&EPA
            United Slates
            Environmental Protection

            Agency
            External Affairs
            (A-102)
July 1989
Clean Air Act
Amendments Of 1989

Section-By-Section
Analysis
 EPA
 174/
 1989*1

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                  SECTION-BY-SECTION ANALYSIS OF
              THE "CLEAN AIR ACT AMENDMENTS  OB' 1989"


                           July  20,  1989
                         Table of  Contents


TITLE I—PROVISIONS FOR ATTAINMENT AND MAINTENANCE OF
         AMBIENT AIR QUALITY STANDARDS	   1


TITLE II—PROVISIONS RELATING TO  MOBILE SOURCES	  33


TITLE III—HAZARDOUS AIR POLLUTANTS	  45


TITLE IV—PERMITS	  52


TITLE V—ACID DEPOSITION CONTROL	  56


TITLE VI—PROVISIONS RELATING TO  ENFORCEMENT	  60


TITLE VII—MISCELLANEOUS PROVISIONS	  67
                                         U.S. EPA Headquarters Library
                                              Mail code 3201
                                         1200 Pennsylvania Avenue NW
                                           Washington DC 20460

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                  SECTION-BY-SECTION ANALYSIS  OF
              THE "CLEAN AIR ACT .AMENDMENTS  OF 1989"
TITLE I—PROVISIONS FOR ATTAINMENT AND MAINTENANCE OF
         AMBIENT AIR QUALITY STANDARDS
Section 101.   General Planning Requirements.

SECTION 101(a)(1)

     Section 101 of the bill  substantially  amends  section 110 of
the  CAA.    Section  I0l(a)(l)  of  the bill  replaces  current  CAA
sections  H0(a)(l)  through  110(a)(3)(A)  with  new CAA  sections
110(a>-(h).   Section  110  is  overhauled to set  out a  scheme,
generally  in  chronological  order,   for  State  and  EPA  action
following  promulgation  of  new or revised  national  ambient  air
quality  standards   ("NAAQS"),  which  includes  designating  areas
attainment, nonattainment, or unclassifiable.

           CAA Section 110(a)—Initial Plan Elements

     After  promulgating a new or revised NAAQS, EPA  may require
any  State  to  submit  an  initial plan or plan revision that  meets
any  of  the requirements  of subsection lio(d)  (discussed below).
These  requirements  include   authority   to gather  information
concerning  air  quality,   which  would facilitate the  designation
process under subsection 110(b) (discussed below).

                CAA Section 110(b)—Designations

     This   subsection   sets   out   the   provisions   concerning
designations, replacing the current CAA section 107(d).

Paragraph  (1)—Designations Generally:

     After EPA promulgates  a new  or  revised NAAQS,  each  State is
required to designate each area within the State as nonattainment,
attainment,  or  unclassifiable  (I.e.,  inadequate  information  to
determine  whether  attainment  or  nonattainment) for  the new  or
revised NAAQS.  At any other time, a State may  designate  any area
of the State as  nonattainment,  attainment,  or  unclassifiable for
any  standard.

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     The State  must submit the  designations  to EPA,  which must
promulgate  them,   making  any  modifications  that   EPA  deems
appropriate.  If  EPA intends  to make a modification,  it  must so
inform the  State  prior to promulgating the designation,  to give
the State an opportunity to respond.
     After promulgating a new or revised NAAQS, EPA must promulgate
the designations for all areas of the country as expeditiously as
practicable, and no  later  than  two  years  after  the promulgation,
except  that  a  one-year  extension  is  available  if  EPA  has
insufficient information to make the designation.

     Areas that EPA  has  designated  under  the  current  CAA section
107(d) retain their current designation.

Paragraph (2)—Procedure:

     To promulgate a designation or redesignation, EPA must publish
a  notice  in  the  Federal  Register.    In  the  case  of  initial
designations (including initial ozone, carbon, monoxide, and PM-10
designations required under the bill), this notice is not subject
to notice and comment, but remains subject to judicial review.

Paragraph (3)—Redesignation:

     At any time,  EPA  may notify a  State  that a redesignation of
any area may be necessary.  The State must  submit any redesignation
that it considers  necessary within 120 days. EPA must finalize the
redesignation within  another  120 days,  making any  appropriate
modifications,  after  first giving  the State  an opportunity to
respond to those modifications.

     A State may,  on its own motion,  redesignate  an area and submit
the  redesignation to  EPA,   EPA must then approve  or deny  the
redesignation.   The mere submission  of  a redesignation  by  the
State, however,  has no  effect on the SIP  requirements for the area.

     EPA can redesignate  a nonattainment  area to  attainment only
if (i) the area has attained the NAAQS;  (ii) the area has a fully
approved plan;  (iii)  EPA determines that  the improvement in  the
air  quality is due  to permanent  and enforceable reductions in
emissions due to implementation of the plan (and federal controls)
and other permanent reductions;  (iv) the State has submitted,  and
EPA has approved,  a maintenance plan for the area; and  (v) the area
has met all applicable requirements resulting from any "SIP call"
(as  described  below)  (including any  SIP  call  issued under  new
section  110(e)(4))  to address  the  area's  contribution   to  air
pollution problems in an interstate transport region under section
176) .
     EPA   may  not
unclassifiable.
redesignate  any   nonattainment   area   as

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Paragraph (4)—New Designations for  Ozone, Carbon Monoxide ("CO"},
and Particulate Matter ("PM-10"):

     Within 120 days of the enactment  of the bill, each State must
designate, affirm or  reaffirm  the designation of,  or redesignate
all areas with respect to  ozone and carbon  monoxide.   Each State
must submit the designations or redesignations to EPA, which must
promulgate  them  within  another 120  days.    EPA  may modify  the
State's  designations  or redesignations,  after first giving  the
States  an opportunity to  respond  to  any modifications  the  EPA
intends to make.

     The   bill   provides    specific   requirements   for   PM-10
designations:  areas identified at 52  Federal Register 29383 (Aug.
7, 1987) as Group I areas  (except as modified by EPA prior to the
enactment of this bill),  arid all areas that measured exceedance of
the PM-10 NAAQS,  are designated nonattainment by operation of .law.
All  other areas  are  designated unclassifiable  for  PM-10  until
redesignation.

     The  particulate  matter designations  made previously  by  EPA
under the particulate matter standards measured in terms of "total
suspended particulates" (EPA replaced  these standards with the new
PM-10 standards in 1987)  will remain in effect for a period of time
in  order  to  implement  the  particulate  matter  prevention  of
significant deterioration (PSD) "increments"  (measured in terms of
total  suspended   particulates)  under  section  163 (d),  which  ir>
discussed below.   These designations will remain In place until-EPA
determines that they are no longer necessary for that purpose.
Paragraph (5)—Designations for Lead:

     EPA  is authorized,  at  any  time,  to
designate any area with respect to lead.
require  a State  to
              CAA Section 110(c)—Maintenance Plans

     This subsection provides that  EPA  may,  but is not obligated
to, require  any area designated attainment  or  unclassifiable to
submit  a  "maintenance SIP"  to  assure  that  the standard  is  not
violated for the period EPA  determines  appropriate.   At any time
(before or  after  the  expiration of  the  period  covered  by  the
initial maintenance plan), EPA may require a subsequent maintenance
plan or plans  for  additional periods.   As determined appropriate
by EPA, these maintenance  plans  may  include any of the provisions,
including  emissions   inventories,   that  are   described   under
subsection  H0(d),  below.    States  must  submit  the  required
maintenance plans according to reasonable schedules prescribed by
EPA.

             CAA Section 110(d)--Requirements for All

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                  Implementation Plan Submittals
                      -•M
      This subsection contains the basic requirements that SlPs must
 meet,  most  of which parallel existing section  110(a)(2).   First,
 all  SIPs or  SIP revisions  must be  adopted by  the  State  after
 reasonable   notice   and  public  hearing.     Beyond  that,   the
 requirements  listed in the paragraphs of this subsection (i)  apply
 in whole or in part,  as  determined by EPA, to initial SIPs required
 by  EPA after  promulgating  a new or  revised NAAQS (as  described
 above under   subsection  110(a))  and  to  maintenance  SIPs  (as
 described above  under subsection (c)); and  
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out the SIP (including a statement from the attorney for the State,
local, or regional authority that the State or local laws provide
adequate authority) ; assure that the State complies  with Clean Air
Act requirements  concerning  conflicts  of interest for members of
State boards that  approve permits or enforcement orders; and assure
that  if  the State has delegated to  a  local  or  regional agency
authority to  implement the SIP, the State has retained ultimate
responsibility for implementation.

Paragraph (6):

     The SIP must require (i)  stationary sources,  in accordance
with  EPA's prescription,  to   take  necessary steps  to  monitor
emissions, and (ii) the State to submit  periodic reports concerning
such emissions as well as  to  correlate  such reports  with emissions
requirements.    The  SIP  must  also  require  the  State  to submit
reports on  other  emissions-related data,  in  accordance  with EPA
prescription.

Paragraph {7) :

     The SIP must provide authority, including contingency plans,
to restrict emissions  of  air  pollutants  that present  an imminent
and substantial danger.

Paragraph (8):

     The  SIP  must provide  for revision of  the  plan as may  be
necessary to take account  of revisions  in  the NAAQS  or improved
methods to attain  the NAAQS, and to respond to findings by EPA that
the plan is substantially  inadequate to  attain the NAAQS (a "SIP
call").  However,  the current provision that revisions to the plan
are  not  necessary  with  respect  to  exemptions   specified  under
section H0(j)(2)  (formerly  section 110(a)(3)(C))   (e.g.,  federal
facilities  and   temporary   energy   or  economic   authority)  is
continued.

Paragraph (9):

     The  SIP  must  meet  the  requirements  of the  nonattainment
provisions  of  the   Act   (part  D) ,   if  the  area   is  designated
nonattainment.

Paragraph (10):

     The SIP must  meet the  requirements,  to the extent applicable,
of  the   consultation  provisions  (section   121),   the   public
notification provisions (section 127),  and the provisions related
to prevention  of significant  deterioration  in  air quality and
visibility (part C),  of the Act.

Paragraph (11):

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     The SIP  must provide  for  air quality  modeling as  EPA  may
prescribe,  and submission of such data from such modeling to EPA,
upon request.
Paragraph (12):

     The SIP must include provisions to require stationary sources
to pay permit fees to cover the costs of reviewing, acting on, and
implementing the  permit  (except  for  court costs or  the  costs of
enforcement action),  except that those provisions may be superseded
by the expanded  permit fees requirement under section 402(b)(3) of
new Title IV-of the Act  (concerning permits).

        CAA  Section 110(e)—EPA Action on  Plan  Submissions

     This subsection  contains the  requirements for  EPA action on
SIP submissions, including timetables and  the types of actions EPA
is authorized to take.

Paragraph (1)—Completeness of Plan Submissions:

     EPA  is  required   to  promulgate   minimum   criteria  for
completeness that all plan submissions (except initial SIP elements
submitted after promulgation of a new or revised NAAQS) must meet.
before  EPA  is obliged to approve or disapprove them.   Within 60
days of EPA's receipt of a  submission (but no later than 6 months
after the date  the SIP was due) , EPA must  determine whether the
submission meets  those minimum criteria.   If  EPA  determines that
the submission does not meet the minimum criteria for completeness,
the State is treated  as having failed to make the submission, and,
in the  case  of  submissions required by  Part D (for nonattainment
areas)  or  in response to EPA's SIP  calls,  EPA must  follow the
applicable provisions of  sections 179 and 180 (concerning sanctions
and Federal  Implementation  Plans).

Paragraph (2)—Deadline  for Action:

     EPA must act on  each complete submission within 12 months of
its  submission,  and   also  act on submissions  not subject  to the
completeness criteria within 12 months of submission.
Paragraph (3)—Full and  Partial Approval and Disapproval:

     This  authorizes  EPA  to  approve  a  submission  in  full,
disapprove it in  full, or approve it in part and disapprove it in
part, depending  on the extent to which  it meets  the requirements
of the  Act.

Paragraph (4)—Calls  for Plan Revisions ("SIP Calls"):

     This authorizes EPA to' require  a  State  to  revise  its plan

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                              -  7  -

whenever EPA  finds  that the plan  is  substantially inadequate to
attain or maintain the NAAQS for any area, to mitigate interstate
pol-lutant transport, or  to  otherwise  comply with any requirement
of  the  Act.    EPA  may  establish a  schedule  for  the  state's
submission of such a SIP revision.  In addition, EPA may, in its
discretion, subject the State to the same requirements that applied
to  the  SIP  for  which  EPA  issued  the  finding,  to  establish
appropriate deadlines.

Paragraph (5)—Corrections:

     This explicitly authorizes. EPA on its own motion to correct
any errors it may make in taking  any  action, such as issuing any
designation or  classification,  or approving  or  disapproving any
plan.    •                                                 •

                CAA  Section  110(f)—Plan Revisions "

     This subsection requires  EPA to  approve  a  SIP  revision if,
but only if, the revision will not interfere with any requirement
of the Act  (including any reasonable further progress or attainment
requirement).

 CAA Section 110(g)—Sanctions and Federal Implementation Plans

     EPA is authorized, but  not  obligated,  to  apply sanctions {the
types of which  are set  out  in  section  179,  described  below)  or
promulgate  a  federal  implementation  plan  if  (i) the  State has
failed  to  submit  one  or more  of  the  elements  required for  a
nonattainment area; (ii)  EPA disapproves such  an element submitted
by the State;  (iii) the State has failed to make any other required
submission (including a maintenance plan), or EPA has disapproved
such  other  required submission;  or   (iv)  any requirement of  an
approved plan  is not  being implemented.   However,  the  highway
sanction applies only with respect to  (i)  and  (ii) above.  EPA may
apply a sanction or promulgate a federal implementation plan with
respect to any portion of the State determined appropriate.   FIPs
are subject to further requirements under section 180.

               CAA Section 110(h)—Savings Clauses

     In making the  transition  from the  requirements of the current
Clean Air Act to the requirements of the Clean Air Act as amended
by this bill, certain savings clauses, set out in this subsection
110(h), are appropriate:

Paragraph (1)—Plan Provisions under Existing Standards:

     Currently approved  plan  provisions remain  in  effect,  until
EPA approves a revision.  If a  State  submits an original  SIP for
an area not designated  nonattainment,  to provide  for attainment of
a NAAQS in effect prior to these amendments  (e.g., the lead NAAQS,

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                             -  8 -

for which there are no designations at all), that SIP must provide
for attainment within 3  years of  submittal of the SIP.  If a State
received a notification  (under current  section 110(a)(2)(H)(ii),
prior to the enactment of these  amendments), that  its  SIP for  an
area not designated nonattainment is substantially inadequate, then
a SIP revision submitted in response  to  that finding must provide
for attainment within 5  years of the  finding of inadequacy.

Paragraph  (2)—Retention of Construction  Moratorium  in  Certain
               Areas:

     Any construction ban  currently  in  place in any area (under
section H0(a)(2)(I)) due to failure to submit a new source review
permit program, or  failure  to submit an  approvable SIP providing
for  attainment or maintenance  of  the  sulfur oxides NAAQS  by
December  31,  1982, remains  in  place until  EPA approves" a  plan
correcting those deficiencies by meeting the requirements of  new
section I72(c)(5) and subpart 5 of Part  D,  as applicable.
SECTION 101(a)(2) THROUGH (a)(11)

     Numerous conforming,  technical, clarifying, and other changes
are made  to  other subsections of CAA  Section 110.  Current  CAA
Sections  llO(a)(3)(B>  through  H0(j)  are  amended,  revised,  or
repealed, as follows:
  Current CAA Section—

  llO(a)(3)(B)  (taking steps  to
  reduce fuel burning).

  110(a)(3)(C)  (exemptions  from
  SIP revision requirements).

  110(a)(3)(D)  {requirement  that
  ozone  and  CO  extension  area
  plans meet basic transportation
  needs).
  110(a)(4)
 -review of
  sources).

  110(a)(5)
  review).
   .(preconst ruction
the location  of new
  (indirect
source
  110(a)(6)    (supplemental    or
  intermittent control system).
                        Is Revised as Follows—
                                                   t
                        Redesignated as 110(j)(l), with
                        conforming changes.

                        Redesignated as I10(j)(2), with
                        conforming changes.

                        Repealed, because revised Part
                        D    adequately     addresses
                        transportation-related issues.
          Repealed,   because  unnecessary
          given requirements  of Parts  C
          and D.                  •
Redesignated  as  110(k),
conforming changes.

Redesignated as 110(1).
with

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110(b) {extension of period for
plan submission).
110(c)(l)  (promulgation  by EPA
of federal implementation plan) .

110(c)(2)(A)  (study  concerning
certain  transportation  control
measures).
110(c>(2)(B)
regulations)
              (parking surcharge
    c)(2)(C)    (suspension   of
regulations  concerning ' parking
supply).

110(c)(2)(D)     (definitions
relating    to    transportation
control measures).

