Getting Started on Title I:

A Sommary of the Provisions  in
the  Glean  Air Act Amendments of 199
for Ozone  and Carbon Monoxide
Nonattairiment Areas
     1991
AirW
Office of Air Quality Planning and Standards
ttJ.  Environmental

-------
Table of Contents
Part 1:  Introduction  	    5

Part 2:  State Submittal Requirements  	    6
      Actions Due by March 15,1991 (120 days after enactment) ...    6
           Designations and Classifications	    6
           Motor Vehicle Inspection and Maintenance (I/M) Programs .   12
                1IM Fix-ups	   12
                I/M for Moderate Ozone Areas	   13
      Actions due by May 15, 1991 (6 months after enactment)  ....   14
           RACT Fix-ups	   14
           Northeast Ozone Transport Commission  	   15
      Actions Due by May 15, 1992 (18 months after enactment)  ...   15
           Enhanced Monitoring	   15
      Actions Due by November 15,1992 (24 months after
           enactment)	   16
           Emission Inventories	  16
           Conformity   	  19
           Contingency Measures  	  19
           Additional Ozone Requirements	  19
                RACT on VOC Sources  	   20
                RACT for NOX Major Sources	   23
                Stage II	   24
                Enhanced I/M Programs	   25
                California Pilot Program for Clean Fuels and "Opt-In" by Other
                      States  	   25
                Substitutes for Clean-Fuel Vehicle Program	   26
                Transportation Control Measures (TCM's)  	   27
                Employer Trip-Reduction Programs  	   27
                New Source Review (NSR) Program	   28
           Requirements for the Transport Region	   28
                RACT on VOC sources  	   28
                RACT on NOX sources	   29
                NSR on VOC and NO, sources  	   29
                Enhanced I/M	   29

-------
           Additional CO Requirements	  29
                 VMT Forecast  	  29
                 NSR Program	  30
                 CO Areas with Significant Stationary Source Contributions ....  30
                 Enhanced IIM	  31
                 Contingency Measures	  31
                 Transportation Control Measures (TCM's)  	  32
                 Oxygenated Fuels  	  32
                 Attainment Demonstration	  33
                 Substitutes for Clean-Fuel Vehicle Program	  33
           Planning Procedures  	  33
     Actions Due by November 15, 1993 (36 months after
           enactment)	  34
           Plan for Reasonable Further Progress (RFP) (15% reduction
                 requirement)	  34
           Contingency Measures	  36
     Actions Due by November 15, 1994 (48 months after
           enactment)	  37
           Attainment Demonstration	  37
           Contingency Measures	  38
           Clean-Fuel Vehicle Fleet Programs  	  38
           Requirements for the Ozone Transport Region  	  39

Part 3:  Transition Requirements  	  39
           Phase II of SIP Calls	  39
           Lifting of Construction Bans 	  41
           SIP Processing Procedures  	  42
           NSR Transition Issues and Guidance 	  42

Part 4:  EPA Actions	  43
           Control Measures	  43
           New  CTG's  	  43
           Alternative Control Technology (ACT)	  43
           Commercial and Consumer Solvent Study and Rules	  44
           RACT/BACT/LAER Clearinghouse	  44
           Revisions of Existing CTG's	  44

-------
Endnotes	 45



Appendix	 47

-------
Part 1:  Introduction
                         The complexity and sheer volume of the Title I provisions in the
                       Clean Air Act Amendments of 1990 (CAAA) suggest that special
                       efforts are warranted to ensure that those involved in developing and
                       implementing the requirements have a clear understanding of the
                       actions and submittals that will be needed. For this reason, the
                       Environmental Protection Agency (EPA) has developed this
                       document to assist States as they schedule and prioritize their work
                       activities over the next several months and years to prepare their
                       ozone and carbon monoxide  (CO) State implementation plans
                       (SIP's), as required in Title I.

                         This document outlines the requirements for States which must
                       develop ozone and/or CO SIP's pursuant to the new provisions in
                       Title I of the CAAA. The document focuses on those actions the ,
                       State must take in the early stages (in particular, within the first four
                       years  after enactment) regarding the designation and classification of
                       their nonattainment areas, development and adoption of required
                       control measures, and technical analyses of their pollution problems
                       and control strategies. The document is not intended to provide
                       detailed technical guidance or to specify Environmental Protection
                       Agency (EPA) policy, but rather it is designed to provide a clear,
                       concise statement of the new CAAA requirements. The EPA will
                       publish a "General Preamble" in the Federal Register to provide
                       specific criteria and policies  it will use to determine the
                       approvability of the various SIP submittals.

                         The requirements for States in this document are generally
                       discussed in a chronological  order related to when specific
                       submittals are due. In this way, the document is intended to help
                       States assess their work loads in the months and years to come and
                       to set schedules and priorities for satisfying the many new
                       requirements under Tide  I for ozone and CO nonattainment areas.

                         To support State efforts to accomplish the required submittals, a
                       listing of technical guidance  is provided in the Appendix. This
                       listing includes both the currently available guidance and future
                       guidance (along with a schedule for its completion). For quick
                       reference, many of the guidance materials are also listed within the
                       document near the discussion of their respective subjects. Also
                       included in the document is a discussion of certain "transitional
                       issues" and a description  of the actions EPA will  be taking to

-------
                       develop new control measures or additional guidance on control
                       measures.

                         The focus of this document is on the basic submittals that will be
                       required of States. As a result, certain topics are not discussed here
                       but will be addressed in subsequent guidance (e.g., the General
                       Preamble). For example, submittals related to failures  to meet
                       applicable milestones (i.e., actions such as "bump ups" from one
                       classification to a higher classification) or redesignation procedures
                       and requirements are not discussed in this document. Also, the
                       general SIP requirements of section 110(a)(2) are  not addressed, but
                       States should consider these requirements as they  prepare their
                       submittals for  nonattainment areas. Subsequent guidance will address
                       important new provisions under section 110.

                         In addition to distributing this document, the EPA will be
                       conducting national workshops on selected implementation topics
                       and periodically preparing "Q's & A's" to provide States timely
                       assistance in responding to the new requirements.
Part 2:  State Submittal Requirements
                          The discussion of the submittal requirements is organized
                       chronologically—that is, by the deadlines for the submittals. All of
                       the submittals are listed in Figure 1 for quick reference. As stated
                       above, the discussion of a submittal requirement in this report often
                       includes a list of selected guidance materials that are (or will be)
                       available to assist the States.

                          It is important to keep in mind in reviewing the submittal
                       requirements is that, in most cases, they are "additive" from one
                       classification to  another. In other words, the statement that a certain
                       control measure  is required for Moderate ozone areas should be read
                       as applying to Serious, Severe, and Extreme ozone areas as well,
                       unless otherwise noted.
          Actions Due by March 15,1991 (120 days after enactment)

    Designations and      Areas formally designated as nonattainment before enactment
       Classifications   were again designated as nonattainment by operation of law on the
                       date of enactment (November 15,  1990). These areas were also

                                           6

-------
                  Figure 1:  Required  State Submittals and  Actions

Submittal/Action
Ozone Gassiflcation
Marginal
Moderate
Serious
Severe
Extreme
By March 15, 1991 (120 days after enactment)1
A request for more time to study boundaries for serious* area that was
designated and classified as of enactment (due 45 days after classification)
List of all areas with proposed designations and boundaries (except boundaries
for serious+ areas with requests for more time to study)
A request for more time to study boundaries for serious-t- area that was
designated and classified at 240 days after enactment (requested to be in
March 15, 1991, submittal; latest date for request is August 27. 1991)
Commitment to submit SIP revision to correct I/M program (i.e., implement
previously-required program) ("immediate submittal" of revision for I/M)
Commitment to submit SIP revision to implement basic I/M program
("immediate submittal" of revision for I/M) (plus serious areas where urbanized
population < 200,000)

X

X


X


X
X
X
X


X
X
X


X
X
X


By May 15, 1991 (6 months after enactment)
Submit RACT Corrections
Northeast ozone transport commission convenes (applies to Northeast transport
region)
X

X

X

X

X

CO Classification
Moderate
Serious


X

X

X
X
X







schedules.
       Certain submillals/actions may actually be required before the end of the time period specified. Check the narrative portion of the document for specific submittal time

-------

Submittal/Action
Ozone Qassification
Marginal
Moderate
Serious
Severe
Extreme
By November 15, 1991 (12 months after enactment)
Implement basic I/M programs
X
X



By May 15, 1992 (18 months after enactment)
Commence actions to adopt and implement enhanced monitoring program
requirements


X
X
X
By November 15, 1992 (24 months after enactment)
Submit comprehensive emission inventory
Submit requirements for emission statements
Submit VOC RACT rules (existing CTG's; non-CTG major sources)
Submit NO. RACT rules (unless demonstrate not appropriate)
Submit NSR rules (VOC and NO,)
Submit Stage II vapor recovery program
Submit Enhanced I/M program; begin implementation
Submit requirements for transport region (VOC, NO, RACT and NSR;
Enhanced I/M) (applies across transport region)
Submit conformity requirements
Submit measure for reducing VMT
Submit CO attainment demonstration
Submit contingency measures (if VMT forecasts exceeded)
Submit transportation control measures (TCM's)
X
X


X



X




X
X
X
X
X
X


X




X
X
X
X
X
X
X

X




X
X
X
X
X
X
X

X
X


X
X
X
X
X
X
X
X

X
X


X
CO Classification
Moderate
Serious







X







X

X2
X2

X







X
X
X
X
X
'Applies to areas with design values > 12.7 ppm
                                                                             8

-------

Submittal/Action
Submit revision requiring employer trip reduction programs (25% vehicle
occupancy rate reductions)
Submit oxygenated fuel program
Ozone Classification
Marginal


Moderate


Serious


Severe
X

Extreme
X

By November 15, 1993 (36 months after enactment)
Submit "15% SIP" (i.e., measures showing 15% reduction in VOC baseline)
Submit demonstration re: additional VOC, NO, reductions as necessary to attain
Submit NSR program (CO)



X
X

X


X


X


By November 15, 1994 (4 years after enactment)
Submit attainment demonstration (photochemical dispersion modeling)
Submit RFP demonstration showing 3% average annual reductions commencing
6 years after enactment
Submit contingency measures for failures to meet milestones
Submit clean-fuel vehicle program
Submit Stage II program (or "reflect comparable measures") in transport region
Submit plans to incorporate EPA's emission diagnostic rules (estimated time)





X





X
X
X
X
XJ

X
X
X
X
X

X
X
X
X
X

X
CO Classification
Moderate

X
Serious

X



X


X













3As applicable in regards to Title II requirements

-------
classified at that time on the basis of 1987-89 data, in the case of
ozone, and 1988-89 data, in the case of CO1.  Classification of an
area is based on the area's design value. The method used to
calculate the design value is described in a June 18, 1990
memorandum from William Laxton to the Regional Division
Directors (see below).

  In general, the 1990 CAAA require each State to submit to EPA
by March  15, 1991, (120 days after enactment) a list of all  areas in
the  State, indicating designations for ozone or CO (or affirming
existing designations) and describing their boundaries.  A State
cannot reduce any existing (pre-enactment) boundaries of ozone or
CO nonattainment areas through this process.  EPA intends to act on
the  list by promulgating new or affirmed designations,
classifications, and boundaries by no later than July 13,  1991 (120
days after receipt of the State list is required).  If EPA chooses to
modify the State list (for example, by modifying the boundaries),
EPA must notify the State by no later than May 14, 1991 (60 days
prior to EPA promulgation).

  The March 15,  1991, submittal must list all nonattainment areas,
including the recommended boundaries of these areas. In
determining boundaries, the State  should consider a wide range of
factors, including population, population density, growth projections,
and commuting patterns. The default areas for boundaries for ozone
and CO nonattainment areas should be the consolidated  metropolitan
statistical area  (CMSA), or the metropolitan statistical area  (MSA),
whichever (if any) is  applicable.

  The CAAA  provide that by operation of law, any ozone  or CO
nonattainment  area classified on the date of enactment as serious or
higher (under the process described below) takes  as its boundary
either the CMSA or MSA, as of December 30, 1990 (45 days from
their classification), unless the Governor has notified EPA by that
date that the State wishes to consider further the boundaries of the
area. For areas for which the Governor has submitted such  a
notification, the State must expeditiously submit to EPA any
recommendations  and studies concerning the boundaries. The
boundaries will become the CMSA [MSA] by January 15,  1992 (14
months after enactment) unless, by that date, the State recommends
and EPA concludes that a smaller boundary is appropriate.  In the
interest of administrative expediency, EPA has urged States to
submit any recommendations and studies concerning boundaries as
soon as possible and  preferably by March 15, 1991. EPA would
                   10

-------
prefer that final boundaries for as many areas as possible be
determined with the national Federal Register action occurring 240
days from enactment.

   Additional designations, classifications, and boundary-setting will
occur with the March 15 submittal of a list designating all areas in
the State, and EPA promulgation of that list (with appropriate
modifications) by July 13, 1991, (no later than 240 days from
enactment).  This 240-day process is expected to result in the
addition of new nonattainment designations for some areas not
previously designated nonattainment, and the expansion of the
boundaries of some areas that were designated nonattainment as of
the date of enactment2.

   The CAAA contain special provisions for two categories of areas
that do not fit within the basic classification scheme— transitional
areas and rural transport areas. Transitional areas are areas that were
designated nonattainment for ozone before the enactment of the
CAAA but are not now recording violations of the standard3.
Section 185A of the CAAA directs the Administrator to suspend the
ozone-specific requirements for these areas until air quality data
through 1991 can be collected and reviewed. By June 30, 1992, the
Administrator must determine whether the  area is  still not violating
the ozone standard. If no violations have occurred, the State must
submit a maintenance plan  (as part of the requirements for
redesignation) within 12 months of that determination. If violations
occur,  the area becomes subject to the new requirements according
to its classification (based on its design value).

   In the other case, the  Administrator may treat an area as a "rural
transport area" if he determines that emissions from the area do  not
contribute significantly to the ozone concentrations in that area or in
other areas. Rural transport areas are subject to the same
requirements that apply to marginal areas.  To qualify as a rural
transport area, an area must not border or be within an MSA or
CMSA; ambient air quality monitoring must show violations  of  the
ozone  standard and the area is or will be designated as an ozone
nonattainment area under the new designation process; and, finally,
precursor emissions from point, area, and mobile sources in the  area
must not make a significant contribution to the ozone concentrations
measured in the area or in other areas.

