450R81101
                    PROGRESS  IN THE PREVENTION AND CONTROL

                      OF  AIR  POLLUTION IN 1980 AND 1981



                      ANNUAL  REPORT OF THE ADMINISTRATOR

                    OF THE  ENVIRONMENTAL PROTECTION AGENCY

                                   TO THE

                       CONGRESS OF THE UNITED STATES

                              IN COMPLIANCE WITH

                     SECTIONS  313, 202(b)(4), and 306

                                     OF

                           42  U.S.C. 7401 ET SEQ.


                       THE CLEAN AIR ACT, AS AMENDED
                                    U.S. Fr
                                    R  '

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                                 CONTENTS
                                                                    Page

PREFACE	i i

   I.  INTRODUCTION AND SUMMARY	,	1-1

  II.  AIR QUALITY TRENDS,  MONITORING,  AND  MODELING
       A.  National Air Quality and Emission  Trends	II-l
       B.  Ambient Air Monitoring	II-3
       C.  Air Quality Modeling	II-5

 III.  AIR POLLUTION RESEARCH PROGRAMS
       A.  Oxidants	I II-l
       B.  Mobi 1 e Sources	II1-3
       C.  Gases  and Particles	III-4
       D.  Hazardous Air Pollutants	III-5
       E.  Acid Deposition	111-7

  IV.  DEVELOPMENT OF NATIONAL AMBIENT  AIR  QUALITY STANDARDS	 IV-1

   V.  STATUS OF  STATE IMPLEMENTATION PLANS (SIP's)
       A.  State  Implementation Plans	 V-l
       B.  Processing of SIP Revisions	 V-3
       C.  Emissions Trading	 V-4
       D.  Ozone  and CO Nonattainment Policy	V-5
       E.  Prevention of Significant Air Quality  Deterioration  	 V-6
       F.  Tall  Stack Regulations	 V-6
       G.  Visibility	 V-7
       H.  Permit Fee Guideline	 V-8
       I.  Transportation Control Measures	 V-8

  VI.  CONTROL OF STATIONARY SOURCE EMISSIONS
       A.  New Source Performance Standards (NSPS)	 VI-1
       B.  National Emissions Standards for Hazardous Air
             Pollutants (NESHAP)	 VI-1
       C.  Research and Development of  Air  Pollution Control
             Technologies for Stationary Sources	VI-2

 VII.  CONTROL OF MOBILE SOURCE EMISSIONS
       A.  Standard Setting	 VII-2
       B.  Compliance Procedures	 VII-4
       C.  Inspection and Maintenance	 VII-5
       D.  Hazardous Pollutants	 VII-5

VIII.  ENFORCEMENT
       A.  Stationary Source Enforcement	VIII-1
       B.  Mobile Source Enforcement	 VIII-1
       C.  Compliance by Federal Facilities	VIII-5
       D.  List  of Violating Facilities	VIII-6

  IX.  LITIGATION	   IX-1

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                                 PREFACE
     The Clean Air Act, as amended, authorizes a national  program of  air
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 con-
trol of air pollution  at its source continues to rest with  State and
local governments.  EPA's role is to conduct research  and  development
programs, set national standards and regulations, provide  technical and
financial assistance to the States, and,  where necessary,  supplement  State
implementation programs.

     Section 313 of the Clean Air Act requires the Administrator to  report
on measures taken toward implementing the purpose and  intent of  the Act.
This report covers the period January 1,  1980, to December 31,  1981,  and
describes the issues involved in the prevention and control  of  air pollution
and the major elements of progress toward that goal that have been made since
the last report.  In addition, this report also includes two other EPA  reports
to Congress required under the Clean Air  Act,  as amended:

     1.  Section 202(b)(4) report on measures  taken in relation  to motor
vehicle emissions control (Chapter VII);  and

     2.  Section 306 report on Federal  procurement and violating facilities
(Chapter VIII).

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                       I.  INTRODUCTION AND SUMMARY
A.   OVERVIEW
     This report describes the progress that the Environmental  Protection
Agency (EPA) has made in the prevention and control  of air pollution
during the two-year period 1980-81.  In many cases  this progress  builds
on the experiences of the prior decade.  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

     With the exception of nitrogen dioxide, data trends over the period
1975-1981 show continuing improvements across the country in ambient air
quality and total pollutant emissions.  For example:

     0 Between 1975 and 1981, total suspended particulate (TSP) emissions
       from man-made sources decreased approximately  20 percent,  while
       average ambient TSP levels decreased 3 percent.

     0 Average ambient levels of sulfur dioxide (S02) decreased 27
       percent between 1975 and 1981 and total S02  emissions decreased
       12 percent.

     0 Average ambient carbon monoxide (CO) levels  decreased 26 percent
       between 1975 and 1981, and the annual rate of  improvement  has
       been approximately 5 percent.  Total CO emitted during this time
       decreased 10 percent.

     0 Average ambient nitrogen dioxide (N02) levels  increased  5  percent
       between 1975 and 1981, but the levels were declining between 1980
       and 1981.

     0 Between 1975 and 1981, average ambient ozone  (03) levels decreased
       14 percent.  Total emissions of volatile organic compounds (VOC's),
       which are ozone precursors, declined approximately 9 percent
       during this same period.

     0 The composite maximum quarterly average of ambient lead  levels
       decreased 57 percent between 1975 and 1981.   This is consistent
       with a reduction in lead consumption in gasoline of 67 percent  in
       this period.

     In order to correct past problems associated with ambient  air quality
monitoring across the United States, EPA promulgated  air quality  monitoring
regulations on May 10, 1979.  Since promulgation, overall monitoring
activities have been improved significantly.  The States have established
a network of stations to monitor pollutants to which  national  ambient

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                                   1-2
air quality standards apply.  State and Local  Air Monitoring Stations
(SLAMS) are designed to assist States in meeting their State Implementation
Plan (SIP) requirements.  National  Air Monitoring Stations (NAMS),  a
subset of SLAMS, emphasize urban and multi-source areas.   By the end  of
1981, almost 5,400 SLAMS and 1,400 NAMS were operational.

     Although air quality models are an effective means of predicting  the
transportation and dispersion of pollutants from different sources, there
has been growing concern about their use.  The technical  community  has
expressed concern about the imposition of regulatory guidance on a  highly
technical and evolving discipline.    Models also have been perceived  as
being too imprecise to be used as the sole determinant of  new source
permissibility, siting, and allowed emissions  levels.

     To address these problems and others, EPA entered into a cooperative
agreement with the American Meteorological Society for peer scientific
review of EPA's modeling guidance.   EPA also sponsored workshops and the
Second Conference on Air Quality Modeling.  In short, during 1980-81 EPA
worked to improve the credibility of models and to develop methods  of
using models properly in the decision-making process.

C.  AIR POLLUTION RESEARCH PROGRAMS

     In 1980-81, EPA conducted a comprehensive, broad-based research
program to support all phases of the air pollution control program.   In
the health effects area, research involving clinical (controlled human),
animal, and epidemiological studies was conducted to support the review
and revision of national ambient air quality standards and decisions
whether to regulate other hazardous pollutants or pollutants from mobile
sources.  In the environmental processes and effects area, research was
conducted to determine the ecological effects  of various pollutants
(e.g., damage to crops resulting from 03, SOg, and S02/03/NOX
combinations, acid deposition impacts on aquatic and forest ecosystems)
and to develop techniques for relating source  emissions to air quality
impacts (e.g., source apportionment methods for particles, atmospheric
dispersion and transformation models for ozone, fine and  inhalable  parti-
cles, acid deposition, and visibility).  Research in the monitoring area
included providing quality assurance and standard reference materials  to
support State and Regional monitoring activities, conducting special
monitoring studies, and developing new monitoring techniques for size-
fractionated particulate and potentially toxic compounds.   Scientific
assessment activities produced air quality criteria documents for carbon
monoxide, nitrogen oxides, sulfur oxides, particulate matter, and hydro-
carbons, and comprehensive health assessments  for a number of potentially
hazardous air pollutants.

     During 1980 and 1981, the potential environmental  problems  posed  by
the transportation, transformation, and deposition of acid or acid-causing
air pollutants were a major focus of EPA research efforts.  The  interagency
acid deposition research budget grew from $11  million in FY 1980 to $13
million in FY 1981.

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                                   1-3
D.   DEVELOPMENT OF NATIONAL AMBIENT AIR QUALITY STANDARDS

     In 1980-81, there were significant changes and improvements in the
procedures for reviewing the National Ambient Air Quality Standards (NAAQS)
as a result of the new and expanded role of the Clean Air Scientific
Advisory Committee (CASAC).  In addition to reviewing the criteria documents
which assemble and assess all the relevant studies on the health and welfare
effects of a pollutant for which an NAAQS will  be established,  the CASAC  also
reviews agency staff papers which interpret the critical  studies in the
criteria documents for use in the standard-setting process.  The expanded
CASAC role in the NAAQS process has improved the inputs of the  scientific
community and has provided better guidance to the Administrator in
selecting the level of final standards.

     In 1980, a revised carbon monoxide (CO) criteria document  was
published, the staff paper evaluating the critical studies in the CO
criteria document was reviewed and concurred on by CASAC, and revised
standards were proposed on August 18, 1980.  EPA proposed to retain the
current 8-hour standard at 9 ppm and to make adjustments  to the 1-hour
standard and to the statistical form of the standard.  Final promulgation
of revised CO standards is expected in 1983.

     In 1980 and 1981, CASAC reviewed the nitrogen oxides (NOX) criteria
document and a combined criteria document for sulfur oxides (SOX) and
particulate matter (PM) and concurred on the scientific adequacy of the
documents.  In 1981, CASAC also reviewed and concurred on the adequacy of
final drafts of the PM and NOX staff papers.  Proposal of revised PM
standards is expected in 1983.  A revised standard for NOX will also be
proposed in 1983.  Proposal of revised SOX standards, if  necessary, also
wil1 occur i n 1983.

     An EPA review document evaluating vapor phase hydrocarbons was reviewed
and received CASAC concurrence in early 1981, including concurrence
with the main conclusion that no significant human health or ecological
effects are associated with sucn hydrocarbons as a class  at existing
U.S. ambient air levels.

E.   STATUS OF STATE IMPLEMENTATION PLANS (SIP's)

     In March 1978, EPA promulgated a list of areas that  had not attained
applicable national ambient air quality standards.  For these areas,  States
were to submit revised implementation plans providing for attainment  of
the air quality standards as expeditiously as practicable.  The revised
State plans were to be submitted to EPA by January 1, 1979.  Through
1981, all  52 States and Territories whose plans were due  officially
submitted partial  or complete plans.  Of these, 13 States and one Territory
submitted partial  plans, and 38 States submitted complete plans.  Final
action has been taken by EPA on 31  of the complete plan revisions.   Of
this number, 12 were approved without conditions,  16 were approved with
conditions, and three had most of their plans approved with portions
disapproved.

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                                   1-4
     Through 1981, 30 lead SIP's have been formally  submitted to EPA  and
six have been submitted in draft form.  The 20 remaining lead SIP's are  in
various stages of completion.

     Improvements in the processing of SIP's were a  major accomplishment
during 1981.  A review of the SIP revision approval  process  determined
that the typical SIP review and processing procedure took approximately
220 workdays and involved 24 steps.  Because of the  time and administrative
complexity involved in the process, an inventory taken in 1981  found
almost 650 revisions waiting to be processed.  Some  of the revisions
were well over a year old.  In order to reduce the backlog of SIP revisions
and ensure that future revisions were processed as quickly as possible,
EPA experimented with several improved processing procedures:
1) tailoring the extent of the review to the importance of the  revision;
2) reducing the steps in the review process and the  total processing  time;
and 3) parallel processing of SIP revisions at the State and Federal
levels.  Because experience with these improved SIP  review procedures
indicated substantial time and resource savings were possible,  the procedures
were applied to all  EPA Regional Offices on July 22, 1981.

     Another major EPA activity in 1980-81 was the development  and
implementation of various controlled emissions trading concepts.  These
concepts include the emissions offset policy, the bubble policy, and  the
emissions banking and trading program.  EPA is developing these different
emissions trading concepts in the belief that they provide strong economic
incentives to industry by applying market principles to the  control
of ai r pollution.

     Implementation of the bubble policy focused on  developing  EPA Regional
expertise, assisting States and localities in learning about the policy,
and working with industry and environmental groups to understand the
policy and how it can be used to achieve environmental  and cost-cutting
objectives.  During 1980-81, approximately 100 bubble applications were
received by EPA.  Twenty applications were approved  and three others
were proposed for approval through 1981.

     On August 7, 1980, EPA promulgated amendments to the Prevention  of
Significant Deterioration (PSD) regulations originally promulgated in
June 1978.  The amendments involved changes in the criteria  for determining
which new or modified air pollution sources are subject to the  regulations
as well as changes in the air quality monitoring requirements,  Best
Available Control Technology (BACT) applicability, and calculation of
increment consumption.

     In 1981, EPA reproposed regulations to comply with Section 123 of
the Clean Air Act, which requires that an emissions  limitation  for a
source not be affected by stack heights that exceed  good engineering
practice or by any other dispersion technique.  These regulations, promul-
gated in February 1982, focus on the setting of a good engineering practice
(GEP) stack height for use in determining emissions  limitations.

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                                   1-5
     On December 2, 1980, EPA promulgated regulations for the protection
of visibility in mandatory Class I Federal  areas.   These regulations
allow a phased approach to visibility protection,  with the first phase
of the program dealing only with visibility impairment that is reasonably
attributable to a specific source.  Through 1981,  EPA has not received
any visibility SIP's from any of the 36 States required to submit them.

F.   CONTROL OF STATIONARY SOURCE EMISSIONS

     In the area of stationary source controls,  work progressed on the
development of emissions standards for those major source categories  not
yet regulated under New Source Performance Standards (NSPS).   A total  of
four NSPS were promulgated in 1980 and 1981, and 12 were proposed.  The
major thrust of the NSPS effort is now being directed toward  control  of
volatile organic compounds.

     EPA listed inorganic arsenic and radionuclides as hazardous air
pollutants under Section 112 of the Act in  1980.  Work continued to
develop standards under Section 112 for coke oven  emissions and for
major benzene sources.  Four standards to control  benzene emissions were
proposed in 1980-81.

     Research projects aimed at demonstrating and  assuring cost-effective
control technologies capable of reducing pollutants from various stationary
sources were undertaken in 1980-81.  Outputs of  the research  programs
support regulatory standard-setting activities and provide information to
industry for solving air pollution problems.