110-(c) (2) (E)   (requirement  for
public  ; hearing   for.  certain
provisions     concerning
transportation management).

110(c)(3)  (delegation by EPA to
local government of authority to
.implement  federal plan).

llO(c)(4)  (temporary suspension
of  plan  provisions concerning
retrofits,  gas  rationing,  and
parking supply).
H0(c)(5)   (bridge
related provisions).
                      toll   and
110(d) (definition of applicable
implementation plan).
110(e)  (two-year extension
time to attain the NAAQS).
                             of
110(f)  (national  or  regional
emergencies).
                                   Repealed, because  new schedule
                                   in  section  110(e)  is adequate
                                   for these purposes.

                                   Repealed  and  replaced by  new
                                   sections 110(g) and 180.

                                   Repealed as deadwood.
Redesignated as 110(m)(l), with
conforming changes.

Repealed as deadwood.
                                   Redesignated as I.10(m)(2),  with
                                   conforming changes.
                                   Redesignate as  110(m)(3),  with
                                   conforming changes.
                                   Redesignated as I10(m)(4),  with
                                   conforming changes.
                                   Repealed as deadwood.
Redesignated as H0(m)(5), with
conforming changes.

Redefined  as  110(n)(l),  with
conforming changes.

Repealed because new attainment
dates    adequately    address
circumstances of the extension.

Redesignated as 110(o).

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  110(g)   (temporary
  suspensions).
                 - 10

           emergency
  110(h)   (publication   in
  Federal Register of SIPs)
                 the
  HO(i)
  revisions)
(limits
on
SIP
  110(j) {technological systems of
  continuous emission reduction).
             Redesignated as 110(p), with the
             reference  to  four-month period
             replaced by a  reference to 12-
             month period.

             Redesignated as 110(q), periods
             extended from  annually to five
             years  after  enactment  of this
             bill,  and  every  three  years
             thereafter.
Redesignated  as  110(r) ,
conforming changes.

Redesignated as llO(s).
with
SECTION 101(b)

     This section of the bill amends Clean Air Act section 118, to
explicitly waive immunity for federal facilities from permit fees
charged by the States (or political subdivisions  thereof) that meet
the  requirements  of section  402(b)(3)  of Title  IV or  that  are
reasonable service charges,  as long as those fees or charges do not
discriminate in favor of State and local facilities.

SECTION 101(C)

     This  section  of the bill  amends  Clean Air Act  ectiori 123,
concerning stack heights.  The bill amends section 123 to clarify
the definition  of "dispersion  technique"  with respect  to major
sources and  the use of  merged  stacks,  and to  prescribe the GEP
("good engineering practice") formulas  as  the proper  means for
establishing stack height credit  for existing  sources.   The bill
would also prescribe that a major source seeking to demonstrate a
higher  GEP  stack  height  than  formula height  must  meet  the
applicable new  source  performance standard limits.   New sources
would be excluded from coverage.
Section 102.   General Provisions for Nonattainment Areas.

     In general,  this section of the  bill  amends Part D of the
Clean  Air  Act  to include  5  subparts  that  (i)  provide  general
requirements   for   all   nonattainment   areas,   (ii)   specific
requirements  for  ozone   nonattainment  areas,  (iii)  specific
requirements for CO nonattainment areas, (iv) specific requirements
for PM-10 nonattainment areas,  and  (v)  specific requirements for
sulfur oxides, nitrogen dioxide, and lead nonattainment areas.

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                              - 11 -
SECTION  102(a)(l) THROUGH  (a)(2)

     This  section of the  bill amends existing  CAA section 171,
regarding definitions, and redesignates the section as  CAA section
170.   The  definition of "reasonable further progress" is revised
to  mean  such annual  incremental  reductions  as prescribed by the
Clean  Air  Act  or EPA.,  The definition of  "nonattainment area"  is
revised  to mean  any area whose  designation  of  nonattainment  is
promulgated by .EPA.


'SECTION  102(a)(3)

     This  section  of  the  bill  adds a   new  CAA  Section  171-—
Applicability.   The  generally applicable provisions  of  part D,
subpart  1  apply to  all  nonattainment areas, except as explicitly
provided otherwise  under other  subparts  relating  to  specific
pollutants.
SECTION 102(b)

     This  section of the bill  substantially  amends existing CAA
Section 172—Nonattainment Plan Provisions in General.

     CAA Section 172(a)—Classifications and Attainment Dates

Paragraph  (1)—Initial Classification:

     After  promulgating  designation  of an area as  nonattainment,
either  soon after promulgating a new  or  revised  NAAQS or at any
other time,  EPA ,is  authorized to classify nonattainment areas for
purposes  of imposing  different  attainment  dates  and different
control requirements.  In determining the  classifications, EPA may
consider the severity of the air quality problem, the  feasibility
of pollution control measures, and other factors.  To announce the
classifications, EPA must publish a notice in the Federal Register,
which is not subject  to  notice  and comment and is not subject to
judicial review.  However, EPA's classification may be challenged
after EPA takes action on a SIP submittal or imposes sanctions.

Paragraph  (2)—Attainment Dates for Nonattainment Areas:

     For primary NAAQS, a nonattainment area must  reach attainment
as expeditiously as practicable, but no later than five years from
the  date  of designation  to  nonattainment.     EPA  may grant  an
extension  of up  to 20 years,  depending  on  the  severity  of the
problem and  the feasibility of control measures.

     For secondary  standards, the attainment date is a reasonable
time after  the date of designation.

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                              -  12  -
     The Administrator may grant up to two one-year extensions of
the  attainment  date,  upon  request by  the  State,  if the  State
complies with all  plan requirements  and  no more than a minimal
number of exceedances  of the  standard,  as determined  by  EPA, has
occurred.

        CAA Section 172(b)—Schedule for Plan Submissions

     When EPA promulgates designation  of an area as nonattainment,
it must  set  a schedule for plan  submittal.   At  the  latest, all
elements of the plan other than the attainment demonstration must
be  submitted  within  3  years  from  the  promulgation  of  the
nonattainment designation.

        CAA Section 172(c)—Nonattainment Plan Provisions

     The nonattainment plan must include the following provisions
(in addition  to  the provisions identified under  section . llO(d) ,
which generally apply to all SIPs):

Paragraph (1):

     Reasonably available control  measures  (including reasonably
available control technology  (-"RACT") on  stationary sources), as
EPA may require.
Paragraph (2 >:

     Requirements for reasonable further progress.

Paragraph (3):

     Emissions inventories, including periodic updates as  may be
required by EPA.

Paragraph (4) :

     An identification of expected emissions from new sources and
a demonstration that those  emissions  will be consistent  with the
projected progress towards  attainment and ultimate  attainment by
the date required.

Paragraph (5):

     Requirements for  permits for  new sources, in accordance with
CAA section 173 (below).

Paragraph (6):

     Emission limits and other  measures necessary for attainment
(including, at the State's choice, economic incentives  such as fees
or auctions).

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                              -  13  -
                CAA Section 172(d)—Plan Revisions
       Requiredin Response to Findings of Plan Inadequacy

     If the State is required to  submit  a SIP revision because EPA
has issued a  finding  that  the SIP is substantially inadequate to
provide for attainment or  meet any other requirement of the Act,
the SIP revision must correct any deficiencies identified by EPA,
and meet  all  other applicable requirements  of the Act.   EPA is
authorized to adjust otherwise applicable dates (for example, the
dates the  inventory and  control  measures are  due)  to the extent
necessary to apply those requirements in a consistent fashion.
SECTION 102(C)

     This section of  the  bill  amends  CAA section 173, concerning
permit requirements.

                  Requirements for New  Sources

     The current Clean Air Act requirements  for new and modified
major stationary sources,  including permits, are  retained, revised,
and expanded.

                       Permit Requirements

     The requirement that new sources,  under certain circumstances,
obtain offsets  for  their emissions  is  retained  (although  it is
limited in the manner  discussed below).  EPA is given the authority
to set the rules for determining the amount of offsets necessary-
-the "baseline"—(e.g., based on actual or allowable emissions) but
this determination must be consistent  with .the assumptions used in
the attainment demonstration.   The bil also retains and expands the
provision requiring States to  analyze possible  alternative sites
in issuing new source permits.

     Sources that emit 100 tons per year or more must obtain case-
specific offsets (and cannot rely on  any growth allowance in the
attainment demonstration),  except for  sources  located  in  zones
targeted by the Department of Housing and Urban Development and EPA
for economic development.

     Current  section  173(4),  which   is  redesignated as  section
173(a)(4), is amended to provide that  permits cannot  be issued
under an approved permit program if EPA determines  that the State's
plan is not being adequately implemented.

     Technical  and  clarifying changes  are  made to  the  flush
language at the  conclusion of current  section 173  (which, as noted
above, is redesignated as section 173(a)).
           Prohibition on Use of Old Growth Allowances

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                              -  14
     A new  provision is added  which prohibits continued  use of
growth allowances approved prior to any SIP call.   Formerly, such
growth allowances  could permit construction  of  new  sources or
modification of existing sources.


SECTION 102(d)

     This section  of the  bill  amends CAA  Section 174—Planning
Procedures.    The planning  procedures set out  in  the  current CAA
sections 174(a)  and (b) are  broadened  to ensure  that  state and
local  (including regional)  authorities share  in  the  development
and implementation  of  the  SIP,  with  some  technical  revisions to
make clear that implementation includes enforcement and to conform
this  section with  revisions in other  parts of  the  Act.    In
addition, a new subsection  (c) is added, which clarifies that when
a nonattainment area is  included within  more  than one State, the
affected States may jointly undertake these planning procedures.


SECTION 102(e)

     This section of the bill amends CAA Section 175-~Maintenance
Plans. Any  nonattainment area seeking redesignation to attainment
must  submit  an approvable  maintenance  plan showing  that  the
standard will be maintained for  at  least .10 years.  This provision
replaces the current section 175, which provides for EPA grants to
localities for transportation or air quality maintenance planning
responsibilities.


SECTION 102(f)

     This section of the bill amends CAA section 176--lnterstate
Transport  Commissions.     This   new  section  authorizes  EPA  to
establish an interstate transport region, consisting of all States
or parts of States with a shared air pollution problem.

              New CAA Section 176(a)—Authority to
              Establish  Interstate  Transport Regions

     EPA is authorized, upon its own motion or upon petition from
a State,  to establish an interstate transport region that consists
of all States pollution  emissions  from which  contribute to NAAQS
violations in any one State.  After  establishing such a region, EPA
may add or remove States from it, based on the same considerations
concerning emissions.
          New CAA Section 176(b)—Transport Commissions

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                              -  15  -
     Whenever EPA  establishes  an interstate transport region, it
must  establish  a  commission,  consisting . of  one  air  pollution
official  from  each State in the region, and a representative of
EPA  (along  with  non-voting  representatives  from  each  of  the
relevant EPA regions).  The commission may recommend that EPA issue
a SIP call to certain States, requiring them to include specified
measures  in their  SIPs to solve the interstate transport problem.

           New CAA Section 176 (c) — Commission Requests

     EPA  is-  obligated  to  act  on  each  of  the  Commission's
recommendations within 18 months, although EPA may. disapprove them
(i.e., decline to  issue the SIP call).

     Conforming  changes  are made to  CAA section 106  (authorizing
EPA  to  fund interstate  air quality  agencies)  to  authorize  EPA
funding for transport commissions formed under new CAA section 176.
SECTION 102
     This section  of  the bill adds two new  sections  to the CAA:
Section 179 — Sanctions and Consequences of Failure to Attain, and
Section 180 — Federal Implementation Plans.
                        , !,'.
     New  section  179  provides EPA  with the authority  to impose
sanctions on  States when EPA finds that  the State has committed
one  of  several  specified  planning  failures,  and  where  EPA
determines that the State is not using reasonable efforts to cure
those  failures.   This section revises  current law to  provide a
uniform procedure for  imposing sanctions, require close and regular
EPA scrutiny of State  actions, and provide greater EPA flexibility
in imposing any sanctions.

New CAA Section 179 (a) — Initial Reasonable Efforts Determination

     Under the new scheme, at the time EPA finds that State action
is  deficient  in  one  or  more  respects,  as  described  under CAA
section lio(g) , EPA must publish in the Federal  Register  a proposed
determination of whether the State  is making  reasonable  efforts to
cure the  failure.. If EPA proposes  to  find  that the State is not
making reasonable efforts, EPA must, at the  same time, propose to
apply one or more  sanctions  (described below).  Within  the next six
months,  EPA  must finalize the  notice,  and,  if it  finds  no
reasonable efforts, apply one or  more the  sanctions.  The criteria
for applying sanctions are 'whether it will encourage the State to
undertake reasonable efforts and prevent further deterioration of
the State's air quality.
           New CAA Section 179(b)--Available Sanctions

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                              -  16  -
     The sanctions  that are available  include  (i)  a ban  on the
construction or  modification  of major stationary sources  in the
nonattainment area  (or portion of such area, if the State failure
relates exclusively to  that portion).   In  the  case  of ozone, the
ban is also available with respect to the area within 25 miles of
the nonattainment  boundary;  (ii)  a  moratorium,  imposed  by the
Secretary  of  Transportation,  on  the  approval  of  any  highway
projects, or the award  of  any  highway grants in  the area (except
that the  highway sanction applies  only with respect  to certain
State failures, as described under the summary for section llO(g),
above).  This  highway sanction applies only if EPA believes that
attainment and maintenance  of a NAAQS cannot reasonably be achieved
without the  inclusion  of transportation control measures  in the
plan.    The Secretary of Transportation may also  exempt certain
projects from"  the moratorium.   In addition, the  highway sanction
may be imposed, as to a particular nonattainment area (or portion
thereof), located within a particular state, no more than once in
any consecutive  five-year period  beginning  with   the  date  of
enactment;   (iii)   a  ban  on   drinking  water   hookups  in  the
nonattainment area  (or  portion.of such area),  except for hookups
necessary to correct a public health hazard; and (iv) a withholding
of all or part  of the air pollution grants that EPA may award under
CAA section 105.

                    Mew CAA Section 179(c)—
           Subsequent Reasonable  Efforts  Determinations

     No later than 12 months after publishing a final notice as to
whether the  State  has  made reasonable efforts,  EPA  must publish
another proposal on whether the State currently is or  is not making
reasonable efforts, followed by a final notice within six months.
If EPA determines that the  State  is  making reasonable efforts, EPA
must lift any  sanctions that had previously been imposed (except
as described below, under CAA section 179(d)).   If EPA determines
that the State is not making reasonable efforts,  EPA must keep in
place any  existing sanctions  and  (in EPA's discretion)  add any
further sanctions or impose at least one sanction if none were in
place.

               New CAA Section 179(d)—Failure to
  Submit  a  Reviewable Plan  Within 18 Months  of the Required  Date

     Even if the  State  is  making reasonable efforts  to  submit a
complete SIP or SIP revision, if  it fails to do so within 18 months
of the required due date,  EPA  must  propose to  apply at least one
sanction.   EPA must make  that sanction final within  six months
thereafter (if the failure has continued).
       New CAA Section 179(e)—Notice of Failure to Attain

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                              - 17  -
     EPA is required to publish a notice in the Federal Register.
as  expeditiously  as  practicable  after  the  attainment  date,
identifying areas that failed to attain.

      CAA Section 179(f)—Consequences  for  Failureto Attain

     For areas that fail to attain,  EPA is  authorized to determine
additional  measures to  be  implemented—including  all  feasible
measures—and  the  States are required to  submit  a  SIP revision
containing such measures within three years  (or sooner,  if required
by EPA).  Areas  that fail to attain are granted a new attainment
period, starting from the date EPA notified the area of  its failure
to  attain,  that  is the  same  as  the  initial  attainment  period
provided under section 172(a)(2).

	     New CAA-Section  179(g)—Construction Bans  '

     Any area designated nonattainment upon enactment of the bill
and that does not receive EPA approval of  its construction permit
program for major new  and modified  sources by December 31, 1992,
will face a moratorium on the construction of.such sources.  -The
same ban will  also  apply to areas designated nonattainment after
enactment if they  do  not receive EPA  approval  of such a program
within 42 months of the designation.
                                       '
        New CAA Section 180—Federal Implementation Plans

     This  section  on  federal   implementation  plans  ("FIPs")
effectively replaces  the  former  section  I10(c){l)  in  order  to
maintain EPA's opportunity to promulgate a federal plan, but in a
more practicable and flexible manner.

            New CAA Section  180(a)--General Authority

     EPA is authorized to promulgate a FIP at  any time it finds
the State has  failed to submit a  SIP, or after EPA disapproves the
SIP.                       •                    '

               New  CAA  section 180(b)—Requirement
            Following Reasonable  Efforts Determination

     Although EPA is never required to promulgate a FIP, the Agency
must decide, at the time it  reviews a previous finding concerning
reasonable efforts by the State, and determines that a State  is not
making  reasonable  efforts,  whether  to  promulgate  one.    In
determining whether  to promulgate  a  FIP,  EPA  must  consider  the
practicality of  such a  plan, the severity of  the nonattainment
problem,  the   extent  to  which  the  State  is  making  reasonable
efforts, costs, and the amount of emissions reductions that would
be achieved by the  FIP.   EPA may not promulgate a FIP unless  the
FIP will result in  significant additional progress towards meeting

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                              -  18  -

the  requirements  of  the  Clean Air  Act.    EPA must  explain the
reasons underlying  the  decision,  and take  final  action within 6
months of the date of proposal.