   A State wishing to qualify an area as a rural transport area must
also reasonably implicate an upwind area. The State must submit
                   11

-------
                     appropriate documentation to this effect to EPA in advance of the
                     required State implementation plan (SIP) revision  for the area. The
                     EPA will review the data and inform the State of  the
                     Administrator's decision.  Application on the part  of a State as a
                     rural transport area will not relieve the state from  complying with
                     SIP submittal deadlines in the event the Administrator ultimately
                     does not treat the area as qualifying.
                        The March 15, 1991, submittal by the State is not required to
                     specify areas as transitional areas or rural transport areas. The  EPA
                     is requesting, however, that States identify any such areas as early
                     as possible so that EPA can include these areas  in the promulgation
                     due by July 12, 1991, (240 days after enactment).

                        Guidance:

                        •  Memorandum issued on November 14, 1990, by John Seitz, Director, EPA's
                           Office of Air Quality Planning and Standards, describing the designation
                           and classification process

                        •  December 13, 1990, letter from EPA Assistant Administrator William G.
                           Rosenberg to State Governors concerning early actions regarding
                           designations, classifications, and boundaries

                        •  EPA Regional Administrator letters to States (January 1991) on the
                           designation and classification steps, initial listing of State areas, and  other
                           important "early" actions

                        •  Emissions Inventory/Modeling Sub-Work Group in-house document  titled,
                           Requirements for Nonself-Generating or Rural Transport Areas, September
                           18, 1990; and Consideration Of Transported Ozone And Precursors And
                           Their Use In EKMA. EPA^50/4-89-010.)
    Motor Vehicle
    Inspection and
Maintenance (I/M)
         Programs
  I/M Fix-ups:  In both marginal ozone nonattainment areas and
moderate CO nonattainment areas, any plan that already contains, or
was required by the 1977 Act to have contained, a basic I/M
program, must contain such a program meeting either all of EPA's
previous guidance on basic I/M programs or retaining the program
now in the plan, if more stringent than otherwise required. This
requirement is contained in section 182(a)(2)(B) for ozone areas and
in section 187(a)(4) for CO areas. The statute requires these
corrected plans "immediately" after enactment, since such plans
were required under prior law.  EPA acknowledges that some areas
may have to enact further legislation to upgrade existing programs,
making this immediate deadline virtually impossible to meet.  Such
                                          12

-------
states should at a minimum immediately submit a schedule outlining
the necessary legislative steps and committing to meet the most
expeditious timeline possible for implementing them.

   I/M for Moderate Ozone Areas:  The CAAA require the plan for
all moderate ozone nonattainment areas to include a basic I/M
program whether or not such program was required under the 1977
Act  This requirement is contained in section 182(b)(4). The  statute
again requires these plans "immediately" after enactment, although
in a  few cases such areas may be subject to  this requirement for the
first  time. Since (1) normally EPA would provide at least one year
for an area newly subject to such requirements to adopt and
implement an I/M program and  (2) EPA will be revising its I/M
guidance [pursuant to section  182(a)(2)(B)(ii)]4, EPA will use its
authority under new section 110(k)(4) to conditionally approve basic
I/M  programs in moderate ozone areas newly subject to the
requirement based upon the State's commitment to develop such
programs within one year from EPA's  (conditional) approval of the
plan. States containing these areas should promptly submit schedules
outlining the steps necessary to develop and implement these
programs, and make enforceable commitments to adopt the programs
within one year. Generally, such programs should be effective within
one  year of State adoption.

   Where the boundary of a nonattainment area changes anytime
after enactment pursuant to the designation provisions of  the
amended Act, EPA  will again conditionally approve SIP revisions
based upon enforceable commitments,  submitted promptly after the
designation, to adopt I/M programs within one year in any areas
newly subject to I/M requirements by virtue of the boundary change.
As discussed later in this document, areas classified at least serious
for ozone or CO will  be required to adopt an "enhanced" I/M
program within two years of enactment.  Thus, in some cases, areas
may become newly subject to both basic  and enhanced I/M
requirements, with the basic VM requirements due shortly prior to
the deadline for submission of the SIP revision providing for the
enhanced I/M program. In such cases, timely submission of an
enhanced I/M program will make development of a basic I/M
program unnecessary and EPA will not require the submission  of the
basic I/M requirements discussed above.
                   13

-------
                   Guidance:

                   •  Guidance on inspection and maintenance (I/M) programs to be available by
                     August 1991
   Actions due by May 15,1991 (6 months after enactment)

RACT Fix-ups      Under section 182(a)(2) of the new amendments, States with
                existing areas designated nonattainment for ozone are required
                within six months of their classification under section 181(a) to
                submit revisions to the SIP that correct or add requirements
                concerning reasonably available control technology (RACT) that
                were required under section 172(b) of the Clean Air Act before the
                1990 Amendments.  Since (by operation of law) areas designated
                nonattainment under the prior law were both designated
                nonattainment and classified on the date of enactment (see
                "Designation and Classifications" above), these RACT corrections
                are due from these areas within six months from the date of
                enactment (i.e.,  by May 15, 1991).

                   EPA has already notified states with existing nonattainment areas
                of the need to correct discrepancies between their SIP's and the
                applicable requirements of the law before the Amendments.
                Guidance concerning the RACT requirements has also been issued
                by EPA through control technique guidelines (CTG's) and other
                guidance, notice of which has been published in the Federal
                Register. The SIP revisions submitted by the States are expected to
                comply with the EPA guidance. Areas are expected to adopt RACT
                for various types of sources as explained in EPA's established
                RACT interpretations, which are  summarized in 52 FR 45044,
                45068 (November 24, 1987) and in the RACT guidance referenced
                in EPA's 1988  and 1990 SIP calls for ozone nonattainment.  The
                EPA guidance is also listed in Appendix  A to this memorandum.

                   Guidance:

                   •  Notifications of SIP discrepancies -- 55 FR 30973 (July 30, 1990) and 53
                     FR 34500 (September 7, 1988)

                   •  RACT correction guidance -- 52 FR 45044, 45068 (November 24, 1987)
                                   14

-------
    Northeast Ozone
           Transport
        Commission
  The CAAA provide for the establishment of a transport
commission to "assess the degree of interstate transport of the
pollutant or precursors to the pollutant throughout any transport
region, assess strategies for mitigating the interstate pollution, and
recommend to the Administrator such measures as the Commission
determines to be necessary to ensure  that the plans for the relevant
States meet the requirements of Section 110(a)(2)(D)." [section
176A] In addition, section 184 of the CAAA specifically establishes
a transport region comprising the following:  Connecticut, Delaware,
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New
York, Pennsylvania, Rhode Island, Vermont, and the consolidated
metropolitan statistical area (CMSA)  containing the District of
Columbia. The commission5 for this region must be convened by
the Administrator by May 15, 1991 (6 months after enactment).

  There  are no specific transport-related SIP submittals that are
required  during this time  period from the States in the transport.
region. (Within 2 years, as discussed below, several important
submittals are required.) The primary action required of these States
by May 15, 1991, is that  they specify their representatives to the
commission and participate in the commission meeting. The EPA is
contacting the affected States directly to determine meeting dates
and locations, other logistical arrangements, and important issues
needing to be addressed.

  Guidance:

  •  Correspondence from William K. Reilly, EPA Administrator, to Governors
     of States located in the ozone transport region created under section 184(a),
     March 28, 1991.
         Actions Due by May 15,1992 (18 months after enactment)
Enhanced Monitoring
   All SIP's for serious and above ozone nonattainment areas must
contain a program of measures designed to enhance and improve
both ambient air quality monitoring and emissions monitoring.  The
enhanced program for ambient air quality monitoring should contain
measures for ozone, nitrogen oxides, and volatile organic compound
pollutants. States are required to take immediate action to adopt and
implement an enhanced monitoring program following EPA's
promulgation of rules regarding such programs. The  EPA is required
to promulgate these rules by May 15, 1992 (18 months after
enactment).  This requirement is contained  in section 182 (c)(l).
                                          15

-------
                      Upon promulgation of these rules, EPA will provide further
                      guidance as to the required actions and schedule for States.

                         Guidance:

                         •  Enhanced ambient air quality monitoring program for serious, severe, &
                           extreme ozone areas (May 92)
         Actions Due by November 15, 1992 (24 months after enactment)

Emission Inventories     Section 182(a)(l) requires all ozone nonattainment areas to submit
                      a comprehensive, accurate, current inventory of actual emissions
                      from all sources within 2 years of enactment. Section 187(a)(l) has
                      the same requirement for CO nonattainment areas. This inventory is
                      defined as the baseyear inventory and is for the calendar year 1990.

                        For ozone, the baseyear inventory includes both anthropogenic
                      and biogenic sources of VOC and NOX. The inventory (excluding
                      the biogenic portion) is the basis for meeting the milestone
                      requirement of  15 percent reduction over the first six years
                      (discussed below under submittals due within 36 months). This
                      inventory also serves as the basis for the 3 percent per year
                      reductions necessary for serious and above areas to achieve after the
                      first six years until the area reaches attainment (discussed below
                      under submittals due within 48 months).

                        In order to do the appropriate calculations to determine the
                      required reductions described above, the baseyear inventory must be
                      adjusted for those reductions that are not creditable [i.e. the Federal
                      Motor Vehicle Control Program (FMVCP) promulgated before
                      January 1,  1990, gasoline volatility rules promulgated before
                      enactment or required under section 211(h)].

                        The baseyear inventory plays an important role in modeling
                      demonstrations  for moderate and above areas. Guidance is being
                      developed to aid States in preparing emission inventories for
                      photochemical grid modeling (for serious  and above areas, and
                      multi-state moderate areas).  This guidance will be available in May
                       1991.
                                         16

-------
  Because the baseyear inventory serves as the basis for so many
other inventories, the EPA has prepared general "getting started"
guidance for emission inventories. This guidance is to serve as a
starting point for States in preparing their 1990 baseyear inventories.
The EPA also has prepared updates to the Post-1987 Policy
Inventory Requirements Documents for both ozone and carbon
monoxide; these documents were available as of March 1991.

  Another important aspect of the emission inventory requirements
of the CAAA is in section 182(b)(l)(A) and 182(c)(2)(B), which
requires a projection inventory to show how the emission reductions
(both the 15 percent for moderate and above areas and the 3 percent
thereafter for serious and  above areas) will be met. The projection
inventory for the 15 percent reduction over the first 6 years (for
moderate and above areas) is due November 15, 1993, and the
projection inventory for the 3 percent per year from 1996 until
attainment (for serious and above areas) is due November 15, 1994.
The EPA is preparing guidance on projections which will be
available in July  1991.

  Section  182(g) requires that a milestone demonstration be
submitted 90 days after an applicable milestone deadline has passed
(a milestone refers to the  percent reduction requirements, therefore
the first milestone deadline is November 15, 1996).  EPA is
currently working on guidance to determine what constitutes a
milestone demonstration that can be completed by the end of the  90
days period.

  Guidance:

  •  Compilation of air pollutant emission factors, Volume I and Supplements
     A,B and C (AP-42)
     - Vol.1 - U.S. Government Printing Office (GPO) stock #: 055-000-00251-7
     - Supplement A - GPO  stock #: 055-000-00265-7
     - Supplement B - GPO  stock #: 055-000-00278-9
     - Supplement C - GPO  stock #: 055-000-00369-6

  •  Compilation of air pollutant emission factors, Volume II, mobile sources,
     GPO stock # 055-000-00252-5 or NTIS stock # PB87-205266.

  •  Procedures for emission  inventory preparation: mobile sources
     (EPA-450/4-81-026d) (July 1989; revised version to be completed in
     May 91)

  •  AIRS facility subsystem  source classification codes (SCCs) and emission
     factor listing for criteria  pollutants (EPA-450/4-90-003) (Mar 90)
                    17

-------
•  SIP air pollutant inventory management system (SAMS) version 4.0 and
   SAMS user's manual (Mar 91)

•  Emission inventory requirements for ozone State implementation plans
   (EPA-450/4-91-010) (Mar 91)

•  Procedures for the preparation of emission inventories for precursors of
   ozone, volume 1 (EPA-450/4-88-021)  (Dec 88) (to be revised May 91)

•  Emission inventory requirements for carbon monoxide State implementation
   plans (EPA-450/4-91-011) (Mar 91)

•  Guidance for the preparation of quality assurance plans  for ozone/CO  SIP
   emission inventories (EPA-450/4-88-023) (Dec 88)

•  User's guide to MOBILE4 (mobile source emission factor model)
   (EPA-AA-TEB-89-01) (Feb 89) (revised version  to be released with
   MOBILE 4.1, May 91)

•  Quality assurance program for post-1987 ozone and carbon monoxide  State
   implementation plan emission inventories (EPA-450/4-89-004) (Mar 89)

•  Procedures for estimating and applying rule effectiveness in post-1987 base
   year emission inventories for ozone and carbon monoxide State
   implementation plans (Jun 89)

•  Example emission inventory documentation for post-1987 ozone State
   implementation plans (SIP's) (EPA-450/4-89-018) (Oct  89)

•  Guidance for initiating ozone/CO SIP emission inventories pursuant to the
   1990 Clean Air Act Amendments (Feb 91)

•  VMT projection guidance (May-91)

•  Preparing emission inventories  for the urban airshed model (UAM) (May
   91)

•  Revised guidance for the preparation of emission inventories for carbon
   monoxide and precursors of ozone (May 91)

•  Revised guidance for mobile source emission inventories including vehicle
   miles travelled (May 91)

•  Form and content of emission statements for ozone State implementation
   plans (Sep 91)

•  Preparing emission inventory projections (Jul-91)
                    18

-------
    Conformity        SIP's for all areas must include criteria and procedures by which
                   federal agencies  and metropolitan planning organizations (MPO's)
                   must assess the conformity to the SIP of any plan, program, or
                   project subject to federal support or approval or MPO approval. This
                   requirement is contained in section 176(c)(4)(C). Such procedures
                   should be consistent with criteria and procedures that are required to
                   be published by  the Administrator (in conjunction with the Secretary
                   of Transportation, as appropriate) by November 15, 1991 (1 year
                   after enactment).

                      Guidance:

                      •  Criteria to ensure conformity with State implementation plans (SEP's)
                        (Nov 91)
     Contingency
       Measures
Additional Ozone
    Requirements
  Section 172(c)(9) requires nonattainment plans to contain
additional measures that will take effect without further action by
the  State or EPA if an area fails to make reasonable further progress
(RFP) or to attain the standard by the applicable date.
Section 182(c)(9)  provides specific requirements for contingency
measures for serious and above ozone areas. Section 187(a)(2)
provides specific requirements for contingency measures for CO
areas with design  values above 12.7 ppm. Section 182(a) specifically
exempts marginal ozone areas from the contingency requirements of
section  179(c)(9).