G.   CONTROL OF MOBILE SOURCE EMISSIONS

     EPA undertook a number of actions in 1980-81  aimed at complying with
the mobile source requirements of the 1977  Act.  At the same  time, EPA
recognized that there were certain requirements  of the Act that were
technologically infeasible to meet or that  may result in excessive costs,
while achieving little in terms of environmental improvement.  Accordingly,
EPA proceeded with a series of regulatory relief measures consistent with
the law as well as with the continuing movement  toward cleaner air.

     In 1980-81, particulate emissions from light-duty diesel vehicles
were controlled by the establishment of a 0.6 gram per mile standard to
take effect in model year 1982.  In addition, EPA  established interim
standards for light-duty vehicles sold at high altitudes for  model years
1982 and 1983 and established exhaust standards  for light-duty trucks  for
model year 1984.  In 1980, a final rule was promulgated setting a 90
percent reduction in hydrocarbon and carbon monoxide emissions for heavy-
duty trucks starting in model year 1984.   This rule requires  the use of  a
catalyst.  In 1981, EPA initiated a re-evaluation  of this standard in
view of questions raised as to the technological feasibility  of the use
of catalysts on trucks.

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                                   1-6
     During 1980-81, EPA proceeded with a series  of major changes  in  the
preproduction certification program.  These changes were directed  toward
reducing the unnecessary complexity and cost of this program and reductions
in the paperwork and reporting burdens were achieved.  As a long-term reform,
EPA is considering whether to replace certification with a program designed
to control in-use emissions performance directly.

     EPA provided technical support to those States and localities that
are implementing Inspection/Maintenance (I/M) programs.  Areas  in  nine
States had begun operating programs as of the end of 1981.  Projects  at
the national level also were implemented in order to promote the acceptance
and effectiveness of I/M programs.  Section 176(a)  of the Clean Air Act
prohibits grants to areas not in attainment with  standards for  transporta-
tionrelated pollutants where there is a finding that the State  failed to
make reasonable efforts to submit an approvable State Implementation
Plan.  That finding was made in 1980 in California  and two counties in
Kentucky because of lack of I/M legislation.

H.   ENFORCEMENT

     During the 1970s EPA embarked on a program to  bring stationary
sources which had never installed pollution control equipment into initial
compliance with applicable regulations.  During 1980 and 1981,  EPA conducted
over 6,000 inspections,.issued almost 800 notices of violations and
almost 100 administrative orders, and initiated 130 civil actions. By
the end of 1981, over 93 percent of all U.S. sources had achieved  or
were on a schedule to achieve initial compliance.

     The EPA mobile source enforcement program is directed primarily
toward achieving compliance with motor vehicle emissions standards and
fuel regulations.  This includes ordering the recall of vehicles if they
do not conform to standards, granting waivers of  emissions standards
where appropriate, and auditing vehicles on the assembly line to determine
compliance.  In addition, EPA operates a nationwide fuels enforcement
program to ensure that retail fuel outlets comply with regulations pertaining
to fuel additives and to minimize the use of leaded gasoline in vehicles
designed to use unleaded gasoline.

     EPA promulgated two sets of regulations related to mobile  source
enforcement in 1980.  One set established emissions performance warranties
requiring that a vehicle manufacturer repair, at  no charge to the  owner,
certain emissions control devices or systems that are defective.  The
second set of regulations established a program under which manufacturers
of automotive aftermarket parts can certify that  the use of their  parts
will not cause a vehicle to exceed emissions standards.

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                                   1-7
I.   LITIGATION

     In matters related to national  ambient  air quality  standards,  the
U.S. Court of Appeals for the D.C. Circuit upheld EPA's  national  primary
and secondary ambient air quality standards  for lead in  1980.   In addition,
the D.C. Circuit Court also upheld EPA's national ambient  air  quality
standard for ozone.

     With regard to new source performance standards (NSPS), the  Court
held in 1980 that the achievability of EPA's NSPS for lime plants was
not adequately supported by the record.  In  1981, the Court did uphold,
however, the 1979 NSPS for fossil fuel-fired utility boilers as well as
EPA's procedures for reviewing and revising  the NSPS for basic oxygen
furnaces in steel mills.  Finally, in 1981,  the Court overturned  EPA's
determination that boilers owned by PPG Industries,  Inc.,  were subject
to the 1971 NSPS for fossil fuel-fired boilers.

     In other areas, in 1981  the Court upheld EPA's  conditional approval
of the Texas Part D nonattainment SIP, holding, among other things, that
EPA's conditional approval policy was authorized under the Act.  In
1980, three Courts of Appeal  ruled on the validity of area designations
issued by EPA under Section 107 of the Act.   One upheld  EPA's  actions
and two did not.

     In 1980, the Ninth Circuit Court of Appeals upheld  EPA's  imposition
of a construction moratorium and funding limitations against California
for failure to meet the requirements of Part D of the Act.  In addition,
the Tenth Circuit in 1980 rejected an attempt to challenge EPA's  action
in imposing a construction moratorium and Federal funding  restrictions
on Colorado for the State's failure to enact I/M legislation.

     Litigation over many mobile source regulations  continued  throughout
1981.  Many of these cases are now the subject of discussions  to  explore
whether out-of-court settlement is practical.

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            II.  AIR QUALITY TRENDS, MONITORING,  AND MODELING

     This chapter is divided into a discussion of ambient air quality  and
emissions trends, air quality monitoring,  and air quality modeling.   The
section on air quality monitoring discusses the status  of the State  and
Local Air Monitoring Site (SLAMS) Network  and the National Air Monitoring
Site (NAMS) Network.  The section on air quality  modeling discusses  work
in progress on modeling techniques.

A.   NATIONAL AIR QUALITY AND EMISSION TRENDS

     National ambient air pollution levels have dropped for each of  the
major pollutants between 1980 and 1981.  This is  the first time that a
short-term improvement has been observed for each of the pollutants  for
which there are national ambient air quality standards.  The ambient air
quality data used in the following pollutant assessments were obtained
from EPA's National Aerometric Data Bank.   The data were gathered primarily
from State and local air pollution control agencies through their monitoring
activities.

     Total Suspended Particulate (TSP) - The composite  annual average  of
ambient TSP levels measured at 1972 sites  decreased 3 percent during the
1975 to 1981 time period.  The TSP trend was relatively stable during  the
1975 to 1980 time period and then fell between 1980 and 1981.  The median
rate of decrease among the 1289 sites with data in 1980 and 1981  was 6
percent.  Most of the decrease between 1980 and 1981 occurred in the
Northeastern, North Central, Rocky Mountain, and  Northwestern States.
The lagest decrease in ambient TSP levels  was observed  in the Northwestern
States which fell 13 percent between 1980 and 1981.  Particulate emissions,
on the other hand, exhibited a decrease of approximately 20 percent  during
the 1975 through 1981 time period with a decrease of approximately 2
percent between 1980 and 1981.  It is not  entirely clear why particulate
emissions decreased so much more than ambient TSP levels during 1975-1981.
A possible explanation may be attributed to high  background levels of
naturally occurring particulate emissions, as well as uninventoried  area
source emissions, such as reintrained dust, which contribute to ambient
concentrations but which are not included  in the  emission inventory.
This explanation, however, does not satisfactorily explain the drop  in
ambient levels between 1980 and 1981,  which could be due to reduced
industrial activity, changes in the weather, or a combination of both.

     Sulfur Dioxide (SO?) - Annual average ambient S02  levels measured at
416 sites with continuous S02 monitors decreased  27 percent from 1975  to
1981.  A similar decrease of 31 percent was observed in the trend in the
composite average of the second maximum 24-hour average.  Correspondingly,
there was a 12 percent drop in sulfur oxide emissions.   The difference
between emissions trends and air quality trends arises  because the use of
high sulfur fuels in large power plants was shifted from urban areas,
where most of the S02 monitors are, to rural areas where there are fewer
monitors.  The S02 ambient air quality improvement continued between 1980
and 1981 with a median rate of improvement of 8 percent for the annual
mean and 4 percent for the second maximum 24-hour averages.

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                                    II-2
     Carbon Monoxide (CO) - The second highest nonoverlappying 8-hour
average ambient CO levels at 224 sites decreased at a rate of approximately
5 percent per year, with an overall reduction of 26 percent between 1975
and 1981.  An even greater improvement was observed in the estimated
number of exceedances, which decreased 84 percent.  The improvements
generally reflect CO levels at traffic-saturated monitoring sites in the
center city, which have experienced little or no change in the number of
vehicles in their vicinity.  Consequently, the improvement in CO levels
reflects the reduction in emissions from new cars resulting from Federal
standards for vehicle emissions.  CO emissions decreased 10 percent during
the same period.  Between 1980 and 1981, the median rate of improvement
was 3 percent among the 163 sites with both 1980 and 1981  data.   If only
the sites with second maximum values above the level of the 8-hour CO
standard are considered, the median rate of improvement was 7 percent,  so
that the higher sites continued to show improvement for the second maximum
value between 1980 and 1981.
     Nitrogen Dioxide (N02) - Annual  average ambient N0£ levels  measured
at 445 sites increased from 1975 to 1979 and then began declining.   The
air quality trend is very similar to the trend in nitrogen oxides  emissions,
The net long-term change between 1975 and 1981 is an increase of 5  percent
in N02 levels and a 5 percent increase in emission levels.  A decrease
was observed between 1980 and 1981  in both the air quality,  as measured
at 201 sites with data in both years, and emissions levels of 8  and 2
percent, respectively.

     Ozone (03) - The composite average of the ambient  second highest
daily maximum 1-hour 03 values recorded at 209 sites decreased 14  percent
between 1975 and 1981.  An even greater improvement was observed in the
estimated number of exceedances in  the third quarter ozone season,  which
decreased 42 percent.  Volatile organic compound (VOC)  emissions decreased
9 percent during the same time period.  The greater improvement  observed
in ozone levels appears to be a combination of reductions  in VOC emissions
and the change in the calibration procedure which took  place between 1978
and 1979.  Between 1980 and 1981, the majority of the 159  trend  sites
with ambient data in both years decreased with a median rate of  improvement
of 8 percent.  This is consistent with the 7 percent drop  in VOC emissions
during this period.

     Lead (Pb) - The composite maximum quarterly average of  ambient lead
levels, recorded at 92 sites, decreased 57 percent between 1975  and 1981.
The sample of 92 sites is heavily weighted by monitors  in  the States of
Texas, Maryland, and Pennsylvania.   Individual  trends in each of these
States show decreases.  The lead consumed in gasoline dropped 67 percent,
primarily because the use of unleaded gasoline is required in catalyst-
equipped cars.  Between 1980 and 1981, the maximum quarterly average lead
levels decreased 18 percent among the 113 sites with data  in both years.
The decrease in lead consumption over the same time period is 29 percent.

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                                   II-3
B.  AMBIENT AIR MONITORING

     Air quality monitoring regulations promulgated by  EPA on May  10,
1979, require each State to establish a network  of monitoring stations
to monitor pollutants for which National  Ambient Air Quality  Standards
(NAAQS) have been established.  The new regulations were designed  to
correct past air monitoring problems such as  untimely or incomplete
reporting of data, improper monitor location  and sampler probe siting,
and the lack of uniformity in sampling methodology and  quality assurance
practices.  Since promulgation of the regulations, major changes to correct
these deficiencies have been made,  resulting  in  a significant improvement
in overall monitoring activities.  The stations  required by the regulations
are termed State and Local Air Monitoring Stations (SLAMS), National Air
Monitoring Stations (NAMS), and Special Purpose  Monitoring (SPM).

     State and Local  Air Monitoring Stations  (SLAMS)

     This network must conform to the requirements of 40 CFR  58 and must
be a carefully planned network of fixed monitoring stations whose  size
and distribution are largely determined by the needs of State and  local
air pollution control agencies in meeting their  respective State Implemen-
tation Plan (SIP) requirements.  The stations in the network, termed
State and Local Air Monitoring Stations (SLAMS), are intended to be the
backbone of the ambient monitoring program relative to  SIP activities.
To ensure quality data, the SLAMS must meet the  following criteria:


     - Each site must meet network  design and criteria  for instrument
exposure and sample inlet design.

     - Quality assurance programs including precision and accuracy assessments
and control and corrective actions  must be developed and followed.

     - All sampling methods and equipment must meet EPA reference  or
equivalent requirements.

     - Acceptable data validation and recordkeeping procedures must be
     followed.

     In addition, data from the SLAMS must be summarized and  reported
annually to EPA.  SLAMS must meet all requirements of the regulations by
January 1, 1983.

     National  Air Monitoring Stations (NAMS)

     The NAMS are a subset of the SLAMS network  emphasizing urban  and
multi-source areas.  NAMS, like SLAMS, must conform to  EPA siting  criteria
and operate according to quality assurance procedures that equal or
exceed EPA's minimum specifications.  The NAMS differ from the SLAMS in
that:

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     - NAMS were to be in operation by January 1,  1981.

     - NAMS must use continuous automated instruments  for gaseous  pollutants.

     - A minumum number of NAMS must be established in specified urbanized
       areas.

     - NAMS data must be reported to EPA on a quarterly  basis  and  be accom-
       panied by precision and accuracy data.

     The NAMS are intended to provide data for national  policy analyses,
for regulatory analyses, for identification of trends, and for reporting
to the public on the air quality in major metropolitan areas.

     Special Purpose Monitoring (SPM)

     Special purpose monitoring (SPM) activities consist of well-defined
studies needed by State and local  agencies to support  SIP's and
other air program activities.  SPM is not permanently  established  and
thus can be adjusted easily to accommodate changing priorities.  SPM can
be used to supplement the fixed monitoring network as  circumstances
require and resources permit.  Some principal SPM  applications are:

     - To make preliminary attainment or nonattainment determinations in
       areas where fixed station data are insufficient.

     - To establish or check compliance with State air quality standards.

     - To determine background or downwind concentrations relative to SIP
       development.

     Table II-l  lists, by pollutant, the number of SLAMS as well  as  NAMS.
As of December 1, 1981, 1,277 (93 percent) of the  1,369  NAMS sites were
operational and meeting the network design, siting, and  quality assurance
requirements of the regulations.  By the January 1, 1983 deadline, essentially
all of the SLAMS are expected to be in operation and in  conformance  with the
regulations.

