This report has been reviewed by the Environmental Protection Agency  and  approved  for
publication.  Copies of this report are available through the Library Services
Office (MD-35), U.S. Environmental Protection Agency, Research Triangle Park,
North Carolina 27711; or, for a fee, from the National technical  Information
Service,  5285 Port Royal Road, Springfield, Virginia 22161.
                         Publication Mo. EPA-450/2-88-001
                                                       U.S. Environmental  Protection Agency
                                        -.              Region 5, Library (5PL-16)
                                                       2JQ G, Dcprborn Street, Room
                                                       Chicae-, --I   50604

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                                CONTENTS

                                                                   Page

  I.   INTRODUCTION AND SUMMARY

      A.   Introduction	     1-1
      B.   Air Quality Trends, Monitoring, and Modeling 	     1-1
      C.   Air Pollution Research Programs	     1-3
      D.   Development of National  Ambient Air Quality Standards.     1-7
      E.   Assessment and Control of Toxic Air Pollutants ....     1-8
      F.   Status of Air Quality Management Programs	     1-10
      G.   Control of Stationary Source Emissions 	     1-12
      H.   Stationary Source Compliance 	     1-12
      I.   Control of Mobile Source Emissions 	     1-15
      J.   Stratospheric Ozone Protection 	     1-18
      K.   Radon Assessment and Remediation 	     1-18
      L.   Litigation	     1-19

 II.   AIR QUALITY TRENDS, MONITORING, AND MODELING
.1
      A.   National  Air Quality and Emission Trends 	     II-l
      B.   Ambient Air Monitoring	     11-4
      C.   Air Quality Modeling	     II-6
      D.   Integration of Air Data Systems	     II-8
      E.   Emission Factor Development	     11-9
      F.   References	     11-9

III.   AIR POLLUTION RESEARCH PROGRAMS

      A.   Introduction	    III-l
      B.   General Air Pollution Research Activities	    III-l
      C.   Acid Deposition Research Activities	    111-10
      D.   References	    111-15

 IV.   DEVELOPMENT OF NATIONAL AMBIENT AIR DUALITY STANDARDS

      A.   Description of Activities  	     IV-1
      R.   References	     IV-2

  V.   ASSESSMENT AND CONTROL OF TOXIC AIR POLLUTANTS

      A.   Introduction	      V-l
      B.   Assessment and Regulatory Decisions  	      V-l
      C.   Federal Regulatory Program - Stationary Sources  .  .  .      V-l
      D.   Mobile Sources	      V-4
      E.   Specific Point Sources 	      V-4
      F.   Assessing Urban Risk	      V-4
      G.   Building State and Local Air Toxics Control  Programs  .      V-5
      H.   References	      V-6

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                                                                        Page
  VI.  STATUS  OF AIR QUALITY MANAGEMENT PROGRAMS

       A.   Development of Policy  and Regulations   	     VI-1
       B.   Prevention of Significant Deterioration  and
            Nonattainment New Source Reviewjftctitfities 	     VI-4
       C.   Implementation Overview and Assistance  	     VI-6
       D.   Air Pollution Training	     VI-9
       -£.-   References . . ... . ,.,  .;-. <. . >--..--.„  ,:;.,  .  ..--.  _.-••. .  .. .v  •-•V-I--*)

 VII.  CONTROL OF STATIONARY SOURCE- EMISSIONS  --.        .          - ''-,<

       A.   New Source Performance "Standards  (.NSPSJ   . .  . . .  .  .    VII-1
       B.   BACT/LAER Clearinghouse  > ..•.--.  . •«  .  .: ?.- .„• . .,..••;•   VI1-4
       C.   References . .. .-.,.-.  ^ _.._,••. _,-;.... ,.:  .-,  .,,-.. -.,-->: ,; .-.::•. '.-;.£   Vl-I'-l'
                                                                    i" ^ , "•   "•»•"
VIII.  STATIONARY SOURCE COMPLIANCE

       A.   General   . . . » .-•-.,  ... . .,-. . -.  -. =.;  .  .• .  -. w '. -.•  . • .VILI-1
       B.   Litigatiorv . ,: ••.- . ._,".  -,£ .'
       C.   Compliance and[Enforcement-,
       D.   Compliance by Federal^F^cili.ties-  ,;  .  . ,.  .> .  .:.^-p v  .:  .: -Vill-r7
       E.   List of Violating Facil.iti-es;.-^..  .  .  .  „•< v .  >- . V  .---,.  VI;LI-7-

  IX.  CONTROL OF MOBILE SOURCE  EMISSIONS
                          - >  f  i  -\  .  r . - . j- .. -• ; -  , i  ;  f '-."*'-,•"''""'   •   .~t. ' ?.  n I ' 1 '
       A.   Introduction	: ^JX-,1. ;
       B.   Ozone Control	     IX-?
       L»»   Hi P 1 O X"l CS • "•; • •-'•  •1"»f» * • '•  •  • l^»  •" *^ •' i »M ' # •--  «  "• _•   U\~ ^ ^
       D.   Standard Setting	..',,. ._:.-,:   I.X»4-
       E.   Preproduction Compliance 	     IX-5
       F.   Vehicle Inspection  Program 	     IX-5
       G.   Mobile Source Enforcement  	     IX-6
       H.   Imports	     IX-8
       I.   Litigation	     IX-9
       ,).   References	     IX-10

   X.  STRATOSPHERIC OZONE  PROTECTION

       A.   Description of Activities  	      X-l
       B.   References	      X-3

  XI.  RADON ASSESSMENT AND REMEDIATION 	     XI-1

 XII. LITIGATION

      A.   Introduction	    XII-1
      B.   Landmark Decisions   	    XII-1
      C.   Other Significant Decisions 	    XII-1

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                                      PREFACE-
     The Clean-'Air Act, as -amended,- authori-ze-s -a  -national- program of :ai'r pollution
research, regulation, and enforcement  activities.  This program is directed at
the Federal  level by the U.S.  Environmental  Protection Agency' (EPA). "-However,    '-
primary responsibility for the prevention  and control  of air pollution continues
to rest with State and local governments.   The  BPA^'s ;rol;e "is" tfo conduct research
and development programs, set  national -standards  and  regulations, provide technical
and financial -assistance to- tJie State-s,  a-nd-,  where necess-ary,- supplement'^tate
implementation programs.

     Section 313 of the Clean  Air  Act  requires  the Administrator to report on
measures ta-kerv toward- implementing the purpose  and intent- of the -Act.  This report
covers the period January 1- to December- 3-1,- 1:986,~ and- describes- the issues involved
in the prevention and control-  of air poIT-ution ^and the^ major ^elements of progress
toward that goal that have been-made during that  time.  In addition, this report
also includes two other- EPA. reports to  Congress1'required under the- Clean Air Act,
as amended:

     1.  Section 306 report on Federal  procurement and violating facilities
(Chapter VIILK and    ,.....-    ........    ...•••••••-   •
     2.  Section 202(b)(4) report  on  measures  taken- in re-lation to motor "vehicle
emissions control (Chapter -IX).

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                         I.  INTRODUCTION AND SUMMARY
A.   IHTRODIICTION
     This report, which has been prepared in order to satisfy the
requirements of sections 313, 202(b)(4),  and 306 of the Clean Air Act (Act),
describes the progress that the Environmental  Protection Agency (EPA) has
made in the prevention and control  of air pollution during 1986.   The
following paragraphs summarize the contents of the remaining chapters of
this report, especially insofar as those  chapters illuminate current
understanding of air quality problems, controls, and administrative
apparatus.

B.   AIR QUALITY TRENDS, MONITORING,  AND  MODELING

     Since  it takes approximately 1 year  to assemble, analyze,  and report
air quality and emissions data on a national basis, the latest  air quality
and emissions data available for this report are for the year 1985.

     All of the criteria pollutants showed improvements in air  quality and
emissions between 1976 and 1985.  Between 1984 and 1985, all  of the  pollut-
ants declined with major decreases observed for both carbon monoxide  and
lead.  Specific details on air quality and emissions levels,  for each of
the pollutants to which national ambient  air quality standards  (NAAOS)
apply, are  as follows:

     o  Annual average ambient total  suspended particulate (TSP)  levels
        decreased 24 percent between  1976 and  1985, while TSP emissions
        decreased 24 percent.  Between 1984 and 1985, ambient TSP levels
        declined 4 percent, while TSP emissions declined 3 percent.

     o  Annual average ambient sulfur dioxide  levels decreased  42 percent
        between 1976 and 1985, while  total sulfur oxide emissions decreased
        21  percent.  Between 1984 and 1985, ambient sulfur dioxide levels
        declined 5 percent, while total sulfur oxide emissions  declined
        3 percent.

     o  Ambient carbon monoxide levels decreased 36 percent between  1976
        and 1985, while total carbon  monoxide  emissions decreased 21  percent.
        Between 1984 and 1985, ambient carbon  monoxide levels decreased
        10  percent.  These changes  reflect the continuing reductions  in
        carbon monoxide emissions brought about by the Federal  Motor  Vehicle
        Control Program, the change in the vehicle mix, and the possible
        influence of meteorological conditions in some geographic areas.

     o  Annual average ambient nitrogen dioxide levels decreased  11  percent
        between 1976 and 1985.  Between 1976 and 1985, total  nitrogen oxide
        emissions decreased by 1 percent, but  highway vehicle emissions,
        the source category likely impacting the majority of nitrogen dioxide
        monitoring sites, decreased by 4  percent.   Between 1984 and  1985,
        ambient nitrogen dioxide levels decreased 2 percent,  while total
        nitrogen oxide emissions increased 2 percent.


                                    1-1

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       o  The compos j-te -averag%, of, fthe second h/iglrest daily maximum 1-hour
          ambient ozone values- Jdec neased 19 percent between 1976 and 1985,
          while volatile organic compound (VOC) emissions decreased 11
          percent.  The decrease in ambient- ozone .levels is complicated by
          the change in the ozone calibration, procedure _which took place   ..
          between 1978 and- 19-79-. - In the .post-calibration period (1979-   •?- - - :
          1985), ambient ozone levels decreased :1Q percent, while V-QC •'..  •'  •:.,-: *
          emissions decreased 12 percent*  the ozone trend in the 19#0's   ^:or
          shows that the 1980 and 1983 values were higher than those in
          1981, 1982, 1984 and 1985.  While 1985 levels are similar to
          1984 levels, there was a slight improvement of 2 percent in' the
          national composite average between these 2 years.

       o  Ambient lead levels decreased 79 percent between 1976 and 1985,
          while lead emissions decreased 86 percent.  Between 1984 and 1585,
          ambient lead levels declined 32 percent, while lead emissions
          declined 48 percent.  This is the largest percentage decrease for
          any 2 consecutive years.      .

     The EPA promulgated regulations in 1979 which required States to establish
and operate air monitoring networks and to report the -data to EPA.  Two types
of permanent stations are provided for in the regulations:  State 'and Local
Air Monitoring Stations (SLAMS) and National Air Monitoring Stations (NAMS).
The SLAMS, which were designed to meet the overall monitoring requirements of
State implementation plan (SIP) activities, were required to meet all' provisions
of the regulations by January 1, 1983.  Through December 1986., 4545 SLAMS  -
monitors were operating in accordance with all  requirements of the regulations. "
The NAMS, which are .a subset of the SLAMS, network, are- designed to" provide a,  "
national monitoring network as required by section '319;of -the Act.  Through
December 1986, 1325 NAMS monitors were operating in accordance with* all.
requirements of the regulations.                      -.         .    -  -..

     To accompany the proposed revisions to the NAAf)S for participate matter,
EPA on March 20, 1984, also proposed amendments to 40 CFR 58 (Air Quality
Surveillance and Reporting Regulations).  The proposed revisions to Part 58
would establish ambient air quality monitoring requirements for particles
nominally 10 micrometers and smaller in diameter (PMirj) as measured by a new
reference method proposed as Appendix J of 40 CFR Part 50 or an equivalent
method.  Specialized training was provided by EPA in 1986 to State and local
agency personnel on the operation and maintenance of the PM^f) samplers.
<\lso, in addition to using funds supplied by EPA, the States -and local  agencies"
have separately purchased PM]_n, samplers bringing the total number of operating
     samplers to 877 as of December 31, 1986.
     Ambient hydrocarbon data were collected at 23 sites in order to measure
nonmethane organic compounds in various cities.  Results from this activity
will be used in estimating the amount of source control needed to attain the
ozone air quality standard.                                  -     - ,<

     In the air quality modeling area, EPA evaluated eight short-term,
long-range transport models during 1986.  This effort resulted from a coopera-
tive agreement between EPA and the American Meteorological Society.  In
                                     1-2

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addition, EPA developed a technique for statistically intercomparing the
performance of air quality models.  This techhi"queF'-wfl1v'be refined in 1987
and tested for implementation in 'particular re*guTatbTy 'situations.

     In the area of modeling support to air toxics- control activities ,
EPA developed and implemented a simple screening model for relief valve
discharges.  Efforts were initiated to develop a more refined model  for
these releases.  A major effort during 1986 was the development and
adaptation of models for air emissions from facilities handling hazardous
wastes.

     The oxidant modeling for the New York Metropolitan Area Project
was completed in 1986 via cooperative agreements with the States of Mew
York and Connecticut.  The program was designed to perform photochemical
modeling of the New York metropolitan area, including parts of New Jersey
and Connecticut.                             '

     The EPA continued its modeling clearinghouse activities to ensure
that the use of nonguideline techniques does not lead to inconsistent
regulatory decisions.  In addition, EPA improved the software for the
Chemical Mass Balance receptor model to make the results more informative
and the diagnostics easier to use.  The EPA also continued to provide
technical support and review of ozone model applications using the
Empirical Kinetics Modeling Approach (EKMA) in 1986.'

     The Aerometric Information Reporting System (AIRS) i's a new integrated
data system being developed by EPA to replace entirely the existing data
systems now used by the 'EPA for storing and retrieving ambient air quality
data, stationary source and-emissions data, and source compliance data.
The AIRS will be composed of an air quality component and1 a facility data
component.  In 1986, major efforts continued on the air1 quality component
of AIRS with this segment expected to be fully available for use by EPA
Headquarters and Regional Offices by mid-1987 with pilot installations in
some States begun by- the end of 1987.

     In 1986, EPA completed major revisions to emission factors for use
by States and others to estimate source emissions and to compile emission
inventories.  Nearly all  the revisions involve the addition of size-
specific emission factors with emphasis on
     The EPA distributed guidance in 1986 on procedures for estimating
emissions for selected, potentially toxic pollutants.   Final reports were
distributed for ethyl ene oxide and chlorobenzenes.   Reports are now in
preparation for polycyclic organics, polychlorinated biphenyls and benzene.

C.   AI-R POLLUTION RESEARCH PROGRAMS

     In 1986, EPA's research emphasis shifted further toward indoor air
pollution research, radon mitigation, and studies on problems associated
with complex mixtures of air pollutants.  Within the area of criteria
pollutant research, priorities included development of VOC control tech-
nology, transport of ozone over distances, the health effects of alternative
fuels and fuel  additives, -and the health effects of pollutants for which
national ambient air quality standards exist.  In the mobile sources area,


                                   1-3

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the focus remained on characterizing evaporative and exhaust. emissions
from vehicles using alternative fuels such as methanol.

     Several advances were made in the area of ambient monitoring in
support of the new requi rements for measuring PM-|Q.   Studies  of two
instruments were conducted to develop an appropriate Federal  Reference
Method.  In addition, a field monitoring project was initiated in the
summer of 1986 to obtain  data needed by EPA before considering revisions
to the ozone air quality  standards.

     A number of exposure studies were undertaken in 1986.   Studies were
completed which describe  the amount of ozone removed in  the nasal
passages and in the lungs of individuals while they  breathe ozone.   Other
studies examined airway resistance occurring in a group  of  moderately
exercising asthmatics exposed to nitrogen dioxide.  Two  clinical  studies of
sulfur dioxide were completed in 1986.  The first study  described the
concentration-response range of mildly asthmatic volunteers exposed to
various sulfur dioxide concentrations.  Another clinical  study investigated
the effects of a mixture  of sulfur dioxide and sulfuric  .acid  mist on mild
asthmatics.

     A study of lead neurotoxicity in children aged  3 to 7  years  was
conducted in 1986 which examined the relationship between blood lead level
and Stanford-Binet IQ, a  measure of cognitive function.   An analysis of
audiometric data was initiated to investigate the relationship of blood
lead levels and hearing thresholds.  A study of the  neurophysiological
effects of lead exposure  in monkeys was also completed.
     Two promising procedures for sampling source emissions of PM^Q were
field tested and a series of source category reports  were completed on
major sources of PM^o emissions in order to assist States in developing
SIP's.  Two manuals were completed and distributed to Regional and State
personnel  involved in inspection and permitting of particulate control
systems for electric utility coal-fired boilers.

     A major achievement in flue gas desulfurization  research was  the
development of improved calcium sorbents for low-cost retrofit sulfur
dioxide control.  Up to 95 percent sulfur dioxide removal  has been achieved
in a pilot plant using duct injection of dry sorbent  in a humidified flue
gas followed by a fabric filter.

     The EPA undertook a number of activities related to air quality
modeling in 1986.  An improved mechanism was developed to quantify the
atmospheric formation of ozone from its precursors.   The first generation
regional oxidant model was evaluated and improvements are being made.
The Regional Lagrangian Model of Air Pollution (RELMAP) was completed in
1986 in support of the proposed PMjQ air quality standard.   A user's guide
for the second pollution episodic model (PEM-2) was completed.  AROSOL,
an urban scale aerosol model, was modified to include two modules  for
conversion of sulfate, thereby allowing AROSOL to be  operated either as a
lumped sulfate model or as a model which predicts the particle size and
composition distributions.  Version Six of the User's Network for  Applied
Modeling of Air Pollution (UNAMAP) program was disseminated to the user
community.


                                   1-4

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     In addition, version one of the Meteorological Processor for niffusion
Analysis was completed, resulting, in a format easily used by air- quality
dispersion models.  A complex terrain workshop, vyas held to review the
preliminary version of the sulfur dioxide-Complex Terrain Dispersion Model...,

     The EPA continued a number of .research-efforts to.support regulatory- -^
activities related to hazardous air pollutants.   Final comprehensive health -:
assessment documents for asbestos and nickel were completed and an external
review draft on beryllium was released,to the public-for comment.  Monitoring
for VOC's through the Toxic Air Monitoring System (JAMS) continued throughout .
the year at Houston, Boston, and Chicago.  Validated TAMS data from these,,- •-•
sites were obtained and incorporated into EPA's.air toxics data base.  An
earlier study which used the Total  Exposure Assessment Methodology (TEAM)
to measure personal exposures and breath-.concentrations .of VOC's generated -,./
data from 600 individuals.  The data wer-e. partially analyzed in 1986.,  -An.   .  .
analysis of the risks of organic chemicals in,,the .-home was presented at
the annual meeting of the Air Pol lution .Contno,] ^.Association in Minneapolis.•
The Total Human Exposure Research Council was formed to enhance communications
on research projects concerning human exposures  to chemicals, including
hazardous air pollutants.  In addition, an Interdivisional Air Toxics
Study (IATS) was initiated to study the health effects of inhaled hazardous
air pollutants (HAP's).  Compounds under study were- selected based on
high production and potential human exposure.,.       .•--•-.

     Important advances were made,in developing' and. validating test methods   .
to determine the neurotoxic potential of HAP's.   A study to evaluate the
visual function effects of sulfolane, an industrial solvent, was completed.
More cost effective and better predictive .indicators- of; reproductive
dysfunction were studied to evaluate potential HAP',s.   Two,wood stove
emission control  technologies were studied and final  results-will be ,
published following the 1986-87 heating season.   Progress was made in
research on atmospheric formation and fate of toxic air pollutants.

     A number of research activities in 1986 were directed toward EPA's
mobile source regulatory program.  As recommended by EPA's Science Advisory
Roard, validation of the Simulation of Human Air Pollutant Exposure
(SHAPE) "and the NAAQ.S, Exposure Model (NEM) .began, using field data collected
during a carbon monoxide exposure study.   Analyses were completed which
related carbon monoxide exposure profiles with estimated carboxyhemoglobin
(COHb) levels a.nd measurements of carbon, monoxide in the breath of subjects.
Research was conducted to characterize organic emissions from motor
vehicles operated at reduced ambient temperatures.

     The EPA initiated several  changes in its indoor air research program
in 1986 including the establishment of a new indoor air policy staff to
assist in guiding indoor air research and decision-making.  Work was
begun on an extensive bibliography of the world  literature on indoor air
and total human exposure, emphasizing concentrations measured in indoor
microenvironments.  The exposure portion  of a clinical study of children
                                   1-5

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with parents who smoke was completed.  A pilot field study was completed
on the mutagenicity of emissions from several  in-home combustion sources,
including convective and radiant kerosene heaters, gas stoves, fireplaces,
and cigarettes.  Preliminary studies of organic compound emissions from
kerosene space heaters were completed.  The results suggested that emissions-
of carcinogens may be significant for certain  heater types under specific  •
operating conditions.  Laboratory studies of organic vapor emission rates
from selected indoor building materials and consumer products were conducted
and reported in 1986.

     Field testing to develop and demonstrate low-cost techniques for
reducing radon concentrations in homes was continued in 1986.  The tech-
niques selected for testing in each home vary  according to type of house,
foundation, local  geology and meteorology, and other factors.  A technical
manual for installers of radon mitigation techniques was issued in August
1986.  A Radon Mitigation Test Matrix was developed and reviewed by EPA's
Science Advisory Board.

     Initiation of studies on control technology and strategies for controlling
stratospheric ozone-depleting substances resulted in identification of sources
for which additional studies need to be conducted.  National  and international
workshops were held on control strategies for  stratospheric modification.  In
addition to continued research regarding the potential impact of increased levels
of solar UV-B radiation on U.S. agriculture, silviculture, and marine fisheries,
work is ongoing on a regulatory impact analysis for possible domestic and
international controls on CFC's and other potential  ozone-depleting trace gases.
These analyses will support later EPA regulatory determinations.

     The EPA continued to perform research in  a number of areas related
to acid deposition.  In 1986, acid deposition  research produced scientific
information on the chemical status of a representative sample of lakes in
the eastern United States, and developed a preliminary 1985 manmade
emissions data base.  The program established  a cloud chemistry network
to cover the major high altitude forest system in the eastern part of the
nation.  A dry deposition monitoring network (30 sites) was begun, and
significant progress was made in determining the effects of acidic
deposition on southern conifer and spruce/fir forests.

     The deposition monitoring research program continued to provide the
deposition data on wet precipitation through the National Trends Network
(NTN).  The network consisting of 150 stations operated at full capacity.
Since dry deposition may account for a larger proportion of total deposition
than wet deposition, implementation of a dry deposition network was begun
in 1986 with a five-station dry deposition pilot network.

     The EPA continued to improve the field data bases on atmospheric
transport, transformation, and deposition of acidic substances in order to
develop more scientifically acceptable, yet simplified models, to meet
assessment and policy needs.  In 1986, the preliminary evaluation of the
full Regional Acid Deposition Model (RAOM) using the Oxidation and
Scavenging Characteristics of April Rains (OSCAR) meteorology and wet
chemical deposition data was reported.  In addition, EPA conducted
research into acid deposition effects on fish  and other aquatic organisms
and drinking water quality.

                                    1-6

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     Various adverse changes in forest conditions have been observed in
the United States since the early 1980's.   A joint EPA/U.S. Forest  Service
research program, the Forest Response Program,  was established in  1985 to
investigate the extent of damage to forest ecosystems  which night  be
caused by acid deposition, cause and effect relationships,  and dose
response relationships.

     The EPA's materials effects research  is directed  toward understanding
the quantitative relationships between the various forms  of acidic  deposi-
tion and the resulting damage rates to materials and identifying the
geographical extent of materials at risk.   The  materials  research  program
was reconstructed in 1986.  A major initiative  was the development  of a
research program to determine the effects  of acid deposition on paint/
substrate systems.

     The EPA continues to develop limestone injection  multistage burner
(LIMB) technology that is designed to reduce emissions of both sulfur oxide
and nitrogen oxide, the two major acid deposition precursors.   In  1986,
work continued on the development of high  surface area sorbents and
sorbents treated with "promoters" to improve the sulfur capture ability
of the LIMR technology.  The design phase  of the wall-fired, full-scale
LIMR demonstration was completed.

0.   DEVELOPMENT OF NATIONAL AMBIENT AIR QUALITY STANDARDS

     The 1977 Clean Air Act Amendments require  EPA regularly to review and,
if appropriate, to revise all  of the NAAQS.  Reviews of the NAAOS  for
carbon monoxide and nitrogen dioxide were  completed in 1985; reviews of
the remaining four NAAOS were in progress  in 1986.

     In 1984, EPA proposed changes to the  NAAOS for participate matter.
The proposal was reviewed at a Clean Air Scientific Advisory Committee
(CASAC) meeting in December 1985 and CASAC recommended that because of
new data published since the combined participate matter/sulfur oxide
criteria document was prepared in 1981,  EPA should prepare  addenda  to the
criteria document and the sulfur oxide and the  particulate  matter  staff
papers.  The CASAC reviewed the addenda  in October 1986 and submitted
their final written comments on the particulate matter addenda in  December.
Final  promulgation of the particulate matter standards is planned  for the
spring of 1987.  Activities on the sulfur  oxide NAAOS  review in 1986 focused
on refinements to the exposure analysis  for various 1-hour  standard
alternatives and the preparation and CASAC review of addenda to the
criteria document and the staff paper.  Revised or reaffirmed  sulfur
oxide standards are scheduled to be proposed in 1987.

     In May 1986, CASAC reviewed a third draft  of the  criteria document
revision for lead and a second draft of  the lead staff paper.   In  April
1986,  CASAC reviewed revised drafts of the criteria document for ozone
and the ozone staff paper; CASAC completed their review of  the criteria
document in October 1986.
                                   1-7

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E.   ASSESSMENT AND CONTROL OF TOXIC AIR POLLUTANTS

     In 1985, EPA announced its strategy for the control  of both routine
and accidental releases of toxic air pollutants.  Considerable progress
was made in 1986 to implement this strategy.  In 1986,  EPA continued to
implement an active program to screen and assess potentially toxic air
pollutants for possible regulation under the Act or other environmental
authorities.  A total  of 38 chemicals or emission mixtures were in various
stages of assessment at the end of the year.  In addition, draft reports
were completed for Tier 4 of the National Dioxin Study, a coordinated
effort of various EPA programs to assess the potential  extent of contamination
of the environment with chlorinated dioxin compounds.   Tier 4 focuses on
combustion sources and deals primarily with emissions to  the atmosphere.

     National emission standards for hazardous air pollutants (NESHAP)
were promulgated in 1986 for arsenic emissions from glass manufacturing,
high arsenic feedstock primary copper smelters, low arsenic feedstock
primary copper smelters, and radionuclide emissions from  uranium mill
tailings piles licensed by the Nuclear Regulatory Commission.  Nork was
initiated to develop implementation procedures for facilities subject to
the radionuclide NESHAP.  Work will continue through 1987 and will lead
to full implementation in 1988.  Revisions to the vinyl  chloride NESHAP
were also promulgated.  Work continued in 1986 on a source assessment for
benzene emissions from gasoline marketing and on promulgation of the
NESHAP for coke-by-product plants.  Work also continued in 1986 on revising
the NESHAP for asbestos and for mercury.  The NESHAP development continued
in 1986 for chromium emissions from electroplating and  industrial  cooling
towers and for coke oven emissions sources in the iron  and steel  industry.
Work commenced in 1986 on a NESHAP for ethylene oxide,  13 source categories
in the organic chemicals industry, perchloroethylene emissions from the
dry cleaning industry, emissions from phosphogypsum piles, and a NESHAP
for solvent degreasing equipment.  The sources of cadmium were still
under review at the end of 1986.  Decisions on any cadmium source categories
which warrant regulation will be made in 1987.  In addition, a detailed
risk and control technology assessment for municipal waste combustion was
initiated in 1986.