               CAA section 180(c)—FIP Obligations

     EPA  is currently  under court  order  (or  has  entered  into
judicial settlement agreements)  requiring  the Agency to promulgate
several FlPs pursuant to  the former section  110{c).   Subsection
180(c) provides that EPA is not required to promulgate any of these
FIPs.
Section 103.   Additional Provisions For Ozone Nonattainment Areas.

     This section adds a new Subpart 2  to  Part. D of Title I of the
Clean Air Act, consisting of new sections 181 through 185.

      New Section 181—Classifications and Attainment Dates

     Ozone nonattainment areas are  subject to four classifications
with attainment dates based on design value, as shown below.  EPA
must classify ozone nonattainment areas at the time it designates
areas as nonattainment.  This initial classification is not subject
to   notice-and-comment   or   judicial   review,   although   the
classification may be challenged after EPA  takes  action on a SIP
submittal or imposes sanctions.
        Area Class-
        ification

        Marginal

        Moderate

        Serious

        Severe
Design
Value

.13 ppm

.14-.15 ppm

.16-.18 ppm

.19 ppm and
above
Primary Standard
Attainment Date

December 31, 1995

December 31, 1995

December 31, 2000

As expeditiously as
practicable, but no later
than December 31, 2010
     Several special rules  and  adjustments  apply with respect to
these classifications and attainment dates:   (i)  Areas currently
designated nonattainment, but having a  design  value of less than
.13 ppm, are to be  classified as  marginal.   (ii)  EPA may adjust
the classification  of any" area whose  design  value  is  within 5
percent of the classification "cut-point".   (iii)   EPA may allow
up to two  one-year  extensions of the attainment  date as long as
the State  has  met all SIP commitments  and  has not recorded more
than one exceedance  of the ambient air quality standard in the year
preceding the extension year.

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                              -  19  -

  New CAA Section 16Kb)—Mew Designations  and  Reclassifications

     Areas subsequently designated  nonattainment after the initial
designation and  classification  are given -the same time frames to
reach attainment as areas initially designated nonattainment.  No
later than 6 months after the attainment date has passed, EPA must
publish a notice identifying each area that failed to attain.  EPA
must reclassify each such area to the next higher classification,
or (if higher) the classification applicable to the area's design
value.  Areas that are  "bumped  up" in this respect  must begin to
meet the  requirements of the new classification  from the date of
reclassification.

      New CAA  Section  182—Plan  Submissions and Requirements

     All  ozone  nonattainment  areas   are   subject  to  specified
planning   and   control   requirements,    depending   on   their
classification.  Each higher classification must  comply with the
requirements  of the  preceding  classification,  plus  additional
requirements.

              New CAA  Section 182(a)—Marginal  Areas

     States must make the following submissions,  with  respect to
marginal areas:

Paragraph (1):

     Within two  years after  enactment, the State must  submit  a
comprehensive inventory.

Paragraph (2):

     The State must submit various  SIP revisions, to the extent it
has  not  already  done so,  to  include  (i)  reasonably  available
control  technology requirements,  which  EPA  has  identified  in
various guidance documents;   (ii) corrections to any motor vehicle
emission control inspection  and  maintenance program, as previously
required  in  the area,  to  assure  that the  program  is  the  most
stringent that is required or already in place for  the area; and
(iii) requirements that  new  or modified sources obtain permits and
undergo  new   source  review,  in the  manner provided  under  EPA
guidance.

Paragraph (3)  :

     Each year after the initial inventory is due, the State must
submit an updated  inventory.   In addition,  within 2 years  after
enactment, the State must require all  stationary  sources (except,
under certain  circumstances,  for sources emitting less than 25 tons
per  year of  VOCs  or  oxides of nitrogen)  to submit  emissions
statements.

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                              -  20  -

             NewCAA  section  182(b)—Moderate Areas

     States containing these areas must make the same submissions
as marginal areas, as well as the following submissions:

Paragraph (1):

     These States must submit  SIPs  within three years of enactment
providing for 15% reductions, from 1990 through 1995, from baseline
emissions in the year of enactment. Baseline emissions are actual
emissions during the year of enactment, except for emissions that
are expected to be eliminated  under current EPA regulations due to
(i> motor  vehicle fleet turnover  or  (ii)  regulations concerning
gasoline  volatility.    All emissions  reductions are  creditable
against the 15%  requirement,  except  for reductions  due to (i) or
(ii) above, and for reductions due to corrections to current SIPs
concerning  reasonably  available   control  technology  and  motor
vehicle inspection arid maintenance. This 15% reduction requirement
applies in  lieu  of any other requirement  for  reasonable further
progress or submission of an attainment demonstration.

Paragraph (2):

     States must  implement new  RACT  control  measures recommended
by EPA, and must apply RACT to sources with the potential to emit
100 tons per. year.

Paragraph (3):

     Within 2 years after the date of  enactment, States must submit
a SIP revision  requiring owners or operators of gasoline dispensing
systems to install and operate a system for  gasoline vapor recovery
of emissions from  the fueling'of motor vehicles  (known as "Stage
II controls''}.   These SIP provisions  must take effect  within 6
months to 2 years of State  adoption of  the SIP revision, depending
on the size of the gasoline dispensing facilities  (including retail
gasoline stations  and fleet fueling  facilities)  and whether they
are  newly constructed.   EPA is  directed to  issue  guidance as
appropriate on  the effectiveness of the required Stage II controls.
EPA is authorized to exempt small facilities.

              New CAA Section 182(c)—Serious Areas

     A State with a serious ozone nonattainment area must meet the
same requirements imposed with respect'to a moderate area, as well
as the following:
Paragraph
(l)—Attainment  and
   Demonstrations:
Reasonable   Further   Progress
     The State must  submit,  by 1995,  an attainment demonstration
based on photochemical grid modelling.  At the same  time, the State

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                              - 21 -

must submit  a  demonstration  that  the plan provides for emissions
reductions of three percent a year, averaged over each three-year
period starting in 1996 (on a rolling basis).  However, the State
may provide for less than three-percent per year if  it includes all
feasible measures, or if less than three percent is necessary for
the area to reach  attainment  (or if the area controls NOx emissions
in accordance with EPA guidance).  The three-percent reductions are
required  to be computed  in the  same manner  as the  15  percent
reductions required for the first five years.

Paragraph (2)—Enhanced Vehicle Inspection and Maintenance Program:

     Within  2  years  of  enactment,  the  State is  required  t:.o
implement  an enhanced program of  motor  vehicle  inspection  and
maintenance,  in accordance  with  EPA guidance.   The  program must
meet a  performance standard achievable  by  a  program combining
emission testing with  inspection to  detect  tampering with emission
control devices or misfueling  of  all light-duty vehicles subject
to section  202.   This program  must  apply  for each  urbanized area
with a population of 200,000 or more.   The programs  must include
computerized  emission  analyzers,  as well  as  enforcement  through
vehicle  registration  denial  unless  the  State can show  that  the
enforcement  provisions of an existing  program are  more effective
in assuring  that  non-complying vehicles are not operated  in  the
area.  The programs may not allow  waivers  for any vehicles covered
by the emission control performance warranty under  section 207(b)
or for  tampering-related repairs.   If waivers are allowed  the
programs must  require  a minimum  expenditure of $75 on  pre-1981
models and  of $200  for the  initial waiver period and $75  in an
immediately  subsequent period  for 1981 and  later  models.   These
dollar amounts are to be adjusted periodically for  inflation.

Paragraph (3)—Clean-fuel Vehicle Program:

     The State must submit a SIP  revision, for each  area covered
by, the  clean-fuel  vehicle program  prescribed under section 212(b)  ,
which includes measures EPA may require to  ensure the effectiveness
of that program,  including all measures necessary  to make use of
clean alternative fuels in clean  fuel  vehicles economic  from the
vehicle  owners'   standpoint.   Each area  which seeks  voluntary
inclusion  in the Federal  clean   fuel  vehicle program must  also
submit a SIP revision.  If a  State fails to meet this requirement,
it may  not  receive  credit  in any  attainment demonstration  or
reasonable further progress demonstration  for emissions reductions
from implementation of the Federal clean-fuel vehicle requirements
under section 212.

     However, a State may opt out  of  this requirement, in whole or
in part,  if, within  30 months of enactment, EPA approves  a  SIP
revision,  submitted  by the  State  within 24  months,  that  will
achieve  long-term reductions  in  ozone-producing  and  air  toxic
emissions  equal   to  the performance  standard prescribed  under

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                              -  22  -

Section 212(b)(l)  or  the percentage thereof  attributable  to the
part of the program the State is opting out of, employing measures
other than those already required under the bill (either expressly
or  as  necessary  to   meet   requirements  for  annual  percentage
reductions).  In addition,  if EPA  approves  any fuel-pooling plan
applicable  to an  area, EPA may approve a SIP revision to assure
consistency with such plan.

Paragraph  (4)—Transportation control:

     The State must also submit transportation controls  if greater-
than-anticipated mobile  source  emissions occur.   These controls
must include measures  selected from section 108(f) as necessary to
reduce  vehicle  mile and  congestion  levels.    Alternatively, the
State  may  obtain  equivalent  reductions  from  other  types  of
transportation  or  mobile source controls,  or controls  on other
sources.

              New  CAA  Section 182(d)--Severe  Areas
                                                 •>
     A State containing a severe ozone nonattainment  area must make
the  submissions required  for serious  areas,  and  must  submit  a
revised  attainment demonstration,  by  December  31, 2000,  which
includes the sanctions provisions  required under  CAA section 185
(described below).

                    New  CAA Section  182(e)—
           Certain Non-self -generating (Nori-MSA) Areas

     If EPA determines that any nonattainment  area outside, and
not  adjacent to,  an MSA or CMSA (if any) does not significantly
contribute  to ozone nonattainment  in that area or  another area,
the  area  may be subject  to only the requirements  applicable to
marginal areas,  regardless of the air quality.

            New  CAA Section  182(f)—Reclassified Areas

     Areas that are reclassified because they fail to attain must
meet the requirements  applicable to the reclassification. . EPA may
adjust  dates for   submission of  SIPs  as  appropriate.    Areas
reclassified as  moderate are granted an attainment date of December
31,  2000,   and  must meet  the  3%  progress  requirement that  is
otherwise applicable only to serious and severe areas.

New CAA section 183(a)-(b)—Control Techniques Guidelines for VOC
Sources, and Alternative ContSoargeehniques  Document for NOx

     EPA is required to publish  seven control techniques documents
(CTGs) , and prepare an  alternative  control techniques document for
NOx sources, within three years of enactment.

     New CAA Section 183(c)—Consumer or Commercial Products

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                              - 23  -
     EPA is required  to  submit,  within two years of enactment, a
study  to  Congress  concerning  emissions  of  volatile  organic
compounds  from  consumer  and commercial  products.    Following
submission of this  study,  EPA is authorized to issue regulations
reducing emissions from consumer  and commercial products to a level
that  reflects  reasonably  available  controls.    Consumer  and
commercial products are defined as any article  or product* the use,
consumption,  storage,  disposal,   or  destruction of  which  causes
release of volatile organic compounds.

     EPA may  apply  the  regulations  at  only the  level of  the
manufacturer,  processor,  wholesale  distributor,  or importer,  and
may exempt  health use products  for which there are  no suitable
substitutes.    EPA  is  given  broad  discretion  in  fashioning
appropriate regulations, including the use of economic incentives
(such as fees or  auctions).   EPA may retain any funds collected.
If  the  State  develops  adequate  procedures  under  State law  for
implementing and enforcing these  regulations, EPA may approve such
procedures.

              Mew  CAA  Section  183(d)—Marine  Vessels

     EPA is required  to  promulgate, within  four years after  the
date of enactment  of the bill, standards for emissions from loading
and unloading  marine tank vessels,  to  take  effect after the period
EPA finds necessary to  permit the development of  the requisite
technology.    The Department  within  which  the Coast Guard  is
operating is required to  issue regulations  to ensure the safety of
the  required  emission  controls.   Until  EPA promulgates  these
standards,   no  State   or  locality may  regulate  marine  vessel
emissions,  and after EPA  promulgates these  standards, any State or
locality regulating such emissions  must  apply  standards at  least
as strict as EPA's.

        New CAA Section'183(e)—Ozone Design Value Study

     EPA is required to  complete,  within three years of the date
of  enactment  of  the  bill, a study on. the  methodology used  to
establish the  design value for ozone.

  New  CAA section  184—Northeast  Transport  Region and Commission

     The bill establishes  a  Northeast  Corridor regional  ozone
transport commission  containing  11  States  and  the District  of
Columbia.    This  commission  will  convene .within  six months  of
enactment.

          Mew Clean Air  Act Section 185—Sanction  for
      Severe Ozone Nonattainment  Areas for  Failure to Attain

     SIPs for  severe areas are required to impose a fee of  $5,000

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                              -  24  -

per ton of VOC on major stationary sources, in areas that fail to
attain by the applicable date.  The fee applies only to the extent
the  source  fails to  reduce  its emissions  by 20%  following  the
attainment date.  The fee begins in the year after the attainment
year, and lasts until the area is redesignated attainment (except
that the fee does not apply during any of the one-year extensions
of the attainment date authorized under section 181).  If EPA finds
that the State is not collecting the fees  properly, EPA may collect
them, with interest for the period when the fees were not paid to
the  State.   The  amount  of  the fee  is  to be adjusted  each year
(beginning with the year after enactment} for inflation.

     Areas with a  total  population  under  200,000  that  fail  to
attain the  standard by the  applicable  date,  are not  subject  to
sanctions if  the State  demonstrates  that ozone  transport  is  the
cause of the nonattainment problem, and if the area otherwise meets
all of the Act's requirements.
Section 104.
Additional   Provisions   For    Carbon   Monoxide
Nonattainment Areas
     This section of  the  bill adds a new subpart 3  to  Part  D of
Title I of the Clean  Air  Act,  consisting  of  new sections 186 and
187.

      New Section 186—Classification and Attainment Dates

     Carbon  monoxide  nonattainment areas   are  subject  to  two
classifications with  attainment  dates  based on  design  value,  as
shown below.
        Area Class-
        ification

        Moderate

        Serious
          Design
          Value

          9.5-16.4 ppm

          16.5 ppm  and
          above
Primary Standard
Attainment Date

December 31, 1995

December 31, 2000
     Similar rules as found in the ozone nonattainment area apply
with respect  to (i) EPA  publication  of a notice  announcing  the
classification  of  carbon monoxide  areas;  (ii)  areas  designated
nonattainment prior  to  the  enactment  of this Act,  but  showing a
design value of under 9.5 ppm;  (iii)  EPA authority to adjust the
classification of nonattainment areas that are  close  to the cut-
off point for another classification;  (iv) EPA authority to allow
brief extensions of  the attainment date;  (v) requirements for areas
redesignated nonattainment after  the  effective  date of  this Act;
and (vi) reclassification of  areas that  fail to attain the ambient
air quality standard (the "bump-up").

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                              -  25  -

      New CAA Section 187—Plan  Submissions  and  Requirements

     As  in the case of ozone nonattainment areas, carbon monoxide
nonattainment  areas  must  meet requirements   that  escalate  in
stringency with the severity of the nonattainment problem.

              New  CAA Section  187(a)^-Moderate Areas

     Moderate  areas  are  required  to  (i)  submit  an  initial
inventory, followed by updated  inventories;  and (ii)  assure that
pre-1987  requirements for  inspection and  maintenance of  motor
vehicles  are  met, as  required  for marginal ozone nonattainment
areas.

              New CAA Section 187(b)—Serious Areas

     All  serious  areas must  meet  the requirements  for moderate
areas, as well as  (i)  submit  an attainment  demonstration, due by
December  31,  1995;  (ii)  implement  an enhanced  program for motor
vehicle  inspection and maintenance, as required for serious ozone
nonattainment areas;  and  (iii)  submit provisions  to  comply with
the requirements for transportation control measures, as required
for serious ozone nonattainment areas.

     In  addition,  serious  areas must submit a SIP  revision to
include  an oxygenated fuels program.   This  program  must  require
that   gasoline   available  in   the  Consolidated  Metropolitan
Statistical Area {or, if none, the  Metropolitan Statistical Area)
in which the  serious area is located be blended with oxygenated
fuels  during  the   carbon  monoxide  season  as  necessary,  in
combination with other measures, to provide for timely attainment
and maintenance of the carbon monoxide NAAQS.   This  program must
take  effect" by October  1,  1993.   States  may  opt  out  of  this
requirement by demonstrating that the  revision is not necessary to
provide  for   timely   attainment  and  maintenance  of  the  carbon
monoxide NAAQS.

