PROGRESS IN THE PREVENTION AND
   CONTROL OF AIR POLLUTION IN 1978
  ANNUAL REPORT OF THE ADMINISTRATOR
OF THE ENVIRONMENTAL PROTECTION AGENCY
                to the
     CONGRESS OF THE UNITED STATES
          in Compliance with
 SECTIONS 313, 202, 306(e), and 127(d)
                  of
           PUBLIC LAW 91-604
     THE CLEAN AIR ACT, AS AMENDED

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    PROGRESS IN THE PREVENTION AND



   CONTROL OF AIR POLLUTION IN 1978
  ANNUAL REPORT OF THE ADMINISTRATOR



OF THE ENVIRONMENTAL PROTECTION AGENCY



                to the



     CONGRESS OF THE UNITED STATES



          in Compliance with



 SECTIONS 313, 202, 306(e), and 127(d)



                  of
           PUBLIC LAW 91-604



     THE CLEAN AIR ACT, AS AMENDED

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                               CONTENTS
LIST OF TABLES .  .  .  •	     111
PREFACE	       v
   I.  INTRODUCTION AND SUMMARY	       1

  II.  AIR QUALITY TRENDS	       5

       Air Quality Trends	       5
       Air Quality Monitoring	       7

 III.  DEVELOPMENT OF AIR QUALITY CRITERIA AND STANDARDS ...       9
       Introduction	'.	       9
       Health Effects Research	       9
       Terrestrial  Ecology Effects of Air Pollution	      13
       Scientific Assessment	      14
       Transport and Fate	      16
       Characterization and Measurement Methods Development.  .      17
       Monitoring	      17
       Quality Assurance 	      18
       Federal Reference and Equivalent Methods	      18
  IV.  STATUS OF STATE IMPLEMENTATION PLANS (SIPs) 	      19
       Prevention of Significant Deterioration 	      20
       Bubble Concept	      23.
       Transportation Control Measures	      24
   V.  CONTROL OF STATIONARY SOURCES 	      26
       New Source Performance Standards.	      26
       National Emission Standards for Hazardous Air
         Pollutants  (NESHAP) 	      29
       Research and  Development of New and Improved Air
         Pollution Control Techniques for Stationary Sources  .      30
  VI.  CONTROL OF MOBILE SOURCE EMISSIONS	      34
       Introduction	      34
       Standard Setting	      34
       Compliance Assurance	      37
       Certification 	      38
       Inspection and Maintenance	      39
       Assessment	      40
 VII.  ENFORCEMENT	      43
       Stationary Source Enforcement 	      43
       Mobile Source Enforcement	      47
       Compliance by Federal Facilities	      53
       The List of Violating Facilities	      53

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                         CONTENTS (continued)
VIII.   LITIGATION IN 1978	  .      55

       District Court Jurisdiction 	      55
       Hazardous Air Pollutants	      55
       Use of Modeling in the Promulgation of SIPs	      56
       Ambient Criteria and Standards	      56
       References.	      58

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                            LIST OF TABLES

Table                                                       Page
VI-1.  Federal Exhaust  Emissions Standards  	    36
VI-2..  In-Use Vehicle Emission  Performance	  .  .    42
                                    TM

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                                •PREFACE

     The Clean Air Act, as amended, authorizes a national program of air
pollution research, regulation, and enforcement activities.  This program
is directed at the Federal level by the U. S. Environmental Protection
Agency (EPA).  However, primary responsibility for the prevention and
control of air pollution at its source continues to rest with state and  -
local governments.  EPA's role is to conduct research and development
programs, set national goals  (via standards and regulations), provide
technical and financial assistance to the states, and, where necessary,
supplement state implementation programs.
     Section 313 of the Clean Air Act requires the Administrator to report
yearly on measures taken toward implementing the purpose and intent of
the Act.  This report covers  the period January 1 to December 31, 1978,
and describes the issues involved in the prevention and control of air
pollution and the major elements of progress toward that goal that have
been made since the last report.  In addition, this report also includes
several other EPA reports to  Congress required under the Clean Air Act,
as amended:
     1.  Section 202  report on measures taken in relation to motor
vehicle emission control  (Chapter VI);
     2.  Section 306(e) report on Federal procurement and violating
facilities  (in Chapter VII);  and
     3.  Section 127(d) report on prevention of significant deterioration
of air quality  (in Chapter  IV).

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                     I.  INTRODUCTION AND SUMMARY

AIR QUALITY TRENDS
     In many areas of the country, the general  downward trend in total
suspended particulate (TSP) levels in the early 1970s was followed by
a gradual leveling off.  The trends for sulfur  dioxide (S02)  show
dramatic improvement in the 1972-1974 period, followed by fairly con-
sistent continuing improvement through 1977.   Eighty percent  of the
carbon monoxide (CO) sites showed long-term improvement from  1972 to
1977.  The national trend for ozone (0.,) was  stable for the 1972-1977
period, with the reduction in volatile organic  compound (VOC) emissions
largely offset by increased motor vehicle miles traveled and  increased
industrial process emissions.  Only two percent of the sites  monitoring
nitrogen dioxide (N02)  violated the standard  in 1977.

DEVELOPMENT OF AIR QUALITY CRITERIA AND STANDARDS
     EPA promulgated a  national ambient air quality standard  (NAAQS) .for
lead in October 1978.  The standard was set at  1.5 ug Pb/m ,  with averages
to be calculated over a calendar quarter.
     EPA also promulgated a NAAQS for ozone in  1978.  The level  of both
the primary (health) and secondary (welfare)  standard was changed from
0.08 to 0.12 ppm and the chemical designation was changed from photochemical
oxidants (0 ) to ozone  (0.,).
           A             O

STATUS OF STATE IMPLEMENTATION PLANS (SIPs)
     As a result of the Clean Air Act Amendments of 1977, EPA drafted a  list
of areas not attaining  the various national ambient air quality standards.
This was promulgated on March 3, 1978 with some subsequent modification.
States are now in the process of submitting SIP revisions to  EPA for
approval.

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     EPA published final regulations for the prevention of significant
deterioration (PSD) of air quality on June 19, 1978.
     On January 18, 1979, EPA proposed a policy to allow plants to
reduce control where costs were high in exchange for an equal increase
in control where abatement is less expensive (bubble concept).  This
was promulgated on November 29, 1979.
     In 1978, EPA and the Department of Transportation signed a memorandum
of understanding of the integration of transportation and air quality
planning and jointly issued guidelines.

CONTROL OF STATIONARY SOURCES
     During 1978, EPA promulgated new source performance standards for
kraft pulp mills, lime plants, and grain elevators; the Agency proposed
nine revisions and amendments for existing standards.  A revised new
source performance standard for sulfur dioxide, nitrogen oxides, and
particulate emissions from new fossil-fuel-fired electric utility steam
generating units was developed and proposed in 1978.
     In 1978, EPA also undertook the development of an airborne carcinogen
policy to set forth planned approaches for identifying, assessing, and
regulating carcinogens.

CONTROL- OF MOBILE SOURCE EMISSIONS
     Regulations issued in 1978 included rulemaking for high-altitude
vehicles and a regulation to limit tampering with vehicle emissions control
system parameters.
     During 1978, EPA revised its preproduction certification review
program to allow the Agency to concentrate on those engine families with
the greatest potential for affecting air quality.
     In 1978, EPA's inspection and maintenance (I/M) activities focused
on collecting technical information and supporting states and localities
that needed I/M elements for their 1979 SIPs.
     Although performing better than earlier uncontrolled vehicles,
tests have shown that between one-half and two-thirds of even relatively
new in-use cars fail at least one of the emission standards.  EPA has
begun a program of restorative maintenance testing to discover the reasons
for this persistent failure.  The tests have confirmed that  even simple
maintenance can dramatically improve emission control.

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ENFORCEMENT                       ,-'

Stationary Source Enforcement
     EPA devoted a great deal of effort in 1978 to development of
regulations, both for Section 120 noncompliance penalties and for
Section 119 primary nonferrous smelter orders.
     The 1977 Clean Air Act Amendments gave EPA new responsibilities
for accelerated enforcement against all major stationary source
violators.  Consequently, EPA began its major source enforcement effort
(MSEE) to bring large recalcitrant sources into compliance.
     During FY 1978, EPA initiated 143 major air stationary source civil
actions and filed 30 civil actions.  As part of the MSEE drive, EPA
proposed 43 delayed compliance orders  (DCOs) and promulgated 26; the
states proposed 59 DCOs and promulgated 24.
     In addition, in 1978, EPA reached important pollution control
agreements with Republic Steel and the Tennessee Valley Authority.

Mobile Source Enforcement
     In 1978, EPA conducted 31 inspections and 7 investigations of auto
manufacturers.  During FY 1978, 2.8 million vehicles were recalled,
either by EPA order or as a result of an EPA investigation; during that
same period, 1.7 million vehicles were voluntarily recalled by
manufacturers to correct emissions problems.
     In FY 1978, EPA conducted approximately 21,000 inspections of
service stations to ensure compliance with the unleaded fuel regulations.
For this period, EPA issued approximately 560 complaints and collected
$250,000 in penalties.
     Forty-four tampering litigation reports were referred to the
Department of Justice in FY 1978.  Civil penalties of $44,100 were
collected under tampering case settlements and judgments in that period.

Compliance of Federal Facilities
     The President issued Executive Order 12088, "Federal Compliance
with Pollution Control Standards" on October 13, 1978.  As of March 31, 1979,

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60 (20 percent) of the 294 Federal facilities classified as major
sources of air pollutants were not meeting applicable air quality standards
and emission limitations.  Of these 60 sources, 12 have installed
pollution control equipment, 21 are in the process of installing it,  and
23 have plans to correct their pollution problems.

LITIGATION IN 1978
     Among the important court decisions in 1978 was a decision by the
Sixth Circuit upholding EPA's promulgation of the Ohio SIP for S02>
In particular, EPA's extensive use of air quality dispersion modeling
was allowed as a "rational choice."
     Other important court decisions in 1978 dealt with district court
jurisdiction, hazardous air pollutants, and ambient criteria and standards.

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                       II.  AIR QUALITY TRENDS

AIR QUALITY TRENDS

Total Suspended Parti'culate  (TSP)
     Total-suspended particulate levels have improved throughout the
nation during the 1970's.  The general trend shows long-term improvement
with a gradual leveling off  in the past few years.
     From 1972 to 1977, the  nationwide average TSP levels decreased 8
percent, an improvement of almost 2 percent per year.  While most
monitoring sites show  improvement, the decrease in TSP levels is most
pronounced among the higher  concentration urban sites.  The overall
trend of improvement from 1972 through 1975 was followed by a reversal
in some regions in 1976 because of abnormally dry weather conditions.
Nevertheless, 60 percent of  the sites showed long-term improvement from
1972 to 1977.  For those sites with TSP concentrations exceeding the
annual standard, 77 percent  showed long-term improvement.  In 1977,
approximately 25 percent of  the sites reported their lowest annual
values.
     Although there has been a nationwide decrease in levels of TSP matter,
there is evidence that levels of some of the particulates that make up
the total may be increasing.  This is indicated by a trend of increases
in secondary particulates, such as sulfates.

Sulfur Dioxide (SO.,)
     Since 1970, throughout  the nation sulfur dioxide levels in urban
areas have gradually improved.  The 1972-1977 trends show dramatic
initial improvement in the period 1972-1974, followed by fairly con-
sistent continuing improvement.   In most urban areas, this is consistent
with the  switch in emphasis  from attainment of standards to maintenance
of air quality, i.e.,  the  initial effort to reduce pollution to accept-
able levels was followed  by  efforts to maintain air quality at these
lower levels.