     Preliminary assessments show that emissions to the air from hazardous
waste treatment, storage, and disposal facilities (TSDF's) may pose significant
health and environmental risks.  Current EPA plans call for development
of TSDF regulations in three phases.  "rhe first group of  standards addresses
sources for which EPA can develop standards relatively  quickly because
similar sources have already been regulated under the Act.  These standards
address air emission vent and fugitive emissions from some of the treatment
devices that will be used to meet the Resource Conservation and Recovery
Act land disposal restrictions.  The second group of standards, which
addresses the bulk of the TSOF sources,, is scheduled for  proposal  in 1988
and final action in 1989.  The third group of regulations will cover
certain subsets of the seven TSDF source categories for which EPA will
likely be unable to develop rules during the second round.
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     In 1986, EPA continued to pursue that portion of its air toxics
strategy that provides State and local  air pollution control  agencies
with funding and technical support to evaluate specific point sources.
Sources that are candidates for this program include those that have been
identified through the Federal toxic air pollutant assessment program but
which do not warrant Federal regulations.  This program was initiated in
1984 with a pilot program involving the chemical  acrylonitrile, a
carcinogen for which the public health  risks are  limited due to the
existence of only a few industrial facilities.  Evaluations involving all
26 acrylonitrile facilities in 14 States have been completed and the
reports accepted by the appropriate State and local agencies.  Control
efforts have been .initiated in several  States based on these evaluations.
State evaluations for 9 additional source types were funded in 1986 and
evaluations at the State/local level were begun.

     In 1986, EPA initiated planning and activities to encourage States
to undertake new efforts toward assessing the scope and seriousness of
current exposures to the mixtures of air toxic compounds which are believed
commonplace in large metropolitan areas.  A program was developed which
provides funding and technical assistance to States to encourage them to
undertake such assessment efforts in at least 30  targeted areas with
populations over one million people.  Also closely related, activity on
several Integrated Environmental Management Projects (IEMP) was continued.
These projects, though multimedia in nature, focus a major portion of
study on the air toxics aspects of the  urban environment.  In 1986, efforts
were completed for the Philadelphia, Pennsylvania, and Santa Clara,
California areas as a result of work in previous  years.  Initial studies
were concluded in the Kanawha Valley, West Virginia, and Baltimore,
Maryland.  Additional major monitoring  efforts will be conducted in -
Baltimore in 1987.  A new IEMP study was also initiated in Denver, Colorado.
The EPA also distributed guidance in 1986 on procedures for estimating
emissions for selected potentially toxic pollutants.  Final reports were
distributed for ethylene oxide and chlorobenzenes.  Reports are now in
preparation for polycyclic organics, polychlorinated biphenyls, and benzene.

     The EPA has established a goal  of  having quality air toxics control
programs in every State and major local agency.  During 1986, considerable
progress was made toward meeting this goal.  The  progress was in part due
to the establishment of a new program to enhance  State and local program
development.  This program uses available grant funds to promote multiyear
planning on the part of State and local agencies  for building their
air toxics capabilities and programs.  In 1986, EPA received 63 multiyear
development plans from 48 States and 15 local agencies.  The major emphasis
of the current State and local activities within  these plans is now on
development of toxics emissions inventories and modifying existing new source
review permit systems to incorporate consideration of air toxic concerns.
In order to help the current and future implementation of scheduled multi-
year development plan activities, EPA expanded its program of technical
support in 1986.  The EPA developed  several technical documents on topics
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relevant to air toxics, began trial  operation of a control  technology
center, and designed national workshops to assist State and local  agencies
in the basic aspects of program development and implementation.   In addition,
the National Air Toxics Information  Clearinghouse was  significantly expanded
through the implementation of a computerized data base.

F.   STATUS OF AIR QUALITY MANAGEMENT PROGRAMS

     As mentioned earlier, EPA proposed revised NAAQS  for particulate
matter in 1984 that would apply to a size range of particles nominally 10
micrometers and smaller in diameter  (P^io)» an^ an annual total  suspended
particulate (TSP) secondary standard.  In 1985, EPA published a  Federal
Register notice which solicited public comments on various  matters related
to implementing the PM-^ NAAOS.  Seventy-two comment letters were  received
mostly from industry.  Public comments were summarized in 1986 and issues
identified for resolution.  At the end of 1986, EPA was in  the process
of resolving the issues raised and developing regulations to implement the
revised standards.

     The EPA continued to analyze the issue of widespread nonattainment
of the ozone air quality standard in 1986.  A number of regulatory areas
were examined which could result in  emission reductions due to improve-
ments in the current control  program and from various  new control
initiatives.  Building upon analyses conducted in 1986, EPA plans  to
continue to involve Congressional, State and local  government, and industry
and environmental representatives in developing a national  ozone control
strategy.  The EPA plans to formally present this policy in 1987.

     In 1986, EPA completed a number of actions related to  visibility
protection.  These actions were either promulgations of Federal  implemen-
tation plans or else approval of State-submitted plans dealing with
visibility monitoring and new source review.

     In July 1985, EPA adopted revisions to regulations originally
promulgated in 1982 which prohibit reliance by stationary sources  on
stack heights in excess of "good engineering practice" or on any other
dispersion techniques in lieu of emission controls.  In accordance with
the Act, States were given 9 months  to review their rules and source
emission limitations and to revise their SIP's and resubmit them to EPA
as necessary.  At the end of 1986, EPA was in the process of reviewing
SIP revisions submitted by the States in response to these  regulations.

     Also in 1986, EPA proposed a new, modified visible emission test
method for evaluating compliance with certain types of SIP  opacity standards
where the State has not specified a  test method in the SIP.  At  the end
of 1986, EPA was reviewing the comments submitted in response to the proposal

     The EPA made significant progress in 1986 in carrying  out its
responsibilities under the Act regarding the preconstruction review of
new and modified stationary sources.  In 1986, EPA continued to  emphasize
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the importance of high quality transfers to the States of the prevention
of significant deterioration (PSD) and new source review programs.   As of
the end of the year, 44 State and local  agencies had either full  delegation
of the PSD program or a PSD SIP, and 8 more had partial  resoonsibility
for the PSD program.

     An important related matter of controversy has been the definition
of "source" for the purposes of nonattainment new source review since the
Act is not clear in this area.  In 1986, EPA worked on the development of
a policy which will aid the Regions in processing proposed SIP's  for
which source definition is a problem.

     In 1984, EPA proposed to include  surface coal  mining fugitive
emissions when calculating whether a source is major for purposes of
new source review.  A regulatory impact  analysis was prepared on  that
proposal and was made available for public comment  in early 1986.
Resolution of this issue is expected in  1987.

     The EPA published its final Emissions Trading  Policy Statement in
December 1986.  The policy sets forth  detailed criteria  under which
companies may substitute or "trade" extra emission  reductions from  sources
less costly to control for emissions from sources that have higher  control
costs.  The final policy authorizes the  use of environmentally sound
bubbles (emission trades between existing sources)  in all  areas of  the
country, as an important component of  the nation's  effort to achieve and
maintain air quality standards.

     The National Air Audit System (NAAS) was first developed in  1983.
The NAAS started operating on a 2-year cycle in 1986 and all  State
agencies will be audited in the 1986-1987 cycle.  A national  report covering
the results of these audits will be prepared at the end  of 1987.

     At the end of 1986, EPA and the States had completed rulemaking for
29 of the 36 State plans which implement the NAAOS  for lead.

     In 1985, EPA initiated a number of  studies related  to acid deposition
implementation issues.  These studies, called State Acid Rain (STAR)
projects, were to be conducted by individual States although  the  results
could have broad applicability to other  States that might  be  involved in a
possible acid rain control program.  A total of 37  projects were  eventually
funded.  In 1986, work on the STAR projects continued, and EPA began review-
ing and synthesizing available results from the projects.   The EPA  has also
been able to use the preliminary findings and experiences  of  the  STAR
projects in evaluating proposed acid rain control legislation, particularly
in regard to implementation schedules  and requirements.   A second national
STAR workshop, held in October 1986, provided States the opportunity to
present their initial  findings and discuss implementation  requirements of
hypothetical acid rain legislation.
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     Ouring 1986, EPA continued to support the VOC Reasonably Available
Control Technology (RACT) Clearinghouse.   The purpose of this clearinghouse is
to provide a means by which State and local  air pollution control  agencies
can exchange technical  information, minimize duplication of effort and
resources, and provide guidance regarding VOC controls for various industrial
operations and other sources.  The VOC RACT  Clearinghouse output  takes
several forms, including a VOC RACT Clearinghouse Newsletter.  Ouring 1986,
three newsletters were issued.

     In 1986, EPA continued to provide technical  training in the  abatement
and control of air pollution.  This training included short course presenta-
tions, self-study courses, technical  assistance to others who conduct
training, and the support of traineeships and fellowships for graduate air
pollution training.  Ouring 1986, EPA conducted 30 short courses  in 20
different subject areas for a total of 852 students.   Technical assistance
was provided to States and EPA Regional  Offices for conducting 21 additional
courses reaching a total of 656 students.  Also in 1986, 1128 students
applied for the 30 self-study courses presently available.  As an additional
means of developing qualified personnel,  EPA supported 17 graduate traineeships/
fellowships to employees of State and local  air pollution control  agencies.

R.   CONTROL OF STATIONARY SOURCE EMISSIONS

     In 1986, work progressed on the development  of emissions standards
for those major source categories not yet regulated under new source
performance standards (NSPS) and on the  revision  of various NSPS  as
appropriate.  During 1986, NSPS were promulgated  for emissions of particulate
matter and nitrogen oxides from the industrial  boiler source category.
The existing NSPS for basic oxygen process furnaces,  asphalt concrete plants,
and kraft pulp mills were revised.  Standards were proposed for calciners
and dryers, plastic business machines, magnetic tape, and sulfur  dioxide
emissions from industrial boilers.  A revision to the existing NSPS was
proposed for sewage sludge incineration.

     The EPA established the best avai'able  control technology/lowest
achievable emission rate (BACT/LAER)  Clearinghouse several years  ago in
order to assist State and local air pollution control  agencies by promoting
the sharing of air pollution control  technology information.  The primary
output of the Clearinghouse is an annual  report of information about BACT/
LAER determinations made by the various  control agencies.  The report
published in 1986 contains over 1120 RACT/LAER determinations.

H.   STATIONARY SOURCE COMPLIANCE

     The EPA currently monitors the compliance status of about 32,000
stationary sources of air pollution.   Approximately 28,000 of these sources
are Class A SIP sources, about 3,000 are NSPS sources, and about  1,000
are NESHAP sources.  At the end of 1986,  as  has been  the case since the
late 1970's, the compliance rates were high  and generally stable.   Roth
Class A SIP sources and NSPS sources had a compliance rate of over 91
percent and NESHAP sources were over 36  percent.   In 1986, EPA conducted
2,353 overview inspections of Class A SIP, NSPS,  and NESHAP sources.

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     The Act provides a variety of administrative enforcement mechanisms
for dealing with both special  situations and relatively easily corrected
violations.  During 1986, EPA issued immediate compliance orders under
section 113(a) of the Act to 117 sources and issued or approved delayed
compliance orders under section 113(d)  for 11 sources.  In addition,
there were 71 Federal civil  actions filed in 198fi against stationary  sources
for violations of the Act.  As of January 1987, a total of 122 such actions
were pending with the U.S. District Courts.

     A major focus of the stationary source compliance program is the
effort to return to compliance those sources considered to be "significant
violators."  For fiscal year 1986, EPA  identified 647 significant
violators pending at the beginning of the fiscal  year.  By the end of the
fiscal year, 511 had been addressed.  In addition, 489 significant violators
were newly-identified during 1986 and,  of these,  144 were addressed by the
end of the fiscal year.

     In 1984, EPA first issued guidance onsthe "timely and appropriate"
EPA/State enforcement response for significant air violators.  In 1986,
this guidance was reissued to include NESHAP violators.  In 1986, for
the second consecutive year, EPA evaluated the implementation of the  "timely
and appropriate" guidance.  The evaluation showed that all Regions have
systems in place to monitor the timeliness of enforcement actions after
findings of noncompliance.  The "timely and  appropriate" guidance also
requires assessment of penalties under  certain circumstances.  Evaluation
revealed that in 1986 penalties were generally collected by the States and
EPA where the guidance requires.

     In 1986, EPA continued its major initiative  to ensure that demolition
and renovation sites are in compliance  with  asbestos NESHAP regulations.
During 1986, EPA and the States received 26,993 asbestos demolition or
renovation notifications, conducted 15,060 asbestos inspections, and  found
2,179 violations.  The EPA issued 454 notices of  violation or deficiency,
issued 59 administrative actions, and initiated 33 civil actions for
violations of asbestos demolition and renovation  regulations.  Delegated
States also conducted a high level of asbestos enforcement actions during
1986.  The States issued 535 notices of violation or deficiency, issued
124 administrative orders, and initiated 26  civil  actions.  In January
1986, the Department of Justice, on behalf of EPA, filed 11 cases
nationwide for violations of the asbestos NESHAP  in the course of demolitions
and renovations.  The initiative was designed to  heighten public awareness
of the dangers of asbestos exposure due to demolitions and renovations
and EPA's regulations applicable to these activities.

     On July 11, 1984, EPA issued a vinyl  chloride NESHAP enforcement
strategy which facilitates the development of civil complaints against
violators of vinyl  chloride regulations.  The EPA filed one new civil
action during 1986 for violations of the vinyl chloride standards.  At
the end of 1986, 14 enforcement actions for  violation of these standards
were in litigation.
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     The EPA has been conducting pilot programs  to improve implementation
of its continuous compliance strategy.  One of these  programs  was  a 2-year
pilot in Virginia on methods to improve the effectiveness  and  efficiency
of the inspection process.   Another pilot,  conducted  primarily in  Missouri,
evaluated the effectiveness of a continuous emission  monitoring system (CEMS)
program as a component of a multifaceted compliance monitoring effort.
Finally, in 1986, EPA continued pilot programs  in  Michigan and Colorado to
develop more sophisticated  methods  for targeting compliance monitoring
inspections.
     A number of significant enforcement actions  were concluded in
In one case, the Supreme Court construed the Act  as  conferring  broad
inspection powers on EPA.  All nine Justices agreed  that  EPA could hire a
commercial photographer to fly over a plant  owned by now  Chemical  Company
and take pictures.  They ruled that regulatory authority  generally carries
with it the ability to employ all  useful  modes of investigation.   In
another action, the court held that the building  owner is liable  for
violations of regulations controlling the release of asbestos from demolition
activities, along with the contractor who actually did the demolition work.

     Also in 1986, the presiding Administrative Law  Judge ruled in favor
of EPA in an action in which EPA alleged that International  Harvester
exceeded Ohio SIP limitations governing VOC  emissions at  its Springfield
truck assembly plant.  In March 1986, a consent decree was entered resolving
an action which alleged violations by Jefferson Smurfit Corporation of
Ohio SIP provisions regulating VOC emissions.  The basic  terms  of  settlement
were the defendant's agreements to bring its offending operations  into
compliance by March 31, 1987, by installation of  pollution control equip-
ment, and to pay a civil penalty of $1?0,000.  In October 1986, the U.S.
District Court for Arizona entered a consent decree  resolving Act  violations
at Phelps Hodge Corporation's Douglas Reduction Works copper smelter in
Douglas, Arizona.  The smelter achieved compliance with the Act and the
Arizona sulfur dioxide and particulate matter SIP limits  by permanently
ceasing smelting operations on January 15, 1987.   In addition,  Phelps
Dodge was fined $400,000 in civil  penalties, and  was required to meet
stringent interim emissions curtailment requirements.

     In June 1986, EPA filed eight civil  cases under the  Act against
metal parts manufacturing and coating facilities  located  in the Los
Angeles area to enforce California SIP emissions  limits for VOC's.  Six
of the eight cases were settled in December  1986. The remaining two
cases are expected to be settled early in 1987.

     In June 1986, EPA issued its final inspection frequency guidance for
stationary sources of air pollution.  For the past ?. years, the guidance
has been modified in response to both State  and EPA  Regional concerns
about the need for added flexibility, national consistency, and quality.
The guidance also freezes any additional changes  while it is being
implemented.
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     During 1986, Class A SIP, NSPS, and NESHAP Federal facilities demonstrated
a good record of compliance with applicable air pollution regulations.  As
of the end of 1986, 313 (88 percent) of the 354 operating Federal facilities
are in compliance, 12 are meeting schedules that will  bring them into
compliance, 25 are in violation and not yet on an acceptable schedule, and
4 are of unknown compliance status.

     Four facilities were placed on the List of Violating Facilities in
1986.  This list is established by section 306 of the Act for the purpose
of preventing the Federal government from doing business with facilities
which have violated selected sections of the Act.

I.   CONTROL OF MOBILE SOURCE EMISSIONS

     The EPA's mobile source control program continued work on several
areas in 1986 directly aimed at the goal of reducing ground-level ozone
levels.  One of the key actions was oriented toward controlling excess
evaporative emissions through regulation of in-use gasoline volatility.
The EPA held a hearing and workshop in 1986 on gasoline volatility.   In
1986, EPA also analyzed whether refueling emission controls are necessary
and whether the control should be at the gas station or on the vehicle.
A third ozone-related action was an advance notice of proposed rulemaking
released in 1986 to tighten light-duty truck exhaust hydrocarbon standards.

     The EPA undertook three initiatives on air toxics related to vehicle
fuels in 1986.  One action was to prepare a study of costs and benefits in
reducing the amount of sulfur in diesel fuel.   Another was to begin  develop-
ment of testing protocols to determine the health effects of fuels and
fuel additives and to develop an inventory of current commercially
available fuel additive materials.  Another was to hold an internal  workshop
on formaldehyde exposure.

     The EPA has established a nationwide fuels enforcement program  to
ensure that affected retail outlets comply with regulations aimed at
protecting the catalytic converters on 1975 and later model year cars.  This
program includes sampling of the fuel at retail outlets by EPA field
inspectors and private or State inspectors under EPA contract in order to
measure the fuel's lead content.  The EPA conducted 15,000 inspections
under this program during 1986.

     Also related to lead emissions, EPA's promulgated rule which reduced
allowable lead in gasoline from 1.1 grams per leaded gallon to 0.1 gram per
leaded gallon took effect January 1, 1986.  In addition, in accordance with
the Food Security Act of 1985, EPA conducted tests of farm machinery run
on leaded, no-lead, low-lead, and additive gasoline.  This testing sought
to assess the degree of premature wear in engines built to use leaded
gasoline exclusively.  In anticipation of the elimination of lead in the
in-use fuel, EPA proposed elimination of lead  in test fuel in 1986.
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     The EPA mobile source control  program began to shift its enforcement
efforts from the area of fuel  switching during 1986 by instituting a fuel
refiner/importer audit program to assure compliance with the lead phasedown
regulations.  Investigations of 11  refiner facilities  were conducted
during 1986 and several  notices of  violations were issued with proposed
penalties of over $40 million.

     The EPA produced a  number of accomplishments in the area of mobile
source standard setting  during 1986.   In anticipation  of the development
of methanol as an alternative fuel, a Notice of Proposed Rulemaking was
published in 1986, which proposed emission standards for methanol-fueled
vehicles.  In addition,  EPA defended its March 1985 heavy-duty diesel
engine rulemaking in court.  The court upheld the original  rulemaking  in
nearly all respects.  Also, EPA continued to promulgate nonconformance
penalties for those engine families unable to meet certain standards
applicable to a given model year.  The EPA also published a study on the
economics of trading and banking emissions of particulate matter and
oxides of nitrogen from  heavy-duty  diesel engines in 1986.

     One of EPA's key techniques for assuring the compliance of vehicles
with the motor vehicle emissions standards is the preproduction certifica-
tion program.  Initiated in 1968, the program involves the engineering
review and testing by EPA staff of  engine families representing new
vehicles which are to be sold in the United States.   This procedure
identifies and resolves  potential problems which could result in excessive
in-use emissions.  As a  result of a series of regulatory reforms implemented
over the last several years, the certification process has become a much
stronger, flexible, and  more efficient program.  Effective use of computeri-
zation has eliminated redundancy, resulted in administrative streamlining,
and eased the procedural burden to  the manufacturers,  while still  retaining
the full effectiveness of the program.

     In 1986, EPA continued to promote the implementation of vehicle
inspection/maintenance (I/M) programs In each locality where it is required
by the Act.  By the end  of the year, 58 of 62 areas had initiated I/M
programs.  In order to assure that  operating I/M programs actually achieve
the planned emissions reductions, EPA has initiated a systematic I/M audit-
ing plan.  In 1986, EPA  audited 13  I/M programs and conducted 6 follow-up
audits.  In addition to  I/M programs, EPA has promoted the implementation
of State and local antitampering enforcement programs.   Ry the end of
1986, 32 programs had been implemented.

     In order to assure  that production vehicles and heavy-duty engines
are built in accordance  with emissions standards, EPA conducts Selective
Enforcement Audit (SEA)  test programs at manufacturers' facilities.  As a
direct result of the SEA program, most light-duty vehicle and heavy-duty
engine manufacturers also perform internal quality assurance emission
testing of their production.  This  information is supplied to EPA by
manufacturers and provides additional assurance that production vehicles
and heavy-duty engines are meeting  emission standards.  In 1986, EPA
conducted 17 SEA's, including 4 at  foreign manufacturers' facilities.   In
addition, the first SEA's of heavy-duty engines were conducted in 1986.
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     Section 207(c)  of the Act authorizes EPA to order the recall  of
vehicles if a substantial  number of any class of vehicles do not  conform
to emissions standards during their useful  lives.   During 1986, a total
of 1,012,000 vehicles were recalled by or as a result  of EPA investigations.
Of these vehicles, 435,000 were recalled to correct excessive exhaust
hydrocarbon emissions, and 53,000 were recalled to correct excessive
evaporative hydrocarbon emissions.  In the same period, manufacturers
voluntarily recalled an additional 569,000 vehicles to correct emissions
problems.

     The EPA is also responsible for carrying out  programs designed to
deter tampering with vehicle emissions control systems or using leaded
fuel in vehicles which require unleaded fuel.  Tampering enforcement
activities increased in 1986, resulting in 73 notices  of violation with
proposed penalties of $1.4 million.  The EPA settled a total of 352 fuels
and tampering cases  during the year for total penalties of $1.4 million.
A critical element of State and local  tampering inspections is the
availability of replacement emission control  components.   In 1986, EPA
published an interim and proposed enforcement policy for new and  used
aftermarket catalytic converters which gives specific  criteria which
must be met by all manufacturers of new and recycled catalytic converters.
The EPA is also responsible for assessing whether  the  Federal  emission
warranty requirements of sections 207(a) and (b) of the Act are imple-
mented.  During 1986, EPA responded to a total of  1175 inquiries.   Of
these, 188 were complaints specifically related to warranty coverage and
were referred to the appropriate vehicle manufacturer  for resolution.

     The control of emissions from imported vehicles which do not conform
to applicable air pollution control regulations has become a major issue
in recent years.  The importation of these vehicles increased from 1,500
in 1980 to a high of 68,000 in 1985.  In 1986, EPA received 36,500 appli-
cations for imported vehicles and 32,700 inquiries concerning these
automobiles.  The decline of imported  vehicles in  1986 was primarily due
to the less favorable exchange rate between the U.S. dollar and the
German mark.

     A vigorous enforcement program was undertaken against unskilled and
fraudulent emission  laboratories.  The EPA has been investigating
various laboratories to ensure that nonconforming  imports have been
properly tested to demonstrate conformity with U.S. emission standards.
In 1986, EPA successfully prosecuted one laboratory for falsifying test
results, resulting in three individual  convictions and one corporate
conviction.  In addition, at the end of 1986, there were three other
ongoing investigations which could result in prosecution.

     In the area of  mobile source-related litigation in 1986,  a judgment
for "5160,000 was issued against a corporation for  a violation  of  section
211 of the Act, which pertains to the  regulation of fuels.  In addition,
cases were initiated against seven defendants in Houston, Texas,  for
distributing leaded  gasoline as unleaded.  In another  action,  EPA proposed
a $2,573,090 penalty against a refiner that exceeded allowable lead limits
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 during  calendar  quarters  from  October  ],  1983, through  December  31,  1984.
 Also  in 1986,  EPA  cited  16  repair  facilities  in  Indiana,  New  York, and
 Colorado for tampering  violations.   In  addition,  EPA  successfully  prosecuted
 a  muffler repair shop for the  removal  of  catalytic converters  on  14
 vehicles.

 J.   STRATOSPHERIC OZONE  PROTECTION

      In 1980 EPA issued  an  advance notice of  proposed rulemaking  discussing
 possible further limits on  domestic  production of chlorofluorocarbons
 (CFC's) under section 157 of the Act.   This was  done  in order  to  lessen
 potential  depletion  of  stratospheric ozone and thereby  lessen  the  amount
 of potentially harmful  ultraviolet radiation  reaching the earth's  surface.
 However, some of the scientific information summarized  in that notice was
 outdated by  more recent work in the  field, and there  have been substantial
 changes in the research community's  understanding of  the  issue since
 then.   In general, the  more recent work demonstrated  that possible changes
 in the  stratospheric ozone  layer are affected by  a more complex  array of
'physical and chemical forces than  previously  thought.  In  addition, EPA
 believes that  any  decision  on  further  regulation  of domestic  CFC  production
 or use  should be evaluated  in  the  context of  possible international  regula-
 tory  actions.  Accordingly, EPA developed a program for further  examination
 and resolution of  this  issue which it  published  in January 1986.   This
 program integrates the  diverse scientific and economic  research  being
 carried on by EPA  and by  other organizations  into a framework  for  future
 EPA decision-making  on  both the domestic  and  international  aspects of this
 issue.

 K.   RADON ASSESSMENT AND REMEDIATION

      Radon is a  radioactive gas produced  by the  radioactive decay  of  radium-226,
 which occurs naturally  in almost all soils and rocks.   The Reading Prong
 area  of Pennsylvania, New Jersey,  and  New York are the  best known  high-radon
 areas in the United  States  at  this time.   However, indoor radon  is poten-
 tially  a widespread  problem as high  radon levels  have been found  in  many
 States.  Initial efforts  of the EPA  Radon Action  Program  in 1985  were
 concentrated in  the Reading Prong  with  neasurement assistance  being
 provided to  States in that  area.   The  program was expanded in  1986 in
 response to  increased awareness of the  magnitude  of the problem  and  the
 associated health  risks.

      The EPA developed  a  national  strategy to assist  State governments
 and the private  sector  in assessing  and reducing  health risks  due  to
 indoor  radon. The goals  of the EPA  strategy  are  to~determine  the  national
 frequency distribution  of radon concentrations and identify high  risk
 areas,  to remediate exposure  in existing  structures,  to prevent  exposure
 in future construction,  and to provide  for limited, yet essential, overall
 Federal program  direction and  coordination.
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L.   LITIGATION

     During 1986 two highly significant precedent-setting cases involving
the Act were decided by the courts.   In a major ruling on EPA's obligations
under section 115 of the Act, the D.C.  Circuit held that two letters
forwarded by former Administrator Costle to the Secretary of State  and  to
Senator George Mitchell did not trigger a nondiscretionary duty on  the
part of the current Administrator to issue calls for SIP revisions  in
States allegedly contributing to acid deposition in Canada.   In a second
action, the Supreme Court ruled that EPA acted within' its statutory authority
under the Act in inspecting a Dow chemical plant by taking aerial photographs.
The case is broadly significant because of its ruling that EPA is free  to
use this inspection technique without transgressing constitutional  guarantees
against unreasonable searches and seizures.

     In another action, a judge in the Eastern District of Michigan
issued an order in 1986 enjoining EPA from taking action to  withdraw or
modify a PSD permit issued by the State of Michigan under delegated
federal authority.  The court ruled  that EPA has no authority to terminate
or modify a PSD permit once it is issued except under narrow circumstances.

