TO PfcEVovr S LGNi FI CANT
 DETERIORATION OF AIR QUALITY
    PREPARED  BY OFFICE OF
     TRANSPORTATION AND
     LAND USE POLICY
ENVIRONMENTAL PROTECTION AGENCY
         JUNE,  1975

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                          TABLE OF CONTENTS
                                                         Page
       Introduction and
       General  Philosophy 	  	    i
                            DIVISION ONE
I.      Information Requirements For
       Analysis Document 	  1
II.     Intergovernmental  Cooperation
       and Notification   	  6
III.    Timetable For Reclassification	11

                           DIVISION TWO
I.      Triggers to Reclassification:
       When Might a State Want to Reclassify?	15
II.    Approaches to Reclassification	19
III.   Determination of Boundaries and
       Size of Reclassification Area	23
IV.    Balancing Environmental, Economic, Social,
       National, and Regional  Considerations  	27
V      A Suggested Sample Format for Reclassification
       Analysis	29

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                              APPENDICES
A.  Guidelines For Determining Whether An
      Area Pervasively Exceeds National
      Ambient Air Quality Standards	i-vi

B.  References For Section IV» Balancing
      Environmental, Economic, Social,
      National, and Regional Considerations	i-iii

C.  Suggested List of State, Regional,
      and Local Agencies to Consult on
      Proposed Reelassifications	i

D.  Definition of Key Terms.	i-v

E.  U.S. Federal Register, December 5, 1974	i-ix

F.  Amendments to the Regulations	i-xv

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     The program to prevent significant deterioration of air quality
is based on the principal  that clean air is a natural resource of
great importance, a resource whose value cannot always be measured
in terms of proven health  or property damage.  EPA has attempted to
articulate the principle into a general  policy and to translate that
policy into effective regulations in response to the May 30, 1972
Court decision, Sierra Club v. Ruckelshaus, affirmed in 1973
by the Supreme Court.1

     The regulations are the result of long and full study and of
extensive public participation, including nationwide public hearings.
At the core of the regulations is the questfon of what constitutes
"significant" deterioration of clean air and the process and pro-
cedures to be used to resolve that question for any given area.
Because the program deals  with air quality levels that have not been
proven to cause health or  property damage, the determination of signi-
ficant deterioration must  take into account factors other than air
quality alone.  Economic and social effects and subjective concerns,
such as aesthetic values,  must also be considered in resolving the
question of significance.   Because these effects are best evaluated
by those who reside in the areas involved, EPA has developed a
regulatory framework that  gives States, Federal Land Managers, and
Indian governing bodies the flexibility to decide what levels of
deterioration are significant.within the context of three "classes"
of different levels of allowable incremental increases in total
suspended particulate matter (TSP) and sulfur dioxide (S02).

     Class I applies to areas in which practically any change in
air quality would be considered significant; Class II applies to
areas in which deterioration normally accompanying moderate well-
controlled growth would be considered insignificant; and Class III
applies to those areas in  which deterioration up to the national
standards would be considered insignificant.  All areas of the
country are designated Class II initially, but States, Federal Land
Managers, and Indian governing bodies may request redesignation of
any area to accommodate social, economic, and environmental needs.

     The provisions that allow for redesignation are based on the
premises that the significance of deterioration must be determined
     1 For a fuller description of the background of the regulations see:
Technical Support Document - EPA Regulations for Preventing the Significant
Deterioration of Air Quality, January 1975.

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partially on the basis of the practical  effect of the determination
and the present or intended use of the land (e.g., pristine recre-
ational area or commercial-industrial  area) and that the people in
the area for which the determination is  being made should make the
determination of what level of deterioration should be considered
significant.  EPA lacks the resources  or knowledge to determine what
air quality deterioration would be considered significant in every
area of the country.  However, the Administrator will not approve
requested designations which are arbitrary or capricious.

     In order that the Administrator will  have an adequate basis for
determining whether an application to redesignate an area should be
approved or disapproved, the regulations require that the necessary
information be a part of the hearing record on the proposed designation.
Specifically, the hearing record must show that the social, environmental,
and economic effects of the proposed redesignation have been evaluated
for the area being reclassified as well  as for adjacent areas and that
regional and national interests have been considered. Although EPA gives
the State the primary responsibility for making reclassification determina-
tions, the Agency expects that the State will make a good faith effort to
provide EPA and the public with the fullest possible disclosure of these
interests and effects. EPA will disapprove a proposed redesignation if the
State has not properly examined the effects of the redesignation or has
arbitrarily and capriciously disregarded such effects.

     The purpose of these guidelines is  to give guidance on how to develop
what EPA expects will be an approvable redesignation proposal.  The guide-
lines do not have the effect of a binding regulation requiring literal
compliance.  They do, however, indicate  the type of analysis EPA is
looking for in a reclassification proposal.  Any major departures from
the guidelines will be a matter of serious concern and subject to question
by the Administrator.  In meeting EPA's  expectation of full disclosure of
the effects of redesignation, application of the guidelines may differ
according to the circumstances  of specific redesignation situations and  of
different States' analytic capabilities  and available data bases.  Naturally,
such differences among States and circumstances will influence the application
of the guidelines.  In asking for adequate information on a variety of rele-
vant issues, EPA is not attempting to generate paperwork but to achieve the
fullest disclosure possible for informed public decision-making.  Responses
to the information asked for should be clear, simple, and brief with the
emphasis on quality, not quantity.

     There are two main divisions in these guidelines.  The sections
in the first division set forth the criteria upon which EPA will
approve or disapprove a redesignation proposal, the  information
required for the redesignation analysis documents to meet those
criteria, and the necessary procedures for involving affected govern-
mental and public entities in the decision-making process.  The sections
in the second division are for information purposes only.  They discuss
considerations in drawing area boundaries for a proposed redesignation,
when a State may need to reclassify, what approaches are available in
determining that need, and considerations in balancing various objectives.
As reflected in Division One, the reclassification analysis document
will form the basis for not only the State's reclassification decision,
but, along with the hearing record, for EPA's evaluation of the proposed
reclassification as well.
                                     n

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DIVISION ONE

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        INFORMATION! RFOUTRFMFIMT^ FOR ftM/\i vcjc n
             bz.'dl U)UHii)ld) of the regulations states that "the
proposed redesignation is based on the record of the State's hearing,
which must reflect the basis for the proposed redesignation, including
consideration of (1) growth anticipated in the area, (2) the social,
environmental, and economic effects of such redesignation upon the
area being proposed for redesignation and upon other areas and States,
and (3) any impacts of such proposed redesignation upon regional  or
national interests."  EPA is including in these guidelines a
set of information requirements to guide the States in preparing
their reclassification analysis documents.  Compliance with the
information requirements should provide reasonable assurance to
EPA that a State has adequately examined the environmental, social, and
economic, effects of the redesignation as well as consideration of
national and regional interests.  In addition, availability of the
information should reveal to EPA any effects that are arbitrarily
or capriciously disregarded.

     The information gathered and the analysis performed on them  will
be useful to the States in several ways.  The document will, as the
regulations state, be the subject of discussion at the public hearing
and the focal point for public participation, as discussed elsewhere
in these guidelines.  It will also be useful, EPA hopes, to State
policy makers, providing them with the information they need to make
the best possible reclassification decisions.  (Note:  the word "State"
is used throughout this section as a convenience.  We expect Federal
Land Managers and Indian governing bodies to also use this section as  a
guide in preparing their analysis documents.  State governments,  Federal
Land Managers, and Indian governing bodies can obtain further aid in
completing their analyses from the appropriate EPA regional office.)

     The questions that must be answered in the analysis document are
similar to those addressed in an Environmental Impact Statement (EIS)
prepared under the National Environmental Policy Act (NEPA).  It  includes
a gathering of information to describe the projected environmental, economic,
and social effects, consideration of national and regional interests,  considera-
tion of alternatives to the proposed reclassification, and the reasons for the
proposal.  This compilation of information and analysis should adequately
demonstrate the "need" for a reclassification and should be considered
as part of the framework for deciding what constitutes "significant"
deterioration in a particular area.

     Because there is a risk of significant environmental harm associated
with a decision to reclassify a relatively clean area from a Class II  to
a Class III, and because the rapid growth and uses of land associated  with
the Class III reclassification choice could cause irreversible or very costly

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to "repair" environmental  effects, the analysis of effects  to change
from a Class II to Class III would likely be more extensive than the analysis
required to change from a  Class II to a Class I.  EPA realizes that
some economically pressed  States may find the basic information require-
ments a burden on resources.  However, a State is not expected to bear
the responsibility alone.   States should be able to assign  the task of
compiling the required information to other local  or regional  agencies.
In addition, where industries would benefit from a reclassification,
the State may request that they participate in supplying the data necessary
to answer the analysis questions.  EPA expects there will be differences
in the level of detail required and expects variations according to
individual capabilities and circumstances.  EPA requires that a State
make a good faith effort in answering the required questions.   All  relevant
available data should be used to surface the fullest information possible
and to raise the pertinent issues for well-informed public  consideration
of the reclassisfication proposal.

     EPA does not anticipate a large number of reclassifieations.   The
initial Class II increment will accommodate most moderate well-planned
development while providing safeguards for air quality.  Because a State,
Federal Land Manager, or Indian governing body must fully discuss the
reasons for a proposed redesignation at a public hearing, any proposal
that did not show a definite need for such redesignation or would pre-
clude economic growth throughout a State or seriously endanger valued
preservation areas would likely meet with considerable public resistance
at the public hearing.  Should a State submit a proposed redesignation
without adequate justification, EPA would disapprove the proposal as
having arbitrarily and capriciously disregarded the environmental effects
of the redesignation.  In developing a reclassification proposal and
analysis, EPA strongly advises that there be early and continued consultation
with the appropriate EPA regional office.  The regional office can help
a State conform with the basic requirements while working with a State
to meet its particular situation and needs.

     The significant deterioration regulations have great potential
impact on the nature, extent, and location of future industrial, com-
mercial, and residential development throughout the United  States, and
specifically their impact on the utilization of the Nation's mineral
resources, the availability of employment and housing in many areas,
and the costs of producing and transporting electricity and manufactured
goods.  On the one hand, for example, relatively minor deterioration
of the aesthetic quality of the air may be very significant in a recre-
ational area in which great pride  (and economic development) is derived
from the  "clean air".  Conversely,  in areas with severe unemployment
and little recreational value, the  same level of deterioration might
very well be considered "insignificant" in comparison to the favorable
impact of new  industrial growth with resultant employment and other
economic  opportunities.  The Administrator believes that it is most
important to recognize and consider these  implications, since the con-
sideration of  air quality factors alone provides no basis for selecting
one deterioration increment over another.

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     Proposals for redesignation will be evaluated by the Administrator
using the following criteria:

     1.  Demonstration of need:  To redesignate from a Class II  there
must be an affirmative statement of the reasons for the redesignation
and why such a change is necessary.  (E.g., if the need is economic,
there must be data and projections to show that the Class II could not
accommodate the desired and anticipated level  of development.)   To
redesignate from a Class II to a Class I a similar explanation  is required.
(E.g., to preserve a pristine area, its unique or special environmental
features should be discussed as well as how the Class II might  not
adequately protect those features.)

     2.  Adequate analysis to^support a redesignation request:   There
should be a thorough examination of the environmental, social,  and
economic effects, including consideration of national and regional
interests, answering the questions provided below in this section.  There
should be full public disclosure of the proposal's advantages and
disadvantages so that the issues can be discussed at the public hearing.

     3.  No inordinate harm to the total environment:  This consideration
must be part of the analysis whenever there is a proposal to redesignate  to
a Class III.  See III. 2, 3 and 6 below.

