008–0497, FRL–8763–4] Approval and Promulgation of Implementation Plans; New Jersey Reasonable Further Progress Plans, Reasonably Available Control Technology, Reasonably Available Control Measures and Conformity Budgets AGENCY: Environmental Protection Agency (EPA). ACTION: Proposed rule. The Environmental Protection Agency (EPA) is proposing action on portions of two State Implementation Plan revisions submitted by New Jersey that are intended to meet several Clean Air Act (Act) requirements for attaining the 0.08 part per million (ppm) 8-hour ozone national ambient air quality standards. EPA is proposing approval of: The 2008 reasonable further progress plan and associated 2008 ozone projection year emission inventories, contingency measures for the 2008 reasonable further progress plan, 2008 conformity budgets used for planning purposes, and the reasonably available control measure analysis. In addition, EPA is proposing a conditional approval of New Jersey’s efforts to meet the reasonably available control technology requirement. The intended effect of this action is to approve those programs that meet Act requirements and to further achieve emission reductions that will be critical to attainment of the national ambient air quality standard for ozone in New Jersey’s two nonattainment areas. DATES: Comments must be received on or before February 17, 2009. hsrobinson on PROD1PC76 with PROPOSALS SUMMARY: VerDate Nov<24>2008 17:46 Jan 15, 2009 Jkt 217001 Submit your comments, identified by Docket Number EPA–R02– OAR–2008–0497, by one of the following methods: • https://www.regulations.gov: Follow the on-line instructions for submitting comments. • E-mail: Werner.Raymond@epa.gov. • Fax: 212–637–3901 • Mail: Raymond Werner, Chief, Air Programs Branch, Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th Floor, New York, New York 10007–1866. • Hand Delivery: Raymond Werner, Chief, Air Programs Branch, Environmental Protection Agency, Region 2 Office, 290 Broadway, 25th Floor, New York, New York 10007– 1866. Such deliveries are only accepted during the Regional Office’s normal hours of operation. The Regional Office’s official hours of business are Monday through Friday, 8:30 to 4:30 excluding Federal holidays. Instructions: Direct your comments to Docket No. EPA–R02–OAR–2008–0497. EPA’s policy is that all comments received will be included in the public docket without change and may be made available online at https:// www.regulations.gov, including any personal information provided, unless the comment includes information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Do not submit information that you consider to be CBI or otherwise protected through https:// www.regulations.gov or e-mail. The https://www.regulations.gov Web site is an ‘‘anonymous access’’ system, which means EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send an e-mail comment directly to EPA without going through https:// www.regulations.gov your e-mail address will be automatically captured and included as part of the comment that is placed in the public docket and made available on the Internet. If you submit an electronic comment, EPA recommends that you include your name and other contact information in the body of your comment and with any disk or CD–ROM you submit. If EPA cannot read your comment due to technical difficulties and cannot contact you for clarification, EPA may not be able to consider your comment. Electronic files should avoid the use of special characters or any form of encryption, and be free of any defects or viruses. For additional information about EPA’s public docket visit the EPA Docket Center homepage at https:// www.epa.gov/epahome/dockets.htm. ADDRESSES: PO 00000 Frm 00043 Fmt 4702 Sfmt 4702 2945 Docket: All documents in the docket are listed in the https:// www.regulations.gov index. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, will be publicly available only in hard copy. Publicly available docket materials are available either electronically in https:// www.regulations.gov or in hard copy at the Environmental Protection Agency, Region II Office, Air Programs Branch, 290 Broadway, 25th Floor, New York, New York 10007–1866. EPA requests, if at all possible, that you contact the individual listed in the FOR FURTHER INFORMATION CONTACT section to view the hard copy of the docket. You may view the hard copy of the docket Monday through Friday, 8 a.m. to 4 p.m., excluding Federal holidays. FOR FURTHER INFORMATION CONTACT: Raymond Forde (forde.raymond@epa.gov) concerning emission inventories and reasonable further progress and Paul Truchan (truchan.paul@epa.gov) concerning other portions of the SIP revision, Air Programs Branch, Environmental Protection Agency, 290 Broadway, 25th Floor, New York, New York 10007– 1866, (212) 637–4249. SUPPLEMENTARY INFORMATION: Table of Contents I. What Action Is EPA Proposing? II. Background Information A. What Are the Act Requirements for a Moderate 8-Hr Ozone Nonattainment Area? 1. History and Time Frame for the State’s Attainment Demonstration SIP 2. Moderate Area Requirements III. What Was Included in New Jersey’s SIP Submittals? IV. EPA’s Review and Technical Information A. Emission Inventories 1. What Are the Act Requirements? 2. What Emission Inventories Were Included in the SIP? 3. What Is EPA’s Evaluation? B. Reasonable Further Progress Plans 1. What are the Act Requirements? 2. What Reasonable Further Progress Plans Were Included in the SIP? 3. What Is EPA’s Evaluation? C. Contingency Measures 1. What Are the Act Requirements? 2. What Contingency Measures Were Included in the SIP? 3. What Is EPA’s Evaluation? D. RACT for Stationary Sources 1. What Are the Act Requirements? 2. How Did New Jersey Perform Its RACT Analysis? 3. What Were the Results of New Jersey’s Analysis of RACT for Stationary Sources? 4. What Is EPA’s Evaluation? E:\FR\FM\16JAP1.SGM 16JAP1

Agencies

[Federal Register Volume 74, Number 11 (Friday, January 16, 2009)]
[Proposed Rules]
[Pages 2936-2945]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-806]



[[Page 2936]]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 50 and 51

[EPA-HQ-OAR-2007-0956, FRL-8762-5]
RIN 2060-AO96


Proposed Rule To Implement the 1997 8-Hour Ozone National Ambient 
Air Quality Standard: Revision on Subpart 1 Area Reclassification and 
Anti-Backsliding Provisions Under Former 1-Hour Ozone Standard; 
Proposed Deletion of Obsolete 1-Hour Ozone Standard Provision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA proposes to revise the rule for implementing the 1997 
8-hour ozone national ambient air quality standard (NAAQS) for several 
of the limited portions of the rule vacated by the U.S. Circuit Court 
of Appeals for the District of Columbia. The proposal addresses the 
classification system for the subset of initial 8-hour ozone 
nonattainment areas that the implementation rule originally covered 
under Clean Air Act (CAA or Act) title I, part D, subpart 1. The 
proposal also addresses how 1-hour ozone contingency measures that 
apply for failure to attain or make reasonable progress toward 
attainment of the 1-hour standard should apply under the anti-
backsliding provisions of the implementation rule. In addition, the 
proposal removes language relating to the vacated provisions of the 
rule that provided exemptions from the requirements of nonattainment 
new source review (NSR) and CAA section 185 penalty fees under the 1-
hour standard. The EPA plans to issue a separate proposed rule 
providing additional guidance as to how these two requirements (185 
fees and NSR) now apply.
    In addition, this proposal includes the deletion of an obsolete 
provision in the 1-hour ozone standard itself.