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     Although S02 levels continued to improve in the middle 1970's the rate
of improvement was much less pronounced than in earlier years.   From 1972
through 1977, the national' average SO^ level dropped 17 percent, an annual
improvement rate of 4 percent per year.  As would be expected,  the majority
of sites showed improvement during this period.
     Short-term changes in S02 levels between 1976 and 1977 were mixed,
with no predominant trend.  Most urban area SO- monitors reported levels
well below the annual standard.  The remaining S02 problems are primarily
associated with specific point sources which are responsible in part for
the increasing levels of sulfates.

Carbon Monoxide (CO)
     .Ambient levels of CO generally improved from 1972 to 1977.  During this
period, 80 percent of the CO sites showed long-term improvement.  This trend
was fairly consistent nationally.  The median rate of improvement for the
90th percentile of 8-hour values was approximately 6 percent per year.  From
1976 to 1977, 70 percent of the 243 sites improved.  Consistent with this
downward trend, almost one-third of these sites reported their lowest values
in 1977.

Ozone  (03)
     The national ozone trend was basically stable over the 1972-1977 period.
California, with the longest recognition of an 0^ problem, continues to show
a  trend of decreases.  Many sites outside California, with more limited
Historical data, have exhibited a slight increase in 0^ levels in
recent years.  This  stable national 0, trend is consistent with the
national emission trend in volatile organic compounds  (VOC).  The
reduction  in VOC emissions from new cars has been largely offset  by the
30 percent increase  in motor vehicle miles  traveled between 1970  and
1977 and the increased  industrial process emissions.  The result  is
stability  in both air quality  and emission  trends.
     Ozone is  the most  pervasive air pollution  problem  in the  country.   In
1977,  86 percent of  the 03  sites violated the  previous  03 national ambient
air  quality  standard (NAAQS) of 0.08 parts  per  million  (ppm) (160  yg/m  ) not
to be  exceeded more  than  one hour per  year.   In January 1979,  a revised  0

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NAAQS was promulgated, raising the l.ev'el to 0.12 ppm (235 yg/m ); the
expected number of exceedances must be less than one per year.  With this
new standard 35 percent fewer sites exceeded this violation level more than
one day in 1977.

Nitrogen Dioxide  (N00)
^^_^_^—1^—^^^^V^—_««^-^^_^.«__W«£
     Trends in N02 levels were investigated for 518 sites throughout the
nation over the 1972-1977 period.  For the nation, there were many more
sites showing increases (312) than decreases (176).  However, for most
of these sites there  is only 3 or 4 years of data, so these trend
patterns are tentative.  Only 18 (2 percent) of the 933 sites monitoring
N02 violated the  annual primary standard in 1977.

AIR QUALITY MONITORING
     The goal of  regulatory changes proposed by the U.S. Environmental
Protection Agency is  a streamlined, high-quality, more cost-effective
national air monitoring program.
     The revisions proposed in 1978 after discussion with the states would:
     1.  Set stringent requirements for a refined national monitoring network
in areas with high population and pollutant concentrations in order to
provide a sound data  base  for assessing national trends.
     2.  Give states  flexibility to use resources freed from State
Implementation  Plan  (SIP) monitoring  work to meet their own needs.
     3.  Establish uniform  criteria for siting, quality assurance, equivalent
analytical methodology, sampling intervals, and instrument selection, to
assure consistent data  reporting among  the  states.
     4.  Establish a  national uniform air quality index and require it for
major metropolitan areas.
      5.  Provide  precision  and  accuracy estimates with the air quality
data,  to permit better interpretation of  data  quality.
      In  the  newly defined  program,  states would establish a SIP network of
State  and Local  Air  Monitoring  Stations  (SLAMS).  The  full network would
have  to  be  in  place  by January  1,  1983.   States would  have to evaluate the
SLAMS  network  annually to  add,  delete,  or  relocate monitoring stations to
satisfy  their  own,  as well  as  EPA,  data  needs.

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     States may have additional monitoring stations that are not part of
the SLAMS network.  These would be called Special Purpose Monitoring (SPM)
stations.  They would not be subject to EPA requirements unless the.information
is used for SIP purposes.
     In addition, states would operate certain stations, selected from
the SLAMS network, to provide EPA with data for making nationwide assess-
ments and establishing national trends.  These stations, to be designated
by January 1, 1981, would continue as part of the SLAMS network, but
would be called National Air Monitoring Stations (NAMS).  The NAMS would
be located in areas of highest pollutant concentration and high
population density.

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          III.' DEVELOPMENT OF AIR QUALITY CRITERIA AND STANDARDS

INTRODUCTION
     Air quality criteria documents were issued for particulate matter,
sulfur oxides, hydrocarbons, photochemical oxidants, carbon monoxide, and
nitrogen oxides from January 1969 through January 1971.  On
April 30, 1971, after these criteria were issued, EPA established
primary and secondary national ambient air quality standards (NAAQS) for
these pollutants.
     On September 14, 1973, EPA revised the standards by revoking the
annual secondary standard for sulfur dioxide ($02) and revising the Air
Quality Criteria for Sulfur Oxides.  The maximum 24-hour concentration
published as a guide for the development of State Implementation Plans
(SIPs) was deleted.
     EPA promulgated the NAAQS for lead in October 1978 in response to the
court order in NRDC et al. vs. Train.  This standard, which had been proposed
in December 1977, was set at 1.5 ug Pb/m  , with averages to be calculated
over a calendar quarter.  The standard is especially significant because of
the precedent  it establishes as the first NAAQS for a multi-media pollutant.
     EPA also  promulgated the NAAQS for ozone  (Og) in 1978.  The level
of the primary (health) and secondary  (welfare) standard was changed
from 0.08 to 0.12 parts per million  (ppm) and  the chemical designation
of the standard was changed from photochemical oxidants (0 ) to ozone
(03).
     In  response to the Clean Air Act  Amendments of 1977, EPA is now
reviewing and, if necessary, revising  NAAQS for the remaining NAAQS
pollutants  (carbon monoxide, hydrocarbons, nitrogen oxides, particulate
matter,  and sulfur oxides).  This work is scheduled to be completed by
December 1980.

HEALTH EFFECTS RESEARCH
     The health  effects research program  is divided into three program
components:  Criteria  Pollutants,  Non-Criteria Pollutants, and Transportation

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Sources.  The program incorporates epidemiological studies and animal
toxicological'studies,- focusing on those air pollutants that are
known or suspected to harm public health.

Criteria Pollutants
     In this area, studies are conducted on the air pollutants for which
NAAQS have been set.  Results of these studies are used to evaluate
the adequacy of existing ambient air quality criteria and to provide a
scientific basis for improving these criteria.  The Clean Air Act
Amendments of 1977 require that the ambient criteria and NAAQS be
reviewed and appropriately revised at 5-year intervals.
     These studies include animal toxicology and controlled human exposure
(clinical) studies which assess the harm to health associated with
exposure to one or more criteria pollutants.  The animal and human
studies focus on effects of exposure to combinations .of 03 and S02.
These studies will be followed by similar ones on the effects of exposure
to carbon monoxide (CO) and nitrogen oxides (NO ).  The animal studies
employ  various combinations of pollutants and exposure times to identify
additive or synergistic effects on the respiratory system.  The clinical
studies address the effects of short-term exposure to the same combina-
tions of criteria pollutants.  These effects are tested on healthy
volunteers and on those in whom asthma-like respiratory airway reactivity
has been simulated pharmacologically.
     In 1978 the major accomplishments in the criteria pollutants area
included:
     1.  Two studies performed in Los Angeles, California.  One of these
was an  epidemiologic study which evaluated  the health effects of photo-
chemical oxidants on asthmatics, patients with chronic bronchitis,
athletes, and outdoor workers.  The other study revealed  that chromosomal
abnormalities do  not seem to  be a sensitive indicator of  environmental
air pollution exposure.
     2.  Four groups of controlled human exposure  (clinical) experiments
to assess the effects of  ozone on human  physiologic  parameters.  The
findings included evidence that exercise is one of the major determinants
                                    10

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of response to ozone.  Evidence was a>Tso found that, in health subjects,
decrements in pulmonary function caused by ozone exposure disappear
after three to four days of the exposure.
     3.  Animal inhalation exposure studies to assess the effects of
short-term exposure to nitrogen dioxide (N0?), both alone and in combina-
                                       *    ™
tion with 0-.  The combination was found to have additive effects on
increasing susceptibility to infectious respiratory disease.  Data
generated from variable exposures to these gases, both with and without
the added stress of elevated temperature, will support chronic exposure
studies in FY 1979.   In addition, one of the studies indicates that low
concentrations of 0.,  or NO- have systemic effects that may be related to
how the body handles  other chemicals.
     4.  An epidemiologic study performed in Dallas, Texas, to determine
effects of exposure to low-level traffic density (less than 30,000 cars
per day) on blood lead levels.  (Equivalent air exposures were less than
1.5 to 1.6 micrograms per cubic meter of lead.)  No increase in blood
lead was observed.
     5.  A study of the geographic distribution of  increased lead absorption
as measured by the levels of  lead  in the deciduous  teeth of children
living in Cleveland,  Ohio.  The teeth of some children from suburban
neighborhoods  were found  to contain lead levels as  high as those in the
teeth  of some  children  from inner  city  neighborhoods.

Non-Criteria  Pollutants
     Research  in  this area  deals with air  pollutants  for which no NAAQS
have been set  and with  selected trace substances.   Its purpose is to
determine whether  these  unregulated  pollutants  should  be controlled in
order  to  protect  human  health.  Major activities are  epidemiological
studies,  in  vivo  and  in  vitro animal  toxicological  studies, and  human
clinical  studies.   These focus  on  pollutants  of greatest priority,
including  particulates  such  as  sulfates,  nitrates,  and trace metals.
This  research  characterizes  both  acute  and chronic  effects  of  exposure
to these particulate air pollutants.   The  studies  are specifically
designed to  determine the relationship  of  particulate size  to  observed
                                    11

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 harm  to  health  and  to  evaluate  the  possible  additive/synergistic  effects
 of  exposure  to  combinations  of  particulates  and  gases.   Listed  below  are
 some  of  the  major accomplishments in  1978:
      1.   The establishment of the clinical laboratory  evaluation  and
 assessment of noxious  substances  (CLEANS)  aerosol  facility.   This gives
 the Agency the  ability to generate  water soluble particles with a wide
 range of sizes  and  concentrations for human  exposure studies.
      2.   Animal inhalation exposure studies  to assess  the effects on
 normal  animals  of two  diameter  ranges of sulfuric acid,  0.3  micrometers
 and 0.05 micrometers,  alone  and in  combination with manganese particles.
 The data failed to  indicate  that  toxicity was related  to particle size.
 In  additional animal  studies, protective lung cells were exposed  i_n
 vitro to metal-coated  fly ash particles.  It was found here  that  toxicity
 increased as particle  size  decreased.
      3.   An  autopsy study performed in Dallas on white males in six ten-year
 age ranges  (0-9 to  50-59) in an attempt to determine whether normal cadmium
 concentrations  increased with age,  up to age 50.  It was determined that
 human cadmium levels in America are higher than those  in Sweden but
 lower than those in Japan.