         Table II-l.  National Summary of Air Monitoring Stations
Pollutants
TSP
S02
N02
CO
03
Pb
SLAMS
(including NAMS)
2710
779
460
475
640
328
NAMS
652
231
56
113
214
103
              TOTAL                  5392                1369

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                                    II-5
C.  AIR QUALITY MODELING

     An air quality model is a set of mathematical equations describing
the transport and dispersion of certain pollutant species, such as TSP,
S02, CO, etc., from emissions sources to prescribed receptor locations.
Chemical and physical transformations of pollutant species may be described
by additional equations.  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 categories.  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.

     Air quality models have been widely accepted, but there has also
been growing concern about their use.  This concern became evident at
several public hearings held in 1980 and 1981 to consider changes to the
modeling guidance.  The concern appears to stem from two areas.  First,
the move toward consistency in this highly technical field and the limited
effectiveness of the public hearing process for considering complex
scientific issues have led to dissatisfaction within the technical community
about the imposition of regulatory guidance.  In 1979, EPA entered into a
cooperative agreement with the American Meteorological Society for peer
scientific review of the modeling guidance.  The review was completed in
1981 and a final report was widely circulated.  EPA is developing plans
for or already has begun implementing many of the recommendations contained
in that report.  For example, a systematic evaluation of models was
recommended so that the accuracy and limitations of the models can be
adequately documented.  In response, EPA developed in 1981 a multi-year
plan to evaluate proposed and recommended models.  As performance evaluations
are completed, independent technical peer reviews will be conducted.

     The second basis for concern is the way in which estimated concen-
trations are employed in regulatory decision-making.  Estimated concentrations
are frequently used as the major, and in some cases as the sole, determinant
of (1) the permissibility of a new source, or (2) the acceptability of
certain levels of emissions from an existing source.  However, models
are perceived by many as being too imprecise to be the only basis for
such decision-making.

     In response to this concern, EPA has undertaken a program to determine
how best to treat model uncertainty in regulatory decision-making.  This
program was reflected in a workshop and subsequently the Second Conference
on Air Quality Modeling conducted by EPA in 1981.  The workshop and
conference were attended by many individuals, ranging from lawyers to
mathematicians, representing government, industry, consulting firms, and
environmental groups.  Issues such as the accuracy of models, quantification
of model uncertainty, and how best to use model  estimates in decision-making
were addressed.  Topics related to the technical review of modeling
guidance and the proper application of models were also considered.

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                                   II-6
However,  few technical  solutions were provided.   EPA's  program currently
is seeking resolution of these problems with the ultimate goal  of establishing
a more probabilistic basis for pollutant emissions  limits.   One example
of progress in this area is the expected exceedances  (ExEx)  method,  which
allows variability in fuel quality to be considered.   The use of the ExEx
method as a regulatory  policy is being reviewed.

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                  III.  AIR POLLUTION RESEARCH PROGRAMS

     Major changes in the way EPA's Office of Research and Development
(ORO) plans research to support development of air pollution control
activities took place in 1980-81.  ORO's air research program was divided
into four broad categories:  oxidants, mobile sources, gases and particles,
and hazardous air pollutants.  The research in each area is planned by a
Research Committee composed of ORD managers and representatives of EPA's
regulatory, regional, and enforcement offices.  Each Research Committee
plans the full range of research for the pollutants covered by the committee.
This research includes health and ecological effects, environmental processes
and effects, energy impacts, control technology, and monitoring.  This
discussion of research highlights for 1980-81 is divided along the lines
of the Research Committees.

     In addition, these four committees are complemented by the Energy
Research Committee, which assesses environmental effects of energy develop-
ment and the cost-effectiveness of control technologies for energy production
and consumption processes.  Research on acid deposition is planned in
conjunction with the Energy Research Committee.  Another major component of
the research program—control technologies for stationary sources—is
discussed in Chapter VI of this report.

A.  OXIDANTS

     The oxidants research program primarily covers ozone (03), nitrogen
dioxide (N02), and volatile organic compounds (VOCs), with secondary
attention devoted to other photochemical products such as nitric acid
vapor and peroxyacyl nitrates.

     Health Effects
     Clinical (controlled human) studies were conducted in 1980 and 1981  to
investigate the effects of 03 and NOg in a variety of situations including
the following:  healthy individuals subjected to heat,  humidity, and exercise
stress; subjects with chronic obstructive lung disease  at  rest  and  with
exercise; asthmatics challenged with a bronchoconstricting drug and N02;
adaptation to repeated exposures to 03 on successive days; and  subjects
exposed to a cold virus followed by 03 exposure. Various  endpoints  (mani-
festations of effects) were studied in these tests,  including pulmonary
functions (e.g., airway resistance), biochemical changes,  symptomatic
effects (e.g., cough, sore throat), and resistance to viral  challenge.

     Experiments on animals permitted investigation  of  effects  that could
not be examined in humans, including chronic effects due  to  long-term
exposures, direct observation of morphological  structural  damage to lung
tissue, and effects on the lungs of very young animals.   Substantial  work
also was done to enable the modeling and extrapolation  of  animal experiments
to human exposures.

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                                  III-2
     Epidemiology studies involving pulmonary function  tests  were conducted
in Los Angeles on healthy and asthmatic children.   Epidemiology  studies
were also conducted in the Texas Gulf Coast Area (Houston)  involving asthmatics
and runners.

     Environmental Processes and Effects

     The bulk of the work in this area focused on  the development and
validation of photochemical dispersion models for  use by  the  States  in the
development of SIP control strategies for 63.  Air quality  models under
development include urban models that treat a single metropolitan area and
regional models applicable to multi-State areas, allowing better treatment
of the long-range 03 transport problem.  Studies and assessments related
to the development and use of these and more simplified 03  models were
conducted.  These included the development of hydrocarbon emissions  factors
from vegetation, assessment of the impact of these emissions  on  03 concen-
trations, and the impact of stratospheric ozone intrusion on  ground-level
63 concentrations.

     Another major activity in the processes and effects  area involved
determining the effects, especially in terms of yield reduction, of  63 on
economically important crops.  Dose-response functions  for  various crops
were developed at field stations located in different areas of the country.
These will be used to estimate national economic losses for these crops due
to 03 pollution.

     Monitoring

     A remote sensing system was demonstrated for  use in  oxidant transport
modeling.  Also, the nationwide Air Pollution Background  Network was  operated
to obtain 03 measurments in national  forests.

     Different methods for monitoring nonmethane hydrocarbons were evaluated.
Optimum methodology was recommended for use in field measurements.  A
standard ultraviolet spectrophotometer was developed, designed,  and  tested
for use by Regions and States for calibration of existing ozone  measurement
devices.  A quality assurance (QA) progam was developed for operational
use. Data are now being obtained with improved precision  and  accuracy.
Operational support was provided to the Regions in the  Northeast Oxidants
Study (a multi-State study of the transportation of oxidants  across  State
boundaries).

     Scientific Assessment
     In 1980 and 1981  external  review drafts  of  the  updated  NOX  criteria
documents were reviewed by the  public and the Clean  Air Scientific  Advisory
Committee (CASAC), followed by  editing and preprinting  of  the  documents  in
1982.  Beginning in the spring  of 1981,  tasks were initiated to  update the
photochemical oxidants criteria document.

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                                  III-3

B.  MOBILE SOURCES

     The Mobile Sources research program contains studies to determine
the health effects of motor vehicle emissions with emphasis on diesel
exhaust and carbon monoxide (CO).  The program also develops methods  for
measuring unregulated pollutants in automotive exhaust and for measuring or
estimating actual population exposures to motor vehicle emissions.

     Health Effects

     A variety of studies were conducted to examine the carcinogenicity  and
mutagenicity of diesel particulate and whole diesel exhaust in several
animal species and in short-term bioassay systems.  Studies were begun to
develop bioassay techniques and protocols for identification of toxic
components in mobile source emissions and in fuels and fuel additives.
Work was also begun to develop advanced methods for investigating the
effects of carbon monoxide on humans with coronary artery disease.

     Environmental Processes and Effects

     Research was conducted to determine automobile emissions factors  for
over 60 individual hydrocarbon compounds in order to assess potentially
harmful constituents in auto exhaust.  Emissions factors for in-use light-
duty and heavy-duty diesels were also determined.  A smog chamber study
was conducted to determine the biological activity of diesel exhaust  under
simulated urban air conditions.

     Monitoring

     A study on CO intrusion into sustained-use vehicles (school  buses,
taxicabs, and police vehicles) mandated by the Clean Air Act was  completed.
The study identified major points of intrusion and developed recommendations
for abating the problem.  A pilot study measuring direct human exposure  to
CO by using personal air quality monitors was completed in preparation for
a full-scale study in 1982.  A field survey of CO concentrations  in commercial
settings in four California cities was completed, and a study of  the year-
round CO exposures of occupants of motor vehicles traveling on urban
arterial highways in California was completed.

     The Fuel  and Fuel Additives Registration Program continued to  register
all new fuel additive compositions.  A program to determine the precision and
accuracy of State and local CO measurements was instituted for use  in  trend
analysis.  Quality assurance for all CO monitoring studies was provided.

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                                   III-4
     C.  GASES AND PARTICLES

     Research on participate matter, sulfur dioxide,  and lead is carried
out in the gases and particles program.  This program also includes  studies
of the interactive effects of combining S02 and particles with other
pollutants such as 03 and N02.

     Health Effects
     Controlled human exposures were conducted to assess the effects of
particulate substances (alone and in combination with 03, N02,  and S02) and
S02 on lung function, immunology, and biochemical parameters after brief
(acute) exposures of healthy normal  adults.  Interactions of pollutant
effects with exercise, increased temperature,  and dosage with bronchocon-
strictor drugs were completed.  Results of combination exposures to pollutant
gases and the following particles were being finalized for publication:
sulfuric acid, ammonium bisulfate, ammonium sulfate,  and ammonium nitrate.
Results of the S02 study were published and included  in the criteria
document.

     The first phase of a problem definition study for epidemiological
investigations was completed.  In conjunction  with a  panel of experts, this
project identified problem areas in  current knowledge, and the types of
studies which offer a high probability of success if  conducted.

     Community health studies supported in part or planned in 1980-81
included portions of a six-city study sponsored by the National Institute
of Health, a Denver asthmatic study, a study in a western community with
high smelter emissions, and an examination of  neurotoxic effects in children
with high lead exposures.

     Animal studies were conducted which focused on a variety of fine mode
particles (mostly sulfates and nitrates) and some coarse particles.  In
addition, animal models for human diseases were developed, and development
of improved bases for extrapolation  of animal  work to humans is underway.

     Environmental Processes and Effects
     Research in the gases and particles  environmental  processes  and  effects
area in 1980-81  focused on the transport  and fate of SOg and particles,
model development, and the effects of particles  and S02 on  visibility,
agricultural crops, and materials.  A major field study was  conducted to
examine the conversion of gases to particles in  air pollution episodes.
This work supported the development of regional  and urban scale particle
models as well as source apportionment methods.   Work was begun on  developing
an improved consensus on complex terrain  models.   Data  was  gathered to
validate three visibility models, and the results of western and  eastern
studies of fine  particle effects on visibility were submitted for journal
publication.  The national crop loss assessment  network examined  dose
response functions for S02 alone and in combination with N02 and  03 on several
agronomic crops.

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                                   III-5
     Monitoring

     In 1980-81, new stations were added to the inhalable particle network
for a total of about 140 stations.  Additional  instruments were sited at
all stations to allow for increased analysis of mass size and chemical
composition. This information is useful  in considering revisions of the air
quality standards for particulate matter.  Finally,  a network of visibility
and fine particle monitoring stations provided  information needed to
determine current levels of visibility in Federal  Class I areas and sources
of visibility-impairing aerosols.

     A precision and accuracy progam for ambient and source monitoring
succeeded in substantially increasing the amount of  data received with
complete accompanying precision and accuracy information.  In addition,
quality assurance for NAMS and SLAMS sites continued, and work was continued
on the development of monitoring methods in support  of revised air quality
standards for particulate matter.

     Scientific Assessment
     The three-year task to revise and reissue an Air Quality Criteria
Document for Sulfur Oxides and Particulate Matter proceeded through  final
stages of completion during 1981.  A second external  review draft  of the
document was released for CASAC and public comment early  in 1981.   In
November 1981 the CASAC provided final advisory comments  on the scientific
issues.  Final editing and preprinting of the document will be carried out
in 1982.

0.   HAZARDOUS AIR POLLUTANTS

     The pollutants covered by the hazardous air pollutant  (HAP)  research
program are those air pollutants that are either currently  regulated or
are potential candidates for being regulated under Section  112 or  Section
lll(d) of the Clean Air Act.

     Health Effects
     Development and application of microbial  and  mammalian  cell  bioassays
for detection of mutagenic/carcinogenic activity  in  ambient  air continued
to be used in the identification of gaseous  or particle-associated  organics
that may be of public health concern.  Additional  efforts  were  devoted  to
the evaluation of selected HAP substances  for  tumorigenic  and mutagenic
effects in mammalian animal  species.

     During 1980-81  testing methods were developed,  validated,  and  applied
to the detection of adverse effects in the following areas:   (1)  teratogenic,
reproductive, and related endocrine effects;  (2) neurotoxic  and behavioral
effects; and (3) pulmonary,  immune system, and respiratory disease  effects.

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                                  III-6
     Two studies were completed in which selected reproductive parameters
were observed in male laboratory rats after exposure to a toxic compound.
Results from these studies indicated that the age of the animal at the time
of exposure is related to the degree of damage found in the reproductive
system.

     An animal infectivity model using intratracheal exposures also was
verified for use as a rapid and inexpensive method for screening hazardous
air pollutants prior to more intensive toxicological evaluation.

     Environmental Processes and Effects

     Work in this area included field measurements in Houston, St. Louis,
and Denver for 44 potentially hazardous air pollutants.  A separate study
reported on the atmospheric half-life of the same 44 pollutants.  An effort
was begun in 1980-81 to bring together the significant body of information
currently available to characterize the burden of hazardous air pollutants
in the ambient environment.  The major purposes of the study are to (1)
uncover published and unpublished data, (2) assess the quality of the data,
(3) compile and process the data, and (4) determine data gaps.

     Monitoring

     Materials for quality assurance were tested for stability and produced
for distribution to various laboratories.  Long-term stability tests are
underway on standard reference materials for toluene, chloroform, chloro-
benzene, carbon tetrachloride, and vinyl chloride.

     During 1980-81, work was completed on several source and ambient
measurement methods for hazardous air pollutants.