DATES: Comments. Comments must be received on or before February 17, 
2009.
    Public Hearing. If anyone contacts us requesting a public hearing 
by January 26, 2009, we will hold a public hearing approximately 30 
days after publication in the Federal Register. Additional information 
about the hearing would be published in a subsequent Federal Register 
notice.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2007-0956, by one of the following methods:
     www.regulations.gov: Follow the on-line instructions for 
submitting comments.
     E-mail: a-and-r-docket@epa.gov.
     Fax: (202) 566-9744.
     Mail: Air and Radiation Docket and Information Center, 
Attention Docket ID No. EPA-HQ-OAR-2007-0956, Environmental Protection 
Agency, 1301 Constitution Ave., NW., Washington, DC 20460. Mail Code: 
2822T. Please include two copies if possible.
     Hand Delivery: Air and Radiation Docket and Information 
Center, Attention Docket ID No. EPA-HQ-OAR-2007-0956, Environmental 
Protection Agency in the EPA Headquarters Library, Room Number 3334 in 
the EPA West Building, located at 1301 Constitution Ave., NW., 
Washington, DC. The EPA/DC Public Reading Room hours of operation will 
be 8:30 a.m. to 4:30 p.m. Eastern Standard Time (EST), Monday through 
Friday, Air and Radiation Docket and Information Center.
    Instructions: Direct your comments to Docket ID No. EPA-HQ-OAR-
2007-0956. The EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
on-line at www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
confidential business information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through www.regulations.gov, 
or e-mail. The www.regulations.gov Web site is an ``anonymous access'' 
system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through 
www.regulations.gov, your e-mail address will be automatically captured 
and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, any form of encryption, and be free of any defects or 
viruses. For additional information about EPA's public docket, visit 
the EPA Docket Center homepage at https://www.epa.gov/epahome/dockets.htm. For additional instructions on submitting comments, go to 
the SUPPLEMENTARY INFORMATION section of this document.
    Docket: All documents in the docket are listed in 
www.regulations.gov. Although listed in the index, some information is 
not publicly available, i.e., CBI or other information whose disclosure 
is restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the Internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available either electronically in www.regulations.gov or in hard copy 
at the Air and Radiation Docket and Information Center in the EPA 
Headquarters Library, Room Number 3334 in the EPA West Building, 
located at 1301 Constitution Ave., NW., Washington, DC. The Public 
Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744.
    Public Hearing: If a hearing is held, it will be held at the U.S. 
Environmental Protection Agency, 109 TW Alexander Drive, Research 
Triangle Park, North Carolina 27709, Building C.

FOR FURTHER INFORMATION CONTACT: For further general information or 
information on the issue of reclassification of subpart 1 areas, 
contact Mr. John Silvasi, Office of Air Quality Planning and Standards, 
U.S. Environmental Protection Agency, (C539-01), Research Triangle 
Park, NC 27711, phone number (919) 541-5666, fax number (919) 541-0824 
or by e-mail at silvasi.john@epa.gov. For information on the 1-hour 
contingency measures issue discussed in this notice, contact Ms. Denise 
Gerth, Office of Air Quality Planning and Standards, (C504-03), U.S. 
EPA, Research Triangle Park, North Carolina 27711, phone number (919) 
541-5550 or by e-mail at gerth.denise@epa.gov, fax number (919) 541-
0824. To request a public hearing, contact Mrs. Pamela Long, Office of 
Air Quality Planning and Standards, (C504-03), U.S. EPA, Research 
Triangle Park, North Carolina 27711, telephone number (919) 541-0641 or 
by e-mail at long.pam@epa.gov, fax number (919) 541-5509.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does This Action Apply to Me?

    Entities potentially affected directly by the subject rule for this 
action include state, local, and Tribal governments. Entities 
potentially

[[Page 2937]]

affected indirectly by this action include owners and operators of 
sources of emissions (volatile organic compounds (VOCs) and nitrogen 
oxides (NOX)) that contribute to ground-level ozone 
concentrations.

B. What Should I Consider as I Prepare My Comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through 
www.regulations.gov or e-mail. Clearly mark the part or all of the 
information that you claim to be CBI. For CBI information on a disk or 
CD-ROM that you mail to EPA, mark the outside of the disk or CD-ROM as 
CBI and then identify electronically within the disk or CD-ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed to be CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
     Explain why you agree or disagree; suggest alternatives 
and substitute language for your requested changes.
     Describe any assumptions and provide any technical 
information and/or data that you used.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns, and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

C. Where Can I Get a Copy of This Document and Other Related 
Information?

    In addition to being available in the docket, an electronic copy of 
this notice is also available on the World Wide Web. A copy of this 
notice will be posted at https://www.epa.gov/ttn/naaqs/ozone/o3imp8hr/.

D. What Information Should I Know About the Public Hearing?

    EPA will hold a hearing only if a party notifies EPA by January 26, 
2009, expressing its interest in presenting oral testimony on issues 
addressed in this notice. Any person may request a hearing by calling 
Mrs. Pamela Long at (919) 541-0641 before 5 p.m. by January 26, 2009. 
Persons interested in presenting oral testimony should contact Mrs. 
Pamela Long at (919) 541-0641. Any person who plans to attend the 
hearing should also contact Mrs. Pamela S. Long at (919) 541-0641 or 
visit the EPA's Web site at https://www.epa.gov/ttn/naaqs/ozone/o3imp8hr/ and to learn if a hearing will be held.
    If a public hearing is held on this notice, it will be held at the 
EPA, Building C, 109 T.W. Alexander Drive, Research Triangle Park, NC 
27709. Because the hearing will be held at a U.S. Government facility, 
everyone planning to attend should be prepared to show valid picture 
identification to the security staff in order to gain access to the 
meeting room. Please check our Web site at https://www.epa.gov/ttn/naaqs/ozone/o3imp8hr/ for information and updates concerning the public 
hearing.
    If held, the public hearing will begin at 10 a.m. and end 1 hour 
after the last registered speaker has spoken. The hearing will be 
limited to the subject matter of this document. Oral testimony will be 
limited to 5 minutes. The EPA encourages commenters to provide written 
versions of their oral testimony either electronically (on computer 
disk or CD-ROM) or in paper copy. The list of speakers will be posted 
on EPA's Web site at https://www.epa.gov/ttn/naaqs/ozone/o3imp8hr/. 
Verbatim transcripts and written statements will be included in the 
rulemaking docket.
    A public hearing would provide interested parties the opportunity 
to present data, views, or arguments concerning issues addressed in 
this notice. The EPA may ask clarifying questions during the oral 
presentations, but would not respond to the presentations or comments 
at that time. Written statements and supporting information submitted 
during the comment period will be considered with the same weight as 
any oral comments and supporting information presented at a public 
hearing.