     4.  Full consideration.of inter-state effects:   When a reclassification
to a Class III is proposed, attention must be given to how facility siting
plans might effect the air quality increments of neighboring states,
federal lands, and lands of Indian governing bodies.  Any violation or
infringement of an adjacent area's increment would not be permitted.  Thus,
any area can be redesignated but individual facilities within that area
would not be able to locate where they would violate an adjacent State's
increment.  When a reclassification to a Class I is proposed, full consid-
eration must be given to the potential limiting effects of development in
adjacent areas that  may  not be able to use their full increment, since
they would not be permitted to violate the stricter increment of the pro-
posed Class I.  Affected states and/or federal land managers and Indian governing
bodies must be given the opportunity to comment in all cases.

     Disregard of any of the four criteria would be grounds for the
Administrator to disapprove a proposed reclassification.  The information
requirements for the analysis document for reclassification to  any class
follows:

Requirements for the Reclassification Analysis

I.  Administrative and Procedural Facts

    A.  Responsible agency:  The State should designate an agency as the
lead (i.e., responsible) agency for the proposed reclassification, and
provide its name, address, function, (e.g., air pollution control,
economic development, planning) and a contact person in the agency who
could be reached for questions.

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B-  Explanation of Program:  A brief explanation of the function and

    operation of the program to prevent significant deterioration of
                                                              i..,
    air quality, including a description of new source reviewed be provided.

      C.   Purpose  of document:  The  purpose of the analysis should be stated
 to provide background  for the  proposal  and a focus for public participation.
      D.   Explanation of public participation: The  procedure and timetable for
 written comments, as well as the time,-date, and place of..the. public hearing should
 be given.  States also should  show  that they have  considered all significant
 issues raised at the public hearing.

      E.   Timetable for State actions:   The timetable  should specify
 periods  for circulating the analysis document,  holding the public hearing,
 submitting the proposal to EPA,  and any other significant actions related
 to the proposal.

 II.   Description  of Proposed Action

      A.   Statement of  reclassification  action:  The section should state the
 proposed change from Class    to Class   7~ It should explain (in terms
 comprehensible to the  layperson) the difference between the increment allowed
 under the present class and under the  proposed  class.  It should particularly
 make clear the difference in the level  of development that is permitted under
 the  present class and  that which would  be permitted under the proposed class.

      B.   Reasons  for the reelassification:  There must be an affirmative
 statement of the  reasons for redesignation and  why such a change is necessary.
 The  explanation must be based  on air quality considerations and how they
 relate to the determination of significant deterioration that takes into
 account  social, environmental, and  economic considerations including regional
 and  national  interests.  Include meteorological data  and any other available
 air  quality data  that  demonstrate the  need to reclassify in relation to the
 inability to achieve the desired social, environmental, and/or economic
 objectives under  the present classification.

      C.   Proposed boundaries:  Both a  verbal description and a map should be
 included indicating the location and boundaries of the proposed redesignation
 area in  the State and  in relation to any adjacent  States.

      D.   Impact on future character of area:  A brief description of the
 likely impact of redesignation on the  future uses  and development of the
 area.

 III. Supporting Analysis and Consideration of Alternatives

      A.   List of 8 questions requiring response:

      1.   Is the decision to reclassify consistent  with historic and/or
 projected growth, social and economic  characteristics of the area?  (This
 includes, for example, consideration of resource areas, growth projections
 for the 18 major industrial source  categories relevant to  the affected
 area, and the degree of change in the  area from current land uses.)  If
 not, explain why.

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  2.   Is  the  decision consistent with not only air quality considerations

      but also with broad environmental  concerns of the area (e.g. wa:er

      supply  "'"-i  vi:.-::->  b'o:---J v;;:sx.e;:


     3.  Are there any sub-areas within the reclassification boundaries of
special value that may require additional environmental protection?  (For
a proposed Class I, it would likely be the dominant portion of the area.
For a proposed Class III there may be areas  within it that require some
special or additional environmental protection.  This could b.e accomplished
by siting major sources in a way to minimize the impact on the sensitive area.

     4.  What related plans and programs affecting growth, energy facility
and industrial location, and environmental management are intended for or
are existing in the area?  How are they affected by the proposed reclassifi-
cation?

     5.  What, if any, harmful spill-over effects would be caused in
adjacent areas and States by the proposed reclassification?  (E.g., for
a change from a Class II to a III,is there a problem with long distance
transport of pollutants;for a change from a Class II to a I are there
any restrictions imposed on an adjacent area's growth and development?)

     6.  What are the advantages and disadvantages in terms of social,
environmental, and economic effects of the proposed reclassification?
Include disclosure of any potential irreversible effects.

     7.  Have national and regional concerns been taken into account
including but not limited to:  1) the critical food supply shortage and
need for agricultural land for food production; 2) the preservation of
sufficient recreational, wilderness, forests, and open space areas to
accommodate the present and future needs of an expanding population;
3) preservation of historical or archeological areas to protect a cultural
heritage; and 4) the critical energy supply situation and the need to
develop energy resources?  In weighing these national concerns, as in
weighing different and sometimes competing State/regional/local interests,
it is the role of the States to balance varying needs and to decide which
factors are most critical in each area.  However, where a State, Federal
Land Manager, or Indian governing body protests a redesignation to the State
proposing the redesignation and to the Administrator, the Administrator will
take an expanded role and balance the competing interests.

     8.  What alternatives exist to meet the desired objectives without
reclassifying?  What advantages and disadvantages do these alternatives
offer?

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                   II.  INTERGOVERNMENTAL  COOPERATION
                            AND NOTIFICATION
Introduction
     Under the Clean Air Act,  the primary  Responsibility for air pollution
control programs rests with the State.   This  structure provides a central
focus for air pollution control and a means of balancing the various  interests
and resource needs within the  State. Such balancing of different, sometimes
competing, interests is vital  to the non-siginificant deterioration program,
as discussed in Section VII of these guidelines.

     The non-significant deterioration  program will  focus at the State level.
As discussed in the section on Approaches, the program deals with the explicit
relating of land use and air quality concerns.  It will affect the siting  and distri-
bution of polluting facilities in some  areas  and preclude the construction of
certain facilities in other areas.  It  will require  the setting of air quality
goals, with consideration given to either change from or adherence to current
land uses for the proposed area.  These are issues that affect the tax base,
economic growth, employment, recreation, tourism, and other vital concerns
of local government, however.   Indian governing bodies will also find themselves
faced with similar issues in carrying out their responsibilities, and Federal
Land Managers will need to make similar critical  choices about the lands and
natural resources they administer.

     Because of the far reaching effects of the program, it is particularly
important to involve all affected parties in  the decision-making process.
This section of the guidelines spells out a precise  and formal minimum pro-
cedure for consultation between those proposing reclassifications and those
potentially affected by them.   It also  offers suggestions for informal, more
extensive consultation procedures the State may wish to consider.

     The Agency expects that the consultation process will be used by all
parties to share data and expertise.  Local and regional governments have
unique knowledge about their jurisdictions and lengthy experience in estab-
lishing land use goals that address many divergent interests.  Local  govern-
ments also have land use and environmental protection powers upon which the
State should draw upon to the maximum extent  possible.  Similarly, Federal
agencies, Federal Land Managers, and Indian governing bodies have special
experience and powers within their jurisdictions that States may wish to enlist
in carrying out the program.  Certainly all policy makers involved will wish to
share data to avoid duplication in data gathering.

     Besides easing the data problem, the consultation process can avoid
the  inequity of subjecting a local area to the requirements of a program in
whose formulation it has had no formal  voice.  The State, through an air
pollution control agency or other arm,  will be responsible for proposing clas-
sifications, and in many cases a single-purpose air pollution control agency will

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perform the new source reviews that enforce the classifications.   This
leaves no formal role or responsibility for local  or regional  general-
purpose government except through the mechanism of a formal  consultation.
EPA's experience with other programs affecting land use (e.g., Indirect
Source Review, Transportation Control) has shown that no such  program
succeeds without the cooperation of local  government and that  this coop-
eration is usually forthcoming when local  government is given  a full
partnership role.

     The same considerations apply to Federal  Land Managers  and Indian
governing bodies.  The consultation process establishes a similar formal
role for them as well as for concerned groups  and individuals  wishing to
participate in the consultation process.

     EPA encourages that notification of and consultation with affected
parties should also be part of the new source  review process.   EPA also
expects that, as part of a notice of proposed  approval, the  reviewing
agency will state how much of the allowable air quality increment the
proposed source will use up and how much will  remain.  This  will  allow
affected governments to assess the impact of a proposed source on their
areas and take any steps they deem appropriate.

State Consultation with Local Governments

     As soon as the State considers reclassifying an area, ifmust initiate
a process of formally notifying and requesting comments from all  affected
governments and persons.  For information on the timing of this process,
see the Timetable Section of these guidelines.  At a minimum,  the procedure
will consist of the following:

     1.  The State must send to all general purpose governments that may be
affected by reclassification of an area written notice that  the State is
considering proposing a reclassification.  It is essential that at a  minimum
States are required to consult with the local  elected officials of general
purpose governments.  While we encourage consultation with as  many groups
as possible, in Appendix C, it is essential that the local elected officials
be consulted in all cases.  The notice must specify the class  in which  the State
wishes to place the area, the proposed area boundaries, and  the timetable  for
State action on the proposed reclassification.  In addition, the notice must
be on public display in announced designated locations.

     2.  The notice must also request comments on the action.   A summary
of the comments received will be included by the State in the  economic,
social, and environmental analysis of the advantages and disadvantages  of  the
proposed reclassification.  (See Section III.  A(6) in Information Require-
ments Section)

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     The above represents a minimum requirement for consultation.   EPA
strongly recommends that States encourage local governments to take a
full partnership role in reclassification.   Local  governments  themselves,
however, should define the scope and nature of participation t?est  suited
to their needs and resources.   The following are approaches that States
and localities may wish to consider.

    A.  In some States (notably California) the State government has
formed an ad hoc Task Force with regional and local governments to
respond to certain EPA programs, such as Transportation Control Plans.
These Task Forces have had some success in developing local regulations
to replace the Federal ones and in many cases are being reformed or
extended to do Air Quality Maintenance planning.  This approach has proven
itself effective in producing  useable plans and regulations.

    B.  Another approach is to utilize the A-95 Clearinghouse or other
regional agencies as focal points for local participation.   These  regional
agencies could serve to disseminate information, coordinate local  data
and comment collection, and provide a complete package of comments and
suggestions on the proposal to the State.  This approach is a logical
extension of the A-95 review of reclassification proposals required by
the regulations.

   C.  A third approach is for the State agency itself, to hold local or
regional workshops on the reclassification process and on specific reclas-
sifications it is considering.  At these workshops, the State could provide
information, discuss specific  problems, and receive local and regional
comments.  This approach provides the greatest direct contact between
State policy makers and those  governmental  entities most directly  affected
by the reclassification.

     In carrying out any consultation approach, EPA cannot urge strongly
enough that State and local governments involve representatives of the
general public, business, labor, and industry.  No program can hope to
succeed without the cooperation of these groups.

Federal Facilities

     As soon as the State considers reclassifying an area that includes
a Federal facility (e.g., a military base or a government research center),
it must initiate a process of formally notifying the facility.  The minimum
                                      8

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procedure the State must follow is the one detailed on page  7  of
these guidelines (i.e., notice, request for comments, and public
disclosure of summary of comments).

     The General Services Administrator (GSA) has compiled a list of all
Federal facilities in the United States.  States may obtain copies by con-
tacting the EPA Office of Federal Activities or the appropriate Regional
Office.  It should be noted, however, that the list reflects a 1971 base
year and was not complete for that year.  Therefore, other sources are
necessary for a complete listing.