 Transportation  Sources
      This  research analyzes emissions from mobile sources.   The major
 objective is to provide information about health effects for decisions
.on certification of gasoline and diesel vehicles.  Current emphasis is
 on diesel engines,  with studies being conducted to determine the extent
 to which diesel exhaust is  carcinogenic.
      EPA is conducting a series of studies for total diesel  emissions,
 specific diesel emission components,  and emission products from new
 catalyst control systems.  These studies include whole animal inhalation
 studies which  expose  both normal and specifically developed sensitive
 strains of  rodents to diesel exhaust, to determine whether tumors
 develop.  Non-carcinogenicity  studies with whole animals focus on  iden-
 tifying chronic obstructive  lung disease and  neurobehavioral effects.
 Epidemiological studies  are  being  developed  to  determine morbidity and
                                    12

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 mortality effects of diesel emissions-^*' In vitro screening tests are
 used to help characterize emissions and to identify hazardous biological
 activity.  In conjunction with in vivo tests, components of diesel emissions
 are being analyzed and their health effects characterized.  Specific
 accomplishments include:
      1.  A study on sulfuric acid emissions from oxidation catalyst
 equipped vehicles.  This study determined that the emission levels are
 too low to cause significant public health effects.
      2.  Various in vitro screening tests on components of the particulate
 fraction of diesel exhaust.  The particulate was found to contain mutagens
 and chemicals that cause neoplastic transformations in mammalian cell
 systems.
      3.  Range-finding inhalation studies using cats, rats, mice, and
 guinea pigs to evaluate levels of the total diesel exhaust from a light
 duty engine.  Measurement of all appropriate biological effects endpoints
 show no significant acute effects.
      4.  Three short-term experiments which found that mortality from
 infection was greater in mice exposed to diesel exhaust than in mice in
 air-exposed control groups.
      5.  Exposure tests on the neurobehavioral effects of diesel exhaust
 on neonatal rats.  The results show a significantly suppressed body
 weight and a depressed locomotor activity after exposure when compared
 to control animals.
to
 TERRESTRIAL ECOLOGY EFFECTS OF AIR POLLUTION
      Air pollution effects research on crop, vegetation, and natural
 ecosystems has provided important new information for updating Air Quality
 Criteria Documents.  These "welfare" effects form the basis for national
 secondary ambient air quality standards.
      The role of vegetation as a natural source of reactive hydrocarbon
 precursors to photochemical oxidants is uncertain, but most agree that
 it only marginally increases ozone levels in urban areas.  Agency research
 on this  subject has already generated some  important results.  Monoterpene
 emission rates from slash  pine  in the light were  similar  tn those in the
 dark.  Total monoterpene emissions ranged from  3  to 8 yg  C/g dry wt/hr
                                     13

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depending on ambient temperature.   Emissions rates  are closely related
to the vapor pressure of the individual  monoterpene.   The emission of
isoprene from oak is controlled by leaf temperature during most of the
day.  Light is required to provide the energy for isoprene biosynthesis
but it is the limiting factor only early in the morning and late in the
afternoon.  Over 80 percent of the daily isoprene emissions occur after
10 a.m.  Maximum isoprene emission rates are approximately 75 yg C/g dry
wt/hr.
     In acid rain experiments, forest productivity and nutrient cycling
were assessed in plots of model forest ecosystems.   Several changes were
observed in sugar maple ecosystems involving the effects of various
acidified rain treatments in comparison with the control (pH 5.7).
These included an increase in the leaching of calcium, magnesium, and
ions from water passing through the forest litter to soil and an increase
in the removal of calcium from leaf litter.  The germination of some
tree species was inhibited by acidified rain, but the germination of
other species was increased.  The effects of acidified rain on other
plant processes involving plant growth and litter decomposition are
being evaluated.  In studies already completed, acidified rain inhibited
the growth of radish roots and the yield of snap bean.
     Emissions from coal-fired power plants may not produce immediate
dramatic changes in surrounding plant and animal communities, but over  a
period of time changes may occur in the ecosystem's capacity to support
normal grazing pressures.  In SO- fumigation tests in eastern Montana,
protein content and digestibility of western wheat grass decreased.
Metabolism, growth, and reproduction of grass species were altered.
Lichen populations important in stabilizing soil were decimated.  Popu-
lations of beetles important to decomposition were reduced.  Activity of
some soil micro-organisms decreased.  All this evidence indicates sub-
stantial changes in a grassland ecosystem should the chronic stress from
S02 continue over an extended period of time.

SCIENTIFIC ASSESSMENT
     The scientific assessment program provides EPA's regulatory programs
with a centralized capability for evaluating information of health and

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ecological effects from exposure to pollutants and estimating the level
of health risk involved.  The program is capable of reviewing known
information about pollutant effects, interpreting this information, and
producing scientific data summaries to be used for subsequent risk
assessment in making other regulatory decisions.  EPA intends the hazard
assessment portion of the program to be responsible for maintaining
consistency and quality among the risk assessments prepared throughout
the Agency:  To ensure this, the program will establish agency-wide
guidelines and will review completed assessments.  In certain media, the
program conducts risk assessments and prepares criteria documents itself.
Typical outputs from the scientific assessment program include reviews,
guidelines (including guidelines on exposure  assessment), health criteria
documents, health assessments,  reports on special health/exposure situa-
tions, both preliminary and  full risk assessments dealing with carcino-
genic potential, and a new  initiative dealing with mutagenic effects.
     In October 1977 the scientific assessment program had two components:
the Carcinogen Assessment Group (CAG) and a  criteria  and effects assessment
activity.  The CAG  developed guidelines for  the  evaluation of carcinogenic
potential  and  risk,  performed  risk  assessments for the major EPA regulatory
offices,  reviewed  assessments  for some Agency program offices, and  acted  as
a  health  policy advisor  to  the Agency.
     The  criteria  and  effects  assessment  activity did the following:
 (1)  initiated  work  on  four  new air  criteria  documents, including particu-
 lates,  sulfur  oxides,  carbon monoxide,  and  oxides of  nitrogen;  (2)  com-
 pleted  work  on three criteria documents--lead,  photochemical oxidants,
 and  short-term nitrogen dioxide;  (3)  started health assessments  for two
 pollutants—perch!oroethylene and  ethylene  dichloride;  (4) developed a
 special  assessment document dealing with  altitude  as  a factor  in air
 pollution; and (5)  completed a background technical  report on  photo-
 chemical  oxidants.   The need for specific assessments are  identified by
 the program offices and the completed products  are  almost  always
 incorporated into Agency regulatory packages as supporting scientific
 information.
                                    15

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     The air criteria and effects assessment activity is increasing its
work.  Specific, work plans include:  (1) finishing air criteria documents
for oxides of nitrogen and carbon monoxide; (2) finishing health assess-
ments for perch!oroethylene, ethylene dichloride and cadmium; (3) starting
new health assessments for asbestos, haleothers, polynuclear aromatic
hydrocarbons, and polycyclic organic material (multimedia), as well as
for nickel, antimony, and zinc.  In addition, three special reports will
be started arrti completed, including reports to Congress on sulfur emissions
from mobile sources, health and welfare effects associated with particulates,
and a special assessment of the acid rain problem.

TRANSPORT AND FATE
     The first major field study in the Sulfur Transport and Transformation
in the Environment (STATE) program was conducted during August 1978 on TVA's
Cumberland Power Plant.  Using fully instrumented aircraft and mobile vans,
the coherent power plant plumes were tracked for distances up to 410 kilometers
downwind.  The chemical and meteorological data collected during the power
plant plume studies will be used for the development and validation for
sulfur dioxide/sulfate air quality models.
     Five comprehensive air quality simulation models (AQSMs) have been
carefully evaluated for future verification studies.  These AQSMs have been
developed to predict ambient sulfate and oxidant levels in urban atmospheres.
Some of these AQSMs, with proper modification, may be usable for air
quality prediction at the regional scale.
     The first phase of the Houston air quality field study has been completed.
Ambient measurement data were collected on major photochemical pollutants
such as oxidants, aerosols  (including sulfates), nitrogen oxides, and hydro-
carbons.  The later phases  of the  study include the acquisition of an
air  pollutant emission inventory for the Houston area followed by development
and  application of air quality simulation modeling.
     An historical study was conducted on visibility trends in the Northeast.
It concluded that visibility in the Northeast had declined significantly
during the past 25 years, especially in the nonurban locations where
major visibility declines of 10-40 percent were observed.  The urban/
suburban areas showed smaller visibility declines on the order of 5
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percent.  These studies on visibility /contribute to the overall knowledge
of the role of pollutants, especially atmospheric fine particulates, on
degrading visibility in various areas of the nation.

CHARACTERIZATION AND MEASUREMENT METHODS DEVELOPMENT
     Characterization studies  have been conducted on plumes from power
plants that burn residual oil  containing various amounts of sulfur and
vanadium.  Preliminary results  indicate that sulfate emissions can reach
as high as 10 percent of  the total sulfur oxide emissions.  This infor-
mation will be useful in  determining the contributions of primary sulfate
emissions from power plants to total airborne sulfate burdens.
     For mobile sources,  measurement and characterization studies have
shown the effect of various catalytic control systems on automotive
exhaust emissions  (regulated pollutants and sulfuric acid).  These
studies have also  indicated potential problems associated with advanced
catalytic control  systems and  drawn attention to the potential release
of mutagenic pollutants  in diesel  exhaust.
      In the measurement  of ambient air  particulates such as sulfates,
free  acid, and nitrates,  collection efficiency has  presented, a long
standing  problem.  A  promising research result has  been  the demonstration
that  high purity quartz  filters will  provide  significant improvement
over  commonly  used glass fiber filters  for  sampling particulate  nitrates.
      In order  to measure areawide emission  densities,  especially fugitive
emissions, a variety  of  measurement methods  has  been  sought.   One remote
optical  measurement  technique developed by  EPA shows  promise.  For
example,  in  a  recent  field  study, it  was  shown that specific  air pollutants
could be  measured  in  the 10 ppb concentration range.

MONITORING

 Stationary  Sources Emissions Measurement
      The experimental work on polychlorinated biphenyls  (PCB)  was
 completed.   The Agency has written reports  on measuring  PCB in transformer
 fluids and incinerator emissions.
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Mobile Source Emissions
     EPA has completed a pilot study on CO intrusion in motor vehicles.
The study found the levels in school buses and taxis to be of sufficient
magnitude to evoke concern.  The Agency has written a report to Congress
on these findings.  EPA has initiated a large scale study on CO intrusion.
The 1977 Fuel Additive Manufacturers report has been reviewed and issued.

Ambient Air Measurements
     EPA validated the method for measuring PCB in ambient air and completed
a draft protocol for the development, evaluation, site selection, and
deployment of an Inhalable Particulate (IP) Network.  The Agency also
completed a pilot study where eight different samplers were operated
side-by-side.  Evaluation of the data from this will allow EPA to decide
on the type of samplers for the complete network.  Nomographs for
simplifying the calculation of the  Pollutant Standard Index (PSI) have
been prepared and issued to state and local monitoring stations.

QUALITY ASSURANCE
     Assistance was provided for revision to the requirements for
reporting air quality data to EPA for State and Local Monitoring Stations
(SLAMS) and prevention of significant deterioration  (PSD).  An inter-
comparison study of environmental radiological laboratories has been
completed.  Radionuclide standards, traceable to the National Bureau of
Standards, have been prepared and made available to  laboratories making
radiation measurements.  A progress report on monitoring performed by
the Ute Laboratory has been published.