           New CAA Section  187(c)—Reclassified Areas

     Moderate areas that are reclassified as serious  because they
fail to  attain must  meet  the requirements  applicable  to  serious
areas.    EPA  may  adjust  dates  for  required  submissions  .as
appropriate.   Attainment dates may not be adjusted.

    New CAA Section 187(d)—Serious Areas that Fail to Attain

     Any  serious  area that fails  to  attain must  submit, within
three  years  of  such  failure, a SIP  revision   that  includes any
additional  measures  that  EPA  may  prescribe,  considering  all
feasible measures.

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                              -  26  -

Section 105.   Additional Provisions  for  Particulate Matter (PM-
               10) Nonattainment Areas.

     This section adds a new subpart  4 to  Part D of Title I of the
Clean Air Act, consisting of sections 188 through 190.

         New CAA Section I88(a)—Initial Classifications

     All PM-10 nonattainment areas  will  initially be classified as
moderate.

       New CAA Section 188(b)—Reclassification as Serious

     EPA  may redesignate  to serious those  areas  which  cannot
practicably attain by the moderate  attainment date.   EPA must make
these  redesignations by  the end  of  1991  for areas  designated
nonattainment under section I10(b)(5), and within 18  months of the
due date for the SIP submission for areas subsequently designated
nonattainment.   All  moderate areas  that fail  to  attain  by  the
attainment date are automatically reclassified as serious.

             New  CAA  Section 188(c)—Attainment Dates

     All areas must  attain  as expeditiously as practicable, with
the   following   outside  dates:     Moderate  areas  designated
nonattainment under  section 110(b)(4) must attain no  later than
December 31,  1994; for all other  moderate  areas,  the attainment
date  is no  later than 6 years after  designation.   Serious areas
designated nonattainment  under  section 110(b)(4)  must  attain  no
later than  December  31, 2001;  for all other serious  areas,  the
attainment  date  is  no later  than 10  years after  the date  of
designation to nonattainment.

              New  CAA Section 188(d)—Extension of
               Attainment Date  for Moderate Areas

     Moderate areas may receive up to two one-year extensions  of
the  attainment  date,  in  a  manner similar  to  ozone  and  carbon
monoxide nonattainment areas.

              New  CAA section 188(e)—Extension of
                Attainment Date for Serious Areas

     Serious areas may receive  an extension of up to  5  years  if
the otherwise applicable  attainment  date  would be  impracticable,
the  SIP  has been  fully implemented,  the SIP includes  the most
stringent measures of any other State's SIP that are feasible for
the area, and the  State  submits a demonstration  of attainment  by
the most expeditious alternative date practicable.  This subsection
lists a number 'of  factors that  the Administrator may consider  in
determining whether or not  to grant  an extension,  and the length
of such extension.

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                              _  27  -
        New CAA Section 188(f)—Waivers for Certain Areas

     EPA may waive  any  requirement  applicable  to a serious area,
it determines that anthropogenic sources of PM-10 do not contribute
significantly to  the PM-10  problem  in  that area.  Similarly, EPA
may waive the requirement of  a  specific•attainment date where it
determines  that  nonanthropogenic  sources of   PM-10  contribute
significantly to the problem.

              Mew  CAA Section  189(a)--Moderate  Areas

     Moderate areas must  submit  SIPs  that require 'a  new source
review permit program,  and  either a demonstration that the plan
will  provide  for  attainment  by  the  attainment  date,  or  a
demonstration that  attainment by that date is impracticable.

              New CAA Section 189(b)—Serious Areas

     Serious  areas  must  meet  the  requirements  applicable  to
moderate  areas,  impose  reasonably  "available   control  measures
(including the adoption  of reasonably available control technology
by all major stationary sources), and either a demonstration that
the plan will provide  for attainment by  the attainment date,- or
(for those areas  for which  the  State  is  seeking an extension), a
demonstration of attainment  by the most expeditious alternate date
practicable.

         New CAA  Section  190—Issuance of RACM Guidance

     EPA must issue technical guidance on RACM for urban fugitive
dust and emissions from  residential wood combustion and prescribed
open burning within 18 months of enactment.
Section 106.   Additional   Provisions   for   Areas   Designated
               Nonattainment for Sulfur Oxides, Nitrogen Dioxide,
              . and Lead.

     This section adds a new subpart  5  to Part D of Title I of the
Clean  Air  Act, consisting  of new  sections 191  and 192.   This
subpart establishes SIP  submittal and  attainment  dates for areas
that need to  do  additional  planning to attain the  S02,  N02,  and
lead standards.
         New  CAA  Section 191—Plan Submission Deadlines

     Areas that are newly designated nonattainment  for one of these
pollutants after enactment of the bill would need to submit, a new
plan within 18 months of the designation, showing attainment within
five years  of  the designation.  Areas  that are currently designated
nonattainment for  S02 or  N02 but which never  received  full approval
of their SIPs  under the current law would have to submit corrective

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                              -  28  -

SIPs within 18 months of enactment showing attainment within five
years of enactment.

              New CAA Section 192—Attainment Dates

     The corrective SIPs for areas  that received  (or in the future
receive) SIP  calls  for  one of these pollutants  must  provide for
attainment within five years of the date of the call.


Section 107.   Provisions Related To Indian Tribes.

     The section includes  a series of  provisions authorizing EPA
to treat Indian tribes as States for certain purposes, including,
under   certain  circumstances,   allowing   tribes   to   develop
implementation plans and receive grants.

       CAA  Section  301—Authority to Treat  Tribes as States

     The Administrator is authorized to treat tribes as States for
Clean  Air  Act  purposes  arid  for  providing  financial assistance
(although tribes are not entitled to the  minimum of  one-half of
one percent of annual appropriations to which States are entitled
under Section 105).  EPA may promulgate regulations outlining the
circumstances under which treatment as a State is appropriate for
tribes and procedures for  approving tribal implementation plans.
If treatment  as a  State is  inappropriate,  the  Administrator may
devise  other  means  of  administering  the  Clean  Air  Act  on
reservations.   The receipt  of  grants is  not contingent on the
promulgation  of  regulations  so  that,   until  EPA  promulgates
regulations, EPA may continue to give grants to tribes.

           CAA Section 105(a)(l)(B)—Grant Eligibility

     Tribes are eligible to receive air grants by  including tribal
air pollution control agencies in the list  of agencies eligible to
receive grants.  At  his  discretion, the  Administrator may decide
which of the eligible tribes shall receive grants.

 CAA Section 302(b)—Definition of Air Pollution Control Agency

     The definition of air  pollution control agencies  is broadened
to include those of Indian tribes.

           New CAA Section 302(q)—Definition of Tribe

     Indian tribe is defined similarly to the definition under the
Comprehensive Environmental  Response, Compensation and Liability
Act, as amended by the Superfund Amendments  and Reauthorization Act
of 1986.

       New CAA Section 110(t)—Tribal Implementation Plans

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                              -  29  -
     Tribal implementation  plans  are to be reviewed  in the same
manner as  SIPs. .  When  plans  become effective, they  shall apply
within the exterior borders of the reservation.
Section 108.   Miscellaneous.

     This section includes a number of miscellaneous amendments to
Title I of the CAA, including, among others, the following:


SECTION 108(a)

             CAA  Section  108—Transportation Guidance

     EPA, after consultation with the Secretary of Transportation,
must  update  the  transportation-air  quality planning  guidelines
issued  in 1978,  at the  start of  the initial  Part D  planning
process.  EPA  must also  update its guidance on  various  types of
transportation controls.   The list of controls is refined from the
initial list appearing in current section 108.


SECTION 108(b)

     CAA Section  110—State Reports on  Emissions-related Data

     A  new  section 110(u)  is  added,  which requires  that  States
submit any reports EPA may require to assess the effectiveness of
any SIP or SIP revision.
SECTION 108(C)

    CAA  Section  111—Mew  Source Performance Standards  ("MSPS")

     The time frames for  developing proposed and final regulations
establishing NSPS are extended.   The  schedules  for completion of
the NSPS  for source categories  that  EPA has already  listed for
regulation,  and  for revision of  existing NSPS, are  updated and
extended.   EPA  is  authorized  to waive  review  of a  standard if
review is not necessary in  light  of readily available information.

SECTION 108(e)

         CAA  Section 114—Authority to Obtain  Information

     EPA's information-gathering  authority is  broadened to include
obtaining  information   from  persons   who   manufacture  control
equipment or who may have  relevant  information  necessary  for the
purposes of section 114.

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                              -  30  -
SECTION 108(q)

               CAA Section 126—Permit Process for
                  Addressing Interstate Effects

     Under this  provision,  a  source  or plan  in  an area  with a
permit program meeting  the  Title IV  requirements,  including the
requirements to address interstate effects of stationary sources,
is not subject to the interstate provisions of section 126.
SECTION 108(h) and (i)

           CAA Sections 163, 165—PM-10 PSD Increments

     These provisions replace the  sections  163 and 165 particulate
matter prevention of significant deterioration ("PSD") "increments"
(which were  measured  by the  former  indicator  for  particulate
matter,  "total  suspended  particulates"),  with  increments  of
comparable stringency measured by the new PM-10  indicator.   The
amendments also provide  that  any  previously-established baseline
areas and baseline dates shall  remain  in effect, in order to allow
approximately  the same amount  of  growth  as  would  have  been
permitted had the indicator never been changed.   In addition, the
total   suspended  particulates   increments   and   implementing
regulations in an  applicable implementation plan must  remain in
effect as to an area in that plan until a PM-10 PSD or new source
review plan has been  approved by EPA and made  effective in-the plan
for that  area.  Furthermore,  these provisions, and an accompanying
amendment to section 302(j), bring coal mines within the coverage
of new source review provisions,  and  allow for  an exemption from
the class II  and  class III increments  (but  not class I increments)
with respect to fugitive dust from such mines.


SECTION 108(i)

       CAA  Section  166—PSD  Increments for  Other Pollutants

     Subsection (a) is amended so that EPA is no longer obligated
to  promulgate PSD  increments for   any   pollutants  other  than
particulate matter and  sulfur  dioxide,  although EPA is  given the
authority  to  promulgate such  increments.   This provision  also
allows EPA to modify the  particulate matter  increments  if  it
further  revises   the particulate matter  indicator.    The  new
increments  would  have  to  be  roughly  comparable   in  terms  of
stringency to  the  PM-10 increments.    EPA   is  riot required  to
promulgate new particulate matter increments  if  it  promulgates a
new particulate matter NAAQS.
SECTION 108(k)—Definitions

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                              -  31  -
New CAA Section 302(r)—Definition of Federal Implementation Plan

     New CAA section 302(r) defines a federal implementation plan
as a plan,  or  a portion of a plan, promulgated by  EPA to fill a
gap in the SIP, that includes  enforceable emission limits or other
control measures, but that does not necessarily ensure attainment
of the standard.
SECTION 108(1)

              CAA Section 307—Preenforcement  Review

     CAA section 307(e) is amended to preclude judicial review of
regulations or other actions of  EPA taken under color of the Clean
Air Act, except as provided under the Act.   This provision, along
with a  revision to section  304{e), clarifies that  the judicial
review provisions  in  the Act are exclusive, and  precludes  pre-
enforcement review.
SECTION 108(m)

   CAA Section 307—Interpretation  of  State  Implementation  Plan

     A new subsection  (h)  is  added to CAA section 307, providing
that  in  the  case  of  conflict   between   a  State's  and  EPA's
interpretation of a  SIP  provision,  EPA's  interpretation  is to be
given  deference  by  a  court,  as long  as  that  interpretation is
rational.


SECTION 108(n)

         CAA Section 318—Ethics.  Financial Disclosure.
                   and Conflicts of Interest
     This section is  repealed because  its  provisions are archaic
or superceded by other  statutes  or  by  other legislation proposed
by the Administration.
SECTION 108(o)

              CAA Section 101—Pollution Prevention

     A new subsection (c) is added to section 101 to declare that
a primary goal of the Act is to promote Federal, State, and local
governmental actions for pollution prevention.

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                              -  32  -


SECTION 108(p)

           New CAASection 103—General SavingsClause

     A  general  savings  clause is  provided,  under  which  all
regulations and  standards  issued by EPA as in  effect  before the
date of  enactment of this  Act  remain  in  effect,  except  to the
extent otherwise provided by  the Act,  inconsistent  with the Act,
or changed by EPA.
SECTION 108(t)
                 New CAA Section 307(i)—Reports
     A  new  subsection  is added  to CAA  section 307  precluding
judicial review of any reports to Congress required by the Act.
Section 109.   Conforming Amendments.

     This section contains conforming amendments.

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                              - 33  -
TITLE II—PROVISIONS RELATING TO MOBILE SOURCES
Section 201.   Clean Fuel Requirements.

     This section deletes existing  CAA section 212 and inserts a
new  section  212--"Clean Fuel  Requirements",  establishing  two
programs  for  increasing the use  of vehicles  operated  on "clean
alternative fuel" such as methanol,  ethanol, natural gas, propane,
electricity  or  other  motor vehicle   fuel  such  as  reformulated
gasoline  if such  other  fuel  has  comparably  low emissions,  as
determined by the Administrator.

     The  first program  requires  that  new  urban  buses operated
primarily  in  metropolitan  areas  having  a population of  over
1,000,000 be  capable  of operating, and  exclusively  operated,  on
clean  alternative  fuel.   The Administrator  is to phase  in  this
requirement  over the  1991  through 1994 model   years.    If  the
Administrator,   after   consultation   with   the   Secretary   of
Transportation, finds  that delaying the program  would substantially
increase  its benefits  or decrease  its  costs,  the  requirement may
be postponed  for up to two  years.  For  diesel-fueled buses  sold
during  the  phase-in   period,   the  particulate  matter  emission
standard  is set at 0.25 gram  per brake  horsepower-hour.   The
Administrator  is required to issue regulations  implementing the
urban bus program within 12 months of enactment of this section.

     The  second program requires  that  a  specified  number  of
passenger cars and  light-duty trucks capable of operating on clean
alternative  fuel ("clean-fuel  vehicles")  be  sold  in the  most
serious ozone nonattainment areas.   Such clean-fuel  vehicles are
to meet emission standards that  will ensure that, when operated on
clean  alternative   fuels, the   vehicles  emit   substantially  less
ozone-producing hydrocarbon emissions and total  air toxic emissions
than do conventional  gasoline-fueled  vehicles  meeting applicable
emissions standards.   So that  clean-fuel vehicles  are  in  fact
operated on clean alternative fuel,  the program also provides that
clean alternative fuels be made available in the areas where clean-
fuel vehicles are to be sold.

     Within  12  months  of  enactment,  the  Administrator  is  to
establish performance  standards  for  the clean-fuel vehicle program
based on the use of clean alternative fuels  formulated to produce
maximum reductions in ozone-producing and toxic  air emissions.  The
Administrator is to use  these performance standards  to judge the
adequacy of state and industry plans for opting out of the clean-
fuel vehicle program.

     Within  18  months  of  enactment,  the  Administrator  is  to
promulgate  regulations  establishing   initial  requirements,  and
subsequently  may  revise,  such  regulations  as  necessary,   for

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                             -  34 -

attainment of  the performance  standards  he establishes  for  the
clean-fuel vehicle program.   The regulations are to  provide  for
the  manufacture,  sale  and distribution  of clean-fuel  vehicles
according to the following schedule:   500,000 in model year 1995,
750,000 in model year 1996, and 1,000,000  in each of  model years
1997 through 2004.  To permit automakers greater flexibility,  the
Administrator  may grant  an appropriate  amount of  transferable
credits toward compliance  with  emission  standards or  the vehicle
sales requirements for  selling  (l) clean-fuel  vehicles that emit
less than regulations require,  (2) more  clean-fuel  vehicles than
regulations require,  and {3} heavy-duty trucks that are capable of
operating on clean alternative fuel.

     The clean-fuel  vehicles  are to  be sold  in areas  that  are
designated ozone nonattainment,  have a 1988 ozone design value at
or above 0.18  parts per million, and  had a 1980 population above
250,000.  However, any of  these  areas  may "opt out" of all or part
of   the  clean-fuel   vehicle   program   upon  approval   by  the
Administrator if the  applicable  state  implementation plan includes
measures different from those otherwise  required by the Act that
achieve long-term environmental  benefits  equal  to the clean-fuel
vehicle program performance standard.   Conversely,  any other area
may "opt into"  the clean-fuel vehicle program at  the request of the
governor of the state in which at the  area  is located if inclusion
of the  area in  the  program is  appropriate and would  result  in
progress toward attainment of any NAAQS.  Clean-fuel vehicle sales
are  to  allocated among  participating areas  based on  population,
vehicle sales, and other relevant factors.