     As part of an ongoing monitoring program, glass fiber filters are
routinely analyzed for hazardous elements and compounds such as arsenic and
benzo(a)pyrene (BaP).  The glass fiber filters are sent to EPA for analyses
by State and local control agency personnel.

     Scientific Assessments
     A comprehensive health assessment document  on  cadmium was  compiled,
issued, and is being used to support  decisionmaking on  whether  to  list
cadmium as a hazardous air pollutant.   Draft  reports  on carcinogenic  and
noncarcinogenic health effects associated with  arsenic  were submitted
for Science Advisory 8oard (SAB)  review.   Evaluation  of the carcinogenic
effects of arsenic and SAB comments  on the subject  were the principal
scientific bases used to support  the  listing  by  EPA of  inorganic arsenic
as a hazardous air pollutant.   In addition, draft comprehensive health
assessment documents were prepared on  the following air pollutants: methylene
chloride, methyl chloroform, fluorocarbons 113,  trichloroethylene, toluene,
perchloroethylene, vinylidene  clhloride,  and  acrylonitrile.

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                                   III-7
E.   ACID DEPOSITION

     The potential environmental problems posed by acid deposition have
received much attention over the past few years.  In order to help clarify
the scientific issues involved, the interagency acid deposition research
budget has grown from $11 million in FY 1980 to $13 million in FY 1981.

     Research sponsored by EPA already has contributed significantly  to a
better understanding of the acid deposition problem.  Important accomplish-
ments in acid deposition research in 1980-81 include:

     - Surveys to evaluate the extent of the acidification of lakes by  acid
precipitation in the mid-Atlantic, New England, and upper midwest States
were initiated.  These data are needed to establish the magnitude of  the
acid precipitation problem.

     - Results from rainfall simulation studies indicated, under certain
conditions, that the growth of certain cultivars (soybeans and pinto  beans)
were inhibited by simulated acid precipitation, but other cultivars were
unaffected.

     - Comprehensive statistical analyses were performed on three years of
acid precipitation monitoring data.  There was a pronounced seasonal  variation
of key pollutant species, e.g., sulfate, acidity, dissolved S02, and
ammonia. Also, there was a pronounced spatial  dependence of these pollutants
within the network.

     - Several linearized long-range transport models  to predict atmospheric
concentrations and deposition of acidic materials, with particular emphasis
on S02 and sulfates, were developed and evaluated with data from field
experiments and precipitation chemistry networks.   The evaluations showed
that these models cannot be used for source-receptor predictions.  Refinement
of these models and the development of more sophisticated models, which
include sulfur, nitrogen, and hydrocarbon/oxidant chemical cycles, were
continuing in order to provide the necessary tools for decision-making  and
assessments.

     - An expanded acid deposition monitoring network  (Australia, Venezuela,
Alaska, Colorado, Bermuda, and Amsterdam Island) was established.

     - A national acid precipitation data system was established and  is
entering data from several networks, including the Canadian Network for
Sampling Precipitation (CANSAP), the MAP3S/RAINE, and  the National Acid
Deposition Program (NADP).  The system will  allow EPA  and others to better
understand and analyze acid deposition problems.

     - A survey and investigation of the effects of acid precipitation  on
marble, using tombstones in the National Cemetery system as exposure  samples,
was initiated.

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                                 III-8
     - A study of past and current pH and  chemistry  of  surface  and  ground
water supplies of drinking water in New England  and  New York was  initiated.
This project was designed to help provide  a better understanding  of  a  potential
human health concern—the effect of acid precipitation  on  drinking water.

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        IV.  DEVELOPMENT OF NATIONAL AMBIENT AIR QUALITY STANDARDS
     The 1977 Clean Air Act amendments required EPA to review and  revise,
if necessary, all of the national ambient air quality standards  (NAAQS).
Reviews of five of the seven NAAQS were in progress during the 1980-81
period.

     In 1980-81, there were significant changes and improvements  in  the
procedures for reviewing the NAAQS as a result of the new and expanded  role
of the Clean Air Scientific Advisory Committee (CASAC).   The CASAC is  a
panel of independent scientists established by the 1977  Clean Act  amendments
to advise the EPA Administrator on the adequacy of the scientific  basis for
the NAAQS.  In addition to reviewing the criteria document which assembles
and assesses all the relevant studies on the health and  welfare  effects of
a pollutant for which a NAAQS will be established, the CASAC also  reviews
an EPA staff paper which interprets the critical  studies in the  criteria
document for use in the standard-setting process.  The staff paper has
evolved to present a range of values which the staff and the CASAC feel
are most appropriate for selecting the level of the standard based on the
scientific evidence available.  The expanded CASAC role  in the NAAQS process
has improved the inputs of the scientific community and  provided better
guidance to the Administrator in selecting a final standard level.

     In 1980, a revised carbon monoxide (CO) criteria document was published.
The staff paper evaluating the critical studies in the CO criteria document
was reviewed and was concurred on by CASAC, and revised  standards  were  pro-
posed on August 18, 1980.  EPA proposed to retain the current 8-hour standard
at 9 ppm and make adjustments to the 1-hour standard and to the  statistical
form of the standard.  Hearings were held on the proposal in 1980, and
further analyses of alternative levels and forms  of the  standard were
conducted in 1981.  Final promulgation of revised CO standards is  expected
in 1983.

     In 1980 and 1981, CASAC reviewed the nitrogen oxides (NOX)  criteria
document and concurred on the scientific adequacy of the document.  In
late 1980, CASAC also reviewed an initial  draft of the staff paper inter-
preting the evidence in the criteria document for use in revising  the
NAAQS.  Two additional meetings were held by CASAC in 1981  to review revised
drafts of the staff paper.  CASAC has concurred on the adequacy of the  NOX
staff paper, and the agency is proceeding with preparation of the  regulatory
impact analyses.  Proposal is expected in 1983.

     In 1980, CASAC reviewed the initial  draft of a combined criteria
document for sulfur oxides (SOX) and particulate  matter  (PM).  The revised
criteria document was reviewed by CASAC in July 1981  and found to  be generally
adequate as the basis for rulemaking on the standards.   An initial draft
of the PM staff paper was reviewed by CASC in July 1981,  and a revised

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                                    IV-2
draft was reviewed November 1981.  Extensive analyses  of cost
and economic impacts as well as the benefits of alternative PM standards
were conducted in 1980 and 1981,  CASAC has concurred  on the PM staff paper,
and proposal of revised NAAQS for PM is expected in 1983.  Staff paper
review for S02 will be completed in 1982,  and proposal  of revised SOX
standards, if necessary, will occur in 1983.

     A staff review document on vapor phase hydrocarbons was reviewed
and received CASAC concurrence in early 1981, including concurrence with
the main conclusion that no significant health or ecological effects are
associated with such hydrocarbons, as a chemical class, at existing U.S.
ambient air levels.  In June 1981, EPA proposed to revoke the current
NAAQS for hydrocarbons (which was originally established as a guide for
attaining the NAAQS for photochemical oxidants) on the  basis that it is  no
longer appropriate and that there are now  much more sophisticated techniques
available for designing control strategies for photochemical oxidants
(ozone).  *

     Also in 1980 and 1981, the agency continued its efforts to develop
methodologies for using risk assessment in setting NAAQS, as has been sug-
gested by a number of groups, including the National Commission on Air
Quality.  The risk assessment program has  been reviewed on several occasions
by a subcommittee of EPA's Science Advisory Board.

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               V.  STATUS OF STATE IMPLEMENTATION PLAN (SIP's)

A.  STATE IMPLEMENTATION PLANS

     In the 1970 amendments to the Clean Air Act, Congress  directed  EPA  to
establish primary national ambient air quality standards  (NAAQS)  to  protect
the public health and secondary NAAQS to protect  the public welfare  and
directed the States to develop and adopt State Implementation  Plans  (SIP's)
to attain and maintain the standards.  EPA was given responsibility  for
reviewing SIP's and either approving them or disapproving them and,  if
necessary, promulgating substitutes.

     In 1971, EPA promulgated NAAQS for sulfur oxides, particulate matter,
carbon monoxide, ozone (originally called photochemical  oxidants), and
nitrogen oxides.  SIP's were developed and placed into effect.  Under
statutory deadlines, the NAAQS were to have been  attained in most areas  of
the country by 1975, with some extensions until  1977.

     By 1976 it became apparent that, despite significant progress,  SIP's
were inadequate to achieve the NAAQS in many areas of  the country.   EPA
therefore issued numerous calls for States to revise their  SIP's  to  provide
for attainment.  Questions also arose as to whether and under  what circum-
stances new stationary sources might legally be  permitted to construct in
areas where the NAAQS were not being met.  In response to these questions,
EPA published its emissions offset interpretive  ruling, which  allowed new
construction in areas where NAAQS were violated,  as long  as stringent
conditions were met that would assure further progress toward  attainment
of the standards.

     In August 1977, Congress amended the Act to  (among other  things)
establish a statutory approach to permit growth  in polluted areas while
requiring attainment of the NAAQS by specific deadlines.  Congress first
instructed each State to list those areas where  NAAQS  were  still  not  attained
as of August 7, 1977 (nonattainment areas), and  instructed  EPA  to promulgate
the list of nonattainment areas with any necessary changes. Each State
with nonattainment areas then had to submit a SIP revision  by  January 1,
1979, providing for attainment of NAAQS as expeditiously  as practicable
and for primary standards no later than the end  of 1982 (or the end  of
1987 for areas with particularly difficult ozone  or carbon  monoxide  problems
and which met certain other requirements).  Congress also provided that
EPA's offset ruling would govern new source construction  until  July  1,
1979, after which date proposed major sources were to  be  reviewed under
the provisions of a revised SIP that meets the requirements of  Part  D of
the Act.

     A list of nonattainment areas was promulgated on  March 3,  1978,  with
some subsequent modification.  For these areas,  States were to  submit
adopted SIP revisions to EPA for approval by January 1,  1979.

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                                    V-2
     Through December 1981,  all  52 States  and Territories  whose plans  were
due January 1, 1979, have officially submitted partial  or  complete  plans.
Thirty-eight States have complete submittals.  Thirteen States  and  one
Territory have submitted partial plans:   Alabama,  Kansas,  Pennsylvania,
Indiana, Minnesota, Idaho,  Tennessee,  Arizona, Guam,  California,  Maryland,
Iowa, Nebraska, and Hawaii.   Plans were  not required  for North  Dakota,
American Samoa, the Virgin  Islands, and  Northern Mariana Islands.

     Notices of proposed rulemaking for  50 States  had been published through
December 1981.  A notice of  proposed rulemaking had not been  submitted
either for Hawaii or for Guam as of that date.

     Final action has been  taken by EPA  on 31 complete  nonattainment plans.
Twelve--Wyoming, Mississippi, Arkansas,  Vermont, Puerto Rico, New Jersey,
Georgia, North Carolina, Oregon, Virginia, South Dakota, and  the District
of Columbia—were approved.   Sixteen plans have been  approved with  certain
conditions: Colorado, South  Carolina,  Louisiana, Maine, Delaware, Florida,
New Hampshire, Connecticut,  West Virginia, Rhode Island, Massachusetts,
Michigan, New Mexico, Texas, Washington, and Nevada.   Three States—Montana,
Kentucky, and Utah—had most of  their  plans approved  with  portions  disapproved.

     Seven more States have  made complete  submittals,  and  EPA has taken  final
action on portions of their  plans.  These  States are  Wisconsin,  New York,
Illinois, Oklahoma, Alaska,  Missouri,  and  Ohio.

     The SIP's address the  nonattainment areas for all  of  the criteria
pollutants, but particular  attention is  given to total  suspended particulate
(TSP), ozone (03), and sulfur dioxide  (S02).  For  TSP,  the fugitive dust
problem has received particular  attention  in a number of States.

     Fugitive dust is a problem  because  of its pervasiveness  and the
difficulty in quantifying and identifying  the problem.   Fugitive  dust
includes windblown particulate from agricultural land,  unpaved  roads,  and
exposed areas at construction sites, as  well as particulate matter  re-entrained
into the air by automotive  disturbance of  street dust  and  by  tilling of
crop land.  Where fugitive  dust  causes or  contributes  to particulate matter
violations, SIP's must include sufficient  controls to demonstrate reasonable
further progress and attainment  of the standard by the  required  date.
SIP's from these areas must  contain adopted reasonably  available control
technology (RACT) requirements for traditional sources  and either adopted
requirements or schedules for study and  subsequent adoption of  requirements
for nontraditional sources.

     For ozone and CO plans, the major issues that emerged from analysis of
the SIP's were the control  of volatile organic compounds from stationary
sources, inspection/maintenance  (I/M)  of automobiles,  and  transportation
controls.  I/M, in particular, generated a great deal  of discussion in
certain parts of the country. A discussion of the status  of  I/M  programs
at the Federal, State, and  local levels  will be found  in Chapter VII of
this report.

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                                    V-3
     In October 1978, EPA promulgated a national  ambient  air quality  standard
for lead.  After promulgation, the States had nine months to prepare  and  sub-
mit to EPA plans for attainment of the standard by October 1982 or,  if  an
extension was granted, October 1984.  Through December 1981, 30 lead  SIP's
have been formally submitted to EPA.  Of these, EPA has published final
rulemaking notices approving 15 and has proposed approval of six.  In
addition, six lead SIP's have been forwarded to EPA in draft form.   Lead
SIP's from 20 other States are in various stages  of completion.

     In a significant number of cases, attainment of various national  ambient
air quality standards by the deadlines prescribed in the  1977 Clean Air Act
Amendments has not been possible, even though the States  have made  good-faith
efforts to do so.  EPA has attempted to be as flexible as possible while
at the same time aggressively pursuing the attainment of  standards  in
these areas.  Even so, certain nonattainment areas are expected to exist
for some time in the future, and these areas will be subject to various
sanctions under the current Act.

B.  PROCESSING OF SIP REVISIONS

     The time needed to review and process SIP revisions  received a  consi-
derable amount of attention in 1981.  It was found that the typical  review
and processing procedure for a SIP revision took  approximately 220 workdays
and involved 24 steps.  Because of the time and administrative complexity
involved, an inventory taken in 1981 found almost 650 revisions waiting to
be processed.  Additional delays can, and do, occur during the review
process.  These delays may last anywhere from one day to  more than one
year, depending upon the relative complexity and  controversial  nature of
the SIP revision.