E. How Is This Document Organized?

    The Information Presented in This Document is Organized as Follows

I. General Information
    A. Does This Action Apply to Me?
    B. What Should I Consider as I Prepare My Comments for EPA?
    C. Where Can I Get a Copy of This Document and Other Related 
Information?
    D. What Information Should I Know About the Public Hearing?
    E. How Is This Document Organized?
II. What Is the Background for This Proposal?
    A. Litigation on EPA's 8-Hour Ozone NAAQS Implementation Rule 
(40 CFR Part 51, Sections 51.900 Through 51.918 (Collectively 
Subpart X))
    B. Obsolete Provision in 1-Hour Ozone Standard (40 CFR Part 50)
III. This Action
    A. Reclassification of Subpart 1 8-Hour Ozone Nonattainment 
Areas
    1. Current Rule
    2. Effect of Court Ruling
    3. Proposed Rule
    4. Consequences of Proposed Rule
    B. Anti-Backsliding Under 1-Hour Ozone Standard--In General 
(Also Discussing NSR and Section 185 Penalty Fees)
    C. Contingency Measures
    1. Phase 1 Rule
    2. Effect of Court Ruling
    3. Proposed Rule
    D. Deletion of Obsolete 1-Hour Ozone Standard Provision
IV. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132--Federalism
    F. Executive Order 13175--Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer Advancement Act
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Determination Under Section 307(d)
    Appendix A to Preamble. Application of the Proposed 
Classification Scheme

II. What Is the Background for This Proposal?

A. Litigation on EPA's 8-Hour Ozone NAAQS Implementation Rule (40 CFR 
Part 51, Sections 51.900 Through 51.918 (Collectively Subpart X))

    On April 30, 2004 (69 FR 23951), EPA published Phase 1 of a final 
rule that addressed the following key elements for implementing the 
1997 8-hour ozone NAAQS: Classifications for the 1997 8-hour NAAQS; 
revocation of the 1-hour NAAQS (i.e., when the 1-hour NAAQS will no 
longer apply); anti-backsliding principles for 1-hour ozone

[[Page 2938]]

requirements to ensure continued progress toward attainment of the 1997 
8-hour ozone NAAQS; attainment dates; and the timing of emissions 
reductions needed for attainment.
    Following publication of the April 30, 2004 final Phase 1 Rule, the 
Administrator received three petitions, pursuant to section 
307(b)(7)(B) of the CAA requesting reconsideration of a number of 
aspects of the final rule.\1\ In final rulemaking on one of these 
petitions, EPA further clarified the implementation rule in two 
respects: (a) Section 185 penalty fees under the 1-hour standard would 
no longer be applicable after revocation of the 1-hour standard, and 
(b) the effective date of designations under the 1997 8-hour standard 
(i.e., for almost all areas, June 15, 2004) is the date for determining 
which 1-hour control measures continue to apply in an area once the 1-
hour standard is revoked.\2\ Additionally, EPA clarified that the 
requirement to have 1-hour contingency measures for failure to make 
progress or failure to attain would no longer apply once the 1-hour 
standard was revoked. On April 4, 2005 (70 FR 17018), we published a 
proposed rule to take comment on the issue of whether we should 
interpret the Act to require areas to retain major NSR requirements 
that apply to certain 1-hour ozone nonattainment areas in implementing 
the 1997 8-hour standard. We took final action on the NSR issues on 
June 30, 2005 (70 FR 39413; July 8, 2005), to interpret the CAA to not 
require NSR under the 1-hour standard once the 1-hour standard was 
revoked.
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    \1\ Three petitions for reconsideration of the Phase 1 Rule were 
filed by: (1) Earthjustice on behalf of the American Lung 
Association, Environmental Defense, Natural Resources Defense 
Council, Sierra Club, Clean Air Task Force, Conservation Law 
Foundation, and Southern Alliance for Clean Energy; (2) the National 
Petrochemical and Refiners Association and the National Association 
of Manufacturers; and (3) the American Petroleum Institute, American 
Chemistry Council, American Iron and Steel Institute, National 
Association of Manufacturers and the U.S. Chamber of Commerce.
    \2\ 70 FR 30592 (May 26, 2005).
---------------------------------------------------------------------------

    Several parties challenged EPA's Phase 1 Rule and the two 
reconsideration rules, and on December 22, 2006, the Court upheld 
certain challenges and rejected others, but purported to vacate the 
Phase 1 Implementation Rule in its entirety. South Coast Air Quality 
Management District, et al., v. EPA, 472 F.3d 882 (D.C. Cir. 2006) 
reh'g denied 489 F.3d 1245 (clarifying that the vacatur was limited to 
the issues on which the court granted the petitions for review).
    The EPA requested rehearing and clarification of the ruling and on 
June 8, 2007, the Court clarified that it was vacating the rule only to 
the extent that it had upheld petitioners' challenges. Thus, the 
following provisions of the Phase 1 rule were vacated:
     The provisions that placed 8-hour ozone nonattainment 
areas under subpart 1, part D, title I of the CAA instead of subpart 2.
     The provisions that waived obligations under the revoked 
1-hour standard for NSR, section 185 penalty fees, and contingency 
measures for failure to attain or to make reasonable progress toward 
attainment of the 1-hour standard.\3\
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    \3\ The Court's June clarification confirmed that the December 
2006 decision was not intended to establish a requirement that areas 
continue to demonstrate conformity for the 1-hour ozone standard for 
anti-backsliding purposes.
---------------------------------------------------------------------------

B. Obsolete Provision in 1-Hour Ozone Standard (40 CFR Part 50)

    When EPA promulgated the 8-hour ozone standard on July 18, 1997 (62 
FR 38856), EPA initially revised 40 CFR 50.9 to revoke the 1-hour ozone 
standard once EPA determined that an area had air quality meeting the 
1-hour standard. Subsequently, because the pending litigation over the 
8-hour NAAQS created uncertainty regarding the 8-hour NAAQS and our 
implementation strategy, we revised 40 CFR 50.9 to place two 
limitations on our authority to apply the revocation rule: (1) The 8-
hour NAAQS must no longer be subject to legal challenge, and (2) it 
must be fully enforceable.\4\ (65 FR 45182, July 20, 2000). These 
limitations were codified as Sec.  50.9(c). In the final Phase 1 Rule, 
we again revised Sec.  50.9, this time to revise Sec.  50.9(b) to 
provide for revocation of the 1-hour standard one year after 
designation of areas under the 1997 8-hour ozone standard. However, we 
neglected to remove paragraph (c) which was no longer necessary as the 
8-hour standard was no longer subject to legal challenge and the 
standard had been upheld and was enforceable. American Trucking Assoc. 
v. EPA 283 F.3d 355 (DC Cir. 2002) (resolving all remaining legal 
challenges to the 8-hour ozone standard and upholding EPA's rule 
establishing that standard.)
---------------------------------------------------------------------------

    \4\ In addition, in June 2003, we stayed our authority to apply 
the revocation rule pending our reconsideration in this rulemaking 
of the basis for revocation. (68 FR 38160, June 26, 2003).
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III. This Action