     With one significant exception, the courts uniformly rejected  challenges
to EPA actions in approving or disapproving particular SIP's plans  during
1986.  In Bethlehem Steel Corp. v. EPA, the Seventh Circuit  rejected
challenges to EPA's partial disapproval of Indiana coke oven rules.  In
Michigan v. Thomas the Sixth Circuit upheld EPA's disapproval  of purported
RACT requirements for fugitive dust  sources, which EPA believed were
vague and unenforceable.  In Council of Commuter Organizations v. Thomas,
the Second Circuit upheld EPA's approval of the New York SIP for ozone
and carbon monoxide against a citizen group argument that the state had
failed to meet the Act requirement that the existing transportation
system meet "basic transportation needs." In New Mexico Environmental
Improvement Division v. Thomas, the  court upheld EPA's imposition of
restrictions on air grants to the State air pollution control  agency for
failure to submit an adequate I/M program for Albuquerque, against  a
challenge by the State agency mainly on the grounds that the formula
selected by EPA for apportioning the restriction between the State  and
local agencies was arbitrary and capricious.  In Ohio v. EPA, however,
the Sixth Circuit, ignoring its own  precedents to the contrary, overturned
EPA's approval of revised sulfur dioxide SIP limits for two  power plants
operated by the Cleveland Electric Illuminating Company, on  the grounds
that EPA had failed to verify modeling  results against field data.   On
EPA's petition for rehearing, the court narrowed its holding to reflect
its concern that the model failed adequately to account for  lakeshore
fumigation effects.
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     The EPA settled a lawsuit under section  122 of the  Act  challenging
EPA's decision not to regulate polycyclic  organic matter.  The  settlement
agreement requires EPA to take a number of regulatory  and  nonregulatory
actions, including conducting a rulema
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            TI.   AIR QUALITY TRENDS,  MONITORING,  AND  MODELING


     This chapter describes current trends  in  ambient  air  quality  levels
(the concentration of a given pollutant in  the atmosphere),  as  well  as
trends in estimated emissions into the  air  of  various  pollutants.   In
addition, the chapter discusses the topics  of  air quality  monitoring and
air quality modeling.  Data on ambient  air  quality levels  and emissions
are through 1985, the latest year for which EPA has complete statistics.

A.  NATIONAL AIR QUALITY AND EMISSION TRENDS

    While considerable progress has been made  over the years in reducing
air pollution levels, millions of people still  continue to breathe air
that is in violation of the national  ambient air quality standards (NAAQS).
In 1985, 76.4 million people were living in counties  with  measured air
quality levels that violated the NAAQS  for  ozone.   This compares with
47.8 million people for total suspended particulate,  39.6  million
people for carbon monoxide, 7.5 million people for nitrogen  dioxide, 4.5
million people for lead, and 2.?, million people for sulfur dioxide.

     Nationally, long-term 10-year (1976 through  1985)  improvements  can
be seen for TSP, sulfur dioxide, carbon monoxide,  nitrogen dioxide,  ozone,
and lead.  The trend in ozone is complicated by a major drop in measured
concentration levels which occurred between 1978  and  1979, largely due to
a change in the ozone measurement calibration  procedure.   Therefore,
special attention is given to the period after 1979,  because the change
in the calibration procedure is not an  influence  during this time.

     Air pollution trends were also examined over the  most recent  5-year
period (1981 through 1985) to take advantage of the larger number  of
monitoring sites and the fact that the  data from  the  post-1980  period
should be of the highest quality, with  sites meeting  uniform siting
criteria and high standards of quality  assurance.   Nationally,  improvements
can be seen for all the pollutants during the  5-year  period.  Between
1984 and 1985, all of the pollutants  declined  with major decreases
observed for carbon monoxide (10 percent),  and lead (32 percent).

     All of the  ambient air quality trend analyses which follow are  based
on monitoring sites which recorded data in  at  least 8  of the 10 years in
the period 1976  through 1985.  In each  of these years,  an  annual data
completeness criteria also had to be  met.  As  a result  of  these criteria,
only a subset of the total number of  existing  sites are used for trend
purposes.
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     Total  Suspended Participate (TSP)  -  Annual  average  TSP  levels,  measured
at 1400 sites, decreased 24 percent  between  1976 and  1985.   This  corresponds
to a 24 percent decrease in estimated particulate emissions  for the  same
period.  The EPA has found that the  TSP data collected during  the years 1979-1931
may be biased high due to the glass  fiber filter used during these years,
and that most of the large apparent  2-year decrease in pollutant  concentrations
between 1981 and 1982 can be attributed to a change in these filters.  As
reported in last year's report, there was a  slight increase  in particulate
air quality levels between 1983 and  1984  due to  a return of  rainfall  to
more normal levels and an increase in particulate emissions.   Between  1984
and 1985, particulate air quality levels  declined 4 percent, while emissions
declined 3  percent.   An examination  of  regional  trends patterns indicates
decreases in TSP were evident in most Regions between 1984 and 1985.   Two
of the EPA  Regions,  Region V (the Great Lakes States) and Region  VI  (the
South Central States) were among the group of Regions showing  the largest
particulate air quality improvements arid  were also the only  Regions  experiencing
increases in precipitation.  Correspondingly, it is likely that some of
these Regional improvements were due to 1985 being a  wetter  year.

     Sulfur Dioxide  - Annual average sulfur  dioxide levels measured  at
264 sites with continuous sulfur dioxide  monitors decreased  42 percent
from 1976 to 1985.  A comparable decrease of 44  percent  was  observed in
the trend in the composite average of the second maximum 24-hour  averages.
An even greater improvement was observed  in  the  estimated number  of
exceedances of the 24-hour standard, which decreased  95  percent.  Corres-
pondingly,  there was a 21 percent drop  in sulfur oxide emissions. The
difference  between emissions and air quality can be attributed to several
factors.  Sulfur dioxide monitors are mostly urban population  oriented
and as such do not monitor many of the  major emitters which  tend  to  be
located in  more rural areas.  The residential and commercial areas,  where
most monitors are located, have shown sulfur oxide emission  decreases
comparable  to sulfur dioxide air quality  improvement.  Between 1984  and
1985, nationwide average sulfur dioxide levels decreased 5 percent.   The
decrease in ambient  levels corresponds  to a  3 percent decrease in sulfur
oxide emissions.

     Carbon Monoxide - Nationally, the second highest nonoverlapping
8-hour average carbon monoxide levels, at  163 sites decreased 36 percent
between 1976 and 1985.  The median rate of improvement has been about  5
percent per year, but the 1984-85 decrease was twice  as  large, about in
percent.  The estimated number of exceedances of the  8-hour  NAAOS decreased
92 percent  between 1976 and 1985. Carbon monoxide emissions decreased 21
percent during the same period.  Because  carbon  monoxide monitors are
typically located to identify potential problems, they are likely to be
placed in traffic-saturated areas that may not experience significant
increases in vehicle miles of travel.  As a  result, the  air  quality
levels at these locations generally  improve  at a rate faster than the
nationwide  reduction in emissions.  Between  1984 and  1985, carbon monoxide
levels decreased 10 percent.  These  changes  reflect the  continuing reductions
in carbon monoxide emissions brought about by the Federal Motor Vehicle
Control Program, the change in the vehicle mix,  and the  possible  influence
of meteorological conditions in some geographic  areas.
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     Nitrogen Dioxide - Annual  average nitrogen  dioxide  levels,
measured at 108 sites, increased from 1976 to 1979,  and  decreased  through
1985, except for a slight increase in 1984.  The 1985  composite  nitrogen
dioxide average, however, is 11  percent lower than the 1976  level  indicating
a downward trend during the overall  period.  The trend in  the estimated
nationwide emissions of nitrogen oxides is similar to  the  nitrogen dioxide
air quality trend,  between 1976 and 1985, total  nitrogen  oxide  emissions
decreased by 1  percent, and highway  vehicle emissions, the source  category
likely impacting the majority of nitrogen dioxide monitoring sites,  decreased
by 4 percent.  Between 1984 and  1985, the nitrogen dioxide composite
average decreased by 2 percent,  while the estimated  emissions of nitrogen
oxides increased by 2 percent.   This small year-to-year  difference between
the ambient levels and the emissions percent change  is likely not  significant
given the relatively low ambient nitrogen dioxide levels.

     Ozone - Nationally, the composite average of the  second highest daily
maximum 1-hour ozone values, recorded at 183 sites,  decreased 19 percent
between 1976 and 1985.  Volatile organic compound (VOC)  emissions  decreased
11 percent during the same period.  Although the 1985  composite  average for
the 163 trend sites is 19 percent lower than the 1976  average, the
interpretation of this decrease  is complicated by a  calibration  change for
ozone measurements that occurred in  the 1978-79  time period.   In the post
calibration period (1979 to 1985), ozone levels  decreased  10 percent, while
VOC emissions decreased 12 percent.   The estimated number  of exceedances
of the ozone standard decreased  38 percent between 1979  and  1985.   The ozone
trends in the 1980's show that  the 1980 and 1983 values  were higher  than
those in 1981, 1982, 1984, and  1985.  Previous reports have  discussed the
likelihood that the higher 1983  levels were influenced by  meteorological
conditions in that year that were more conducive to  ozone  formation  than
conditions in adjacent years.  While 1985 levels are similar to  1984
levels, there was a slight improvement of 2 percent  in the national
composite average between these  2 years.

     Lead - The composite maximum quarterly average  of ambient lead
levels, recorded at 53 urban sites,  decreased 79 percent between 1976 and
1985.  Lead emissions declined 86 percent during the same  period.   In
order to increase the number of  trend sites, the 1981  to 1985 time period
was examined.  A total of 241 trend  sites (1981  to 1985) measured  a  50
percent decline in lead levels,  corresponding to a 62  percent decrease in
estimated lead emissions.  Between 1984 and 1985 ambient lead levels
declined 32 percent, while lead  emissions are estimated  to have  declined
48 percent.  This is the largest percentage decrease for any 2 consecutive
years.  The decrease in ambient  lead levels results  from three EPA programs.
First, regulations issued in the early 1970's resulted in  the lead content
of all gasoline being gradually  reduced over a period  of years.   Second,
unleaded gasoline was introduced in  1975 for use in  automobiles  equipped
with catalytic control devices.   Third, lead emissions from  smelters
and other stationary sources have been reduced by the  TSP  and lead control
programs.
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B.  AMBIENT AIR MONITORING

    General

     Section 110(a)(?)(C)  of the Clean Air Act  (Act)  requires  State
implementation plans to include provisions for  establishment and  operation
of systems for monitoring  ambient air quality.   In  addition, section  319
of the Act requires the development  of uniform  air  quality monitoring
criteria and methods and the establishment of an air  quality monitoring
system throughout the United States  which  uses  uniform  monitoring criteria
and methods.  To satisfy these requirements,  EPA promulgated regulations
in 1979 which required States to establish and  operate  air monitoring
stations and report the data to EPA1.  The two  principal  types of stations
in the State networks are  State and  Local  Air Monitoring  Stations (SLAMS)
and National Air Monitoring Stations (NAMS).   The monitoring stations of
the SLAMS and NAMS must adhere to the uniform monitoring  criteria described
in the regulations.  These criteria  cover  quality assurance, monitoring
methods, network design, and probe siting. January 1,  1981, was  the
deadline by which all NAMS were to meet all of  the  requirements in the
regulations.  The SLAMS had until January  1,  1983,  to meet all of the
provisions in the regulations.  Rased on 5 years of operating  experience
with the MAMS and SLAMS networks, some relatively minor modifications
of the 1979 regulations were promulgated in the Federal Register  in 1985.2
These modifications were intended to simplify and improve the  overall  monitoring
program required by the Act.

     Overall, State and local progress in  meeting the requirements of the
regulations continues to be excellent.  Table 1 shows the status  of the SLAMS
network at the end of 1986.  There are a total  of 4545  operating  monitors  in
the network meeting requirements of  the regulations.  Table ?  shows that 1325
NAMS were in operation and meeting the requirements of  the regulations through
December 1986.  Table 3 lists, by pollutant,  the number of SLAMS  and  NAMS.


                 Table 1.   SLAMS Status through December  1986

                                                           Number of
                                                            Monitors

           Monitors operational through 12/86                  4545

           Total planned network for 1937*                     4400
*Includes NAMS monitors and reflects small  reductions and additions
 planned by a number of control  agencies.
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                 Table 2.  NAMS Status Through December 1986
           Monitors operational through 12/86

           Total planned network for 1987
Number of
 Monitors

  1325

  1297
                 Table 3.  National Summary of Operating Air
                      Monitoring Stations (as of 12/86T
Pollutant
TSP
S02
N02
cn
03
Pb
TOTAL
SLAMS
(including NAMS)
2350
524
227
443
599
402
4545
NAMS
617
201
59
117
218
113
1325
     Particulate Monitoring

     To accompany the proposed revisions to the NAAOS for particulate
matter discussed elsewhere in this repurt, EPA on March 20, 1984,  also
proposed amendments to 40 CFR 58 (Air Quality Surveillance and Reporting
Regulations).3  The proposed revisions to Part 58 would establish  ambient
air quality monitoring requirements for particulate matter as measured by
a new reference method proposed as Appendix J of 40 CFR Part 50 or an
equivalent method.  The proposed requirements are comparable to those
already established for the other criteria pollutants for which air
quality standards have been set.  These include requirements for reporting
and assuring the quality of ambient particulate matter data, designing
monitoring networks, and the siting of samplers.  Since most areas of the
country did not have particulate matter ambient monitoring data, EPA, in
late 1984, procured 662 particulate matter samplers for distribution to
State and local agencies.  Since then funds have been allocated each year
to procure additional particulate matter samplers.  Specialized training
was provided by EPA to State and local agency personnel  on the operation
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and maintenance of the participate matter samplers.   Also,  the States and
local  agencies have separately purchased participate matter samplers
bringing the total number of operating particulate matter samplers to 877
as of December 31, 1986.  The data from these sites  will  be used by the
States in developing particulate matter State implementation plans which
will  be required upon promulgation of a particulate  matter  air quality standard,

     Nonmethane Organic Compounds Monitoring

     During 1986, ambient hydrocarbon data were collected at 23 sites.
This was the third consecutive summer of field studies to measure nonmethane
organic compounds (NMOC) in various cities.  These data are needed to
derive NMOC/oxides of nitrogen ratios, an important  factor  in predicting
the effect of control programs to reduce ozone.  As  in past years, data
capture was high and results were reproducible using different measurement
techniques.  Need for a similar program is envisioned in  1987 and in 1988.

C.  AIR QUALITY MODELING

    An air quality model is a set of mathematical  equations that describes the
atmospheric transport, dispersion, and transformation of  pollutant emissions.
By means of these equations, a model can be used to  calculate or predict the
air quality impacts of emissions from proposed new sources, emissions from
existing sources, or changes in emissions from either of  these source cate-
gories.  These models are of great utility because they provide a means
whereby the effectiveness of air pollution controls  can be  estimated before
action is taken.

     During 1986, EPA continued its program to evaluate several categories
of models.  This program was developed in response to recommendations of
the American Meteorological Society (AMS) under its  cooperative agreement
with EPA.4  The evaluation of eight short-term, long-range  transport
models was completed^ in a manner consistent with earlier evaluations of
four other categories of models.  The results clarified the similarities
and differences among several of these models for the two data bases
considered.  Two of the models appeared to provide somewhat more accurate
estimates than the others.  A scientific review will  be conducted in 1987.

     A technique has also been developed for statistically  intercomparing the
performance of air quality models.  The technique makes use of a unique
statistical procedure to provide estimates of the degree  to which one model
outperforms another.  The technique addresses both the operational and the
scientific component of model evaluation.  During 1987, the technique will
be refined to allow integration of the operational and scientific components
and results from multiple data bases into a single definitive outcome.  A
protocol will be developed and tested for implementing the  procedure in
regulatory applications that provides for both generic selection of a best
model  for widespread use or for case-by-case model selection for use in
particular regulatory settings.  If feasible, the protocol  will incorporate
minimum standards of performance that may be used to eliminate poor or non-
competitive models from the selection process.
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     Activities begun in 1985 to support major new initiatives in the area
of air toxics regulation accelerated during 1986.   A simple screening model
for relief valve discharges was developed and implemented while efforts were
initiated to develop a more refined model for such releases.  These models
address the potentially significant effects of negative buoyancy which is
commonly associated with high pressure gas releases.   A model  for ground
level, heavier than air, gas releases was acquired and implemented.  A pre-
liminary study comparing the model  to alternative  models and to observed
data was completed.  Efforts continued on the development and application
of a model  for estimating airborne concentrations  from mechanical draft
cooling tower drift emissions.  A major effort during 1986 was the develop-
ment and adaptation of models for air emissions from facilities handling
hazardous wastes.  This included the integration of emissions and dispersion
models, particularly for large area type sources (e.g., surface impoundments
and landfills).  Recause volatile organic emissions from such facilities
are reactive and lead to the formation of ozone over long transport times,
regional scale photochemical modeling covering the eastern U.S. was initi-
ated to determine their importance in contributing to the ozone nonattain-
ment problem.  A systematic look at projected air  toxics modeling needs was
initiated during 1986, directed toward planning of future model evaluation
efforts.

     The Oxidant Modeling for the New York Metropolitan Area Project
(OMNYMAP) was completed in 1986 via cooperative agreements with the
States of New York and Connecticut.  The program was designed to perform
photochemical modeling of the New York metropolitan area, including parts
of New Jersey and Connecticut.  As part of this effort, applications of
the Urban Airshed Model (Airshed) were made for 5  high ozone days within
the metropolitan area.  In general, model predictions of peak ozone
values were within plus or minus 30 percent of corresponding concentrations
observed at monitoring sites.  This level of model performance is consistent
with findings from prior Airshed evaluations for St.  Louis, Philadelphia,
and Tulsa.   In addition, several control strategies were tested and the
sensitivity of predicted ozone to incoming ozone/precursor transport was
examined to a limited extent.  The results indicate that the implementation
of the emissions reductions, including "extraordinary" measures, would
not reduce  peak ozone concentrations to below the  level of che ozone
air quality standards on the days simulated.  Moreover, the sensitivity
analysis suggests that attainment in the metropolitan area is  not likely
without a reduction in pollutant transport.  The EPA is currently exploring
several approaches for further investigations of the impact of transport
on control  strategies in the Northeast.

     Efforts to improve guidance on air quality models and to ensure
consistency in their use have also continued.6  Model Clearinghouse activities
were maintained to ensure that use of nonguideline techniques  does not lead
to inconsistent regulatory decisions.  A workshop  was held with modeling
contacts in EPA's ten Regional Offices and four representative State agencies
to improve  communications on the use of models and to resolve common problems.
Regulatory  action on the "Guideline on Air Ouality Models (Revised)" was
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completed  with a notice in the Federal  Register that incorporated the
guideline by reference in regulations  oh prevention  of significant
deterioration.7  The guideline lists the air quality models  and data bases
required to assess impact and to estimate ambient concentrations due to
certain sources of air pollutants.   The  revision had been  the subject of
a public hearing and extensive comment.   In response to the  public comment,
a supplemental  notice of proposed rulemaking was published that proposes
to augment the guideline with four  additional  models that  have unique
applications.^  The public comment  period closed in  December 1986 and the
regulatory action will be completed by mid-1987.

     Receptor Model Activities

     During 1986, EPA improved the  software for the  Chemical Mass Balance
receptor model  to make the results  more  informative  and to make the
diagnostics easier to use.  The user's manual  for the model  is being
rewritten to reflect these changes.   In  addition, draft guidance describing
a protocol to ensure that a receptor model  application is  a  valid one was
completed.  A draft protocol  to resolve  conflicting  results  between
receptor and dispersion models was  also  completed.  The user's manual and
two protocols will be finalized and made available for use in regulatory
applications during 1987.

     Ozone Modeling

     During 1986, EPA continued to  provide technical support and review of
ozone model applications using the  Empirical Kinetics Modeling Approach
(EKMA).  The EKMA is widely used by State and local  agencies to estimate
emission controls necessary to attain  the ambient air quality standard for
ozone.  Efforts to improve data needed as inputs to  the model were continued.
A series of draft recommendations related to modeling assumptions, supporting
data, and interpretation of results in applications  after  1987 were made.
During 1987 these draft recommendations  will be subject to wider public review.

D.   INTEGRATION OF AIR DATA SYSTEMS

     The Aerometric Information Reporting System (AIRS) is a new integrated
data system being developed by EPA  to  replace entirely the existing data
bases, files, and software now used by the EPA for storing and retrieving
ambient air quality data, stationary source and emissions  data, and source
compliance data.  The AIRS will be  composed of two relatively separate
components (air quality and facility data)  but will  use common sets of geo-
graphical and other codes and draw  upon  a state-of-the-art data base
management system.

     In 1986, major efforts continued on the air quality component of
AIRS.  This segment is expected to  be fully available for  use by EPA
Headquarters and Regional Offices by mid-1987 with pilot installations in
some States begun by the end of 1987.   Oesign of the integrated emissions/
compliance subsystem proceeded well  during 1986.
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E.  EMISSION FACTOR HEVELOPMENT

    In 1986, EPA completed major revisions to emission factors for use
by States and others to estimate source emissions and  to compile emission
inventories.  Emission factor information is published and distributed for
criteria pollutants in a publication entitled Compilation of Air Pollution
Emission Factors.9  The revisions will  be issued in early 1987 as
Supplement A to this publication.in  Nearly all  the revisions involve the
addition of size-specific emission factors, with emphasis on particles
less than 10 microns in diameter (PM^Q) in anticipation of the PM^Q ambient
air quality standard promulgated during 1987.

     The EPA distributed guidance in 1986 on procedures for estimating
emissions for selected, potentially toxic pollutants.   Final  reports were
distributed for ethylene oxide and chlorobenzenes.   Reports are now in
preparation for polycyclic organics, polychlorinated biphenyls and benzene.
Issuance of these additional documents  is scheduled for 1987, pending the
completion of peer review for each document.  New work is also planned on
improving emission factors for various  area sources of toxic air pollutants.

F.   REFERENCES

     1.  44 FR 27558, May 10, 1979.

     2.  50 FR 9538, March 8, 1985.

     3.  49 FR 10436, March 20, 1984.

     4.  n. Fox, "Judging Air Quality Model Performance," Bulletin of the
         American Meteorological Society, 62(5):599-609, 1981.

     5.  A. Policastro, et al., "Evaluation of Short-Term Long-Range Transport
         Models, EPA-450/4-86-016a,b, 1986.

     6.  "Guideline on Air Quality Models (Revised),"  EPA 450/2-78-027R, 1986.

     7.  51 FR 32176, September 9, 1986.

     8.  51 FR 32180, September 9, 1986.

     9.  Compilation of Air Pollution Emission Factors, Volume I:  Stationary
         Point and Area Sources, AP-42, U.S. EPA, Research Triangle Park,  N.C.,
         September 1985.

    10.  Supplement A to Compilation of Air Pollutant  Emission Factors, Volume I:
         Stationary Point and Area Sources, AP-42,  U.S. EPA, Research Triangle
         Park, N.C., November 1986.
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                  III.  AIR POLLUTION RESEARCH PROGRAMS
A.   INTRODUCTION
     In support of the Clean Air Act, EPA's Office of Research and
Development (ORD) provides health and ecological  effects data bases,
monitoring and modeling methods, risk assessments, emission reduction and
mitigation technologies, and the corresponding quality assurance and
technical assistance to develop regulations.  In  addition, ORD assists
States in developing State implementation plans by providing improved
monitoring, modeling, and control technology as they become available.
In areas where EPA's responsibility is limited to providing technical and
public assistance, such as indoor air quality and radon, ORD research
provides essential information on risks, prevention, and mitigation.

R.   GENERAL AIR POLLUTION RESEARCH ACTIVITIES

     In 1986, research emphasis shifted further toward indoor air pollution
research, radon mitigation, and studies on problems associated with complex
mixtures of air pollutants.  Within the area of criteria pollutant research,
priorities included development of volatile organic compound control tech-
nology, transport of ozone over distances, the health effects of alterna-
tive fuels and fuel additives, and the health effects of pollutants for
which national  ambient air quality standards exist.  In the mobile sources
area, the focus remained on characterizing evaporative and exhaust emissions
from vehicles using alternative fuels such as methanol.

     1.  Scientific Support to Develop and Review National Ambient
         Air Quality Standards

         (a)  Air quality criteria documents

         The Clean Air Scientific Advisory Committee of EPA's Science
Advisory Roard reviewed a second external review draft of the air quality
criteria document for ozone in April  of 1986.  In September 1986, a final
ozone document was completed^ as was a final addendum for the lead air
quality criteria document.?  These documents provide evaluations of the
latest scientific knowledge which will serve as the basis for review and
possible revision of the ambient air quality standards for these pollutants.

         (b)  Ambient monitoring

     Several advances were made in the area of ambient monitoring in
support of the new requirements for measuring particulate matter less
than or equal to 10 micrometers in size (PM]_n).  Studies of two instruments
were conducted to develop an appropriate Federal  reference method).  Further
testing is being done on these instruments to correct deficiencies.^»^
A field monitoring project was initiated in the summer of 1986 to obtain
data needed by the agency before considering revisions to the ozone air
quality standards.  This field study made use of  new technology developed
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by EPA to measure non-methane organic compounds  in ambient  air.5   The
Standard Reference Photometer Network is  now in  regular use,  thus
enabling State and local  air monitoring agencies to compare their  ozone
standards with authoritative standards which are maintained and operated
under closely controlled  conditions.   Quality assurance was provided for
air programs in an effort to ensure that  measurement  data are of known
accuracy and precision.^?'5*  A report published in 1986 indicated that
improvements have occurred in the precision and  accuracy of monitoring
data obtained in regional and national  measurements.

         (c)  Ozone and nitrogen oxide studies

         A number of controlled human exposure studies  were undertaken in
1986.  Studies were completed which describe the amount of  ozone  removed
in the nasal passages and in the lungs of individuals while they breathe
ozone.^  These studies provided information which is  important in  determin-
ing the dose of ozone reaching target tissues in the  lungs  and for risk
assessment analyses in man.   Other studies examined airway  resistance
occurring in a group of moderately exercising asthmatics exposed to
nitrogen dioxide.^  Substantial  progress was made in a wide-ranging study
of the chronic effects of long-term exposure to  nitrogen dioxide and ozone.
The study focuses on the  ability of oxidant gases to  cause  chronic lung
disease, as reflected by  biochemical, structural, and functional changes
in the lung.

         (d)  Sulfur dioxide clinical studies

         Two clinical studies of sulfur dioxide  were  completed in  1986.
The first study described the concentration-response  range  of mildly
asthmatic volunteers exposed to sulfur dioxide concentrations between
0.25 and 1.0 ppm.H  Another clinical study showed that exposure to a mixture
of sulfur dioxide and sulfuric acid mist  did not affect mild asthmatics
more than exposure to either chemical alone.12

         (e)  Lead studies

         A study of lead  neurotoxicity in children aged 3 to 7 years was
conducted in 1986 which examined the relationship between blood lead
level and Stanford-Binet  10, a measure of cognitive function.  The 10
decreased linearly as blood  lead increased.13 An analysis  of audiometric
data was initiated to investigate the relationship of blood lead levels
and hearing thresholds.  Results indicated that  the probability of hearing
threshold changes increases  significantly with increasing blood lead levels
at the frequencies tested (0.5, 1.2 and A.OKHz).^  A study of the neuro-
physiological effects of  lead exposure in monkeys was also  completed.  This
study, which is part of a larger investigation of the effects of perinatal
lead exposure, indicated  prenatal or postnatal exposure to  lead resulted
in abnormal neurophysiological processing of complex  auditory stimuli.15,16,17
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         (f)  Crop loss studies

         Analysis of the ozone data obtained by the National  Crop Loss
Assessment Network (NCLAN) showed that substantial  dollar losses could be
attributed to ozone damage.  Nineteen manuscripts were published in 1986
on various aspects of the NCLAN findings.^"^6  Planning was  completed for
the International Conference on Assessment of Crop Loss from  Air Pollutants.
This conference, to be held in 1987, will  include full reports on the
NCLAN research.

         (g)  Visibility studies

         In 1986, several studies were completed on the causes of
visibility degradation.  One study examined the volatility of light-
scattering aerosols collected in ambient air samples.   The study found
evidence that some light-scattering aerosols may volatize from the air
sample before actual detection using conventional measurement procedures.^7
In addition, a new approach for selecting  chemical  and physical  rate
parameters was developed to be used in a regional air  quality model to
estimate sourcereceptor relationships.-^  This approach is unique on a
regional  scale and can be applied to estimate best fit rate constants for
the simulation of sulfur transport, transformation, and removal.