     The regulations  promulgated by  the Administrator  must also
provide for  the  availability of clean  alternative  fuels  in  the
areas   in  which  clean-fuel  vehicles  are  to  be   sold.    The
Administrator  is  to  determine  the  clean alternative  fuels to  be
made  available based  on   automakers'  projections  of  clean-fuel
vehicle  sales  and consultations with affected State  and local
governments.   If the Administrator   finds  (1)  that  the  sale  of
clean-fuel vehicles  has created a  demand  for  clean  alternative
fuels outside the areas  in  which such vehicles are sold or  (2) that
automakers are prepared to sell  on a broad  basis vehicles that are
designed to operate exclusively  on clean alternative fuels, he may
also require that clean alternative fuels be made available along
major  nationwide  transportation corridors.    In  addition,  the
Administrator  is authorized  to grant  transferable credits  for
exceeding applicable requirements and to establish specifications
for clean alternative fuels to reduce or eliminate any unreasonable
risk such fuels may pose to public health, welfare and safety,  or
to ensure adequate vehicle performance and maintenance.

     The Administrator may make adjustments to the programs under
specified circumstances.   First, if one or more areas  opt into or
out  of  the  clean-fuel  vehicle program,   the  Administrator  is
required to revise the total number  of  required clean-fuel vehicles

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                              - 35 -

sales  in  proportion  to  the change in total population covered by
the program.    Second, the governor of a state containing an area
participating  in  the clean-fuel  vehicle program may request that
more clean-fuel  vehicles be  sold in that area  than  the program
would  otherwise require.  If  the  request  is appropriate and would
result   in  progress   toward  attainment  of   any   NAAQS,  the
Administrator  is to  increase  the  number of clean-fuel vehicles to
be  sold  in  the  area  by the  amount requested.   Third,  if  the
Administrator revises the clean-fuel vehicle sales requirement, he
is  also   required   to  revise  as  appropriate  the  clean  fuel
availability requirements.  Fourth,  if he finds that delaying the
vehicles   sales   or   fuel   availability   requirements   would
substantially  increase  the benefits or  lower  the  costs  of  the
clean-fuel vehicle program,  or is appropriate due to the likelihood
of a national economic recession,  he may postpone the requirements
by up  to  two years and revise the  number of  clean-fuel vehicles
that must be sold as  appropriate.  Any additional vehicle sales or
fuel availability requirements prescribed by the Administrator are
to take effect only after  such period as he finds  necessary for the
requisite  vehicles or fuels, to be made available.

     In developing, the regulations to implement  the bus and cJenn-
fuel vehicle  programs,' the Administrator is directed  to consult
with the Secretaries  of  the Department of Energy  and the Department
of Transportation.  The Administrator is also authorized to obtain
information needed to enforce  the  two programs from manufacturers,
distributors and retailers of vehicles and fuels.

     Finally, section -202(a)(4) of the current Act is amended to
establish  that  any  aspect  of  vehicle  design  used  to  meet
requirements prescribed under  title  II,  including new section 212,
may not cause or  contribute  to  an -unreasonable risk  to  public
health, welfare, or  safety  in its operation or function.

     This  section replaces  the  former  section 212  which  had
established a low  emission vehicle board to promote the development
of  low emission vehicles.   The  board  was  abolished in  1980  by
Public Law 96-208, 94 Stat. 98.
Section 202.
Emissions  of  Hydrocarbons,  Carbon Monoxide,  and
Oxides of Nitrogen From Passenger Cars.
     This  section  phases  in  tighter  passenger  car  emission
standards for nonmethane  hydrocarbons  and  oxides  of nitrogen and
maintains the current standards  for  total  hydrocarbons (as a cap
on methane  emissions)  and  carbon monoxide  (CO).   Forty  and  80
percent  of  each  automaker's  1993  and   1994  model  year  cars
respectively and 100 percent of 1995  and later model year cars are
required to meet a  nonmethane hydrocarbon  standard of 0.25 grains
per vehicle  mile ("gpm")  and  an  NOx standard of  0.70 grams per
mile.   For total hydrocarbons and CO,  the  section sets forth the

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                              -  36  -

current numerical, standards  instead of  retaining  the percentage
requirement language of the current statute.

     The Administrator is also directed to revise the regulations
to reflect  the  statutory change of standards within  180  days of
the bill's  enactment.  The  section clarifies the Administrator's
authority to tighten passenger car standards as needed to protect
health and welfare, considering costs.

     This  section further amends  section 202(b)(l)  by  deleting
provisions that specified passenger car standards for model years
1977 through  1980.   Since  those  vehicles  are now  beyond their
statutory useful  life (five years or 50,000 miles), the standards
are no longer applicable.  Also deleted is language referring to
the availability  of waivers  from  the  1981 and  later  model year
carbon  monoxide  standard,  since  section  202(b)(5)  made  those
waivers available only  for  1981  and  1982 model  year  vehicles.
Similarly, the provision  permitting the  Administrator to relax the
1981 and later model year oxides of nitrogen standard for 1981 and
1982 model year vehicles is deleted.
Section 203.
Emissions of Hydrocarbons and Carbon Monoxide From
Light-Duty Trucks.
     This section phases  in tighter hydrocarbon and carbon monoxide
emissions standards for  light-duty trucks  on  the basis of loaded
vehicle weight.   For  lighter trucks  (3,750 Ibs.  and under),  the
standards are 0.41 gpm of total hydrocarbons and 4.20  gpm of carbon
monoxide.   For  heavier  trucks  (over  3,750 Ibs.),  the  emission
standards are  0.50 of  total hydrocarbons and  5.50 gpm of carbon
monoxide. Fifty percent of each automaker's 1994  light-duty trucks
and 100 percent of 1995 and  later model year light-duty trucks are
required to meet the tighter standards.

     Since the current Act does not define  light-duty trucks, this
section also amends section  216 to include the definition of light-
duty trucks  promulgated  by  the Administrator  under  the Act.   In
addition, it directs the Administrator  to revise the regulations
applicable  to  light-duty trucks within 180  days  of  the bill's
enactment to reflect the statutory change  in  standards.   It also
specifies the Administrator's authority to tighten light-duty truck
standards  as  needed  to  protect  public  health  and  welfare,
considering costs.
Section 204.   Carbon Monoxide Emissions At Cold Temperatures.

     This section  adds  a new subsection  (h) to  CAA section 202,
providing for a reduction in emissions of carbon monoxide  (CO) from
passenger cars and  light-duty trucks  when operated at 20 degrees
Fahrenheit.     As  a first  step,  the  section  establishes  cold

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                              - 37 -

temperature CO emission standards to be met by 1993 and  later mode!
year passenger cars and light-duty trucks when tested at 20 degrees
Fahrenheit.   Specifically,  the section directs the Administrator
to  establish  a passenger car  cold  temperature  CO standard of no
higher than 10 grams per mile  and requires that light-duty trucks
meet a standard of comparable  stringency.

     To  provide manufacturers with  flexibility  in meeting  the
standards, the section permits the  standards to be met on average
by each manufacturer's fleet.  It also provides  for phasing in the
standards  over the  1993  through 1995 model  years; at  least 40
percent,  80  percent and 100  percent  of  1993,  1994  and 1995  and
later model year vehicles, respectively, must meet the standards.
Regulations  implementing the  requirement for  cold CO emission
reductions must be  promulgated  within  12  months of  the bill's
enactment.

     For the second step, the  Administrator is directed to assess
by  December  31, 1993,  the  need  for  and feasibility  of further
reductions in  cold  CO  emissions,  and  is  authorized to promulgate
regulations  applicable  to  1998  and   later  model year  vehicles
requiring further reductions in cold CO emissions as warranted.
In addition, the section authorizes the  Administrator  to require
reductions in  cold  CO emissions  from  heavy-duty  vehicles,  as he
deems appropriate.


Section 205.    Evaporative Emissions.

     This section directs the  Administrator  to issue regulations
within 18 months of  the  bill's enactment requiring reductions in
evaporative  emissions  from  all  gasoline-fueled  vehicles  during
operation (running  losses) and during  sustained  periods of nonuse,
under summertime conditions  conducive to the  formation of ozone.
The regulations are to require the greatest  degree  of emissions
reduction achievable by means reasonably  expected  to be available,
taking into account  cost, safety and energy factors.  They are also
to take effect as soon  as the  means for  achieving the reductions
are available for production.
Section 206.  Mobile Source-Related Air Toxics.

     Under this section,  the Administrator  is required to complete
within 18 months of the  bill's  enactment a study of the need for
and feasibility of  controlling toxic emissions which are currently
unregulated under title II and associated with motor vehicles and
motor vehicle fuels.  The section also  authorizes the Administrator
to  regulate  mobile-source   related   air   toxics  as  he  deems
appropriate based on the study and other information available to
him.

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                              -  38  -
Section 207.   Emission Control Diagnostics Systems.

     This section  authorizes the  Administrator  to  require  that
motor  vehicles  be  equipped  with  computer  systems  capable  of
diagnosing.problems affecting emission-related systems and alerting
vehicle owners to the  need for repairs to maintain compliance with
emission  standards.    Specifically,  the  section   requires  that
emission control diagnostics systems be capable  of:   1) identifying
emission-related systems malfunctions or deterioration; 2) alerting
the vehicle operator to the need for maintenance; 3) storing such
information;  and 4)  providing  access  to such  information  for
maintenance and testing.

     To increase  the  usefulness of emission control  diagnostics
systems,  the  section further  authorizes the Administrator  to
require state inspection and maintenance programs to inspect such
systems and to  require the repair  of  any identified malfunctions
or deterioration. The Administrator may also require manufacturers
to  provide  information  needed  to  make use  of  the  diagnostics
systems to  any person engaged  in  the  business  of  repairing  or
servicing motor vehicles.   To  ensure  that  diagnostics  systems
operate properly in-use,  the Administrator may  recall vehicles for
the purpose  of correcting malfunctions or improper operation of the
system.  In  addition,  the section amends section  207 of the Act to
extend the warranty coverage provided for emission-related systems
to include emission control diagnostics systems.
Section 208.   Heavy-Duty Trucks.

     This  section extensively  revises  section 202(a)(3)(A)  to
provide  the Administrator  with greater  flexibility  in  setting
emissions  standards  for heavy-duty  vehicles or engines  {HDEs).
Specifically, the section deletes the statutory standards for HDEs,
and instead  requires  the Administrator  to set technology-forcing
emission standards, considering  cost, energy and safety factors.
The window  periods  for standard-setting  and  four-year lead time
requirement  are  also  deleted.    The  Administrator may  instead
tighten standards as  he finds appropriate and  provide such lead
time  as  he  finds necessary  to permit  the  development  of  the
requisite  technology  (the  approach  taken  by  the current  Act
concerning  lead  time  for  all other vehicle  emission standards).
Section  202{a)(3)(A)(ii)  is further  revised to clarify  that  in
setting HDE  standards  EPA  may differentiate  among  HDEs based  on
the type of fuel  used.

     Finally, the Administrator is authorized to study the impact
of  heavy-duty  engine  rebuilding  on  engine  emissions  and,  if
warranted, to regulate rebuilding practices, including promulgation
of standards applicable to engines after their typical useful life.

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                              -  39  -
Section 209.   Non-Road Engines and vehicles.

     This  section  provides the  Administrator with  authority  to
regulate vehicles or engines not  used- primarily  on roads and not
regulated under either  section  202 or  section  111 (authorizing the
establishment of new source performance standards)  of the Act.
Specifically,  the   section  authorizes  the Administrator  to
promulgate emissions standards applicable to  those types of non-
road vehicles or engines that he finds cause or contribute to air
pollution  that endangers  public  health or  welfare,  taking costs
into account.

     The  section  also  follows  current  section  202{a)(4)  in
specifying that no emission control device used on non-road engines
or vehicles to meet  emission standards may present an unreasonable
risk to public health, welfare or safety.   It further provides that
any emission standard promulgated for  non-road engines or vehicles
be treated like a section  202 (on-road vehicle or engine) emission
standard for purposes of determining compliance with and enforcing
such a standard.

     This section replaces existing section  213 which required the
Administrator and the Secretary of Transportation  to conduct a fuel
economy improvement study.  The study has been completed.
Section 210.  Vehicle Certification.

     This section amends section 206 to ensure that vehicles that
pass the  federal test  for  determining compliance  with emission
standards can  also pass  state  inspection and  maintenance (I/M)
tests.   The Administrator is directed to  revise  the regulations
governing the certification  of vehicles to  include test procedures
capable of determining whether properly maintained 1993 and later
model year  passenger  cars  and  light-duty trucks will  pass EPA-
sanctioned  I/M tests under  conditions  encountered in the conduct
of such tests.   EPA's  revised test  is to reflect reasonably likely
I/M test conditions as  pertains  to fuel  characteristics, ambient
temperature and short waiting periods before tests are conducted.
A manufacturer's vehicles must be able to pass the revised test to
receive certificates of conformity.

     This section also clarifies the Administrator's authority to
permit manufacturers  to  demonstrate  compliance  with  applicable
standards  through averaging,  trading  arid  banking  of  emission
credits.   In addition,  it limits the  small volume manufacturers'
exemption from lengthy testing establishing-a vehicle's ability to
meet  applicable  standards   over  its  useful   life  to  original
equipment manufacturers.                    •    - "

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                              -  40  -

Section 211.   In-Use Compliance—Recall.

     This section  revises  section  207 to phase  in  the passenger
car 0.25  gpm nonmethane hydrocarbon standard  and  the light-duty
truck 0.41/0.50 gpm  total  hydrocarbon  standard and 4.20/5.50 gpm
carbon monoxide standard as  they apply to recall determinations.
The phase-in schedule for the passenger car nonmethane hydrocarbon
standard is the same  as that applicable to cars  sold in California,
and the phase-in  schedule  for the light-duty  truck  standards is
similarly  patterned  after that  applicable  in California.   The
section  also   specifies   that   the   Administrator   may  require
manufacturers   to   perform   recall   tests   and  to   audit  the
effectiveness of repairs performed  by dealers pursuant to a recall
plan.


Section 212.   Compliance Program Fees.

     This  section   provides  the  Administrator  with  specific
authority  to  assess manufacturers  fees  to  recover  the  costs
associated with operating  the motor vehicle compliance  and fuel
economy programs,  including the development and implementation of
related policies,  procedures and  regulations.    It grants  the
Administrator  broad  discretion  in devising a fee  schedule  and
expressly authorizes a fee schedule based on the number of vehicles
produced under a certificate of conformity.  It  also specifies that
any fees  collected be deposited in  a  special fund in  the U.S.
Treasury for use by EPA in carrying out the programs.
Section 213.   Information Collection.

     This section amends section 208 to extend the requirement to
maintain records and provide  information  to  manufacturers of new
motor vehicle  or engine parts  or  components.   It  also requires
manufacturers of vehicles, engines or parts to perform such tests
and provide such data as the Administrator may reasonably require
to determine compliance with applicable requirements under the Act
and   to  assist   in   the   development   of  new   regulations.
Correspondingly,   the   section   broadens   the   Administrator's
inspection  authority so that  he may observe  required  testing or
obtain  required  data.   In addition, it provides  that  authorized
contractors  acting  as   representatives of the Administrator  may
conduct  inspections   or   have  access   to   business   sensitive
information.
Section 214.   Fuel Volatility.

     This section requires the Administrator to promulgate within
six months of the bill's enactment regulations requiring additional
reductions  in  the  volatility  of  gasoline during the  high  ozone
season  (approximately  the summer months).   The section specifies
a maximum Reid  vapor pressure standard of 9.0 pounds  per square

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                              -  41  -

inch and  requires  the Administrator to  establish  more stringent
Reid  vapor pressure  standards  as needed  to generally  achieve
comparable  evaporative  emissions  (on   a   per   vehicle  basis)
nationwide, taking  into account such  factors  as enforceability,
environmental need  and costs.   The  regulations  implementing the
volatility requirements are to take effect no later than the 1992
ozone season, and  may permit gasoline containing  at  least  9 but
not  more  than  10  percent  ethanol  (by  volume)  to   exceed  the
volatility requirements by up to 1.0 pounds per square inch.
Section 215.
Diesel Fuel Sulfur Content.
     This section  requires  a reduction in the  sulfur  content of
diesel fuel that will in turn reduce diesel vehicles' emissions of
sulfates and ease  compliance with  the stringent 1994 participate
matter    standard    applicable    to   heavy-duty   diesel
vehicles. Specifically,  the  section prohibits  as  of  October 1,
1993, the manufacture,  sale  or  transport  of  motor  vehicle diesel.
•fuel having  a sulfur  content of  greater  than 0.05 percent  (by
weight)  or a cetane index below  40.  It requires the Administrator
to promulgate within 12 months of the bill's enactment regulations
to  implement and enforce the prohibition.   It  also specifically
authorizes the Administrator to  require refiners to dye fuel not.
subject to the sulfur content limitations  in order to segregate it
from the regulated fuel.