  The specific requirements of sections 182 and  187, as described
above, effectively supersede the section 172(c)(9) general
requirements for contingency measures for certain areas. The
"remaining" areas (moderate ozone areas and moderate CO areas
with design values at or less that 12.7 ppm) must meet the
section  172(c)(9) requirements for contingency measures. The
contingency measures must be submitted in the 3-year submittal for
moderate and above ozone areas  and in the 2-year submittal for
moderate CO areas (with design values at or below 12.7 ppm). The
4-year submittal for serious and above ozone areas must contain
contingency measures related to emission reduction "milestones" that
apply after 1996 [section 182(g)]. The General Preamble will
provide additional specification as to the requirements for
contingency measures.

  Many States will have to adopt and implement certain
specifically-required control measures, especially in moderate and
                                      19

-------
above ozone nonattainment areas. The SEP submittal due by
November 15, 1992, must include these measures.

  RACT on VOC Sources: In addition to correcting SEP's under
section 182(a)(2)(A) to include previously required RACT
requirements (see RACT Fix-ups), States  with moderate, serious,
severe or extreme ozone nonattainment areas are required to submit
SIP revisions within two years of enactment that contain certain
additional RACT measures. These SEP revisions must require the
application of RACT to all sources covered by any existing (pre-
enactment) Control Technique Guideline (CTG) and to all major
sources, even if not covered by a CTG. [Section 182(b) (2), (c), (d)
and (e)]. This requirement is sometimes referred to as "RACT
Catch-up."

  The SEP revision must  apply RACT requirements to all VOC
sources covered by any CTG issued before the date of enactment of
the new law even if the CTG was not previously applicable in the
area under EPA's guidance implementing the prior law.  Under the
prior law, areas with the most serious and persistent nonattainment
problems have already  had to  apply RACT to all sources  for which
a CTG has been issued. However, as discussed in the EPA
guidance on SIP corrections, under the  prior requirements, some
nonattainment areas have not previously been called upon to apply
RACT to all sources for which there were CTG's.  These included
areas that originally projected  attainment by 1982 and were not
subject to a later EPA call for SEP revisions.   Since the area
projected attainment by 1982,  they had to apply RACT for the
source categories covered by Group I and n CTG's that had been
issued at that time, but they were not called upon to apply the
Group III CTG's issued after that date. Thus, the new law requires
that any moderate  and above nonattainment areas not previously
subject to all the CTG's to "catch-up" and apply RACT to all
sources covered by all  the CTG documents. Moderate and above
nonattainment areas that have  not previously had to apply RACT to
sources covered by Group in  CTG's will have to do so in the SIP
revisions. In addition, areas that had to apply CTG's only to major
sources under the prior law will have to revise their SIP's to apply
the CTG's to  all sources, including non-major sources, that are
covered by any CTG.  This requirement is not applicable, however,
to rural transport areas under section 182(h).

   States must also develop and submit RACT rules for all other
major stationary sources of VOC in the moderate and above
                  20

-------
nonattainment areas even if no CTG has been issued by EPA with
respect to that source. [Section 182 (b)(2)(C)]. Areas with the more
serious and persistent nonattainment problems have already been
required to apply RACT to all major non-CTG VOC sources. Under
Section 182 (b)(2)(C), moderate to extreme nonattainment areas
which had not been called upon previously to apply RACT to all
major sources are required by the new amendments to "catch up"
and apply these measures. The definition of major source includes
increasingly smaller-size sources in areas with more severe
nonattainment problems.  For moderate areas, major sources
continue to be defined as those that emit, or have the potential to
emit, 100 tons per year (tpy). Major sources in serious areas are
those that emit, or have the potential to emit, 50 tpy; for severe
areas, 25 tpy; and for extreme areas, 10 tpy.  See section 182(c), (d)
and (e). The major source definition also includes a group of sources
located within a contiguous area and under common control.
Section 182(c),(d) and (e); House Report p. 234.

   In addition, States must submit revisions applying RACT to
sources covered by CTG's that EPA issues after enactment of the
1990 Amendments,  [section  182 (b)(2)(A)] Schedules for developing
RACT rules for these future CTG's will be set forth in each of the
CTG's.

   Guidance:

   •  Control techniques guideline (CTG) for control of VOC emissions from
     surface coating operations: general control methods, Vol. I
     (EPA-450/2-76-028) (Nov 76)

   •  Control techniques guideline (CTG) for control of VOC emissions from
     surface coating of cans, coils,  paper, fabrics, automobiles, and  light-duty
     trucks. Vol.  II (EPA-450/2-77-008) (May 77)

   •  Control techniques guideline (CTG) for control of hydrocarbons from tank
     truck gasoline loading terminals (EPA-450/2-77-026) (Oct 77)

   •  Control techniques guideline (CTG) for control of refinery vacuum
     producing systems, wastewater separators & process unit turnarounds
   •  (EPA^50/2-77-025) (Oct 77)

   •  Control techniques guideline (CTG) for control of VOC emissions from
     solvent metal cleaning (EPA-450/2-77-022) (Nov 77)

   •  Control techniques guideline (CTG) for control of VOC emissions from
      surface coating of metal furniture. Vol. in (EPA-450/2-77-032)(Dec 77)
                    21

-------
•  Control techniques guideline (CTG) for control of emissions from surface
   coating of magnet wire, Vol. IV (EPA-450/2-77-033) (Dec 77)

•  Control techniques guideline (CTG) for control of VOC emissions from
   surface coating of large appliances, Vol. V (EPA-450/2-77-034) (Dec 77)

•  Control techniques guideline (CTG) for control of VOC emissions from
   storage of petroleum liquids in fixed-roof tanks (EPA-450/2-77-036 or PB
   2767491AO3) (Dec 77)

•  Control techniques guideline (CTG) for control of VOC's from bulk
   gasoline plants (EPA-450/2-77-035) (Dec 77)

•  Control techniques guideline (CTG) for control of VOC's from use of
   cutback asphalt (EPA-450/2-77-037) (Dec 77)

•  Control techniques guideline (CTG) for control of VOC leaks from
   petroleum refining (EPA-450/2-78-036) (Jun 78)

•  Control techniques guideline( CTG) for control of VOC emissions from
   coating of miscellaneous metal parts and products(EPA-450/2-78-015)(Jun
   78)

•  Control techniques guideline (CTG) for control of VOC emissions from
   surface coating of flat wood paneling (EPA-450/2-78-032) (Jun 78)

•  Control techniques guideline (CTG) for control of VOC emissions from
   manufacture of synthesized pharmaceutical products (EPA-450/2-78-029)
   (Dec 78)

•  Control techniques guideline (CTG) control of VOC emissions from
   manufacture of pneumatic rubber tires (EPA-450/2-78-030) (Dec 78)

•  Control techniques guideline (CTG) for control of emissions from graphic
   arts rotogravure and flexography (EPA-450/2-78-033) (Dec 78)

•  Control techniques guideline (CTG) control of VOC emissions from
   petroleum liquid storage in external floating roof tanks (EPA-450/2-78-047
   or PB290579) (Dec 78)

•  Control techniques guideline (CTG) for control of VOC leaks from gasoline
   tank trucks and vapor collection systems (EPA-450/2-78-051) (Dec 78)

•  Control techniques guideline (CTG) control of VOC emissions from large
   petroleum dry cleaners (EPA-450/3-82-009) (Sep 82)

•  Control techniques guideline (CTG) for  manufacture of high density
   polyethylene, polypropylene, and polystyrene resins (EPA-450/3-83-008)
   (Nov 82)
                    22

-------
     Control techniques guideline (CTG) for control of VOC equipment leaks
     from natural gas/gasoline processing plants (EPA-450/3-83-007) (Dec 83)

     Control techniques guideline (CTG) for control of fugitive emissions from
     synthetic organic chemical manufacturing industry (SOCMI)
     (EPA-450/3-83-006) (Dec 83)

     Control technique guideline (CTG) for control of SOCMI air oxidation
     processes (EPA-450/3-84-01) (Dec 83)

     Control technique guideline (CTG) for control of volatile organic liquids
     (VOL) storage vessels (Dec 83)

     Issues relating to VOC regulation outpoints, deficiencies, and deviations:
     clarification to Appendix D of November 24, 1987 Federal Register (Blue
     book, revised 1/11/90)

     Implementation of future control measures: a guidance document presenting
     the criteria for the structure of rules (i.e., appropriate recordkeeping, test
     methods, etc.) for future measures such as RACT rules, etc.  (Nov 91)

     Control Technique Guidelines (CTG's) for 11 Categories  (Nov 93)

     Control Technique Guideline (CTG) for Aerospace Coating (Nov 93)

     Control Technique Guideline (CTG) for Shipbuilding and Repairing
     Industries (Nov 93)
   RACT for NO, Major Sources: The Amendments contain several
provisions for reducing emissions of oxides of nitrogen (NOJ in
order to  help attain the ozone standard. Subject to certain exceptions
(described below), the State plan must provide for the same controls
for major stationary sources of NOX that apply to major sources of
volatile organic compounds (VOC's). [Section 182(f)]. Accordingly,
(for areas classified as moderate or higher) the State plan must be
revised within two years to require the  implementation of RACT
regulations for major stationary sources of NO, to the same extent
required under section 182(b) (2) (C) and (c), (d), and (e) for
sources of VOC's. (See "RACT on VOC Sources" above.)

   Under section 182(f), the requirements for NOX reductions are not
applicable (1) if EPA determines that the air quality benefits are
greater in the absence of the NOX reductions or (2) if the reductions
do not contribute  to attainment of the ozone standard (for an area
that is not within  an ozone transport region) or produce net air
quality benefits (for an area that is within an ozone transport
region).  EPA, in conjunction with the National Academy of
                    23

-------
Sciences, is required to complete (including allowing for a public
comment period) within 15 months of enactment (by February  15,
1992) a study that examines the role of NOX emissions reductions
and the extent to which the reductions may be counterproductive in
achieving ozone attainment in different areas. [Section 185B.]  Any
person may petition EPA under section  182(f)(3) to determine the
applicability of the exceptions after the final EPA study is  submitted
to Congress.  EPA is to grant or deny the petition within 6 months
after submittal.

   Guidance:

   •  EPA study (in conjunction with the National Academy of Sciences) on the
     role of NO, emissions reductions and the extent to which the reductions
     may be counterproductive in achieving ozone attainment in different areas.
     (submitted to Congress by February 15, 1992 - 15 months after enactment)
   Stage II:  Each state must submit a SIP revision requiring, in all
moderate, serious, severe, and extreme ozone nonattainment areas,
all owners and operators of gasoline dispensing systems to install
and operate  a gasoline vapor recovery system ("Stage II") used for
the refueling of motor vehicles. [Section 182(b)(3)(A)]. Only
facilities that sell more than 10,000 gallons of gasoline per month
(gal/mo) are subject to these provisions.  Independent small business
gas marketers  are subject to these provisions only if they sell more
than 50,000 gal/mo.

   After the  State adopts these SIP revisions, the following facilities
must implement Stage n within the listed time periods:

   (1)  6 mos.~ facilities which began construction after November
       15, 1990;

   (2)  1 year  - facilities dispensing at least 100,000 gal/mo based
       on the  average monthly sales for the two years    preceding
       the date the  state adopts Stage n requirements and which did
       not begin construction after November 15,  1990;

   (3)  2 years ~ all other facilities.

   Once EPA promulgates standards  under Section 206(a)(6)
requiring that certain  vehicles be manufactured with "onboard"
vehicle emission control systems, moderate areas are no longer
subject to Stage II requirements. EPA may waive or revise Stage II
                   24

-------
requirements for serious, severe and extreme areas after EPA
determines that onboard controls are in wide-spread use within the
existing motor-vehicle fleet

   Guidance:

   •  Background information on control effectiveness of Stage II vapor recovery
     systems (Nov 91)
  Enhanced I/M Programs:  The CAAA require all serious and
above ozone areas and moderate CO areas with a design value
greater than 12.7 ppm to adopt enhanced inspection and maintenance
(I/M) programs. These programs are due within two years of
enactment for all urbanized areas with a 1980 population of 200,000
or more. The programs are to comply with EPA guidance (that will
be issued within one year of enactment) that defines a performance
standard and establishes program administration features. Enhanced
I/M programs  must include computerized emission analyzers, certain
waiver restrictions, and, generally, enforcement through  vehicle
registration denial  and annual centralized testing and inspection.
This requirement is contained in section 182(c)(3) for ozone areas
and in section 187(a)(6) for CO areas.

   Guidance:

   •  Revised guidance on motor vehicle inspection and maintenance (I/M)
     programs, including guidance on enhanced I/M (expected to be available by
     Aug 91)
     California Pilot Program for Clean Fuels and "Opt-In" by Other
States:  California must submit a SIP revision requiring that
sufficient clean alternative fuel be produced and distributed in
California to support the Title  II mandatory clean-fuel vehicle pilot
program, which begins in model year  1996. This requirement is
contained in section 249(c). The revision must require an adequate
number of supply locations with sufficient geographic distribution to
ensure convenient refueling of such vehicles.

   Any serious, severe or extreme ozone nonattainment area may
opt-in to the pilot program by  submitting a revision providing
incentives for the sale or use of clean-fuel vehicles and clean
alternative fuels as mandated in the California program. This
requirement is contained in section 249(f). Such revisions must
                    25

-------
comply with EPA regulations to be promulgated within two years of
enactment, and may not take effect until one year after a state has
notified vehicle manufacturers and fuel suppliers of such
requirements.

  The incentives may include a registration fee on non-clean-fuel
vehicles, provisions to exempt clean-fuel vehicles from certain
transportation control measures, or preferential parking provisions
for clean fuel vehicles.  The revisions may not include any
production or sales  mandates for clean-fuel vehicles or clean
alternative fuels, and may not provide sanctions or penalties for
failure to produce or sell such vehicles or fuels.  In addition, the
incentives may not  apply to fleet vehicles covered by the clean-fuel
vehicle fleet program.

  Guidance:

  •  Guidance for States to Opt-In to California Pilot Program (Nov 92)


  Substitutes for Clean-Fuel Vehicle Program:  Certain serious,
severe, and extreme ozone nonattainment areas (as well as CO areas
with design values of 16.0 ppm or higher) are required to submit
SIP revisions with clean-fuel vehicle fleet programs (as required by
section 296) by May 15, 1994 (42 months after enactment). These
programs  require fleet operators with over 10 vehicles to start
phasing in the use of "clean fuel vehicles" on a set schedule. Areas
with 1980 populations of 250,000 or more must adopt the programs.