     As an initial response to these problems, three improved SIP processing
procedures were implemented in three EPA Regional Offices in the spring of
1981.  These procedures were designed to be compatible with the Clean Air
Act, while at the same time eliminating unnecessary Federal  involvement in
the SIP process.  The first procedure is an internal  EPA  approach to  the
elimination of duplicative agency review.  It involves 22 steps and takes
approximately 203 workdays.  This processing procedure saves 2 steps
and 17 workdays compared to the typical review and it reduces the potential
for friction between the State and EPA by eliminating a final  Headquarters
review on actions that do not receive comments or change  significantly
during the proposed rulemaking.

     The second procedure affects the immediate final rulemaking process.
It involves 13 steps and takes approximately 90 days, a saving of 11  steps
and 130 workdays.  This procedure avoids duplicative EPA  reviews by going
directly to final rulemaking with noncontroversial  SIP revisions.  A  non-
controversial SIP revision is one that is determined to be of limited
impact, and no adverse or critical public comments  are anticipated because
of it.  The Federal  Register notice promulgating  the action does not  become
effective for 60 days, which provides opportunity for comments  in the
unlikely event there should be any.

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                                    V-4
     The third procedure is parallel  processing.   This  procedure is  most
promising for major SIP revisions and couples early EPA commitments  with
minimal processing frictions.  Using this procedure, EPA works more  closely
with the State as it develops a major regulation  and proceeds  through  the
State rulemaking process.  EPA rulemaking is carried on simultaneously
with the State's process.  Ideally, the State and EPA propose  the regulation
at the same time, announce concurrent comment periods,  and jointly review
the comments.  Thus, the time between State submittal and final  Federal
promulgation is decreased considerably.

     Experience with these improved SIP review procedures in a limited
number of Regions showed that resource and time savings were possible.
Therefore, the application of the three procedures was  expanded to include
all EPA Regional Offices on July 22,  1981.  This  decision was  announced to
the public in the Federal Register on September 4, 1981 (page  44477).
Since the expansion of the program to all Regional Offices in  July 1981,
approximately 38 percent of the SIP revisions processed used these improved
procedures.

C.  EMISSIONS TRADING

     One of EPA's major activities during 1980-81  has been to  develop  and
implement the bubble policy,  the offset policy, and emissions  banking  and
trading.  These concepts are  generally referred to as emissions  trading.
Implementation of these concepts by industry has  the potential  to result  in
significant economic savings  and promises to reduce substantially the  cost
of attaining and maintaining  the NAAQS.

     The emissions offset policy has  been available to  industry  for  several
years and continues to provide access for new industry  into nonattainment
areas.  To date, there have been over 1,000 offset trades with 95 percent
of the trades being within-firm transactions.

     The bubble policy, originally published December 11, 1979,  has  become
a capstone for much of EPA's  regulatory reform initiatives. During  the
past two years, nearly 100 firms applied to EPA to use  the bubble policy.
By the end of 1981, 20 applications had been approved and 3 others had
been proposed for approval.  Average  savings for  each bubble has  been
estimated to exceed two million dollars.

     During 1980, bubble policy implementation efforts  focused on developing
EPA Regional  expertise, assisting States and localities in learning  about the
policy, and working with industry and environmental  groups to  understand  the
policy and how it could be used to achieve environmental  and cost-cutting
objectives.  Also, certain impediments in the policy were identified and
changes were considered in order to facilitate its use  by industries and
State programs.

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                                    V-5
     During 1981, full implementation of the bubble policy was underway.
Also, several problem areas in the policy noted in 1980 were resolved
through changes in the bubble policy.  The most notable was the approval
of New Jersey's volatile organic compound (VOC) generic bubble regulation.
This regulation allows New Jersey to review and approve a source's  alternative
VOC emissions control plans without submittal  to EPA as a case-by-case SIP
revision.  Since EPA's approval of this generic regulation, approximately
18 sources have completed New Jersey's review  process.   Several other
States are considering regulations similar to  New Jersey's and some are
considering generic regulations for other pollutants.

     EPA's banking program credits firms for surplus emissions reductions
and establishes the legal and administrative basis for  certifying and using
these emissions reduction credits (ERC's).  ERC's can be "banked" (stored),
used in bubble applications to cut the cost of meeting  current or future
control requirements, used as offsets to promote economic growth in areas
not meeting national air quality standards, or used in  "netting" to avoid
new source review.  ERC's can ease trades between firms, provide the basis
for a functioning market, and cut compliance costs because they encourage
cheap ERC's to be produced at optimal times.  Banking systems  also  provide
the certainty needed for firms to invest in ERC's--creating a  pool  of
readily available credits that makes trading easier while assuring  progress
toward clean air.

D.  OZONE AND CO NONATTAINMENT POLICY

     Congress, in Section 172(a)(2) of the Clean Air Act, provided  for
extensions of the attainment date to December  31, 1987, for areas unable
to demonstrate attainment of either the carbon monoxide or ozone national
ambient air quality standards by December 31,  1982.  The statutory  provisions
accompanying these extensions require that any area granted such an extension
must submit to EPA for approval by July 1, 1982, a SIP  revision which
demonstrates attainment of these standards.   In order  to assure consistency
of these submissions and to ensure all areas granted extensions were
aware of the statutory requirements, EPA published on September 30,  1980,
a draft policy for the submission of implementation plan revisions  to meet
the requirements of the Act.  Public comment was solicited for a period of
60 days.  Responses were received from a total of 58 organizations  including
State and local air pollution control agencies and private industry.  EPA
evaluated all comments received and, based upon the concerns addressed and
the statutory requirements, published on January 22,  1981, the final policy
on the submission of implementation plan revisions to attain the NAAQS for
carbon monoxide and ozone.

     This policy specifies the basic procedures to be used in  preparing
the SIP revision and the basic elements to be  incorporated in  the SIP,
including discussion of control strategies and attainment demonstrations,
the SIP development process, air quality and emissions  data bases,  and air

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                                   V-6
quality modeling.  To assist States in understanding the policy,  EPA held
workshops in October 1980 and in March and April  1981  on data collection,
emphasizing the basic SIP requirements and the modeling analyses  to be
performed.  The workshops were attended by nearly all  affected State agencies
and many affected local planning and air pollution control  agencies.

E.  PREVENTION OF SIGNIFICANT AIR QUALITY DETERIORATION

     Part C of the Clean Air Act requires the prevention of significant
air quality deterioration (PSD) in those areas of the  country which have
air quality better than the national ambient air  quality standards.
Under the PSD requirements, such clean air areas  are classified into
three categories.  Allowable degradations in air  quality above baseline
levels are called increments.  Increments exist only for S02 and  particulate
matter.  For these pollutants, the Clean Air Act  established specific
allowable increments of pollution that vary according  to the classification
of the area.

     The PSD review process, which began in June  1975,  focuses on major
new sources and major modifications.  Construction of  major new sources,
although few in number, comprises most of the emissions attributed to
new construction each year.

     Under the current PSD program, major new sources  and modifications
are reviewed to ensure that best available control  technology (BACT)
(determined on a case-by-case basis) will be employed.   An  air quality
review is also necessary for such sources.  These air  quality reviews
typically require an analysis of the source's impact on the applicable
NAAQS, on soils, vegetation, and visibility (termed air quality related
values), and, for particulate and S02 sources, on the  respective  PSD
air quality increments.

     During 1979, EPA's then existing PSD regulations  were  upheld in
part and overturned in part by the U. S. Court of Appeals for the District
of Columbia Circuit.  Alabama Power vs. Costle, 636 F.2d 323.  This led
to the August 7, 1980, amendments to the PSD regulations.  These  include
changes in determining applicability and in requirements for air  quality
monitoring, BACT applicability, and calculation of increment consumption.

F.  TALL STACK REGULATIONS

     Section 123 of the Clean Air Act requires that an  emissions  limitation
not be affected by so much of the stack height as exceeds good engineering
practice or by any other dispersion technique. That section also requires
the Administrator to promulgate regulations to implement this requirement.
Those regulations were originally proposed January  12,  1979.  Based on
public comments and pursuant to actions of the U. S. District Court for
the District of Columbia [see Sierra Club vs. Gorsuch,  Civil Action
81-0094 (August 1981)], the agency reproposed the regulations in  1981.
The reproposal concentrated on the setting of a good engineering  practice
(GEP) stack height for use in setting emissions limitations.

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                                   V-7
     The proposed regulations included three steps to determine GEP stack
height.  First is the de minimis height of 65 meters (213 feet).  This
height assures that typical ground-level  meteorology found at all  locations
will not cause excessive concentrations of pollutants due to downwash.
Second, for sources with large nearby structures,  a formula was derived
to account for downwash caused by these structures.  The formula is
based on traditional engineering practices, with the GEP stack height
determined using the dimensions of nearby structures.  Third, if stack
exit gases are influenced by downwash created by terrain features  or by
unusually shaped structures, a fluid modeling analysis  or field study of
the source can be used to determine GEP stack height.  The GEP stack
height is used in a mathematical model to determine the source's emissions
limitations.  Final stack height regulations were  promulgated in February
1982.

G.   VISIBILITY

     Section 169 A 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 for the protection of mandatory Class  I Federal areas  to
revise their State Implementation Plans to meet  requirements for the
protection of visibility.  These States would have to (1) develop  a
program to assure reasonable progress toward the national visibility
goal; (2) determine whether certain existing stationary facilities should
install the best available retrofit technology (BART) controlling  those
pollutants which impair visibility; (3) develop, adopt, implement, and
evaluate long-term strategies for making reasonable progress toward the
national goal; and (4) adopt certain -measures regarding visibility impacts
on Federal Class I areas which will supplement the State's new source
review program.

     The phased approach of these regulations will limit the amount of
resources States will have to expend on revising their  SIP's to meet the
requirements for visibility protection.  Preliminary indications are
that few, if any, existing stationary facilities will be required  to
install BART under Phase I of the program.  An acceptable long-term
strategy, which is the one major requirement applicable to all 36  States,
already exists within the framework of other ongoing air programs  for
most States, and the new source review requirement of these regulations
builds upon new source review programs the State is required to implement
under the PSD and nonattainment provisions of the  Act.   To assist  States
in understanding these regulations, EPA held three workshops in March 1981.

     A total of 36 States were required to submit  SIP revisions for
visibility by September 2, 1981.  EPA had not received  any visibility SIP
revisions by the end of 1981.

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                                   V-8
     In 1981, subsequent to the promulgation of the visibility regulation,
ten organizations filed for judicial  review of the visibility  regulations.
In addition, six organizations filed  petitions for administrative  recon-
sideration of the rules.  Judicial  review has been delayed pending the
agency's evaluation of the administrative petitions.

H.   PERMIT FEE GUIDELINE

     In September 1981, EPA published and distributed a  permit fee
guideline.  The guideline was developed in response to the amendments  of
1977 which set forth a requirement  that States collect fees  for permits
granted to major stationary sources.   The guideline is especially  designed
for agencies that have no functioning fee system—about  half of the
States.  Agencies currently implementing fee systems  also  may  find the
document useful for evaluating and  upgrading their existing  systems.

     The guideline includes a review  of the Clean  Air Act  requirement
for permit fees, legislative history  and relevant  court  cases, costs to
be considered, basic program implementation considerations,  and examples
of fee systems currently in effect  around the country.

I.   TRANSPORTATION CONTROL MEASURES

     During 1980 and 1981, EPA continued to provide technical  assistance
to State and local agencies preparing the transportation elements  of
their 1982 SIP's.  Handbooks on analytical techniques were distributed,
and workshops on transportation air quality analysis  and mobile source
emissions inventory preparation were  held.  Local  agencies completed
their emissions inventory work during 1981 and were in the process of
analyzing alternative transportation  measures for  inclusion  in their
1982 SIP submittals.

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               VI.  CONTROL OF STATIONARY SOURCE EMISSIONS

A.  NEW SOURCE PERFORMANCE STANDARDS (NSPS)

     The Administrator is required by the Clean Air Act to establish
national standards of performance for source categories that may  cause
or contribute "significantly to air pollution which may reasonably  be
anticipated to endanger public health or welfare."  Such standards  apply
to new and substantially modified sources and are generally referred  to
as new source performance standards (NSPS).

     The 1977 Clean Air Act Amendments  required that the remaining  major
sources for which NSPS had not been published be identified within  one
year, and that NSPS for these sources be established over the next  four
years.  EPA has not found it possible to meet this rigid schedule but
expects to have standards in place for more than half the identified
sources by 1984.

     The list of remaining candidate sources was published in August  1979.
It included 64 categories and subcategories for which NSPS had not  yet been
published.  Preparation of the list required an investigation of  many more
potential sources.  Criteria for prioritization on the published  list
were: (1) magnitude of source emissions; (2) ability of the industry
to move to areas with less stringent control regulations; and (3) growth
in new facilities within the industry.   Since the list was published,
work has begun on all source categories.  More intensive analyses of
some source categories indicated that standards development should  not
be pursued, because few or no new plants are expected to be constructed.
In January 1982, twelve such source categories were to be removed from
the list.  Other source categories are  under review and may be removed
at a later date.

     During 1980 and 1981, standards were promulgated for four categories:
(1) auto assembly plants; (2) glass manufacture; (3) ammonium sulfate
production; and (4) storage tanks for petroleum liquids.  Standards were
proposed for 12 categories.  Six existing standards were reviewed and
decisions to revise four were announced.  Of the 12 recently proposed
standards, nine will  limit emissions of volatile organic compounds  (VOC)
which are precursors to the formation of photochemical  oxidants in  the
atmosphere.  Most of the standards proposed prior to 1980 were designed
to control emissions of particulates,  sulfur dioxide,  and nitrogen  oxides.
A large fraction of the standards scheduled for future promulgation
will limit VOC emissions.

B.  NATIONAL EMISSIONS STANDARDS FOR HAZARDOUS AIR POLLUTANTS (NESHAP)

     In 1980, the agency listed inorganic arsenic and  radionuclides as
hazardous air pollutants under Section  112 of the Clean Air Act.  These
are the sixth and seventh pollutants to be so listed since Section  112 was
enacted in 1970.

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                                   VI-2
     Standards development work continued for coke oven emissions  sources
in the iron and steel industry and for major Denzene emissions  sources
in the chemical and petroleum industries.  Regulations  were proposed  in
1980 for four source categories of benzene emissions: maleic anhydride
manufacturing, ethylbenzene/styrene manufacturing, and  benzene  storage
and fugitive leaks of benzene in petroleum and chemical plants.  A public
hearing was held and public comment received.