     To reflect the change in diesel sulfur content that will occur
over  the useful  life  of 1991  through  1993  heavy-duty  diesel
engines, the section requires that  the sulfur content of fuel used
to certify diesel engines for those model years be 0.10 percent (by
weight).  It  further  requires that certification fuel used for 1994
and later model year diesel  engines comply with the lower sulfur
content and cetane index minimum requirements applicable to motor
vehicle diesel fuel  after October 1, 1993.


Section 216.    Non-Road Fuels.

     Section 211 of  the  current  Act authorizes  the Administrator
to  regulate  motor vehicle fuel  and fuel  additives as  needed to
prevent damage to motor  vehicle  emission  controls  and  to protect
public health and welfare. This  section expands that authority to
include fuel and fuel additives  for non-road vehicles and non-road
engines,  for  which  section 208  of  this bill  authorizes  the
Administrator to establish emission standards.
Section 217.   Fuel Waivers.

     This  section  amends  section  211(f)   to  clarify  that  the
requirement to obtain waivers  for new fuels and fuel additives not

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                              -  42  -

substantially similar to  the  fuels used in vehicle certification
applies not only to unleaded  gasoline  but  to all other fuels and
fuel  additives,  including  leaded gasoline,  diesel  fuel,  and
consumer additives.
Section  218.   Market-Based Alternative Controls.

     Under this  section,  the Administrator is directed  to issue
regulations within 12 months of  the  section's  enactment  to allow
automakers to engage in  "emissions trading" and  fuel  refiners to
engage in "fuel  pooling"  to  the  maximum extent feasible  in ozone
nonattainment areas with  a 1988 ozone design value at or above 0.18
parts per million and a population above 250,000.  The regulations
are to establish  performance standards for motor vehicles and motor
vehicle fuels marketed  in those areas based on  likely emissions
reductions that would be achieved by the control measures for which
alternative measures could  be  substituted.  Automakers  and fuel
refiners could then choose to undertake emission control  measures
different in type or degree from the prescribed  measures they would
replace, so long  as they demonstrated to the Administrator that the
combination of measures  they selected  would meet the performance
standards.  Companies could also trade emission reduction credits
for use  in  demonstrating compliance with  performance standards.
If companies could not demonstrate alternative means of meeting the
performance standards,  they would be  required  to comply  with the
prescribed control measures.

     Under this section,  the Administration is  also authorized to
promulgate regulations  permitting manufacturers and fuel  refiners
"trade" and  "pool"  emissions reductions  from  nationwide control
measures.  It replaces existing  section 214 which required a study
of  particulate  emissions  from  motor  vehicles  and  a report  to
Congress.  The study and report have been completed.
Section 219.   Preemption of State Fuel Regulation.

     This section  makes  two changes  to  section 211(c){4)(A)(ii}
regarding the preemption  of  State  fuel  regulations  by  federal
rules.  First, it  clarifies that  a federal  fuel or fxiel  additive
regulation only preempts  a nonidentical State regulation governing
the same component or characteristic of the fuel or fuel additive.
Second, it further defines the basis on which  EPA may approve state
implementation plan provisions  that regulate motor vehicle fuel or
fuel additives  in a manner nonidentical with  applicable  federal
regulations.    The  current Act   states  that  EPA  may  approve
inconsistent  State fuel   or fuel  additive regulations when such
regulations are "necessary to achieve" primary national  ambient air
quality standards.  This  section defines "necessary to  achieve" as
meaning' that no  other  reasonable or  practicable measures  are
available to bring about timely attainment.

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                              -  43  -
Section 220.  Enforcement.

     This  section  broadens  and  strengthens  the  Administrator's
enforcement authority in several ways.  First, the section amends
section 203 to  conform to new provisions,  including  new .section
212 (relating  to clean-fuel vehicles and buses) and amended sect.!on
208 (relating to recordkeeping and reporting).

     Second,  this  section further revises section  203  to extend
liability  for  tampering  with  emission  controls   to  individual
vehicle owners and to manufacturers or sellers of devices used to
defeat or impair emission controls.

     Third, the amendment  revises section 205 to raise from $10,000
(set in  1970) to. $25,000 the  maximum civil  penalty that  can be
levied  for a  violation  of  certain  vehicle  requirements.   The
section also provides that violations of recordkeeping or reporting
requirements may be calculated on  a  per  day  basis  (as  in Title I
of the Act) to provide adequate deterrence.

     Fourth,  new  authority   is provided  to the Administrator to
assess administrative  penalties  for violations of  sections 203,
211 and 212 that  total up to  $200,000  (unless the Administrator
and the Attorney General determine that a case involving a larger
penalty amount is  appropriate for administrative assessment).  Any
such assessment can  only be  made  after a  hearing  before  the
Administrator, and the amount of the  penalty  is to be based on the
weighing of statutorily prescribed factors.

     Fifth,  the  section  revises  the  section  211(d)  penalty
provision, which currently provides for a mandatory forfeiture of
$10,000 per day for violations of section 211 or fuel  regulations
issued under  that section.   It replaces  the mandatory forfeiture
provision with  a  provision  for a civil penalty of  up  to $25,000
per  day  for   each  violation plus  the  economic  benefit  of
noncompliance.  In addition,  the section clarifies that in the case
of violations of  fuels standards based on  a multi-day  averaging
period (such  as exists in the lead  phasedown program),  each day
during the averaging period  is  intended  to constitute  a separate
day of violation.    It  also  provides  injunctive authority  to
restrain violations of fuels regulations, as  is already available
for violations of vehicle and stationary source requirements.

     Sixth, the section adds  a prohibition against misfueling. Any
person, including  an  individual,  may be  held liable  for civil.
penalties for  introducing leaded gasoline into vehicles which are
designed to operate exclusively on unleaded gasoline.  This section
replaces existing section 211(g)  which stipulated  that  prior to
October 1, 1982, small refiners may not.be required to reduce the
lead content  of the  gasoline they produce to the  same  extent as

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                              _  44  -

large refiners.  Small refiners  have been subject to the same lead
content  limitations  as  large  refiners,  since  July  1,  1983,  so
existing section 211(g) has no continuing effect.


Section 221.   Technical Amendments.

     This section  revises  various  sections of  the act to delete
outdated provisions and  to  improve the organization  of Title II.

     For ease  of reference,  the  definitions that are currently
found in section 202 are  transferred to section  216 which includes
other definitions also applicable to section 202.

     The section also deletes  the  provisions making available
waivers from the carbon monoxide standard for 1981 and 1982 model
year  passenger  cars  and  waivers  from  the  oxides  of  nitrogen
standard for  1981  through  1985   model  year  cars,  since  those
vehicles are generally past their statutory useful life.
The exemption  from  the tampering  prohibition  available  for fuel
system modifications on vehicles manufactured before the 1974 model
year is deleted since any such vehicles are  long past their useful
lives.

     The provision  requiring a study  of aircraft pollutants  is
deleted because  the  study  has been completed.  The  section also
deletes  the provision for  an annual report  to Congress  on the
development  of  emissions  control  systems  needed  to meet  the
standards established in section 202 (b)  by the 1977 Clean Air Act.
Amendments,  since  those systems  have  been  developed  and  the
standards met.   It similarly deletes the provision for a study on
the feasibility of specified high altitude requirements, since that
study  has   been  completed.    In addition,  the requirement  that
manufacturers build prototype research vehicles demonstrating new
emission control technologies is deleted.  The section also removes
the requirement that the Administrator publish certification test
results in  the Federal Register.

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                              -  45  -
Title III—HAZARDOUS AIR POLLUTANTS
Section 301.
Technology-Based
Pollutants.
Standards   for   Hazardous  Ai r
     Title III  would  replace
112 of the Clean Air Act.
                                 General
               the existing provisions  of  section
     A major goal of the bill  is  to  attain a basic Level of good
control of routine multipollutant  emissions by significant sources
of hazardous air pollutants.  The pollutants to be controlled are
listed  in  section  112.   The  approach the  section  takes  is  to
mandate maximum achievable control technology (MACT) based on cost
and feasibility considerations for listed source categories.

     Another major goal is to increase  the  role of State and local.
agencies in implementation and  enforcement  of air toxics controls.
This Title  and Title  IV provide  for  implementation  of national
standards by state and local agencies through an operating permit
system  supported by  permit  fees.    These .agencies  would  also
administer an  alternative compliance program under which sources
could obtain an exemption from  national standards by demonstrating
that their emissions cause  negligible  risk to  public  health,  and
could obtain certain credits  for- voluntary emissions  reduction.

                 New Section 112(a)—Definitions
Major Sources:

     A major source is defined as one that emits more than 10 tons
per  year  (tpy)  of  a  single,  listed pollutant  or  25  tpy of  a
combination  of   listed  pollutants.     For   radionuclides,   the
Administrator will define major sources by regulation, considering
radiation dose.  For purposes of these definitions, all emissions
of listed pollutants are counted   from  all points within a plant
boundary (contiguous property under common ownership).  This is to
assure that emissions from the facility as a whole are adequately
controlled.

     EPA has discretion to define major source as one emitting less
than 10 tpy  or  25 tpy based on the potency or other characteristics
such  as persistence  of an emitted  pollutant.    Sources  could
voluntarily reduce their emissions  to below  the  cutoffs  to avoid
regulation as major sources.

     Because there  are  a  variety  of methods for measuring  and
estimating  total  emissions, EPA would  define these  methods  for
regulated  source  categories.    Each  source  category  emission

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                              -  46  -

standard should  address  this so that  all sources have  the same
expectation about how their status will be defined for regulatory
compliance purposes.

Area Sources:

     Area sources are  small  point  sources (non-major)  that would
be regulated by category  just as major  sources  are.   They differ
in that  the  basis for regulating  them  is the  adverse  effect of
their  combined  emissions  rather  than the  effect of any single
source.
New Source:

     A  new  source  is  a  stationary  source  the  construction,
including reconstruction, of which is commenced after proposal of
a standard  under  subsection  (d)  or  (f).   The  interpretation of
"reconstruction" would be as  current  rules  provide under section
lll(a).

Electric Utility Steam Generating Unit:

     A definition  is  provided for. fossil fuel  fired  units which
will be subject to study and a report to Congress.  The study and
report concern the hazards that may remain after Title V controls
and whether  they  should  be  regulated.   Until the report is made
and considered, these units are not regulated under this section.

Other Terms:

     "Stationary  Source",   "owner or  operator",  and  "existing
source" have  the  meaning the terms currently have under section
lll(a).

           N_ew_ Section 112(b)—Hazardous Air Pollutant List

     The pollutants to be controlled are listed in subsection (b).
There are about 191 chemicals and chemical categories.

     The Administrator may add or delete a pollutant from the list
on the basis  of criteria relevant to  whether the pollutant is an
air pollutant  reasonably anticipated  to cause certain chronic or
acute health  effects.   The public may petition  for  additions or
deletions.  The Administrator must act on  such  a petition within
18 months of  its receipt.

     The  list  is  the  basis  for  identifying  the  source categories
to be controlled.   The purpose is to identify and regulate source
categories according to their emissions of  pollutants on the list,.

     The Administrator is authorized to use any authority available
to him -to acquire  health effects information when information on

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health effects
pollutant.
              - 47 -

is insufficient for a  determination on listing a
             New  Section  112(c)—Source Category List

     Sources are  to be regulated by category.  The categories would
be made up of sources that are alike in terms of their -commercial
product and  their  operational  process.   Categories could reflect;
product groupings such as tire manufacturing or butadiene-styrene
rubber production,  or  service groupings,  such as  dry cleaning,
degreasing, or tank farms.   Sources  are brought into a category by
commonality  of  product,  process,  or  service.    The Agency  is
authorized to  subdivide  categories  into  subcategories
units, based on important factors  such as size,
or other  circumstances  resulting   in  sources  within
being dissimilar  or not amenable to"similar controls.
                                       or smaller
                                process, emissions
                                       a category
     A list of source categories  for which emission standards will
be considered  will be published  within 12 months  of  enactment;.
This list will be revised periodically  in response to comments and
new. information.   The Agency will  hold the  list open for comment;.
permanently as a continuing agenda.

     The list will contain  categories  and- subcategories of major
sources of listed pollutants.   It will  also contain categories and
subcategories of area sources designated as warranting regulation
because  of  their aggregate   emissions  or  potential  aggregate
emissions.

     The Administrator may decide not to list a source category or
subcategory because its emissions are already adequately controlled
under the Clean Air Act or any other Federal statute or regulation.
On the other hand,  he may list a category or subcategory previously
regulated under  section  112.   The Administrator may  withdraw a
category or  subcategory  from the  list if  the  sources  present a
negligible risk  to public health.   For instance,  if all sources
covered would be able to demonstrate,  under procedures of section
112(g), that risks associated with  their emissions are negligible,
it may be unnecessary to promulgate an emissions'standard  for them.

    New Section 112(d)--Maximum Achievable Control Technology
                    Emission Standards  (MACT)

     The  emission  standards   promulgated  for   listed  source
categories  would  be  performance  or   work  practice  standards
requiring the maximum, achievable  degree of reduction in emissions
by major  sources  (and designated  area sources).   The reduction
strategies  that may  be  considered include  measures  to:  reduce
volume through process change or substitution of material; enclose
systems to  reduce  or eliminate  emissions; collect,  capture,  or
treat emissions; utilize  work practices that control emissions; or
require facility operator training  or.certification.  Combinations

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                              -  48  -

of the above may be required.

     For a new source  standard,  MACT will be at least as stringent
as the best  emissions control achieved in practice  by a similar
source.  For an existing source  standard, MACT will be at least as
stringent  as emissions  control  typical of  the best  performing
similar  sources.    MACT  for area sources  may require use  of
generally  available  control  technologies,  if the  Administrator
elects this  level of  control.   Standards  for radionuclides shall
be set based on radiation dose.

     The considerations for determining what the maximum achievable
degree of  reduction  is  for  a  source  category  include  cost  and
feasibility  of control,  other   air  quality  related  health  and
environmental  impacts, and  energy requirements.    Any  relevant
measure of cost may be considered in deciding what  is achievable,
including comparisons  of the  emissions  reduction and the cost of
the  reduction,  and  whether the  controls  are affordable  for  the
sources as a group.   In order to  efficiently issue  standards by
the  required schedule, the  Agency may use  a system  of generic
technical  standards.   These  generic  standards  would   cover  the
kinds of controls that  are common  to  many  source categories.

     New sources would be required  to  be in compliance witli a MACT
standard upon its  effective  date.   Existing  sources  would  be
required  to  be  in   compliance  on   a  date  required  by  the
Administrator within three years of the effective date.

         New Section 112(e)--Schedule for Standards

     The Agency is directed to  promulgate  regulations  for  1/2 of
the initially-listed source categories.  The source categories to
be regulated that are  in the remaining 1/2 of  the initial list will
be designated  within  7 years of enactment,  with promulgation to
come in two stages.   The required schedule for standards will be:

First 1/2 of the initial list:

     o    10 source categories within 2 years of enactment.

     o    25% of initially-listed  categories within  4  years  of
           enactment.

     o    50% of initially-listed  categories within  7  years  of
          enactment.

Second 1/2 of the initial list:

     o    All designated, initially-listed source categories
          within 10 years of enactment.
           Priority  of Source  Categories For  Regulation

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                              - 49 -

     The relative priority of  the source categories to be regulated
mandatorily within  7  years of enactment are  to  be determined by
considering several factors:

     1.   Quantity and location of  emissions.
     2.   Known or anticipated adverse health effects.
     3.   Efficiency  of  grouping categories  or  subcategories by
          pollutants  emitted  or process or technology used.

     The administrative efficiency of regulating similar categories
at the same time would be  taken into account.

         New Sect ion 112 (f)--Unreasgnab 1 e Rj,sk Eva luat i on

     Within  7  years  after  promulgation  of a MACT standard, the
•Administrator  will  evaluate  the  risks   to  the public  health
remaining after application of the  standard.

     This evaluation will rely on data  maintained about the actual
emissions reduction achieved  under  the MACT standard.   The up to
7-year  post-promulgation  period  for  performing  the  evaluation
allows time  for compliance to occur (up to  5 years  for existing
sources, if there is  a 2-year extension  under H2(g)), plus time
to measure performance after compliance, and perform the evaluation
analysis.

     If the Administrator  finds  that  residual risk from a source
category  or portion  thereof  presents an  unreasonable  risk of
adverse effects on public  health, he is directed  to promulgate an
additional standard within 2  years of the  risk  evaluation.   The
standard would require an additional emissions reduction to protect
the public health from the unreasonable risk.

     A source that is new after the  date of proposal  of a standard
addressing  residual  risk  must be  in  compliance with  the final
standard when  it is  effective.   An  existing source must  be in
compliance on a date no later  than 6 years after its effective date
as the Administrator  requires.

      New Section 112(g)—Alternative Emissions Limitations

     A State with a program  approved under Title IV may issue a
permit that  authorizes a  major  source to comply with emissions
limitations in  lieu of standards under this section  if the source
demonstrates that  complying  with these  alternative  limitations,
results  in  emissions which present a negligible  risk  to public
health.
     The  Administrator  must  publish  rules  within  2 years  of
enactment  establishing  criteria  for   this   demonstration.    In
addition the  Administrator  must publish guidance and  information

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                              -SO-

on methods for assessing risk and evaluating evidence submitted in
support of a demonstration.