A. Reclassification of Subpart 1 8-Hour Ozone Nonattainment Areas

1. Current Rule
    In the Phase 1 implementation rule, EPA established which planning 
requirements of part D of title I of the Act would apply to areas for 
purposes of implementing the 8-hour ozone standard. 40 CFR 51.902. 
(``Which classification and nonattainment area planning provisions of 
the CAA shall apply to areas designated nonattainment for the 8-hour 
NAAQS?'') Paragraph (a) provided that areas with a 1-hour ozone design 
value equal to or greater than 0.121 parts per million (ppm) at the 
time of 8-hour NAAQS nonattainment designation (April 2004) would be 
classified in accordance with CAA title I, part D, section 181 of the 
CAA as interpreted in 40 CFR 51.903(a) for purposes of the 8-hour 
NAAQS, and would be subject to the requirements of CAA title I, part D, 
subpart 2 that apply for the area's classification. 40 CFR 51.903(a) 
set forth a translation into 8-hour design values of the CAA section 
181 classification table, which is written in terms of 1-hour ozone 
design values. The preamble to the Phase 1 Rule provides the rationale 
and procedure for that translation. (See 69 FR 23958 et seq.) Section 
181 in subpart 2 provides for specific classifications of each area by 
the magnitude of the ozone problem, providing shorter time periods for 
attainment for lower classifications and longer time periods for higher 
classifications. Higher classified areas also face additional specified 
control requirements than lower classified areas. A summary listing of 
the subpart 2 requirements by classification compared to subpart 1 
requirements appeared in the proposed 8-hour ozone implementation rule. 
(See 68 FR 32864, Appendix A; June 2, 2003.)
    Paragraph (b) of Sec.  51.902 provided that 1997 8-hour ozone 
nonattainment areas with a 1-hour design value less than 0.121 ppm at 
the time of 8-hour NAAQS nonattainment designation would be covered 
under section 172(a)(1) of the CAA and would be subject to the 
requirements of CAA title I, part D, subpart 1 and not those of subpart 
2.
    The EPA designated areas for the 1997 8-hour standard on April 30, 
2004 (69 FR 23858), and in accordance with section 181(a), the areas 
subject to subpart 2 under the Phase 1 Rule were classified by 
operation of law at that time. Of the 126 areas designated 
nonattainment, 84 were classified as under subpart 1, and the remaining 
42 as under subpart 2.\5\
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    \5\ 13 of the 84 subpart 1 areas and one subpart 2 area were 
designated as ``Early Action Compact Areas'' with a deferred 
effective date for their nonattainment designation.

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[[Page 2939]]

2. Effect of Court Ruling
    In its decisions on the Phase 1 rule, the Court vacated the 
provisions that subjected any 8-hour ozone nonattainment areas to 
coverage under subpart 1. As the basis for its decision, the Court 
first agreed that Congress mandated that certain areas be subject to 
subpart 2, but ruled that our use of 0.121 ppm 1-hour design value as a 
dividing line was incorrect, holding that the Supreme Court had 
required use of 0.09 ppm on the 8-hour scale as the level for 
determining which areas Congress mandated would be subject to subpart 
2.\6\ Furthermore, although recognizing that Congress did not mandate 
that areas with an 8-hour design value be subject to subpart 2, the 
Court rejected as unreasonable our rationale for placing certain areas 
in subpart 1 instead of subpart 2. The Court vacated the Phase 1 rule 
to the extent it placed certain areas solely under the implementation 
provisions of subpart 1. Thus, a rule revision is necessary to address 
which provisions of the Act--only subpart 1 or subpart 2 \7\--should 
apply to those areas that were placed solely under subpart 1 in the 
Phase 1 Rule.
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    \6\ ``* * * the gap identified in Whitman affords EPA discretion 
only to the extent that an area is nonattaining but its air quality 
is not as dangerous as the level addressed by the 1990 Amendments, 
which now translates to 0.09 ppm on the 8 hour scale. Thus, the gap 
extends only to the extent that the standard was strengthened and 
not to the extent that the measurement technique merely changed * * 
* We therefore hold that the 2004 Rule violates the Act insofar as 
it subjects areas with 8-hour ozone in excess of 0.09 ppm to Subpart 
1. We further hold that EPA's interpretation of the Act in a manner 
to maximize its own discretion is unreasonable because the clear 
intent of Congress in enacting the 1990 Amendments was to the 
contrary.''
    \7\ We note that areas subject to subpart 2 are also subject to 
subpart 1 to the extent subpart 1 specifies requirements that are 
not superseded by more specific obligations under subpart 2.
---------------------------------------------------------------------------

3. Proposed Rule
    We are proposing that all areas designated nonattainment for the 
1997 8-hour ozone standard will be classified under and subject to the 
nonattainment planning requirements of subpart 2. We would modify the 
regulatory text to remove current Sec.  51.902(b) (which was vacated by 
the Court), which placed certain areas only under subpart 1. We 
considered the possibility of proposing to place areas with design 
values below 0.09 ppm 8-hour design value under subpart 1, but are not 
proposing this option in the interest of not further delaying 
implementation of the 8-hour ozone NAAQS that was established over 10 
years ago.\8\ However, we solicit comment on this part of this 
proposal.
---------------------------------------------------------------------------

    \8\ As the court made clear in its decision on rehearing, the 
CAA does not mandate coverage under subpart 2 of all areas 
designated nonattainment for an ozone NAAQS. As EPA moves forward to 
develop an implementation strategy for the new 2007 ozone NAAQS, we 
will consider whether subpart 1 alone might apply in some areas for 
purposes of implementing that NAAQS.
---------------------------------------------------------------------------

    Because these are the initial classifications for these areas for 
the 1997 ozone standard, the EPA further proposes to use the 8-hour 
ozone design values (from 2001-2003 air quality data) that were used to 
designate these areas nonattainment initially as the basis for 
classification and that the classification table in 40 CFR 51.903 
(established by the Phase 1 Rule) be used for the classification. CAA 
section 181(a) provides that ``at the time'' areas are designated for a 
NAAQS, they will be classified ``by operation of law'' based on the 
``design value'' of the areas and in accordance with table 1 of that 
section. Thus, this language specifies that the area will be classified 
based on the design value that existed for the area ``at the time'' of 
designation. Areas were designated nonattainment in 2004, based on 
design values derived from data from 2001-2003. We are soliciting 
comment on the approach of classifying these areas based on the same 
data that was used for designation.
    Also, since the classification under this proposal would be the 
initial one under the 1997 8-hour standard for these areas after court 
vacatur of the method EPA used to treat these areas under subpart 1 
only, EPA proposes that the provision of CAA section 181(a)(4) would 
apply to these areas, which would allow the Administrator in his 
discretion to adjust the classification--within 90 days after the 
initial classification--to a higher or lower classification ``* * * if 
the design value were 5 percent greater or 5 percent less than the 
level on which such classification was based.'' The EPA proposes to 
address requests for such classification adjustments for the newly-
classified areas that were originally covered under subpart 1 in a 
manner similar to the way described for the original round of subpart 2 
classifications.\9\ This process is described at 69 FR 23863 et seq. 
(April 30, 2004).
---------------------------------------------------------------------------