     In 1980, the Science Advisory Board (SAB) reviewed carcinogen
assessments for acrylonitrile, methyl  chloroform,  methylene chloride,
perchloroethylene, trichloroethylene,  and toluene.  The SAB requested
considerable expansion of those documents.  In late 1981,  the agency  was
nearing completion on revised health assessment documents  for these and
several other substances for SAB review in 1982.

C.  RESEARCH AND DEVELOPMENT OF AIR POLLUTION CONTROL TECHNOLOGIES FOR
    STATIONARY SOURCES

     The overall purpose of the stationary source  air pollution  control
research and development program is to assure that cost-effective  pollution
control technologies are available for stationary  sources.   Outputs of
the program support regulatory standard-setting activities  and  provide
information to industry for solving air pollution  problems.

     In the oxidants area, 1980-81 research activities  were directed  at
nitrogen oxides (NOX) and VOC emissions from various sources.  The NOX
program focused upon combustion modification as the most cost-effective
means of reducing NOX emissions.  A smaller program in  flue gas  treatment
maintains an awareness of Japanese dry NOX control methods  and  the
private sector developments in the United States.   A new element in this
program is the limestone injection/low NOX burner  which provides
simultaneous SOX/NOX control.  This system could  reduce the cost of
SOX control by 50 percent while removing 50-70 percent  of  the SOX  and
50-70 percent of the NOX if the development efforts are successful.

     Accomplishments in the NOX research program  include:

     - Installation of a low NOX burner in an industrial coal-fired boiler.
The program goal is to reduce NOX emissions from pulverized coal-fired
industrial boilers to 0.2-0.3 Ibs of NOX per million Btu heat input (a
70-80 percent reduction from uncontrolled emissions).

     - Completion of a pilot scale evaluation of a new  heavy  oil burner
for use in oil field steamers.  This burner is capable  of  reducing NOX
emissions to less than 100 ppm.

     - Continuation of a bench scale evaluation of the  effectiveness of
combined SOX/NOX control based upon the addition of limestone to the coal
prior to combustion in low NOX burners.  Initial results are  promising,
and plans are being made to move one process toward pilot  scale evaluation.

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                                   VI-3
     - Initiation of long-term testing of the rich fireball-low NOX concept
on a tangentially fired boiler.

     - Initiation of long-term testing of a low NOX burner on a wall-fired
boiler.

     A number of research programs directed at control  of VOC sources were
undertaken in 1980-81.  Accomplishments in this area include:

     - An evaluation of control techniques such as activated carbon for
reducing hydrocarbon emissions from textile finishing plants.

     - An evaluation of the use of supercritical  fluid carbon dioxide to
regenerate activated carbon used to control volatile organic compound
emissions.
     - A study of catalytic incineration of organic vapors from industrial
sources.

     - Determination of the frequency of hydrocarbon fugitive emissions
in the synthetic organic chemical manufacturing industry.

     - An evaluation of techniques to minimize volatile organic chemical
emissions from solvent degreasing operations.

     - Design, fabrication, and operation of a pilot wet scrubber utilizing
surfactant chemicals to evaluate the control of solvents from painting
operations.  The results were positive and an industrial demonstration
is planned.

     - A study of the effectiveness of flares for VOC control.   Means of
improving this technique were determined.

     - A study of the capture efficiency of hoods in industrial applications
such as painting and solvent degreasing.

     - Refining of sampling methods to enable a better  evaluation of  fugitive
emissions from petrochemical plants.

     - Emissions studies to determine the fugitive emissions of volatile
organic compounds from synthetic organic chemical manufacturing plants.

     - A study of thermal incineration processes  to determine their
effectiveness in burning vapor phase organic chemicals.

     Research efforts were also directed in 1980-81  at  various  point  sources
of sulfur dioxide (S02) and particulates.  Accomplishments in this  area
include:

     - Completion of a full-scale, adipic acid testing  program.  Preliminary
data indicate performance improvement from 70-93  percent S02 reduction by  the
addition of relatively small amounts of adipic acid.  Adipic acid-enhanced
technology for wet FGD-1imestone systems was successfully demonstrated
at both an industrial and a utility scale site.

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                                   VI-4
     - Completion of the long-term evaluation of the dual alkali scrubbing
process.

     - Completion of a state-of-the-art review of dry S02 control  processes.
These systems appear to offer significant economic and energy advantages over
conventional wet scrubbing processes.

     - Completion of a preliminary evaluation of a pilot scale electrostatic
precipitator precharger.  The data demonstrated enhanced particulate removal
at reduced capital cost.

     - Successful pilot demonstration of the reverse air mode of electrostatic
enhancement of fabric filters (ESFF technology) on an industrial coal-fired
boiler.

     - Verification of the tri-electrode, two-stage pilot electrostatic
precipitator (ESP).  The 30,000 acfm pilot plant at a TVA power plant  shows
that an emissions level of 0.03 Ibs of particulate per million Btu can
be met with about 40 percent less ESP plate area than is required  using
a conventional precipitator.

     - Publication of a report on the feasibility of smelter weak  SO?
stream control.  The report analyzed all technologies currently available
for S02 control.

     - Completion of a study of foreign technology to control emissions at a
secondary lead smelter.

     - Demonstration of particulate controls for open sources in steel
plants.  A charged fogger was evaluated at two steel plants, and a test
report and users manual were published for each demonstration.

     Research efforts in 1980-81  also were directed at point sources of
hazardous air pollutants.  Accomplishments in this area include:

     - Completion of an assessment of atmospheric emissions  from petro-
chemical production processes with emphasis on fugitive emissions.

     - Publication of an evaluation of innovative seals for  benzene storage
tanks.

     - Determination of the frequency of fugitive emissions  such as benzene
in the organic chemical manufacturing industry.

     - Completion of an environmental assessment for coal  preheaters for
steel manufacturing.

     - An assessment of the ferroalloy industry.

     Research efforts in 1980-81  also were undertaken in the synfuels  area.
Accomplishments in this area include:

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                                   VI-5
     - Completion of overall evaluations of air emissions from commercial
coal gasifiers.

     - Development of emissions factors for fugitive organic emissions from
a Lurgi gasifier.

     - Determination that significant quantities of aliphatic hydrocarbons
are emitted from Lurgi gasifiers.

     - Verification that methanol can remove a significant amount of trace
quantities of reduced sulfur compounds from gasifiers.

     - Identification of lock hopper vent gas from Lurgi  systems as a
significant source of sulfur compounds and polycyclic organic materials
(ROM's).

     - Determination that wet scrubbers are able to remove significant
quantities of ROM's from gaseous streams, such as synthetic product gas.

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                 VII.  CONTROL OF MOBILE SOURCE EMISSIONS
     Control of motor vehicle emissions has been required by the Federal
government 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 addressed the problems
identified in the motor vehicle emissions control  programs at that  time,
and provided for adjustments in the programs for attaining and maintaining
the national ambient air quality standards (NAAQS) for carbon monoxide
(CO) and ozone (03).  The mobile source-related requirements of the
1977 Act are:

     - Emissions reductions of 90 percent for CO and hydrocarbons (HC)
and 75 percent for oxides of nitrogen (NOX) emissions from heavy-duty
engines, for model years 1983 and 1985, respectively.

     - Implementation of inspection and maintenance (I/M) programs  for
areas with severe CO and 03 air pollution problems, and which were  allowed
until 1987 to meet air quality standards.

     - Additional control of evaporative HC emissions from heavy-duty
vehicles through the adoption of a more realistic  compliance test procedure.

     - Reiteration of the light-duty vehicle emissions standards of
0.41 grams per mile (gpm) for HC and 3.4 gpm for CO, and the need to
provide for control at higher altitudes.

     - Setting of the NOX standard for cars at 1.0 gpm due to the tech-
nological difficulties associated with meeting a level of 0.4 gpm,  which
was the standard set by the 1970 amendments.

     - Prevention of future problems or amelioration of existing ones
through the control of particulate emissions from  vehicles;  the requirement
that emissions control systems not "cause or contribute to an unreasonable
risk to public health, welfare, or safety"; and the requirement that
manufacturers conduct research programs aimed at meeting an  NOX emissions
level of 0.4 gpm.

     EPA undertook a number of actions in 1980-81  aimed at complying with
the requirements of the 1977 amendments to the Clean Air Act.  These
actions are described below.  At the same time, EPA recognized that
certain requirements of the Act were technologically infeasible to  meet
or could result in excessive costs while achieving little in terms  of
environmental improvement.   Consequently, after reassessing  existing
legal requirements, EPA has proceeded with a series of regulatory
relief measures consistent  with the law, as well as with the continued
movement toward cleaner air, and also has recommended needed changes in
the Act itself.  The relief measures were summarized in the  Auto Task
Force Report, released by the White House on April  6,  1981.   Recommendations
for changes to the Act were given to the Congress  in the course of  hear-
ings conducted by appropriate committees of the House and the Senate.

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                                  VII-2
A.   STANDARD SETTING

     Effective with the 1981 model year, the applicable standards for
automotive exhaust emissions are 0.41 gpm HC, 3.4 gpm CO,  and 1.0 gpm
NOX.  This was the first year in which the standards mandated by the
1977 Clean Air Act (and, except for NOX, stipulated by the 1970 Clean
Air Act) took effect.  Achievement of these standards was  made possible
by the development of sophisticated technology (most notably the three-way
catalyst) capable of controlling emissions of HC, CO, and  NOX simultaneously.
However, the Act recognized that the achievement  of the CO standard
was not assured, and provided for waivers of this standard to a level of
7,0 gpm.  Approximately 70 percent of the 1982 model year  production
was granted this waiver of the CO standard.

     Actions undertaken during 1980-81 with respect to light-duty vehicle
emissions standards include:

     - Particulate emisisons from light-duty diesel vehicles were controlled
by the establishment of a 0.6 gpm standard to take effect  in model  year
1982.  This standard is scheduled to be strengthened in model year  1985
to 0.2 gpm for passenger cars and 0.26 gpm for light trucks.

     - EPA prepared an alternative plan to regulate light-duty vehicle
diesel particulate emissions through averaging (i.e., control of emissions
from a manufacturer's fleet on the average rather than from each individual
vehicle).  This rulemaking was proposed in late 1981 and will be finalized
in early 1983.

     - Interim standards for light-duty vehicles  sold at high altitudes
were promulgated for model years 1982 and 1983.  These standards are 0.57
gpm HC, 7.8 gpm CO, and 1.0 gpm NOX.  These standards represent the least
burdensome interpretation of the current requirements of the Clean  Air
Act.  The Act currently requires that all cars sold in the country  for
the 1984 model year and later be able to meet emission standards at all
altitudes.  This means that all  new cars have to  have high-altitude
emissions control  equipment installed regardless  of the altitude at which
they are operated.  Because only about three percent of new vehicles are
purchased in high-altitude areas, and most vehicles never  operate at high
altitudes, unnecessary hardware would be required to be installed on new
cars each year.

     - A related rulemaking set  guidelines for the issuance by manufacturers
of instructions on performance adjustments for vehicles currently in use
in high-altitude areas.  These performance adjustment instructions  are
designed to allow mechanics to enhance the efficiency of vehicles at high
altitude without risking violation of anti-tampering laws.

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                                     VII-3
     - Exhaust standards taking effect in model  year 1984 were set  for
light-duty trucks (those less than 8500 pounds gross weight).   These
standards are 0.8 gpm for HC and 10.0 gpm for CO.  (NOX exhaust standards
for light-duty trucks will  be established in conjunction with  those for
heavy-duty vehicles.)

     - EPA has proposed optional HC standards designed to exclude the
measurement of methane (which is not harmful to  the environment).  This
rule, which pertains to all classes of vehicles, was proposed  in late
1981.

     - A rule requiring the establishment of manufacturers'  research
programs for the attainment of a 0.4 gpm NOX standard was promulgated.
The 0.4 gpm NOX emissions level was the original goal of the 1970 Clean
Air Act, and it remained as a research goal  in the 1977 legislation.

     - In 1980, a final rule was promulgated setting a 90 percent reduction
in HC and CO emissions for heavy-duty trucks (those over 8500  pounds
gross weight).  The promulgated standards, which were scheduled to  take
effect in the 1984 model year, are 1.3 grams per brake horsepower-hour
(g/BHP-hr) for HC and 15.5 g/BHP-hr for CO.   Other significant features
of this regulation were the establishment of a new transient test procedure
and new assembly-line testing requirements for heavy-duty engines.   This
level of standards requires the use of catalysts on heavy-duty gasoline
engines.  Questions have been raised as to the feasibility of  using
catalysts on heavy-duty trucks and the actual cost of such an  application
if feasible.  To address these serious technological  questions, EPA,
through the Auto Task Force, committed to a  revision of these  standards.
EPA has also initiated re-examinations of the transient test and useful
life provisions of these regulations, because questions have been raised
as to their technical soundness and feasibility.  These questions along
with the final level of the post-1985 standards  will  be decided in  a
final rule in late 1983.

     - A standard for evaporative HC emissions from heavy-duty trucks was
proposed during 1980.

     - An advanced notice of proposed rulemaking for a heavy-duty engine
NOX standard was published in early 1981. A proposal is expected early
in 1984 with a final rule later that year.  This notice acknowledged that
the statutory requirement for a 75 percent emissions  reduction for  NOX
was technically not feasible for diesel  engines, and  that adoption  of
such a standard would ban the use of diesel  engines in trucks.  EPA
promised in the Auto Task Force report to propose a standard achievable
by diesel vehicles, and further promised to  introduce an averaging  scheme
for regulation of heavy-duty NOX emissions.

     - Heavy-duty diesel  particulate standards were proposed in 1981.   A
re-proposal and final action are expected to follow the same schedule as
the NOX regulations discussed above.

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                                  VII-4
B.   COMPLIANCE PROCEDURES

     A long-standing EPA technique of compliance assurance for mobile
sources is the prep reduction compliance review program.   Initiated in
1968, the program entails engineering review by EPA staff of engine
families representing new vehicles to be sold in the United States.
Steps in the process include submission by manufacturers of technical data
about respective vehicles, emissions testing of prototypes by manufacturers,
review of engineering data and test results by EPA, and, in certain cases,
confirmatory testing of prototypes at EPA's laboratory facility in Ann Arbor,
Michigan.