     2.  Scientific Support to Develop New Source Performance Standards
         (NSPS) and State Implementation Plans (SIP's)

         (a)  Particulate matter activities

         Two promising procedures for sampling source  emissions  of PMjQ
were field tested.  One method involves the use of a modified Hi-Vol
sampler with a size selective inlet.3q  The other uses a modified dichotomous
sampler.40  One of these methods will be chosen as the standard, based on
its performance during the evaluations.  In addition,  a series of source
category reports were completed on major sources of PMjf) emissions to
assist States in developing SIP's.41  The  Sixth Symposium on  the Transfer
and Utilization of Particulate Control Technology was  held jointly with
the Electric Power Research Institute to transfer information and program
results to users and other interested parties.42

     Two manuals were completed and distributed to Regional and  State
personnel involved in inspection and permitting of particulate control
systems for electric utility coal-fired boilers.43,44   /\n interactive
computer model for electrostatic precipitators was developed  which allows
prediction of electrical operating conditions and particle collection
efficiencies for any arrangement of round  wire discharge electrodes.

         (b)  Flue gas desulfurization activities

         A major achievement in flue gas desulfurization research was
the development of improved calcium sorbents for low-cost retrofit sulfur
dioxide control.  'Ip to 95 percent sulfur  dioxide removal  has been achieved
in a pilot plant using duct injection of dry sorbent in a humified flue
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gas followed by a fabric filter.  A Line/Limestone Flue Gas nesulfuriz'ation
Inspection and Performance Evaluation Manual  was published for use by
Regional and State personnel involved in inspection and permitting
of flue gas desulfurization systems for electric utility coal-fired
boilers.*5

         (c)  Modeling support activities

         An improved mechanism was developed  to quantify the atmospheric
formation of ozone from its precursors.,  This mechanism will afford
increased accuracy in air quality simulation  models.^6  The first generation
regional oxidant model was evaluated arid improvements are being made.47
When completed, this model will  be used to evaluate the impact of various
control strategies on ozone air quality.

     In support of the proposed PMig air quality standard, the Regional
Lagrangian Model of Air Pollution (RELMAP) was completed in 1986.^  RELMAP
simulates ambient concentrations and wet and  dry deposition of sulfur
dioxide, sulfates, and fine and coarse particles over the eastern U.S.
and southeastern Canada.  A user's guide for  the second pollution episodic
model  (PEM-2) was completed.4q  Results of an evaluation of the PEM-2, an
urban scale particulate model, showed that background concentrations of
particles contribute significantly to urban particulate pollution.50

     AROSOL, an urban scale aerosol model, was modified to include two
modules for conversion of sulfate, thereby allowing AROSOL to be operated
either as a lumped sulfate model or as a model which  predicts the particle
size and composition distributions.51

     Version Six of the User's Network for Applied Modeling of Air Pollution
(IINAMAP) program was disseminated to the user community.  UNAMAP is a
collection of models and data bases on magnetic tape which is made available
to users through the National Technical Information Service.

     Version One of the Meteorological Processor for Diffusion Analysis
(MPDA-1) was completed, resulting in a format easily  used by air quality
dispersion models.52  An adjustable buoyancy  balloon tracer of atmospheric
motion  (Phase III) was improved.53  The tracer was developed to evaluate
the accuracy of air pollution transport models and has application through-
out the atmospheric sciences.  A complex terrain workshop was held to
review the preliminary version of the s,ulfur  dioxide Complex Terrain
Dispersion Model.54  Several recommendations  emerged  from the workshop
which will be incorporated into future versions of the model.

     3.  Scientific Support to Develop Regulations for Hazardous Air
         Pollutants (HAP's)

         (a)  Health assessment documents

         Final comprehensive health assessment documents for asbestos
and nickel were completed.55,56  /\n external  review draft of a health
assessment document on beryllium was released to the public for comment.57
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Tier I health effects summaries were prepared for ten compounds.58-67
These documents summarize available scientific literature on the  health
effects of a compound, thus enabling EPA to ascertain whether or  not a
comprehensive health effects document is needed for a specific compound-.

         (b)  Ambient measurement techniques

         A number of advanced ambient measurement techniques were investigated,
such as combined mass spectrometry, gas chromatography/Fourier transform
infrared spectrometry, supercritical fluid chromatography, tunable atomic
line mass spectrometry and cryogenic concentration.  Several techniques
were investigated in order to improve surveillance and control of industrial
sources.  One promising technique involves the use of specially prepared
stainless steel canisters, which inhibit reactions with pollutants collected.^

         (c)  Toxic air monitoring system

         Monitoring for volatile organic compounds through the Toxic Air
Monitoring System (TAMS) continued throughout the year at Houston, Roston,
and Chicago.  Validated TAMS data from these sites were obtained  and
incorporated into EPA's air toxics data base.  A second monitoring location
in each of the above three cities has been selected and monitoring equipment
is being installed.69

         (d)  Personal exposure studies

     An earlier study which used the Total Exposure Assessment Methodology
(TEAM) to measure personal exposures and breath concentrations of volatile
organic compounds generated data from 600 individuals.7^  The data were
partially analyzed in 1986.  Indoor and in-vehicle sources were found to
be much more important than outdoor sources, even in the extremely concentrated
petrochemical refinery areas of northern New Jersey and Los Angeles.  The
major source of exposure to benzene and styrene was cigarette smoking.
Chloroform exposure was primarily due to shower use.  Room air deodorizers
and moth crystals were the major sources of exposure to para-dichlorobenzene.
Exposure to tetrachloroethylene comes mainly from dry-cleaned clothes. The
study results were presented at the annual meeting of the American Chemical
Society.  An analysis of the risks of organic chemicals in the home was
presented at the annual meeting of the Air Pollution Control Association
in Minneapolis.7^

         (e)  Enhanced communications

         The Total Human Exposure Research Council (THERC) was formed to
enhance communication on research projects concerning human exposures to
chemicals, including hazardous air pollutants (HAP's).  An important
objective of THERC is to develop a strategic, 5-year plan for all  research
on human exposure methodology and assessments conducted by EPA.  As a
first step toward this goal, a paper was published which summarizes total
human exposure concepts, and a second paper was published which reviews
EPA's research program on total human exposure to environmental
pollution.7?»73
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         In 198fi, ORf) conducted a workshop to foster EPA and industry •
communications with regard to controlling air toxics.   Partially as a
result of this workshop, prevention reference manuals  are being developed
which will  cover how to evaluate processes and facilities for accidental
release potential, detailed descriptions of pertinent  controls (prevention,
protection, and mitigation), and specific evaluations  for individual
chemicals.

         (f)  Health effects studies

         An Interdivisional Air Toxics Study was initiated to study
the health  effects of inhaled HAP's.  Compounds under  study were selected
based on high production and potential human exposure.   As part of this
effort, studies of p-xylene, toluene, and phosgene exposures were
completed.74'77

     Important advances were made in developing and validating test
methods to  determine the neurotoxic potential of HAP's.   In particular,
studies using discrete lesions in the visual cortex are beginning to
elucidate the relationships between neural structures  in the visual system
and individual components of the flash-evoked potential, which is commonly
used to measure neurotoxicity.7^  Another significant  advance in test
method development was provided by studies to evaluate nervous system
specific proteins as biochemical markers for neurotoxicity.7^

     A study to evaluate the visual function effects of the industrial
solvent, sulfolane, was completed.3n  The results indicated that high
dosages were required to produce effects, thereby indicating that the visual
system is not particularly sensitive to this compound.   These data are in
contrast to previous work which has shown that neurotoxic effects such as
increased susceptibility to seizures are produced by lower dosages of
sulfolane.

     More cost effective and better predictive indicators of reproductive
dysfunction were studied to evaluate potential HAP's.   An evaluation of
age dependent gastrointestinal adsorption of ^304, which is a combustion
product of the fuel additive methylcyclopentadienyl manganese tricarbonyl
(MMT), was conducted to evaluate the fate of inhaled particles translocated
to the gut.  Results indicate higher absorption and retention in young
rats than in adults, resulting in greater exposure for younger animals
and an increased possibility of toxicity.^1

     Two wood stove emission samples showed a dose-related tumorigenie
response in the Sencar Mouse Skin Tumor Initiation/Promotion Assay.  These
two samples are from an airtight wood «;tove burning oak or a softwood
mixture.

         (g)  Wood stove control studies

         Two wood stove emission control technologies  were studied--existing
catalytic secondary combustors and advanced noncatalytic secondary
combustors.  Final results will be published following the 1986-87 heating
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season.  The advanced noncatalytic secondary combustion development work
focused on the use of a small secondary heat source to maintain a stable
secondary flame at the low, smoldering burn rates commonly encountered
in wood stoves.  Laboratory tests on experimental units of both types
retrofitted into an existing stove show that this technique is capable of
reducing carbon monoxide and total hydrocarbons by more than 95 percent.

         (h)  Atmospheric formation of HAP's

         Progress was made in research on the atmospheric formation and
fate of toxic air pollutants.  A report on the results of a HAP field
measurements program was published which summarizes the atmospheric
concentrations of a variety of HAP's observed in selected U.S. cities.^  A
study was completed on the mutagenic activity of wood smoke emissions
under typical atmospheric conditions.^  This study indicated that the
mutagenicity of wood smoke emissions was enhanced under conditions simulating
sunlight.  Smog chamber studies which can simulate a variety of atmospheric
conditions and can provide information that can be used to predict atmospheric
lifetimes and daughter products were conducted on several candidate HAP's
in 1Q86.

         (i)  Integrated air cancer program

         Through the Integrated Air Cancer Program, data collected during
1985/86 sampling in Raleigh, N.C., and Albuquerque, N.M., were analyzed.
Two manuscripts were reviewed and submitted for publication.  One of these
described effective techniques for measuring the mutagenic activities of
gas and particulate-phase photo-oxidation products from wood smoke.^  .
The other evaluated the effectiveness of specially coated silica gel
cartridges for sampling aldehydes and ketones in the air.  Rioassay data
were used in the source receptor modeling analysis for the first time.
Results from the Albuquerque site show that an average of 50 percent of the
ambient particulate mutagenicity was from wood stoves and 50 percent from
automobiles.^5

     4.  Scientific Support to the Mobile Source Regulatory Program

         (a)  Exposure modeling

         As recommended by EPA's Science Advisory Hoard, validation of the
Simulation of Human Air Pollutant Exposure (SHAPE) and the National Ambient
Air Quality Standards Exposure Model (NEM) began, using field data collected
during a carbon monoxide exposure study.  These models predict human
exposure frequency distributions by modeling human activity patterns and
the concentrations associated with particular microenvironments.  A paper
was completed which describes preliminary information on-the field performance
of SHAPE and its validation using the Henver data base.86  Additional
analyses of the Denver data base were conducted to determine the relationship
between fixed monitoring stations and microenvironmental carbon monoxide
concentrations.^ Analyses were completed which related carbon monoxide
exposure profiles with estimated carboxyhenoglobin (COHb) levels and measure-
ments of carbon monoxide in the breath of subjects.™  A model for calculating
the carbon monoxide concentrations in the passenger compartment of motor


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vehicles moving in traffic was tested using the field data from the
Washington, D.C., microenvironment study.89-91  A field  study  was  conducted
in Honolulu to measure carbon monoxide exposures  while people  performed  such
activities as automobile and bus commuting, jogging,  shopping,  eating in
restaurants, and office work.92

     Exposure to carbon monoxide elevates  COHb levels in the blood.
COHb, therefore, is a good indicator of carbon monoxide  dose level.   In
1986, a study was completed which provides evidence  for  cardiovascular
effects at 4 percent and 6 percent COHb levels in angina patients.93,94
Another study of carbon monoxide toxicity  was  completed  in 1986 which showed
that carbon monoxide exposure diminishes hand-eye coordination.95

         (b)  Emissions studies

     Research was conducted to characterize organic  emissions  from motor
vehicles operated at reduced ambient temperatures.   The  results showed
that formaldehyde emissions did not increase in idling cars fueled by
gasoline or methanol.  It is hypothesized, however,  that further studies,
under actual operating conditions, will  show increased formaldehyde
levels as temperatures drop.  Such studies will  be conducted in 1987.

     5.  Scientific Support to Determine the Impact  of the Quality of
         Global and Microenvironments on Public Health and the Environment

         (a)  Indoor air activities

         The EPA initiated several changes in  its indoor air'research program
in 1986.  The ORD and the Office of Air and Radiation (OAR) are working
closely to develop a long-range plan for indoor air.   The OAR  established  a
new indoor air policy staff to assist in guiding  indoor  air research and
decision-making.  A review of EPA's plans  for  the indoor air research
program was conducted by the Science Advisory  Board  (SAB).  The SAB
encouraged EPA to proceed with a research  needs assessment, the results
of which will guide future research for indoor air.

     Work was begun on an extensive bibliography  of  the  world  literature
on indoor air and total human exposure, emphasizing  concentrations measured
in indoor microenvironments.  The bibliography will  be completed in 1987.
The EPA also developed the computerized Bibliographic Literature Information
System  (BLIS) to search and retrieve abstracts of the indoor air quality
literature rapidly using a personal computer.96

     Protocols were prepared for a chamber study  designed to replicate
and extend earlier findings regarding the neurobehavioral and  pulmonary
physiology effects of inhaling volatile organic compounds.  Additional
research on the neurobehavioral effects of these compounds was begun in
several areas.  The exposure portion of a  clinical study of children with
parents who smoke was completed, as were analyses of nicotine  in indoor
air, blood, and urine cotinine (a metabolite of nicotine), air and urine
mutagenicity, COHb, particulates, and organics.  A pilot field study was
initiated which examines the levels of nicotine in the children of smoking
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parents and evaluates indoor levels of nicotine and other pollutants in
the homes where the children live.   A second pilot field study was com-
pleted on the mutagenicity of emissions from several  in-home combustion
sources, including convective and radiant kerosene heaters, gas stoves,
fireplaces, and cigarettes.  The data are being analyzed and will  be
published within a year.

     Preliminary studies  of organic compound emissions from kerosene space
heaters were completed.   Measurements were made of products of incomplete
combustion, and bacterial mutagenesis bioassays were conducted on  emission
samples.  The results suggested that emissions of carcinogens may  be
significant for certain  heater types under specific operating conditions.
Laboratory studies of organic vapor emission rates from selected indoor
building materials and consumer products were conducted and reported in
1986.  Sources studied include floor adhesive, caulking compound,
particle board, acrylic  floor wax,  moth crystals, and paints.  Interlabo-
ratory comparisons of formaldehyde  emissions were conducted as part of a
long-term effort to standardize emission testing procedures.  Several
papers on testing procedures and results were presented and published.

     A prototype version  of a computerized data base on sources of indoor
air pollutants was developed and distributed for review by a small  group
of indoor air quality researchers and the regulatory office in 1986.  A
revised version will  be  distributed for general use in 1987.

         (b)  Radon activities

         Field testing for the purpose of developing and demonstrating
low-cost techniques for  reducing radon concentrations in homes was continued.
The techniques selected  for testing -in each home vary according to type
of house, foundation, local geology and meteorology,  and other factors.
Through 1986, 30 homes in eastern Pennsylvania and 10 homes in Clinton,.New
Jersey, have had radon reduction techniques installed.  Reductions in  most
homes ranged from 90 percent to over 99 percent.  Based largely on the
experience in eastern Pennsylvania, a brochure for homeowners and  a
technical manual for installers of  radon mitigation techniques were
issued in August 1986.97,98  These  will  be updated in 1987, using  the  results
of ongoing field projects in Pennsylvania, New Jersey, and New York.  A Radon
Mitigation Test Matrix was developed and reviewed by EPA's Science Advisory
Board.  Initial estimates show a need to perform mitigation studies on
about 600 existing houses and 100 new houses.  As a result, the Radon
Mitigation Demonstration  Program was expanded in 1987 to meet these
objectives within a reasonable timeframe.

         (c)  Stratospheric ozone

         In addition to  continued research regarding the potential  impact of
increased levels of solar IJV-B radiation on U.S. agriculture, silviculture,
and marine fisheries, work is ongoing on a regulatory impact analysis  for
possible domestic and international controls on CFC's and other potential ozone-
depleting trace gases.  These analyses will support later EPA regulatory deter-
minations.  Initiation of studies on control technology and strategies for
controlling stratospheric ozone depleting-substances resulted in identification
of sources for which additional studies need to be conducted.  National and

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international workshops were held on control  strategies for stratospheric
modification.  A workshop also was held specifically on nitrous  oxide (N20)
emissions from combustion.^  This worxshop helped to define analytical
approaches for measurement of N20 and examined the relative strength of
various emission source sectors.   The available data indicate that  stationary
combustion sources are the major  contributors of N20 emissions.

     6.  Radiation Monitoring and Quality Assurance to Federal,
         State, and Local Laboratories

         Each year, ORO provides  technical  assistance to the nepartment  of
Energy in the form of radiation safety monitoring, long-term hydrological
monitoring, a human surveillance  investigation program, and maintenance
of a radiation data base.  The ORD also provides radiochemical  analyses  of
environmental samples for Regions, States,  and contractor laboratories.
Support to both of these activities continued in 1986 with a stable
level of effort.100'10?

C.   ACID DEPOSITION RESEARCH ACTIVITIES

     1.  Acid Deposition - General

         Research on acid deposition i:; coordinated through the National  Acid
Precipitation Assessment Program  (NAPAP), which is administered  by  the Inter-
agency Task Force on Acid Precipitation.  The term "acid rain"  means the
atmospheric deposition of acidic  or acid-forming compounds in either dry or
wet form.  These compounds exist  in the atmosphere as gases or  aerosol parti-
cles containing sulfur oxides, nitrogen oxides, hydrogen chloride,  sulfuric
acid, nitric acid and certain sulfate and nitrate compounds.  The objective
of acid deposition research is to develop the necessary data to  fully
understand the sources and characteristics  of acid deposition,  the  extent
of damage or potential damage, and the corrective measures that  may be
used to diminish the problem.

     In 1986, acid deposition research produced scientific information on
the chemical status of a representative sample of lakes in the  eastern
United States, and developed a preliminary  1985 man-made emissions  data
base.  The program established a  cloud chemistry network to cover the major
high altitude forest system in the eastern  part of the nation.   A dry
deposition monitoring network (30 sites) was  begun, and significant progress
was made in determining the effects of acidic deposition on southern
conifer and spruce/fir forests.

     ?.  Long-term Deposition Monitoring Data (Both Wet and Hry) to
         Provide Trends Analyses, Evaluate  Atmospheric Models,  and  Determine
         Exposure in Effects Studies

         In 1986, the deposition  monitoring research program continued to
provide the deposition data on wet precipitation through the National
Trends Network (NTN).  The network, consisting of 150 stations,  operated
at full capacity.  A series of data reports covering the first  four
years of operation of the deposition were published.

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     Since dry deposition may account for a larger proportion of total
deposition than wet deposition, implementation of a dry deposition network
was begun in 1986 with a five-station dry deposition pilot network.  A
contract was awarded for installation of the first 30 sites of a more
extensive network and field evaluations of proposed concentration monitors
were conducted.
     3.
Activities to Improve the Scientific Understanding of Atmospheric
Processes
         Improvements are needed in both the scientific understanding,
and the field data bases on atmospheric transport, transformation, and
deposition of acidic substances in order to develop more scientifically
acceptable, yet simplified models, to meet assessment and policy needs.

     In 1986, the preliminary evaluation of the full Regional Acid Deposi-
tion Model (RAOM) using the Oxidation and Scavenging Characteristics of
April Rains (OSCAR) meteorology and wet chemical deposition data were
reported.104  yne gas-phase chemistry module was compared with both smog
chamber data and the more complex chemical mechanisms.  The RADM cloud
processes and aqueous phase chemistry module was subjectively evaluated
against limited field data and more complex models.  Recause of lack of
appropriate data, the dry deposition module was not evaluated.  Much
larger and extensive data bases are required to test the system thoroughly.
Several sensitivity tests were also conducted in which emissions in the
Ohio Valley were theoretically reduced by 50 percent and 90 percent and
resultant calculated deposition patterns were analyzed.

     A detailed operational plan and feasibility analysis for the intensive
field studies and the atmospheric model evaluation effort were completed.1^5
Oraft performance evaluation statements and data quality objectives were
provided for nine experimental tasks required for the operational and diag-
nostic model  evaluation field studies.  The report indicates that the
operational evaluation of RAOM is feasible and the diagnostic evaluation
of the model  is currently being ascertained.

     The Regional Lagrangian Model of Air Pollution (RELMAP) has been applied
and evaluated for the entire year of 1980 as part of the International Sul-
fur Deposition Model Evaluation (ISDME).  Assessments have been made of
the sensitivity of the predictions of sulfur dioxide, sulfates, and total
sulfur wet deposition to the process rates; i.e., the modeled rates at
which sulfur dioxide transforms to sulfates and sulfur dioxide and sulfates
wet/dry deposition occur.  The RELMAP sensitivity studies also address
single-layer versus multilayer model applications.

     4.  Activities to Improve the Scientific Understanding of the Aquatic
         Effects of Acid Deposition on Surface Waters, Watersheds, and
         Aquatic Biota

     Acid deposition is believed to be a major contributing factor to
chronic depressions of pH and possible episodic depressions in aquatic
systems.  Effects which may result include effects on fish and other


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aquatic organisms and drinking water quality.  The population-at-risk".
of surface waters and aquatic biota in the United States is only partially
known.  Improvements are needed in both the scientific understanding and
the field data bases which define the processes affecting (1) the
current status of surface waters and watersheds including episodes; (2)
the chemical  and biological  changes to those resources; and (3) the rate
of change resulting from current and altered loadings of acidic or neutra-
lizing substances.  These improvements will allow the development of more
scientifically acceptable, yet simplified relationships and models for
assessment and policy needs.

     The National Surface Water Survey (NSHS) addresses the current status of
resources.  Results of Phase I activity are nearing completion with the recent
publication of data and analysis of the Eastern Lake Survey106 and Stream
Survey (Pilot), and the imminent release of the report on the Western
Lake Survey.1(*'  The Stream Survey (Mid-Appalachian Region) report will be
released in 1987.

     The rate of change of systems is being investigated by the Direct/
Delayed Response Project.  Three different levels of modeling activities
will supply target loading predictions by region.  Verification of predic-
tion of the Direct/Delayed Response Project will be undertaken by field
and pilot level manipulations of watersheds as part of the Watershed
Manipulation  Project.  The research plan for this project was developed
and reviewed  in 1986 so that manipulations can begin within 1987.

     Long-term monitoring provides the ultimate verification of model
predictions by producing information on water quality trends, especially in
sensitive systems.  The Long-term Monitoring Project was evaluated and
redesigned based on the results of the Eastern Lakes Survey to maximize its
applicability to detecting changes in sensitive surface waters.

     5.  Activities to Improve the Scientific Understanding of the Terrestrial
         Effects of Acid Deposition on Forests, Soils, and Watersheds

         Various adverse changes in forest condition have been observed in
the United States since the early 1980's.  Apparently increased forest
mortality has been observed in high elevation stands of red spruce and
balsam fir.  Also there is some indication that annual increment growth
is reduced in these stands.   These observed symptoms are nonspecific and
could be caused by several different factors or combination of factors.
Acidic deposition and its associated pollutants have been implicated as
causal factors.

     A joint  F.PA/U.S. Forest Service research program, the Forest Response
Program (FRP), was established in 1985 to investigate (1) extent of damage
to forest ecosystems which might be caused by acid deposition, (?,} cause
and effect relationships, and (3) dose response relationships.  During 1985
and 1986 the FRP established the Spruce-Fir, Southern Commercial, Eastern
Hardwoods, and Western Conifer research cooperatives.  Also, the National
Vegetation Survey was implemented and a Synthesis and Integration Team
has been established.  All of these activities have produced detailed
research plans which have passed peer review.
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         (a)  Spruce-Fir Research Cooperative

         Following peer review in March 1986, a meeting with the Federal
Management Group was held and, as a result of that meeting and subsequent
reprogramming, 21 projects were funded in 1986.  These are aimed at
addressing the question of extent of forest damage and at investigating
most of the major hypotheses of cause and effect related to the impact of
atmospheric deposition on forests.

         (b)  Southern Commercial Forest Research Cooperative

         In 1986, three controlled exposure laboratory studies were
funded at Texas A&M University, Oak Ridge National Laboratory, and North
Carolina State University.  Controlled exposure-field research was conducted
in 1986 at Oak Ridge and at the nuke Forest Primary Research Site.  In
mid-March a request for proposals was issued with two objectives:  (1) to
study plant physiology in natural stands on the Duke Forest and stand
representation of the region, and (2) to study the feasibility of field
fumigation techniques.  Two projects have been identified for funding.
Four secondary research sites have been identified and will be established
in 1987.  Planning for the development of a central testing facility
began in 1986 on a site at the Forest Service greenhouse facility in
Macon, Georgia.

         (c)  Eastern Hardwood Research Cooperative

         The Eastern Hardwood Cooperative initiated three projects in
1986.  These concentrated mainly on the spatial extent and temporal
development of adverse changes in forest condition in eastern hardwood
species.  Also included are studies concerning the effects of atmospheric
deposition on physiological and nutritional  processes.

         (d)  Western Conifers Research Cooperative

         Seven projects were funded by the Western Conifers Cooperative
in 1986.  Similar to Eastern Hardwood, the thrust of this cooperative is
problem definition.  The concentration of effort in 1986 was on questions
of the extent of damage with a smaller effort addressing effects mechanisms.

         (e)  National Vegetation Survey

         Fourteen projects were undertaken by the National Vegetation
Survey in 1986, exploring the questions of the temporal  development and
spatial extent of changes in forest condition.  These include both analysis
of available data, field observations, and two studies along known deposition
gradients.
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         (f)  Synthesis and Integration

         A computerized data base system was developed to track the outputs
and the status of the Forest Response Drogram projects.   The data base will
be expanded to include key bibliographic information as  well as other
pertinent data.   Two research projects were initiated.  These deal  with
the assessment of physiological  characteristics  for use  in developing
models of whole-tree processes and with the evaluation and development of
statistical techniques for the analysis of dendrochronological  data.

     6. Activities to Improve the Scientific Understanding of the Effects
        of Acid  Deposition on Materials

        The materials effects research program is  directed toward
understanding the quantitative relationships between the various forms of
acidic deposition and the resulting damage rates to materials and identify-
ing the geographical extent of materials-at-risk.   As a  result of major
program and project reviews conducted with NAPAP,  the materials research
program was reconstructed in 1986.  A najor initiative was the development
of a research program to determine the effects of  acid deposition on
paint/substrate  systems.

     A preliminary physico-chemical model of acid  deposition on galvanized
steel was prepared.  This demonstrated the ability to predict damage  in the
field from information gathered in the laboratory.  Additional  laboratory and
field studies are being conducted to refine and  test the model.  Field studies
on other common  metals are in progress at five materials exposure sites.
Initial results  of the field study were published  that indicate the sensitivity
of metal surfaces to acid deposition changes over  time as a corrosion layer is
formed.  This has led to the development of a model of deterioration  based on
the formation of a carbonate layer as a rate-controlling step in deposition.

     7.  Provision of Additional Information to  Document the Reliability and
         Cost-Effectiveness of the Limestone Injection Multistage Burner
         (LIMB)  Control Technology to Reduce Sulfur Oxides and Nitrogen~0xides

         The EPA continues to develop LIMB technology that is designed to reduce
emissions of both sulfur oxides and nitrogen oxides, the two major acid
deposition precursors.  The LIMB emission reduction technology is designed
to be retrofitable to both large and small existing coal-fired boilers.