    \9\ Note, however, that if a State requests a reclassification 
from moderate to marginal and the attainment date for marginal areas 
has passed and the area is violating the standard, EPA would not 
grant the request for the reclassification.
---------------------------------------------------------------------------

    Of the original 84 subpart 1 areas designated in the April 30, 2004 
rulemaking, 13 areas successfully completed participation in the Early 
Action Compacts (EAC) program. As a result, these areas received 
deferred designations and classifications for as long as they continued 
to meet program requirements. These requirements were designed to 
ensure early reductions of ozone and progress toward attainment of the 
1997 NAAQS. At the completion of the program, these areas were 
designated attainment for the 8-hour ozone NAAQS effective April 15, 
2008.\10\
---------------------------------------------------------------------------

    \10\ One area (Denver, CO) that was originally part of the EAC 
program did not successfully complete all milestones and was 
subsequently designated nonattainment under subpart 1. Thus, this 
area would be treated the same as all areas classified under subpart 
1 under the original provisions of the Phase 1 Rule.
---------------------------------------------------------------------------

    Despite the proposal to implement the 1997 8-hour standard by 
classifying nonattainment areas under title I, part D, subpart 2 at 
this time, EPA reserves the right to propose to cover future ozone 
nonattainment areas under title I, part D, subpart 1, in accordance 
with the constraints outlined in the Court's rulings. The EPA may in 
the future examine the appropriate role for subpart 1 in classifying 
nonattainment areas and in flexible, efficient, enforceable 
implementation of an ozone NAAQS.
    Note that CAA section 182(h) (``Rural Transport Areas'') would be 
available for any nonattainment area that qualifies as a rural 
transport area under that section. A Rural Transport Area would have to 
only meet requirements of a marginal area.
4. Consequences of Proposed Rule
    Areas originally covered under subpart 1 that have already been 
redesignated to attainment will not be affected by this rule, including 
the 13 EAC areas noted above.\11\ Appendix A provides a listing of the 
former subpart 1 areas that are still designated nonattainment and that 
would be classified under subpart 2 under this proposed rule and 
provides the subpart 2 classification for the area based on the air 
quality data initially used to designate the area in the 2004 
designation rule. All of these areas would be classified as either 
marginal or moderate.\12\ The classification table of 40 CFR 51.903 
provides an outside attainment date based on a number of years after 
the effective date of the

[[Page 2940]]

nonattainment designation (3 years for marginal and 6 years for 
moderate). For all areas other than Denver, the effective date of 
designation for the 8-hour standard was June 15, 2004. Thus, marginal 
nonattainment areas would have a maximum statutory attainment date of 
June 15, 2007 and moderate areas a maximum date of June 15, 2010. Since 
the marginal area attainment date has passed, EPA proposes that any 
area that would be classified under the proposal as marginal, and that 
did not attain by June 15, 2007, or that does not meet the criteria for 
an attainment date extension under CAA section 181(a)(5)(B) and 40 CFR 
51.907, would be reclassified immediately as moderate under this rule.
---------------------------------------------------------------------------

    \11\ See, e.g., 73 FR 11558 (col. 2) (March 4, 2008), together 
with e.g., 73 FR 1166 (col 3) (January 8, 2008).
    \12\ Note that Essex Co (the top of Whiteface Mtn), NY, and Door 
County, WI would be eligible for consideration under CAA section 
182(h) as a Rural Transport Area. This is based on the 1999 
definition of Metropolitan Statistical Areas; neither of the above 
two areas is in or adjacent to an MSA as defined by the Office of 
Management and Budget (OMB) in 1999 (June 30, 1999; 64 FR 35548).
---------------------------------------------------------------------------

    Areas classified marginal or moderate would be required to meet the 
marginal or moderate area requirements of CAA section 182(a) and/or 
(b). Moderate area requirements include the requirements for the 
marginal classification. Briefly, these requirements are depicted in 
Table 1:

                                 Table 1
------------------------------------------------------------------------
                                              Subpart 2 \a\
            Element            -----------------------------------------
                                  Classification        Requirement
------------------------------------------------------------------------
Attainment Dates..............  Marginal.........  3 years from CAA
For all areas, attainment                           Amendments
 should occur as expeditiously                      enactment.
 as practicable, but no later
 than specified timeframe.
                                Moderate.........  6 years from CAA
                                                    Amendments
                                                    enactment.
Reasonable Further Progress     Marginal.........  None.
 (RFP).
                                Moderate.........  15% VOC reduction
                                                    from baseline within
                                                    6 years of
                                                    enactment.
Attainment demonstration        Marginal.........  None.
 submission.
                                Moderate.........  Due 3 years after CAA
                                                    Amendments
                                                    enactment.
NSR and Reasonable Achievable   Marginal.........  100 tons per year
 Technology (RACT) major                            (TPY).
 source applicability.
                                Moderate.........  100 TPY.
NSR offsets...................  Marginal.........  1.1 to 1.
                                Moderate.........  1.15 to 1.
Bump-up to higher               All except severe  Required to bump up
 classification.                 & extreme.         to higher
                                                    classification if
                                                    area doesn't meet
                                                    attainment date.
NOX control for RACT..........  Moderate & above;  Requirements under
                                 all areas in       this subpart for
                                 Ozone Transport    major stationary VOC
                                 Commission.        sources (NSR & RACT)
                                                    also apply to all
                                                    major NOX sources,
                                                    unless EPA approves
                                                    NOX waiver.
Emission inventory............  All..............  Comprehensive
                                                    emissions inventory
                                                    within 2 years of
                                                    enactment; update
                                                    every 3 years (until
                                                    area attains).
                                                    Provision for
                                                    submission to state
                                                    of annual emissions
                                                    statements from VOC
                                                    and NOX stationary
                                                    sources.
RACT..........................  Marginal & above.  Pre-1990 RACT fix-up.
                                Moderate & above.  RACT for all Control
                                                    Techniques
                                                    Guidelines sources
                                                    and all other major
                                                    sources.
Inspection and Maintenance (I/  Marginal.........  Pre-1990 corrections
 M).                                                to previously
                                                    required I&M
                                                    programs.
                                Moderate.........  Basic I/M.
Consequences of failure to      Marginal,          Bump-up for failure
 attain.                         moderate.          to attain.
Contingency measures..........  All..............  Required for failure
                                                    to meet the Rate of
                                                    Progress milestones
                                                    or attain.
------------------------------------------------------------------------
\a\ Note that subpart 1 requirements also apply to subpart 2 areas to
  the extent that the CAA does not provide an exemption (e.g., 182(a)
  (last paragraph, which exempts marginal areas from the requirement to
  submit an attainment demonstration)) or such requirements are not
  superseded by more specific obligations under subpart 2 (e.g., where
  subpart 2 specifies specific increments of progress for moderate and
  above areas in place of the more general requirement for ``reasonable
  further progress'' under subpart 1). Subpart 1 requirements that are
  also applicable to subpart 2 areas (but that are not addressed in
  subpart 2) include reasonably available control measures (RACM)
  requirement and transportation and general conformity requirements.