Federally Administered Lands

     As soon as a State considers reclassifying an area that includes
Federally administered lands, it must initiate a process of formally
notifying the Federal Land Manager of the area, both through the managing
agency's headquarters and the appropriate field or regional offices.
The minimum procedure that must be foilwed is the one detailed above as
Steps 1-2 in the State consultation with local governments subsection
(notice, request for comments, and public disclosure of comments.}

    (The regulations provide that Federal Land Managers may propose
reclassifications more stringent than those proposed by the State or
promulgated by EPA for the lands they administer.  As soon as a Federal
Land Manager considers such a proposal, he or she must initiate a process
of formally notifying all State, local, and Indian governmental bodies
and all persons who request such notification of the proposal.  The minimum
procedure that must be followed is the one detailed above as Steps 1-2 in
the State consultation with local governments section (i.e., notice, request
for comments, and public disclosure of summary of comments).

Indian Lands

     Where a State has assumed authority over Indian lands in environ-
mental matters under other laws, it has authority to propose reclassifi-
cations for these lands.  In so doing, it must treat the governing body
or bodies of the Indians inhabiting the lands as "affected" governmental
bodies and include them in the notification and consultation process.

     Where the State has not assumed such jurisdiction, the Indian govern-
ing body has the authority to propose reclassifications.  As soon as this
body considers such a proposal, it must initiate a process of formally
notifying all affected Federal, State, and local governments and any person
who requests such notification of the proposal.  The minimum procedure
the governing body must follow is the one detailed above as Steps 1-2
in the State consultation with local governments sub section (i.e., notice,
request for comments, and public disclosure of summary of comments).

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Note:  EPA realizes that Indian governing bodies may desire assistance in
performing reclassifications.  Each EPA Regional Office will have a desig-
nated Indian Affairs liaison person and will  be glad to answer any questions
that an Indian governing body may have on the procedures for reclassification.
This aid may, however, be insufficient to the need.  The Bureau of Indian
Affairs may wish to aid Indian governing bodies where EPA cannot.
                                       10

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               III.  TIMETABLE FOR RECLASSIFICATION


     Given the complexity of a reclassification proposal  and analysis
document and given the wide range of governmental  entities and citizens
who will wish to evaluate and comment on the proposal  and the analysis,
the timetable for reclassification must include ample  time for public
participation.  EPA has designed a timetable that  follows the public
hearing requirements of the Clean Air Act while incorporating lengthy
inter-agency consultation and public comment periods.   The timetable,
depicted in Figure 1, is as follows:

                          OPTIONAL TIMING

     1.  As described in the Intergovernmental  Cooperation Section of
     these guidelines, as soon as the State considers  reclassifying an
     area, it must notify and request comments  from those general  purpose
     governments potentially affected.  The length of  this period  of
     consultation, which will be concurrent with State development of
     the analysis document, is not specified here  because it will  vary
     so widely.  Some analysis documents may take  only a  short time to
     prepare; others may take a very long time. The only timing require-
     ment for this section is that the State begin the formal notification
     and consultation process described in the  Intergovernmental Cooperation
     section as soon as it considers a reclassification.   It would be
     appropriate, at this time, to consult with an EPA regional office.

     2.  The second step is the completion of the  formal  notification
     and consultation process, where the State  receives the comments
     it has requested and prepares a summary for inclusion in the  analysis
     document under Section III.A.(6)  The time necessary for this step
     will also vary widely.

     3.  When the State has completed the consultation and analysis pre-
     paration phase it may submit a proposed reclassification to EPA.
     Concurrent with its submission to EPA, the State  may make the docu-
     ment available for public inspection and comment, prior to announcement
     of the public hearing.  To ensure adequate availability, the  State
     should place the document in at least one  location in each county
     in the proposed area and in each county in any other area that might
     be affected by the proposed reclassification.  The State should also
     advise all those agencies, governments, and persons it formally
     notified in Step #1 above, of the availability of the document for
     inspection and comment.

     4.  The State should ideally make the document available to the public
     for comments at least 30 days before announcement of the public hearing
     Although EPA may be provided with a copy of the document, it  will not
     formally comment until the formal submittal and notification  period
     in Step 8.

                          REQUIRED TIMING

     5.  The State must publish notice of the public hearing on the
     proposed reclassification at least 30 days prior  to the hearing.
     At this time the analysis document must also be made available
     to the public (if not already done in steo 3). A oublic notice

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     (in a newspaper) is required to announce  availability of the document.
     (This period, togetner with the optional  30 days  in Step 3 above,
     could make the document available  to  the  public for at least 30 days
     to an optional total  of 60 days before the public hearing).

     6.  After 30-days notice described in Step #5 the State will hold
     a public hearing on the proposed reclassification.

     7.  Following the public hearing,  the State may receive written comments,
     revise the analysis document,  or refine the reclassification action
     based on public comment.  At the end  of that period, the State should
     submit its final reclassification  proposal to EPA for approval or
     disapproval.   The analysis document and a summary of the hearing record
     must accompany the proposal.  During  this period, any neighboring
     State that feels it will be adversely affected by the proposed reclassi-
     fication and is unable to resolve  its differences with the proposing
     State may appeal to EPA to resolve the dispute.  If negotiation fails
     to bring agreement between the States, EPA will itself make the Classi-
     fication decision for the area. The  same conditions will apply to
     disputes between States and Indian governing bodies.

     8.  EPA will  publish proposed rulemaking  in the Federal Register
     soliciting public comments for a minimum of 30 days.  Following that
     period, EPA will publish in the Federal Register its final determination
     on the State submittal.  Should EPA disapprove the proposal, the State
     is free to reconsider, rework, and repropose the classification at any
     time providing it follows all  prescribed  procedures.

     The formal process will probably take a minimum of 6 months.
Administrative delays and time for the  hearing itself will probably extend
it beyond that point.  Any individual time period may be extended if the
State and EPA agree to do so.  Because  of  the  length of time required for
the reclassification process, it is important  for States to anticipate
and plan for needed reclassifications.   With proper planning and adherence
to the required procedures presented in Section I, II, and III of these
guidelines States should be able to meet,  with few difficulties, the
occasional circumstances that would require consideration of a redesignation
to a Class III or to a Class I.
                                    12

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    TIMETABLE AND CONSULTATION PROCESS FOR RECLASSIFICATION PROPOSAL

                               Figure I
  Time
 cl ock
begins
(Days)
   No
Speci fi c
  Time
 60-90
                  O
                                    Consultation and
                                    reclassification
                 preparati on
                 analysi s.
  of
Continued collection of relevant data;
task force or other consultation.
State may make available reclass-
ification proposal and analysis to
publi c.
Comments on documents, if made
available, begin.  (EPA does not
comment until Step 8.)
State announces public hearing.
Document must be made available
for review and comment for 30 days
up to and at hearing.
Public hearing.

State submits the analysis
and hearing record summary
a decision.
document
to EPA for
EPA will publish notice of proposed
rulemaking in the Federal Register
for a minimum of 30 days soliciting
public comment.  After that period
EPA will publish the final determi-
nation on the State submittal.
                  (s^State or  delegated  State  agency

                  djj]) Local and  regional  governments and  planning  agencies

                  [Jjjj] Federal agencies  (see  Intergovernmental  Section)

                  [ERA] U.S. Environmental  Protection Agency

                         ic  interest  groups, organizations  and  individuals

                         Federal  Register

                                        13                             &

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DIVISION II

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                  INTRODUCTION TO DIVISION II


     The information in this division is strictly advisory and states
may use it at their discretion.  EPA has included the following discussion
and information in response to State requests  to clarify some of the funda-
mental issues associated with the reclassification process.  The information
in Division II addresses when a State may need or want to reclassify,  what
approaches are available in determining the need, what considerations  are
useful in drawing area boundaries  for a proposed redesignation, what
approaches are appropriate for balancing various objectives, and what
format may be desirable to use in answering the information requirements
set forth in Division I.

     Because the discussion here is primarily conceptual and necessarily
general, EPA encourages a State to discuss the specific circumstances  of
a proposed reclassification with their EPA-regional  office.
                                   14

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                   "A STATE  WANT^TO'RECLASSIFY?""


     Under the December 5, 1974 regulations,  all areas  of  all  States
were designated Class II on January 6,  1975.   The regulations  provide
for new source review of 18 source categories commencing construction
on or after June 1, 1975.  EPA will  perform the review  and enforce  the
Class II increment until a State requests delegation  for the new source
review.  Only after a State requests and receives delegation of  authority
for the new source review procedure will it be able to  receive an appro-
val for a reclassification proposal.  (Delegation guidelines are forth-
coming.)  Consideration of reclassification needs should begin as soon
as possible.  For any given area, a State has three alternatives:*

     1.  It may choose to have an area  remain a Class II.   This  would
     allow well controlled and managed  growth accommodating, for example,
     1,000 megawatt power plants.

     2.  It may choose to reclassify an area  to a Class I. As a conse-
     quence, almost no change  in air quality  could occur,  preserving
     the existing air quality  of the area.

     3.  It may choose to reclassify an area  to a Class III.   Intensive
     development could then occur, allowing a change  in air quality up
     to the national standards.

     There is no requirement that a State must consider reclassification.
As noted above, a State may choose the  alternative of maintaining the Class  II
designation.  However, there are likely to  be circumstances that will create
strong incentives for consideration of  a reclassification. The  existence of
     * A State may find that certain counties or comparable areas  are
already pervasively violating the national  standards and request that
EPA permit those areas to be exempt from any class designation.  Although
not in a designated class, these areas still  would be subject to all other
requirements of the regulations.  (For guidance on identifying and designating
these areas, see Appendix A.)
                                     15

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circumstances calling for a redesignation decision  can  be  identified  by
asking three basic categories of questions:

     1.  Where might the Class II increment  constrain growth and
     development?  Is this desirable?  What  are the alternatives?

     2.  Where might the Class II increment  be inadequate  to protect
     desired air quality?

     3.  What is known about air quality and about  development and
     preservation goals in the State?


         Where A Class II Increment Might Be Constraining


     There are three types of concerns that  may trigger a  State to  consider
redesignation from a Class II to a Class III.  They are:

     -- Projected new industrial development (within the 18 new source
        categories)
     — Projected new power plant development (included in the 18
        source categories)
     -- Resource area development


     As an example of the above concerns consider a proposed power  plant
that is identified by both the State and the public as  economically and
socially desirable.  Assume the power plant  would not receive a permit
because its emissions would violate the area's Class II increment.  Air
quality data shows that the addition of the  facility would not cause  a
violation of national standards and would not create an air quality problem
for a neighboring area or State.  The State  has carefully  explored  alter-
natives, such as alternative sites for the facility or  phasing out  or
retrofitting older existing facilities to make more "room" in the  increment
available to the new facility, and has even  assessed the various  impacts of
not building the facility at all.

     After considering all reasonable options, the  decision is that the
facility is necessary and desirable.  To accommodate the facility,  the
State decides to redesignate the area in which the  proposed plant is  to
be located to a Class III.

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     As diiuuier example, consider a State that has assessed general
growth and population statistics and has used industrial  growth projections
that indicate that a relatively clean air area is likely  to attract  intensi-
fied development.  Supported by extensive analysis of environmental,  economic,
social, national and regional factors, the State proposes that the identified
area be redesignated from a Class II to a Class III.   The State expects to
accommodate intensive growth in this sector and will  probably allow  air quality
to come close to or reach the national standards.  This area has already been
designated an Air Quality Maintenance Area (AQMA) because its 10-year growth
projections indicated the potential for future air quality standards  violations.
Therefore, the State is required to develop an Air Quality Maintenance Plan
(AQMP) which will ensure that despite the projected intensive growth, no
primary or secondary standards will be violated.

     The preceding hypothetical examples suggest trigger  situations  for re-
classification.  A State might select an area for a redesignation, and then,
if it is consistent with the results of the analysis, proceed to propose the
change.