     In 1Q86, work continued on the development  of high  surface area sorbents
and sorbents treated with "promoters" to improve the sulfur capture ability
of the LIMB technology.  The design phase of the wall-fired, full-scale LIMB
demonstration was completed.  Also, EPA continued  the laboratory and  pilot-
scale research of the LIMB process to improve engineering knowledge of the
effects of operating parameters and systems variables associated with nitrogen
oxides control and sulfur dioxide capture.  In addition, EPA initiated a
competitive procurement for a tangentially-fired,  full-scale LIMB demonstration.
                                  111-14

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n.   REFERENCES

     1.  U.S. Environmental  Protection Agency.  (1986)  Air Quality Criteria
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     2.  U.S. Environmental  Protection Agency.  (1986)   Addendum to Air Quality
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     5.  McElroy, F., et al. "A Cryogenic Preconcentration - Direct  FID  (PDFID)
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     6.  Rhodes, R.C., et al. "Precision  and Accuracy  Assessments  for State
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     7.  Parr, B.F., et al.  "National  Performance Audit  Program:   Ambient  Air
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     8.  Rhodes, R.C., et al. "Precision  and Accuracy  Assessments  for State
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     9.  Gerrity, T.R., Weaver, R.A.,  Rerntsen,  J., House, D.E.  and  O'Neil,
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    11.  Roger, L.J., Kehrl, H., Hazucha, M., and Horstman, D.   Pulmonary
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12.  Horstman,  D.,  Roger,  I...).,  Kehrl,  H.,  and  Hazucha,  M.   Ai rway-s
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13.  Hawk, R.A., Schroeder,  S.R.,  Robinson,  G.,  Otto,  0., Mushak,  P.,
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15.  Laugh!in,  N.,  Hecox,  K., Boye;;, W.,  and Creason,  J.  Background
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16.  Molfese,  D.L., Laugh!in, N.K... Morse,  P.A., Linnville,  S.,  and
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18.  Adams, R.M.,  Agriculture, Forestry  and  Related Benefits  of Air Pollu-
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19.  Adams, R.M.,  S.A.  Hamilton  and B.A.  McCarl.  The  Benefits  of  Air
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20.  Amundson,  R.G., R.M.  Raba,  A.W. Schoettle  and P.B.  Reich.   Response
     of Soybean to  Low Concentrations of Ozone:  Ii.   Effects on Growth,
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21.  Cure, W.W., J.S. Sanders and  A.S.  Heagle.   Crop Yield  Response
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22.  Garcia, P., B.L. Dixon,  J.  Mjelde,  and  R.M. Adams.  Measuring the
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23.  Heagle, A.S.,  W.W. Heck, V.M.  Lesser, J.O.  Rawllngs, and F.L. Mowry.
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                              Ill-lfi

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24.  Heagle, A.S., V.M. Lesser, J.O. Rawlings, W.W. Heck, and R.B.
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25.  Kohut, R.J.  The National Crop Loss Assessment Network (NCLAN):  An
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26.  Kohut, R.J., R.G. Amundson and J.A. Laurence.  Evaluation of Growth
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27.  Kress, L.W., J.E. Miller, H.J. Smith and J.O. Rawlings.  Impact of
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28.  Lefohn, A.S., W.E. Hogsett and D.T. Tingey.  A Method for Developing
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29.  McCarl, B.A., D. Rrown, R.M. Adams and J. Pheasant.  Linking Farm
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     1986.

30.  Olszyk, D.M. and D.T. Tingey.  Joint Action of 03 and SO;? in Modifying
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31.  Reich, P.Ft., A.W. Schoettle, R.M. Raba and R.G. Amundson.  Response
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     and Whole Plant Net Photosynthesis and Leaf Chlorophyll Contents.
     Journal  of Environmental Ouality 15:31-36, 1986.

32.  Rodecap, K.D., and D.T. Tingey.  Ozone-induced Ethylene Release from
     Leaf Surfaces.  Plant Science 44:73-76, 1986.

33.  Taylor, G.E., Jr., D.T. Tingey and C.A. Gunderson.  Photosynthesis,
     Carbon Allocation, and Growth of Sulfur Dioxide Ecotypes of Geranium
     Carolinianum L.  Occologia 68:350-357, 1986.

34.  Temple, P.M.   Stomatal Conductance and Transpirational  Responses of
     Field-grown Cotton to Ozone.  Plant, Cell and Environment 9:315-321,
     1986.

35.  Temple, P.J., O.C. Taylor and L.F. Benoit.  Yield Response of Head
     Lettuce (Lactuca Sativa L.) to Ozone.  Environmental Experimental
     Botany 20:53-58, 1986.
                              111-17

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36.  Tingey, O.T.  The Impact of Ozone on Agriculture and Its Consequences.
     Acidification and Its Policy Implications.   T.   Schneider (ed.).
     Elsevier Science Publishers R.V., Amsterdam,   pp.   55-63, 1986.

37.  Weiss, R., D. Covert, and W. Wilson, "Evidence  for Volatilization of
     Light Scattering Aerosol Between 50°C and 220°C,"  Submitted for
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33.  Husar, R., D. Patterson, and W. Wilson,  "A Semi-Empirical Approach
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39.  Purdue, L., Status Report on Amendments  to 40 CFR  Parts 50, 53 With
     Respect to PMio, Environmental  Monitoring Systems  Laboratory, RTP, NC
     27711 (June 1986).  Available directly.

40.  Woods, M., et al, "The PMjQ Sampler Evaluation  Program:  January 1985
     to July 1986", Research Triangle Institute, Rox 12194, RTP, NC 27707
   N  (Report on EPA Contract 68-02-3992.)  Available directly.

41.  Streib, E.W., et al,  "A Summary of the 1985 EPA National Performance
     Audit Program on Source Measurements," Environmental Monitoring Systems
     Laboratory, RTP, NC 27711 (September 1986).  Available directly.

42.  Proceedings of the Sixth Symposium on the Transfer and Utilization of
     Particulate Control  Technology  EPA/600/9-85/031 A, S, C.  (Hecember
     1986)  Available directly.

43.  Operation and Maintenance Manual for Electrostatic Precipitators, EPA
     publication  EPA/625/1-86/017 (September 1986).

44.  Operation and Maintenance Manual for Fabric Filters.  EPA publication
     EPA/625/1-86/020 (June 1986).

45.  Lime/Limestone Flue Gas Hesi.il furizati on  Inspection and Performance
     Evaluation Manual, EPA/600/1-86/029 (September 1986).

46.  U.S. Environmental Protection Agency, Evaluation of a Detailed Reaction
     Mechanism:  Volumes I and II, EPA/600/3-86/031  a and b.  Available from
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47.  U.S. Environmental Protection Agency, EPA Regional Oxidant Model, ROM 1
     Evaluation for 2-4 August 1979, EPA/600/3-86/032.Available from NTIS,
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48.  U.S. Environmental Protection Agency, RELMAP:  A Regional Lagrangian
     Model (Version-2). EPA/600/8-86/013.  Available from NTIS, Springfield,
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49.  U.S. Environmental Protection Agency. User's Guide for PEM-2: Pollution
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     Springfield, VA. PR87-132098, December 1986.
                              111-18

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50.  U.S. Environmental Protection Agency, Evaluation of the PEM-2 Using
     the 1982 Philadelphia Aerosol Field Study Data Rase, EPA/600/3-86/016.
     Available from NTIS, Springfield, VA.PB86-167921, March 1986.

51.  U.S. Environmental Protection Agency, Urban Aerosol Modeling:  Incor-
     poration of an SO? Photochemical Oxidation Module in AROSOL, EPA/600/
     3-86/048. Available from NTIS, Springfield, VA. PB86-242856, August 1986.

52.  U.S. Environmental Protection Agency, MPOA-1:  A Meteorological
     Processor for Diffusion Analysis - User's Guide, EPA/600/8-86/011.
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53.  U.S. Environmental Protection Agency, Development of Adjustable
     Buoyancy Balloon Tracer of Atmospheric Motion:  Phase II Development
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54.  U.S. Environmental Protection Agency, A Workshop Report on the Complex
     Terrain Model Development Project (February 4-6, 1986), EPA/600/9-86/026.
     Available from NTIS, Springfield, VA.PB87-100681, September 1986.

55.  U.S. Environmental Protection Agency.  (1986).  Airborne Asbestos
     Health Assessment Update.  Research Triangle Park, NC:  Office of
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     Assessment Office:  EPA report EPA/600/8-84-003F.  Available from
     NTIS, Springfield, VA; PB-86-2428564/AS.

56.  U.S. Environmental Protection Agency.  (1986).  Health Assessment
     Document for Nickel.  Research Triangle Park, NC:  Office of Health
     and Environmental Assessment, Environmental Criteria and Assessment
     Office:  EPA report EPA/600/8-83-012FF.  Available from NTIS,
     Springfield, VA; PB-86-232212.

57.  U.S. Environmental Protection Agency.  (1986).  Health Assessment
     Document for Beryllium [External Review Draft!.  Research Triangle
     Park, NC:  Office of Health and Environmental Assessment, Environ-
     mental Criteria and Assessment Office:  EPA report EPA/600/8-
     84-026B.  Available from NTIS, Springfield, VA; PB-86-183944/AS.

58.  U.S. Environmental Protection Agency.  (1986).  Summary Review of
     the Health Effects Associated with Phenol.  Research Triangle Park,
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     Available from NTIS, Springfield, VA; PB-86-178076.

59.  U.S. Environmental Protection Agency.  (1986).  Summary Review of
     the Health Effects Associated with Ammonia [OAQPS Review Draft].
     Research Triangle Park, NC:  Office of Health and Environmental
     Assessment, Environmental Criteria and Assessment Office.
                              111-19

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60.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Chlorine and Hydrogen Chloride
     [OAOPS Review Draft"].   Research Triangle Park,  NC:   Office of Health
     and Environmental Assessment, Environmental  Criteria and Assessment
     Office.

61.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Methyl  Isocyanate and Toluene
     Di isocyanate [OAQPS Review Draft").  Research Triangle Park, NC:
     Office of Health and Environmental Assessment,  Environmental  Criteria
     and Assessment Office.

62.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Naphthalene  [OAQPS Review Draft!.
     Research Triangle Park, NC:  Office of Health and Environmental
     Assessment, Environmental  Criteria and Assessment Office.

63.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Propylene [OAOPS Review Draft!.
     Research Triangle Park, NC:  Office of Health and Environmental
     Assessment, Environmental  Criteria and Assessment Office.

64.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Propylene Oxide [OAQPS Review Draft!,
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     Assessment, Environmental  Criteria and Assessment Office.

65.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Styrene [OAOPS Review Draft!.
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     Assessment, Environmental  Criteria and Assessment Office.

66.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Xylene [OAOPS Review Draft!.
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     Assessment, Environmental  Criteria and Assessment Office.

67.  U.S. Environmental Protection Agency.   (1986).   Summary Review of
     the Health Effects Associated with Zinc and Zinc Oxide [OAQPS Review
     Draft!.  Research Triangle Park, NC:  Office of Health and Environ-
     mental Assessment, Environmental Criteria and Assessment Office.

68.  Lewis, Robert G., "Development of New Sampling  and Analysis Techniques
     for Hazardous Air Pollutants in Ambient and Indoor Air," EPA
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69.  Evans, Gary F.,  "Status Report on Sampling Conducted at Three TAMS
     Locations,"  EPA Environmental Monitoring Systems Laboratory, Research
     Triangle Park, NC, December 1936. Available directly.
                              111-20

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70.  Wallace, L. A., (1986).  "Personal Exposures, Indoor and Outdoor Air
     Concentrations, and Exhaled Breath Concentrations of Selected Volatile
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     Dakota, North Carolina, and California."  In press, Toxicological and
     Environ. Chem.

71.  Wallace, L.A.,  (1986).  "Cancer Risks from Organic Chemicals in the
     Homes,"  Paper Presented at APCA Specialty Conference on Risk
     Assessment, Chicago, April 14-16, 1986.

72.  Ott, Wayne R., "Total  Human Exposure:   An Emerging Science Focuses on
     Humans as Receptors of Environmental  Pollution," Environmental
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73.  Ott, Wayne R., Lance Wallace, David Mage, Gerald Akland, Robert Lewis,
     Harold Sauls, David Kleffman, Donna Kuroda, and Karen Morehouse,
     "The Environmental Protection Agency's Research Program on Total Human
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74.  Bushnell, P.J., and D.R. Peele, Concentration-dependent Conditioned
     Flavor Aversions Induced by Inhaled P-xylene.  Toxicologist 7:?5?, 1987,

75.  Rosen, M.B., K.M. Crofton and N. Chernoff, Postnatal Evaluation of
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76.  Hatch, G.E., R. Slade, A.G. Stead, and J.A. Graham, Species Compari-
     son of Acute Inhalation Toxicity of Ozone and Phosgene.  J. Tox.
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77.  Franch, S., and G.E. Hatch, Pulmonary  Biochemical Effects of Inhaled
     Phosgene in Rats.  J.  Tox. Environ. Health 19:413-423, 1986.

78.  Dyer, R.S., K.F. Jensen and W.K. Boyes,  Focal Lesions of Visual
     Cortex - Effects on Visual Evoked Potentials in Rats.  Experimental
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79.  O'Callaghan, J.P., Neurotypic and Gliotypic Proteins as Biochemical
     Indicators of Neurotoxicity.  In:  Neurotoxicology, and ed. M.R. Abou-
     Donia, Oxford University Press, 1987  (in press).

80.  Dyer, R.S., W.K. Boyes and R.E. Hetzler, Acute Sulfolane Exposure
     Produced Temperature-Independent and Dependent Changes in Visual Evoked
     Potentials.  Meurobehavioral Toxicology  and Teratology, 8:687-693, 1986.

81.  Rehnberg, G.L., ,J.F. Hein, S.D. Carter,  and J.W. Laskey, Age
     Dependent Changes in Gastrointestinal  Transport and Retention of
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     16:887-889.

82.  U.S. Environmental Protection Agency,  Toxic Chemicals in the Environ-
     ment:  A Program of Field Measurements,  EPA/600/3-86/047.Available
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                              111-21

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83.  U.S. Environmental  Protection Agency,  Mutagenic  Activities  of. Wood
     Smoke Photo-oxidation Products,  EPA/600/3-86/049.Available from
     NTIS, Springfield,  VA. PB-86-239837,  August  1986.

84.  Kleindienst, I.E.,  P.R. Shepson,  E.O.  Edney,  L.D.  Claxton,  and
     L.T. Cupitt, Wood Smoke:   Measurement  of  the  Mutagenic  Activities of
     Its Gas-and Particulate-Phase Photooxidation  Products.   Environ.  Sci.
     Technol. 20:493, 1986.

85.  Lewis, C.W., R.E. Baumgardner, L.D.  Claxton,  J.  Lewtas, and R.K.
     Stevens, The Contribution of Woodsmoke and Motor Vehicle Emissions  to
     Ambient Air Mutagenicity.  Submitted  to Nature.

86.  Ott, Wayne, Jacob Thomas, David  Mage,  and Lance  Wallace, "Validation
     of the Simulation of Human Activity  and Pollutant  Exposure  (SHAPE)  Model
     Using Paired Days from the Denver, Colorado,  Carbon Monoxide Field
     Study," Atmospheric Environment,  in  press, 1987.

87.  Johnson, Ted, Jim Capel,  and Luke Wijnberg,  "Selected Data  Analyses
     Relating to Studies of Personal  Carbon Monoxide  Exposure in Denver  and
     Washington, DC," Report Under EPA Contract No. 68-02-3496.  U.S.
     Environmental Protection  Agency,  Environmental Systems  Laboratory,
     Research Triangle Park, NC, February  1986.  Available directly.

88.  Wallace, Lance, Jacob Thomas, David  Mage, and Wayne Ott, "Comparison
     of Breath CO, CO Exposure, and Coburn  Model  Predictions in  the U.S.
     EPA Washington-Denver CO  Study,"  Atmospheric  Environment, in press,
     1987.

89.  Flachsbart, Peter G., Gregory A.  Mack, James  E.  Howes,  and  Charles  E.
     Rodes, "Carbon Monoxide Exposures of  Washington  Commuters," Journal of
     the Air Pollution Control Association, Volume 37,  No. 2, pp. 135-
     142, February 1987.

90.  Flachsbart, Peter G., "Prototypal Models  of  Commuter Exposure to  CO
     from Motor Vehicle Exhaust," Paper No. 85-39.6 Presented at the 78th
     Annual Meeting of the Air Polljtion  Control  Association, Detroit,
     Michigan, June 16-21, 1985.

91.  Flachsbart, Peter G., and Clayton Ah  Yo,  "Test of a Theoretical
     Commuter Exposure Model to Vehicle Exhaust in Traffic," Paper No. 86-
     79.4 Presented at the 78th Annual Meeting of  the Air Pollution
     Control Association, Minneapolis, Minnesota,  June 22-27, 1986.

92.  Flachsbart, Peter G., and Dennis  E.  Brown, "Merchant Exposure to  CO
     from Motor Vehicle Exhaust at Honolulu's  Ala  Moana Shopping Center,"
     Paper No. 85-85.3 Presented at the 78th Annual Meeting  of the Air
     Pollution Control Association, Detroit, Michigan,  June  16-21, 1985.

93.  Sheps, D.S., K.F. Adams,  G.M. Goldstein,  J.J. O'Neil, D. Horstman,
     G. Koch, and P.A. Bromberg.  Effect  of Low Levels  of Carboxy-
     hemoglobin on Cardiovascular Function  in  Patients  with  Ischenmc
     Heart Disease.  Arch. Environ. Health. March/April 1987.
                              111-22

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 94.   Adams,  K.F., 8.  Chattergee,  G.  Koch,  C.J.  Price,  G.  Goldstetn,
      J.  O'Meil,  and n.S.  Sheps,   Earlier Onset  of Ischemia  After Exposure
      to  Low  Level Carbon  Monoxide in Patients with Ischemic Heart Disease.
      Accepted for Presentation at American College of  Cardiology.  Spring
      1987.   Abstract.

 95.   Benignus, V.A.,  K.V. Muller, C.N.  Barton,  and J.D.  Prah,  Effect
      of  Low  Level Carbon  Monoxide on Compensatory Tracking  and Event
      Monitoring.  Neurobehav.  Toxicol.  Teratol.  (in press)  (May/June
      issue,  1987).

 96.   Shackelford, James M.,  and  Wayne R. Ott, "A Users Manual  for the
      Bibliographic  Literature  Information  System," U.S.  Environmental
      Protection  Agency, Office of Research and  Development, February 11,
      1987.

 97.   U.S. Environmental Protection Agency, "Radon Reduction Methods:  A
      Homeowner's Guide,"  EPA 625/6-86-005, July 1986.

 98.   U.S. Environmental Protection Agency, "Radon Reduction Techniques
      for Detached Houses:  Technical Guidance,"  EPA 625/5-86-019,
      August  1986.

 99.   U.S. Environmental Protection Agency, "Workshop on  Global Atmospheric
      Change  and  EPA Planning," EPA 600/9-86-016, July  1986.

100.   Stuart  C. Black,  et  al, "Off-Site Monitoring for  the Mighty Oak
      Muclear Test," EPA 600/4-86-030, July 1986.

101.   R.F. Grossman, et al, "Off-Site Monitoring Report:   Radiation
      Monitoring  Around U.S.  Nuclear Test Areas,  C.Y. 1985," EPA
      600/4-86-022,  April  1986.

102.   A.N. Jarvis, et  al,  "Annual  Report on the  Laboratory Radionuclide
      Intercomparison  Studies:   July 1,  1984-June 30, 1985,  October 1986.
      (Environmental Monitoring Systems  Laboratory, Las Vegas,  NV.)

103.   Report:  Siting  Selection for Dry Deposition Network,  December, 1985.

104.   Preliminary Evaluation  Studies with the Regional  Acid  Deposition Model
      (RADM), February, 1986.

105.   Regional Eulerian Model Field Study and Evaluation:  Proposed Manage-
      ment and Technical Approaches,  August, 1986.

106.   Characteristics  of Lakes  in  the Eastern United States, Volume I,  II,
      III; EPA 600/4-86/007 a,  b  and c;  June 1986.

107.   National Surface  Water  Survey:   National Stream Survey Phase I  -
      Pilot Survey;  EPA 600/4-86/026.
                              111-23

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         IV.  DEVELOPMENT OF NATIONAL AMBIENT AIR QUALITY STANDARDS


A.  DESCRIPTION OF ACTIVITIES

     The 1977 Clean Air Act Amendments require EPA regularly to review and,
if appropriate, to revise all of the national  ambient air quality standards
(NAAOS).  Reviews of the NAAOS for carbon monoxide and nitrogen dioxide were
completed in 1985; reviews of the remaining four NAAQS were in progress in
1986.

     On March 20, 1984, EPA proposed changes to the NAAOS for participate
matter (PM)1.  The EPA proposed to replace the current 24-hour and annual
primary (health-related) standards for total suspended particulate matter
(TSP) with standards that include only those particles less than 10 micro-
meters in diameter (PMio).  The EPA proposed to establish an annual  secondary
(welfare-related) TSP standard and to revoke the current 24-hour secondary
standard.  The EPA also solicited public comment on the option of making
the secondary standards equivalent in all respects to the proposed primary
standards.  The proposal was reviewed at a Clean Air Scientific Advisory
Committee (CASAC) meeting in December 1985 and CASAC recommended that
because of new data published since the combined PM/sulfur oxides criteria
document was prepared in 1981, EPA should prepare addenda to the criteria
document and the sulfur oxides and the PM staff papers.  The CASAC also
concluded that the available data do not support a TSP-based secondary
standard.  The CASAC reviewed the addenda in October 1986 and submitted
their final  written comments on the PM addenda in December.2.3  Final
promulgation of the PM standards was completed in 1987.

     Activities on the sulfur oxide NAAOS review in 1986 focused on refinements
to the exposure analysis for various 1-hour standard alternatives and the
preparation and CASAC review of addenda to the criteria document and the
staff paper (see preceding paragraph on PM).^  Revised or reaffirmed
sulfur oxide standards are scheduled to be proposed in 1987.

     In May 1986, CASAC reviewed a third draft of the criteria document revision
for lead and a second draft of the lead staff paper.  The CASAC completed their
review of the criteria document but had significant comments on the exposure
analysis portion of the staff paper.4  The CASAC will review a revised draft
of the staff paper in late 1987.

     In April 1986, CASAC reviewed revised drafts of the criteria document for
ozone and the ozone staff paper; CASAC completed their review of the criteria
document in October 1986.5  On the staff paper, issues were raised as to
whether a longer-term standard could or should be set to protect against
chronic health effects and effects on vegetation.
                                    IV-1

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B.  REFERENCES

    1.   49 FR 10408,  March  20,  1984.

    2.   "Second Addendum to Air Quality  Criteria  for  Participate Hatter
          and Sulfur  Oxides (1982):   Assessment of  Newly Available  Health
          Effects Information," EPA-600/8-86-020F,  December  1986.

    3.   "Review of the National Ambient  Air  Ouality Standards  for
          Participate Matter:   Assessment  of Scientific and  Technical
          Information,"  (Addendum  to  the 1982 OAQPS Staff  Paper),
          EPA-450/5-86-012, December  1986.

    4.   "Air Quality  Criteria  for  Lead," EPA-600/8-83-028  aF thru dF,
          October 1986.

    5.   "Air Quality  Criteria  for  Ozone  and  Other Photochemical Oxidants,"
          EPA-600/8-84-020  aF  thru eF, August 1986.
                                    IV-2

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             V.  ASSESSMENT AND CONTROL OF TOXIC AIR POLLUTANTS
A.  INTRODUCTION

     In 1985, EPA announced its strategy for the control  of both routine
and accidental  releases of toxic air pollutants.'-  The following sections
discuss the activities and progress made in 1986 to implement this strategy.

B.  ASSESSMENT AND REGULATORY DECISIONS

     In 1986, EPA continued to implement an active program to screen and
assess potentially toxic air pollutants for possible regulation under the
Clean Air Act or other environmental authorities.  As shown in Table V-l,
38 chemicals or emission mixtures were in various stages  of assessment at
the end of 1986.  Decisions not to pursue a regulatory program directed
specifically at phenol^ and certain nickel compounds^ were published in
1986.  Decisions on whether to regulate 10-12 additional  pollutants are
expected in 1987.

     In 1986, draft reports were completed for Tier 4 of  the National
Oioxin Study, a coordinated effort of various EPA programs to assess
the potential extent of contamination of the environment  with chlorinated
dioxin compounds.  Tier 4 focuses on combustion sources and deals primarily
with emissions to the atmosphere.  Summary reports were completed for re-
view by the Science Advisory Board (SAB) in August 1986.   Final  technical
reports reflecting SAR and other comments are to be completed and released
in early 1987.

C.  FEDERAL REGULATORY PROGRAM - STATIONARY SOURCES

    1.  National Emission Standards for Hazardous Air Pollutants (NESHAP)

        0  Arsenic - The NESHAP for glass manufacturing,  high arsenic
feedstock primary copper smelters, and low arsenic feedstock primary
copper smelters were promulgated in August 1986.4

        0  Benzene - Work continued in 1986 on a source assessment for benzene
emissions from gasoline marketing and on promulgation of  the NESHAP for coke
by-product plants.

        0  Asbestos - Work continued on revising the asbestos NESHAP during
1986.  The revision will cover the demolition and renovation provisions and
is scheduled for proposal in early 1987.

        0  Mercury - Work continued in 1986 on the revision of the mercury
NESHAP.  Promulgation is planned for early 1987.

        0  Vinyl chloride - Revisions to the vinyl  chloride NESHAP were
promulgated in September 1986.5
                                    V-l

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        0  Chromium - During 1986, NESHAP development  continued for chromium
emissions from electroplating and industrial  cooling towers.   Regulations
to prohibit the use of chromium in comfort cooling towers are being
considered under the authority of the Toxic Substances Control  Act.   Other
chromium sources still under consideration for NESHAP  include utility
boilers, industrial boilers, chromium chemical  manufacturing, steel  production,
refractory manufacturing, sewage sludge incinerators,  municipal  incinerators,
cement manufacturing, chromite ore refining,  and  ferrochromium production.

        0  Coke oven emissions - Standards development work  continued in 1986
for coke oven emissions sources in the iron and steel  industry.   A proposed
NESHAP for coke oven emissions is planned for 1987.

        °  Ethylene Oxide - Work commenced in 1986 on  a NESHAP for commercial
sterilization.

        0  Hazardous Organic NESHAP (HON) -  The  HON is an accelerated NESHAP
development effort that will cover eight organic  compounds (ethylene
oxide, methylene chloride, ethylene dichloride, perchloroethylene, trichloro-
ethylene, butadiene, chloroform, and carbon tetrachloride) for which an
intent to list under either section 11? of the Clean Air Act  or section 4(f)
of the Toxics Substance Control Act has been  published.   The  HON will  cover
13 source categories in the organic chemicals industry.   Publication of a
proposed rule is scheduled for 1987.

        0  Perchloroethylene - Work commenced in  1986  on a NESHAP for the
dry cleaning industry.

        0  Radionuclides - Standards were promulgated  for Nuclear Regulatory
Commission-Ticensed uranium mill tailings piles.^  Work continued on studying
emissions from phosphogypsum piles.  In 1986, EPA initiated  the development
of implementation procedures and guidance for the five radionuclide NESHAP.
The program consists of three elements:  (1)  completion of reserved sections
of the NESHAP rules, (2) development of guidance  and criteria for the Regions
and States, and (3) initial implementation assistance.  This  initial  program
will be fully in place in 1988.  Post-1988 efforts will  concentrate on a
national data base, assistance to the Regions and States, generic guidance
and oversight, training programs, and special studies.

        0  Solvent Degreasing - Work commenced in 1986 on a  NESHAP for solvent
degreasing equipment.  The NESHAP will address emissions of  perchloroethylene,
trichloroethylene, and methylene chloride.

        0  Cadmiurn - The sources of cadmium were  still under  review at the end
of 1986.  Decisions on any source categories  which warrant regulation will  be
made in 1987.  The categories under consideration are  primary cadmium
smelters, lead smelters, copper smelters, pigments manufacturing, stabilizers
manufacturing, and zinc and zinc oxides production.

        0  Municipal Waste Combustion (MWC) - A detailed risk and control
technology assessment was initiated in 1986.   Emissions of concern from
MWC are particulates (including chromium and  cadmium), acid  gases, and
organic compounds (including dioxin and polycyclic organic matter).   A
regulatory decision is scheduled in 1987.


                                    V-?

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     2.  Hazardous Haste Treatment, Storage, and Disposal  Facilities (TSDF)

         In November 1984, the Resource Conservation and Recovery Act (RCRA)
was reauthorized.  Section 3004(n) of the reauthorization states that not
later than 30 months after the date of enactment (i.e., May 1987) the
Administrator shall promulgate such regulations for the monitoring and
control of air emissions at hazardous waste TSDF's  as may be necessary to
protect human health and the environment.  Air emission sources of concern
include surface impoundments, landfills, land treatment units, waste
piles, wastewater treatment systems, pretreatment units, and transfer,
storage and handling operations.   The number of TSOF facilities is currently
estimated at between 2,000 - 3,000.