FEDERAL REFERENCE AND EQUIVALENT METHODS
     Two reference methods (nitrogen oxide analyzer, ambient CO monitor)
and four equivalent methods ($02) were approved and  published in the
Federal Register.
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           IV.  STATUS OF STATE IMPLEMENTATION PLANS (SIPs)

     In the 1970 Amendments to the Clean Air Act, Congress directed EPA
to establish primary national ambient air quality standards  (NAAQS) to
protect the public health and secondary NAAQS to protect the public
welfare.  Congress also directed the states to develop and adopt SIPs  to
attain and maintain these standards.  In 1971, EPA promulgated NAAQS for
sulfur oxides, particulate matter, carbon monoxide, ozone (originally
called photochemical oxidants], and nitrogen dioxide.  SIPs  were developed
and placed into effect.  To meet statutory deadlines, the NAAQS were to
have been attained in most regions by 1975, with some extensions until
1977.
     By 1976 it became apparent that, despite significant progress, SIPs
were inadequate to achieve the NAAQS in many areas of the country.  EPA
therefore issued  numerous calls for states to revise their SIPs to provide
for attainment.   Questions also arose as to whether, and under what circum-
stances, new stationary sources might legally be permitted to construct in
areas where the NAAQS were not being met.   In response to these questions,
EPA published  its  Emission Offset  Interpretative Ruling.  This ruling
allowed new construction  in  areas  where NAAQS were violated as long as
stringent conditions were met  that would assure  further progress in
attaining the  standards.
      In August 1977  Congress amended the Act to  (among other things)
establish a statutory approach to  permit growth  in polluted areas, while
requiring attainment of  the  NAAQS  by specific deadlines.  Congress first
instructed  each state  to  list  those areas  where  NAAQS were still not
attained as of August  7,  1977  (nonattainment areas)  and instructed EPA
to  promulgate the list with  any  necessary  changes.   Each  state  then had
to  submit a SIP revision  by  January 1,  1979 providing for attainment of
the NAAQS as  expeditiously  as  practicable  for primary standards but no
later  than  the end of 1982  (or the end  of  1987  for areas  with  particularly
                                   19

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difficult ozone or carbon monoxide problems).  Congress also provided
that EPA's Off-set Ruling would govern new source construction until
July 1, 1979; after this date proposed major sources would be reviewed
under the provisions of a revised SIP.
     A list of nonattainment areas was promulgated on March 3, 1978 with
some subsequent modification.  SIP revisions are required for these areas.

PREVENTION dF SIGNIFICANT DETERIORATION

Final Regulations
     On June 19, 1978 the Agency published final regulations for the
prevention of significant deterioration (PSD) of air quality. (See
43 FR 26380.)  The regulations established guidance for the approv-
ability of SIPs for state PSD programs.  The regulations published also
incorporated the PSD requirements of the 1977 Amendments into EPA's
Federally-run preconstruction permit program for the review of new
sources and modifications.
     On September 5, 1979, the Agency proposed major changes to the
June 19, 1978 PSD regulations.   (See 44 FR 51924.)  This was done i'n
response to a court interpretation of these regulations (Alabama
Power Co. vs. Costle 13 ERC 1225; 13 ERC 1993).  Major changes were
proposed addressing source applicability, geographic applicability,
monitoring requirements, baseline and control technology issues, and
definition of potential emissions, among others.

SIP Progress
     Most state agencies have not had sufficient resources to prepare a
SIP for PSD and at the same time prepare SIP revisions for nonattainment
areas under the requirements of  Section 172 of the Act.  State plans for
PSD are expected to be submitted throughout 1979 and, in some cases,
during 1980.  The Agency expects that, within a year-and-a-half of the
March 1979 due date for state PSD plans, the great majority of states
will have prepared SIP amendments.  Some states have requested and
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received delegations of authority to run the program while they prepare
SIP revisions.  At this time, some states are expecting to incorporate
the EPA PSD regulations virtually verbatim into their own state regula-
tions.  Other states are  expected to submit for approval PSD programs
significantly different in  form from the EPA PSD .regulations as published.
The Agency is working with  these states and with air pollution control
agency associations to assure that such state programs can be approved
as being equivalent to the  EPA program.

PSD Set II (Other than S0q  and TSP)
      ^
     The Clean Air Act also calls for the Agency to promulgate regulations
to prevent significant deterioration resulting from hydrocarbons, carbon
monoxide, photochemical oxidants, nitrogen oxides, and lead.  EPA has
conducted a preliminary review of the issues and options related to
developing a PSD program  for these pollutants and  is now creating a
formal working group.  In addition, a contractor study has been let to
further examine the related issues.  Presentations have been made before
a committee of the National  Academy of Sciences to familiarize them with
this effort.  To date, the  Agency has not determined that any legislative
changes are needed to implement strategies for controlling Set II pollutants
on a Regional or multi-state basis.

Visibility
     The Clean Air Act Amendments provide for the  protection of air
quality related values, including visibility within the nation's Class  I
PSD areas.  In addition,  the Amendments set out a  national goal of
preventing any future visibility impairment and remedying any existing
visibility impairment in  mandatory Class I Federal areas.  SIPs must
contain measures necessary  to make reasonable progress toward meeting
this national goal.  Development of guidance for the characterization,
measurement, monitoring,  and modeling of visibility impacts  is currently
being  supported by EPA alone and in cooperation with the Departments of
Interior, Agriculture, and  Energy, and the Council on Environmental

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Quality.  These efforts aid EPA in reviewing PSD permit applications to
determine a proposed source's effects on visibility and in developing
SIP visibility regulations.

BUBBLE CONCEPT
     The Clean Air Act requires that states adopt implementation plans
to attain and maintain ambient air quality standards as expeditiously as
practicable, but no later than by dates set forth in the statute.  In
developing these plans states adopt regulations setting forth emission
limits which, when applied to sources contributing to the ambient air
problem, are calculated to assure that standards are attained.  In
making these decisions states regularly take into account the nature and
amount of emissions from each source, the control technology available,
and the time required for its installation.  However, SIPs are not
necessarily as economically efficient as possible nor are regulated
companies prompted to seek innovations in control technology.
     For this reason, on January 18, 1979, the Environmental Protection
Agency proposed a policy to allow plants to reduce control where costs
are high in exchange for an equivalent increase in control where abate-
ment is less expensive (bubble concept).  The policy statement recommends
that the states inform source owners of the availability of an alternative
emission reduction approach within the SIP, explain the advantages and
conditions of use, and be receptive to proposals from source owners
seeking to employ the more cost-effective mix of controls this policy
allows.  This policy statement was promulgated on November 29, 1979.
     Under the policy, sources may obtain financial savings by employing
more cost-effective mixes of control techniques than current process-by-
process regulations allow, as long as total environmental benefits are
not reduced.  Properly applied, the alternative approach should promote
greater economic efficiency and increased technological innovation.
     The possible financial savings of the alternative approach will
provide an economic incentive to plant managers to develop innovative
                                     22

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control strategies.  This  is one of the few opportunities to provide
positive incentives for  innovation, and,the new control strategies
developed in response  to the program could be used as a basis for
setting tighter standards  in the future.
     It is important to  note, however, the flexibility this policy
allows can only be granted in areas where states have successfully
demonstrated that they can meet air quality standards by the statutory
deadlines.  Therefore, EPA will not allow the alternative approach to be
used in a way that jeopardizes attaining requirements of the Clean Air
Act by permitting degradation of air quality in excess of the SIP
requirements or by weakening enforcement.  To avoid these problems, the
use of the alternative approach is carefully conditioned as described in
detail in the body of  the  proposed policy statement.  The policy is
intended, and should be  interpreted, as an alternative way to expedi-
tiously comply with the  SIPs1 requirements.

TRANSPORTATION CONTROL MEASURES
     In June 1978 EPA  and  the Department of Transportation (DOT) jointly
issued "Transportation - Air Quality Planning Guidelines" which have
been widely distributed  to Federal, state, and local air quality and
transportation agencies  as well as to regional planning agencies.  At
the same time, EPA and DOT signed a memorandum of understanding regarding
the integration of transportation and air quality planning.
     EPA published information documents in May 1978 on transit improvement,
bus lanes, carpools, vanpools, automobile inspection and maintenance
programs, and vapor recovery from gasoline marketing.  Other information
documents are under preparation, with publication expected in 1979.  In
September 1978, in order to review transportation control portions of
SIP submittals in a consistent and efficient manner, EPA prepared and
distributed a "Checklist for Review of Transportation Portions of 1979
SIP Submissions."
                                     23

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     In 1978, EPA proposed regulations on intergovernmental consultation
requirements. . The Agency held a public hearing and incorporated comments
into a final regulation which it expects to promulgate in 1979.  In
order to assist state and local governments, EPA widely distributed
"Section 174 Guidelines" (guidance on designation of lead planning
organizations for nonattainment areas and on determination of interagency
responsibilities).  The guidance was issued jointly by EPA and DOT.
     EPA and DOT also signed an interagency agreement on November 3, 1978
regarding integration of transportation and air quality planning funds.
In December 1978 the two agencies jointly announced the availability of
urban air quality planning grants and set forth policies and procedures
for applying for funds.
     Under the 1977 Amendments, the Administrator of EPA and the Secretary
of DOT shall not approve projects or award any grants where the Administrator
finds, after July 1, 1979, that a state has not submitted a SIP or is
not making a good faith effort to submit one.  EPA and DOT have negotiated
a draft policy for applying these funding limitations.  The EPA Administrator
may also withhold, condition, or restrict sewage treatment works grants
if a state does not have an approved SIP in effect.  A preliminary draft
policy was developed in December 1978.  State and local officials are
currently reviewing the draft policy.
                                     24

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                 V.  CONTROL OF STATIONARY SOURCES

NEW SOURCE PERFORMANCE STANDARDS
     The Clean Air. Act requires the Administrator to establish national
standards of performance for new sources in source categories that may
cause or contribute "significantly to air pollution which may reasonably.
be anticipated to  endanger public health or welfare."  The 1977 Amendments
reinforce the Act  by requiring the Administrator to publish a list of
categories of major sources for which standards have not been established,
determine priorities, and promulgate standards of performance for these
source categories  by August 1982.  Additional provisions of the 1977
Amendments require establishing revised emission limits and percentage
reductions in emissions from fossil-fuel-fired stationary sources.
Another feature of the 1977 Amendments is the review and, if necessary,
the revision of standards every four years.
     Du-ring 1978,  EPA promulgated standards for three source categories
(kraft pulp mills, lime plants, and grain elevators) and proposed nine
revisions and amendments to existing standards.  Guidelines were
developed for two  pollutants (sulfuric acid mist from sulfuric acid
plants and reduced sulfur compounds from kraft pulp mills) under
Section lll(d) of  the Act.  Standards development work begun prior to
1978 continued on  12 source categories and on six projects that had
been temporarily suspended.  In addition, the Agency initiated a
comprehensive source category  survey  (the first step in the standard-
setting process) for 22 source categories.
     The following sections summarize major activities in developing new
source performance standards during calendar year 1978.
     1.  Fossil-Fuel-Fired Electric Utility Steam Generating Units —The
major  regulatory action taken  under Section 111 during 1978 was the
development and proposal -of a  revised standard of performance to  limit
the sulfur dioxide, nitrogen oxides, and particulate emissions from new
                                   25

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fossil-fuel-fired electric utility steam generating units.  In 1976,
these units contributed 27 percent of the particulate matter, 65 percent
of the sulfur dioxide,.and 29 percent of the nitrogen oxide emissions in
the nation's air.  Approximately 300 new fossil-fuel-fired power plant
boilers.will begin operation within the next 10 years.  Coal consumption
is expected to increase from some 650 million tons in 1975 to between
1*400-1,800 million tons in 1990.  Under the current  (1978) performance
standards for power plants, national sulfur dioxide emissions are pro-
            •
jected to increase approximately 16 percent between 1975 and 1990.
     Consistent with the 1977 Amendments, the revision of the regulation
proposed in 1978 includes both an emission limitation and a percentage
reduction, and thereby seeks to both minimize sulfur dioxide emissions
and maximize the use of locally available coals. These changes would
require scrubbers on virtually all new utility steam generators con-
structed after 1978.  The principal issue associated with the proposal
is whether electric utility steam generating units that fire low-sulfur-
content coal should be required to achieve the same percentage reduction
in potential sulfur dioxide emissions as those that burn higher-sulfur-
content coal.  Each alternative has significant environmental, energy,
and economic implications.  In the proposal, the Administrator did not
indicate which of the alternatives should be adopted  in the final standard.
Although the full or uniform control alternative was proposed, other
alternatives were also described to solicit public comments.  The level
of control will be determined after analyses are completed and public
comments evaluated.
      2.  Fossil-Fuel-Fired Industrial Steam Generators -- A second major
program initiated in 1978 was the development of standards for fossil-
fuel-fired  industrial steam generators.  Under this program, EPA  is
gathering and studying the information needed for establishing standards
for particulate, sulfur dioxide, and oxides of nitrogen emissions.
Eight technologies for reducing boiler emissions are  being investigated:
oil cleaning and existing clean oil, coal cleaning and existing clean
coal, synthetic fuels, fluidized bed combustion, particulate control,
flue  gas desulfurization, nitrogen oxide combustion modifications, and
nitrogen oxide fuel gas treatment.  The  studies include characterization
of the emissions, emission reduction methods, potential control costs,
energy and  environmental  considerations, and emission test data.
                                    26