  If an area chooses to adopt and  implement another program
instead of the clean-fuel vehicle fleet program or the California pilot
program, it must submit a SIP revision containing the substitute
measure by November 15, 1992. The substitute measures are to
comply with guidance to be issued by the EPA and must
demonstrate that reductions in ozone precursor and toxic  air
emissions are equal to those that would be achieved under the clean-
fuel  vehicle program. Substitute measures may not include any
measures  otherwise required by the CAAA. Additional discussion of
the clean-fuel vehicle fleet program is provided later in this
document

   Guidance:

   •  Clean-fuel vehicle fleet programs for serious ozone areas with populations >
     250,000 (Nov 91)
                   26

-------
  Transportation Control Measures (TCM's):  For all severe and
extreme ozone areas (and serious CO areas and Denver, CO, as
discussed below), plans must include enforceable transportation
control measures to offset any growth in emissions from growth in
vehicle miles traveled and number of vehicle trips, and to achieve
reductions in mobile source emissions as necessary to comply  with
the periodic emission reduction requirements of the CAAA. These
measures are due within two years of enactment.  States  should
choose from measures listed in section  108(f) and should ensure
adequate access to areas of high population without relocating
emissions and congestion. This requirement is contained in section
182(d)(l)(A) for ozone areas [and section 187(b)(2) for CO areas
(section 187(a)(2)(B) for Denver)].

  Guidance:

  •  Evaluation, development, and implementation of transportation control
     measures (Nov 91)

  •  Transportation control measures: State implementation plan guidance (final
     report) (Sep 90)
   Employer Trip-Reduction Programs: For all severe and extreme
ozone areas, the SIP's submittal must include employer trip-
reduction programs. These programs must require employers of 100
or more employees to implement programs that will increase
average passenger occupancy per commuting vehicle during rush
hours by at least 25% above the average occupancy rate in the area
at the time of SIP submittal. The programs are to be consistent with
EPA guidance, which may specify average occupancy rates for
various locations.  The SIP submittals that include these programs
are due within two years of enactment, and must require subject
employers  to submit compliance plans by the fourth year after
enactment  that demonstrate that the employer will be in compliance
by the sixth year of enactment. This requirement is contained in
section 182(d)(l)(B).

   Guidance:

   •  Section 108(0 transportation control measure (TCM) information document
     on employer trip-reduction programs (Nov 91)
                   27

-------
                         New Source Review (NSR) Program:  All ozone nonattainment
                       areas must submit within 2 years of enactment NSR programs that
                       comply with the provisions of section 182 that apply to their
                       classification. These requirements will be delineated in rules to be
                       proposed by EPA by September 1991.

                         Under section  182(f), the State plans must also apply new source
                       review (NSR) to  major new sources of NOX to the same extent
                       required for major new sources of VOC's. [sections 182(a)(2)(C),
                       (c), (d), and (e)]  NOX sources in NO2 attainment areas must also
                       meet the  PSD requirements.

                         Guidance:

                         • Permit programs for stationary sources NSR prevention of significant
                           deterioration and nonattainment area guidance notebook (Jan 88)

                         • Proposed NSR/PSD rule implementing Clean Air Act related changes
                           (Sep 91)

                         • Model permits for VOC sources (Oct 91)

                         • Final NSR/PSD rule changes which implement CAAA related changes
                           (Aug 92)

                         • NSR/PSD Guidance Documents: Draft NSR workshop manual dtd. October
                            1990 (Dec 90)

                         • NSR/PSD construction permit transitional guidance (Mar 91)
Requirements for the      Some of the above control measures for nonattainment areas must
   Transport Region    also be implemented throughout the ozone transport region6 (except
                       in the nonattainment areas, in which more stringent requirements
                       would be in effect). These measures are as follows:

                         RACT on VOC sources:

                            - RACT rules for each stationary source category covered by a
                              CTG issued before enactment.
                            - RACT on major VOC sources not covered by a CTG. Major
                              is defined as having a potential to emit at  least 50 tons per
                              year.
                            - A commitment to adopt RACT rules for source categories
                              covered by CTG's issued after enactment
                                          28

-------
                  RACT on NO, sources:

                     - Because of the section 182(f) requirement for applying the
                      same subpart 2 provisions that apply to major VOC sources
                      to major NO, sources, RACT rules must be developed for
                      major NO, sources. Exemptions from the NO, requirement
                      are available if the NO, reductions would not produce net
                      ozone air quality benefits in the region [as  contained in
                      section  182(0]. A 100-ton major NO, source definition
                      applies  in the region, except for NO, sources located in
                      serious  areas (50 tpy) and severe areas (25 tpy).

                  NSR on VOC and NO. sources:

                     - The New Source Review (NSR) program must apply
                      throughout the region to VOC and NO, sources. The
                      definitions of major source for VOC and NO, sources are the
                      same as the VOC and NO, definitions used for RACT
                      requirements in the region. Exemptions from the NO,
                      requirement are available if the NO, reductions would not
                      produce net ozone air quality benefits in the region [as
                      contained in section 182(f)]«

                  Enhanced I/M:

                     - For areas within an ozone transport region, all MSA's or
                      CMSA's with populations of 100,000 or more must have
                      enhanced I/M programs, even if they are designated
                      attainment or unclassifiable for ozone. This requirement  is
                      contained in section 184(b)(l)(A).
Additional CO     VMT Forecast:  For all moderate CO areas with a design value
 Requirements   above 12.7 ppm, states must forecast vehicle miles travelled (VMT)
                for each year until the projected attainment date and subsequently
                update the forecasts annually, including estimates of actual VMT in
                each past year. In addition, plans must contain contingency measures
                to take effect automatically if actual VMT levels or updated
                projections exceed the previously projected levels  (see discussion
                below). The VMT forecasts must comply with EPA guidance to be
                promulgated within six months of enactment in consultation with the
                Department of Transportation.  This requirement is contained in
                sections 187(a)(2) and (3).


                                   29

-------
   Guidance:

   •  Guidance on forecasting vehicle miles of travel (VMT) (May 91)


   NSR Program:  All CO areas with design values above 12.7 ppm
must submit NSR programs at the time their attainment
demonstrations are due (i.e., within 2 years of enactment—see
discussion below). The provisions of these plans must be developed
in accordance with the requirements of sections 172(c)(5) and 173.
The rules to be proposed by EPA by September 1991 will also
delineate the requirements for CO NSR programs. The General
Preamble will describe the schedule for adopting  NSR rules in other
CO areas (i.e., those with design values at or below 12.7 ppm).

   Guidance:

   •  Permit programs for stationary sources NSR prevention of significant
     deterioration and nonattainment area guidance notebook (Jan 88)

   •  Proposed NSR/PSD rule implementing Clean Air Act related changes
     (Sep 91)

   •  Model permits for VOC sources (Oct 91)

   •  Final NSR/PSD rule changes which implement CAAA related changes
     (Aug 92)

   •  NSR/PSD Guidance Documents: Draft NSR workshop manual dtd. October
     1990 (Dec 90)

   •  NSR/PSD construction permit transitional guidance (Mar 91) (see Appendix)
   CO Areas with Significant Stationary Source Contributions:  Any
CO area may apply to the Administrator for case-by-case waivers of
any requirements pertaining to transportation controls, I/M or
oxygenated fuels where the Administrator determines that mobile
sources of CO  do not contribute significantly to CO levels. For
serious areas in which stationary sources do make a significant
contribution to CO levels (as determined under guidance to be
issued by EPA by May 15, 1991), each such area must submit
within 2 years  after enactment (November 15, 1992) a plan revision
to lower the major stationary size cutoff to 50 tons per year.  This
provision is contained in section 187(c)(l).
                    30

-------
  Guidance:

  •  Guidelines for and rules determining whether stationary sources contribute
     significantly to CO levels in an area (May 91)
  Enhanced I/M:  The CAAA require moderate CO areas with a
design value greater than 12.7 ppm to implement enhanced I/M
programs in urbanized areas with a 1980 population of 200,000 or
more. The programs are to comply with EPA guidance (to be
issued within one year of enactment)  that defines a performance
standard and establishes  program administration features.  Enhanced
VM programs must include computerized emission analyzers, certain
waiver restrictions, enforcement through vehicle registration denial,
and, generally, annual centralized testing and inspection. This
requirement is contained in section 187(a)(6) for CO areas.

  Guidance:

  •  Revised guidance on motor vehicle inspection and maintenance (I/M)
     programs, including guidance on enhanced I/M (Aug 91)


  Contingency Measures:  Section 187(a)(3) requires that all carbon
monoxide (CO) nonattainment areas with a design value greater than
12.7 ppm must submit a plan revision containing contingency
measures. The contingency measures  would be implemented if the
estimate of actual VMT  which is submitted in an annual report
exceeds the most recent  prior forecast of VMT (discussed above).
[See section 187(a)(2)].  Additionally, failure of an area  to attain the
CO national ambient air quality standard by the applicable
attainment date would also trigger implementation of the
contingency measures. The CAAA state that the contingency
measures are to take effect without further action by the State or
EPA, which indicates that the measures should be pre-adopted by
the State before submittal to EPA. The contingency measures should
be transportation control measures and trip reduction ordinances
directed at reducing VMT and mobile source emissions, but other
types of measures may also be included.

  Guidance:

  •  Contingency Measures (general guidance and specific guidance for ozone
     and CO areas) (Nov 91)
                   31

-------
  Transportation Control Measures (TCM's): Serious CO areas
(and Denver, Colorado) must adopt and implement enforceable
transportation control measures, as specified for certain ozone areas
in section 182(d)(l), to (1) offset any growth in emissions from
increases in vehicle miles traveled and  in numbers of vehicle trips,
and (2) achieve reductions in mobile source emissions as  necessary
to comply with the periodic emission reduction requirements of the
CAAA. States  should choose from measures listed in section 108(f)
and should ensure adequate access to areas of high population
without relocating emissions and congestion. This requirement is
contained in section  187(b)(2) for CO areas [section 187(a)(2)(B) for
Denver].  All CO areas covered by the clean-fuel vehicle fleet
program (except for  New York) as well as Denver must explain why
any section 108(f) measure is not adopted, what emission reduction
measures provide comparable reductions,  or why such reductions  are
not necessary to attain the CO NAAQS.

  Guidance:

  •  Guidance on transportation control measures (TCM's) (Nov 1991)

  Oxygenated Fuels: The CAAA require CO areas to adopt SIP
provisions regulating the oxygen content of gasoline in accordance
with the program prescribed in Tide El7. All CO nonattainment
areas with design value of 9.5 ppm or above must submit revisions
which require that all gasoline sold within the CMSA containing the
nonattainment area (or MSA if the area is not located in a CMSA)
contain at least 2.7 percent oxygen by weight during that portion of
the year in which the area is prone to high CO concentrations. This
requirement is  contained in  section 211(m). The relevant period
during which the program must apply shall be determined by the
Administrator,  and shall  not be less than four months unless the
state demonstrates that a shorter period will suffice to assure that no
CO NAAQS exceedances occur outside of that period. These
programs must take effect by November 1, 1992. The Administrator
can waive or delay these requirements under certain conditions
related to the effect of attainment of any other NAAQS, the
contribution of stationary sources to the nonattainment problem, or
the domestic supply  or distribution capacity for oxygenated fuels.
These conditions as well as other details of the oxygenated fuels
requirement will be addressed in the guidance on the oxygenated
fuels program anticipated to be published in August 1991.
                   32

-------
                         Guidance:

                         •  Guidelines for the implementation of oxygenated fuel programs, including
                           information on the use of marketable credits (Aug 91)

                         Attainment Demonstration: Section 187(a)(7) requires all CO
                      areas with a design value greater than  12.7 ppm to submit  a
                      demonstration that their plans will be sufficient to provide  for
                      attainment by the required deadline and annual emission reductions
                      as necessary to achieve the standard by that date. This demonstration
                      is due by November 15, 1992 (2 years after enactment).

                         Substitutes for Clean-Fuel Vehicle Program: CO areas with
                      design values of 16.0 ppm or higher (as well as certain serious,
                      severe, and extreme ozone nonattainment  areas) are required to
                      submit SIP revisions with clean-fuel vehicle fleet programs (as
                      required by section 296) by May 15, 1994 (42 months after
                      enactment). These programs require fleet operators with over 10
                      vehicles to start phasing in the use of "clean fuel vehicles" on a set
                      schedule. Areas with 1980 populations of 250,000 or more must
                      adopt the programs.

                         If an area chooses to adopt and implement another program
                      instead of the clean-fuel vehicle fleet program or the California pilot
                      program, it must submit a SIP revision containing the substitute
                      measure by November  15, 1992. The substitute measures are to
                      comply with guidance to be issued by the EPA and must
                      demonstrate that reductions in CO and toxic air emissions  are equal
                      to those that would be  achieved under the clean-fuel vehicle
                      program. Substitute  measures may not include  any measures
                      otherwise required by the CAAA.  Additional discussion of the
                      clean-fuel vehicle fleet  program is provided later in this document.

                         Guidance:

                         •  Clean fuel fleet programs for serious ozone areas  with populations >
                            250,000 (Nov 91)


Planning Procedures      Each State with an ozone or carbon monoxide nonattainment area
                      is to review and update the SIP planning procedures or develop new
                      planning  procedures as appropriate. The planning procedures pertain
                      to all implementation plan(s) required  under Part D of the  Act. This
                      action is  to be undertaken jointly with elected officials  of affected
                      local governments. The requirement is contained in section 174 (a).
                                          33

-------
                        State planning procedures must identify the degree of
                      participation in planning and implementation of the SIP by various
                      governmental bodies. That is, the procedures are to set forth which
                      implementation plan elements are to be developed, adopted,
                      implemented and enforced by the state and local governments or
                      regional agencies, or combination thereof.  The procedures must also
                      identify the designated SIP planning agency responsible for
                      preparation of the implementation plan or elements of the plan
                      taking into account the participation determinations stated above.

                        To meet this requirement, EPA is requesting that each  state
                      jointly review  its current SIP planning procedures with officials of
                      affected local governments and submit either 1) a letter to EPA for
                      acceptance which  affirms its current EPA-approved SIP planning
                      procedures without change and describes, at a minimum,  the items
                      previously noted; or, 2) if updating and development are  necessary,
                      a SIP revision containing the newly updated and developed planning
                      procedures.