           Where A Class II Increment Might .be Inadequate
        To Prevent Significant Deterioration of Air Quality


     There are certain types of land use areas where  more stringent  protection
than that provided by the Class II designation is or may  be desirable.  Examples
of these land use areas include:

     — Agricultural Areas
     -- Recreational Areas
     -- Areas of Rural Character
     -- National Parks and Forests
     — Pristine and Historic Areas
     — National Seashores and Coastal  Areas
     -- Other areas where substantial industrial growth is not desired

     If a State or Federal Land Manager or Indian governing body having authori-
ty over such areas decide that they require for their preservation a  limit of
practically no additional air pollution resulting from the 18 source  categories
identified as major emitters of sulfur oxides and particulate matter, reclassi-
fication from a Class II to a Class I may be necessary.  One trigger  to this
decision could be a proposed siting of one of the specified sources,  a
siting that would potentially conflict with accepted  air  quality and  related
land uses in the area.  However, waiting for a proposed source to request
review would not allow sufficient time to reclassify, and it would probably be
too late to legitimately prevent construction.  Therefore, advanced  planning
approaches are more desirable.
                              17

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     Conclusions

     As the foregoing discussion of trigger situations indicates, there
are several ways for a State to identify a need to reclassify.  A State
may simply track the projections for the 18 source categories.  The Office
of Business and Economic Research (OBERS) in the Department of Commerce
has projected future output and growth of all major industrial sources
throughout the nation.  Simply tracking the specified sources is an ad hoc
mechanism that would be activated only as a State faced permit decisions
for one of the 18 source categories.  Advanced planning has more advantages
making it the preferable approach.

     One planning approach is the establishment of an inventory of the
anticipated and desired land uses of areas in the State.  Based on the
inventory, a State could identify areas where the Class II could constrain
growth or be inadequate for preservation.  Air quality might be one of
many considerations in developing the land use inventory.

     Finally, a State may choose to execute an areawide plan integrating
air quality into its analysis and objectives.  Such a plan, although having
many advantages over more incremental approaches, would require large resource
expenditures.

     The advantages and disadvantages of these options are discussed
in the next section.
                                   18

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                  II.  APPROACHES TO RECLASSIFICATION


      The preceding section discussed the  problems  that  may  face  a  state
that retains the Class II designation promulgated nationwide by EPA.
Should a State face or anticipate one or more  of the problems discussed
in the preceding section, it may take any  one  of several  approaches to re-
classification.  Its options, however, fall  into two major categories:
(1) ad hoc reclassifications, done to respond  to specific source  or area
needs; and (2) reclassifications done on a comprehensive Statewide  basis.

     The options discussed in this section by  no means comprise an
exhaustive listing of the alternatives available to the  States.   The
discussion is provided only to suggest a few approaches  States might use-
fully consider.  This list of alternatives and the  discussion of  each are
neither exhaustive nor definitive.  EPA strongly encourages  States  to find
and carry out the approach to reclassification that best suits their individ-
ual needs.

     Approach #1:   Ad Hoc Redesignations

     Ad hoc approaches can be used where States desire specific sources to
be sited, generalized growth to occur which would not be permissible in a
Class II area, and preservation of particular  areas where no change of
existing air quality is desired.

     A.  Tracking the 18 source categories.

     If a State chooses this ad hoc approach,  it will consider reclassification
only in response to the actual or projected desire  of a  source to locate  in
an area where it would either be constrained by the Class II increment, or
significantly deteriorate air the State wishes to preserve  in its existing
state.  The State can wait for sources actually to  file  for  permits.   However,
this could delay construction of a desired source or sources until  the reclassification
proposal to a Class III is approved.  Therefore,  it would be preferable for the State to
anticipate the proposed siting of sources  by consulting  with the  affected
utilities or industries, and by utilizing  the  projections of future source
expansion by the Office of Business and Economic Research (OBERS),  or some
other projections it feels accurately predicts future source locations in  the
State.  Once the State faces or projects  the location of a  source in an area
the State could then request to reclassify, and going through the analysis
and balancing procedures described elsewhere in these guidelines.  Where a  State
wishes to preserve existing air quality, waiting for one of  the major industrial
sources to request a permit may be too late to protect  the  area with a re-
designation to a Class I.

     B.  Inventory of "need" areas.

     The second of the ad hoc approaches  the State  may  take  is to make an
inventory of areas within the State, reclassifying  them  where analysis  shows
there is an immediate "need" and retaining the Class II  in  all other cases.

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There would be at least two kinds of areas the State would wish to inventory
and consider reclassifying.  First are those areas targeted for the growth
potential of a Class III.   An example of such an area is one where there is
very clean air and where further growth is desired than that permitted by the
Class II increment.  Second would be those areas already identified under
other laws and programs as having special  values related to the clean air
resource that the State wishes to preserve.  Obvious examples are national
and State parks and recreational or historic areas.  These would be candidates
for the special protection of Class I.

       Advantages and Disadvantages of Ad Hoc Redesignations

     The advantages of the tracking or sources approach revolve around optimal short-
term use of State financial and labor resources.  This approach ensures that a
State proposes reelassification only where it really needs to, only where and
when it faces an actual constraint to desired growth or encroachment on clean
air quality the State wishes to preserve.  Resources can thus be concentrated
on highest need areas.  States that do not expect any great number of sources --
or consequent reclassification decisions— may consider this approach to be
the most conservative of State fiscal resources.

     However, this approach has drawbacks inherent in its ad hoc nature.
Reclassification cannot be done without a reclassification analysis and a
public hearing.  This process takes time, and in the end the analysis may
convince the State and/or public that the reclassification is not the best use
of the clean air resource.  This means that (if a State takes the ad hoc approach
to reclassification) no one   not the State, the local jurisdictions, nor the
potential sources themselves-can be certain where new sources may or may not
locate  or what delays they may face.

     Another disadvantage of this approach is that there is no over-all
balancing of the number and extent of various Class areas within the State.
A State may eventually find itself with more Class III areas than it really
needs to accommodate desired growth or with some Class I areas the State will
later wish to reclassify in order to accommodate such growth.

     The advantages of identifying "need" areas also center on the best use
of State financial and labor resources.  The State can focus its resources on
examining those areas most likely to be unduly restricted by Class II or  to
need the protection of Class I.

     In the case of areas that can easily be identified as potential Class Ills,
this approach can focus State resources on removing the Class II restraints in
areas where growth is predicted and where its associated air quality deterioration
will not be considered significant.  This will provide a measure of certainty to
sources and governments, the impact on non-significant deterioration by fuel-
switching, and avoid delays in beginning the reclassification analysis.

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     This approach also shares  some disadvantages  with the tracking  of
sources method.  While most immediate need  areas will  probably be inventoried
and addressed, sources may well  apply to  locate  in  areas not inventoried.
Where this happens, the State will  again be faced  with the same problems  of
delay and uncertainty.  The possibility  also exists that some areas  that
should be considered for redesignation will  be  missed  by the inventory and
that special  clean air values may be compromised or Class II constraints
imposed on areas where they are  inappropriate.

Approach #2:   Comprehensive Approach

     The State may choose to take the approach  of  establishing areas and
proposing reclassifications on  a Statewide  basis.   Using this approach,
the State would not classify areas on a  reactive basis, but in a compre-
hensive fashion.

     The program to prevent significant  air quality deterioration is essentially
one of emissions allocation within each  Class designation.  A limited amount
of additional emissions (the increment)  are available  to areas and to sources.
It is likely that new sources will  compete  for  these allowable emissions
increases within each Class area, and that  the  State will have a decision  as to
how the emissions are allocated.  States may decide that the most advantageous
way to make the allocation is on a Statewide basis.

     The advantages of this approach are many.  The first is equity.  Classifi-
cations, rather than being done  on a case-by-case  basis, will be done for all
areas against standard criteria.  This will  mean consistency in the  decision
making process.  States may therefore feel  that evaluating the various areas
and sources competing for allowable emissions on this  standardized basis  is
the fairest treatment for all concerned. The approach also guarantees attention
to all areas, since all will be  evaluated as part  of the same process.

     A second advantage is that  a comprehensive approach can avoid certain
technical problems.  Area boundaries, for example, may be drawn on the most
logical and technically defensible basis.  When boundaires are drawn for  areas
proposed on an ad hoc basis, they may not correspond to logical meteorological
or planning boundaries.  In fact, some areas may be defined simply by being
left out of other areas.  Determining all boundaries at one time should pre-
vent this problem.

     Another problem that can be dealt with or  avoided under this approach
is the transport of pollutants  from area to area,  either within one  State
or between States.  In a Statewide classification  process, the State may
consciously decide to allocate  the emissions of a  source or sources  over  more
than one area.  This would not  eliminate the transport problem, but  would
allow affected areas to plan for this eventuality  and  make appropriate adjust-
ments.  Transport between States must be addressed, and procedures (e.g.,
inter-State agreements) set up  to deal with it.

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     Another advantage is that the comprehensive classification action
would be more visible, a better focus for public and governmental  participation
than a series of smaller ad hoc actions.   Local  areas,  State agencies,
potential sources, and various concerned  groups  and individuals could more
easily participate in the full process and be made aware of its outcome
and probable impacts when it is more visible.

     A final advantage of the Statewide approach is that the State may
utilize a wider range of knowledge and options than would be possible in
a case-by-case approach.  For example, for any particular proposed reclas-
sification, the reclassification analysis will reveal whether the  services
infrastructure (of water, power, transportation, etc.)  needed to support
the level of growth allowed by the proposed class is (or will be)  available,
if it is in fact planned and funded or fundable.  If it is not, a  State
using the case-by-case approach may simply decide to drop the proposal.
However, if this knowledge surfaces in a  comprehensive reclassification
process, the State may look to other areas where the infrastructure is
available and choose to allocate more emissions  and growth there,  other
considerations permitting.  This greater  range of knowledge and options
should increase the State's flexibility in carrying out the program and
lessen any adverse impact of the regulations.

     While the advantages of this option  are many, so are its drawbacks.
The first and perhaps most serious of these is the resource question.  The
State simply may not have the resources necessary to perform Statewide
classifications where there is a critical need.   One response to this problem
may be a phase approach, with the State reclassifying critical areas first
and other areas in stages according to a  set timetable.  However,  for some
States the long-term benefits of the comprehensive approach may be outweighed
by its short-term initial costs.  Some States may wish not to make the resource
investment of a comprehensive approach because they expect few sources and
few reclassification decisions.  For such States, an ad hoc approach may be
all that is necessary to carry out the full intent of the regulations.  Other
States may feel that the reclassification analysis, with its consideration of
alternative actions and boundaries, is sufficient to deal with the problems of
pollutant transport, equitable emissions allocation, and adequate attention
to all areas, without further resource investment.

     EPA recognizes that a Statewide reclassification process
will affect land use through emissions allocation and that land use decisions
have traditionally been the province of local governments.  However, the
Agency would point out that the State will be making decisions whether it
reclassifies or not, simply by either retaining Class II or by reclassifying
on an ad hoc basis.  Also, EPA points out that the non-significant deteriora-
tion regulations do not call for decision-making on the basis of air quality
alone but specifically require consideration of social, economic,  national
and other environmental factors in determining what is "significant."
Further, EPA encourages States to involve local  governments directly in
the decision-making.

     Finally, a State may find that is growth and preservation objectives
change over time and that it wishes to reclassify many areas classified
according to former objectives.  Should this occur, the comprehensive
coverage of Approach #2 may mean more areas  to reclassify than an ad hoc
approach could have created.

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               III. DETERMINATION OF BOUNDARIES AND  SIZE
                           OF RECLASSIFICATION AREA


     When selecting a target area for reelassification, there are
several important parameters that should  be considered.  Consideration
of these parameters is particularly critical  when distinct and function-
ally competing land use areas, such as a  developing  resource area and a
pristine recreation area, are so situated that there may be pollutant
transport from one area to another.  (See U.S. Federal  Register,
December 5, 1975, Part 52, page 42512, column 3, Appendix E)

     There are three major categories of  parameters  to  consider in
determining the size and boundaries of an area for reclassification.
They are:

     1.  Air Quality parameters, including topographical  and meteoro-
logical characteristics;
     2.  Political parameters, including  regional, county, and local
government jurisdictions and multi-and single-purpose planning agency
jurisdictions; and
     3.  Program Planning parameters, relating wherever possible  the
various regulatory and planning program objectives of Federal, State,
regional, and local governments being implemented in an area.