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     3.  Synthetic Organic Chemical Manufacturing Industry — A third
major project is the synthetic organic chemical manufacturing industry
(SOCMI) source category.  The SOCMI program, which was initiated in
1976, is designed to gather  the  technical and cost data base for the
control of air pollution  from the manufacture of organic chemicals.  The
principal regulations  EPA anticipates from  this program are new source
performance  standards  for-total  volatile  organic compound  (VOC) emissions.
This program will also provide control technique guidelines for use by
states  in developing SIP  regulations  for  VOC.   It will also provide a basis
for national emission  standards  both  for  hazardous air pollutants  from
benzene and  for  other  specific volatile organic chemical emissions that
may be  designated hazardous.
     The SOCMI program is complex  because the  industry is  large and
complex.  Organic chemicals  are  manufactured in an industrial chain that
begins  with  about ten  feedstock  materials produced prirrcipally in  petro-
leum refineries. These feedstocks  then  proceed through one or more
processing  tiers that  result in  thousands of final products.   In general,
each tier  contains  more chemicals  than  the preceding tier, the plants
manufacturing  the products  are smaller  than the plants supplying the
 feedstocks,  and  the volatilities of the product are  lower  than the
volatilities of the feedstocks.
      The SOCMI program focuses on the 350 to  400  plants  in the basic  and
 intermediate organic chemical manufacturing industry.  For the purpose  of
 developing standards,  the industry has  been divided  into  four categories:
 (1) emissions  from storage  tanks and transportation  vessels,  (2)  fugitive
 leaks  and spills of VOC, (3) losses of VOC from liquid and solid wastes,
 and (4) emissions from process vents.
      During 1978, data gathering activities for categories (1) and C2)
 neared completion and the Agency began to  draft control  technique  documents
 and documents to support standards of performance.  Data  gathering and
 analysis for category (3) emissions continued during 1978, as did
 assessment  of emissions  and control technology for category C4).
 Technical reports were begun on air oxidation and vacuum  distillation.
      4.  Major  Source Category  Priority  List — More than 200 processes
 were studied in determining the major sources for which standards  have
 not been established.   Nearly 150  of these emerged as "major source
                                     27

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categories" by virtue of their potential  to emit 100 tons  per year or
more of any one pollutant.  A priority list was developed  according to
the 1977 Amendment criteria:  (1) quantity of emissions,  (2)  anticipated
danger to public health or welfare, and (3) the mobility  and  competitive
nature of each source category.
     An aggregated list consisting of 72 major source categories  was
proposed in the Federal Register on August 31, 1978.
     5.  Revi«ew of Existing Standards — In 1978, EPA began reviewing
ten source categories for which standards of performance  have been in
effect for four or more years.  In this review procedure,  the Agency
assesses current industry statistics, process and control  technology,
and information on emissions, and analyzes the compliance test data
obtained since adopting the current standard.  The information gathered
in these reviews is used to determine whether the current standards
should be revised.  These decisions will be published in  1979 in  a
series of Federal Register Notices.

NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS  (NESHAP)
     Section 112 of the Clean Air Act provides for establishing national
emission standards for hazardous air pollutants.  A hazardous air
pollutant is one to which no ambient air quality standard applies and
which the Administrator reasonably anticipates will cause or contribute
to an increase in mortality or an increase in serious irreversible, or
incapacitating reversible, illness.  EPA's efforts to carry out the
responsibilities described in Section 112 include (1) identifying and
establishing priorities for potentially hazardous pollutants  and  their
sources, (2) performing health effects and exposure risk  assessments,
and (3) developing standards to limit the emissions of pollutants
designated as hazardous.
     In 1971 EPA listed asbestos, beryllium, and mercury  as hazardous
pollutants and, in 1973, promulgated standards to limit emissions of
these pollutants.  Since then, vinyl chloride has been listed as  hazard-
ous, and standards limiting emissions from the manufacture of vinyl
chloride and polyvinyl chloride have been promulgated.  In 1977 benzene
was added to the list of hazardous pollutants.
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     1.   Identification of Hazardous/Pollutants
     Programs to identify and assess the effects of potentially hazardous
pollutants continued in 1978.  The Agency undertook the development of
an airborne carcinogen policy to set forth planned approaches for identi-
fying,  assessing, and regulating carcinogens under the Clean Air Act.
In addition, development continued on "generic" standards for hazardous
organic chemicals to be made applicable, as appropriate, on an industry-
wide basis.
     A number of synthetic organic chemicals were studied, and health
risk assessments for arsenic and coke oven emissions progressed through
a review by the Science Advisory Board.
     EPA initiated a health assessment pertaining to asbestiform minerals,
to provide information needed to support decisions on regulating emissions
from taconite mining and processing and use of  crushed stone.
     In the Clean Air Act Amendments of 1977 and in technical amendments
to the Clean Air Act in 1978, EPA was specifically authorized to promulgate
and enforce "work practice" and'other non-numerical emission standards
under Section 112. ;
     2.  NESHAP Development
     Programs to develop standards  for sources  of identified hazardous
pollutants continued for two  categories of asbestos emission sources and
ten categories of benzene  emission  sources.  Control alternative evaluation
for coke ovens and copper  smelters  also continued.  In  these programs,
EPA placed major emphasis  on  characterization  of the sources, assessment
of control  technology,  and  identification of regulatory  alternatives in
the standard-development  process.

RESEARCH AND  DEVELOPMENT  OF NEW AND IMPROVED AIR POLLUTION  CONTROL
TECHNIQUES  FOR  STATIONARY  SOURCES
     For  certain  chemical  processing  industries, EPA undertakes
source  assessments  (1)  to  evaluate  the  environmental  impact of  sources
of  toxic  and  potentially  hazardous  emissions  from  organic materials,
inorganic  materials,  combustion and open  source categories,  and  (2)  to
                                     29

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determine the need for developing control technology for given types of
sources.  Sources under assessment include petrochemicals, nitrogen
fertilizer operations, phosphate fertilizer operations, and pesticides
manufacturing.  In 1978, EPA completed a comprehensive assessment of
emissions from the oil refining industry.  Data indicate that to reduce
release of volatile hydrocarbons from oil refinery operations, a
maintenance program to control leaks and fugitive emissions is potentially
more appropriate than applying end-of-stack controls.
     Control technology for ferrous metallurgical industries is under
continuing development.  EPA has undertaken projects with the goal of
controlling emissions from cokemaking, blast furnace tapping, and charging
of basic oxygen furnaces.  The Agency is trying to develop full control
of emissions from the sintering of iron ore.  It is also involved in an
extensive effort to assess, and ultimately to bring under control,
fugitive emissions from .all significant sources in the production of
metallurgical products.  The combining of the previously separate ferrous
metallurgical air and water research and development programs into a
multimedia program will result in optimum control of all discharges from
these industries.  Program highlights for 1978 include the completion of
a coke quench tower emission testing program and the completion of
environmental assessment of coke by-product recovery operations.
     Other representative highlights of the industrial air program in
1978 includes a completed study of alternatives for reducing SCL emissions
from copper smelter reverberatory furnaces, the evaluation of Danish
technology for control of lead emissions from secondary lead smelters,
and the demonstration of carbon adsorption control of hydrocarbon
emissions from the dry cleaning industry.
     In 1979 and beyond, the program will focus on hydrocarbon emissions
which are precursors to ozone formation, industrial particulate emissions,
and the emissions of hazardous metals and compounds.  The assessment and
control of fugitive emissions is receiving special emphasis.
     During fiscal 1978, EPA has made significant progress in developing
and demonstrating improved methods to control the emissions of sulfur
oxides, nitrogen oxides, and particulates.  The major thrust of the
                                    30

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program has been and will continued be to expand the use of our nation's
most abundant energy resource—coal — in an environmentally acceptable
manner.  To accomplish this goal, the program has focused upon the
direct combustion of coal to produce power and the production of synthetic
fuels from coal.
     In 1978, several significant advances in control technology progressed
from the conceptual stage to the prototype and/or demonstration stage,
including, the use of adipic acid modified limestone wet scrubbing
at 10 megawatt  (electric) scale.  Preliminary cost estimates indicate
that, for a constant level of  sulfur dioxide removal, the capital and
operating costs  of  the adipic  acid modified limestone flue gas desulfuriza-
tion process can be as much as 10 percent lower  than conventional processes.
This technological  development will provide a significant improvement in
wet  FGD performance and  is particularly beneficial for facilities firing
higher sulfur coals.
     The  control of particulate matter emissions  from the combustion of
coal has  been accelerated.   Efforts to demonstrate more cost-effective
processes have  been successful.  A modification  to electrostatic precipi-
tators which was developed by  EPA  promises to significantly reduce the
capital cost of particulate  control for low sulfur-high resistivity
coals.
      Progress  in the  control  of nitrogen  oxides  (NO  ) from direct coal
combustion  and  from combustion of  coal-derived synthetic fuels has been
significant.   EPA is  initiating the demonstrations of low NO  burners on
                                                            A
coal-fired  industrial  and utility  boilers.  This  technology is expected to
reduce  nitrogen oxide emissions to  less than one half of the levels  required
under  the current NSPS.   The demonstration  programs  initiated in 1978
will  be  completed in  1982.
      Taken  in  combination,  these advances will allow the expanded use of
coal  in  combustion processes  and minimize its associated environmental
 impact.
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     While the Department of Energy»'(DOE) has the lead responsibility to
develop advanced coal combustion processes and synthetic fuel from coal
processes, EPA has an active program to assess the potential environmental
impact of these technologies.  EPA's Energy Program has been assigned
the lead responsibility for assessing the environmental impact of the
DOE-Georgetown University demonstration of industrial scale atmospheric
fluid bed combustion.  During an extended combustion test, EPA determined
emission -rates of sulfur dioxide, nitrogen oxides, particulate matter
and organic compounds.  Currently, EPA is actively pursuing the chemical
and biological assays of samples obtained from synthetic fuels processes
and direct combustion processes.  These assays can be used to evaluate
the samples for potential carcinogenicity.  The environmental assessment
activity will be continued during FY79 and beyond.
     Another technological advancement is the development of dry
scrubbing systems for combined particulate matter and sulfur dioxide
control.  Activity in the dry SCL control field is being stimulated by
several factors.  First, dry control systems are less complex than wet
technology.  These simplified designs offer the prospect of greater
reliability at substantially lower costs than their wet counterparts.
Second, dry systems  use less water than wet scrubbers, which is an
important consideration in the Western part of the United States.
Third, the amount of energy required to operate dry systems is less
than that required for wet systems.  Finally, the resulting waste
product is more easily disposed of than wet sludge.
     This technology has been demonstrated at a number of pilot scale
plants of less than  10 MW (electrical) capacity.  Presently 3 full
scale facilities are under construction  (550, 455, and 450 MW electrical
capacity) and 6 additional facilities  (750, 750, 400, 400, 260, and 60
MW electrical capacity) are out for bid.  The three facilities under
construction are scheduled to initiate operation in the 1980-1982
time period and are  designed to achieve 85, 70, and 50 .percent sulfur
dioxide removal efficiency.  It should be noted that the  50 percent
sulfur dioxide control is based on the level necessary to comply with
an applicable State  Implementation Plan  requirement and not on the
technology.
                                    32

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                 VI.  CONTROL OF MOBILE SOURCE EMISSIONS

INTRODUCTION
     Title II of the Clean Air Act, as amended in 1977, sets  forth an
extensive centrol program for mobile sources, including automobiles,  trucks,
motorcycles, and aircraft.  The 1977 Amendments, while extending the
requirement of a 90 percent reduction in carbon monoxide (CO),  hydro-
carbons (HC), and oxides of nitrogen (NO ), also strengthened the
control of mobile sources in several other areas.  Specific mandates  of
          >
the Act now include:
     -  a 90 percent reduction in HC and CO for 1983 model  year
        heavy-duty vehicles and a 75 percent reduction in NO   for 1985;
                                                           "
     -  measurement of evaporative emissions of heavy-duty vehicles and
        a study of alternate evaporative control techniques;
     -  establishment of inspection and maintenance (I/M) programs for
        in-use vehicles in many parts of the country by the early 1980's;
     -  particulate emission standards for certain classes of vehicles
        beginning with model year 1981;
     -  attainment of emission standards by all vehicles regardless of
        altitude by model year 1984;
     -  assurance by manufacturers that a vehicle emits no hazardous
        pollutants (whether specifically regulated or not) before a
        certificate of conformity is issued.