     During 1980-81, EPA developed and proceeded with a  series of major
changes in the certification program.  These changes, which were directed
toward reducing the complexity and cost of this program, were made possible
by a thorough review of all  procedures, and concentration on those that
were judged to be most directly relevant to assuring that manufacturers
were following sound engineering practices in demonstrating their ability
to meet emissions standards.  As a result, a large number of procedures
and paperwork that were not  directly related to achieving emissions
control were streamlined or  eliminated.

     Specific reforms which  EPA has announced include:

     - Reduction in the number of emissions data vehicles per engine
family to be tested, and consolidation of engine families.

     - Elimination of durability testing for small-scale engine families.

     - Institution of a voluntary alternative durability program, allowing
in certain cases for the generation of deterioration rates based on
historical data rather than  current testing.

     - Relaxation of certification procedures for small-volume manufacturers.

     - Initiation of self-certification for high-altitude vehicles.

     - Reduction in the stringency of EPA's parameter adjustment regulations.
(These rules compel manufacturers to limit the in-use adjustability of those
vehicle parameters which most sensitively affect emissions.)

     As a long-term reform,  EPA is considering whether to recommend to
the Congress that certification be replaced with a program designed to
control in-use emissions performance directly.  Such an  in-use compliance
program could be based on an averaging concept,  and could include the
payment of emissions fees by manufacturers whose vehicles do not meet
in-use requirements.  EPA plans to undertake a pilot in-use compliance
program in order to assess its feasibility.

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                                  VII-5
C.   INSPECTION AND MAINTENANCE

     Another strategy for dealing directly  with  in-use emissions  problems
is the encouragement of motor vehicle inspection and maintenance  (I/M)
programs.  EPA's basic approach in this area was determined by  the  1977
amendments to the Clean Air Act.  All urban areas of the country  which
will not attain ambient air quality standards for automotive-related
pollutants by 1982 are required by the Act  to implement a mandatory  I/M
program.  Affected States must include a commitment  to I/M, an  implementation
schedule, and a demonstration of adequate legal  authority in their  1979
State Implementation Plans.

     As of the end of 1981, approximately 44 metropolitan areas in  29
States were obligated to implement I/M programs.  All  but two States
have demonstrated legal authority, and most States have taken at  least
preliminary steps leading to the implementation  of I/M.  Areas  in nine
States had begun operating programs.   Section 176(a) of the Clean Air Act
prohibits grants to areas not in attainment with standards for  transportation-
related pollutants where there is a finding that the State failed to make
reasonable efforts to submit an approvable  State Implementation Plan.
That finding was made in 1980 in California and  two  counties in Kentucky
because of lack of I/M legislation.

     EPA has provided continuous technical  support to  those States  and
localities that are implementing I/M.  In addition to  this local  support,
EPA has undertaken a number of national efforts  to assess the effectiveness
of I/M.  Through analysis of local testing  programs  in Portland,  Oregon,
and Houston, Texas, EPA has been able to determine the effectiveness and
benefits of different I/M techniques.  The  promulgation,  under  Section
207 of the Act, of short I/M tests which correlate with the elaborate
Federal Test Procedure has laid the groundwork for implementation of the
Clean Air Act's warranty provisions through local  I/M  programs.  Ongoing
training activities have promoted essential public knowledge and  official
expertise in I/M areas.

D.   HAZARDOUS POLLUTANTS

     In recent years, there has been  increasing  concern about the potential
for the emission of hazardous levels  of unregulated  pollutants  from
mobile sources.  One result of this concern was  Section 202(a)(4) of the
1977 Clean Air Act amendments, which  requires manufacturers to  demonstrate
that their vehicles do not pose an unreasonable  risk to public  health.

     During 1980-81, EPA's research program on motor vehicle pollutants
of potential public health concern has focused on  exhaust products  from
diesel-powered vehicles.  The diesel  issue  is particularly urgent because
several manufacturers plan to increase substantially the  production of
diesel-powered automobiles during the coming decade.

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                            VIII.  ENFORCEMENT
A.   STATIONARY SOURCE ENFORCEMENT

     In the late 1970's EPA embarked upon a program to bring sources  which
had never installed pollution control equipment into initial compliance
with applicable air quality regulations.  Among the sources targeted  for
this effort were some of the largest contributors to the nation's  air
pollution problems.  Many of the sources had been in violation for several
years.

     Through the combined efforts of industry, States, and the Federal
government, the goals of this effort were largely achieved by the  end of
1981, when over 93 percent of the sources in the country were reported
as achieving initial compliance or were on a schedule to achieve compliance,
As an indication of EPA's commitment to this program, during 1980  and
1981 EPA conducted 6,115 inspections, issued 772 notices of violation,
issued 96 administrative orders, and initiated 130 civil actions.

     While efforts to bring the few remaining sources into initial
compliance continue to be a top priority, as is the tracking of existing
consent decrees, the focus of the stationary source enforcement program
has necessarily shifted from achievement of initial compliance to  ensuring
continuing compliance.  Recent studies indicate that maximum environmental
benefits from the efforts of industry, States, and the Federal government
are not being realized.  The recent study by the National  Commission  on
Air Quality (NCAQ) found that 71 percent of 180 sources reported as
being in compliance had documented incidents of excess emissions 25
percent over the allowed emissions level, with the primary cause being
improper operation and maintenance practices.

     In order to assist the States to exercise primary responsibility
for ensuring continuing compliance by sources, EPA is working with the
States to develop new and more cost-effective methods to determine and
ensure compliance.  In addition, EPA will be providing an  increasing
level of technical support to strengthen State programs, as well as
direct technical assistance when requested.  Where State efforts are  not
successful, EPA will ensure compliance by bringing a Federal administrative
or judicial enforcement action.

B.  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 new vehicles meet emissions standards,
(2) assure that vehicles meet emissions standards in use,  (3) assure
that emissions control systems are not removed or rendered inoperative,
(4) assure control of hydrocarbon emissions during gasoline transfer
operations, (5) assure that harmful  additives are not present in gasoline,
(6) administer statutory and California emissions standard waivers and
(7) administer the statutory emissions warranties.

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                                  VIII-2
     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.  For the fiscal year beginning October  1,
1979, and ending September 30, 1980 (FY 1980),  1.0 million vehicles were
recalled either by direct order of EPA or as  a  result of an EPA  investigation.
During that same period, manufacturers voluntarily recalled 233,000 vehicles
to correct emissions problems.  For the fiscal year  beginning October 1,
1980, and ending September 30, 1981 (FY 1981),  an additional  1.3 million
vehicles were recalled either by direct order of  EPA or  as a  result of
an EPA investigation.  During this same period, manufacturers voluntarily
recalled 477,000 vehicles to correct emissions  problems.

     In FY 1981, Volkswagen of America, Inc., agreed to  recall approximately
450,000 1977 through 1979 model year Volkswagen automobiles to correct  an
air pollutant emissions problem.  The models  affected by this recall  were
gasoline-powered 1977 through 1979 VW Rabbits and Sciroccos with fuel
injection systems.  The vehicles included those covered  by both  Federal
and California emissions control standards.   The  1977 Rabbits and Sciroccos
were the subject of an EPA recall order issued  in October 1980 for vehicles
covered by Federal standards.  Volkswagen's  agreement to recall  the 1977
vehicles resolved an EPA Administrative hearing requested by  VW  to contest
the 1980 recall  order.

     The agency's vehicle testing for recall  purposes is now  conducted  by
a contractor in Springfield,  Virginia, and at the EPA emissions  testing
facility in Ann Arbor, Michigan.

     Emissions Standards Waivers

     EPA issued several decisions on requests from automobile manufacturers
for waiver of the 1981 and 1982 model year carbon monoxide (CO)  emissions
standard for certain automobile models.  The  agency  has  granted  temporary
relaxations of the CO standard covering about 36  percent of projected
1981 model year I). S. car sales, and about 69 percent of projected 1982
model year sales.

     EPA also has issued decisions on requests  for waiver of  the 1981-1984
model year oxides of nitrogen (NOX) standard  for  certain automobile models
using diesel  technology.  The agency has granted  temporary relaxation
of the NOX standard for virtually all diesel  models  for  model years 1981 and
1982 and a substantial portion of 1983 and 1984 diesel models.   The U. S.
Court of Appeals for the District of Columbia circuit has upheld EPA's
approach in granting NOX waivers.

     EPA has  granted California waivers of Federal preemption to permit
California to enforce certain changes to its  own  motor vehicle emissions
control program.  EPA has granted California  waivers  to  enforce  certain
changes in primary and optional emissions standards,  and changes  to
accompanying enforcement procedures covering  all  vehicle classes.

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                                  VIII-3
     Selective Enforcement Auditing

     Thirty-eight selective enforcement audits of light-duty vehicle and
light-duty truck manufacturers were conducted in FY 1980.  One manufacturer,
Ford Motor Company, failed an audit in March 1980.  As a result of this
audit failure, EPA revoked the certificate of conformity applicable to
the Bronco truck configuration.  In addition, Ford was ordered to recall
and bring into compliance all of the Bronco trucks of the audit configuration
(7,000) built since the beginning of the model year.

     In FY 1981, EPA conducted twenty-seven selective enforcement audits
of light-duty vehicles and light-duty trucks.  No audits were failed in
FY 1981.

     Manufacturers tested about 20,000 production cars annually during
the 1980 and 1981 model years as a part of their own quality control
emissions testing programs.  Domestic manufacturers made 72 engineering
changes to production vehicles during the 1980 model year to improve
emissions performance.  Most of these changes were made as a result of
emissions problems identified by manufacturers in their own assembly
line emissions testing programs.

     Imports Program

     Sections 203(a)(l) and 203(b)(2)  of the Clean Air Act authorize  EPA
to enforce compliance of imported motor vehicles and motor vehicle engines
with Federal emissions requirements.  Under joint regulations with the
U. S.  Customs Service (Customs), EPA monitored the importation of all
vehicles that entered the United States.  Of these,  approximately 2,000
annually were imported in 1980-1981 under bond pending a demonstration
of conformity.  Over 300 administrative sanctions were imposed against
importers for noncompliance with the regulations.

     EPA conducted 59 investigations of alleged imports violations in
1980-81.  One case was referred to the Department of Justice by Customs
and resulted in 8 felony indictments each against a foreign sports car
manufacturer and its American representative.

     As a result of the burdensome impact currently  imposed upon individual
importers importing noncomplying vehicles for their own personal  use,  and
the substantial burden on EPA and Customs resources  in administering  and
enforcing the present procedures, EPA  is developing  revisions to the  vehicle
importation regulations.

     Production Compliance Inspections

     Under Sections 206 and 208 of the Clean Air Act,  EPA performs
Production Compliance Inspections of new motor vehicles and engines.
These inspections are conducted on new light-duty vehicles and new heavy-
duty  engines at assembly plants and ports of entry.   Such inspections
typically include detailed examinations of vehicles,  engines, and labels

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                                  VIII-4
to determine if vehicles or engines are being built to configurations
covered by EPA certificates of conformity.  During FY 1980, 17 of these
inspections were conducted, 14 at domestic automobile assembly plants
and 3 inspections of imported vehicles at ports of entry.  Three
inspections were conducted in FY 1981.

     Tampering And Unleaded Gasoline Enforcement Program

     EPA has responsibility for enforcing Section 211 of the Clean Air
Act, relating to the regulation of fuels and fuel additives.  This effort
is intended to protect the catalytic converters on 1975 and later model
year cars.

     EPA also has responsibility for enforcing Section 203(a)(3) of the
Clean Air Act, which prohibits tampering with mobile source emissions control
equipment.  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 and State inspectors under EPA contract,
and the analysis of the samples for lead content.  It also includes
inspections through contracts and agreements with State, county, and
local government agencies.

     In FY 1980, EPA conducted approximately 26,000 inspections of service
stations, retail outlets, dealers, and fleet owners to ensure compliance
with the unleaded fuel regulations and tampering provisions.  EPA issued
237 complaints, referred 19 cases to the Department of Justice, and
proposed $6.8 million in penalties during this period.

     In FY 1981, EPA conducted approximately 28,000 inspections of
service stations, retail outlets, dealers, and fleet owners to ensure
compliance with unleaded fuel and tampering provisions.  EPA issued 471
complaints, referred 14 cases to the Department of Justice, and proposed
$7.5 million in penalties during this period.

     Fuel Switching

     EPA has continued to investigate the extent and causes of fuel
switching (use of leaded gasoline in vehicles requiring unleaded).  In
1980-81, there was no evidence to indicate that the fuel switching rate
declined from the approximate eight percent rate observed earlier, despite
a disappearance of severe shortage conditions.  Some motivational  research
studies point to a combination of performance/octane questions and the
price difference between leaded and unleaded fuel as incentives to switch.
Recent price data indicate a continuing rise in the price penalty  for
the use of unleaded gasoline, even though gasoline prices have stabilized
somewhat.  There are major geographic differences in the rate of fuel
switching and a definite indication that the rate is lower where inspection
and maintenance programs are operating.

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                                    VIII-5
     Lead Phasedown Program

     On October  1, 1980, EPA implemented regulations under Section 211
of the Clean Air Act to control the amount of lead additives used in
gasoline.  These regulations require large refiners to meet a standard
of 0.5 g/gal of  lead in gasoline, and require small refiners to meet a
less stringent standard to a maximum of 2.65 g/gal of gasoline depending
on production volume.  The small refiners were scheduled to meet the 0.5
g/gal standard in October 1982.  However, in accordance with certain of
the Auto Task Force recommendations, EPA undertook an evaluation of the
need to amend these standards.  That evaluation subsequently resulted in
uniform, more stringent standards for lead in leaded gasoline for all
refiners.

     In FY 1980, 244 refineries reported lead usage, and 20 of these
reported violations of the standards.  During FY 1981, 271 refineries
reported their lead usage to EPA.  Of these 21  reported violations.  In
most instances the violations were minor one-time violations with the
refineries back  in compliance the next period.

     Regulation Development

     In 1980 EPA promulgated two sets of regulations under Section 207
of the Act.  One set established the emissions  performance warranty.
This warranty requires a vehicle manufacturer to repair, at no charge to
the owner, the emissions control device or system of each vehicle which
fails an emissions inspection and maintenance test that has been approved
by EPA, provided the owner has maintained and operated the vehicle in
accordance with tne manufacturer's written instructions.

     The second set of regulations establishes  a program under which
manufacturers of automotive aftermarket parts,  such as spark plugs, air
filters, and catalytic converters, can certify  that use of their parts
will not cause a vehicle to exceed emissions standards.  Vehicle manufac-
turers will not legally be allowed to deny emissions warranty claims on
the basis of the use of a certified part.  EPA  and the manufacturers have
been involved in litigation on these regulations and are awaiting a
decision from the court.