     A  state  with   an  approved  program  may  also  authorize
alternative limitations in two other  cases.  The first is when any
existing  source  shows  that  it .has  voluntarily  achieved  a  90%
emissions reduction of organics or  95't, of participates within five
years prior to proposal of a standard.   The emissions limitations
resulting from such voluntary  action may tae  permitted in lieu of
those required under a section 112 standard.

     The second  is when a source  has installed controls required
under  certain other  numerated Clean Air  Act provisions  or  has
voluntarily achieved  control  equal  to  those requirements.   The
permit may authorize the limitations associated with those controls
in lieu of compliance with section 112(d)  standards, for a period
of five years after the compliance date for the H2(d) standards.
Provisions to define  "voluntary" and conditions for defining the
baseline are  described.   The Administrator must publish rules to
carry out these provisions within two years of enactment.     ' !

     A state with an approved program may also grant an extension
of up to 2 years  for compliance by  existing sources with a section
112(d) standard when additional time is  needed to install controls.

     If the State  in  which  a  source is located does not  have a
program approved  under Title IV,  the Administrator may grant any
extensions authorized under this subsection for such source.

 Mew Section  H2(h)—Pre-construction and Operating Requirements

     This  subsection   conditions  construction  arid operation  on
compliance with applicable standards.

            Mew  Section 112(i)—Technical  Assistance

     Provisions  in this  subsection cover  technical assistance by
the Agency for state and local agencies  and  research by the Agency.
           New Section 112(i)—Presidential  Exemption

     For reasons of national security the President may exempt any
source(s) from requirements of this section for a renewable period
of two years.

              New Section 112(k)—Savings Provision

     This subsection preserves effectiveness of regulations issued
under the superceded section  112 language.   Regulations under court
review on the date of enactment shall be reviewed under the prior
language  of   112.   A  standard  remanded   to  the  Agency may  be
considered by the Administrator under terms of either the prior or
the amended section.

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                              -  51  -
     The  subsection states  that  certain  actions  are  not  final
agency action for purposes of judicial review.

               New Section112 (1)--Appropriations

     This subsection  authorizes  appropriations to carry  out  the
section.

             New  Sect ion. ..112 (m)—Electric  Utilities

     The Administrator is directed to perform  an assessment of the
hazards to  public health which may be  associated  with emissions
listed  under this  section  from  certain  electric utilities  of
pollutants after their implementation of emission controls required
under Title V of this Act.  The Administrator is directed to report
the results of  this study to  the Congress1within three years after
enactment.   The Administrator shall develop  and describe in  his
report  to  the  Congress,  alternative  control  strategies  for
emissions from  affected  sources warranting regulation under this
section.  The  Administrator  may not regulate  such sources  under
this  section unless  he  finds  such  regulation  appropriate  and
necessary considering results of the study.

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                              -  52  -
TITLE IV—PERMITS

Section 401.   Permits.

     This section  adds a new  title IV  to  the Clean Air  Act to
establish a permitting program for certain stationary sources.

                 New CAA Sec. 401—Definitions

     This section  defines  the  central terms used  in this title.
These   include   the   terms   "affected  source",   "schedule   of
compliance", and "permitting authority."  Other terms.are defined
by reference to  the section of the Act  where  they are initially
used and defined.
                New CAA Sec. 402—Permit Programs
In General:
     This title  requires  States  or  interstate agencies to submit
to the Administrator comprehensive permit programs under State law
or under interstate  compacts for regulating  stationary sources that
are subject  to  one  or more of the  regulatory programs under the
Act:  State   implementation  plan  (SIP)  requirements,   new  source
performance  standards,  emission  standards  for  hazardous  air
pollutants,  PSD and  nonattainment  new source  review, and  acid
deposition controls under the new  title  V.   This  comprehensive
program is patterned generally after the program that now applies
to point sources of  water pollution under the Clean Water Act.  EPA
must   issue   regulations   governing   the   programs,   including
requirements  for adequate State  statutory authority  and  permit
fees.    The  permit  fees are  required to  recoup all  direct  and
indirect costs of administering the air pollution control program
related to the  permitted sources, including  the portion  of  such
costs   as  emission  and  ambient  monitoring,  modelling,   and
preparation  of  generally  applicable  regulations and  attainment
demonstrations  that may be attributed to  the permitted sources.
A State is required  to submit a permit  program to the Administrator
not later than three years after  enactment.   If the State fails to
submit  a completely  approvable  program,  the Administrator  has
discretionary authority to apply the sanctions that generally apply
to failure to submit SIPs, or to promulgate a complete or partial
federal permit program for the State.   The Administrator may also
withdraw  approval,   or  apply  sanctions,  if  a  State fails  to
implement its program.

Partial Programs:                                            -,  ••>

     The Administrator may approve partial permit programs covering
one of  three specific portions of a complete program.   Any such
partial program  must  apply  all the  requirements  of  that portion.

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                              -  53  -

For example,  in order  to  obtain approval  of a partial program to
control acid  deposition,  a State would have to  show  that  it had
authority to apply to the  affected  sources all the requirements of
title  V,  but not  that   it  had  authority  also  to  apply  all
requirements  of title  I.   Similar requirements  apply to partial
approval of programs  applying emission standards under  section 112,
or programs applying title I requirements other than section 112.
Approval of  a partial program  would  not  relieve a State  of the
requirement to submit a fully approvable program.

Interim Approval:

     Interim approval, for a period not  to exceed two years, would
be available for programs  that substantially meet the requirements
of title IV.

             New CAA Sec.   403—Permit Applications

     Sources  required  to  obtain  a permit  must  submit  a  permit
application and compliance plan within  six  months  after approval
of a permit program that applies to them, or six months after they
become subject to  a permit requirement as a  result of promulgation
of applicable standards.   The State may set an earlier deadline for
applications.'    submission  of  a  timely  and  complete  permit
application protects a source from  enforcement for failure to have
a permit required  under the  applicable  program until  a permit is
issued to the  source.  Permit applications; permits, and monitoring
or compliance reports,  must be made available to the public, except
that  if  a permit  applicant is  required  to  submit  confidential
business information entitled to protection  as a trade secret, the
applicant may submit the  information in a confidential supplement
to its application, which  will be handled under section 114 of the
Act.

      New CAA  Sec.  404—Permit Requirements  and Conditions

     States with fully  approved* programs  must  issue  permits that
apply, and  ensure  compliance with, all  applicable  requirements.
Permits must  also  set  forth inspection,  entry, monitoring,  and
reporting  requirements   to  assure  compliance  with  regulatory
requirements.     The  Administrator  may  prescribe  methods  for
determining  compliance   and  for  monitoring  and   analysis  of
pollutants.   The  methods  would apply to determining compliance
generally under the Act,  and in particular,  to permits and permit
applications.   Compliance  with a permit constitutes compliance with
the regulatory requirements  of the Act  that  are covered  by the
permit program or partial program,   except for  standards  under
section  112  based  on eliminating  an  unreasonable  risk,  and
requirements under Title  IV  that the  Administrator  identifies by
rulev

General Permits:

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                              -  54  -
     The  permitting  authority  may  issue  general  permits  for
numerous  similar  sources  within  a  geographical  area.    This
provision  is designed  to  reduce the  administrative burden  of
permitting  large  numbers  of similar sources, which may  be small
individually, but which  in the  aggregate  require control  (for
example, as area sources regulated under section 112).

Temporary sources:

     Some  sources  requiring  permits  do  not  operate  at  fixed
locations.   These might  include  asbestos  demolition  contractors
and certain asphalt plants.   This provision allows the permittee
to receive a permit allowing operations, after notification to the
permitting authority,  at numerous fixed locations without requiring
a new permit at  each site.   Any such permit must assure compliance
at all locations of operation with all applicable requirements of
the Act, including visibility protection and PSD requirements.

Renewal permit conditions:

     In general,  renewal  permits are  required  to be  at  least  as
stringent as the permits they  replace.  For example, a source that
installed  reasonably  available  control  technology (PACT)  based
controls  would  not  be permitted to  remove  them, even  if  EPA
subsequently issued guidance suggesting that it would  accept as a
general  matter  a  lower  level  of  control.    There  are  several
exceptions to this general rule.  For example,  offsets or emissions
trades may be used  to relax controls  in  permits;  mistakes or new
information may justify a  less stringent  limit; or the permittee
may have  installed controls  that were  anticipated to  meet  the
earlier limit, but due to circumstances beyond its control failed
to meet  those  limits.   These exceptions  are available  only  to
sources that demonstrate compliance with all applicable regulatory
requirements in effect at  the  time of permit reissuance, including
ambient standards, progress  requirements, and applicable new source
and hazardous air pollutant standards.

         New CAA Sec. 405—Notification to Administrator
                      and Contiguous States

     Except where the Administrator waives review for  a permit or
class of permits,  the permitting State or  interstate  agency must
transmit to the  Administrator  a copy of each permit proposed to be
issued, and must notify each contiguous State of each  application
for a  permit and each proposed  action on the  application.   The
Administrator may object to  a permit within 90  days after receiving
notification  if  it  fails  to  meet Clean  Air  Act  requirements,
including the requirement  that emissions from a source  in one State
not interfere with attainment of  standards  in another.    If  the
permitting authority fails to  respond adequately to the objection,
the Administrator may issue or deny the permit.  The Administrator

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                              -  55  -

may also require a State to modify a permit for cause.

          New CAA Sec. 406—Relation to Other Authority

     This  section clarifies  that  State  authority to  establish
additional permitting requirements not inconsistent with this Act
is preserved.  It also specifies that title IV is not intended to
authorize any State or the  Administrator  to  modify or revoke any
requirement of  title  V,  including allowances  granted under that
title.

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                              -  56  -
TITLE V—ACID DEPOSITION DEPOSITION CONTROL
Section 501.   Acid Deposition Control.

     This section adds a new title V—Acid Deposition Control—to
the Clean Air Act, consisting of new sections 501 through 515.

             New CAA Sec. 501—Findings and Purposes

     This new  section  contains the findings and  purposes  of the
acid deposition control program.  In summary the findings include
that emissions of  sulfur dioxide (SO;,)  and nitrogen oxides  (NOX)
are being transformed into acid deposition that represents a threat
to natural resources, ecosystems, materials, visibility and health.
Given  that  non-utility  emissions  of  sulfur  dioxide  will  have
declined by over 1 million tons between 1980 and 2000, the purpose
of  this  title is  to  reduce  utility emissions of  sulfur  dioxide
sufficiently to achieve a 10 million ton reduction  relative to 1980
levels and to reduce NOx  emissions by 2 million tons from expected
levels. It  is  also the  purpose of title  V to encourage  energy
conservation and pollution prevention as  a  long range strategy for
reducing  air  pollution   and  other adverse  impacts  of  energy
production and use.  Emission  reductions  will  be  achieved  in two
phases -- phase one reductions are required after December 31, 1995
and phase two reductions are required after December 31,  2000.

                  New CAA Sec.  502—Definitions

     This new section contains  the definitions and meanings of key
terms used in this title.

     New CAA  sec.  503—Allowance Program for Existing Units

     This new section  describes the  emission allowance  system
proposed as the key implementation vehicle  for Title V.  To ensure
that the emissions reductions contemplated by this Title are met,
a limited number of emission allowances will be issued to affected
sources for each year  based  on a statutorily prescribed formula.
An  allowance  is  a federal authorization to emit  a  ton  of  sulfur
dioxide or nitrogen oxides  in  a calendar year.   Holders  of these
allowances are prohibited from  emitting S02 or NOX unless they hold
an equivalent number of allowances.  In phase I, allowances can be
transferred among  affected  sources  within a State  and within an
interstate  utility company.    In   phase  II,  allowances  may  be
transferred among  affected  sources  within two  multistate regions
of the county.  Allowances may  be transferred and banked according
to  regulations in  both phases.   Nitrogen oxide  allowances  may be
traded  for  sulfur dioxide  allowances,  and  vice  versa,  at  an
exchange  rate  of  1.5  pounds of nitrogen  oxides  for 1 pound of
sulfur dioxide.  When existing sources shutdown, they are allowed

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                              -  57  -

to  keep (and transfer)  their allowances.   New sources  will be
required  to  obtain  allowances.   EPA  will  track all  emission
allowances and transfers.

           Mew CAA Sec.  504—First  Phase  Sulfur  Dioxide
                   Emission Reduction Program

     This  new section  sets forth  the first  phase SO? reduction
program.  All existing fossil  fuel-fired  steam electric generating
units  larger  than 100 MWe are required  to  limit  their emissions
after  December   31,  1995  to  the  tonnage  equivalent  of  a  2.5
Ibs./mmBtu emission rate for S02 on an annual average basis.  (The
tonnage equivalent  is  determined  by  multiplying the 2.5 Ib/mmBtu
rate times the annual average fuel consumption for 1985-1987.)
     The phase one reduction requirements  may be reassigned to one
or more alternative fossil fuel-fired units upon application during
the first phase  by the owner or operator  of  the  affected units.
The Governor of the State where  the  units  are located may prohibit
the use of out-of-State coal.

          New CAA Sec. 505—Second PhaseSulfur Dioxide
                    Endssion Reduction Program

     This  section  sets  forth  the  second phase  SO-,  emission
reduction program.   Fossil  fuel-fired  steam-electric  generating
units  larger  than  75  MWe with  emission  rates  greater  than 1.2
Ibs/mmBtu will receive SO2 allowances equal to the product of 1.2
Ib/mmBtu  multiplied by  the unit's  historic  (1985-1987)  annual
average fuel consumption.  Through the trading program established
by- section  503,  allowances can be  transferred   among  affected
sources.  Units which are currently  limited to an emission rate of
less than 1.2  Ib/mmBtu and generating units smaller than 75 MWe
will be required to emit at a rate no higher than their actiial 1985
emission rate.

   New  CAA Sec.  506—Nitrogen Oxides Emission Reduction Program

     This new section  contains the  reduction requirements for NOX
sources.   By  rule,  the  Administrator  will establish  emission
standards for existing coal-fired steam-electric generating units
that are sufficient to  reduce NOx emissions by 2 million tons below
projected emissions for calendar year 2000.

          New  CAA Sec.  507r-^:Permits  and Compliance  Plans

     This  new  section  establishes  the  permits  and  planning
requirements  for  the  acid  deposition control  program.   Sources
subject to title V are  required to apply for first and second phase
permits.  These will contain, among other things,  the schedule of
compliance the source will follow to meet  the requirements of this
program and,  if applicable, the number of  allowances  initially

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                              -  58  -

allocated  to  the source.   Permit applications  for phase  1  are
required  no  later  than  27  months  after  enactment;  phase  2
applications by January  I,  1995. Applicants  may submit revisions
to their permit  applications  and compliance plans.   Each permit
will contain  the  key enforceable  provision  that each  source is
prohibited  from  emitting  sulfur  dioxide or  nitrogen  oxides in
excess of the  allowances  that it holds or rates prescribed for each
of those pollutants.

               Mew CAA sec. 508--Repowered Sources

     This  new section  establishes the availability  of  a  non-
renewable  three year  extension  of  the  stage  two compliance dnt G
(i.e.,  until December 31, 2003)  for any unit  being repowered with
clean coal  technologies  specified  in  this title.   Such repowered
sources would be required to meet  a  hybrid standard based on the
rated  capacity  of  the  boiler  prior  to repowering  and  the  new
capacity of the boiler once repowered.   Such sources would also be
exempt from meeting new source performance standards and would be
subject  to streamlined  new  source  review  procedures if  their
potential emissions are expected to increase.

        New CAA Sec. 509—Election for Additional Sources

     This new section establishes  the  terms  under which existing
utility boilers smaller  than  75MWe or  with emission  rates  lower
than  1.2  Ibs/mmBtu  and  non-utility  sources   (e.g.,  industrial
boilers) may  elect  to  participate  in the  emission  allowance
transfer system.

               New  CAA Sec. 510--Excess Emissions

     This new section establishes that  the owners and operators of
sources that emit  in excess of their allowances are liable for the
payment of  an excess emission fee of $2000/excess ton.   (This fee
is in addition to any penalty liability under other sections of the
Act. )   The  fee  is  non-discretionary.   In  addition,  units  that
emitted  in excess  of their  allowances must  offset  the  excess
emissions  by  an  equal tonnage  amount  in the year  following  the
excess.

             New CAA Sec. 511—Monitorj,ng,  Reporting
                 and  Recordkeepinq Requirements

     This  new  section   establishes   the  Title  V  monitoring,
reporting,  and record keeping requirements.   All affected sources
will be required  to install  and  operate  continuous  emissions
monitors (CEM)  for S0?,  NOX and opacity or  employ a  comparably
reliable method for continuously monitoring  emissions and to keep
records  and provide reports of  emissions.   This  requirement is
necessary for verifying actual emissions performance for purposes
of ascertaining  compliance, the availability of  allowances  for

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                              - 59 -

trade,  and  the  amount  of any  excess  emission fee  and  offset
liability.