STANDARD SETTING
     During 1978, the applicable standards for automotive emissions were
1.5 g/mile HC, 15.0 g/mile CO, and 2.0 g/mile NO .  In addition to
                                                A
upholding these standards, EPA prepared to assure compliance  with
statutorily-mandated standard reductions which come into effect
                                   33

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beginning with model  year 1980.   By-*l981,  these standards  will  have been
reduced to .41 g/mile HC, 3.4 g/mile CO,  and 1.0 g/mile NO .   (Table VI-1
                                                          /\
summarizes the changes in standards for light-duty vehicles.)
     Rulemaking activities in 1978 consisted largely of the preparation
of proposed regulations whose aim is to implement or support the 1977
Clean Air Act Amendments.  The final promulgation of these implementing
regulations is a long-term project whose completion is not expected
before 1981.  (In a few cases, this will  go beyond 1981.)
     Existing light-duty vehicle standards are being strengthened by a
series of rulemakings extending regulatory controls to previously
uncovered areas.  Activities for 1978 included work in the area of high-
altitude vehicles, whose emissions characteristics are different from
vehicles at lower levels.  Both a rulemaking stipulating interim high-
altitude standards and one requiring manufacturers to provide altitude
adjustment instructions are being developed, with an aim of promulgation
in 1979.  EPA also did preparatory work on a regulation governing
particulate emissions of light-duty diesel engine powered  vehicles.  A
regulation whose goal is to limit tampering with vehicle emission con-
trol system parameters was issued in 1978.  Other matters  which received
the Agency's attention were (1) a rule requiring manufacturers to perform
research on low NO -emitting vehicles, (2) a rule identifying one or
more short emissions tests correlating with the elaborate  Federal Test.
Procedure (FTP), and (3) a protocol for testing fuel economy retrofit
devices.  EPA anticipates either preliminary or final action for most of
these light-duty regulations during 1979.
     EPA complemented these activities with a vastly intensified effort
in the area of heavy-duty vehicle standards.  The reason for this new
emphasis is that existing heavy-duty standards are inadequate to protect
air quality, while current testing  procedures fail to represent in-use
emissions.  Over the course of the  next several years EPA will promul-
gate new standards for heavy-duty gaseous, evaporative, and particulate
emissions.  Efforts to date in this area have focused primarily on
technical and procedural problems associated with heavy-duty testing and
on the determination of appropriate baselines for calculating emissions
reductions.   Once these issues are  resolved, the standard-setting process
will culminate for most of these regulations in 1980.
                                   34

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      TABLE VI-1.  FEDERAL EXHAUST EMISSIONS STANDARDS (grams/mile)

                                   HC             CO             NO
Uncontrolled car
1-968-69
1 970-71
1972
1973
1975-76b
1977-79b
1980C
1981-82C
1983C
8.7
5.9
3.9
3.0
3.0
1.5
1.5
H
0.41°
0.41
0.41
87.0
50.8
33.3
28.0
28.0
15.0
15.0

7.0
3.4d
3.4
4.0
NR
NR
NR
3.1
3.1
2.0

2.0
1.0f
0.4e
NR = No requirement
  As measured .by •
  hot-start test.
a As measured .by the Federal constant-volume sampling,  cold-  and
  Interim standards  established in 1973 and subsequent years.
c Levels established  by  1977 Amendments to the Clear Air Act.
  Original  1975  requirements of the 1970 Amendments to the Clear Air Act.
e Original  1976  requirements of the 1970 Amendments to the Clear Air Act.
  Subject to waiver  for  diesels and small manufacturers.
^ To  be  established  only if  public health requires it; otherwise, standard
  is  1.0.
                                   35

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     In another area, during 1978 EPA officially proposed a rulemaking
and held a public hearing on turbine aircraft gaseous emissions retrofit
and modification of the 1973 aircraft standards.
     EPA's standard-setting activities are supported by ongoing programs
of technology assessment and emissions characterization.  Technological
innovations, such as three-way catalysts and electronic control systems,
are continually monitored and evaluated by EPA, as are the special
technical-problems related to the control of pollutants such as partic-   '
ulates, evaporative emissions, and oxides of nitrogen.  EPA's findings
in this area are regularly reported in such publications as the annual
Status of Technology Report for light-duty vehicles.
     The characterization of. currently unregulated pollutants is an
essential measure to assure continuing protection of air quality from
any health hazards related to mobile sources.  This is especially signifi-
cant because of the recent amendment to the Clean Air Act requiring
manufacturers to demonstrate that their products do not present an
unreasonable risk to the public health.  Of particular concern is
whether new technological developments in the automotive industry hold
the potential for presenting such a risk.  For example, it appears that
at least  some manufacturers anticipate a substantial increase in the
number of dies el automobiles distributed in the United States during the
next several years.  Preliminary evidence suggests that an element of .
diesel exhaust emissions is possibly carcinogenic.   Further efforts to
characterize diesel  emissions and assess their health effects will allow
EPA to determine an  appropriate regulatory response  to this potential
problem.

COMPLIANCE ASSURANCE
     During 1978, EPA  initiated a major revision of  one of its
traditional mechanisms  of assuring  compliance with promulgated standards--
the preproduction certification review program.  Furthermore,  it
undertook to implement  motor vehicle  inspection and  maintenance programs,
a  strategy  for bringing about compliance by in-use vehicles.
                                  36

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CERTIFICATION
     Preproduction certification review is EPA's. technique of assuring
                                                                 x
that a manufacturer's vehicle design is capable of meeting emission
standards.  Initiated in 1968, the program involves engineering review
of engine families representing all new vehicles sold in the United States.
Steps in the process include submission by manufacturers of extensive
technical data about prospective vehicles, emissions testing of proto-
types by manufacturers, review of engineering data and test results by
EPA, and, in certain cases, confirmatory testing of prototypes at
EPA's laboratory facility in Ann Arbor, Michigan.
     During 1978, EPA decided to proceed with a series of major changes
in the certification program." This regulatory reform is intended to
allow EPA to devote its energies to those engine families with the
potentially greatest air quality impact, while at the same time reducing
the paperwork associated with certification both for manufacturers and
for EPA.  Manufacturers will be given more responsibility for carrying
out a testing program for those vehicles with a less significant air
quality impact, with a limited review by EPA.  It is expected that this
reform, once it is fully implemented, will make the certification
process more efficient and  less burdensome while enhancing its ability
to protect air quality.  The first benefits of the new procedure were
felt in late 1978, when many manufacturers agreed to participate in the
revised certification program for Model Year 1980 on a voluntary basis.
(Earlier in the year, model year 1979 vehicles had been certified in
accordance with the traditional procedures, including about 1900
confirmatory tests by EPA.)
     In addition to its emissions reduction role, another benefit of
certification activities is the collection and analysis of data for
fuel economy purposes.  The information gathered by EPA supports both
the Department of Transportation's Corporate Average Fuel Economy (CAFE)
standard-setting and enforcement programs and the Department of
Energy's consumer information program.  Annual products of this
                                    37

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                                  '..•I*-
activity include the Gas Mileage Guide and new car fuel  economy labels.
The calculations also support a determination of compliance with CAFE
standards (which for model year 1979 light-duty vehicles is 19 MPG).
Approximately 1250 tests for fuel economy purposes were carried out by
EPA during 1978.

INSPECTION AND MAINTENANCE
     While the certification program demonstrates manufacturers'
capability of designing vehicles which can meet standards, it does not
address the question of in-use vehicles.  Throughout the decade, testing
by EPA and others has consistently indicated that vehicles on the road
fail to meet the standards they were certified to meet.  This occurs  for
a variety of reasons:  production variability, fluctuating ambient
weather and traffic conditions, tampering with or neglect of a car's
emission control system, or use of leaded gas in a car that required
unleaded.  In order to protect the nation's considerable investment in
automotive pollution control equipment, it is essential to devise a
strategy to improve the performance of in-use vehicles.
     EPA's basic approach was mandated by the 1977 Amendments to the
Clean Air Act.  All major urbanized areas (greater than 200,000 popu-
lation) of the country, which do not expect to attain ambient air quality
standards for automotive-related pollutants by 1982, must commit to
implement a mandatory motor vehicle inspection and maintenance  (I/M)
program by the early 1980's.  This commitment must be part of each
appropriate State  Implementation Plan  (SIP) revision submitted during
1979.   It must be  backed  up by a demonstration of adequate legislative
authority by July  1979, unless the state's legislature was not in session
and had no opportunity to consider any enabling legislation.
     I/M programs  involve periodic emissions testing of each car in an
affected locality, together with a refusal to register any vehicle that
fails the test and is not subsequently repaired.  It is anticipated that
the adoption of  I/M  by the  areas needing  it will allow them to demonstrate
attainment of air  quality standards by 1987, while at the same time,
avoiding the possibility  of restrictions  on growth for stationary sources.
                                   38

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EPA's I/M-related activities in 1978 focused on two areas - collection
of technical information and support to states and localities.   Among
the technical problems associated with I/M is the identification of
specific short emission tests which demonstrate acceptable correlation
with the Federal Test Procedure (a prerequisite for the statutory war-
ranty provision) and the related assurance that adequate equipment is
available to perform these tests.  EPA expects to have satisfactory
solutions ta these problems well before most localities will need to
proceed with implementation.  Also critical to the success of I/M is the
establishment of a reliable data base for predicting air quality
benefits of  such programs.  EPA's long-term study of an ongoing program
in Portland, Oregon, which was  pursued throughout 1978 with a projected
culmination  in 1980, is the primary source of this assessment data.
     Support to states desiring information about I/M has been'essential
because of the general lack of  expertise in this field and because of
the  complexity of  implementation.  Throughout 1978, EPA experts provided
advice to legislators, administrators, and technicians who needed help
with SIP preparation and the creation of adequate implementing legisla-
tion.  Because of  I/M's many variables (central or decentralized testing,
government  or contractor operation, stringent or lenient cutpoint,
etc.), EPA's informational  role will continue well into the implementation
phase.