     Air Quality Parameters

     Air quality characteristics are among the most  critical parameters
for defining an appropriate size for an area  to be considered for redesig-
nation.  Calculations have shown that because of the small air quality
increments specified for Class I areas, these levels can be violated
by a source located many miles inside an  adjacent Class II or Class  III
area.  For example, a power plant which just  meets the  Class II  increment
for S02 could under some rare conditions  violate the Class I increment
for S02 of an area 60 miles away.  Under  the  regulations promulgated,
a new source could not be allowed to construct if it would violate an
air quality increment either in the area  where it is to be located or in
any neighboring area outside the State.  Therefore,  wherever a Class I
area adjoins a Class II or III area, the  potential growth restrictions  —
especially for power plant development -- extend well beyond the  Class  I
boundaries into the adjacent areas.  A similar situation exists,  to a
greater or lesser degree, wherever areas  of different classification are
adjacent.  Therefore, the area with the less  restrictive classification
should include an additional area at its periphery where it is clearly.
recognized that development will be somewhat.restricted because of the
adjacent "cleaner" area.  As a result, a  Class I redes-lgnation could be
fairly limited in size, yet the adjoining Class II or Class III areas
would need to cover a substantial area in order to fully utilize  the
Class II or III increment.  Again it should be emphasized that the Class II
or III increment could be fully utilized  toward the  center of the area,
                                      23

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while at the periphery allowable deterioration would be dictated by the
adjoining Class I area rather than the Class II or III increment.

     The distance needed between a large source and a Class I area to protect
the Class I area is more dependent on meteorological conditions than the
size of the source.  Where very long pollutant travel times from source to
receptor are involved, the assumptions of wind direction and atmospheric
stability are critical.  At some point it can be assumed that a receptor
will be virtually unaffected by a source regardless of the source strength,
since the critical meteorological conditions would not be expected to per-
sist long enough to move the pollutants from source to receptor for any
significant period of time.  This distance is, of course, dependent on local
meteorological conditions, terrain, and the operating characteristics of
the source.

     Using an airshed to define an area's size and boundaries for a Class II  or
III would, as a rule, be a reasonable planning device.  Depending on the
meteorologicial conditions and size of the airshed, with some sub-basin
planning an airshed that is largely Class II or III might be able to
accommodate a Class I "pocket."  For example, an airshed could have areas
with high pollutant levels resulting from a concentration of sources in
those areas.  At the same time, upwind there could be clean air areas,
where there are no sources.  Providing that there is no pollution transport
from the dirty areas to the clean areas, a clean air area could be pre-
served by preventing new sources from locating within it.*  The potential
for such planning will vary greatly among airsheds, as will their individual
meteorological and topographical characteristics.  There will be some
circumstances where the airshed could not accommodate both a Class I and
Class II or III.  In that situation, a choice of just one designation
would have to be made.  The dominant or most "valued" land use characteristic
in the airshed would probably prevail.

     Political Parameters

     Airsheds are not necessarily identical  with local, county, or regional
political jurisdictions or with the land area jurisdiction of multi- or
single- purpose regulatory or planning agencies.  An example of the potential
multi-jurisdictional effects of single stationary sources is shown in Figure  II,
a pollutant concentration map developed in a study done by the Bureau of
Domestic Commerce, U.S. Department of Commerce.   In this study, the Department


* This probably would not be a common airshed.
      U.S. Department of Commerce, Bureau of Domestic Commerce,
Implications of Air Non-Degradation Policies on Clean Air Regions:
A Case Study of the Dallas - Ft. Worth AQCR (215), May 1974, COM-74-11438.
                                       24

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COMAHCHE

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used OBER projections to predict  future pollutant  sources and modeling

techniques to project over effected area  the pollutant  levels that

would result.

Wherever possible, attempts should be made to reconcile air quality

parameters with governmental and  agency political jurisdictions.   However,

boundary consistency will not always be possible.  Because of the  long

distance pollutant transport problem
                                     <3A of
 one  area's air quality impact on another, a larger area size for Class
 II and  III will minimize the likelihood of intrastate conflicts.
 Decisions to define an area for reclassification should consider both
 air  quality factors and the relationship of political jurisdictions to
 them.

      Program Planning Parameters

      The prevention of signficiant deterioration of air quality is just
 one  of  many programs related to land use with which States or local
 governments must cope.  There are, for example, water quality programs
 such as EPA's  "208" Areawide Waste Treatment Management, EPA's land use
 related Air Quality Maintenance program, and HUD's 701 Comprehensive
 Planning Assistance program. As the data requirements section of these
 guidelines suggests, there should be coordination of planning among
 these programs and consideration of the various program objectives.  If
 feasible and not strongly inconsistent with air quality goals, boun-
 daries  and sizes of  classification  areas should be coordinated with the
 geographic areas of as many of the land use related planning programs as
 possible.  To  accomplish boundary coordination, early consultation would
 be beneficial  between the State and the affected agencies.

      Conclusions

      In most cases,  larger area size reduces the geographical potential
 for  intra-and  inter-State conflict. A larger area size gives a State the
 flexibility to consider  the use of alternative facility siting to alle-
 viate a potential  long distance intrusion of pollution from one class
 area to another.

      In most cases,  airsheds  and  their sub-basins provide a useful thres-
 hold planning  area.   It  is possible, of course, that there will be
 exceptions. For  purposes of implementation, it would be beneficial to
 consider  not only  air quality, but also political jurisdictions and
 program coordination.
                                      26

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           IV.   BALANCING ENVIRONMENTAL,  ECONOMIC,  SOCIAL
                 NATIONAL, AND REGIONAL CONSIDERATIONS


     Once the basic data and information have been  collected for the
environmental, economic, social, national,  and regional  analysis,
EPA expects that a State would use these data in an attempt to balance
State development and preservation objectives and relevant public interests.
The process of assigning priorities to and  balancing the various interests
is ultimately achieved by informed value judgements expressed through the
political process.  Apart from reconciliation in the political arena of
the various valuations of individual  actors,  no one satisfactory methodology
exists for making these choices.

     Many scholars and public policy decision makers have addressed the
Question of balancing and reconciling economic and  environmental interests.
(See Appendix B for reference list.)   Some  have attempted to develop
methodologies that quantitatively measure environmental  values in order
to use the assigned numerical values in cost-benefit analyses.  Other
scholars, addressing the feasibility of a cost-benefit approach for a
public good like environmental preservation,  express serious reservations
about the possibility—or the desirability—of quantifying environmental
values.

     A clean, healthful environment is a public good, one benefiting society
as a whole.  As a public good, it is not priced in  the marketplace.  While
there is general recognition today that the environment is a valuable resource,
how valuable it is in a quantitative, objective sense is not really appreciated.
These difficulties, in attempting to measure the benefits of clean air and
water frequently contribute to misvaluation of the  environment.  Misvaluation can have
serious consequences.  Decisions based on insufficient valuation of the environ-
ment, for example, may be irreversible.  Thus a. valuable resource may be lost
to future generations.

     There has been some success in evaluating the  economic benefits and
costs of cleaning up the air to achieve the National Ambient Air Quality
Standards:  one can measure damage to property values and vegetation at
levels of pollution above primary and secondary standards; loss of life,
health, and employment resulting from emissions of sulfur oxides, particulate
matter, carbon monoxide and other pollutants can be documented.  However,
where air quality is cleaner than the primary and secondary standards and
where there is no certifiable damage to health as a result of air pollution,
it becomes increasingly difficult and less  desirable to assign a market value.
That does not mean, however, that there is  not a value in maintaining some
air cleaner than the standards.  We know that there are some hard-to-quantify
effects that occur below the levels of the national air quality standards.
Furthermore, when air quality is allowed to deteriorate up to the standards,
the costs of returning to clean air increase dramatically.  Although there
is no perfect methodology for assigning quantitative values to environmental
                                     27

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• objectives so that they  can  be  systematically  weighed  and balanced with

 economic objectives, the environmental  objectives  can  be qualitatively

 considered.  Economists  usually agree  that  all  relevant factor? (espec-

 ially non-market factors like social and  environmental  objectives) can

 not be included in quantitative cost-benefit analyses. .  &;w, ^yet11
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                    V.  SUGGESTED FORMAT FOR RECLASSIFICATION
                          FROM CLASS II  TO  CLASS  III
Introduction

     The format below is similar to that of an Environmental  Impact Statement
(EIS) prepared under the National Environmental  Policy Act (NEPA).  It includes
a gathering of information to describe the projected environmental, economic,
and social effects, consideration of national and regional interests, con-
sideration of alternatives to the proposed reclassification,  and the reasons
for the proposal.  This format should amply address all of the information
requirements set forth in Division I, Section I.

     Because there is a risk of significant environmental  harm associated
with a decision to reclassify a relatively clean area from a  Class II to
a Class III, and because the rapid growth and uses of land associated with
the Class III reclassification choice could cause irreversible or very
costly to "repair" environmental effects, the analysis required to change
from a Class II to Class III would be more extensive than the analysis
required to change from a Class II to a Class I.  To reclassify from
a Class II to a Class I, the format could be substantially abridged.  Deci-
sions to redesignate clean areas to a Class III  cannot be made cavalierly
without serious consideration of the impacts.  Therefore,  EPA strongly
encourages States, when redesignating to a Class III, to use  the compre-
hensive format below in considering the social,  environmental and economic
impacts.

     The level of detail necessary for addressing each item can vary
according to individual capabilities and circumstances.  In some cases,
for example, several of the items on the list could be addressed in a few
sentences.  EPA recognizes that at first blush the.format suggested below
may seem to place a heavy burden-on resources.  However, .as.mentioned
earlier, a State  does not have to bear the burden alone.   Local and
regional governments and agencies can,contribute to the analysis, as well
as the major industries that would., gain from a reclassification.  It is
useful to restate that what EPA expects is that the State .will make a
good faith effort .in ,using available data to. surface the fullest informa-
tion possible raising the pertinent issues for consideration of the reclassi-
fication proposal.
                                       29

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i.   Summary and relevant facts

    A.  Responsible agency:   The State should designate an  agency as  the
lead (i.e., responsible) agency for the proposed reelassification, and
provide its name, address, function, (e.g.,  air pollution control,
economic development, planning) and a contact person in the agency who
could be reached for questions.

     B.  Explanation of program:  A brief explanation of the function
and operation of the program to prevent signficant deterioration of air
quality, including a description of the new  source review,  should be
provided.

     C.  Purpose of document:  The purpose of the analysis  should be
stated to provide background for the proposal and a focus for public
participation.

     D.  Explanation of public participation:  The procedure and time-
table for written comments,  as well as the time, date, and  place of the
public hearing should be given.

II.  Description of proposed action

     A.  Reclassification from Class II to Class III;  The  section should
explain  (in terms comprehensible to the layperson) the difference between
the increment allowed under the present class and under the proposed  class.
It should particularly make clear the difference in the level of develop-
ment that is permitted under the present class and that which would be
permitted under the proposed class.

     B.  Proposed boundaries;  Both a verbal description and a map should
be included.

     C.  Timetable for State actions:  The timetable should specify
periods for circulating the analysis document, holding the  public hearing,
submitting the proposal to EPA, and any other significant actions related
to the proposal.

III.  Description of the proposed area:  An inventory should be made of
the natural and human environment of the proposed area.  It should include
the area's natural resources and economic characteristics,  any planning
and mandated program requirements to which it is subject, and projections
of its future population and economic growth.
                                     30

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     A.  General description:   This  would  encompass  location  within
the State, total area in relation to the State's  total  area,  neighboring
areas, and the dominant land uses and character of the  area  (i.e., urban,
rural, developing, a combination of  these).