       New CAA Sec. 512—Compliance with Other  Provisions

     This new section establishes  that compliance with Title V does
not. exempt  or exclude  sources from their  requirements  under  an
other part of the Act, except that affected sources are exempt from
stack height requirements  under section  123.

                  Mew CAA  Sec. 513—Enforcement

     This new section establishes  the enforceability of the various
provisions of the Title.

               New  CAA Sec. 514--Report to Congress

     This  new section  requires   the  Administrator  to report  to
Congress on  the  environmental  effects of the emission reductions
required under this Title.

  New CAA Sec. 515—Clean  Coal Technology Regulatory Incentives

     This new section provides regulatory incentives to encourage
the use of clean coal technologies.  The  Federal Energy Regulatory
Commission  (FERC)  is required to adopt  regulations for  a  5-year
demonstration  program  that would  include  establishment  of  an
incentive rate of  return and  a 10 to  20 year amortization  period
for  innovative  emission  control technologies.    FERC  is  also
required to  develop  a  process to  negotiate a  prudent  level  of
investment for clean coal and other innovative technology projects.
This  section also  exempts  temporary arid  permanent  clean  coal
technology   demonstration  projects   from  new  source   review
requirements under section  ill and Parts C and  D of  the Clean Air
Act so  long- as  the  demonstration project does not increase the
original facility's potential  to  emit for any pollutant regulated
tinder  the  Act.     Finally,  States  are encouraged  to provide
additional utility regulatory  incentives  for the promotion of clean
coal technologies.,
                                         U.S. EPA Headquarters Library
                                              Mail code 3201
                                         1200 Pennsylvania Avenue NW
                                           Washington DC 20460

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                              -  60  -
TITLE VI—PROVISIONS RELATING TO ENFORCEMENT
Section 601.   Section 113 Enforcement

     This section amends existing Clean Air Act (CAA) section 113
to accomplish several important goals:

            Clarification of 3Q-dav Notice Provisions

     Section 113 is amended to  clarify and confirm that the 30-day
notice period  is not  a shield to  protect sources.   Subsection
113(a)(l) is amended to clarify and  confirm that the 30-day notice
provision is intended solely to allow  the states an opportunity to
exercise  their  civil  enforcement  prerogatives  before  Federal
enforcement action is initiated.  Subsection ll3(b)(2) is likewise
amended  to clarify  and  confirm that  a  source  is  liable  for
penalties for all violations of a SIP, even if the violations pre-
date the  Notice of  Violation.   Amendments to  subsection  113{a)
clarify and confirm that the 30-day  notice provision for civil and
administrative SIP  actions is  inapplicable to  criminal  actions.
Furthermore, the amendment  clarifies and confirms that, as with all
other environmental statutes, the option of proceeding criminally
is not  excluded by  the bringing of  an administrative or  civil
action.                                                      •     ,

       Expanded  Administrative Compliance Order Authority

     Subsection  H3{a){4)  is amended to  authorize EPA to  issue
administrative orders with non-renewable compliance schedules of-
up to 12 months' duration.   This provides EPA with the ability to
expeditiously  resolve violations administratively, while  still
protecting against extensions of applicable compliance deadlines.
EPA  will  retain  authority to  pursue  civil  penalty  actions,
contractor listing and other appropriate remedies until compliance
is achieved,  and the  issuance of  an order  will not insulate  a
source from criminal prosecution.

            Ensuring  Full Enforceability of Stationary
                  Source Statutory Requirements

     Section 113 is  amended to ensure that administrative,  civil
judicial, and criminal sanctions may be imposed for any  violation
of any requirement of titles I, III, IV or V of the Act,  including
any  rule,  order,   waiver,  permit,  plan   or  fee  requirement
promulgated or  approved under the  Act.   This  amendment  ensures
enforceability  of  new  requirements  proposed  elsewhere  in  the
Administration's bill.

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                              -  61  -

              Enhanced Criminal Sanctions Authority

     Subsection   113(c) ,   which   currently   authorizes   only
misdemeanor-level criminal sanctions  for violations of the Act, is
amended to  authorize felony-level sanctions  for  certain knowing
violations and misdemeanor-level  sanctions  for certain negligent
violations.

     The paragraphs  in  subsection 113(c) are  also  reordered and
recodified),    New  paragraphs   113(c)(l)   and  (c)(2)  authorize
misdemeanor-level criminal sanctions against anyone who knowingly
fails to pay a fee owed  the government or who negligently violates
amended section 112 and thereby places another person in imminent
danger of death or serious bodily injury.  New paragraph 11.3(c)(f>)
authorizes  felony-level sanctions against  anyone who  knowingly
violates  amended  section 112 or  releases  of  certain  specified
extremely hazardous  substances  and toxic  chemicals  and who knows
at  the  time  that  another person  is  thereby placed  in imminent
danger of death or serious bodily  injury.

     Existing CAA  paragraph  113(c)(2)  (new  paragraph 113(c)(4)),
which establishes criminal liability for knowing fal.se statements
and falsification or tampering with monitoring devices, is amended
to  include  liability  for:    knowing  failures  to   act;  knowing
omissions  of  material, information;  the  knowing  destruction,
alteration, concealment, or failure to maintain documents necessary
for  CAA compliance; arid knowing  failures  to  install  necessary
monitoring  devices.    It  also  increases  the maximum term  of
imprisonment for this category of violation  from six months to two
years, and  the  $10,000  penalty  cap with a  reference to title .1.8
U.-S.C. ,  which  provides  for  maximum   fines  of  $250,000  for
individuals and $500,000 for  organizations.

   -     -        Administrative  Penalty  Authority

   •  The •• CAA  is  amended   to  authorize   the  EPA   to   issue
administrative penalty orders.  This amendment sets a presumptive
cap of $200,000 on administrative penalties, and provides that EPA
and the Department of  Justice may agree  to increase the penalty
limit for certain cases or  categories  of cases by  entering into
memoranda of understanding.    These agreements would be especially
appropriate  for  categories   of  cases  which   routinely  involve
multiple violations, each of which may have minor  penalties but
which total more than $200,000.

     The  CAA is  also  amended to  authorize EPA to  issue  "field
citations" for minor violations  discovered during the course of an
inspection  and  for  violations  of routine  reporting  and record-
keeping requirements.   The  particular  categories of cases which
may  be  addressed  by field  citations will  be specified  by  the
Administrator,  from  time  to  time,  through  a  memorandum  of
understanding between the Administrator and Attorney General and

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                              -  62 -

will be promulgated  in  regulations.   Civil.penalties assessed in
a field citation will not exceed $5,000  and the payment of a civil
penalty  assessed pursuant  to a  field  citation  shall  not  be  a
defense to further enforcement and penalty liability for violations
occurring before  or  after  the date of the violation(s)  addressed
in the citation.  Sources against whom field citations are issued
may either pay the civil penalty to an EPA official other than the
inspector who  issued the citation or request an informal hearing
as provided for in regulations.   The  hearing  would not be a formal
adjudicatory hearing and would.not be subject to 5 U.S.C. sections
554 and 556.

     Assessment  of   civil  penalties  under   either  of these  new
administrative penalty authorities are subject to judicial review
in the appropriate United States District Court.  Assessments are
also enforceable  by  suit brought by  the  Attorney General  in the
appropriate  U.S.  District  Court.    The provisions  for  judicial
review and  collection of penalties are  intended  to  operate like
the comparable provisions for administrative penalties in the Clean
Water Act, 33 U.S.C.   § 1319(g)  (8) and  (9).

     Current  subsection  113(d>, which  allows  states and  EPA to
grant  "delayed compliance orders" of SIP requirements  past the
attainment deadlines, is prospectively  repealed.   That  authority
is no  longer  necessary or  appropriate in light  of the amendments
proposed  to  subsection  113(a)   authorizing  12-month .compliance
orders, and the revised  planning procedures and deadlines proposed
in Title  I  of the Administration Bill.  Any delayed compliance
orders in  effect • prior  to the  repeal  of section  113(d)  shall,
however,   remain  in  effect until expiration or  termination  as
provided therein, and shall not be affected by this amendment.

                   Penalty Assessment Criteria

     A new subsection 113(e) clarifies the criteria to be applied
in assessing penalties, and clarifies and confirms that the maximum
statutory penalty may be assessed for each day of each violation,
including each day of a multi-day averaging period.

     Subsection H3(e) also clarifies and confirms  that  once EPA
establishes evidence of  a violation  using a formal  test method,
EPA can use other credible evidence to prove additional violations,
or that a violation has continued.  In addition, subsection 113(e)
clarifies and confirms that once EPA has made a prima facie case
that establishes a period of violation, the burden of proving any
intervening days of compliance rests  with the source.  Sources may
then rebut this presumption by  proving  by a  preponderance  of the
evidence that there were  intervening days with no violation or that
the violation was not continuous in nature.
     Finally,  new subsection  113(e)  explicitly  identifies  the
factors  both a  court and  the   Administrator  shall consider  in
determining the amount of any  civil penalty assessed under section

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113 or section 304(a)(l) or (3).

     Current subsection H3
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                              -  64  -

authority  to  use contractors  to  conduct  CAA inspections.   The
section includes  a  reference to 18 U.S.C.  §  1905  providing that
contractors are subject to that  provision's criminal sanctions for
illegal disclosures.         :


Section 605.   Administrative Enforcement Subpoenas

     This section amends CAA subsection  307(a) to give EPA express
authority  to  issue  administrative subpoenas in  support  of  its
enforcement  activities  under  the Act.    This  expands  existing
authority to issue subpoenas in support of rulemaking activities.
This  authority   corresponds  to   the  increased   administrative
enforcement mechanisms proposed in these amendments, and conforms
the CAA to other environmental statutes.
Section 606.   Enforcement of Administrative Orders.

     Current  subsection  303(b)  provides  for  civil  penalties  of
$5,000 for each day of  "willful"  violation  of  an emergency order
issued  by  the  Administrator  under  subsection  303(a),  and  no
criminal penalties.  This amendment deletes subsection 303(b) and
makes  section  303 orders   enforceable   under  the  Act's  other
enforcement authorities,  e.g.  sect.ions 113, 120,  304{a)(.l), and
306.  The maximum  civil  penalty for  an emergency order violation
is  thereby  raised to   $25,000  per  clay  of  violation  and  the
requirement  of  proving  "willfulness"   for   civil  actions  is
eliminated.   in  addition, criminal sanctions are  made available
under subsection 113(c)  for  knowing violations of emergency orders
and for knowing endangerment.
Section 607.   Scope of Emergency Powers.

     Section 303 is  also  amended  to  authorize injunctive actions
arid emergency orders for episodes threatening to the environment,
in addition  to  its current authority to  safeguard  human health.
In addition,  both  the  24- or  48-hour  time  limitations on  the
duration of emergency orders,  and  the prohibition against judicial
enforcement of emergency orders unless state and local authorities
have not  acted,  are eliminated.    This  will allow  the  Agency to
effectively order  necessary emergency  action and to  enforce  any
order  issued  without  delay, and conforms  the  CAA  to  other
environmental laws.  This  amendment preserves the existing section
303 requirement that the Administrator consult with state and local
authorities before taking any  action.
Section 608.   Contractor Listings.

     Section 306 of the  Act is amended to enable the Administrator
to exclude from Federal  government contracts, grants, or loans any
facility owned or operated by  a person criminally convicted under

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                              -  65  -

subsection. 113(c).  This  expands  current  auf-.hori.Ly,  which Limits
the contractor listing action to the particular violating facility.
The Administrator  is given discretion to limit the  scope of tlio
exclusion to the particular violating  facility or to a subdivision
of  the legal  entity which owns  or  operates  the  facility,  as
appropriate.

     The mandatory listing requirement  of  subsection  306(a)  is
expanded  to  include any  violation  criminally  actionable  under
subsection 113{c) of the Act,  as well as mobile  source violations
under sections 205(d),   211(d)(3)  and  212(e). • The  amendment  also
clarifies and confirms that following  a conviction under paragraph
                 false statements,  omissions, etc.), not only must
                    be corrected,  but  additionally any substantive
                      the  false  statement  (e^....,   a  source  in
                       for which  the  defendant  falsely submitted
the false statement
violation  underlying
violation of  the  NSPS
complying monitoring  information) must  be  certified as in actual
substantive  compliance by  the  Administrator, in  order  for  the
defendant to be removed from the list.

 '  .  This section is also ensures that the new criminal sanctions
for  knowing  enclangerment,  negligent  violations,  and  knowing
omissions and  failures to act result in mandatory listing under
section 306.
Section 609.   Judicial   Review
               Regulation.
                                   Pending   Reconsideration   of
     This amendment clarifies  and  confirms  that under subsection
307(b), as  under  subsection 307(d)(7)(B),  a  petition for agency
reconsideration  does  not  render  agency  action  non-final  for
purposes of  judicial review  and  does not  toll the  60-day  time
period for seeking judicial review.
Section 610.   Citizen Suits.

     Section 304 is amended  to  authorize  the  assessment of civil
penalties in citizen  suit  actions as in the  Clean  Water  Act and
the Resource Conservation and Recovery Act.  The section provides
further for the deposit of citizen  suit  penalties  into a special
fund in  the U.S. Treasury.   The monies  would be  available for
appropriation to  EPA  for use  in air compliance and  enforcement
activities.

     In addition, section 304 is amended to require  that copies of
complaints and proposed settlements in citizen  suit cases be served
on the Administrator  and the Attorney  General,  as in  the Clean
Water Act.   The  amendment provides specifically that  no citizen
suit settlement can be entered  unless  the  government  is given 45
days notice  and  an opportunity to comment or intervene  in the

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action.  This amendment allows the  government to substitute itself
as plaintiff with respect to a citizen claim for civil penalties,
and clarifies and confirms that the federal government  is not bound
by a citizen enforcement action to which it is not a party.
Section 611.
Enhanced  Implementation  and  Enforcement  of  New
Source Review Requirements.
     This section clarifies  and  confirms  that  operation,  as well
as construction and modification, of major sources not meeting new
source review  requirements  is prohibited,  and that  section  167
administrative  orders  regarding  new  sources  can  be  directly
enforced both civilly and criminally under section 113.


Section 612.   Movable Stationary Sources.

     The  definition  in  section  302  of  the   Act  of  the  term
"stationary  source"  is  amended  to  clarify  and  confirm  that.
emissions from movable  stationary  sources  such  as mobile asphalt.
batch mixing trailers and  ships  at port  are  subject  to  the Act's
stationary source requirements.
Section 613.
Enforcement of New Titles of the Act.
     This provision expands availability of the section 120 remedy
allowing recovery of the economic benefit of noncompliance to cover
violations of the new proposed Title IV governing permit programs
and Title V regarding acid precipitation.

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                              -  67  -
Title VII—MISCELLANEOUS PROVISIONS
Section 701.
Grants for  Support  of Air Pollution  Planning and
Control Programs.
     Amends Sec. 105 to allow the Administrator to make grants to
air pollution  control  agencies in amounts up  to  three-fifths of
the cost of  implementation.   Agencies  contributing less than the
required two-fifths minimum have three years to  attain this minimum
funding level.

     Requires that, in most cases,  no air pollution control agency
shall  receive a  grant, during  any  fiscal year  if its  current
expenditures of non-Federal  funds  for  recurrent expenditures for
air pollution  control  programs is less than expenditures  in the
preceding year.  The Administrator shall  also  revise  the current
regulations   defining   applicable  nonrecurrent   and   recurrent
expenditures.


Section 702.   Annual Report Repeal

     Repeals section 313 of the Clean Air Act.


Section 703.   NOx and VOC Study.

     Within two years of  enactment,  EPA,  in  conjunction with the
National Academy of Sciences, shall study and report to Congress,
the role of ozone  precursors  in tropospheric ozone formation and
control and specifically examine the  roles  of NOX and VOC emission
reductions.


Section 704.   Review and Revision of Criteria and Standards.

     Amends sections 108  and 109  by revising  the  procedures for
periodic review  and  revision of  national  ambient air  quality
standards and  the  air  quality criteria on which they  are  based.
In general, it requires the Administrator to determine  every five
years whether  revision  of  existing standards  is appropriate and,
if so, to complete appropriate revisions within three  years.  The
section also provides  for  issuance  of criteria and promulgation of
standards for pollutants newly listed under section 108 and makes
technical and conforming changes.
Section 705.  Air Pollutant Release Investigation Board.

     Establishes within EPA an Air Pollutant Release Investigation

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                              -  68  -

Board  for the  purpose  of  investigating  potentially  dangerous
accidental releases of air pollutants.  The Board would consist of
the Secretary of Labor or  his  designate and four members appointed
and  convened  by  the  Administrator  following  a  major  life-
threatening  release  of   an  air  pollutant   or   pollutants  to
investigate the release and report to Congress.

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