ASSESSMENT
     One major  tool  for  assessing  the  effect  of  EPA's mobile source  air
pollution control  efforts  is the  Emission  Factors  Program.  The goal of
this program is  to determine the  emission  performance levels of in-use
vehicles at varying  mileage and age intervals after these  vehicles are
subjected to actual  owner  use  and  maintenance.   By performing tests  on
different types  of vehicles in several cities over a number of years,
 EPA can  draw conclusions  about the success  of its  standard-setting
 efforts.  The  collected  data are also  critical to  various  air quality
models  used by Federal,  state, and local  agencies  to predict ambient air
                                   39

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quality.  In 1978, as in previous years,  about 2000 in-use automobiles
were tested in six U.S.  cities.   EPA also performed smaller numbers  of
similar tests on light-duty trucks and motorcycles.
     Results of this emission factor testing have consistently indicated
the failure of in-use vehicles to meet standards .(although their per-
formance was better than that of earlier uncontrolled vehicles).
Between one-half and two-thirds  of even relatively new in-use cars fail
at least one of the emission standards.  In an effort to isolate reasons
for this persistent failure, EPA began a program of restorative mainte-
nance testing, which features repeated testing of in-use vehicles at
various points in a repair cycle (Table VI-2).  These tests have
generally confirmed the emission factor program's finding of poor per-
formance by many in-use cars.  However, the tests have also demonstrated
the dramatic potential for improvement as a result of even simple mainte-
nance on in-use vehicles (for example, correction of idle mixture and
speed).  This evidence bolstered EPA's 1978 rulemaking limiting auto-
motive  parameter adjustability;  it is also a strong argument on behalf
of I/M  programs.
                                   4C

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            TABLE VI-2.   IN-USE VEHICLE EMISSION  PERFORMANCE
             (Results of EPA Restorative Maintenance Testing
                           of in-use Vehicl es)
                                           Percent  Passing
*
Initial Test3
Second Test
Third Test
Final Test
California
47
58
72
78
2
Non-California
42
49
73
81
Total
43
51
73
80
    Testing on 100 model  years 1975-6 vehicles  in  San  Francisco  in  accordance
    with California standards.

2
    Testing on 300 model  years 1975-6 vehicles  in  Detroit,  Chicago,  and
    Washington, D.C. in accordance with Federal  standards.


    Initial test - before any maintenance.

    Second test - after correction of all  obvious  maladjustments  and
                  disablements except idle mixture and speed.

    Third test - after correction of idle  mixture  and  speed.

    Final test - after major tune-up and replacement of defective components.
                                   41

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                             VII.   ENFORCEMENT

STATIONARY SOURCE ENFORCEMENT

Clean Air'Act Amendments of 1977
     The Clean Air Act Amendments  of 1977 placed additional  requirements
on the states and EPA.  In particular,  the basic enforcement approach  in
dealing with violating major stationary sources (here defined as  facil-
ities individually capable of emitting  more than 100 tons  of a pollutant
per year) has been altered.  EPA and the states may no longer rely
primarily on the administrative order process to establish compliance
schedules, but must establish these schedules by judicial  action.   EPA's
new authority to seek civil penalties is being used in civil  actions to
create a positive incentive for compliance.  In addition,  under Section
120, EPA or a delegated state is required to give notice of noncompliance
to all major sources which are not in compliance by July 1,  1979,  or 30
days after discovery of the violation,  whichever is later, and to  establish
a penalty for continued noncompliance.
     During 1978, EPA spent much time and effort to develop regulations
for Section 120 noncompliance penalties.  (The proposed rules for  assess-
ment and collection of penalties for noncompliance were published  on
March 21, 1979.)  The noncompliance penalty program will be implemented
in 1979.
     In 1978, the Agency also devoted considerable effort to developing
regulations for Section 119 primary nonferrous smelter orders.  The
proposed rules for primary nonferrous smelter orders were published on
January 31, 1979.

State Implementation Plans (SIPs)
     A major goal of the EPA Stationary Source Enforcement Program is
attainment and maintenance of the national ambient air quality standards
                                  42

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(NAAQS).  The state and EPA share responsibility for ensuring that
stationary sources comply with SIP emission limitations so that target
levels of air quality are met.  The states have primary responsibility
for achieving clean air within their jurisdiction; however, the Act
requires that EPA take independent action when states fail to do so.
EPA also contributes to state air enforcement efforts through grants and
contractual assistance.  Direct enforcement by EPA is also necessary to
assist states where the state is unable or unwilling to take the
appropriate action to assure compliance.
     Over 200,000 stationary sources are now subject to SIP emission
limitations.  Approximately 24,000 of these are major sources, which
collectively account for about 85 percent of all air pollution from
stationary sources.  Therefore, enforcement efforts have  centered on
bringing these polluters into compliance to achieve the greatest
emission reductions possible.
     The enactment of the  Clean Air Act Amendments of 1977 placed new
responsibilities  upon EPA  for accelerated enforcement against all major
stationary source violators.  The Amendments require that all major
stationary sources in violation either be granted a delayed compliance
order  (DCO) or be brought  into compliance by means of a civil action.
     Consequently, EPA began  its Major Source  Enforcement Effort  (MSEE)
to  ensure  expeditious compliance of large recalcitrant sources that have
not yet  taken the steps  necessary to  satisfy the  requirements of  the Clean
Air Act  (i.e., SIP requirements, NSPS, NESHAPS) and the Clean Water Act
Amendments of 1977.   There are, of course, other  major sources which
once complied but no  longer do.  There are also minor sources.  These
and other  situations  will  not  be overlooked, but  they are outside the
scope  of this particular top  priority enforcement task.
      In  addition,  this  enforcement effort against major sources not yet
in  compliance with  the  Air and  Water  Acts occasions the first implemen-
tation of  EPA's  civil  penalty policy.  This  policy  is designed  to
encourage  compliance  and deter  violations by taking away  the economic
benefit of delayed  compliance.
                                    43

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     During FY 1978, EPA initiated 143 major air stationary source civil
actions and filed 30 civil actions.   Also as part of the MSEE drive,
EPA proposed 43 DCOs and promulgated 26 DCOs, while the states proposed
59 DCOs and promulgated 24 DCOs.
     In the past, enforcement efforts have concentrated mainly on
achieving standards for particulates and sulfur oxides.  It is now
apparent that considerable effort will also be needed to reduce levels
of photochemical oxidants since most areas are not attaining ambient
standards for this pollutant.  To deal with this, EPA will  increase
its focus on reducing levels of hydrocarbon emissions.  The Agency
will vigorously enforce existing emission standards, and it will assist
in developing enforceable emission limits in those nonattaining areas
where regulations are lacking.
     An essential part of EPA's enforcement program is to assure continued
compliance by sources already meeting the SIP standards.  To do this,
EPA and the states must conduct a large number of surveillance investi-
gations to monitor the compliance status of these sources.   The
incorporation into SIPs of expanded continuous monitoring programs will
substantially aid the enforcement effort.

Significant Pollution Control Agreements
     Republic Steel Consent  Decree -  On October  5, 1978, EPA and Republic
Steel made an agreement (subject to court approval) that would modernize
outdated facilities and ensure continued employment for 6,400 employees
at  Republic's Warren and  Youngstown  (Ohio) plants.
     Republic will  build  a new electric arc shop, a new sinter plant, a
new hot metal desulfurization unit, and expand the blast furnace capacity
at  Warren.  The company will close the two existing sinter plants at
Warren and will close one coke battery and three blast furnaces at
Youngstown.   Controls will be installed and replacements will occur, so
that both  plants will be  in  full compliance with existing air pollution
control requirements by December 31,  1982.
                                  44

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     TVA Consent Decree - On December 14, 1978, the Tennessee Valley
Authority (TVA), EPA, ten citizen, health, and environmental organi-
zations, and the states of Alabama and Kentucky made a final settlement
agreement (subject to court approval) to clean up air pollution at ten
of TVA's electric power plants in the Southeast.
     TVA is the nation's largest electric utility, and in 1975 emitted
2.1 million tons of sulfur dioxide.  This is 38 percent of all sulfur
dioxide pollution from power plants in the Southeast and 16 percent of
all such utility polluti-on in the country.  Under this agreement all TVA
facilities are required to meet air quality standards by the end of
1982.  This would mean a reduction of more than 970,000 tons of sulfur
dioxide and 85,000 tons of particulate emissions a year.
     The settlement requires TVA to install scrubbers at some plants and
to burn less polluting coal at other plants.  The scrubber requirements
will allow TVA to burn Eastern coal, which often has a higher sulfur
content.  Particulate  (dust material) air pollution controls are also
required where needed.  TVA is committed to reducing its sulfur dioxide
emissions to about half their present levels.
     This settlement, calling for capital investments of $1.02 billion
and annual operating and capital costs of $447 million (1982 dollars) is
the largest ever made with a major source of air pollution.
     As part of the agreement, TVA acknowledges that it has saved $260
million by not complying with air pollution regulations.  Under the
agreement, TVA will now spend that $260 million to make its Cumberland,
Tennessee, plant even  cleaner than now required.  The $260 million
payment relieves TVA of all claims both  for state civil penalties and
fines  and for  Federal  civil penalties arising  under Section 113 of the
Clean  Air Act.

Energy
     An area of  increasing  focus  is  the  relationship and balance between
                                                                      *
environmental  and  energy  concerns.   The  Power  Plant and Industrial Fuel
Use Act of 1978  prohibits, with  some  exemptions, new power  plants and
                                   45

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new major fuel-burning installations from using natural  gas or petroleum
as a primary energy source.  Also prohibited is the construction of
these new sources without the capability to use coal  as  an alternative
fuel or a primary energy source.  Exemptions will  be granted by the
Department of Energy (DOE) when environmental requirements could not be
met if coal is burned as a primary energy source.   EPA must work with
DOE to ensure that these new sources are constructed in accordance with
NSR, NSPS, and PSD requirements.  In addition, certain existing power
plants that have technical capability to use coal  or another alternate
fuel may be issued a prohibition order; thus, EPA will have to renegotiate
compliance methods and schedules to ensure that upon conversion these
sources still meet environmental standards.
     Section 125 was added to the Clean Air Act by the 1977 Amendments.
This provides that a major fuel burning stationary source may be prohi-
bited from using fuels other than locally or regionally available coal
if it is determined that this action is necessary to prevent or alleviate
significant local or regional economic disruption or unemployment which
results from that source's use of other fuels.
     Proceedings were instituted in Ohio under Section 125 in response to
petitions received by EPA from United Mine Workers, Ohio Mining and
Reclamation Association, Governor Rhodes, and Senator Metzenbaum.  On
December 28, 1978, EPA announced a proposed determination under Section
125(a) that action may be necessary to prevent or minimize significant
local and regional economic disruption and unemployment in Ohio if utilities
proceed with their plans to comply with SOp emission standards by switching
to out-of-state low sulfur coal.

MOBILE SOURCE ENFORCEMENT
     The Mobile Source Enforcement program is directed primarily toward
achieving compliance with vehicle emission standards, fuel regulations, and
mobile source related aspects of State Implementation Plans promulgated by
EPA under the Clean Air Act.  The activities of the program include
preventing the introduction into commerce of uncertified new domestic
                                  46

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and imported vehicles; enforcing both vehicle and engine assembly line
emission test-activity and the recall, warranty, and antitampering
provisions of the Act; developing and enforcing Federal  regulations for
removing lead from gasoline; and ensuring compliance with transportation
control plans, mobile source related vapor recovery regulations, and
inspection and maintenance programs.

Inspection/Investigation Program
     Section 206(c) of the Clean Air Act authorizes the right of entry
into vehicle manufacturing facilities to determine whether manufacturers
are complying with the provisions of the Act.  These inspections involve
the visual examination of production vehicles to determine whether the
vehicles are equipped with proper emission related components.  During
FY 1978, 31 of these inspections were conducted.
     In addition, 7 investigations of manufacturers were conducted as a
result of suspected violations of the Act.  Final action was also taken in
a case the Agency referred to the Department of Justice for civil action.
General Motors Corporation agreed to pay $170,000 as a civil penalty in.
settlement of an action involving the production of 1517 Chevrolet vehicles
with incorrect ignition distributors and 4309 Oldsmobile vehicles with
incorrect carburetors.