     B.  Air resources:  The State should  present at least the
following items.

     1.  From the State Implementation Plan  (SIP) for meeting and
maintaining the national air quality standards or other sources:

      (a)  The emissions inventory being used by  the State to
calculate or estimate the 1974 air quality inventory baseline.  The
location of point and area sources in the  proposed area should be
shown on a map.

      (b)  Air quality data, if any, being used by the  State  in calcu-
lating or estimating the 1974 air quality  baseline.   These data should
be presented in a manner comprehensive to  the layperson, and  the locations
of the samplers reporting the data should  be shown on a map.

      (c)  Control strategies for SOX and  TSP applicable to  the area
and air quality projections and emissions  reductions expected from these
strategies in future years, including projections based on the growth
assumptions in the SIP.  (These regulations  should be explained.) The  level
of mandatory fuel-switching, if any, expected in  the proposed area and  its
effects on air quality should be discussed.

     2.  Meteorology:  an explanation, comprehensible to the  layperson,
of the proposed area's meteorological conditions, including  average
wind speeds and directions, inversion conditions, and other  relevant
climatological data.  The potential  or actual transport of pollutants
into the proposed area from other areas and/or from the proposed area
to others should be discussed.

     C.  Water resources:  The State should  examine at  least the following
i terns.

     1.  Water quality standards, proposed or approved, and  any constraint
they may present (e.g., consider whether the effluent from a proposed  source
among the 18 source categories would be such that it might violate appli-
cable water quality standards in the proposed area).

     2.  Pristine waters the State may wish  to preserve  and any constraint
they may present.
                                     31

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     3.  Water supply and any constraint it may present (e.g., consider
whether sufficient water is available now and will  continue to be available
in the future to supply the needs of sources among  the 18 categories that
may locate in the area (e.g., cooling water or water for process use) as
well as the population and industrial or commercial  growth the sources
may attract.

     4.  Flood control and its constraints (e.g., consider the
physical capability of flood control plains to bear various levels of
development as well as any legal  restrictions on development in flood
plains).

     5.  "208" Areawide Waste Treatment Management  Plans (e.g., area classifi-
cations and the land uses they permit should be examined for consistency
with these plans).

     D.  Land resources:  Classifications can preserve or lead to the
controlled, orderly development of various land resources.  The State
should consider at least the following items:

     1.  Geology and geography of the proposed area:  The ability of the
land to bear various uses and levels of development should be assessed.
Any special geological features of the area (e.g.,  canyons, mountains,
deserts) that possess special values or present special problems shot/Id
be discussed.

     2.  Agricultural lands:  The quality of the land currently under
cultivation or planned for such use, its current and projected pro-
ductivity, and its contribution to the State's and  the proposed area's
economics and land use objectives should be discussed.

     3.  Resource areas:  These include any mineral  deposits (e.g., oil
shale, coal, tar sands) and potential sources of hydroelectric or geothermal
power within the proposed area.  Already committed  development of these
resources should be described, as should the level  of development that
could be allowed under both the present and the proposed classifications.

     4.  Parks and wilderness areas, designated or  proposed:  The analysis
should discuss the special values and constraints imposed by national or
state parks, forests, deserts, wilderness areas, and wild life refuges.
These areas should be indicated on a map.

     E.  Historical and archaeologically important  areas:  These should
be described, shown on a map, and their special values and limitations
discussed.  Plans to preserve and/or explore the areas should be described.
                                     32

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     i7-  Present lend uses:   A description  of  the  uses  and  activities
currently supported by the proposed  area's  land  should  be provided.  Maps,
charts, and other visual  aids should be  used to  make  the presentation  clear
to the layperson.  The discussion  should present the  land uses  by type
(e.g., residential, light industry,  agricultural,  open  or recreational
space) and describe the extent of  each type of use in the proposed area.

     G.  Planning and mandated programs: For  each of the programs listed
below in this subsection, the State  should  explain the  program  in lay
language; show, by maps,  tables, and similar aids, the  location and  extent
of the planning or program areas;  and specify  the  constraints or opportunities
posed by the programs in  the proposed area. Besides  the State  and local
Federally funded programs, listed,  the..State might  well-wish to  discuss State,
regional, or local programs.. . An inventory  map..showing .all  Federal facili-
ties, Federal .lands, and  Indian reservations in-the proposed area  should
be included.  The programs that should be discussed include:

     1.  Air Quality Maintenance Areas
     2.  Water resource development  (e.g.,  by  the  Bureau of Reclamation
         or the U.S. Army Corps of Engineers)
     3.  U.S. Department  of Housing  and  Urban  Development "701" Compre-
         hensive Planning and Housing Element
     4.  U.S. Department  of Transportation  actions
     5.  U.S. Department  of Agriculture  planning (including Forest
         Service planning, Rural Development Act planning)
     6.  Federal Energy Administration energy  supply  activities.


An inventory map showing  all Federal facilities, Federal lands, and  Indian
reservations in the proposed area  should be included.

     H.  Economic and social profile: The  profile should describe the
types and/or levels of business, tourism, and  industrial and commercial
activity in the proposed area. Such data as employment levels, income
groupings, housing patterns, urban and non-urban density patterns, and
business and industrial investment trends should be included and the
relationship of the proposed area's  economy to the State's  discussed.

     I.  Growth projections for the  proposed area:

         1.  Population projections  compiled for SIPs,  or general State
or local planning for transportation control,  wastewater control, or
any other State or Federal planning  purposes thought  relevant  can be used.
If any data differ, all should be  presented.

         2.  Infrastructure availability should  be projected for growth
supporting services like transportation  (including roads and highways,

railroads and port  facilities).  Water  power, sewage disposal  and waste-

water disposition.  The  analysis should discuss current load on these

services and the  availability  of funds  to  pay for their future provision.

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         j.  inoustria'l expansion projections iUKe the urnce  OT  Dusmess
and Economic Research (OBERS) projections of major industrial growth)  should
be presented with special attention to sources expected to  locate  within  the
proposed area.

IV.  Alternatives to the proposed reclassification

     A.  No action alternative (i.e., keeping the area's present classification)

The State should discuss means of dealing with the special  values  (if  appli-
cable) it wishes tc protect within the Class III and the development it
wishes to permit should the proposed area's present classification not be
changed.  At a minimum, the State should consider the following:

     1.  Alternative siting of proposed sources to better distribute
     emissions or take advantage of favorable meteorological  conditions.
     2.  Retrofitting or otherwise further controlling present  sources to
     reduce their emissions, thereby creating more "room" in  the increment
     for new sources.
     3.  Controlling the influx, if any, of pollutants from other  areas to
     create more "room" in the increment.  This might be done by using retro-
     fit, alternative siting, or buffer zones in adjoining areas.

     B.  Redraw the boundaries of the proposed area:  Boundaries could be
redrawn to take advantage of favorable meteorology, terrain,  or other siting
conditions; to create larger buffer zones in adjoining areas; or to shift
a particular source from an area that cannot accommodate its emissions
to one that could.

     C.  Change the timinc; of the proposed reel assifi cation;   The  State may
wish to delay the recTassification of some areas pending the outcome of
studies, the acquisition of further data, or the development of improved
technology (primary or retrofit).

V.  Impact of the proposed reelassification

     The impact of the proposed reclassification upon the natural  and
social environment can only be predicted and evaluated in light of the
information possessed by the State at the time of the proposal.  This means
that the depth of impact analysis the State can perform will vary according
to the approach to reclassification the State employs.

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       A-  s.Ln9J±_s_°H^£§:-   1T  ^ e reciassification  is  triggered  ny  the  actual
application of a sinc;e source to construct,  the  State may  be  able  to
predict with cer-uainT.y only tne effects  of  that single source  upon  the
                                                          •
                '  '••  I fit-  iUV.1  UiU il  ll  IX i (-, lriS',1! ir:.l    -i.ij. '.VI

                 IcM^C  Ute  fOtiOWilhJ COIIi lutTa L
      1.  Natural environment:  The impacts of the proposed source
      on the air, water, land values, land use, historical or achaeological
      values, and planning programs in the proposed area should be projected
      and evaluated.  These evaluations may at times be highly subjective
      and resistant to quantification.  It is difficult, for example, to
      evaluate air quality impacts, since by definition what is involved
      are pollutant levels below those at which public health effects or
      property damage can be proven.  Also, the effect of any one source
      upon the full matrix of resources and values may be small.  The State
      should, of course, consider the effects of any industrial, commercial,
      or other growth that might reasonably be induced by the construction
      and operation of the proposed source.  It must examine any effects
      of the proposal on other areas.  (See subsection IX in this section.)

      2.  Economic environment:  Both a micro and a macro analysis of the
      costs and benefits involved in source construction and operation should
      be done.  The micro analysis should include the costs to the source of
      the program (e.g., of alternate siting or required control technology).
      The macro analysis should examine the effects of the proposed source
      on the State's economy, on the local economy (e.g., employment and tax
      base effects) .   It should  also  examine any  costs of the
      proposed source not fully borne by the source or the proposed area
      (e.g., pollutants  transported from the source to another area using
      up part of that area's Increment; see subsection IX).

      B.  Tracking of sources or areas:  If the State determines a need to
  reclassify an area from OBERS projections or from an inventory of special
  need areas, a fuller analysis may be possible, since the State may possess
  more data.  In this case, the State should present and evaluate the effects
  of  projected sources it expects on the natural,  social, and economic environ-
  ment of the proposed area in the same manner as  for a single source.  All
  foreseen effects should be discussed, and the State should clearly indicate
  how certain or uncertain, complete or incomplete, it judges its projections
  or  inventories to be.

      C.  Statewide classification:  This approach will allow the most
  complete impact analysis, since the State will be able to predict at least
  some land uses that will or will not occur in the proposed area and will  be
  able to predict the future character of an area  without waiting for a source
  or  sources to propose  locating  there.  Since the State will possess more  data,
  it  will be better able  to assess impacts of reciassification on the natural,
  social, and economic environment.  The State should prepare the impact
  analysis for the sources and effects it anticipates in the same manner
  described  in Subsection A above.
                                     35

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' a •   ^«-'ji^>-' u.  v.naiiije i I uill lUtCfclll, IdllCI USe

     The reclassification decision should reflect the State's desire for
change from or continuation of present uses of land and the clean air
resource in the proposed area.  In this section of the analysis, the degree
and nature of that change or continuance should be explained, and should
be evaluated in terms of local, regional, State, and national objectives.
State/local/regional objectives might consist of (1) a desire to preserve
the rural, recreational, agricultural, or wilderness character and use of
some areas; (2) a desire to ensure orderly growth in areas targeted for
growth; and (3) a desire to place some areas in a protected state until
decisions can be made about their future use.  In applying whatever are
the State/local/regional objectives, the State should make those objectives
and their application to the proposed area explicit.

VII.  Consideration of national concerns

     The States must, in their-deliberations, take national
concerns into account, including but net.limited to:  1) the
critical food supply shortage, and need for food production; 2) the
preservation of sufficient recreational, wilderness, and open space
areas to accommodate the present and future needs of an expanding
population; and 3) the critical energy supply situation and the need
to develop energy resources.   In weighing these national concerns, as
in weighing different and sometimes competing State/regional/local
interests, it is the role of the States to balance varying needs and
to decide which factors are most critical in each area.  However,
where a State, Federal Land Manager, or Indian governing body protests
a redesignation to the State proposing the redesignation and to the
Administrator, the Administrator will take an expanded role  in
determining the balance of the competing interests.