     Preliminary assessments of the industry show that TSDF's may pose
significant health and environmental risks to the air.  Emissions of volatile
organic compounds (VOC's), which  lead to ozone formation, may be as high as
10 percent of the total  nationwide VOC emissions.  In addition, cancer
incidence from toxic compounds may be as high as 240 cases per year.  There
is a great deal of uncertainty in these estimates,  and a better understanding
will be gained over the course of the regulatory development process.

     Current plans call  for development of TSDF regulations in three
phases:

     0  The first group of standards addresses sources for which EPA can
develop standards relatively quickly because similar sources have already
been regulated under the Clean Air Act.  These standards address air
emission vent and fugitive emissions from some of the treatment devices
that will be used to meet the RCRA land disposal restrictions.  The
standards were proposed in early  1987.

     0  The second group of standards, which addresses the bulk of the
TSOF sources, is scheduled for proposal in early 1988 and final action in
1989.

     0  The third group of regulations will  cover certain subsets of the
seven TSOF source categories for  which EPA will  likely be unable to develop
rules during the second round.  These include dewatering devices (belt
presses, filter presses, and centrifuges) and waste fixation in the
pretreatment source category and  operations associated with containers
(filling, emptying, cleaning, etc.).  Less data exist on these sources to
quantify the extent of the problem or to address the solution.  In addition,
the land ban rules being developed under other sections of RCRA will
require treatment before disposal of hazardous wastes.  This program is
expected to cause major shifts in the TSOF industry and could cause new
sources of air pollution which need to be addressed as the industry develops
new treatment technologies.  Work on the third group of TSDF's is expected
to begin in 1988.
                                    V-3

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D.  MOBILE SOURCES

    (Mobile source activities related to air toxics  are described in
Chapter IX of this report.)


E.  SPECIFIC POINT SOURCES

     In 1986, EPA continued to pursue that portion of its overall  strategy
to control emissions of air toxics that  provides  State and local  air pollution
control agencies with funding and technical  support  to evaluate specific
point sources.  Sources that are candidates  for this program include those
that have been identified through the federal  toxic  air pollutant assessment
program but which do not warrant Federal  regulations.   This program was
initiated in 1984 with a pilot program involving  the chemical  acrylonitrile,
a carcinogen for which the public health risks are limited due to the
existence of only a few industrial facilities. Evaluations involving all
26 acrylonitrile facilities in 14 States have  been completed and  the reports
accepted by the appropriate State and "'oca!  agencies.   Using the  completed
reports, State and local agencies have released the  information to the
public and are making regulatory decisions and recommendations.  The State
of Ohio, with 6 facilities, has concluded their acrylonitrile  effort with  a
commitment to develop technology-based regulations covering process emissions,
leaks, and emissions from storage tanks.   Facilities in Iowa,  West Virginia,
South Carolina, and Virginia have initiated  controls through consent decrees,
adherence to State ambient guidelines, and permit modifications.   For certain
acrylonitrile facilities in Connecticut, Delaware, Alabama, Texas, and
California, the States concluded after 'evaluation that existing controls
were either adequate or represented state-of-the-art control technology.

     In 1986, State evaluations for 9 additional  source types  were funded
and evaluations at the State/local level  were  begun.  In 1987, it is antici-
pated that as many as 20 additional evaluations will begin.

F.  ASSESSING URBAN RISK

     In 1986, EPA initiated planning and activities  to encourage  States to
undertake new efforts toward assessing the scope  and seriousness  of current
exposures to the mixtures of air toxic compounds  which are believed common-
place in large metropolitan areas.  A program  has been developed  which pro-
vides funds under section 105 of the Clean Air Act and technical  assistance
to States to encourage them to undertake such  assessment efforts  in at
least 30 targeted areas with populations over  one million people.   Although
the program does not mandate a particular assessment approach, it is expected
that States' efforts will, result in ambient  monitoring, source/emission
inventory analyses, and risk assessment  activities to define whether the
perceived problems indeed exist and, if  so,  how serious they are.   A sub-
stantial effort in 1986 was the communication  of  needs to State and local
agencies and other similar outreach activities.

     In addition, activity on several Integrated  Environmental Management
Projects (IEMP) was continued.  These projects, though multimedia in nature,
focus a major portion of study on the air toxics  aspects of the urban


                                    V-4

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environment.  In 1986, efforts were completed for the Philadelphia,
Pennsylvania, and Santa Clara, California, areas as a result of work in
previous years.  In the Kanawha Valley, West Virginia, and Baltimore,
Maryland, initial studies were concluded.  Additional major monitoring efforts
will be conducted in Raltimore in 1987.  A new IEMP study was also initiated
in Denver, Colorado.

     The EPA also distributed guidance in 1986 on procedures for estimating
emissions for selected potentially toxic pollutants.   Final reports were
distributed for ethylene oxide^ and chlorobenzenes.^   Reports are now in
preparation for polycyclic organics, polychlorinated  biphenyls, and benzene.
Issuance of these additional  documents is scheduled for 1987, pending the
completion of peer review for each document.  New work is also planned on
improving emission factors for various area sources of toxic air pollutants.

G.  BUILDING STATE AND LOCAL AIR TOXICS CONTROL PROGRAMS

     The EPA has established a goal  to have quality programs in every
State and major local agency which are adequate to carry out certain
roles envisioned for them within the national air toxics strategy.  These
roles are:  (1) accepting delegation and enforcing national emission
standards for hazardous air pollutants (NESHAP), (2)  identifying, evaluat-
ing, and mitigating (as necessary) point sources of local concern not
addressed by NESHAP, (3) addressing urban problems arising from complex
multisource, multipollutant interactions, and (4) enhancing program capabilities
to conduct applicable activities in the first three areas and to facilitate
implementation of other programs specific to the needs of each State or
community.  During 1986, considerable progress was made toward meeting this
goal.  The progress was in part due to the establishment of a new program
to enhance State and local program development.  This program uses available
grant funds to promote multiyear planning on the part of State and local
agencies for building their air toxics capabilities and programs.  Within a
multiyear development plan, State and local agencies  were encouraged to
conduct the above-mentioned activities.  In response, EPA received 63
multiyear development plans from 48 States and IS local agencies.  The
major emphasis of the current State and local activities within these plans
is now on development of toxics emissions inventories and modifying existing
new source review permit systems to incorporate consideration of air toxic
concerns.  The amount of emphasis on additional technical skill development
to handle risk assessment and toxic consideration varies greatly among the
agencies and is usually proportional to the size of the agency and their
perceived toxics problem.

     In order to help the current and future implementation of scheduled
multiyear development plan activities, EPA expanded its program of technical
support in 1986.  The EPA developed several technical documents on topics
relevant to air toxics including guidance on ambient  monitoring, modeling,
emission inventory development, control technology evaluation, and control
program development.  Trial operation of a control technology center was
also begun which will offer States and locals a variety of case-by-case
technical assistance in making their control decisions.  Finally, a series
                                    V-5

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of national workshops were designed to assist  State  and  local  agencies  in
the basic aspects of program development  and  implementation.   These  workshops
will be given by EPA in conjunction with  the  State and Territorial Air
Pollution Program Administrators (STAPPA) and  the Association  of Local  Air
Pollution Control Officials (ALAPCO)  ii 1987.

     In 1986, the National Air Toxics Information Clearinghouse  (NATICH)
was significantly expanded through the implementation of a  computerized
data base.  Established in 1983, the Clearinghouse provides  a  tangible
method of improving communication among EPA and  State and local  agencies.
The Clearinghouse is funded by EPA and is a cooperative  effort among EPA,
STAPPA, and AlAPCO.  The goal of the Clearinghouse is to disseminate in-
formation about activities under way to solve  toxic  air  pollutant  problems
and to reduce duplication of effort.   'Some of  the kinds  of  information
included in the Clearinghouse are:  (1) regulatory program  activities,
including acceptable ambient limits and emergency response  program
development; (2) source permit information, such as  types and  quantities
of pollutants permitted and required control  technology;  (3) source  test
and ambient monitoring methods in use; (4) emission  inventory  information;
and (5) selected EPA risk analysis results.  With the implementation of
the NATICH data base, the Clearinghouse users  (e.g., State,  local  air
quality management agencies, EPA, industry, environmental groups,  and the
public) may now have direct access to the Clearinghouse  information  through
interactive programs.  In addition to direct  computer access to  the  data
base, hardcopy reports of the data base information  are  printed  and  distributed
annually.  Other publications on air toxics distributed  in  1986  included
four issues of the Clearinghouse newsletter,  a bibliography  of reports  and
Federal Register notices related to air toxics,q a listing  of  EPA  and
National Institute for Occupational Safety and Health ongoing  research  and
regulatory development projects,^ a report on methods for  selecting and
prioritizing toxic air pollutants of concern,H  a report that  details how  the
Clearinghouse can be used to address air  toxics  questions^  and  a  set of
reports summarizing data submitted by State and  local agencies.13  Plans for
1987 include continuation af the prior publications, publication of  a
special report on carcinogenic risk assessment procedures,  plus  implementa-
tion of a new set of computer programs to enable authorized  State  and local
agencies to directly enter and edit their data in the Clearinghouse  files.

H.  REFERENCES

    1.  U.S. Environmental Protection Agency,  "A Strategy to Reduce  Risks
        to Public Health From Air Toxics," .June  1985.

    2.  51 FR 22854, June 23, 1986.

    3.  51 FR 34135, September 25, 1986.

    4.  51 FR 27956, August 4, 1986.

    5.  51 FR 34904, September 30, 1986.

    6.  51 FR 34056, September 24, 1986.
                                    V-6

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 7.  Locating and Estimating Emissions from Sources of Ethylene Oxide,
     EPA 450/4-84-0071,  September 1986.

 8.  Locating and Estimating Emissions from Sources of Chlorobenzenes,
     EPA 450/4-84-007m,  September 1986.

 9.  Bibliography of Selected Reports and Federal  Register Notices
     Related to Air toxics, EPA-450/5-86-008,  July 1986.

10.  Ongoing Research and Development Projects, EPA-450/5-86-007,
     June 1986.

11.  Methods for Pollutant Selection and Prioritization,  EPA-450/5-86-010,
     July 1986.

1?.  NATICH:  How The Clearinghouse Can Help To Answer Your Air Toxics
     Questions, EPA-450/5-86-009, July 1986.

13.  NATICH Data Base Report on State and Local Agency Air Toxics
     Activities, 1986,  Vol. I, EPA-450/5-86-011a;  Vol. II, EPA-450/5-86-011b,
     July 1986.
                                 V-7

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              VI.  STATUS OF AIR DUALITY MANAGEMENT PROGRAMS


A.   DEVELOPMENT OF POLICY AND REGULATIONS

     Emissions Trading

     The EPA published its final Emissions Trading Policy Statement (the
"bubble policy") in December 1986.!  The policy sets forth detailed
criteria under which companies may substitute or "trade" extra emission
reductions from sources less costly to control for emissions from sources
that have higher control costs.  The final policy authorizes the use of
environmentally sound bubbles  (emission trades between existing sources)
in all areas of the country, as an important component of the nation's
effort to achieve and maintain air quality standards.

     The EPA issued the first  emissions trading document in 1979, to
address the issue of achieving air quality standards, maintaining economic
growth, and to establish an incentive for innovative pollution control
programs.  A 198? Interim Policy enlarged that early effort, integrated
the bubble with other incentive-based approaches, and streamlined bubble
approval processes.  As a result, the EPA had, by the end of 1986,
approved or proposed for approval over 50 bubbles as individual State
•implementation plan (SIP) revisions.  In total, over 250 existing source
bubbles were approved, proposed, or under development in ?9 States.

     The final Emissions Trading Policy Statement establishes a framework
that will guide development of future bubbles.  The policy addresses and
clarifies previously issued guidance on emissions trading.  In order to
ensure the environmental integrity of future emissions trades, the policy
also significantly tightens requirements applicable to certain trading
actions, particularly existing source bubbles in primary nonattainment
areas which require but lack demonstrations of attainment.
      Implementation Policy and Guidance for Revised Particulate Matter
      Standards

      As discussed in Chapter IV of this report, EPA proposed revised
health-based (primary) national ambient air quality standards for
particulate matter in 1984 that would apply to a size range of particles
nominally 10 micrometers and smaller in diameter (PM^n), and an annual
total suspended particulate (TSP) secondary (welfare-based) standard.  The
focus of the proposed primary standards on a new particle size range has
necessitated preparation of regulations, policy, and technical  guidance
so that SIP's for PM^Q can be developed.
                                   vi-1

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     On April 2, 1985, EPA published a Federal  Register notice which
solicited public comments on (1)  regulatory amendments  which  would accom-
modate the focus of the primary standards on the PMjQ  size range and which
would integrate PM^o requirements into new source review programs, (2)  a
policy for SIP development for primary and secondary standards and the
EPA's interpretation of the Clean Air Act which results in that policy,
and (3) technical guidance specific to dealing  with  the PM^Q  size range.
The proposed regulatory amendments would focus  the health-protecting air
pollution episode programs on P^m rather than  TSP and  would  describe the
requirements for a dual new source review system, i.e., new sources would be
reviewed for both PM^Q and TSP emissions.  The  SIP development policy would
establish timeframes for SIP development for the primary and  secondary
standards.  The PM^ technical  guidance addresses development of emission
inventories, dispersion and receptor modeling,  ambient  monitoring and data
reporting, using ambient TSP data where PMjQ data are  not available, and
monitoring for prevention of significant deterioration  purposes.

     Seventy-two comment letters  were received, mostly  from industry.  The
issue most frequently commented upon was the legal interpretation of the
Clean Air Act as it would apply to primary PMjQ standards.  Other items
addressed frequently were the need for ambient  PM^Q  data before SIP
development, the fugitive dust policy, the construction ban,  continuation
of stringent nonattainment area offset requirements  for particulate
matter, and the need for two different sets of  prevention of  significant
deterioration (PSD) increments for particulate  matter  (i.e.,  TSP and
increments).

     Public comments have been summarized and issues identified for
resolution.  At the end of 1986,  EPA was in the process of resolving
the issues raised and developing  regulations to implement the revised
standards.

     Ozone Nonattainment Policy

     In 1985, EPA began reviewing the problem of continuing nonattainment
of the ozone air quality standard in almost all urban  areas despite past
efforts by States and EPA to reduce precursor emissions.  The Clean Air Act
deadline for attaining the ozone  standard is the end of 1987; however,
about 60 metropolitan areas were  projected to not likely attain the
standard by then.  In 1986, EPA continued to analyze the post-1987 non-
attainment problem and to identify and evaluate alternative approaches  to
solving the problem.  A number of regulatory areas were examined in early
1986 for potential emission reductions which could result from improvements
to the existing program and from  new control initiatives.  Ouring 1986
EPA examined a number of possible control measures in  detail  and discussed
the features of a national ozone  policy with State and  local  air agencies,
environmental and industrial organizations, and Congressional staff.
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     The EPA also continued to examine the overall  options for responding
to the nonattainment problem in light of the Clean  Air Act's lack of
specific direction in this area.  Although the Clean Air Act did not
address post-1987 nonattainment directly, EPA wanted to follow a course
that had as solid a legal foundation as possible, while at the same time
continuing an effective dialogue with Congress that could result in
legislative actions if needed.  To fully understand the range of optional
approaches that EPA might choose or be required to  follow, EPA began
investigation in late 1986 of an option under which EPA would disapprove
inadequate SIP's and develop and implement Federal  implementation plans
(HP's).  The EPA expects to use the results of the FTP analysis, the
examination of alternative control  measures, and the continuing dialogue
with State and local air agencies and officials, environmental and industrial
organizations, and Congressional committees and staff in the development
of a national ozone policy.  This policy will be proposed in 1987.

Visibility Protection

     Section 169A of the Clean Air Act establishes  as a national goal
"the prevention of any future, and the remedying of any existing, impair-
ment of visibility in mandatory Class I Federal areas which impairment
results from manmade air pollution."  On December 2, 1980, EPA promulgated
regulations implementing this section.3  All States which contained
mandatory Class I Federal areas were to develop and submit SIP revisions to
EPA which implemented these regulations.

     On December 20, 1982, a number of plaintiffs filed suit in the
United States District Court for the Northern District of California
seeking to compel EPA to promulgate State plans for visibility protection
undwr section 110(c) of the Clean Air Act for those States which had not
submitted such plans.  During 1983, EPA and the plaintiffs negotiated and
signed a settlement agreement which was accepted by the court on April
20, 1984.  The settlement agreement calls for a two-part implementation
of the 1980 rules.  New source review requirements  and a visibility
monitoring strategy were proposed for the 34 deficient States in
October 198fi.  In a series of actions started on July 12, 1985, and
finishing in 1986, EPA promulgated FIP's or approved State-submitted
implementation plans to deal with visibility monitoring and new source
review.

     On September 9, 1986, the Court approved a revision to the settlement
agreement.  Under that revised agreement, EPA can delay proposing portions
of the implementation plans dealing with existing impairment until August
1988.  However, the remaining portions of the plans must be proposed by
February 1987.

     Tall Stacks and Other Dispersion Techniques

     In July 1985, EPA adopted revisions to regulations originally
promulgated in 1982 which prohibit reliance by stationary sources on
stack heights in excess of "good engineering practice" or on any other
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dispersion techniques in lieu of emission controls.4  In accordance with
the Clean Air Act, States were given 9 months to review their rules and
source emission limitations and to revise their SIP's and resuhmit them
to EPA as necessary.  During 1986, EPA received SIP revisions from the
States in response to the stack height regulations.  These revisions were
being processed by EPA at the end of 1986.

     Several interested parties filed for judicial  review of the revised
stack height regulations and, in addition,  several  of those parties also
filed petitions for reconsideration of those regulations.  Some of the
petitions which dealt with a specific source were denied in April  1986.^
Since the other petitions dealt with tne basic -legal  foundations for the
regulations, EPA is deferring responding to them until  judicial review of
the revised regulations is completed.

     Federal Enforcement of Visible Emissions

     In August 1986, EPA proposed a new, modified visible emission test
method for evaluating compliance with certain types of SIP opacity standards
where the State has not specified a test method in  the SIP.fi  The  existing
method for Federal enforcement of SIP opacity limits  in such cases is
Test Method Number 9 of 40 CFR 60.  If adopted, this  revised procedure
would provide EPA with an expanded array of specific  visible emissions
testing procedures for various types of SIP opacity emission limitations
and would allow EPA to better enforce SIP provisions.  At the end  of
1986, EPA was reviewing the comments submitted in response to the  proposal.

     Restructuring SIP Preparation Regulations

     In November 1986, EPA published final  changes  to the SIP preparation
regulations of 40 CFR 51.?  The rulemaking  deleted  obsolete provisions and
rewrote the regulations in a new, shorter,  and better-organized format.
States using the revised regulations to prepare SIP's will  find them more
current and easier to follow than the old regulations.   The new fornat
also has a flexible structure into which future requirements can be more
easily incorporated.

B.   PREVENTION OF SIGNIFICANT DETERIORATION AND NONATTAINMENT NEW
     SOURCE REVIEW ACTIVITIES

     The EPA made significant progress in 1986 in carrying out its
responsibilities under the Clean Air Act regarding  the preconstruction
review of new and modified stationary sources.  Major 1986 activities
are described below.

     PSD Program Transfer

     The EPA continues to emphasize the importance of high quality transfers
of PSO and new source review programs.  In  addition to the strong  legal
and resource reasons for implementation by  State and local  authorities
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rather than EPA, the EPA believes that the critical growth decisions
associated with the preconstruction review process should be made at the
State and local level.  The permitting process, once transferred, forms
the key for minimizing source-specific. SIP revisions in the future.  In
lQ8fi, EPA continued its progress in transferring implementation of the
PSD program to State and local agencies.  The majority of PSD permits are
now issued by these agencies.  Although several transfers are presently
being held up by litigation and resulting policy clarification, progress
was made nevertheless.  As of the end of 198fi, 44 State and local agencies
had either full delegation of the PSO program or a PSD SIP, and 8 more
had partial responsibility for the PSD program.

     Chemical Manufacturers Association v. EPA

     As previously reported, the EPA's PSD and nonattainment new source
review regulations have been challenged by a variety of entities.  These
challenges were consolidated as Chemical Manufacturers Association v. EPA
(CMA), n.C. dr. No. 79-111?.  On February 22, 1982, EPA entered into a
litigation settlement with the industry petitioners in which it agreed to
propose certain regulatory changes.  An important part of the settlement
agreement was satisfied by EPA's Federal Register proposal of August 1983.^
That proposal addressed the topics of fugitive emissions in new source
review applicability determinations, Federal enforceability of various
emissions reductions, "buffer zones" around Class I areas, review of
secondary emissions, and offset credit for past source shutdowns.  At
the end of 1985, EPA had prepared final  action on a significant portion
of the settlement.  These documents underwent internal EPA review
during 1986.   Publication is planned for 1987.

     An important related matter of controversy has been the definition
of "source" for the purposes of nonattainment new source review.  The
Clean Air Act is not clear in this area.  In 1980, EPA promulgated a dual
source definition that minimized the opportunity for modifications to
sources to avoid review in nonattainment areas.^  This was challenged by
industry in the CMA suit, but was not of primary concern in the settlement
because EPA had replaced it with a "plantwide" definition in its rulemaking
of October 14, 1981.ir)  The Natural Resources Defense Council  (NRnc) claimed
that the plantwide definition is inconsistent with the Clean Air Act and, on
August 17, 1982, the D.C. Circuit Court  of Appeals ruled in their favor.
Roth EPA and industry representatives appealed this ruling, and on June
?5, 1984, the Supreme Court decided in favor of EPA and the industry
litigants.  The EPA is presently developing a policy which will aid the
Regions in processing proposed SIP's converting to a plantwide definition.
Resolution of the definition of source should significantly accelerate
the processing of revisions to the nonattainment portions of SIP's.

     In an August 7, 1980, promulgation, EPA listed 30 source categories
for which fugitive emissions would be included in PSD applicability
determinations.^  Surface mining operations were not among these.  The
Sierra Club sued EPA on this point and on August ?fi, 1983, the n.C.
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Circuit Court of Appeals remanded this  matter to  the EPA for explanation
of its position.  In October 1984, EPA  published  final  action on  this
issue, reaffirming its current requirements  for the inclusion of  fugitive
emissions in calculating whether a source is "major" for purposes of  new
source review.^  The EPA further proposed to extend the requirements  for
inclusion of fugitive emissions to surface coal mining  operations.^
According to the rulenaking criteria  established  by EPA, the proposed
listing of surface coal  mines is only a presumption which can be  overcome
if the rulemaking record reveals that the costs associated with listing
are unreasonable relative to the corresponding benefits.  A regulatory
impact analysis has been prepared on  that proposal  and  was made available
for public comment in early 1986.  Resolution of  this issue is expected
in 1987.

C.  IMPLEMENTATION OVERVIEW AND ASSISTANCE

     National Air Audit  System

     The National Air Audit System (NAAS) was developed in 1983 as a
joint effort by EPA, the State and Territorial  Air  Pollution Program
Administrators (STAPPA), and the Association of Local Air Pollution
Control Officials (ALAPCO).  The primary goals  of the NAAS are to identify
any obstacles that are preventing State and  local air pollution control
agencies  from implementing effective  air quality  management programs  and
to provide EPA with quantitative information for  use in defining  more
effective and meaningful national programs.   The  five air quality
management areas of motor vehicle inspection maintenance, air quality
planning and SIP activities, new source review, compliance assurance,  and
air monitoring are included in the NAAS.  The NAAS  started operating  on a
2-year cycle in 1986 and all State agencies  will  be audited in the 1986-1987
cycle.  A national report covering the  results of these audits will be
prepared at the end of 1987.  EPA-specific deficiencies identified in
the audits are being corrected through  agreements between the EPA Regional
Offices and the audited  agencies.

     State Implementation Plans for Lead

     In July 1982, the NROC filed suit  to require EPA to approve, or
disapprove and promulgate, lead SIP's for States  that did not submit
adequate SIP's.  The EPA negotiated a settlement  with the NRDC giving
States and EPA additional time for completing the SIP's.  During  the  time
provided for in the settlement agreement, the EPA and the States  completed
rulemaking for 29 of the 36 outstanding lead plans.  Twenty rulemakings
were completed prior to  the NRDC suit.   On August 30, 1986, the NRDC
filed a motion with the  n.C. District Court  to force the EPA to a revised
schedule for completion  of actions on lead SIP's  for four States.  At  the
end of 1986, EPA was working with the NRDC and the  Court to establish  a
revised schedule for completing rulemaking on all seven remaining plans.
A new schedule was provided to the court in  1987.
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     During 1986, the EPA approved three lead SIP's:   Alabama (except for
Jefferson County), 13 Northern Marianas Islands (except for new source review)
and New Jersey (except for three sources).1^  In  addition, EPA proposed
approval  of the lead SIP for Jefferson County, Alabama.^

     Acid Deposition Implementation Issues

     In 1984, EPA initiated an effort to explore  with the States the
potential issues that could arise in implementing possible acid deposition
control programs that might be required.  Accomplishment of this effort
was planned in three phases--identifying key implementation issues  and
major options for dealing with them, evaluating various options using
both "in-the-field" and "in-house" approaches, and preparing preliminary
or prototype guidance on the issues.  Major progress  was made in 1984 on
the first phase as EPA, in coordination with State and local air agencies,
produced an initial listing and description of over 200 implementation
issues.

     In 1985, the focus shifted to analyzing the  issues and evaluating
the options for dealing with them, particularly through "in-the-field"
studies.   These studies, called State Acid  Rain (STAR) projects, were to
be conducted by individual States although  the results could have broad
applicability to other States that might be involved  in a possible  acid
rain control program.  The projects were eligible for S3 million in
section 105 funds that Congress had appropriated  for  this effort.

     In application for this funding, State and local agencies submitted
53 proposals, and EPA, after consulting with STAPPA/ALAPCO, selected 31
projects  for an initial round of funding.  The EPA later reviewed the range
of issues covered by the projects and identified  six  additional STAR
projects  for funding.  In all, the section  105 special appropriation was
able to fund 37 of the 59 project proposals.  The projects were generally
scheduled to be completed within a 1- to 2-year time  period.  Thirty-
seven States were involved in the effort directly and special  procedures
were established to allow other States to participate in the review and
evaluation of the projects.  A national STAR workshop was held in November
1985 for EPA and the States to discuss and  review the progress of the
STAR projects thus far.

     In 1986, work on the STAR projects continued, and EPA began reviewing
and synthesizing available results from the projects.  The EPA has  also
been able to use the preliminary findings and experiences of the STAR
projects  in evaluating proposed acid rain control  legislation, particularly
in regard to implementation schedules and requirements.  A second national
STAR workshop, held in October 1986, provided States  the opportunity to
present their initial findings and discuss  implementation requirements of
hypothetical acid rain legislation.
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    Volatile Organic Compound  RACT Clearinghouse

     In conformance with the Clean Air Act,  sources  of volatile organic
compounds (VOC's) for which a control  technique guideline (CTG) has'been
issued by EPA (as well  as non-CTG sources with  a potential  to emit inn
tons of VOC per year or greater)  are required to install  reasonably
available control technology (RACT).  This requirement is applicable in
areas that have requested an extension until  December 31, 1987, to demon-
strate attainment of the ozone standard and  in  areas for  which EPA requires
a SIP revision for failure to attain the ozone  standard by December 31,
1982.  RACT for these sources must be determined on  a case-by-case basis.
RACT is the lowest emission limit that a particular  source is capable of
meeting by the application of control  technology that is  reasonably
available considering technological and economic feasibility.

     The purpose of the VOC RACT  Clearinghouse  is to provide  a means by
which State and local air pollution control  agencies can  exchange technical
information, minimize duplication of effort  and resources, and provide
guidance regarding VOC controls for various  industrial operations and
other sources.  The VOC RACT Clearinghouse is a cooperative effort with
STAPPA/ALAPCO and EPA.

     The VOC RACT Clearinghouse output takes  several forms, including a
VOC RACT Clearinghouse Newsletter.  During 1986, three newsletters were
issued.  Other outputs included a VOC HACT Clearinghouse  Newsletter
subject index and an update to the index of  article  titles.