    With respect to transportation conformity requirements, current 
transportation plan and transportation improvement program conformity 
determinations for the 1997 8-hour ozone standard will remain valid, 
and are not impacted by this action. Areas that would be reclassified 
under subpart 2 are already satisfying the applicable CAA section 
176(c) conformity requirements for the 1997 8-hour ozone standard. In 
addition, no new conformity deadline would be triggered in the subject 
areas after their classification under subpart 2. Nonattainment areas 
that are classified as marginal or moderate under Subpart 2 would 
continue to make future conformity determinations according to the 
applicable requirements of 40 CFR 93.109(d) and (e). EPA notes that any 
new moderate areas that continue to be required to use the interim 
emissions tests will be required to meet additional test requirements 
that do not apply to marginal areas (40 CFR 93.119(b)(1)).
    The Phase 1 Rule provided that states must submit the major SIP 
elements for the subpart 1 areas no later than June 15, 2007. For areas 
classified as moderate, EPA also provided a submission date of June 15, 
2007 for most requirements, but required states to submit the 
reasonably available control technology requirement (RACT) SIP by 
September 15, 2006. The EPA proposes to require states to submit all 
required SIP elements for the areas' marginal or moderate 
classification one year after the effective date of a final rule 
classifying the areas. The EPA believes this is an appropriate and 
reasonable amount of time given the attainment dates that will apply to 
these areas and the fact that the areas should have made significant 
progress toward meeting these requirements based on the obligations 
that applied before the

[[Page 2941]]

subpart 1 classification provision of the Phase 1 rule was vacated. As 
subpart 1 areas, these areas should have been well along the path to 
developing SIPs at the time the Court issued its decision in December 
2006. We believe states have already had ample opportunity to complete 
the technical work to support development of these major SIP elements 
prior to now. Also, EPA has encouraged states to continue planning for 
clean air in the prior subpart 1 areas.\13\ Therefore, EPA believes one 
year from the date of final rule should be sufficient time for states 
to submit these SIPs. However, EPA solicits comment on this aspect of 
the proposal.
---------------------------------------------------------------------------

    \13\ Memorandum of March 19, 2007 from William L. Wehrum to EPA 
Regional Administrators, re: ``Impacts of the Court Decision on the 
Phase 1 Ozone Implementation Rule'' (response to Question 2) and 
memorandum of June 15, 2007 from Robert J. Meyers to Regional 
Administrators re: ``Decision of the U.S. Court of Appeals for the 
District of Columbia Circuit on our Petition for Rehearing of the 
Phase 1 Rule to Implement the 8-Hour Ozone NAAQS'' (Implications for 
Subpart 1 Areas).
---------------------------------------------------------------------------

B. Anti-Backsliding Under 1-Hour Ozone Standard--In General (Also 
Discussing NSR and Section 185 Penalty Fees)

    The EPA codified the anti-backsliding provisions governing the 
transition from the revoked 1-hour ozone NAAQS to the 1997 8-hour ozone 
NAAQS in 40 CFR 51.905(a). These provisions, as promulgated, retained 
most of the 1-hour ozone requirements as ``applicable requirements'' 
(defined in 40 CFR 51.900(f)). The requirements that are retained are 
those that applied in an area based on the area's 1-hour ozone 
designation and classification as of the effective date of its 8-hour 
designation (for most areas, June 15, 2004).
    Section 51.905(b) provides that a state remains subject to the 
listed 1-hour standard obligations until the area attains the 8-hour 
NAAQS. Furthermore, Sec.  51.905(b) provides that such obligations 
cannot be removed from a SIP, even if the area is redesignated to 
attainment for the 8-hour NAAQS, but must remain in the SIP as 
applicable requirements or as contingency measures, as appropriate.
    Section 51.905(e), as promulgated in 2004, indicated that certain 
1-hour standard requirements are not part of the list of anti-
backsliding requirements. These include 1-hour NSR, section 185 penalty 
fees, and 1-hour contingency measures for failure to attain or make 
reasonable progress toward attainment of the 1-hour NAAQS.\14\ The 
Court vacated these exemption provisions, and accordingly EPA is 
proposing to delete these exemptions from the rule. Thus, this proposal 
would remove language relating to the vacated provisions of the rule 
that provided exemptions from the requirements of nonattainment NSR and 
CAA section 185 penalty fees under the 1-hour standard in addition to 
the provision for contingency measures. The EPA plans to issue a 
separate proposed rule providing further guidance on how the section 
185 fee provisions and the 1-hour NSR requirements apply as a result of 
the Court's vacatur.\15\
---------------------------------------------------------------------------

    \14\ Note that if the area is nonattainment for the 1997 8-hour 
standard, it is subject to nonattainment NSR, contingency measures 
and (if severe or extreme) the section 185 penalty fee provision for 
that 1997 NAAQS.
    \15\ As noted above in a previous footnote, the Court's June 
2007 clarification confirms that the December 2006 decision was not 
intended to establish a requirement that areas continue to 
demonstrate conformity under the 1-hour ozone standard for anti-
backsliding purposes. Therefore, no revisions are necessary to 40 
CFR 51.905(e)(3) of the Phase 1 implementation rule. Section 40 CFR 
51.905(e)(3) establishes that conformity determinations for the 1-
hour standard are not required beginning 1 year after the effective 
date of the revocation of the 1-hour standard and any state 
conformity provisions in an applicable SIP that require 1-hour ozone 
conformity determinations are no longer federally enforceable. This 
provision does not require revision in light of the Court's decision 
and clarification, because the Court did not require conformity 
determinations for the 1-hour standard, and existing regulations 
already implement the Court's holding that 8-hour ozone 
nonattainment and maintenance areas must use 1-hour ozone budgets to 
determine conformity to the 1997 8-hour standard until such time as 
8-hour ozone budgets are approved or found adequate for the area. 
Therefore, current transportation conformity-related regulations set 
forth in 40 CFR part 93 and 40 CFR 51.905(e)(3), and the general 
conformity regulations in 40 CFR part 93 are consistent with the 
Court's decision and clarification on the Phase 1 8-hour ozone 
implementation rule and do not require revision.
---------------------------------------------------------------------------

    In the following section, in response to the Court vacatur, EPA 
proposes the manner in which the 1-hour NAAQS contingency measure 
requirement applies as an anti-backsliding requirement.