VIII.   Irreversible effects of the proposed reclassification

     The express purpose of this program is protection of the clean air
resource through a searching and thorough determination of the relative
significance of increasing increments in specific areas.  One of the central
elements in making this determination is the question of irreversibility;
that is, which options does the State foreclose by a reclassification,
and which does it keep open?   The irreversibility of a deterioration
decision may be a key to its significance.  For this reason, the States
should  pay special attention to the question.   (This  item may  be
combined with  V -  Impact of the proposed reclassification.)
                                   36

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     In this section the State  should  discuss any special  values  connected '
with the clean air resource that may be  lost by the  reelassification, any
irreversible commitment of the  resource, and any uses  of the resource that
are permanently precluded by the effects of the proposed reclassification.
While the State may decide that no such  special  values or uses exist in the
proposed area and that further  industrial  and economic growth is  the best use
of the proposed area's air resource, full  examination  and full  disclosure of
the irreversible effects, both  short and long-term,  of the proposed reclas-
sification should be made.

IX.  Effects on adjacent areas

     This section should summarize the findings of the analysis done in
subsections III.A.,B.(2), and V.A.(l)  and (2) and assess the overall likely
impact on adjacent areas (e.g.,  neighboring. States and  Federal and Indian
lands).  If a harmful impact is indicated, there should also be an analysis
indicating what would be foregone economically, socially, or nationally if
there were no redesignation .

X.  Conclusion

     This section should briefly summarize the action  the State is taking
and the technical and policy justifications for determining that  the proposed
reclassification accurately represents what is "significant" deterioration
in the proposed area.  The discussion  should include a summary of the
advantages and disadvantages associated with the reclassification.

XI.  Public comments

     A summary of public comments on the proposed action and the  State's reply
to those comments should be presented  here.  (See the  procedures  outlined in
the Intergovernmental Cooperation Section of these guidelines.)
                                     37

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                             APPENDIX A
       GUIDELINES FOR DETERMINING WHETHER AN AREA PERVASIVELY
           EXCEEDS NATIONAL AMBIENT AIR QUALITY STANDARDS
Introduction
     EPA's final regulations for preventing significant deterioration
of air quality published on December 5, 1974 (39 FR 42510) include a
provision exempting all counties or other functionally equivalent areas
that pervasively exceed any national ambient air quality standards for
sulfur dioxide or total suspended particulates from the area designation
requirements of paragraph (c).  This provision makes it clear that no
air quality deterioration increments are applicable in counties  which
pervasively exceeded the national standards for S02 or TSP during 1974.
However, the regulations still require that major sources located in
such areas be reviewed to determine whether significant deterioration
increments in adjacent areas would be violated and to assure that Best
Available Control Technology (i.e., NSPS where such standards have been
set) will be applied.  These guidelines provide criteria for determining
whether an area pervasively exceeded the national standards for  SOg or
TSP during 1974.
General
     Demonstration of whether air quality pervasively exceeded the national
standards may be based on measured air quality data or atmospheric simula-
tion modeling or both, but in any case should be representative  of 1974
air quality.  Exemption from the area classification requirements may  be
granted for either TSP or S02 or both.  Since the baseline for determining
whether significant deterioration has occurred is based on 1974 air quality,
an area that is exempt originally remains exempt, even if air quality  is

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ments applicable in Class I or II areas.  Other mechanisms in the imple-
mentation plans (i.e., new source review and air quality maintenance plans)
would ensure that air quality would not increase above the national stand-
ards.
     Although the NSD regulations require states to provide the Administra-
tor a list of areas to be exempted by June 1, 1975, current plans are to
amend  the regulation to remove the above date restriction.  Therefore, it
may be assumed that requests for exemptions will be accepted at any time.
     It should be noted that exempting a county does not necessarily
mean that the county will not attain standards by the prescribed attainment
date or that an SIP revision is needed.  The area classification exemption
is always based on 1974 air quality, whereas the attainment dates are
generally July 1975 and in some cases may extend to July 1977.  In most
cases, the control strategy will not be fully implemented until very close
to the attainiment date or even later (where sources have been issued
enforcement orders extending beyond the attainment date).
Definition of Pervasively Exceeds Standard
     The significant deterioration regulations, while including provision
for exempting areas which pervasively exceed the national standards for
S02 or TSP, did not specifically define the term "pervasively exceed."
Therefore, the following definition is provided and will be used to deter-
mine if a county qualifies for an exemption from the area designation
provisions of the  regulations.
                                    ii
                                   —,.^.r, _,...., ...» ^,. , JJg<, „ ^—i,  i ... ... .j, j, ^i,    jin  i^jtm.

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     "The ambient air quality in 75% or more of the county or other
      functionally equivalent area was above any national standard
      for sulfur dioxide or total suspended particulates, or both
      during 1974."

     For clarification, the following table provides the controlling  '

standards to which the above definition should be applied as a test

for violations.
                                 TSP
     Annual Geometric Mean  ....... . .....  75 yg/m3
     Second-highest 24-hour concentration ...... 150 yg/m3

                                 S0_2
                                                               2
     Annual Arithmetic Mean ....... ......  80 vg/m3p
     Second-highest 24-hour concentration ...... 365 yg/m3
     Second-highest 3-hour concentration  ...... 1300
     Violation of any standard listed above for a pollutant constitutes

a violation for that pollutant.  For example, if. the annual geometric

mean of 75 yg/m3 for TSP is exceeded in 50% of the area and the second

highest concentration exceeds 150 yg/m3 in an additional 25% of the area,

that area qualifies for an exemption with respect to TSP.

Areas Which May Be Exempted

     The regulations state that any county or functionally equivalent

area (i.e., parishes, townships, etc.) which qualifies may be exempted.
                        •s

Consideration was given to using other designations for the area,  such
                                   i
as an AQCR.  However, it was felt that the "county" designation would be

the most appropriate size area from a management standpoint, since AQCR's

tend to be too large to meet the 75% criterion, while an area smaller than

the "county" could result in too many small areas to be manageable.
 This is the primary standard; there is no annual secondary standard for
TSP.  The 60 yg/m3 is a guideline.
o
 These are primary standards.  The originally promulgated secondary standards
for these time periods were revoked on September 14, 1973, as a result of a
court challenge.

                                     iii

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Therefore, as a general rule, the exemption shall  apply to all  the
area within the boundaries of a county.   However,  it is recognized  that
some counties are very large and significant differences exist  in the
air quality in different parts of the county.   Therefore,  approval  may
be granted to exempt a well-defined contiguous  sub-area of a  large
county, provided reasonable justification for such action is  provided by
the state.  Also, exemptions may be granted to  independent cities when
they are not considered a portion of the county or functionally equivalent
area.  A demonstration shall be made for each  county to be exempted.
Criteria for Demonstrating County Pervasively  Exceeds Standards
     Measured air quality data or atmospheric  simulation modeling may be
used either in combination or separately to demonstrate that  a  county
qualifies for an exemption.  Measured air quality  data should be by an
approved reference method or equivalent  and a year's worth of valid data
(as defined on p. 71 of "Monitoring and  Air Quality Trends Report,  1973,"
EPA-45011-74-007, October 1974) should be used.  If measured  data is used,
it must reasonably represent the air quality in at least 75%  of the area
in the county.  Should monitoring data be available which indicates the
air quality is above the NAAQS, but the  data does  not reasonably represent
all portions of the county, modeling or  gridded emission density maps may
be used to demonstrate that violations can be expected in 75% of the
county.
     Also, air quality data recorded just outside  the borders of a  county
being considered for exemption may be used in demonstrating the existence
of pervasive violations.  If 75% of the  county can be shown to  be  in
violation, it is not necessary to estimate air quality in other portions
                                   IV

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if 75Vof all samplers in the county show a violation or one or more
of the standards for that pollutant, provided it can be shown that the
selected samplers provide reasonable coverage of the county.  The pro-
cedures outlined in "Guidelines for the Interpretation of Air Quality
Standards," OAQPS Mo. 1.2- 008, shall be used to determine if a violation
has occurred at a receptor.
     It is desired to keep the resources devoted to determining
if an area is "pervasively" above a standard to a minimum.  There-
fore, where modeling is required, it is not necessary that the most sophis-
ticated techniques be used.  Rather, unless the material and facilities  are
readily available to assist in the computation, it is recommended that  the
Hana-Gifford model be used in making the above determination.  The model,
along with others which may be used are explained in "Guidelines for  Air
Quality Maintenance Planning and Analysis," Volume 12, EPA-450/4-74-013.
Also, for those situations where an air quality maintenance analysis  has
been performed (for 1974 air quality), the results of this analysis,
appropriately applied to a county, may be used for demonstrating "per-
vasive" violations.
Responsibility for Determining Which Areas Are to be Exempted
     There is no intent in the regulations to require that States
apply for an exemption for all areas pervasively above the national stand-
ards; this is an option left strictly  to the States.  EPA will not initiate
action to exempt any area, even in cases where EPA is implementing the  new
source review and certain areas are known to exceed standards.  This  is
because there is little practical impact achieved by such exemption,  as
discussed below.  However, the regulations included the exemption option

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in response to public comients requesting such a provision and in order



to be consistent with the court order which required EPA to prevent



significant deterioration only in those areas where air quality was



superior to the nationa standards.



     The reason that the exemption of an area that is above standards



has little impact as compared with designating the area Class I, II, or



III, is that the significant deterioration increments apply only to air



quality increases, whereas air quality in these areas must be decreased



in order to attain the national standards.  Therefore, the present new



source review, which requires that a source cannot be constructed if it



will interfere with the attainment or maintenance of a national ambient



air quality standard, will be more restrictive in such areas than the



requirements for preventing significant deterioration.
                                      ' vi

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Baumol, W.J., Welfare Economics and the Theory of State.  Cambridge,
  Howard University Press, 1952.

Baxter, W.F., "The S.S.T.: from Watts to Harlem in two hours," 21 Stan
  L_. Rev. 1, 1968. .

Bergson, A., "A Reformulation of Certain Aspects of Welfare Economics",
  Quarterly Journal of Economics,  February, 1948,  pp. 310-334.

Boulding, K., "The Economics of the Coming Spaceship Earth," Environmental
  Quality in A Growing Economy 3, 1966.

Braybroke, David and Lindblom, Charles, A Strategy of Decision, New York,
  Free Press, 1963

Buchahan, James M. and Tullock, Gordon, The Calculus of Consent:
  Logical Foundations of Constitutional Democracy, Ann Arbor, University
  of Michigan Press, 19T3.

Carl in, Alan, "The Grand Canyon Controversy:  Lessons for Federal Cost
  Benefit Practices,"  44 Land Economics 219, 1968.

  "Water Resources Development in an Environmentally Conscious Era,"
  7 Water Resources Bull., 1971.

Carter Luther J. "Grand Canyon Dams:  'Interior to ask are they
  necessary?1 "  Science, Vol. 154, October 7, 1966, p. 134.

Castle, Emery, Kelso, Maurice, and Gardner, Dellworth, "Water Resource
  Development:  A Review of the New Federal Evaluation Procedures,"
  Journal of Farm Economics, November, 1963.

Coase R., "The Problem of Social Cost," 3^. Law Econ. 1, 1960.

Davis, Otto A. and Kami en, Morton, "Externalities and the Quality of
  Air and Water, "Economics of Air and Water Pollution."  W.R. Walker ed.,
  Water Resources Research Center, Virginia Polytechnic Institute, 1969.

DeVany, Eckert, Myers, O'Hara and Scott," A Property System for Market
  Allocation of the Electromagnetic Spectrum," 21 Stan. I. Rev. 383, 1969..

Eckestein, Otto, A Survey of the Theory of Public Finances:  Needs. Sources
  and Utilization, New York, Princeton University Press, 1961.

Fox,  Irving K, and Herfindahl, Orris C., "Attainment of Efficiency in
  Satisfying Demands for  Water Resources," American Economic Review, May
  1964, pp. 198-206.

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  ...K.  AU.KCI,  eu.,  toacer Kesources  Research Center,  Virginia Polytechnic
  Institute, 1969, pp.  22-28.

Hicks,  J.R., "The Valuation of Social  Income,"  Economia,  1940,  pp.  105-24.