     EPA also is required by Sections 203 and 207 of the Act to enforce
a second emissions warranty which has been in effect since the 1972
model year.  This warranty requires that every  vehicle be free from
defects that could cause it to exceed Federal emissions requirements for
five years or 50,000 miles.  EPA has investigated approximately 15 warranty
claims in 1980 and 45 in 1981.

C.  COMPLIANCE BY FEDERAL FACILITIES

     During 1980-81,  Federal  facilities  classified as  major sources of
air pollutants made continuous  progress  toward  coming  into compliance
with applicable regulations.   Through 1981,  322  (91  percent)  of these
facilities met applicable emissions limitations.   Of the 33 noncomplying
facilities, 19 have agreed to compliance schedules that will  eventually
bring them into compliance.

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                                  VIII-6
D.  LIST OF VIOLATING FACILITIES

     The List of Violating Facilities,  under Section 306 of the Clean
Air Act, is designed to prevent the  Federal government from subsidizing
Clean Air Act violators with  contract,  grant, or  loan monies.

     No Clean Air Act violators were listed in 1980-81.

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                             IX.   LITIGATION
     The U. S. Court of Appeals for the District  of  Columbia Circuit has
upheld EPA's national primary and secondary  ambient  air  quality  standards
for lead and for ozone.  Lead Industries Association v.  EPA, 647 F.2d
1130 (D. C. Cir. 1980), cert, denied 449 U.  S.  1042  (1980); American
Petroleum Institute v. Costle, 665 F.2d 1176 (D.  C.  Cir.  1981),  cert.
denied 102 S. Ct.1737 (1982).  In each case,  the Court  held that the
costs and feasibility of attaining ambient  air  standards  are not to be
considered in setting them,  and that a  primary  standard  must protect
against uncertain as well  as certain harms.   The  U.  S. Supreme Court
denied industry petitions  for review in both cases,  and  thus let stand
the lower court decisions.

     Three Courts of Appeals ruled during 1980  on the validity of area
designations issued by EPA under Section 107(d) of the Act.  One upheld
EPA's actions, finding that  good cause  existed  to waive  prior notice and
opportunity for comment, and that EPA had properly used  modeling to set
the designations.  Republic  Steel Corp. v. Costle, 621 F .2d 797  (6th
Cir. 1980).  However, the  D. C. Circuit and  the Ninth Circuit found that
EPA had violated the Administrative Procedure Act by not  providing prior
notice and opportunity for public comment.   State of New  Jersey  v. EPA,
626 F.2d 1038 (D.C. Cir. 1980); Western Oil  and Gas  Association  v. EPA,
633 F.2d 803 (9th Cir. 1980).  The Eighth Circuit ruled  against EPA on
the same issue in 1981.  U.  S. Steel  Corp. v. EPA, 649 F.2d 572  (8th
Cir. 1981).

      On August 12, 1980,  the United States  Court of Appeals for the
Ninth Circuit upheld a lower court denial  of the  Pacific  Legal Foundation's
(PLF) request for a preliminary injunction enjoining EPA  from imposing
against California the construction moratorium  and funding limitations
provided for under the Clean Air Act.  PLF  v. Costle,  627 F.2d.  917 (9th
Cir. 1980), cert, denied 101 S. Ct. 1354 (1981).The Court ruled that
the PLF lacked jurisdiction  in a Section 304 citizen suit to challenge
EPA's July 2, 1979, promulgation of the construction moratorium.  The
Ninth Circuit also affirmed  that PLF had little likelihood of success in
pursuing its constitutional  challenges  to EPA's authority to impose the
funding limitations.  The  practical importance  of this decision is its
support of the Agency's statutory and constitutional  authority to withhold
Federal funds when a State has failed to meet the requirements of Part D
of the Clean Air Act, including the vehicle  inspection and maintenance
(I/M) requirement.  EPA imposed these funding restrictions on California
in December 1980.

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                                   IX-2
     On August 29, 1980, the United States Court of Appeals for the Tenth
Circuit rejected a similar attempt to challenge EPA's actions in imposing
a construction moratorium and Federal funding restrictions in Colorado.
EPA had acted because the State had failed to enact I/M legislation.
Mountain States Legal Foundation y. Costle, 630 F.2d 754 (10th Cir.
1980), cert, denied 101 S. Ct. 1754 (1981).  The Court found that the
petitioners lacked standing to raise their constitutional  objections.

     In National Lime Association v. EPA, 627 F.2d 416 (D. C. Cir. 1980),
the Court held that the achievability of EPA's new source  performance
standards for lime plants was not adequately supported by  the record.
The importance of the case is its indication that the court will  look
very closely at whether EPA has adequately examined the achievability  of
new source performance standards under all circumstances.

     In Sierra Club v. Costle, 657 F.2d 298 (D. C. Cir. 1981), the Court
upheld tne 1979 new source performance standards (NSPS) for fossil fuel
(principally coal-fired utility) boilers.  The NSPS requires all  such
boilers built since September 1978 to meet emissions limits for sulfur
dioxide (S02), particulate matter (PM), and nitrogen oxides (NOX)
which reflect the best demonstrated technologies for those pollutants:
S02 scrubbers together with coal washing for $03; baghouses for PM;
and combustion modification for NOX.  The Court upheld EPA's determination
that these are the best demonstrated technologies, and that the emissions
limits reflect, and are achievable by, their use.  The Court also found
no legal error in EPA's meeting with persons interested in the rulemaking,
members of Congress, and officials of the executive branch after the
close of the formal comment period, because significant oral communications
were reduced to writing, communications were placed in the docket for
public review and comment, and the rule was based solely on information
in the docket.  In The Group Against Smog and Pollution, Inc. v.   EPA,
665 F.2d 1284 (D.C. Cir. 1981), the same Court upheld EPA's procedures
for reviewing and revising the NSPS for basic oxygen process furnaces  in
steel mills.

     In PEPCO v. EPA, 650 F ,2d 509 (4th Cir. 1981), the court upheld
EPA's finding that under the Agency's regulations and Section 111  of the
Act, "commencement of construction" had not occurred before the applicability
date of the NSPS at issue where the source had neither begun fabrication
or installation of the emitting facility regulated by the  standard nor
entered into a contract for fabrication that,  if cancelled, would have
subjected the company to significant liability.  A similar result was
reached in Sierra Pacific Power Co. v. EPA, 647 F.2d 60 (9th Cir.  1981),
where the Court upheld EPA's interpretation that design and planning of
a source do not constitute construction, and that construction of related
facilities is irrelevant to the status of the boiler.  The same result
was also reached in United States y. City of Painesville.  644 F.2d 1186
(6th Cir. 1981), where the Court also held that the fact that the record
of the NSPS had been remanded to the agency by the Court reviewing it
does not alter the applicability date.

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                                   IX-3


     In PPG Industries, Inc. v. Costle, 659 F.2d 1239 (D.  C.  Cir.  1981),
the Court invalidated, and remanded the record for,  the portion  of EPA's
national ambient air quality monitoring and reporting regulations  requiring
States to report running averages, because the rulemaking  did not  give
adequate notice that such a requirement was being imposed.

     In PPG Industries, Inc. v. Harrison,  660 F.2d 628 (5th Cir.  1981),
the Court overturned EPA's determination that PPG's  boilers are  subject
to the 1971  NSPS for fossil fuel-fired boilers.  The decision is  based
on the Court's view that the S02 emissions limit in  the NSPS  improperly
fails to account for waste heat supplied to the boiler.  In EPA's
judgment, the decision therefore amounts to review of the  merits  of the
NSPS, which the Court lacks jurisdiction to do, since jurisdiction to
review the NSPS lies solely with the D. C. Circuit.

     In the continuation of contractor inspection cases under Section  114
of the Act,  the Ninth and Tenth Circuits split on the issue of whether
contractors  could be designated "authorized representatives"  to  provide
technical assistance in conducting enforcement inspections.   In  Stauffer
Chemical Co. v. EPA 647 F.2d 1075 10th Cir. 1980), the Tenth  Circuit
held that Section 114 did not permit such  designations, and invalidated
a warrant allowing an EPA contractor to participate  in an  inspection.
In Bunker Hill Co. v. EPA 658 F.2d 1280 (9th Cir. 1981), the  Ninth Circuit
came to the opposite conclusion, holding that designation  of  contractors
was proper,  and that the use of warrants to enforce  that  right was authorized.

     Litigation over many mobile source regulations  has continued.  In
Natural Resources Defense Council, Inc. v. EPA, 655  F.2d 318  (D. C.  Cir.
1981), the U. S. Court of Appeals for the  District of Columbia Circuit
upheld EPA's 1985 particulate standards for diesel-powered light-duty
vehicles and light-duty trucks.  The case  set forth  the criteria  for
judicial review of agency regulations based on predictions of future
technology.   The Supreme Court denied certiorari  on  November  2,  1981.

     A number of other mobile source cases have been held  in  abeyance
pending the  outcome of settlement negotiations or rulemaking. These
include challenges to the carbon monoxide  and hydrocarbon  standards  for
light-duty trucks and heavy-duty engines,  regulations implementing the
Section 207(b) performance warranty, and an interpretive rule defining
manufacturers' responsibilities for emissions recalls.  Also  pending is
a challenge  to a waiver under Section 211(f) allowing distribution of a
blend of unleaded gasoline and methanol.

     On August 7, 1981, the United States  Court for  the Eastern
District of  California granted EPA's motion for summary judgment  in  PLF
v. Gorsuch.  No. 5-79-925 LKK.  The Court found that  EPA did not have a
mandatory duty to promulgate a vehicle inspection maintenance (I/M)
program for  California, notwithstanding the fact  that California failed
to adopt such a program by Janury 1, 1979, the statutory deadline.

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                                   IX-4
     The United States Court of Appeals  for the  Fifth  Circuit  upheld
EPA's conditional approval  of the Texas  Part D nonattainment State
Implementation Plan in City of Seabrook  v.  EPA,  659  F.2d  1349  (5th Cir.
1981).  The Court held that EPA's conditional  approval was  authorized
under Sections HO(a)(2)(H) and 110(c)(l)(C) of  the  Clean Air  Act, that
legal authority for an I/M  program is  not  required until July  1,  1982
(rather than January 1, 1979, as EPA had argued), and  that  EPA has no
mandatory duty under Section 113 to commence an  enforcement action.

     The United States Court of Appeals  for the  Second Circuit upheld
EPA's conditional approval  of Connecticut's Part 0 nonattainment  State
Implementation Plan in Connecticut Fund  for the  Environment v. EPA, 672
F.2d 998(2nd Cir. 1982).   The Court held that  the authority to approve
plans conditionally is inherent in EPA's general rulemaking authority
under Section 301(a),  and in EPA's specific authority  to approve  and
disapprove plans under Section 110(a)(2).   The Second  Circuit  also found,
however, that a conditional approval  could  not lift  the moratorium on
new source construction imposed by Section  110(a)(2)(I), because  Section
110(a)(2)(I) requires  that  the moratorium  remain in  effect  until  a State's
plan fully complies with  Part D.  Finally,  the court upheld EPA's approval
of Connecticut's withdrawal of an indirect  source review program  under
Section 110(a) (5).

     The United States Court of Appeals  for the  Seventh Circuit upheld
EPA's approval of Illinois' program for  controlling  fugitive dust from
such sources as conveyor  belts and materials storage piles. Citizens
for a Better Environment  v. U. S. EPA, 649  F.2d  522  (7th Cir.  1981).
The Court found that the  program, which  required sources to develop and
follow operating plans to install particulate  controls but  did not
require Illinois or EPA to  approve the individual plans, was Federally
enforceable.  However, the  Court vacated EPA's approval of  Illinois' new
source review program on  the grounds  that the  State  lacked  legal  authority
for that program.

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U.S.

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                                    TECHNICAL REPORT DATA
                            (Please read Instructions on the reverse before completing!
1. REPORT NO.
                              2.
                                                            3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE
  Progress  in  the Prevention and  Control  of
    Air Pollution in 1980 and  1981
                                      5. REPORT DATE
                                        October 1983*
                                                            6. PERFORMING ORGANIZATION CODE
7.
             Project Officer
             William F.  Hamilton
                                                            8. PERFORMING ORGANIZATION REPORT NO.
9. PERFORMING ORGANIZATION NAME AND ADDRESS
  Office of Air  Quality Planning and  Standards/
    Control Programs  Development Division
    Mail Drop  15
    Research Triangle Park,  N.C. 27711
                                      10. PROGRAM ELEMENT NO.

                                        13A2A
                                      11. CONTRACT/GRANT NO.
12. SPONSORING AGENCY NAME AND ADDRESS
    Environmental  Protection Agency
    401 M Street,  S.W.
    Washington,  D.C.   20460
                                      13. TYPE OF REPORT AND PERIOD COVERED
                                        Final  1980-1981
                                      14. SPONSORING AGENCY CODE
15. SUPPLEMENTARY NOTES
  Annual Report  of  the Administrator  of  the Environmental  Protection Agency to  the
  Congress under Sections 313, 202, and  306 of the Clean Air  Act
16. ABSTRACT

       The report  addresses the progress made in the prevention  and control

  of air pollution in  1980 and 1981.   It covers the areas of  air quality trends

  and monitoring,  development of air quality criteria and standards, the status

  of State Implementation Plans, the control  of stationary and mobile source

  emissions, enforcement, and litigation.   The report is the  annual  report of

  the Administrator  of EPA to the Congress  in compliance with Sections 313, 202(b)(4),

  and 306 of the Clean Air Act, as amended.
17.
                                KEY WORDS AND DOCUMENT ANALYSIS
                  DESCRIPTORS
                                               b.IDENTIFIERS/OPEN ENDED TERMS  C. COSATI Field/Group
 Air  Pollution
 Environmental Engineering
 Pollution Abatement
 Pollution Regulations
 Public  Health
13 DISTRIBUTION STATEMENT
 Release unlimited.
 through NTIS
Available
19. SECURITY CLASS (This Report]
 Unclassified
21 NO. OF PAGES
 55
                        20 SECURiTY CLASS (This page)
                         Unclassified
                           22. PRICE
EPA Form 2220-1 (Rev. 4-77)   PREVIOUS EDITION is OBSOLETE
        *Date  of transmittal  to  the  Congress.

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EPA Form 2220-1 (Rev. 4-77> (Reverse)

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