     Status of Nonattainment Areas

     The following table lists by pollutant  those areas of the country
that were designated as nonattainment 'For the national ambient air quality
standards as of the end of 1986.   Note that  totals are not shown since the
same area may be nonattainment for more than  one pollutant.  A significant
portion of the carbon monoxide and ozone nonattainment areas  shown below
are areas which received an attainment date  extension under the Clean Air
Act to December 31, 1987.

      Pollutant               Number of Nonattainment Areas*

Carbon Monoxide                          152
Nitrogen Dioxide                           4
Ozone                                    358
Sulfur Dioxide                            58
Total Suspended Particulates             284
  Areas listed are either counties or portions of counties.
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n.  AIR POLLUTION TRAINING

     In 1986, EPA continued to provide technical  training in the abatement
and control  of air pollution.   This training included  short  course presenta-
tions (3 to 5 days in length), self-study courses,  technical assistance to
others who conduct training, and the support of. traineeships and fellowships
for graduate air pollution training.

     During 1986, EPA conducted 30 short courses  in 20 different subject
areas for a total of 852 students.  These courses were presented in locations
across the U.S. by seven universities designated  as area training centers.
Technical assistance was provided to States and EPA Regional Offices for
conducting 7.1 additional courses reaching a total of 656 students.

     In support of the delegation of more air quality  management
responsibilities to the States, EPA continued emphasis on self-study courses
as a means of providing training to more air pollution personnel.   During
1986, 1128 students applied for the 30 self-study courses presently available.

     As an additional  means of developing qualified personnel,  EPA supported
17 graduate traineeships/fellowships to employees of State and  local  air
pollution control agencies.  These awards are for both part-time and full-
time graduate study in the field of air pollution control.

E.   REFERENCES

     1.  51 FR 43814, December 4, 1986

     2.  50 FR 13130, April 2, 1985

     3.  45 FR 80084, December 2, 1980

     4.  50 FR 27892, July 8,  1985

     5.  51 FR 15885, April 29, 1986

     6.  51 FR 31076, August 29, 1986

     7.  51 FR 40656, November 7, 1986

     8.  48 FR 38742, August 25, 1983

     9.  45 FR 52676, August 7, 1980

    10.  46 FR 50766, October  14, 1981

    11.  49 FR 43202, October  25, 1984

    12.  49 FR 43211, October  26, 1984

    13.  51 FR 25366, July 14, 1986

    14.  51  FR 40798, November 10, 1986

    15.  51  FR 42565, November 25, 1986

    16.  51  FR 25715, July 16, 1986
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               VII.  CONTROL OF STATIONARY SOURCE EMISSIONS
A.   NEW SOURCE PERFORMANCE STANDARDS (NSPS)

     Section 111 of the Clean Air Act provides authority for EPA to regulate
new stationary sources of air pollution from source categories which cause,
or contribute significantly to, air pollution which may reasonably be
anticipated to endanger public health or welfare.   During 1986, NSPS were
promulgated under this section for emissions  of participate matter and
nitrogen oxides from the industrial  boiler source  category.1  The existing NSPS
for basic oxygen process furnaces, asphalt concrete plants, and kraft
pulp mills were revised.2»3»4  Standards were proposed for calciners and
dryers, plastic business machines, magnetic tape,  and for sulfur dioxide
emissions from industrial boilers.5,6,7,8  A revision to the existing
NSPS was proposed for sewage sludge incineration.*5

R.  BEST AVAILABLE CONTROL TECHNOLOGY/LOWEST ACHIEVABLE EMISSION RATE
    (BACT/LAER) CLEARINGHOUSE

     New or modified facilities that are to be constructed in areas of the
country that are currently attaining the national  ambient air quality
standards are required by the Clean Air Act to install BACT.  In those
areas of the country that have not yet achieved compliance with the air
quality standards, new or modified facilities are  required to meet the
LAER for that particular type of source.  Both BACT and LAER requirements
are determined on a case-by-case basis.  Often an  air pollution control
agency will need to establish BACT or LAER requirements for a source type
that is completely new to them or for which they have had only minimal
experience.  In these cases, the permitting agency may not be knowledgeable
of the more recent advances in control technology  for such sources and it
is extremely helpful if the agency can refer  to BACT or LAER determinations
made by other control agencies.

     The EPA established the RACT/LAER Clearinghouse several years ago in
order to assist State and local air pollution control  agencies by promoting
the sharing of air pollution control technology information.  The primary
output of the Clearinghouse is an annual report of information about BACT/
LAER determinations made by the various control  agencies.  The report
published in 1986 contains over 1120 BACT/LAER determinations.10 The report
is available in hard copy or through an automated  system.  The automated data
base can be accessed by both the public and private sectors.

C.  REFERENCES

    1.  51 FR 42768, November 25, 1986.

    2.  51 FR 150, January 2, 1986.

    3.  51 FR 3298, January 24, 1986.
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4.  51 FR 18538, May ?0, 1986.

5.  51 FR 15438, April  23, 1986.

6.  51 FR 854, January  8, 1986.

7.  51 FR 2996, January 22, 1986.

8.  51 FR 22384, June 19, 1986.

9.  51 FR 13424, April  18, 1986.

in. "BACT/LAER Clearinghouse -  A  Compilation  of  Control  Technology  Determinations,
    First Supplement to 1985 Edition."   May 1986.
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                   VIII.  STATIONARY SOURCE COMPLIANCE

A.   GENERAL

     The goal of the Clean Air Act is to protect public health and
welfare and to enhance the quality of the nation's  air.  The stationary
source compliance program is designed to assure compliance with air
emission standards by stationary sources of air pollution, including
such major facilities as power plants, steel mills, smelters, and
refineries.  In addition to ensuring compliance with emission
limitations contained in State implementation plans (SIPs), EPA and
delegated States are responsible for ensuring that  sources comply with
new source performance standards (NSPS) and national emission standards
for hazardous air pollutants (NESHAP).

     The EPA closely monitors the compliance status of about 32,000
stationary sources of air pollution.  Approximately 28,000 of these
sources are Class A SIP sources,* about 3,000 are NSPS sources, and
about 1,000 are NESHAP sources.  At the end of 1986, as has been the
case since the late 1970's, the compliance rates were high as shown in
the table below:
        Compliance Status of Federally Tracked Stationary Sources

                     In       In Violation,     In Violation,    Status
  Source Type    Compliance  Meeting Schedule    No Schedule    Unknown

  Class A SIP       92.5%          2.1%             4.1%         1.2%
  NSPS              91.0%          1.9%             4.9%         2.2%
  NESHAP            86.9%          3.2%             6.2%    .     3.2%

     The compliance status of stationary sources is determined and
tracked principally by the States.   The States (and EPA) have  the
authority to enter and inspect stationary sources in order to  obtain
information for determining compliance status or preparing possible
enforcement actions or for other purposes.   In 1986, the States
conducted 28,463 inspections and source tests of Class A SIP,  NSPS, and
NESHAP sources.

     The EPA overviews the States'  compliance monitoring activities and
supplements their enforcement efforts to resolve violations of air quality
regulations.  In 1986, EPA conducted 2,353  inspections and source tests
of Class A SIP, NSPS, and NESHAP sources.
*A Class A SIP source is a stationary source which,  while operating at
design capacity, has actual  or potential  uncontrolled  emissions  equal
to or greater than 100 tons per year of any regulated  air pollutant.

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    The Clean Air Act provides a variety of administrative enforcement
mechanisms for dealing with both special situations  and relatively
easily corrected violations.  During 1986, EPA issued immediate
compliance orders under section 113(a)  of the Clean  Air Act to 117
sources and issued or approved delayed  compliance orders under section
113(d) for 11 sources.

    Section 120 of the Clean Air Act i<; an administrative remedy designed
to recoup the economic benefit which may come from violating air pollution
control regulations.  Eleven section 120 cases were  initiated in
    The EPA is also authorized to file civil  and  criminal  actions  in
Federal District Court to compel  a source to  comply with applicable
requirements, to pay penalties, or both.   There were 71 Federal  civil
actions filed in 1986 against stationary  sources  for violations  of the
Clean Air Act.  As of January 1987, a total of 12?. such actions  were
pending with the U.S. District Courts.  During 1986, two corporations
were convicted of criminal  violations of  the  Clean Air Act.   In  one case
a $24,000 criminal fine was imposed for violations of the asbestos
handling requirements.  The other case represented the first  conviction
for violations of a SIP, and resulted in  a $10,000 fine against  a  corpora-
tion operating a refuse incinerator without a certification.   In addition,
two cases of alleged illegal asbestos handling operations were referred
to the Department of Justice for  criminal  prosecution during  1986.

    A major focus of the stationary source compliance program is the
effort to return to compliance those sources  considered to be "significant
violators."  The universe of sources cohered  by this program  includes
those that are in violation of NESHAP or  NSPS regulations, and non-
compliant Class A SIP sources which contribute significantly  to  non-
attainment.  For FY 1986 (the period starting October 1, 1985 and" ending
September 30, 1986), EPA identified 647 significant violators pending  at
the beginning of the fiscal year.  By the end of  the fiscal year,  511  had
been addressed.  Of these,  244 were returned  to compliance,  121  were
placed on an acceptable compliance schedule,  and  146 had an enforcement
action pending.  In addition, 489 significant violators were  newly-identified
dun'ng FY 1986 and, of these, 144 were addressed  by the end of the fiscal
year.

     In 1984, EPA issued guidance on the  "timely  and appropriate"  EPA/
State enforcement response  for significant air violators.   On April 11,
1986, this guidance was reissued  to include NESHAP violators.  The guidance
provides timelines for action, addresses  EPA  issuance of notices of
violation (particularly when the  primary  agency does not take action),
and discusses when penalties must be obtained.  In 1986, for  the second
consecutive year, EPA evaluated the implementation of the "timely  and
appropriate" guidance.  The evaluation showed that all Regions have
systems in place to monitor the timeliness of enforcement actions  after
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findings of noncompliance.  Also, Regions are doing a better job in
issuing Federal  notices of violation within timeframes set by the guidance;
improvement in this area is still expected, however.

     The "timely and appropriate" guidance also requires assessment of
penalties under certain circumstances.  Evaluation revealed that in 1986
penalties were generally collected by the States and  EPA where the guidance
requires.  Finally, all EPA Regional Offices continued to feel that the
guidance has had a positive effect on the compliance  and enforcement
programs.  Both States and Regions want the guidance  to remain basically
unchanged for the near future.

    An area of intensive effort for the last 3 years  is the regulation of
sources of volatile organic compounds.  These sources are major contribu-
tors to the ozone nonattainment problem and some emit compounds which are
highly toxic in nature.  In response to requirements  contained in the
1977 Clean Air Act Amendments, many States adopted regulations requiring
compliance of such sources on or before the end of 1982.  Carrying out
these regulations has led to a large growth in the number of significant
violators.

    In 1986, the stationary source compliance program continued its
major initiative to ensure that demolition and renovation sites are in
compliance with asbestos NESHAP regulations.  The demolition and renovation
of old buildings, often in highly populated urban areas, can be a major
source of asbestos exposure.  Because of the large number of demolition
sites, a strong State and EPA effort is necessary to  the success of the
program.  The program addresses training, inspection  techniques, compliance
tracking, enforcement mechanisms, and other aspects essential  for ensuring
compliance.

    During 1986, EPA and the States received 26,993 asbestos demolition
or renovation notifications, conducted 15,060 asbestos inspections, and
found 2,179 violations.  The EPA issued 454 notices of violation or
deficiency, issued 59 administrative actions, and initiated 33 civil
actions for violations of asbestos demolition and renovation regulations.
Delegated States also conducted a high level of asbestos enforcement
actions during 1986.  The States issued 535 notices of violation or
deficiency, issued 124 administrative orders, and initiated 26 civil
actions.

     On July 11, 1984, EPA issued a vinyl chloride NESHAP enforcement
strategy which facilitates the development of civil complaints against
violators of vinyl chloride regulations.  The EPA filed one new civil
action during 1986 for violations of the vinyl chloride standards.   At
the end of 1986, 14 enforcement actions for violation of these standards
were in litigation.
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     In the decade of the 1970's, the stationary source compliance program
focused on ensuring that major sources of particulates  and  sulfur dioxide
achieved initial compliance with the Clean Air Act regulations,  generally
by either installing required control  equipment or by  switching  to cleaner
fuels.   The more recent focus of attention is  concerned with the continuous
compliance of particulate and sulfur dioxide sources (while continuing
work to ensure initial  compliance for sources  of volatile organic compounds)
The current continuous  compliance strategy, initiated  in 1984,  builds
upon use of on-site inspections as a major compliance  monitoring method.
It outlines a number of areas, such as unannounced inspections,  better
targeting of sources, and improved inspection  techniques to produce
inspections more useful for determining the compliance  status of sources
during day-to-day operation.  The strategy also calls  for an increased
use of continuous emission monitoring system (CEMS)  data, supported by an
EPA initiative to enhance CEMS usage.   Ouring  FY 1986  and FY 1987, in
support of this strategy, EPA has required agency tracking  and  reporting
of CEMS usage for NSPS  sources required to install  CEMS.  Also  in 198fi,
EPA issued guidance on  using CEMS data to assess compliance, target
inspections, and support enforcement.

     The EPA has been conducting pilot programs to improve  implementation
of the continuous compliance strategy.  A 2-year (1984-1985) pilot in
Virginia on methods to  improve the effectiveness and efficiency  of the
inspection process found that specialized training can  improve  inspection
quality and save resources, different levels of inspection  are  appropriate
if combined with a targeting strategy, and inspection  results should be
used as part of the inspection planning process.  Another pilot, conducted
primarily in Missouri,  evaluated the effectiveness of  a CEMS program as a
component of a multifaceted compliance monitoring effort and found it to
be a useful tool for targeting inspections.  Finally,  in 1986,  EPA continued
pilot programs in Michigan and Colorado to develop more sophisticated
methods for targeting compliance monitoring inspections.


R.   LITIGATION

     The following are  examples of significant enforcement  actions which
were concluded in 1986.

     1.  Significant Judicial Decisions

         How Chemical Co. v. United States, 106 S. Ct.  1819 (1986)

     In this case, the  Supreme Court construed the Clean Air Act as
conferring broad inspection powers on EPA.  All  nine Justices agreed that
EPA could hire a commercial photographer to fly over a  plant owned by the
now Chemical Company and take pictures.  They  ruled  that regulatory
authority generally carries with it the ability to employ all useful
modes of investigation.  Even though the statutory section  dealing with
inspections did not mention aerial photography, the Court found  that EPA
needed no explicit authorization to use methods of observation  commonly
available to the public at large.  On fourth amendment  issues,  the Court
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divided five to four with the majority holding that the overflights did
not require a warrant.   The majority believed that trade secrets law was
irrelevant to defining the scope of fourth amendment protection.  Despite
the dissenters' concerns about commercial  privacy interests, the majority
relied on the lack of physical entry to uphold the search.

         United States v. Geppert Bros., Inc., 638 F.  Supp.  996 (1986)

     Regulations controlling the release of asbestos from demolition
activities apply to the "owner or operator" of a demolition  or renovation
operation.  In this case, the court held that the building owner is
liable for violations, along with the contractor who actually did the
demolition work.  Relying on a published response to comments during the
rulemaking as well as the text of the regulation, the  court  concluded
that the building owner is the owner of the "source" from which pollution
is emitted.  Moreover, the court found that a demolition contract with
salvage rights did not transfer ownership of the building to the contractor.
The court noted that imposing the obligation on both parties was important
to further the regulatory purpose of insuring that buildings are demolished
in a way that minimizes release of asbestos dust.

     2.   Significant Administrative Decision

          In the Matter of International Harvester Company,
          Docket No. CAA-120-V84-1

     On December 19, 1986, the presiding Administrative Law Judge (AD)
ruled in favor of EPA with respect to liability in this action, brought
under section 120 of the Clean Air Act.  The EPA's Notice of Noncompliance
alleged that International Harvester exceeded Ohio SIP limitations governing
volatile organic compound emissions at its Springfield truck assembly
plant.  In his decision, the judge rejected the company's allegations
that service of the notice was defective,  that the pertinent SIP provision
does not regulate paint booths lacking bake ovens, that certain of its
painting operations were exempt from regulation under  the SIP provision's
"refinishing" exemption, and that the provision in issue does not regulate
the company's nonmetallic painting operations.

     3.   Significant Settlements

          United States v. Jefferson Smurfit Corporation, et al.,
          Civil No. C-184-1617 (S.D. Ohio)

     On March 25, 1986, a consent decree was entered resolving this
action, which alleged violations by the defendant of Ohio SIP pro-
visions regulating volatile organic compound emissions.  The basic terms
of settlement were the defendant's agreements to bring its offending
operations into compliance by March 31, 1987, by installation of pollution
control equipment, and to pay a civil  penalty of $120,000.  The injunctive
relief and civil penalty obtained are significant in the context of volatile
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organic compound enforcement actions against sources  which assert--
unreasonably, in EPA's view—that they can  comply by  use of reformulated
coatings not yet developed.  This decree is clear evidence that EPA can
insist on installation of controls and that the court may levy  substantial
fines when air pollution regulations are violated.

          U.S. v. Phelps Dodge Corp., C.A.  No.  CIV  86-424
          TUC WDB (P. Az.)

     On October 20, 1986, the U.S. district Court for Arizona entered a
consent decree resolving Clean Air Act violations at  Phelps Dodge
Corporation's Douglas Reduction Works copper smelter  in  Douglas,  Arizona.
The smelter achieved compliance with the Clean  Air  Act and the  Arizona
sulfur dioxide and particulate matter SIP limits by permanently ceasing
smelting operations on January 15, 1987.  In addition, Phelps Dodge was
fined $400,000 in civil  penalties, and was  required to meet stringent
interim emissions curtailment requirements.  The State of Arizona and the
Environmental Defense Fund  joined the settlement as plaintiff-intervenors.

     4.   Enforcement Initiatives

          Asbestos Multicase Initiative

     On January 16, 1986, the Department of Justice,  on  behalf  of EPA,
filed eleven cases nationwide for violations of the asbestos NESHAP
in the course of demolitions and renovations.   The  initiative was designed
to heighten public awareness of the dangers of  asbestos  exposure  due to
demolitions and renovations, and EPA's regulations  applicable to  these
activities.  The initiative received considerable attention from  the news
media, including coverage on two network television and  two network radio
news shows.  Four of these  cases have been  settled  so far for civil
penalties ranging from $10,000 to $32,000.

          I..A. Basin VOC Initiative

     On June 30, 1986, EPA  filed eight civil cases  under the Clean Air Act
against metal parts manufacturing and coating facilities located  in the
Los Angeles area, to enforce California SIP emissions limits for  volatile
organic compounds.  Six  of  the eight cases  were settled  in December 1986,
with expeditious compliance schedules and civil penalties in the  $17,000
to $50,000 range.  The remaining two cases  are  expected  to be settled in
1987.

C.   COMPLIANCE AND ENFORCEMENT GUIDANCE

     On June 11, 1986, EPA  issued its final inspection frequency  guidance
for stationary sources of air pollution.  For the past 2 years  the
guidance has been modified  in response to both  State  and EPA Regional
concerns about the need  for added flexibility,  national  consistency and
quality.  The guidance also freezes any additional  changes while  it is
being implemented.
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     Other important guidance issued in 1986 includes  guidance on  granting
compliance date extensions for individual  volatile organic  compounds
sources in ozone nonattainment areas (issued August 7, 1986),  guidance on
reasonable installation timeframes for sources  proposing use of low-solvent
technology as a means to comply with volatile organic  compound emission
regulations (also issued August 7, 1986),  a  revised "timely and appropriate"
policy expanding the coverage to include NESHAP sources (issued April  11,
1986), guidance on what constitutes a Federal  reportable violation (issued
April 11, 1986), guidance to assist in the implementation and  enforcement
of the arsenic NESHAP for glass manufacturing (issued  October  1, 1986),
final enforcement guidance advocating increased use of continuous  emission
monitoring system data for direct Federal  enforcement  of stationary
source air pollution requirements (issued  April 22, 1986),  two policies
to provide guidance on enforcing regulations for controlling emissions of
volatile organic compounds which are precursors to ozone (issued January 17,
1986), and a revised civil penalty policy  for cases involving  the  vinyl
chloride NESHAP (issued April 18, 1986).

0.   COMPLIANCE RY FEDERAL FACILITIES

     During 1986, Class A SIP, NSPS, and NESHAP Federal facilities
demonstrated a good record of compliance with applicable air pollution
regulations.  As of the end of 1986, 313 (88 percent)  of the 334 operating
Federal facilities are in compliance, 12 are meeting schedules that will
bring them into compliance, 25 are in violation and not yet on an  acceptable
schedule, and 4 are of unknown compliance  status.

E.   LIST OF VIOLATING FACILITIES

     The List of Violating Facilities, established by  section  306  of  the
Clean Air Act, is designed to prevent the  Federal  government from  doing
business with facilities which have violated selected  sections of  the
Clean Air Act.

     Four facilities were placed on this list in 1986:

     0  The R.F. Goodrich Company's Louisville, Kentucky, facility was
placed on the list on February 10  1986, for violations of  40  C.F.R.
section 61.64(a)(2) (reactor opening losses) and section 61.64(e)(1)(ii)
(emissions from sources following strippers).

     0  The Waterbury House Wrecking Company,  in Waterbury, Connecticut,
and the Old Pin Shop in Oakville, Connecticut,  were both placed on the
list as a result of their criminal convictions  on  December  19, 1985,  for
violations of section 113(c)(l) of the Clean Air Act (failure  to properly
remove asbestos prior to demolition of a building).
     o
        Robert E.  Oerecktor of Rhode Island,  Inc.'s  Middletown,  Rhode  Island
facility was placed on the list as  a result  of  its criminal  conviction
on December 29, 1986, under section 113(c)(l) of the Clean  Air Act  for
violations of NESHAP work  practice  standards  while removing asbestos.
(Note that Derecktor also  was placed on  the  list for violations  of  section
309(c) of the Clean Water  Act.)
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     Under the regulations issued to implement EPA's listing authority,
a facility may correct the violation which caused it to be listed and
petition EPA's Assistant Administrator for Enforcement and Compliance
Monitoring to be removed from the List,.   On February 10, 1986,  the Assistant
Administrator determined that Sierra Transit Mix, Inc.'s Las Vegas, New
Mexico facility had corrected the conditions which caused it to be listed
and removed Sierra Transit from the list.  Two of the above facilities
currently on the list have submitted petitions requesting removal.  The EPA
is currently investigating the validity  of each claim.
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                 IX.   CONTROL OF MOBILE SOURCE EMISSIONS
A.   INTRODUCTION

     Control  of motor vehicle emissions has been a Federal  responsibility
since 1968.   The requirements of the Clean Air Act relating to mobile
sources have been subsequently refined several times,  most  recently in
1977.  The Clean Air Act Amendments of 1977 established an  ambitious
regulatory program which addressed remaining problems  in the motor vehicle
emissions control program and bolstered efforts to attain and maintain
the national  ambient air quality standards for carbon  monoxide and ozone.
Below are listed some of the mobile source provisions  of the 1977 Clean
Air Act Amendments.

          A schedule was established for implementation of  stringent
          emissions standards for automobiles — 0.41  grams per mile (gpm)
          for hydrocarbons, 3.4 gpm for carbon monoxide and 1.0 gpm for
          oxides of nitrogen.  The table below displays the level  of
          control mandated by the standards.

                               New Light-Duty Vehicle  Emissions
          Hydrocarbons
          Carbon Monoxide
          Oxides of Nitrogen
                               Without
                               Control

                                8.8 gpm
                               87.0 gpm
                                3.6 gpm
1977 CAA
Standard

 .41 gpm
3.40 gpm
1.00 gpm
Percent
Reduction

  95%
  96%
  72%
          Similarly, the amendments tightened standards for emissions of
          the above-mentioned pollutants  from heavy-duty engines.

          Standards for the control of particulate emissions from  heavy-duty
          diesel  engines were mandated.

          Areas not meeting carbon monoxide and ozone ambient air  quality
          standards were required to implement motor  vehicle inspection
          and maintenance (I/M)  programs.
     Since the enactment of the 1977 amendments,  EPA
progress toward achieving the Clean Air Act's goals.
                                                     has made steady
                                                      The EPA has made
a number of modifications to its motor vehicle emissions standards in
order to assure that they attain the goal  of cleaner air as effectively
and efficiently as possible.  In 1986, EPA made significant progress in
the implementation of this program.
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R.   OZONE CONTROL

     With the increased focus on reducing ozone levels,  EPA has continued
work on several  areas directly aimed at this goal.   One  of the key actions
is controlling excess evaporative emissions through  regulation of in-use
gasoline volatility.  The EPA held a hearing and workshop  in 1986 on
gasoline volatility.  Rased on industry comments, certain  technical  and
cost models for the refining industry have been revised.   A proposed rule
for gasoline volatility was published in 1987.

     A second action aimed at ozone reduction is control of refueling
emissions.  The EPA expanded its efforts in 1986 with an analysis of
whether refueling emission controls are necessary, whether the control
should be at the gas station or on the vehicle, and  development of a
refueling test procedure based on industry comments  and  a  computer model
of the refueling system.  A proposed rule was published  in 1987, along  with
the gasoline volatility proposal.

     A third ozone-related action is the tightening  of light-duty truck
exhaust hydrocarbon standards.  An advance notice of proposed rulemaking
was released in 1986.1  Continued rulemaking activity is expected.

C.   AIR TOXICS

     Three initiatives on air toxics were related to vehicle fuels:

          In 1986 EPA prepared a study of costs and  benefits in reducing
          the amount of sulfur in diesel fuel.   Reductions of sulfur and
          the aromatic content of diesel fuel may lead to  significant
          reductions in potentially toxic particulate emissions from
          diesel engines.  A comprehensive study on  diesel  fuel sulfur
          was published in 1987.  A decision on whether  to pursue
          rulemaking is expected by the end of 1987.

          Development of testing protocols was begun to  determine the
          health effects of fuels and fuel additives.  An  inventory of
          current commercially available fuel additive materials was
          developed and an Advance Notice of Proposed Rulemaking was
          prepared for publication in 1987.

          An internal workshop on formaldehyde exposure  was held in 1986
          and work was recommended for 1987.

     The EPA also has responsibility for enforcing section 211 of the Clean
Air Act relating to the regulation of fuels and fuel additives.  One of
the regulations under this section is aimed at protecting  the catalytic
converters on 1975 and later model year cars.  The EPA has established  a
nationwide fuels enforcement program to ensure that  affected retail
outlets comply with these regulations.  This program includes sampling  of
the fuel at retail outlets by EPA field inspectors and private or State
inspectors under EPA contract in order to measure the fuel's lead content.
The EPA conducted 15,000 inspections under this program  during 1986.
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     The EPA's promulgated rule which reduced allowable lead in gasoline
from 1.1 grams per leaded gallon to fl.l gram per leaded gallon took
effect January 1, 1986.?  As a result of this rulemaking, actual  lead used
was reduced considerably in 1986.  About in billion grams of lead will  have
been used; this is a 95 percent reduction from the ?00 billion grams used
in the mid-1960's.  During 1986, in accordance with the Food Security Act
of 1985, EPA conducted tests of farm machinery run on leaded, no-lead,
low-lead, and additive gasoline.  This testing sought to assess the
degree of premature wear in engines built to use leaded gasoline  exclusively.
In 1987, EPA will report to Congress findings concerning this study.

    The EPA Mobile Source program has substantially shifted its enforcement
efforts into this area during 1986 by instituting a fuel refiner/importer
audit program to assure compliance with the lead phasedown regulations.
Investigation and enforcement in this area involve extensive analysis of
the production, importing and blending of gasoline, gasoline blendstocks,
and lead additives.  The EPA also tracks the banking and withdrawal of  lead
rights and related documents and records.  The EPA has successfully conducted
a number of these audit-type investigations.  Computer programs have been
developed to help analyze the refiners' records and a strategy is presently
being developed to integrate and evaluate all sources of data available
(i.e., EPA, Department of Energy, Customs Service, etc.) to identify
potential refiners and importers for investigation.  The EPA conducted
investigations of 11 refiner facilities during 1986 and several Notices
of Violation have been issued with proposed penalties of over $40 million.
Future cases of this type will  likely involve significant violations with
proposed penalties in the multi-million dollar range.