Hirschleifer, DeHaven, James C.  and  Milliman, Jerome  W.,  Water Supply:
  Economics, Technology and Policy.  University  of Chicago Press,
  Chicago,  1960.

Kaldor, N.,  "Welfare Propositions  and  Interpersonal Comparisons of
  Utility,"  Economic Journal, 1939,  pp.  549-52.

Kneese, A.  and Bower,  B., Managing Water Quality:   Economics, Technology
                              f
     ^ Institutions, Published for Resources for the Future,  Johns
  Hopkins Press, 1968.

Knetsch, Jack L. "Economics of Including Recreation as a Purpose of
  Water Resource Projects,"  Journal  of Farm Economics, December, 1964
  p. 1155.

Krutilla John V., "Conservation Reconsidered," 57 American Economic
  Review  1967.

_ "Is Public Intervention in Water Resources Development
Conducive to Economic Efficiency?11, Natural Resources Journal ,
January 1966, pp. 60-75.

_ Multiple Purpose River Development, Johns Hopkins Press,
Baltimore, 1958.

_ (with Knetsch, Jack H.) "Outdoor Recreation Economics,"
389 Annals of_ the American Academy o£ Political and Social Science
63_, 1970.

Little, I.M.D., A Critique of Welfare Economics, Oxford University Press,
  New York, 1950.

Major, David C. "Notes on the New Standards for Evaluating Water
  Resource Projects,"  Journal of Farm Economics, May 1964,  pp. 491-493.

McKean, Roland N., Efficiency in Government Through Systems Analysis
  with Emphasis on Water Resources Development, John Wiley & Sons,
  New York, 1958.

Meade, J.E., "The Theory of International Economic Policy,"
  Trade and Welfare, New York, Oxford University Press, 1954,  vol. 2.
                                    ii

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  JJ La 11u Li. uliuiii i v. a ii)9,

Mishan, E., Pareto Optimality and the Law, 9 Oxford Econ. Papers
  225, 1967.

Note,  "The Cost-Internalization Case for Class Actions,"
  21 Stan. L. Rev. 383, 1969.

Note,  "An Economic Analysis of Land Use Conflicts,"
  21 Stan. L. Rev. 293. 1969.

Note,  "The Public Trust Doctrine in Tidal Areas: A Sometime Submerged
  Traditional Doctrine," 79 Yale L.J. 762, 1970.

Pigou, A., The Economics of Welfare, London, Macmillan
  and Co., 1932, 4th ed.,

Prest, A.R. and Turvey, R., "Cost-Benefit Analysis:  A Survey,"
  Economic Journal, 75, December, 1965, pp. 683-75.

Schmid, "Market Failure-Why Externalities are not Accounted for
  in the Market,"  Economics of Air and Water Pollution, W.R.
  Walker, ed. Water Resources Research Center, Polytechnic Institute
  1969.

Scitoysky f., "A Note on Welfare Propositions in Economics,"
  Review of Economic Studies 1942, pp. 98-110.

Weisbrod, Burton, The Economics of Public Health:  Measuring the
  Economic Impact of Diseases, University of Pennsylvania Press,
  Philadelphia, 1961.

Wildavsky, Aaron, "The  Political Economy of Efficiency:  Cost Benefit
  Analysis, Systems Analysis and Program Budgeting,"  Political Science
  and Public Policy, ed. A. Ranney, 1968, pp. 57-64.
                                    ill

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           -- GENERAL LISTING OF INSTITUTIONS AMD OFFICES OF STATE,
              REGIpKAl . AND LOCAL GOVERNMENT WHICH SHOULD BF. CONSULTED
              IN PREPARING RECLASSIFICATION  DOCUMENT

                                  STATE

Governor's Office
Environmental Agency
Water Quality Board
Air Quality Board
Department of Health
State Office of Planning
State Recreation Department
Regional Office of Air Quality (part of State
  Environments'! Agency or Department of Health)
Department of Transportation
Highway Administration
Department of Urban Development and Housing
Office of Intergovernmental Relations
Office of Economic Development

                                REGIONAL

Air Quality Control Agency
Regional Planning Council
Council of Governments
Environmental Quality Agency
Transportation Planning Department
Land-Use Planning Department
Economic Development Planning Department
Recreation and Open Space Planning Department
Citizens and Agency Air Quality Review or Advisory
  Committee  (Task Force)
Water Quality Control. Boards
Area-Wide Waste Water Treatment Planning Agencies
   (established under section 203 of the Federal
   Writer f-nl'ii'tion Control Act Anicndn-.-snts of 1972)

                                  LOCAL
                                *-
Air Quality  Control Agency
Chief Executive of the City and County Local Board
  or Committee charged with responsibility  for
  activities in the conduct of the urban transportation
  planning process (3-C process).
Municipal  (City, County,  Township) elected  officials
Municipal  Planners (convoynity, transportation,
  environmental, parks, and recreation)
Local Departments  (health, water and sewer, solid
  waste disposal)
Local Development Offices
Local Zoning Administrators

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                              APPENDIX D
               DEFINITIONS. OF KEY V.TiRDS IN  PREVENTION  OF
               SIGNIFICANT DETERIORATION OF AIR  QUALITY
                              REGULATIONS
1.    The Classification Plan:
        Class I designation involves those areas  where  almost  no
change from current air quality is allowed;
        Class II designation indicates areas  where  moderate  change  is
allowed to accomodate limited  and managed  growth;
        Class III designation  indicates areas where substantial indus-
trial or other growth is allowed and where increases in concentrations
up to the national  standards,  consistent with health and welfare  re-
quirements for air quality, is allowed.
        All areas of all States are initially designated Class II,  except
those counties or other comparable areas that already violate .the Federal
secondary air standards.
        A State must give sufficient evidence of  pervasive violations of
the standard and apply by June 1, 1975 if  it  desires the exemption  from
designation for such an area.

2.  Increments:
        The Class I and Class  II designations involve numerical limi-
tations on the allowable increases in sulfur  oxides and particulate
matter concentrations over a 1974 baseline.  The  numerical  standards,
or increments, exoressed in rrricroarams per cubic  meter  of air, are:

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                  ALLOKED  POLLUTAilT CONCENTRATION  INCREASES

                 (OVER BASELINE)  -MICROGRAMS  PER CUBIC  METER

POLLUTANT

PARTICIPATE MATTER
ANNUAL GEOMETRIC MEAN
24-HOUR MAXIMUM

AREA
CLASS

5
10

DESIGNATION
I CLASS II

10
30
APPLICABLE
HATIOiiAL
STANDARDS

75 (P)
150 (S)
SULFUR DIOXIDE  •
  ANNUAL ARITHMETIC MEAN               2             15               80   (P)
  24-HOUR MAXIMUM                      5            100              365   (P)
   3-HOUR MAXIMUM                     25            700    '         1300   (S)


NOTE:   Class III  areas are  limited  to concentrations no  greater
       than the National  Ambient  Air  Quality  Standards.

       (P) -Primary Standard
       (S) -Secondary Standard


     There is preconstruction review  of  18  specified source  categories  to

determine whether these sources would cause a violation  of the  increments

associated with a  I, II,  or III classification.   In all  cases,  n£ classi-

fication or increment would permit  a  violation of the  national  standards.
3.  Baseline:

      The phrase "baseline air quality concentration"  refers to both sulfur

dioxide and particulate matter.  It is the sum of ambient concentration

levels existing during 1974 and (those additional  concentrations estimated

to result from sources granted approval  for construction or modification

U;t not vot operating prior to January 1. 1975.  The baseline concentration

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may be measured or estimated,   ihe  area  classifications do  not necessarily
ii'ply current air quality or current  land  use  patterns.  Classifications
should reflect the desired degree of  change  from  current levels and patterns,
     Because the classification  and increment  procedures is designed to
control and manage the level  of  change from  existing air quality, a
baseline of existing air quality concentration may  be  set at zero, for
calculation purposes.  This means,-for example, that an area designated
Class II could have a change in  air quality  by as much as.+15 ug/m3 of
S02 and +10 ug/m3 of TSP from a  baseline of  zero.  If  a new source in
that area uses 10 ug/m3 of S02 and  5ug/m3  of TSP, the  unused portion   .
of the increment calculated from the  baseline  would be (15-10) or
5ug/m3 S02 and (10-5) or 5ug/m3  TSP.
     If an existing plant phased out, or through  scrubbers  reduced
emissions, that amount of improvement could  be credited to  the incre-
ment.  For example, if an existing  plant in  the Class  II area with
remaining increments of 5ug/m3 S02  and 5ug/m3  TSP were to reduce
emissions by either BACT or by curtailment of  operation by  10 ug/m3
of S02 and 6ug/m3 of TSP, the increment  remaining to  be used  would
be augmented by 10 ug/m3 S02 and 6ug/m3  TSP, becoming  (5+10) ug/m3
302 or 15 ug/m3 S02 and (5+6) ug/m3 TSP  or 10  ug/m3 TSP.  Although
the TSP sum is eleven ug/m3, the increment limit  for  TSP  in Class  II
is 10 ug/m3.  As this example shows,  the increment  is  the limit of
allowable change.
     A basel me; therefore, is what  the. incremental  change  in air
     ty is measured against.
                                   m

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    BACT or ''best available control
     The term "best available ccntrol  technology," 3s arcli^d to x.r.y
          ccili-v r.;biect to EPA's Pan 60 regulations , irseans any emission
ccntrc-l d=v1ce or technique which is capable of limiting emissions to the
levels proposed or promulgated in EPA's Part 60.  Where no standard of
performance has been proposed or pron.ul gated for a source under Part 60,
best available control technology shall be determined on a case-by-case
basis considering the following:
     (1) The process, fuels, and raw material available and to be employed
in the facility involved,
     (2) The engineering aspects of the application of various types of
control techniques which have been adequately demonstrated;
     (3) Process and fuel changes,
     (4) The respective costs of the application of all such control
techniques, process changes, alternative fuels, etc.,
     (5) Any applicable State and local emission limitations, and
     (5) Locational and siting considerations.

5 .  ifJSR or "n&'.'i source review":
     The regulations require a preconstruction review of new or expanded
facilities of 18 -types of industry in all three Classes.  The review will
appty -to facilities whose construction or noa'ification beains on or
afte- June 'I, 19*75.  The review is designed to insure -thtt e^n'ssion-;
Vroii the faci 1 ittes wi i 1 ixst violate, the a* Iow5ble.clc.teri oration  incr
i A the, ar^a where the- source v/i 1 1 be. located ncr the. air quali «ty f

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 •: t;v •--"••''  7: >".;'?.">.  ,;vj revic1.1/ ~/iro rer!.;ir~£ that "r-jjct  ^'
technology"  (BA.CT) -3 employed.
            ''.:=••; rcurcj oer~:.^:-:-.'iC5 ~t.-.nd-.rds:i:
     A NSPS  is defined in  the Clean Air Act r.s "2 standard for emission
limitation achievable through the- application of the  best system "f enission
reduction which (taking  into account the cost of achieving such reduction) tha
Administrator determines has been adeauately demonstrated."
     NSPS may only apoly to certain affected -facilities within a large
source.  Where NSPS do not cover one of the sources within the 18 categories
of sources in the  non-sianificant deterioration regulations, EACT must be
determined on a csse-by-case basis until such tine as NSPS are issued for
these facilities.
7 .   Federal Land  Manager
     The  Federal   Land  Manager  as defined  in the December 5, 1975,
Federal  Register  52.21(b)(3)  is "the head, or  his designated
representative of  any Department or Agency of  the Federal Govern-
ment  which  administers  federally owned  land,  including public  domain."

8.   Indian  Governing  Body
     An  Indian Governing Body  as defined  in the December 5, 1975,
Federal  Register  52.21(b)(5)  is "The governing body  of any tribe  land,
or group  of Indians subject  to jurisdiction of the  United  States
recognized  by the  limited States as possessing power  of self-
government."

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