                        Guidance:

                        •  Transportation control measures: State implementation plan guidance (final
                           report) (Sep 90)

                        •  Update of the June 6, 1978 Transportation Air Quality Guidelines (Aug 91)

                        •  State and local  transportation planning procedures (Aug 91)

                        •  Guidance on consultation on transportation-related aspects of SEPs (Nov 91)
         Actions Due by November 15, 1993 (36 months after enactment)

Plan for Reasonable     Section 182(b)(l) requires all ozone nonattainment areas classified
   Further Progress   moderate and above to submit a plan revision containing additional
        (RFP) (15%   measures as necessary to provide for net reductions in volatile
          reduction   organic compound (VOC) emissions of at least 15 percent during the
       requirement)   first six years after enactment.  The baseline from which the 15
                      percent reduction is calculated is defined as all anthropogenic
                      emissions during calendar year 1990 excluding the emissions that
                      would be eliminated by (1) regulations under the Federal Motor
                      Vehicle Control Program (FMVCP) promulgated by January 1,
                      1990, and (2) gasoline volatility (or RVP--Reid Vapor Pressure)
                      regulations promulgated by November 15,  1990 or required to be

                                         34

-------
promulgated under section 211(h). Emission reductions from the
following types of regulations are not creditable toward the 15
percent progress requirement:

  •  FMVCP regulations promulgated by EPA by January 1,  1990
  •  RVP regulations promulgated by EPA by November 15, 1990
     or required to be promulgated under section 211(h)
  •  Regulations submitted to correct deficiencies in existing VOC
     RACT regulations as required under section 182(a)(2)(A)
  •  Regulations submitted to correct deficiencies in I/M programs
     as required under section 182(a)(2)(B)

  A nonattainment area can achieve  less than the 15 percent
required reductions if the State can demonstrate that (1) the area has
a new source review program equivalent to the requirements in
extreme areas [Section 182(e)], except that "major source" must
include any source which emits, or has the potential to emit, 5 tons
per year of VOC's. Additionally, all  major sources  (down to 5 tons
per year) in the area must have RACT level controls. The plan must
also include all measures which can be feasibly implemented in the
area in light of technological achievability. Finally, the State must
demonstrate that  the plan includes all measures achieved in practice
by sources  in the same source category in nonattainment areas of the
next higher classification. The waiver for the 15 percent progress
requirement cannot apply to nonattainment areas classified as
extreme.

  In addition to the 15 percent progress requirement for reducing
VOC emissions, section 182(b)(l)(A) also requires  that the plan due
by November 15, 1993, provide for specific annual reductions of
VOC and NO, necessary to attain the standard by the applicable
attainment date. States must show in this submittal  that their plans
will reduce VOC and NOX  emissions sufficiently to attain the
standard by the applicable date. (See discussion below regarding
demonstration requirements for serious and above areas.) The
requirement for reductions  in NOX will not apply if EPA determines
that such reductions do not contribute to attainment of the ozone
standard. [Moderate multi-state ozone areas must use a
photochemical grid model for their demonstrations. The General
Preamble will describe the specific requirements and schedules for
these submittals.]

   Section 182(c)(2)(A) specifies that serious and above areas must
base their attainment demonstrations (due 4 years after enactment)
                   35

-------
               on photochemical grid modeling. This demonstration for serious and
               above areas will satisfy the requirement under section 182(b)(l)(A)
               (discussed above) to "provide for specific annual reductions in VOC
               and NO, reductions as necessary to attain" by the applicable
               deadline.

                 Guidance:

                 •  Determining and calculating emission reductions needed to ensure
                    reasonable further progress (15% reduction of VOC emissions within 6
                    years in moderate ozone areas plus 3% annual reductions beginning 6 years
                    after enactment in serious areas) and demonstration of attainment (specific
                    annual reductions in VOC and NO, emissions to attain NAAQS) (Nov 91)

                 •  Guidance (pursuant to section 183(d)) on analyzing cost-effectiveness of
                    different options for emissions controls (This guidance should aid States in
                    developing cost-effective control strategies.) (Nov 91)
Contingency     Section 182(c)(9) requires that all ozone nonattainment areas
   Measures   classified serious or higher must submit a plan revision to provide
               for contingency measures. The contingency measures would be
               implemented if the area fails to meet any applicable milestone under
               Section 182(g). The CAAA state that the contingency measures are
               to take effect without further action by the State or EPA, which
               implies that the measures should be pre-adopted by the State before
               submittal to EPA. Since contingency measures are needed with each
               "set" of measures submitted to meet required milestones, States must
               submit contingency measures within 3 years from enactment for the
               SIP revision that will achieve  the 15 percent VOC emission
               reduction, as required in  section 182(b)(l)(A). Similarly,
               contingency measures must be included in the submittal required
               within 4 years from enactment that will demonstrate attainment and
               show annual average emission reductions equal to at least 3 percent.
               [section  182(c)(2)]

                 Section 172(c)(9) provides general contingency requirements
               which are applicable to moderate ozone areas. These measures
               would be implemented if the area failed to make reasonable further
               progress (RFP) or to attain by the applicable date. The contingency
               measures are required in the 3-year submittal since it is that
               submittal for moderate areas that provides for RFP and attainment of
               the  standard.
                                  36

-------
   Actions Due by November 15, 1994 (48 months after enactment)

   Attainment      Section 182(c)(2) requires that serious and above ozone
Demonstration    nonattainment areas submit an attainment and reasonable further
                 progress (RFP) demonstration within 4 years after enactment. The
                 attainment demonstration must be based on photochemical grid
                 modeling or any other analytical method determined by EPA to be
                 at least as effective. The RFP demonstration must provide for
                 average annual reductions in VOC emissions of at least 3 percent
                 per year (averaged over 3 year periods) until the attainment date.

                    A nonattainment area can achieve less than  the 3 percent per
                 year required reductions if the State can demonstrate that the plan
                 includes all measures which can be feasibly implemented in the
                 area, in light of technological achievability. The State must also
                 demonstrate that the plan includes all measures achieved in practice
                 by sources in the same source category in nonattainment areas of the
                 next higher classification. The waiver for the 3 percent per year
                 progress requirement cannot apply to nonattainment areas classified
                 as extreme. A determination of the waiver from the 3 percent per
                 year requirement will be reviewed at each milestone under 182(g)
                 and revised to reflect the availability of any new  technologies or
                 other control measures for sources in the same  category. The
                 baseline for the 3 percent per year reductions and creditability
                 requirements are the same as for the 15 percent progress
                 requirement under Section 182(b)(l).

                    Emission reductions from NOX sources can be  substituted for
                 VOC emission reductions if the resulting reduction in ozone
                 concentrations is at least as equivalent to that which would result
                 from VOC emission reductions. NO, emission reductions are subject
                 to the creditability provisions under section  182(b)(l)(C) and (D).

                    Guidance:

                    •  Guidance regarding the conditions under which NO, control may be
                      substituted for VOC control or combined with VOC control to maximize the
                      reduction of ozone concentrations (Nov 91)

                    •  Guideline on Air Quality Models, including Supplement B, provides
                      guidance on determining equivalent analytical methods (latest version
                      expected to be published in late 1991)
                                    37

-------
      Contingency      As discussed above under the 3-year submittal requirements for
         Measures    ozone areas, section 182(c)(9) requires ozone nonattainment areas
                     classified serious or higher to submit a plan revision to provide for
                     contingency measures. The contingency measures would be
                     implemented if the area fails to meet any applicable milestone under
                     Section 182(g). The CAAA state that the contingency measures are
                     to take effect without further action by the State or EPA, which
                     implies that the measures should be pre-adopted by the State before
                     submittal to EPA. The 3-year submittal contains contingency
                     measures for measures submitted to meet the 15 percent VOC
                     emission reduction requirement [section  182(b)(l)]. The 4-year
                     submittal contains contingency measures for measures submitted to
                     meet the attainment demonstration  and RFP requirements of
                     section 182(c)(2).
Clean-Fuel Vehicle
   Fleet Programs
  The CAAA contain certain requirements for specified serious
ozone areas to adopt SIP provisions to implement the clean-fuel
vehicle programs prescribed in Title n. This requirement is
contained in section 182(c)(4).

  All serious ozone nonattainment areas with a 1980 population of
250,000 or more, and all CO nonattainment areas with 1980
population of 250,000 or more and design value of 16.0 ppm or
higher (excluding areas where mobile sources do not contribute
significantly to CO exceedances), must submit SIP revisions
providing for clean-fuel vehicle fleet programs by May 15, 1994, (42
months from enactment). This requirement is contained in
section 296.

  The programs must require a specified percentage of fleet
vehicles in model year 1998 and thereafter to be clean-fuel vehicles
and use clean alternative fuels when operating in the area. For light-
duty vehicles and light-duty trucks the required percentage must  be
30% in 1998, 50% in  1999 and 70% in 2000. For heavy-duty trucks
the percentage must be 50% in each such year. Light-duty vehicles
and light-duty trucks for these model years must also meet the Title
II clean-fuel vehicle standards for model year 2001.  If such vehicles
are not available in California in advance of model year 2001, the
phase-in schedules  will be delayed accordingly.

  Some of the major program requirements include: requirements
for fuel providers to make clean alternative fuel available to fleet
                                        38

-------
                       operators; coverage of federal fleets (except certain vehicles certified
                       by the Secretary of Defense on national security grounds);
                       provisions for the issuance of credits (consistent with EPA
                       regulations due 1 year from enactment) for purchasing more vehicles
                       than required or vehicles which meet more stringent standards, or
                       purchasing vehicles prior to the effective date of the program. In
                       addition, certain transportation control measures may not apply to
                       covered fleet vehicles, consistent with EPA regulations due 1 year
                       from enactment.

                         Guidance:

                         •  Clean fuel fleet programs for certain ozone and CO areas with populations >
                            250,000 (Nov 92)

                         •  Regulations regarding the issuance of credits and the applicability of
                            transportation control measures to clean fuel fleets (Nov 91)
 Requirements for the
    Ozone Transport
             Region
  All attainment areas and all nonattainment areas not otherwise
subject to Stage II requirements will be subject to Stage II
requirements or other control measures capable of achieving
comparable emission reductions. [Section 184(b)(2)]. By November
15, 1993, EPA will complete a study identifying control measures
capable of achieving emission reductions comparable to those
achievable by Stage II. Within one year of that time, each state in
an ozone transport region must submit a SIP that reflects  the
implementation of either these comparable measures identified by
EPA or Stage H.
Part 3:  Transition Requirements
Phase II of SIP Calls
  EPA has issued SIP calls under section 110(a)(2)(H) of the Clean
Air Act (prior to the 1990 Amendments) to many areas based on a
finding that the SIP's for those areas were substantially inadequate
to provide for timely attainment of the ozone and/or CO NAAQS8.
In these SIP calls, EPA stated that states should respond in two
phases to produce SIP's that would be adequate to attain and
maintain the standards. EPA first required states, in Phase I of their
response, to update their emission inventories and make corrections
in previously required regulations imposing reasonably available
                                          39

-------
control technology (RACT) on existing stationary sources.  Phase I
responses were due generally in the Fall of 1989.

  EPA has advised states that they could delay submitting Phase n
responses that would include a full attainment demonstration and all
additional regulations necessary to support such demonstrations until
EPA completed its policy on post-1987 nonattainment planning.
Since EPA did not complete its post-1987 ozone/CO policy in
anticipation of passage of the amendments to the Act, EPA has
never set a date for Phase n SIP call responses9. However, the basis
underlying the SIP calls remains valid even under the amended Act.
The SIP's for the  affected areas are still substantially inadequate to
attain the relevant NAAQS. Since the date for submission of Phase I
SIP call responses has already passed, and the amended Act requires
all areas subject to the RACT-correction aspects of the SIP calls to
submit those corrections within six months of enactment, the
requirement for the Phase I response to the SIP calls remains  in
effect. Thus, all areas currently subject to the RACT-correction
aspects of the 1988 and 1989 ozone SIP calls under the 1977  Act
should submit RACT corrections as soon as possible.

  However, as to Phase II SIP call responses, the amended Act
alters both the substantive requirements and submission deadlines
for full attainment demonstrations and their component control
measures. Thus, although the obligation  to submit a SIP adequate to
attain and maintain the NAAQS remains in all SIP call areas, both
the necessary elements of such plans and the timing of the plan
submissions is now governed by the requirements of sections  182
and 187 of the amended Act. EPA therefore will not require Phase
II SIP call response submissions  on any schedule different from the
schedules established by those sections.  States should respond to
Phase n of the SIP calls by making the submissions otherwise
required by sections 182, 184 and 18710.

  It should be noted that section 173(b) of the amended Act
restricts the use of growth allowances in all areas that received SIP
calls under the 1977 Act.  The fact that EPA is not requiring the
submission of separate Phase II SIP call responses does not affect
this provision; all  of these areas remain areas that received SIP calls
under the 1977 Act.
                   40

-------
        Lifting of     The amended Act repeals the provisions found in section
Construction Bans   110(a)(2)(I) of the 1977 Act that authorized EPA to impose a
                    construction moratorium in nonattainment areas that fail to submit
                    plans meeting all of the requirements of Part D of the Act. The
                    amended Act also contains a savings clause in section 110(n)(3) that
                    preserves certain existing construction bans; construction bans
                    remain in place only where imposed by virtue of a finding that  (1)
                    the plan for the area did not contain an  adequate new source review
                    permitting program as required by section 172(b)(6) of the 1977
                    Act, or (2) the plan failed to provide for timely attainment of the
                    SO2 NAAQS.

                      Thus, EPA can not impose or retain in effect any construction ban
                    previously imposed based on a finding that the plan for the area did
                    not demonstrate timely attainment and maintenance of the ozone or
                    CO NAAQS.  EPA will shortly promulgate a rule amending its
                    regulations at 40 CFR 52.24 to clarify the limited applicability of
                    the construction ban and to repeal the individual sections of 40  GFR
                    Part 52 that impose the construction ban in each ozone or CO
                    nonattainment area where  the ban was imposed solely for failure to
                    provide for timely attainment

                      Since the Act no longer authorizes EPA to impose bans on this
                    basis, EPA interprets the Act as repealing these bans by operation of
                    law as of enactment, and considers these amendments to  Part 52 as
                    mere administrative housekeeping responsibilities. EPA will treat
                    areas previously subject to the construction ban under these
                    circumstances as no longer subject to the ban as of enactment.

                      It should be noted that where construction bans were imposed for
                    failure to demonstrate timely attainment of the ozone or CO
                    NAAQS and also for failure to contain  an adequate new  source
                    review permitting program, the ban will remain in effect under  the
                    savings clause unless and until the state has submitted and EPA has
                    approved such a permitting program. However, where the ban was
                    originally imposed based only upon a finding that the plan did not
                    provide for timely attainment and maintenance, even if the area in
                    fact did not have an approved new source review permitting
                    program, the savings clause will not preserve the construction ban
                    since the ban is  only preserved where it was imposed based on  a
                    finding that the plan did not contain an adequate  permitting
                    program. Such areas should of course promptly submit adequate
                    permitting programs, but they will not be subject to a ban in the
                    interim.