    In anticipation of the elimination of lead fn in-use fuel, EPA proposed
elimination of lead in test fuel.3  This will mean that manufacturers of
engines not requiring catalysts, such as certain heavy-duty gas-powered
engines, must meet emission standards using only unleaded gasoline.  A
final rule is expected in 1987.

    In 1986, the Fuel and Fuel  Additive Registration System was
transferred from EPA's Office of Research and Development to EPA's
Office of Air and Radiation.  This registration function assures  that
EPA is knowledgeable about the  chemical content of fuels and fuel  additives.
In conjunction with EPA's development of test protocols for assessing
health effects, it will  enable  EPA to assure that proper restrictions are
placed on substances which cause harm to the environment and/or public
health.  Further, the registration system permits EPA to better monitor
the compliance of fuel and fuel additive manufacturers with the requirements
of section 211 of the Clean Air Act concerning waivers for new fuels or
additives.
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0.   STANDARD SETTING

     With the achievement of effective tightening of  passenger car standards,
EPA has increasingly turned its  regulatory focus  toward  the  development
of parallel  standards for heavy-duty trucks and  other commercial  vehicles.
Projections  indicate that these  vehicles  will  contribute an  ever-increasing
percentage of the mobile source  emissions generated  for  the  rest  of this
century.

     Accomplishments in this area during  1986  include the following:

          In anticipation of the development of  methanol  as  an alternative
          fuel, a Notice of Proposed Rulemaking  was  published  in  1986
          proposing emission standards for methanol-fueled vehicles.4
          Methanol  has the potential  to reduce hydrocarbon emissions  from
          gasoline engines and particulate emissions  from diesel  engines.
          A  hearing was held to  solicit public comments, and a final
          rulemaking is planned  for the spring of 1988.

       -  EPA defended the March 1985 heavy-duty diesel  engine rulemaking^
          in court.  Environmental  groups believed the standards  were too
          lenient, while manufacturers believed  the  standards  were too
          strict.  The court upheld most  aspects  of the  promulgatd standards
          but required that the  effective date of certain standards for
          oxides of nitrogen be  delayed for 2  years.

       -  EPA continued to promulgate nonconformance  penalties for those
          engine families unable to meet  certain standards applicable to
          a  given model year.  This mechanism  assures that no  manufacturer
          benefits financially from nonconformance,  and  that the  least
          effective technology does not determine the stringency  of
          standards for the entire industry.   Rulemaking proposals for
          1991 and later light-duty diesel truck particul ate emissions,
          and 1991 and later heavy-duty diesel engine particulate and
          oxides of nitrogen emissions are planned for 1987.

       -  EPA also published a study on the economics of trading  and
          banking emissions of particulate matter and oxides of nitrogen
          from heavy-duty diesel engines  in 1986.6  After consideration
          of public comments, EPA may make further trading and banking
          proposals in 1987.

       -  The EPA incorporated newly received  emissions  data into a
          study of railroad emissions which it has been  conducting.
          The complete study is  scheduled for  release in 1987.
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E.   PREPRODIICTION COMPLIANCE

     One of EPA's key techniques for assuring the compliance of vehicles
with the motor vehicle emissions standards is the preproduction certification
program.  Initiated in 1968, the program involves the engineering review
and testing by EPA staff of engine families representing new vehicles
which are to be sold in the United States.  This process includes the
submission of technical data from manufacturers about prospective production
vehicles, emissions testing of prototypes by manufacturers, a review of
engineering data and test results by EPA personnel, and, in certain
cases, confirmatory testing of prototypes at EPA's National Motor Vehicle
Emissions Laboratory in Ann Arbor, Michigan.  This procedure identifies
and resolves potential problems which could result in excessive in-use
emissions.  Correcting these problems at the preproduction stage assures
maximum environmental benefits and reduces compliance cost to the industry
compared to correcting the problems when discovered in use.

    The certification program is the only vehicle emission compliance
program which evaluates all vehicle designs from each manufacturer.  It
is also the only program which screens vehicles for elements of design
known as defeat devices.  A defeat device allows a vehicle to pass emission
standards when tested according to Federal test procedures but produce
unacceptably higher emissions when operated under other conditions.
Coupled with the Selective Enforcement Audit and in-use compliance test
programs, the certification program provides the necessary oversight to
assure vehicles are adequately designed and constructed for satisfactory
in-use emissions performance.

    As a result of a series of regulatory reforms implemented over the
last several years, the certification process has become a much stronger,
flexible, and more efficient program. Effective use of computerization has
eliminated redundancy, resulted in administrative streamlining and eased
the procedural burden to the manufacturers, while still retaining the
full effectiveness of the program.

    The current emphasis is on assuring maximum in-use benefit from the
preproduction certification program.  This emphasis includes three parts:
(1) careful monitoring to confirm full compliance with existing regulation;
(?) in-use vehicle testing to quantify the level of emissions performance
deterioration between the preproduction prototype vehicle certification test
results and actual in-use vehicle emission performance; and (3) identification
of potential certification program changes to improve cost effectiveness.

F.  VEHICLE INSPECTION PROGRAM

    An effective strategy for dealing directly with in-use emissions
problems is the establishment of motor vehicle I/M programs.  EPA's basic
approach in this area was determined by the 1977 amendments to the Clean
Air Act.  Urban areas of the country which obtained an extension in the
deadline for attaining the ambient air quality standards for automotive-
related pollutants beyond 1982 are required by the Clean Air Act to
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implement an I/M program.  In 1986, EPA continued to promote the
implementation of I/M programs in each locality where it is required by
the Clean Air Act.   By the end of the year, 58 of 62 areas  had initiated
I/M programs.

     To assure that operating I/M programs actually achieve the planned
emissions reductions, EPA has initiated a systematic I/M auditing plan.
In 1986, EPA audited 13 inspection and maintenance programs and conducted
six follow-up audits.  Auditing and thorough follow-up by Federal, State,
and local officials will  pinpoint and lead to correction of any major
deficiencies in individual I/M programs.

    In addition to I/M programs, EPA has promoted the implementation of
State and local antitampering enforcement programs.  By the end of 1986,
2?. programs had been implemented.  These 32 programs include five statewide
programs which cover 13 post-1987 nonattainment areas.

R.  MOBILE SOURCE ENFORCEMENT

    The EPA mobile source enforcement program is directed primarily
toward achieving compliance with motor vehicle emissions standards and
fuel regulations as required by the Clean Air Act.  The major goals and
objectives are to:   (1) assure that both new and in-use vehicles meet
emissions standards; (2)  assure that emissions control systems are not
removed or rendered inoperative; (3) assure that harmful additives are
not present in gasoline;  (4) administer statutory and California emissions
standards waivers;  and (5) administer the statutory emissions warranties.

    To accomplish these goals, EPA maintains a number of basic motor
vehicle enforcement programs:

    Selective Enforcement Auditing

    In order to assure that production vehicles and heavy-duty engines
are built in accordance with emissions standards, EPA conducts Selective
Enforcement Audit (SEA) test programs at manufacturers' facilities.  The
SEA program is a highly leveraged one.  For every car EPA requires manu-
facturers to test during an audit, over a hundred cars are voluntarily
tested by auto producers  to assure that the audits do not result in a
failure which could affect vehicle production.  Since this close scrutiny
by manufacturers results  in the repair of vehicle classes that are only
marginally meeting requirements, EPA has been able to reduce the number
of audits it requires.  In 1986, EPA conducted 17 SEA's, including four
at foreign manufacturers' facilities.  The first SEA's of heavy-duty
engines were conducted in 1986.  These audits were preceded by thorough
inspections of the manufacturers' testing facilities to assure adequate
procedures were in place and that testing equipment was ready.
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    Recall Program

    Section 207(c) of the Clean Air Act authorizes EPA to order the
recall of vehicles if a substantial number of any class of vehicles do
not conform to emissions standards during their useful lives.  Huring
1986, a total  of 1,012,000 vehicles were recalled either by direct order
of EPA or as a result of an EPA investigation.  Tn the same period,
manufacturers voluntarily recalled 569,000 vehicles to correct emissions
problems.  The EPA conducted a total of 28 recall investigations in 1986,
and performed 635 tests of in-use vehicles at laboratory facilities in
Springfield, Virginia, and Ann Arbor, Michigan.

    The recall program has traditionally focused on light-duty vehicle
exhaust emissions.  However, as new categories of emissions come under
stringent control, the recall  strategy must be applied to them.  Therefore,
in 1986, EPA performed a significant number of tests to monitor evaporative
emissions from passenger cars  and tested several classes of in-use light
duty trucks to determine whether they continued to comply with the stringent
standards to which they were built.

     Fuels Enforcement Program

    As mentioned before, rules expediting the lead phasedown schedule
took effect as part of EPA's air toxics control effort in 1986.  These rules
are creating a demand for other additives which may have a harmful impact
on auto emissions.  The EPA expects that the proliferation of additives will
create a need to monitor the composition of vehicle fuels even more
closely than in the past.

     In a related area, EPA reconsidered and revised restrictions on a
fuel additive regulation's waiver for a methanol blend in 1986.  This is
expected to become an increasingly important area in response to the
ongoing lead phasedown program, as refiners experiment with various
additives as substitutes for lead in vehicle fuel.

    Tampering/Fuel Switching

    The EPA is also responsible for carrying out programs designed  to
deter tampering with vehicle emissions control systems or using leaded
fuel in vehicles which require unleaded fuel.  Surveys undertaken by EPA
have shown tampering and fuel  switching to be continuing serious problems
which undermine the emissions  control performance of many in-use vehicles.
The 1985 Motor Vehicle Tampering Survey indicates that about 20 percent
of the vehicle fleet is subject to gross tampering, and about 10 percent
to fuel  switching.  Tampering  enforcement activities increased in 1986,
resulting in 73 notices of violation with proposed penalties of Si.4
million.  Similarly, EPA settled a total  of 352 fuels and tampering
cases during the year for total penalties of $1.4 million.
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     A critical element of State and local  tampering inspections is the
availability of replacement emission control  components.   The EPA published
an interim and proposed enforcement policy  for new and used aftermarket
catalytic converters.   This policy gives specific  criteria which must  be
met by all manufacturers of new and recycled  catalytic converters.   The
primary purpose of this policy is to ensure that converters would be
available in the aftermarket at a reasonable  cost, yet would still  provide
significant emissions  reductions.

     Emission Warranty Enforcement

     The EPA is also responsible for assessing whether the Federal  emission
warranty requirements  of sections 207(a) and  (b) of the Clean Air Act  are
implemented.  During 1986, EPA responded to a total of 1,175 inquiries.
Of these, 188 were complaints specifically  related to warranty coverage
and were referred to the appropriate vehicle  manufacturer for resolution.
A pamphlet outlining the 207(b) performance warranty was  printed and made
available to State and local I/M programs.

H.   IMPORTS

     The control of emissions from imported vehicles has  become a major
issue in recent years.  Due to the desire for luxury imported cars  and
the strong dollar throughout most of this decade,  the importation of
cars which do not conform to applicable air pollution control  regulations
increased from 1500 in 1980 to a high of 68,000 in 1985.   In 1986,  EPA
received 36,500 applications and 32,700 inquiries  concerning these  auto-
mobiles.  The EPA believes the decrease in  imports from its 1985 peak  is
largely attributed to  the dollar's decline  in exchange value in foreign
markets, rather than a change in consumer taste.   The EPA has substantially
automated the processing of applications and  test  data for cars which
have been modified for compliance with emission standards.  In 1986, EPA
moved forward on revising its regulations controlling these automobiles
with the goal of streamlining the process of  testing and  certification to
demonstrate compliance with Federal emission  requirements.  A final  rule
is expected to be published in 1987.

     The EPA has also been investigating various  laboratories to ensure
that nonconforming imports have been tested properly to demonstrate con-
formity with U.S. emissions standards.  These laboratories are required
to conduct a Federal test procedure and submit the results to EPA for
approval.  Some laboratories, however, have been  falsifying the results
of these tests.  In 1986, EPA successfully  prosecuted a laboratory,
resulting in three individual convictions and one  corporate conviction.
In addition, at the end of 1986, there were three  more ongoing
investigations which may result in prosecution.
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I.   LITIGATION

     Fuels Enforcement

     On June 18, 1986, a U.S. nistrict Court in Kansas City, Missouri,
imposed a judgment for $160,000 against a corporation for a violation of
section 211 of the Clean Air Act.   The case is significant since it
awarded per-day penalties for each and every day of the continuance of
the violation.  In addition, Federal  District Court cases were initiated
against seven defendants in Houston,  Texas, for distributing leaded
gasoline as unleaded.  The U.S. is requesting $10,000 for each violation.

     Lead Phasedown

     Quarterly reporting of lead usage is required by EPA of all refiners
of gasoline.  On April 11, a Federal  grand jury in Houston handed down an
indictment against two employees of an independent refiner charging each
with a single count of criminal conspiracy and four counts of knowingly
submitting false lead additive reports to EPA in violation of Title 18 of
the United States Code.  In May 1986, EPA proposed a $2,573,090 penalty
against the refiner.  The EPA alleged in the notice that the refiner exceeded
the allowable lead limits during 5 calendar quarters from October 1, 1983,
through December 31, 1984.

     Tampering

     The EPA, in separate violation notices, cited 16 repair facilities in
Indiana, New York, and Colorado for Clean Air Act tampering violations by
allegedly removing catalytic converters from 33 vehicles so that converter
replacement pipes could be installed.  The EPA also alleges that the manu-
facturers of the catalyst replacement pipes and six distributors of auto-
mobile parts caused the tampering  violations to occur by making and selling
pipes that were used to replace catalytic converters.  The EPA proposed
a $147,500 penalty against the manufacturer and a $290,000 penalty against
the distributors and installers.  Investigations of two other manufacurers
of catalytic converter replacement devices are ongoing.  A Federal District
Court case is pending against a fourth company based in Atlanta, Georgia.
These actions mark the first time  EPA has proceeded with cases based on the
"causing" language of section 203  of  the Clean Air Act.

     In the Federal District Court for the Northern District of Georgia,
EPA successfully prosecuted a muffler repair shop for the removal  of
catalytic converters on 14 vehicles.   Penalties of $1500 per violation
were awarded by the court.  This was  the highest dollar amount per violation
in a section 203 case ever awarded by a Federal Court.  This case is also
significant because the court stated  that the shop owner was jointly and
severally liable along with the company.  Court fees were assessed against
the defendant as well.
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J.   REFERENCES






     1.  51 FR 32032 (August 8, 1986)



     2.  50 FR 9386 (March 7, 1985)



     3.  51 FR 24614 (July 7, 1986)



     4.  51 FR 30984 (August 29, 1986)



     5.  50 FR 10606 (March 15, 1985)



     6.  51 FR 31959 (September 8,  198(5)
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                    X.  STRATOSPHERIC OZONE PROTECTION
A.   DESCRIPTION OF ACTIVITIES

     The stratospheric ozone layer acts as an important shield protecting
human health, welfare, and the environment from harmful solar ultraviolet
(UV-B) radiation.  The possibility that the production, use,  and release
of chlorofluorocarbons (CFC's) could cause the depletion of stratospheric
ozone was first theorized in 1974.  If a net depletion of stratospheric
ozone occurred, more UV-B radiation would penetrate to the earth's  surface.
This could result in a number of possible adverse health and  environmental
effects.  Although less was known about the possible causes and effects
of ozone depletion in the mid-1970's, there was sufficient evidence of
potential damage to human health, welfare, and the environment to cause the
EPA and other agencies to respond to concerns about this issue by promulgat-
ing regulations in 1978 limiting the use of CFC's as a propellant in non-
essential aerosol spray cans.l  By significantly reducing CFC use and
therefore the risks of ozone depletion, this action provided  more time to
consider the complex scientific questions involved in addressing those
risks.

     In 1980 EPA issued an advance notice of proposed rulemaking discussing
possible further limits on domestic production of CFC's under section 157
of the Clean Air Act.^  However, some of the scientific information
summarized in that notice was outdated by more recent work in the field,
and there have been substantial changes in the research community's
understanding of the issue since then.  In general, the more  recent work
demonstrated that possible changes in the stratospheric ozone layer are
affected by a more complex array of physical and chemical forces than
previously thought.  In addition, EPA believes that any decision on
further regulation of domestic CFC production or uses should  be evaluated
in the context of possible international regulatory actions.

     The EPA developed a program for further examination and  resolution of
this issue which it published in 1986.3  jne EPA's Stratospheric Ozone
Protection Program integrates the diverse scientific and economic research
being carried on by EPA and by other organizations into a framework for
future EPA decision making on both the domestic and international  aspects
of the issue. The three primary elements of the plan are: (1) conducting
analyses and research across a range of economic, engineering, health, and
ecological subjects aimed at narrowing uncertainties; (2) participating
in a series of workshops and conferences both in the United States  and
abroad aimed at improving understanding of all aspects of this issue; and
(3) deciding by May 1987 whether additional  domestic regulations of
ozone-depleting substances are warranted, and issuing a final regulation
by November 1987.  The EPA subsequently announced that it had extended
its decision timetable until December 15, 1987, for a proposed action and
August 1, 1988, for a final decision.  A court order requires EPA action
by that time.
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     Key areas of analysis have included the future growth in emissions
and concentrations of CFC's and other trace gases,  their effect  on  the
stratosphere, the harmful  effects of U1/-R radiation on human health,
welfare and the environment, and the costs and  benefits of regulatory
actions.

     The EPA sponsored and participated in a series of domestic  and
international workshops that focused on future  demand, technical  controls,
and control strategies for stratospheric ozone-modifying chemicals, e.g.,
CFC's and organobromines.   Future supply and demand for CFC's and other
trace gases, and potential control  technologies were discussed at a
domestic workshop held in  Washington, D.C., in  March 1986 and a  companion
international workshop, co-sponsored with the United Nations Environment
Programme (IJNEP), in Rome  in May 1986.   An evaluation  of various  control
strategies was undertaken  at a domestic workshop in Washington,  D.C., in
July 1986 and at a companion international workshop cosponsored  with  UNEP
in Leesburg, Virginia, in  September 1986.

     The effects of trace  gases on  the  stratosphere are summarized  in a
three-volume international assessment coordinated by the National Aeronautics
and Space Administration,  IJNEP, and the World Meteorological  Organization.
To consider the effects of UV-R radiation on human  health, welfare, and
the environment, in .lune 1986, EPA  cosponsored  with UNEP the International
Conference on the Health and Environmental Effects  of  Ozone Modification
and Climate Change in Washington, n.C.   Over 70 technical  papers  were
presented by representatives from 18 nations.

     The EPA integrated the results of  these analyses  in its March  1987
report, An Assessment of the Risks  of Stratospheric Modification, which
was approved by the Science Advisory Board in March 1987.This  assessment
will serve as the technical basis for future EPA decision making.

     In addition to continued research  regarding the potential  impact of
increased levels of solar UV-R radiation on U.S. agriculture, silviculture,
and marine fisheries, work is ongoing on a regulatory  impact analysis for
possible domestic and international controls on CFC's  and other  potential
ozone-depleting trace gases.  These analyses will  support later  EPA
regulatory determinations.

     The EPA participation in international efforts to protect stratospheric
ozone is proceeding on a parallel track.  In addition  to its participation
in international workshops on CFC demand and control technologies,  control
strategies, and the effects of UV-B radiation,  EPA has assisted  the
Department of State in international negotiations conducted under the
auspices of UNEP.  The Vienna Convention for the Protection of the Ozone
Layer, ratified by the Senate in July 1986, establishes a framework for
scientific and economic research on the stratosphere.   The government is
currently involved in negotiations  under the auspices  of IJNEP to develop
a protocol to the convention which  limits the future use and emissions ot
CFC's.
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R.    REFERENCES



     1.   43 FR 11301,  March  17,  1978



     ?..   45 FR 66726,  October  7,  1980



     3.   51 FR 1257, January 10,  1986
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                   XI.  RADON ASSESSMENT AND REMEDIATION
     Radon is a radioactive gas produced by the radioactive decay of
radium-226, which occurs naturally in almost all  soils and rocks.  The
Reading Prong area of Pennsylvania, New Jersey, and New York are the best
known high-radon areas in the United States at this time.  However, indoor
radon is potentially a widespread problem as high radon levels have been
found in many States.

     Initial efforts of EPA Radon Action Program in 1985 were concentrated
in the Reading Prong with measurement assistance being provided to States
in that area.  The program was expanded in 1986 in response to increased
awareness of the magnitude of the problem and the associated health risks.

     A national strategy was developed to guide EPA efforts in assisting
State governments and the private sector in assessing and reducing health
risks due to indoor radon.  The strategy builds upon existing knowledge and
focuses not only on reducing significant current risks, but also on reversing
trends in structure design, siting, construction, and maintenance that
could increase future risks.

     The goals of the EPA strategy are as follows:

     1.  Determine national frequency distribution of radon
         concentrations and identify high risk areas.

     2.  Remediate exposure in existing structures.

     3.  Prevent exposure in future construction.

     4.  Provide for limited, yet essential, overall  Federal
         program direction and coordination.

     The EPA's Office of Radiation Programs is responsible for coordinating
EPA's indoor radon program with Federal agencies and the States.  The Radon
Management Committee, comprised of senior-level management officials from
various headquarters and Regional Offices within EPA, was established and
met regularly in 1986 to provide policy advice and identify priority actions
for the Radon Action Program.

     In 1986, the major program activities for the Radon
     Action Program included:

     1.  Providing technical assistance in developing a
         comprehensive measurement program to ensure consis-
         tency and utility of collected data;
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     2.  Reducing radon exposure in  existing  homes  through
         remediation demonstrations  and  house  evaluation
         programs;

     3.  Working with public and private sector  organizations
         to prevent  excessive exposure in  new  homes through
         development of better construction designs,  and
         identification of criteria  for  high-risk lands;

     4.  Providing  technical training  In measuring  and
         diagnosing  radon  problems,  working in cooperation with
         States to  share technical and other  information, and
         encouraging development of  private sector  programs; and

     B.  Disseminating public information  on  the risks  of
         indoor radon exposure and ways;  to reduce exposure.

     Also in 1986,  Congress passed Title IV of the  Superfund Amendments
and Reauthorization  Act of 1986 requiring  EPA  to formally establish  a
program for radon gas and  indoor air quality.  This Act requires  EPA to
gather data on indoor air  pollution; coordinate  Federal, State, local, and
private research and development efforts;  and  assess  appropriate  Federal
action to mitigate  the environmental and health  risks associated  with indoor
air quality problems.  Reginning in  1987,  the  Act specifies a  number of
activities which EPA is expected to  include as part of  its Radon  Action
Program.  These activities include technical  assistance to the States, a
national assessment  of radon levels  in structures,  and  a demonstration
program to test mitigation methods.
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                              XII. LITIGATION


A.   INTRODUCTION

     During 1986 two highly significant precedent-setting cases involving
the Clean Air Act were decided by the courts.  These are discussed below.
Following those cases are discussed a number of others that have significant
program implications but are not as broadly significant.

R.   LANDMARK DECISIONS

     1.  Acid Rain Decision:  Thomas v. New York

         In a major ruling on EPA's obligations under section 115 of the
Clean Air Act, the D.C. Circuit held that two letters forwarded by former
Administrator Costle in 1981 to the Secretary of State and to Senator
George Mitchell did not trigger a nondiscretionary duty on the part of
the current Administrator to issue calls for State implementation plan
(SIP) revisions in States allegedly contributing to acid deposition in
Canada.  The court reversed a prior adverse ruling by Judge Norma Holloway
Johnson of the District Court for the District of Columbia.  The O.C.
Circuit denied petitions for rehearing filed by the petitioners, several
environmental groups and northeastern States.  These parties have since
petitioned for Supreme Court review.

     ?..  Overflight Inspection Case:  Dow Chemical Co. v. United States

         On May 19, the Supreme Court ruled that EPA acted within its
statutory authority under the Clean Air Act in inspecting a Dow chemical
plant by taking aerial photographs.  The case is broadly significant
because of its ruling that EPA is free to use this inspection technique
without transgressing constitutional guarantees against unreasonable
searches and seizures.

C.   OTHER SIGNIFICANT DECISIONS

     1.  Detroit Incinerator Rest Available Control Technology (RACT)
         Decision: Greater Detroit Resource Recovery Authority v. Adamkus

         Judge Barbara Hackett of the Eastern District of Michigan issued
an order on October 8 enjoining EPA from taking action to withdraw or
modify a prevention of significant deterioration (PSD) permit issued by
the State of Michigan under delegated Federal authority.  The permit
authorizes the construction of a large municipal resource recovery facility
whose potential dioxin and furan emissions are of serious concern to the
Canadians.  The court ruled that EPA has no authority to terminate or
modify a PSD permit once it is issued except under narrow circumstances.
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     ?..  With one significant exception,  the courts  uniformly  rejected
challenges to EPA actions in approving  or disapproving  particular
SIP's during 1986.  The principal  decisions  were:

         a.  Bethlehem Steel Corp.  v.  EPA (Bethlehem IV),  where  the
         Seventh Circuit rejected  challenges to  EPA's partial  disapproval
         of Indiana coke oven rules.   Among  other  rulings, the court
         rejected industry arguments  that EPA may  not require  reasonably
         available control  technology  (RACT) in  nonextension areas  after
         1982, and denied the citizen  groups'  request that EPA be ordered
         to promulgate new and more stringent coke oven rules  in nonattainment
         areas.

         b.  Michigan v. Thomas (Michigan RACT Case), in which the
         Sixth Circuit upheld EPA's disapproval  of purported RACT
         requirements for fugitive  dust sources, which  EPA believed
         were vague and unenforceable.   The  court  held  that EPA
         was not bound to approve  such  requirements  even though  it
         had earlier done so for other  States; the EPA  showed  that
         its experience with those  other States  supported  its  view
         that they did not yield RACT-level  controls, and  should
         therefore no longer be approved.

         c.  Council of Commuter Organizations v.  Thomas,  (New York
         Carbon Monoxide and Ozone  SIP  Case), where  the Second Circuit
         upheld EPA's approval of the  New York SIP for  ozone and carbon
         monoxide against a citizen group argument that the State had
         failed to meet the Clean  Air  Act requirement that the
         existing transportation system meet "basic  transportation
         needs."

         d.  New Mexico Environmental  Improvement  Division v.  Thomas,
         in which the court upheld  EPA's  imposition  of  restrictions
         on air grants to the State Air Pollution  Control  Agency for
         failure to submit on adequate  inspection/maintenance  program
         for Albuquerque, against  a challenge by the State agency mainly
         on the ground that the formula selected by  EPA for apportioning
         the restriction between the  State and local  agencies  was
         arbitrary and capricious.

     In Ohio v. EPA, however, the  Sixth Circuit, ignoring  its  own
precedents to the contrary, overturned  EPA's approval of revised sulfur
dioxide SIP limits for two power plants operated by  the Cleveland Electric
Illuminating Company, on the grounds  that EPA had  failed to verify  modeling
results against field data.  On EPA's  petition for rehearing,  the court
narrowed its holding to reflect its concern  that the model failed adequately
to account for lakeshore fumigation effects.
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     3.  Polycyclic Organic Matter (POM)  Settlement:  New York v.  Thomas

         The EPA settled a lawsuit under  section 122  of the Clean Air Act
(Listing of Certain Unregulated Pollutants)  challenging EPA's decision not
to regulate POM.  The settlement agreement requires EPA to take a number
of regulatory and nonregulatory actions,  including conducting a rulemaking
under section 111 of the Clean Air Act for wood stoves, and determining
whether to list municipal  waste combustor emissions as hazardous  air
pollutants under section 112.

     4.  Heavy-Duty Vehicle Standards Case:   NRDC v.  Thomas

         The D.C. Circuit  largely rejected petitions  for review filed by
environmental groups and industry challenging the stringency and  timing
of recently promulgated emission standards for heavy-duty vehicles.   The
court deferred to EPA's "reasonable"  reading of the statute as requiring
technology-forcing standards that most manufacturers  could meet in the
available lead time.  The  court declined  to decide several other  substantive
issues because the petitioners had not raised the issues in the rulemaking.
The court overruled only EPA's promulgation of a nitrogen oxides  standard
with less lead time than the statute  required, finding that the statutory
requirement could not be avoided even where EPA had missed the statute's
deadline for promulgating  the  standard and manufacturers required less
lead time than the Clean Air Act provided.
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