C. Contingency Measures

1. Phase 1 Rule
    The Phase 1 Rule did not address anti-backsliding provisions 
related to sections 172(c)(9) and 182(c)(9) of the CAA, which require 
nonattainment area SIPs to contain contingency measures that would be 
implemented if an areas fails to attain or fails to make RFP toward 
attainment of the 1-hour NAAQS. In the Reconsideration Rule published 
on May 26, 2005 (70 FR 30592), we determined that these 1-hour 
contingency measures would no longer be considered required SIP 
measures once the 1-hour standard was revoked. This meant that after 
the 1-hour standard was revoked, areas that had not submitted 1-hour 
attainment demonstrations or a specific 1-hour RFP SIP would no longer 
be required to submit contingency measures in conjunction with those 
SIPs. Also, the reconsideration rule stated that areas with approved 
section 172 and 182 contingency measures in the adopted SIP could 
submit a revision to remove them from their SIP when the 1-hour 
standard was revoked.
2. Effect of Court Ruling
    The Court concluded that EPA improperly waived the CAA requirements 
for contingency measures that would apply based on the failure of an 
area to meet a 1-hour RFP milestone or 1-hour attainment date. The 
Court vacated the provision of the Phase 1 Rule that waived this 
requirement for areas once the 1-hour standard was revoked. 
Consequently, areas remain subject to the obligation to have 
contingency measures for failure to attain the 1-hour NAAQS or make RFP 
toward attainment of the 1-hour NAAQS and cannot remove section 172 or 
182 contingency measures from their SIPs based on revocation of the 1-
hour standard.
3. Proposed Rule
    The EPA is proposing that states be required to retain contingency 
measures in their SIPs that would apply based on a failure to meet a 1-
hour RFP milestone or upon a failure to attain the 1-hour standard by 
the area's attainment date. Consistent with the Court's vacatur of 
Sec.  51.905(e)(2)(iii), which waived this requirement once the 1-hour 
standard was revoked, EPA proposes to remove this provision from the 
regulations. Furthermore, consistent with EPA's proposal to retain 
these 1-hour contingency measure requirements as anti-backsliding 
measures, we also propose to list contingency measures under sections 
172(c)(9) and 182(c)(9) of the CAA as applicable requirements under 
Sec.  51.900(f).
    In situations where an area attains the 1-hour NAAQS by its 
applicable attainment date, the area is not subject to the requirement 
to implement contingency measures for failure to attain the standard by 
its attainment date. As a result, any area that meets or has met its 
attainment deadline, even if the area subsequently lapses into 
nonattainment, would not be required to implement the contingency 
measures for failure to attain the standard by its attainment date for 
purposes of anti-backsliding.
    In situations where a 1-hour ozone nonattainment area is in 
attainment based on current air quality (e.g., after the area's 
attainment date), EPA can

[[Page 2942]]

propose to make a finding of attainment.\16\ This finding would be 
pursuant to the interpretation set forth in the May 10, 1995 memorandum 
from John S. Seitz, Director, Office of Air Quality Planning and 
Standards, entitled ``Reasonable Further Progress, Attainment 
Demonstration, and Related Requirements for Ozone Nonattainment Areas 
Meeting the Ozone Ambient Air Quality Standard'' (Clean Data Policy). 
Under this policy, if EPA determines through rulemaking that the area 
is meeting the 1-hour ozone standard, the requirements for the state to 
submit an attainment demonstration and related components such as 
reasonably available control measures (RACM), RFP demonstration, 
contingency measures for failure to attain or make reasonable further 
progress and the section 185 fees program are suspended as long as the 
area continues to attain the 1-hour ozone NAAQS. If the area 
subsequently violates the ozone NAAQS, EPA would initiate notice-and-
comment rulemaking to withdraw the determination of attainment, which 
would result in reinstatement of the requirement for the state to 
submit such plans.
---------------------------------------------------------------------------

    \16\ This applies even if the area did not attain by its 
attainment date; however, the CAA requires EPA in these cases to 
make a finding of failure to attain by the attainment date and 
either reclassify the area or apply other requirements (such as 
section 185) as specified for the area's classification.
---------------------------------------------------------------------------

    The Tenth, Seventh and Ninth Circuits have upheld EPA rulemakings 
applying the Clean Data Policy. See Sierra Club v. EPA, 99 F. 3d 1551 
(10th Cir. 1996); Sierra Club v. EPA. 375 F.3d 537 (7th Cir. 2004) and 
Our Children's Earth Foundation v. EPA, No. 04-73032 (9th Cir. June 28, 
2005) memorandum opinion.\17\ See also the discussion and rulemakings 
cited in EPA's Phase 2, 8-Hour Ozone Implementation Rulemaking, 70 FR 
71644-71646 (November 29, 2005), which codified the policy for the 8-
hour NAAQS.
---------------------------------------------------------------------------

    \17\ The Clean Data Policy, as it is embodied in 40 CFR. 51.918, 
is being challenged in the context of the 8-hour ozone standard in 
the Phase 2 Rule ozone litigation pending in the DC Circuit, NRDC v. 
EPA, No. 06-1045 (DC Cir.).
---------------------------------------------------------------------------

    Thus if EPA makes a determination of attainment under the Clean 
Data Policy, EPA would find that the requirement to submit section 172 
and 182 contingency measures under the 1-hour anti-backsliding 
provisions (40 CFR 51.905) would be suspended for so long as the area 
continues to attain the 1-hour standard.
    Under 40 CFR 51.905(b), states remain subject to the obligations 
under Sec.  51.905(a)(1)(i) and (a)(2) until the area attains the 8-
hour NAAQS for purposes of anti-backsliding. After the area attains the 
8-hour NAAQS, states may request that these obligations be shifted to 
contingency measures, consistent with sections 110(l) and 193 of the 
CAA; however, the state cannot remove the obligations from the SIP.

D. Deletion of Obsolete 1-Hour Ozone Standard Provision

    For the reasons stated above in the background section concerning 
the obsolete nature of 40 CFR 50.9(c), we are proposing to delete that 
paragraph. This will have no effect on the status of the 1-hour ozone 
standard,\18\ or on the anti-backsliding provisions which set forth how 
areas must meet 1-hour requirements that applied to the area at the 
time the area was designated for the 8-hour standard.
---------------------------------------------------------------------------

    \18\ The 1-hour standard was revoked for most areas on June 15, 
2005, the date one-year after the effective date of designation. For 
the 13 EAC areas designated attainment with an effective date of 
April 15, 2008, the 1-hour standard will be revoked April 15, 2009, 
and for the Denver EAC area, which was designated nonattainment 
effective November 20, 2007, the 1-hour standard will be revoked 
November 20, 2008.
---------------------------------------------------------------------------

IV. Statutory and Executive Order Reviews

    A. Executive Order 12866: Regulatory Planning and Review
    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is a significant regulatory action because it raises novel legal 
or policy issues arising out of legal mandates. Accordingly, EPA 
submitted this action to the Office of Management and Budget (OMB) for 
review under EO 12866 and any changes made in response to OMB 
recommendations have been documented in the docket for this action.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
This action sets forth EPA's proposed rule for addressing portions of 
the partial vacatur of EPA's Phase 1 rule for implementation of the 
1997 8-hour ozone NAAQS. However, the Office of Management and Budget 
(OMB) has previously approved the information collection requirements 
contained in the existing Phase 1 Rule (April 30, 2004; 69 FR 23951) 
and the Phase 2 Rule (November 29, 2005; 70 FR 71612) regulations and 
has been assigned OMB Control Number 2060-0594. The OMB control numbers 
for EPA's regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an Agency 
to prepare a regulatory flexibility analysis of any regulation subject 
to notice and comment rulemaking requirements under the Administrative 
Procedures Act or any other statute unless the Agency certifies the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of these proposed regulations 
revisions on small entities, small entity is defined as: (1) A small 
business that is a small industrial entity as defined in the U.S. Small 
Business Administration (SBA) size standards. (See 13 CFR 121.); (2) A 
governmental jurisdiction that is a government of a city, county, town, 
school district or special district with a population of less than 
50,000; and (3) A small organization that is any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.
    After considering the economic impact of these proposed revisions 
to the regulations on small entities, I certify that this action will 
not have a significant economic impact on a substantial number of small 
entities. This proposal will not impose any requirements on small 
entities.
    We continue to be interested in the potential impacts of the 
proposed rule on small entities and welcome comments on issues related 
to such impacts.