                                      41

-------
     SIP Processing
         Procedures
  The amended Act revises the procedures for EPA processing of
SIP revisions.  Under new section 110(k), EPA is to promulgate,
within nine months of enactment, minimum criteria that plan
submissions must meet before EPA is required to act on them.  EPA
promulgated SIP completeness criteria in February 1990
(55 FR 5824), and will now decide whether such criteria are
adequate under the amended Act or whether EPA will supplement
them within nine months. Once EPA has promulgated minimum
completeness criteria, EPA must determine within 60 days of its
receipt of any SIP submission whether the submission is complete
with respect to these criteria. If EPA determines that the submission
is complete, EPA must act on the SIP revision within  12 months of
its determination. However, if EPA determines that the submission
is incomplete, the State is treated as having failed to make the
required submission for purposes of the sanctions provisions of the
Act EPA must also make  a completeness determination with respect
to any required submission within 6 months of the date the State is
required to  make the submission, regardless of the actual date of
submission, if any. Finally, SIP submissions are deemed to be
complete six months after  submission if EPA fails to make any
completeness determination by that date.

  EPA is authorized to approve plans in whole or in part,  to initiate
corrections  to prior approvals without a subsequent submission, and
to conditionally approve SIP revisions  based upon the State's
commitment to adopt enforceable measures within one year. Such
approvals automatically become disapprovals if the commitments are
not subsequently met.
     NSR Transition
Issues and Guidance
  The CAAA make numerous changes to the NSR requirements.
The EPA will publish a regulatory package (propose in September
1991; finalize in August 1992) that will implement these and other
changes to the NSR provisions. To address the many situations
expected to arise in the interim period between passage of the
CAAA and adoption of the final regulations, EPA has issued a
memorandum11 which provides guidance on several  possible issues
(including those particularly in nonattainment areas). This
memorandum is contained in the Appendix.
                                        42

-------
Part 4:  EPA Actions
    Control Measures
  The EPA will be developing a number of guidance materials
regarding the planning and control requirements for States. These
materials include new and revised control technique guidelines
(CTG's), alternative control technique (ACT) documents, and rules
for commercial and consumer solvents. Also to provide assistance in
the adoption and implementation of control measures, EPA will be
operating a RACT/BACT/LAER12 clearinghouse.
         New CTG's     Section  183 of the CAAA requires EPA to issue eleven new
                       control technique guidelines (CTG's) within  three years of
                       enactment, that is, by November 15, 1993. In issuing these
                       guidelines, priority is to be given to those which the Administrator
                       considers to make the most significant contribution to ozone in
                       nonattainment areas. States with ozone nonattainment areas
                       classified as moderate, serious, severe or extreme are to revise their
                       SIPs, by the date specified by EPA in issuing the new CTG, to
                       apply RACT requirements to sources covered by the CTG's.
                       [Section 182(b)(2)].

                         Also by November 15,  1993, EPA is to issue CTG's providing for
                       best available control measures for VOC emissions from aerospace,
                       ship building, and ship repair coatings and solvents.
                       [Section 183 (b)(3) and (4)].
   Alternative Control
    Technology (ACT)
   Under section 183 (c), the Administrator is required to issue
"technical documents" within three years of enactment which
identify alternative controls for all categories of stationary sources
that emit or have the potential to emit 25 tpy of VOC's or oxides of
nitrogen (NOX). The EPA has discussed these ACT documents in a
November 24, 1987 Federal Register Notice, 52 F.R. 45043, 45090.
The documents do not establish a presumptive RACT norm nor do
they recommend a minimum level of control. Instead, they are
information documents that identify control technologies that are
available for a particular source category which a State can use as a
basis for an emission limit based on local needs and circumstances.
                                         43

-------
  Commercial and
 Consumer Solvent
  Study and Rules
  The EPA is to complete a study within three years of enactment
of VOC emissions from consumer and commercial products in order
to determine their potential to contribute to ozone levels which
violate the NAAQS. [Section 183 (e)(2)]. The study  is also to
establish criteria and priorities for regulating the products, based on
factors such as the benefits and commercial demand for the
products, health or safety functions, emission of highly reactive
VOC's,  products subject to the most cost-effective controls,  and the
availability of alternatives of comparable cost.  Based on the study,
EPA is to regulate products that account for  80% of VOC emissions
from consumer or commercial products in ozone nonattainment
areas. The products are to be divided into four groups and a group
is to be  regulated every two years following  the study.

  States may develop procedures for implementing and enforcing
the EPA regulation, and if the procedures are adequate, EPA is  to
approve the procedure. The EPA  may also issue CTG's in lieu of
federal regulations if EPA determines the CTG's will be
substantially as effective.
RACTIBACTILAER
     Clearinghouse
  Under section 108(h), EPA will continue to maintain a central
database to make information available to the States and public on
emission control technology, including information from state plans
requiring permits.
      Revisions of
    Existing CTG's
  Within 3 years, the Agency is to review and, if necessary, revise
any CTG's in effect at that time, and to continue to do so
periodically thereafter. [Section 183 (b)(l)].
                                       44

-------
ENDNOTES
1. These classifications, in turn, triggered (i) the 45-day process in which States could request additional time to
study the boundaries for ozone and CO nonattainment areas that were classified upon enactment as serious, severe,
or extreme and (ii) the 90-day opportunity for the Administrator to  consider adjusting the  classification  for
nonattainment areas under the 5 percent provision (under which an area whose air quality placed it within 5 percent
of the next higher or lower classification could be reclassified to that classification). Since actions related to these
processes have already occurred, the discussion of the actions is limited  in this document.

2 . Areas newly designated to nonattainment in this 240-day process will be classified at the conclusion of this
process, and their classification will in turn trigger (i) the 45-day process regarding nonattainment boundaries for
certain ozone and CO areas classified  as serious or above and (ii) the 90-day opportunity  for the Administrator to
consider adjusting the classification for nonattainment areas under the S percent provision (under which  an area
whose air quality placed it within 5 percent of the next higher or lower  classification could be reclassified to that
classification).

3 . Similar situations can arise for CO nonattainment areas, but  the CAAA did not specifically address such cases.
The General Preamble will explain EPA's approach for dealing with these areas. In general, EPA expects these areas
to be subject to existing subpart 1  of  part D requirements but not to the new requirements of subpart 3 (i.e., the
requirements in section 187). Such areas would also be subject to the redesignation procedures and requirements that
will be described in the General Preamble.

4 . The EPA is required to publish revised I/M guidance within 1 year after enactment (i.e., by November 15, 1991);
however, such guidance is expected to be published by August  1991.

5 . The commission is composed of the Governors of the affected  States (or their designees), State air pollution
control officials (appointed by the Governors), the EPA Administrator  (or his designee), and the EPA Regional
Administrators  included in the affected transport region (or their designees).

6. The CAAA established an ozone transport region comprising Connecticut, Delaware,  Maine, Maryland,
Massachusetts,  New  Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and the CMSA
including Washington, D.C. These States (and the Washington, D.C. CMSA) must submit the controls described here.
Should other transport regions be established in the future, States  in those regions would have 9 months to submit
these measures.

7 . The language in Title II actually applies the oxygenated fuels requirement to most CO  areas rather than only to
those in serious areas.

8 . These SIP calls were issued in  1988 and 1989 (53 FR 34500 and 55 FR 30973).

9 . EPA was compelled to set Phase II  response deadlines for nonattainment areas in New Jersey, New York, Boston
and San Francisco pursuant to litigation in these areas. These areas are currently under an obligation to make such
submissions by September 30, 1991.

10 . In addition, EPA is altering the Phase II response schedules previously established for New Jersey, New York,
Massachusetts and California. Rather  than making such submissions by September 30, 1991, these areas should
respond to Phase II of the SIP calls by making the submissions required by sections  182 and 187.
                                                   45

-------
11. Memorandum from John S. Seitz, Director, Office of Air Quality Planning and Standards, U.S. Environmental
Protection Agency, to EPA Regional Air Division Directors on "New Source Review (NSR) Program Transitional
Guidance," dated March 11, 1991.

12 . RACT — reasonably available control technique; BACT - best available control technology; LAER - lowest
achievable emission rate.
                                                 46

-------
                         Appendix
EPA Guidance on Existing RACT Requirements

EPA Memorandum: "New Source Review (NSR) Program Transitional
Guidance"

Guidance for State Submittals under the Clean Air Act of 1990
                             47

-------
     EPA  Guidance on  Existing  RACT Requirements
Proposed Policy on Approval of Post-1987 Ozone and Carbon Monoxide Plan Revisions
for Areas Not Attaining the NAAQS, including Appendix D — Discrepancies and
Inconsistencies Found in Current SIPs, published in the Federal Register, 52 FR
45043,45049 (November 24, 1987).

Notice of SIP Inadequacy and Call for SIP Revision-Information Notice, 53 FR 34500
(September 7, 1988) [1988 SIP Call], and 55 FR 30973 (July 30, 1990) [1990 SIP Call].

Issues relating to VOC Regulations, Cutpoints, Deficiencies and Deviations [generally
referred to as the Bluebook]; notice given in 1988 SIP Call, 53 FR 34500, 34507
(September 7, 1988) and 1990 SIP Call, 55 FR 30973, 30975 (July 30, 1990).
1984 Guidance Document for Correction of Part D SIPs for Nonattainment Areas (Notice
of Availability published in 49 FR 18827, 18828 (May 3, 1984)).

Final Policy on SIPs; Approval of 1982 Ozone and CO Plan Revisions for Areas Needing
and Attainment Date Extension, published in 46 FR 7182, 7186 (January 22, 1981).

April 4, 1979 Notice on SIPs; General Preamble for Proposed  Rulemaking on Approval on
Plan Revisions for Nonattainmemt Areas (44 FR 20371).

September 17, 1979 Notice—Supplement on Control Technique Guidelines (44 FR 53761).

May 19, 1978 Notice of Policy Memorandum (43 FR 21673).

-------
          UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                Office of Air Quality Planning and Standards
                Research Triangle Park, North Carolina 2771 1
                          MAR I I  I99I
MEMORANDUM

SUBJECT:  New Source Review  (NSR) Program Transitional Guidance

FROM:   /-John S. Seitz, Directo^C^^rv^
       P (Office of Air Quality Planning and\Standards (MD-10)
       I/
TO:       Addressees


     The Clean Air Act Amendments of  1990 (1990 Amendments)  make
numerous changes to the NSR  requirements of the prevention of
significant deterioration (PSD) and nonattainment area programs.
The 1990 Amendments create new and expanded nonattainment areas,
extend PSD coverage to current Class  I  area boundaries,  and
mandate a PSD exemption for  certain hazardous air pollutants.
The Environmental Protection Agency (EPA) intends to propose by
September of this year a regulatory package that will implement
these and other changes to the NSR provisions.   Final adoption  of
these revised regulations is projected  for August 1992.   In the
interim period between passage of the 1990 Amendments and
adoption of the Agency's final regulations, EPA expects  that
numerous issues regarding the 1990 Amendments will arise.  This
memorandum sets forth the Agency's position on the most  important
of these transitional issues involving  the NSR program.

     This guidance document  does  not  supersede existing  State
regulations or approved State implementation plans.  However, in
some cases, it calls upon States  to implement their NSR  programs
in a manner consistent with  provisions  of the 1990 Amendments
that are applicable immediately and with the requirements that
flow directly from these provisions.  Nonetheless, the policies
set out in this transition memorandum are intended solely as
guidance and do not represent final Agency action.  They are not
ripe for judicial review for this reason.  Moreover, they are not
intended, nor can they be relied  upon,  to create any rights
enforceable by any party in  litigation  with the United States.
The EPA officials may decide to follow  the guidance provided in
this memorandum, or to act at variance  with the guidance, based
on an analysis of specific circumstances.  The Agency also may
change this guidance at any  time  without public notice.

     The Regional Offices should  send this guidance document to
their States.  Questions from States  and applicants concerning
specific issues and cases should  be directed to the appropriate
EPA Regional Office.  If you have any general questions, please
contact Mr. Michael Sewell of the New Source Review Section  at
FTS 629-0873 or  (919) 541-0873.

Attachment

-------
Addressees
Director, Air, Pesticides, and Toxics Management Division,
  Regions I, IV, and VI
Director, Air and Waste Management Division, Region II
Director, Air Management Division, Regions III and IX
Director, Air and Radiation Division, Region V
Director, Air and Toxics Division, Regions VII, VIII, and X

cc:  J. Calcagni
     R. Campbell
     W. Laxton
     E. Lillis
     J. Rasnic
     L. Wegman
     J. Weigold
     NSR Contacts

-------
          New Source Review (NSR) Transitional Guidance


Toxics and National Emissions Standards for Hazardous Air
Pollutants fNESHAPS) Issues


1.   Section 112 Hazardous Air Pollutants are No Longer
     Considered Regulated Pollutants Under Prevention of
     Significant Deterioration (PSD), but NESHAPS Still Apply

          Under the 1977 Amendments to the Clean Air Act (Act)
     and regulations issued thereunder, the PSD requirements of
     the Act apply to all "major" new sources and "major"
     modifications, i.e., those exceeding certain annual tonnage
     thresholds [see 40 CFR 52.21(b)(1)(i) and (b)(2)(i)].
     Typically, new sources and modifications become subject to
     PSD because they exceed the specified tonnage threshold for
     a-criteria pollutant, i.e., a pollutant for which a national
     ambient air quality standard (NAAQS) has been established
     under section 109 of the Act.  Once a new source or
     modification is subject to PSD, the PSD requirements apply
     to every pollutant subject to regulation under the Act that
     is emitted in "significant" quantities (or, in the case of a
     major modification, for which there is a significant net
     emissions increase) [see 40 CFR 52.21(b)(23) and (i)(2)].
     Under the 1977 Amendments, best available control technology
     (BACT) and other PSD requirements apply not only to
     emissions of criteria pollutants but also to emissions of
     pollutants regulated under other provisions of the Act, such
     as section 111 or 112.  This regulatory structure was
     altered by the 1990 Amendments.

          Title III of the 1990 Amendments added a new
     section 112(b)(6) that excludes the hazardous air pollutants
     listed in section 112(b)(l) of the revised Act  (as well as
     any pollutants that may be added to the list) from the PSD
     (and other) requirements of Part C.  Thus, because they are
     on the initial Title III hazardous air pollutants list, the
     following pollutants, which had been regulated under PSD
     because they were covered by the section 112 NESHAPS or
     section 111 new source performance standards (NSPS) program,
     are now exempt from Federal PSD applicability:

             arsenic
             asbestos
             benzene (including benzene from gasoline)
             beryllium
             hydrogen sulfide  (H2S)
             mercury
             radionuclides  (including radon and polonium)
             vinyl chloride.

-------
     The Title III exemption applies to final Federal
PSD permits (i.e., those issued in final form and for
which administrative appeals, if any, under
40 CFR 124.19 have been exhausted) issued on or after
the date of enactment of the 1990 Amendments
(November 15, 1990).  For Federal PSD permit
applications now under review by either an EPA Regional
Office or a delegated State, PSD permit requirements do
not apply to the pollutants exempted by Title III.  For
Federal PSD permits containing PSD requirements for the
pollutants exempted by Title III issued on or after
November 15, 1990, the permittee may request a revision
(e.g., removal of a BACT limit for benzene) to their
PSD permit to reflect the Title III exemption from
Federal PSD applicability.