D. Unfunded Mandates Reform Act

    This action contains no Federal mandate under the provisions of 
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 
1531-1538 for State, local, or tribal governments or the private 
sector. The action imposes no enforceable duty on any State, local or 
tribal governments or the private sector. Therefore, this action is not 
subject to the requirements of section 202 and 205 of the UMRA.
    This action is also not subject to the requirements of section 203 
of UMRA because it contains no regulatory requirements that might 
significantly or uniquely affect small governments. The EPA has 
determined that these proposed regulation revisions contain no 
regulatory requirements that may significantly or uniquely affect small 
governments, including tribal governments because these regulations 
affect Federal agencies only.

E. Executive Order 13132--Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by state

[[Page 2943]]

and local officials in the development of regulatory policies that have 
Federalism implications.'' Policies that have ``Federalism 
implications'' are defined in the Executive Order to include 
regulations that 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.''
    This action does not have Federalism implications. It will 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. This proposed rule, if made final, 
would restore provisions that existed under the 1-hour ozone standard 
and that would have continued under the 1-hour standard had not EPA 
issued a revised ozone standard. Those provisions were revoked when EPA 
revoked the 1-hour standard itself. Although a court upheld EPA's right 
to revoke the 1-hour standard, the court ruled that EPA erroneously 
revoked several 1-hour NAAQS provisions and vacated those portion of 
EPA's rule. Thus, the court's own ruling restored the former 1-hour 
NAAQS provisions. This proposed rule merely proposes a corrective 
regulatory mechanism for restoring the 1-hour contingency measure 
provision that the court had already restored. Thus, Executive Order 
13132 does not apply to these proposed regulation revisions.
    In the spirit of Executive Order 13121 and consistent with EPA 
policy to promote communications between EPA and state and local 
governments, EPA is soliciting comments on this proposal from state and 
local officials.

F. Executive Order 13175--Consultation and Coordination With Indian 
Tribal Governments

    This action does not have Tribal implications as specified in 
Executive Order 13175. They do not have a substantial direct effect on 
one or more Indian Tribes, since no Tribe has to develop a SIP under 
these proposed regulatory revisions. Furthermore, these proposed 
regulation revisions do not affect the relationship or distribution of 
power and responsibilities between the Federal government and Indian 
Tribes. The CAA and the Tribal Air Rule establish the relationship of 
the Federal government and Tribes in developing plans to attain the 
NAAQS, and these revisions to the regulations do nothing to modify that 
relationship. Thus, Executive Order 13175 does not apply.
    EPA specifically solicits additional comment on the proposed 
revisions to the regulations from Tribal officials.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    EPA interprets EO 13045 (62 FR 19885, April 23, 1997) as applying 
only to those regulatory actions that concern health or safety risks, 
such that the analysis required under section 5-501 of the EO has the 
potential to influence the regulation. This action is not subject to EO 
13045 because these proposed rule revisions address whether a SIP will 
adequately attain and maintain the NAAQS and meet the obligations of 
the CAA. The NAAQS are promulgated to protect the health and welfare of 
sensitive population, including children. However, EPA solicits 
comments on whether the proposed action would result in an adverse 
environmental effect that would have a disproportionate effect on 
children.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 (66 FR 28355 
(May 22, 2001)), because it is not a significant regulatory action 
under Executive Order 12866.

I. National Technology Transfer Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note) 
directs EPA to use voluntary consensus standards in its regulatory 
activities unless to do so would be inconsistent with applicable law or 
otherwise impractical. Voluntary consensus standards are technical 
standards (e.g., materials specifications, test methods, sampling 
procedures, and business practices) that are developed or adopted by 
voluntary consensus standards bodies. NTTAA directs EPA to provide 
Congress, through OMB, explanations when the Agency decides not to use 
available and applicable voluntary consensus standards.
    This proposed rulemaking does not involve technical standards. 
Therefore, EPA is not considering the use of any voluntary consensus 
standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    Executive Order (EO) 12898 (59 FR 7629 (Feb. 16, 1994)) establishes 
Federal executive policy on environmental justice. Its main provision 
directs Federal agencies, to the greatest extent practicable and 
permitted by law, to make environmental justice part of their mission 
by identifying and addressing, as appropriate, disproportionately high 
and adverse human health or environmental effects of their programs, 
policies, and activities on minority populations and low-income 
populations in the United States.
    EPA has determined that this proposed rule will not have 
disproportionately high and adverse human health or environmental 
effects on minority or low-income populations because it does not 
affect the level of protection provided to human health or the 
environment. The proposed revisions to the regulations would, if 
promulgated revise procedures for states to follow in developing SIPs 
to attain the NAAQS, which are designed to protect all segments of the 
general populations. As such, they do not adversely affect the health 
or safety of minority or low income populations and are designed to 
protect and enhance the health and safety of these and other 
populations.

K. Determination Under Section 307(d)

    Pursuant to sections 307(d)(1)(E) and 307(d)(1)(V) of the CAA, the 
Administrator determines that this action is subject to the provisions 
of section 307(d). Section 307(d)(1)(V) provides that the provisions of 
section 307(d) apply to ``such other actions as the Administrator may 
determine.''

Appendix A to Preamble. Application of the Proposed Classification 
Scheme

    This appendix lists the proposed new subpart 2 classifications for 
the areas that were originally covered under subpart 1 in the phase 1 
rule (April 30, 2004) and that are currently still designated 
nonattainment. The geographic boundaries of these nonattainment areas 
are provided in 40 CFR Part 81, Subpart C.

[[Page 2944]]



----------------------------------------------------------------------------------------------------------------
                                   2001-2003  8-                                   2004-2006  8-   2005-2007  8-
 Current nonattainment areas not    hour ozone          Proposed subpart 2          hour ozone      hour ozone
 classified under phase 1 rule,    design value           classification           design value    design value
   as vacated by the court \a\          ppm                                             ppm             ppm
----------------------------------------------------------------------------------------------------------------
Albany-Schenectady-Troy, NY \e\.           0.087  Marginal......................           0.078           0.079
Allegan Co, MI..................           0.097  Moderate......................           0.088           0.093
Amador and Calaveras Co
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