     Note that pursuant to section 116 and the preservation
clause in section 112(d)(7) of the amended Act, States with
an approved PSD program may continue to regulate the
Title III hazardous air pollutants now exempted from Federal
PSD by section 112(b)(6) if the State PSD regulations
provide an independent basis to do so.  These State rules
would remain in effect unless a State revised them to
provide similar exemptions.  Additionally, the Title III
pollutants continue to be subject to any other applicable
State and Federal rules; the exclusion is only for Part C
rules.

     Finally, section 112(q) retains existing NESHAPS
regulations by specifying that any standard under section
112 in effect prior to the date of enactment of the 1990
Amendments shall remain in force and effect after such date
unless modified as provided in the amended section.
Therefore, the requirements of 40 CFR 61.05 to 61.08,
including preconstruction permitting requirements, for new
and modified sources subject to existing NESHAPS regulations
are still applicable.

     In summary, the pollutants currently regulated
under the Act as of March 1991 that are still subject
to Federal PSD review and permitting requirements are:

        carbon monoxide
        nitrogen oxides
        sulfur dioxide
        particulate matter and PM-10
        ozone (volatile organic compounds)
        lead (elemental)
        fluorides
        sulfuric acid mist
        total reduced sulfur compounds (including H2S)
      •  CFC's 11, 12, 112, 114, 115

-------
          •   halons 1211, 1301, 2402
          •   municipal waste combustor (MWC) acid gases, MWC
             metals and MWC organics.

2.   Hazardous Air Pollutants that are Regulated as One Component
     of a More General Pollutant Under Other Provisions of the
     Clean Air. Act are Still Regulated

          Any hazardous air pollutants listed in
     section 112(b)(l) which are regulated as constituents of a
     more general pollutant listed under section 108 of the Act
     are still subject to PSD as part of the more general
     pollutant, despite the exemption in Title III.  For example,
     volatile organic compounds (VOC's) (a term which includes
     benzene, vinyl chloride, methanol, toluene, methyl ethyl
     ketone, and thousands of other compounds) are still
     regulated as VOC's (but not as individual pollutants such as
     benzene, etc.) under the PSO regulations because these
     pollutants are ozone precursors, not because they are air
     toxics.  Also, particulates (including lead compounds and
     asbestos) are still regulated as particulates (both PM-10
     and particulate matter) under the PSD regulations.  Lead
     compounds are exempt from Federal. PSD by Title III, but the
     elemental lead portion of lead compounds (as tested for in
     40 CFR Part 60, Appendix A, Method 12) is still considered a
     criteria pollutant subject to the lead NAAQS and still
     regulated under PSD.

3.   Toxic Effect of Unregulated Pollutants Still Considered in
     BACT Analysis

          Based on the remand decision on June 3, 1986 by the EPA
     Administrator in North County Resource Recovery Associates
     (PSD Appeal No. 85-2), the impact on emissions of other
     pollutants, including unregulated pollutants, must be taken
     into account in determining BACT for a regulated pollutant.
     When evaluating control technologies and their associated
     emissions limits, combustion practices, and related permit
     terms and conditions in a BACT proposal, the applicant must
     consider the environmental impacts of all pollutants not
     regulated by PSD.  Once a project is subject to BACT due to
     the emission of nonexempted pollutants, the BACT analysis
     should therefore consider all pollutants, including
     Title III hazardous air pollutants previously subject to
     PSD, in determining which control strategy is best.

-------
PSD Class I Boundary Issues
     PSD Applicability Coverage Changes as Class I Area
     Boundaries Change

          Sections 162(a) and 164(a) of the amended Act specify
     that the boundaries of areas designated as Class I must now
     conform to all boundary changes at such parks and wilderness
     areas made since August 7, 1977 and any changes that may
     occur in the future.  The EPA does not believe that Congress
     intended to create the turmoil which would occur if this
     redesignation required the modification of permits issued
     between August 7, 1977 and November 15, 1990, or the
     resubmission and reevaluation of complete permit
     applications submitted prior to enactment of the 1990
     Amendments.  Thus, for this reason, applications considered
     complete prior to November 15, 1990 should be processed as
     submitted without regard to the new Class I area boundaries.
     Exceptions to this general policy are in the areas of
     increment consumption and air quality related values
     (including visibility), as discussed below.

          For an applicant who submitted a complete PSD
     application prior to November 15, 1990, if all other PSD
     requirements are met, a permit may be issued based on the
     Class I analysis as submitted in the application, unless the
     reviewing authority finds, on a case-by-case basis, that
     additional analysis is needed from the applicant to address
     suspected adverse impacts or increment consumption problems
     due to the expanded boundaries of the Class I areas.  Any
     existing increment violations in the new boundaries of
     Class I areas must be remedied through a SIP revision
     pursuant to 40 CFR 51.166(a)(3).

          The PSD applications not considered complete before
     November 15, 1990 must consider the impact of both existing
     sources and the new or modified source on the Class I areas
     as defined by the 1990 Amendments.  .Thus, the complete
     application must consider the impacts on the entire Class I
     area based upon the boundaries in existence on the date of
     submittal of a complete application; as before, if a Class I
     boundary changes before the permit is issued, the reviewing
     authority may find, on a case-by-case basis, that additional
     analysis is needed from the applicant to address suspected
     adverse impacts or increment consumption problems due to
     expanded Class I area boundaries.

-------
NSR Nonattainment Issues


1.   NSR Construction Permit Requirements in Nonattainment Areas

          In many States, the existing approved Part D permit
     program by its terms covers all designated nonattainment
     areas in the State, so a Part D permit program will
     automatically apply to the new and expanded nonattainment
     areas which are established under provisions of Title I of
     the 1990 Amendments.  Thus, until new rules are adopted for
     these new or expanded nonattainment areas, States should
     apply the requirements of their existing approved Part D
     permit program.  However, in other States, a Part D program
     may be limited to specified areas and does not apply to new
     or expanded areas.  In these areas, States must implement a
     transitional permitting program until their existing Part D
     programs are revised to meet the requirements of the 1990
     Amendments and expanded to cover all nonattainment areas in
     the State.  Otherwise, both the goals of Part D and
     Congress' intent in creating new or expanded nonattainment
     areas will be frustrated.

          The EPA regulations already provide for these new or
     expanded designated nonattainment areas because the Emission
     Offset Interpretative Ruling (40 CFR Part 51, Appendix S)
     governs permits to construct between the date of designation
     and the date an approved Part D plan is made applicable to
     the new nonattainment area [see 40 CFR 52.24(k)].  Until a
     State's new Part D plan is approved by EPA, if a State
     wishes to issue a permit for a major stationary source or
     major modification in a new or expanded designated
     nonattainment area, the State should comply with the
     requirements of Appendix S.  Among other things, Appendix S
     requires a major source seeking to locate in a nonattainment
     area to (1) meet the lowest achievable emission rate for
     such source, (2) provide offsets from existing sources in
     the area, and  (3) show that the offsets will provide a
     positive net air quality benefit (see 40 CFR Part 51,
     Appendix S, section IV.A).  The EPA believes that in order
     to carry out the intent of Appendix S, offsets should be
     required for sources in all categories and in all instances
     should be calculated on a tons per year basis (see
     40 CFR Part 51, Appendix S, section IV.C).

          Of course, neither Appendix S nor the existing NSR
     rules incorporate the NSR changes mandated by Title I of the
     1990 Amendments such as lower source applicability
     thresholds, increased emissions offset ratios, new
     definitions of major stationary source, and (for ozone
     nonattainment  areas) requirements for nitrogen oxides (NOx)

-------
                           6

control and NOx emissions offsets.  However, the 1990
Amendments require States to submit to EPA new NSR permit
program rules for ozone nonattainment areas by November 15,
1992; for PM-10 nonattainment areas by June 30, 1992; and
for most carbon monoxide (CO) nonattainment areas no later
than 3 years from the date of the nonattainment designation.
The EPA interprets this as an expression of congressional
intent not to mandate that States adhere to the more
stringent Title I NSR requirements in nonattainment areas
during the time provided for State implementation plan (SIP)
development.  Thus, for NSR permitting purposes in
nonattainment areas, the new NSR requirements in Title X are
not in effect until the States, as required by the Act,
adopt NSR permit program rules to implement the Title I
provisions.  In addition, EPA encourages any State having
adequate authority for early implementation of the NSR
changes to do so as soon as possible.

     If States fail to submit to EPA the new NSR permit
program rules for nonattainment areas by the deadlines in
the amended Act, EPA intends to impose in these
nonattainment areas a Federal implementation plan (FIP)
embodying such requirements.  Currently, EPA intends to
propose revised NSR regulations at 40 CFR Part 52 that would
implement the new Title I NSR requirements under a FIP in a
State if that State's revised NSR rules to implement Title I
are not submitted in approvable form to EPA and made
effective within the State by the deadlines established by
the 1990 Amendments.

     The area designation in effect on the date of permit
issuance by the reviewing agency determines which
regulations (Part C or Part D) apply to that permit.  In
other words, the PSD permit regulations apply to pollutants
for which the area is designated as attainment or
unclassifiable, and the NSR nonattainment permit regulations
apply to pollutants for which the area is designated
nonattainment [see 40 CFR 51.166(i)(3) and (5); and
40 CFR 52.21(i)(3) and (5)].  Under these regulations, a PSD
permit for a pollutant cannot be issued in an area that is
designated nonattainment for that pollutant.  For the
situation where a source receives a PSD or other permit
prior to the date the area is designated as nonattainment,
the permit remains in effect as long as the source commences
construction within 18 months after the date of
nonattainment designation of the area, does not discontinue
construction for more than 18 months, and completes
construction within a reasonable time [see 40 CFR 52.24(g)
and  (k)].  Although the PSD regulations provide for
extension of these deadlines, no extension would be
appropriate where the area has been designated as
nonattainment following permit issuance.  Accordingly, if

-------
any of these construction provisions are not met, the PSD
permit or other permit will not be extended, and the source
(if subject to the nonattainment provisions) must obtain a
nonattainment permit prior to commencing (or continuing)
construction.

     The 1990 Amendments create some new and expanded
nonattainment areas by operation of law.  other
nonattainment area changes are expected as the States and
EPA complete the designation process prescribed in amended
section 107(d).  Because of these provisions, the dates
areas switch from attainment to nonattainment for NSR
purposes vary by pollutant.  However, except for the two
instances where the Amendments create changes by operation
of law, the new designations and expanded boundaries will
not be effective for NSR purposes until EPA promulgates the
changes.  The promulgations will be announced in the Federal
Register.

     Congress create new PM-10 nonattainment areas
through designations that became effective upon
enactment of the 1990 Amendments on November 15, 1990
[see section 107(d)(4)(B)].  Specifically, Congress
designated Group I areas and areas where violations of
the PM-10 NAAQS had occurred prior to January 1, 1989 as
nonattainment.  The EPA published a list of these PM-10
areas in a Federal Register notice (see 55 FR 45799,
October 31, 1990; see also 52 FR 29383, August 7, 1987).
The EPA plans to publish a notice in the Federal Register
listing these areas as nonattainment in the near future, but
they are already considered nonattainment areas as of
November 15, 1990.

     Similarly, the 1990 Amendments expand by operation of
law some CO and ozone nonattainment areas.  However, these
changes did not become effective with passage but rather on
December 30, 1990.  The specifics are as follows:

     Section 107(d)(4)(A)(iv) of the amended Act
     provides that, with the exception explained below,
     ozone and CO nonattainment areas located within
     metropolitan statistical areas (MSA) and
     consolidated metropolitan statistical areas (CMSA)
     which are classified as serious, severe, or
     extreme for ozone or as serious for CO are
     automatically expanded to include the entire MSA
     or CMSA.  This expansion became effective by
     operation of law 45 days after enactment unless
     the Governor submitted a notice by this deadline
     of the State's intent to seek a modification of
     the expanded boundaries pursuant to the procedures
     set forth in section 107(d)(4)(A)(v).  So if a

-------
                                8

          State did not provide this notice, the
          nonattainment boundaries of all serious, severe,
          and extreme ozone nonattainment areas in the state
          and all serious CO areas in the state expanded to
          include the entire MSA. or CHSA on December 30,
          1990.  If a State did provide timely notice, the
          Administrator has up to 14 months from enactment
          to resolve the State's challenge.  Until EPA
          promulgates a resolution of the state's challenge,
          the old boundaries remain in effect.

          Except for these two cases where new or expanded
     boundaries have been created by operation of law,
     nonattainment area changes will not be considered effective
     until the changes are promulgated by the EPA.  As to most
     new areas or expansions of previously-designated
     nonattainment areas, this will occur 240 days after
     enactment [see section 107(d)(4)(A)(i) and (ii)].  Newly-
     created ozone and CO nonattainment areas will be considered
     part of a designated nonattainment area for NSR purposes at
     the time of promulgation.

2.   Status of Construction Bans

          Pursuant to section 110(n)(3), an existing construction
     .ban that was imposed due to the absence of approved Part O
     NSR rules remains in effect until a revised NSR SIP is
     approved.  Existing construction bans imposed due to
     disapproval of primary sulfur dioxide NAAQS attainment plans
     also remain in effect.  A Federal Register notice will be
     published soon announcing the status of construction bans in
     general and also lifting specific bans where appropriate.
     Should a construction ban be lifted in any area designated
     as nonattainment, and the area lacks an approved Part 0 NSR
     rule, the State should meet the requirements of
     40 CFR Part 51, Appendix S, in issuing permits to major new
     sources or major modifications prior to the adoption of NSR
     rules meeting the requirements of the 1990 Amendments.

3.   Federal Implementation Plans Remain in Effect

          The NSR permitting program in an existing FIP remains
     in effect until a SIP is approved or a revised FIP is
     adopted.

4.   Use of Previously-Approved Growth Allowances is Prohibited

          Section 172(b) invalidates growth allowances in
     existing SIP's in areas that received a SIP call prior to
     enactment of the 1990 Amendments, or that receive one
     thereafter.  For NSR permits issued on or after November 15,
     1990, previously-approved growth allowances cannot be used

-------
     in these areas.   Construction permits cannot be issued in
     SIP-call areas under existing EPA-approved Part D programs
     to the extent that such permits rely on previously-approved
     growth allowances.  Case-by-case emission offsets must be
     obtained for any such permits, and other existing Part D
     requirements must be met.

5.   Existing NSR Permitting Rules Continue to Apply in the
     Northeast Ozone Transport Region (NOTR)

          The 1990 Amendments establish a single ozone transport
     region comprised of the States of Connecticut, Delaware,
     Maine, Maryland, Massachusetts, New Hampshire, New Jersey,
     New York, Pennsylvania, Rhode Island, Vermont, and the CMSA
     that includes the District of Columbia and part of the state
     of Virginia.  For this transport region, including all
     attainment areas within its boundaries, new
     section 184(b)(2) specifies that any stationary source that
     emits or has the potential to emit at least 50 tons per year
     of VOC's shall be considered a major stationary source and
     subject to the requirements which would be applicable to
     major stationary sources if the area were classified as a
     moderate ozone nonattainment area.  For NSR purposes, the
     requirements of section 184(b)(2) are not in effect in a
     State until the State submits a new or revised SIP that
     includes the requirements (or EPA imposes a FIP implementing
     those requirements).  A State in the NOTR has until
     November 15, 1992 to submit to EPA the new or revised NSR
     rules addressing the new requirements.

-------
  Guidance for State Ozone/CO Submittals
under the Clean Air Act Amendments of 1990
Date
Available
Guidance applicable to all areas

Designating and classifying areas

Designating and classifying nonattainment areas: OAQPS/EPA
memorandum to Regional Offices on steps in process and preliminary data
review
Getting started on the Title I requirements (an overview of early state
submittal requirements)
Procedures and criteria for redesignating to attainment, including
maintenance plan requirements
Nov-90
Mar-91
Nov-91
Enforcement/Compliance

Review of State implementation plans and revisions for enforceability and
legal sufficiency
Sep-87
Developing emission inventories

Compilation of air pollutant emission factors, volume I and supplements A,
B, and C (AP-42)
- Vol. I GPO stock #: 055-000-00251-7
- Supplement A stock #: 055-000-00265-7
- Supplement B stock #: 055-000-00278-9
- Supplement C stock #: 055-000-00369-6
Compilation of air pollutant emission factors, Vol. II, mobile sources, GPO
stock #: 055-000-00252-5 or NTIS stock # PB87-2-5266
Procedures for emission inventory preparation: mobile sources
(EPA-450/4-81-026d) (revised version to be completed in May 91)
AIRS facility subsystem source classification codes (SCCs) and emission
factor listing for criteria pollutants (EPA-450/4-90-003)
SIP air pollutant inventory management system (SAMS) version 4.0 and
SAMS user's manual
Preparing emission inventory projections
Sep-85

Jul-89
Mar-90
Mar-91
Jul-91
Modeling analyses

Guideline on air quality models (revised 1987 and including the 1988
supplement) (EPA-450/2-78-027R)
Jul-88

-------
Conformity

Reconciliation of population projections in revised State implementation
plans (to be incorporated into "Preparing emission inventory projections"
due out Jul-91)
Survey of population projections used in air and water quality planning (to
be incorporated into "Preparing emission inventory projections")
Incorporating 1990 census figures in CAAA Title I planning
Criteria to ensure conformity with State implementation plans (SIPs)
Jan-80
Jan- 80

Nov-91
Permit programs for stationary sources

NSR prevention of significant deterioration and nonattainment area
guidance notebook
NSR permitting guidance for newly-identified nonattainment areas
Proposed regulatory requirements for approvable State operating permit
programs (Title V)
Proposed NSR/PSD rule implementing Clean Air Act related changes
Small business stationary source technical and environmental compliance
assistance program (Title V guidance to assist States in implementing their
small business assistance programs)
Model permits for VOC sources
Final regulatory requirements for State operating permit programs (for
Title V)
Proposed procedures for Federal issuance of Title V operating permits,
including Phase I acid rain requirements
Final procedures for Federal issuance of Title V including Phase I acid rain
requirements
Final NSR/PSD rule changes which implement CAAA related changes
Jan- 88
Jan-91
Apr-91
Jun-91
Aug-91
Oct-91
Nov-91
Nov-91
May-92
May-92
NSRIPSD Guidance Documents

Draft NSR workshop manual dtd. October 1990
NSR/PSD construction permit transitional guidance
Dec-90
Jan-91
Tracking program progress and effectiveness

Protocols for evaluating rule effectiveness (EPA memorandum from John
Seitz to Regional Offices); future updates to be provided based on national
studies
Mar- 8 8

-------

RFP Tracking for Ozone and CO
Requirements and guidance for areas that miss a milestone (i.e., guidance
on election of options, including economic incentive program)
Nov-91
Nov-94
Miscellaneous

Guidelines for the review of State implementation plan (SIP) revisions by
EPA Regional Offices (EPA^50/2- 89-005)
SEP completeness criteria, Title 40 Code of Federal Regulations, Part
51.103 (to be revised Sep 91)
Guidance for inclusion of Indian tribal air quality programs under the
CAAA
Regulation implementing Sec. 107 tribal treatment as a State
Feb-89
Feb-90
May-92
May-92
Guidance applicable to ozone and CO areas
Developing emission inventories

Emission inventory requirements for ozone State implementation plans
(EPA^50/4-91-010)
Procedures for the preparation of emission inventories for precursors of
ozone, volume 1 (EPA-450/4-88-021)
Emission inventory requirements for carbon monoxide State
implementation plans (EPA-450/4-9 1-011)
Guidance for the preparation of quality assurance plans for ozone/CO SEP
emission inventories (EPA-450/4-88-023)
User's guide to MOBELE4 (mobile source emission factor model
(EPA-AA-TEB-89-01) (to be revised with MOBILE 4.1)
Quality assurance program for post- 1987 ozone and carbon monoxide State
implementation plan emission inventories (EPA-450/4-89-004)
Procedures for estimating and applying rule effectiveness in post- 1987 base
year emission inventories for ozone and carbon monoxide State
implementation plans
Example emission inventory documentation for post- 1987 ozone State
implementation plans (SEP's) (EPA-450/4-89-018)
Correspondence stating how to begin post-CAAA inventory activities
requirements for inventory preparation and procedures for updating 1987/88
inventories to "year of enactment inventories" implementation plan (SEP
base year emission inventories [draft])
Mar-91
Dec-88
Mar-91
E)ec-88
Feb-89
Mar-89
Jun-89
Oct-89
Jan-91

-------

Guidance for initiating ozone/CO SIP emission inventories pursuant to the
1990 Clean Air Act Amendments
VMT projection guidance
Preparing emission inventories for the urban airshed model (UAM)
Revised guidance for the preparation of emission inventories for carbon
monoxide and precursors of ozone
Revised guidance for mobile service emission inventories including vehicle
miles travelled
Form and content of emission states for ozone State implementation plans
Feb-91
Apr-91
May-91
May-91
May-91
May-91
Modeling analyses

Guidelines for use of city-specific EKMA in preparing post- 1987 ozone
SIPs
User's manual for exercising OZIPM4 in post-1987 ozone SIP's (ozone
isopleth plotting with optional mechanisms/version 4: volumes I (manual)
and II (computer code)
User's manual for OZIPM4 (PC version) and addendum
. (EPA-450/4-88-016)
Consideration of transported ozone and precursors and their use in EKMA
(EPA-450/4-89-010)[used in determining rural transport areas](to be revised
May 91)
User's guide for the urban airshed model (UAM): volume I - user's manual
for UAM (CB-IV) (EPA-450/4-90-007A)
User's guide for the urban airshed model (UAM): volume II - user's
manual for UAM (CB-IV) modeling system (EPA-450/4-90-007B)
User's guide for the urban airshed model (UAM): volume III - user's
manual for the diagnostic wind model (EPA^50/4-90-007Q
User's guide for the urban airshed model (UAM): volume IV - user's
manual for the emissions preprocessor system (EPA-450/4-90-007D)
User's guide for the urban airshed model (UAM): volume V - description
and operation of the ROM-UAM interface program system
(EPA-450/4-90-007E)
Urban airshed model (UAM) applications guidance
UAM applications guidance in determining source contributions to other
ozone nonattainment areas in regional transport areas
Determining stationary source contribution to CO nonattainment problems
Nov-87
Nov-87
Nov-88
Jul-89
Jun-90
Jun-90
Jun-90
Jun-90
Jun-90
May-91
May-91
May-91

-------

Determination of conditions under which NOx controls are not required
Development of State implementation plans and demonstrations for
multi-State ozone nonattainment areas
Substitution of NOx emission reductions for VOC reductions
Determining and calculating emission reductions needed to ensure
reasonable further progress (15% reduction of VOC emissions within 6
years in moderate ozone areas plus 3% annual reductions
beginning 6 years after enactment in serious areas) and demonstration of
attainment (specific annual reductions in VOC and NOx emissions to attain
NAAQS)
Enhanced ambient air quality monitoring program for serious, severe, &
extreme ozone areas
Aug-91
Aug-91
Nov-91
Nov-91
May-92
Ozone transport regions

Procedures for the establishment of ozone transport regions
Procedures and criteria for enlarging or reducing the size of transport
regions (including procedures for public participation regarding petitions to
add or subtract areas from the
transport region)
Guidance regarding substitute measures for Stage II in ozone transport
regions (available after EPA study of comparable measures)
Jul-91
Jul-91
Jan-94
Control measures

Design criteria for Stage I vapor control systems at gasoline service
stations
Control technique guideline (CTG) for surface coating operations: Volume
I - General control methods (EPA-450/2-76-028)
Control technique guideline (CTG) for surface coating operations: Volume
II - Surface coating of cans, coils, paper, fabrics, automobiles, and
light-duty trucks (EPA-450/2-77-008)
Control technique guideline (CTG) for control of VOC emissions from tank
truck gasoline loading terminals (EPA-450/2-77-026)
Control technique guideline (CTG) for control of petroleum refinery
vacuum producing systems, wastewater separators & process unit
turnarounds (EPA-450/2-77-025)
Control technique guideline (CTG) for control of VOC emissions from
solvent metal cleaning (EPA-450/2-77-022)
Nov-75
Nov-76
May-77
Oct-77
Oct-77
Nov-77

-------
Control technique guideline (CTG) for surface coating operations: Volume
ID - Surface coating of metal furniture (EPA-450-2-77-032)
Control technique guideline (CTG) for surface coating operations: Volume
IV - Surface coating of magnet wire (EPA-450/2-77-033)
Control technique guideline (CTG) for surface coating operations: Volume
V - Surface coating of large appliances (EPA-450/2-77-034)
Control technique guideline (CTG) for storage of petroleum liquids in
fixed-roof tanks (EPA^50/2-77-036)
Control technique guideline (CTG) for control of VOC emissions from tank
truck gasoline loading bulk plants (EPA-450/2-77-035)
Control technique guideline (CTG) for control of VOC emissions from
cutback asphalt (EPA^50/2-77-037)
Control technique guideline (CTG) for control of fugitive VOC emissions
from petroleum refining (EPA-450/2-78-036)
Control technique guideline (CTG) for surface coating of miscellaneous
metal parts and products (EPA^50/2-78-015)
Control technique guideline (CTG) for factory surface coating of flatwood
paneling (EPA-450/2-78-032)
Control technique guideline (CTG) for pharmaceutical manufacture
(EPA-450/2-78-029)
Control technique guideline (CTG) for rubber tire manufacture
(EPA-450/2-78-030)
Control technique guideline (CTG) for graphic arts rotogravure &
flexography (EPA^50/2-78-033)
Control technique guideline (CTG) for petroleum liquid storage, floating
roof tank (EPA-450/2-78-047)
Control technique guideline (CTG) for dry cleaning: perchloroethylene
(EPA-450/2-78-047)
Control technique guideline (CTG) for gasoline tank trucks
(EPA^50/2-78-051)
Control technique guideline (CTG) for large petroleum dry cleaners
(EPA-450/3-82-009)
Control technique guideline (CTG) for manufacture of high density
polyethylene, polypropylene, and polystyrene resins (EPA-450/3-83-008)
Control technique guideline (CTG) for natural gas/gasoline processing
plants(EPA-450/3- 83-007)
Dec-77
Dec-77
Dec-77
Dec-77
Dec-77
Dec-77
Jun-78
Jun-78
Jun-78
Dec-78
Dec-78
Dec-78
Dec-78
Dec-78
Dec-78
. Sep-82
Nov-82
Dec-83

-------
Control technique guideline (CTG) for control of fugitive emissions from
synthetic organic chemical manufacturing industry (SOCMI)
(EPA-450/3-83-006)
Control technique guideline (CTG) for control of SOCMI air oxidation
processes (EPA-450/3-84-01)
Control technique guideline (CTG) for control of volatile organic liquids
(VOL) storage vessels
Issues relating to VOC regulation outpoints, deficiencies, and deviations:
clarification to Appendix D of November 24, 1987 Federal Register (Blue
book, revised 1/11/90)
Guidance on determining credits in oxygenated fuels programs
Background information on control of effectiveness of Stage II vapor
recovery systems
Implementation of future control measures- a guidance document
presenting the criteria for the structure of rules (i.e., appropriate
recordkeeping, test methods, etc.) for future measures such as RACT rules,
etc.
Revised guidance on motor vehicle inspection and maintenance (I/M)
programs, including guidance on enhanced I/M
Evaluation, development, and implementation of transportation control
measures
Contingency measures (general guidance and specific guidance for ozone
and CO areas)
Evaluating cost effectiveness of control measures
Development and implementation of control measures to offset growth in
emissions from growth in vehicle miles travelled (VMT): guidance for
serious ozone and CO areas
Transportation control measure (TCM) guidance documents
Clean fuel fleet programs for serious ozone areas with populations >
250,000
Rules for economic incentive program
Federal rule for marine vessel loading standard (implications for State
regulations for this source category)
Use of new technologies in extreme ozone areas
Report to Congress on consumer and commercial products
Dec-83
Dec-83
Dec-83
May-88
Aug-91
Nov-91
Nov-91
Nov-91
Nov-91
Nov-91
Nov-91
Nov-91
Nov-91
Nov-92
Nov-92
Nov-92
May-93
Nov-93

-------

Guidance on Alternative Control Techniques (ACTs) for VOC and NOx
sources emitting over 25 tpy
Control Technique Guidelines (CTG's) for 1 1 categories to be provided
within three years after enactment
Control Technique Guideline (CTG) for aerospace coating and shipbuilding
and repairing industries
VMT demonstration in serious* ozone areas (to show consistency of
projections and actual levels)
Products beginning in 1995
First promulgation of federal regulations or guidance on control of
emissions from use of consumer/commercial products (three more
categories to be promulgated bi-annually thereafter)
Nov-93
Nov-93
Nov-93
Dec-94

Nov-95
Miscellaneous

Procedures and requirements implementing NEPA for the Municipal
Wastewater Treatment Construction Grants Program, 40 CFR Part 6.303
Transportation control measures: State implementation plan guidance
Update of the June 6, 1978 Transportation Air Quality Guidelines
State and local planning procedures
Guidance on consultation in the development of State implementation plans
Sep-86
Sep-90
Aug-91
Aug-91
Nov-91

-------