Imports Program
     Section 203 of the Act gives EPA and the U.S. Customs Service joint
responsibility for enforcing the prohibition against importing nonconforming
motor vehicles.  During FY 1978, EPA monitored the importation of all
motor vehicles that entered the United States.  Of these, over 1500 were
imported under bond pending a demonstration of conformity.  Administrative
sanctions were imposed against 250 importers for noncompliance with the
regulations and two cases were referred to the Department of Justice for
civil and/or criminal action.

Recall Program
     Section 207(c) of the Clean Air Act authorizes EPA to order the
recall of vehicles if they do not conform to emission standards.  For
the period from October 1977 to September 1978, 2.8 million vehicles were
                                   47

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recalled either by direct order of £PA or as a result of an EPA
investigation.  During that same period manufacturers voluntarily
recalled 1.7 million vehicles to correct emissions problems.   Twenty-six
vehicle classes are presently under investigation.
     In February 1978, Administrative Law Judge Edward B. Finch issued a
decision favorable to EPA after presiding over a formal  adjudicatory
hearing that had been requested by Chrysler Corporation.  Chrysler was
contesting the Administrator's December 8, 1976 order which involved
approximately 208,000 1975 Chrysler vehicles.  The major issues in the
litigation include the Agency's interpretation of the terms "properly
maintained and used" and "substantial number" as they are used in the
Act, the type of data which EPA may rely on to support a recall order,
and general manufacturer liability under the Act for foreseeable in-use
conditions.
     The decision, which was subsequently upheld in an appeal  to the
Administrator, will aid in establishing EPA's authority to recall in-use
vehicles that exceed standards because of a condition of misadjustment.
Chrysler has exercised further rights of appeal and the case is now before
the Federal Court of Appeals.

Emission Standards Waivers
     Requests were reviewed from the State of California for waiver of.
Federal preemption for enforcement of state auto emission standards under
Section 209 of the Clean Air Act.  Public hearings were conducted and
EPA decisions were issued on the waiver requests.
     Preparations were made for auto manufacturers' requests for waiver
of auto emission standards [carbon monoxide (CO) and oxides of nitrogen
(NO )] under Section 202(b) of the Clean Air Act.  They included issuing
   ^
guidelines for application and preparing notices for public hearings.
EPA began review of a NO  waiver request submitted by American Motors
                        ^
Corporation for 1981-82 model year.
                                  48

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Selective Enforcement Auditing
     Thirty-five Selective  Enforcement Audits of light-duty vehicle
manufacturers were conducted in FY 1978.  One manufacturer, Chrysler
Corporation, failed an audit in April 1978.  As a result of the failure,
Chrysler was ordered to recall and bring into compliance all of the cars
of the audited configuration built since the beginning of the model
year.  Manufacturers tested about 20,000 production cars as part of
their own quality control emission testing programs.  Based on this
testing conducted by manufacturers, no more than 14 percent of the
vehicles were exceeding the emission requirement for any one pollutant.
Among the domestic manufacturers, approximately 390 engineering changes
to production vehicles were made during the model year to improve
emission performance.  Most of these changes were made as a result of
emission problems identified by manufacturers in their own assembly line
emission testing programs.

State and Local Control Program
     EPA, the Commonwealth  of Pennsylvania, and a coalition of citizen
and  environmental groups  signed a consent decree on August 29, 1978, in
which the Commonwealth agreed to establish an auto emissions inspection/
maintenance  (I/M) program for the Philadelphia and Pittsburgh areas.
The  consent  decree was the  result of actions brought by  EPA and the
coalition to enforce the  I/M regulation promulgated by the Agency in
1973 as  part of transportation control  plans for the two areas.  The
program  will be run  either  by a single  contractor or by  a number of
private  garages.  Mandatory inspections will begin in 1980 or 1981,
depending on the  program  type, with  required repair of heavily-polluting
vehicles starting in the  second program cycle.  Approximately three
million  vehicles  are covered.
     The Agency has  appealed  the decision  in another I/M enforcement
action.  This suit  sought to  require the State of Ohio to deny regis-
tration  to  vehicles  which fail  Cincinnati's  I/M testing  program.  This
case is  presently awaiting  oral argument before the 6th  Circuit Court.
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Fuel  Switching/Gasoline Decontrol  -^
     As a result of numerous inquiries from the public and industry,  EPA
conducted intensive observations of automobile refuelings around the
country to investigate the extent of fuel  switching.  Fuel switching  is
the use of leaded gasoline in vehicles that require unleaded.  In addition,
a contracted study investigated fuel switching sensitivity to the retail
price differential between unleaded and leaded gasoline.  Fuel  switching
was observed in about 10 percent of the refuelings of unleaded vehicles.
     EPA also reviewed the DOE environmental impact statement on gasoline
price decontrol and the gasoline tilt regulations and submitted comments
pointing out the potential detrimental environmental effects of not
controlling the retail price, differential  between unleaded and leaded
gasoline.  DOE has subsequently proposed a rule to set a maximum differ-
ential between leaded and unleaded gasoline.

Unleaded Enforcement Program
     EPA has responsibility for enforcing Section 211 of the Clean Air
Act, relating to the regulation of fuels and fuel additives.  On
January 10, 1974, EPA promulgated regulations requiring the general
availability of unleaded gasoline by July 1, 1974, for use in 1975 and
later model cars equipped with catalytic emission control systems.
     EPA has established a nationwide fuels enforcement program to
ensure that affected retail outlets comply with these regulations.  This
program includes sampling of the fuel at retail outlets by Regional EPA
field inspectors and private and state inspectors under EPA contract,
and the analysis of the samples for lead content.
     In FY 1978, EPA conducted approximately 21,000 inspections of
service stations to ensure compliance with the unleaded fuel regulations.
This included 12,600 inspections through contracts and agreement with
18 state, county and local government agencies.   EPA has  issued
approximately 560 complaints and has collected $250,000 in penalties
during this period.
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Lead Phase-down Program
     On December 6, 1973, the EPA issued regulations under Section 211
of the Clean Air Act to control the amount of lead additives used in
gasoline.  The original lead reduction schedule limited the average
amount of lead in gasoline to a maximum of 1.4 grams per gallon (gpg) in
1976, 1.0 in 1977, 0.8 in 1978, and finally to 0.5 by January 1, 1979.
These regulations were upheld by the Court of Appeals for the District
of Columbia'Circuit in March 1976.
     Because of studies indicating that a danger of a gasoline shortage
might result if the original schedule was enforced, EPA amended the
regulations in September  1976.  The amended regulations retain the 0.5
grams per gallon standard, but  extend the period for compliance with
that standard from January 1 to October 1, 1978, in order to permit
sufficient  time for refiners to install the equipment necessary to meet
the  reduced lead level without  causing a gasoline  shortage.  The
January  1,  1978 standard  of  0.8 grams per gallon was suspended if a
refiner  could show  that  he was  taking actions  to procure and install
equipment  sufficient  to  ensure  that  he would meet  the 0.5 grams per
gallon standard by  October  1979 or  before.   In 1978, after  EPA review
and  approval, approximately  78  percent of national  refining capacity (19
refineries) was  permitted to operate under  suspension of the 0.8  gpg
lead standard.

Tampering
      A total  of forty-four tampering litigation reports were referred  to
 the Department of Justice on FY 1978.   Civil  penalties  totalling  $44,100
were collected under tampering case settlements and judgments  in
 FY 1978.  A new mobile source enforcement initiative will  focus  a nation-
 ally coordinated enforcement effort by conducting tampering and fuel
 switching inspections of the major chains of automobile repair facilities,
 fleet operators, new car dealerships, and gasoline retailers  located in
 potential   inspection/maintenance areas.   The inspections  will  also be
 used to support the President's Denver Air Initiative.
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COMPLIANCE BY FEDERAL FACILITIES   -
     On October 13, 1978, the President issued Executive Order 12088,
"Federal Compliance with Pollution Control  Standards," directing the
heads of Federal Agencies to bring their facilities into compliance
with the environmental laws as expeditiously as possible.  The President,
in issuing the order, reiterated his commitment to the goals of achieving
and maintaining a clean environment.  The Executive Branch is to provide
leadership in that effort.
     To ensure that the Presidential mandate is carried out, the new
order directs EPA to monitor the Federal facilities'  compliance and
includes a procedure for EPA, the Office of Management and Budget, and
the Federal Agencies to use for resolving any disputes about non-compliance.
Requests for exemptions from compliance, as authorized by the Clean Air
Act, will be reviewed by the President and will be granted only in cases
where he finds that national security or the paramount interest of the
nation is at stake.
     There are 294 Federal facilities presently classified as major
sources of air pollutants.  As of March 31, 1979, 60 (20 percent) of
those facilities were not meeting applicable air quality standards and
emission limitations.  Of the 60 non-complying facilities, 12 have
installed the necessary air pollution control equipment and are testing
its operation for compliance, 21 are in the process of installing control
equipment, and 23 have plans to correct their pollution problems.  No
additional equipment will be required to assure compliance at the
remaining four facilities.

THE LIST OF VIOLATING FACILITIES
     The List of Violating Facilities, under Section 306 of the Clean
Air Act, Section 508 of the Clean Water Act, and Executive Order 11738,
is designed to prevent the Federal Government from subsidizing Air and
Water Act violators with contract, grant, or loan monies.  In 1978, in
order to fully integrate the program into EPA's enforcement activities,
the program was transferred to the Office of Enforcement.  This was
reflected in amendments to the program regulations.
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     While no additional Air Act violators were listed,  two  facilities
of ITT Rayonioer, Inc. and one of the Velsicol  Chemical  Corp.  were
listed for Water Act violations.  Each of these was later de-listed
when they came into compliance.
                                   53

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                       VIII.   LITIGATION  IN  1978

DISTRICT COURT JURISDICTION
     In Kennecott Copper Corporation v.  Train,   the Ninth Circuit held
that district courts do not have jurisdiction under the citizen suit
provisions of the Act (Section 304) to compel the Administrator to
approve a SIP revision submitted by a state.  The enforceable mandatory
duty, the court held, is to act on the submission one way or the other.
The court also held that in evaluating the proposed SIP revision the
Administrator is not bound by state determinations of feasibility.
                                             ^
     In Environmental Defense Fund v. Costle.  an environmental group
challenged in Federal district court  EPA's decision not to make imme-
diately effective certain  portions of the PSD provisions contained in
the 1977 Amendments to the act.3  The court  found that it lacked subject
matter jurisdiction since  the provisions in  question constituted final
Agency action and,  therefore, were appealable only in the proper U.S.
Court  of Appeals, the  D.C. Circuit.   The Court of Appeals refused to
grant  a stay pending appeal and  recently upheld, on substantive  grounds,
the  action taken  by the  Agency.

 HAZARDOUS  AIR POLLUTANTS
      In  a  divided 1978 opinion,  the  Supreme Court  decided the Adamo
 Wrecking  Company case5 in a manner which  cast  serious  doubt over the
 validity of  "work practice" standards promulgated  under  Sections 111 and
 112 of the 1970 version of the Clean Air  Act.   Adamo  Wrecking had  been
 charged with a criminal  violation of EPA's  Section 112 demolition standards
 for asbestos and defended in  district court on the ground that a work
 practice standard (as opposed to a numerical emission standard) is  not
 an "emission standard," and therefore,  was  not authorized by the 1970
 Act.  The Court first determined that such  a defense could be presented
                                   54

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during enforcement  proceedings  (rather  than  solely  in  a  timely  challenge
to the regulations  pursuant to  Section  307(b)(l)  of the  Act)  and  then
essentially  agreed  that  work practice standards  are not  emission  standards.
     The  1977  Amendments to the Clean Air Act contain  specific  authority
for  the establishment of work practice  standards  under both  Sections  111
and  112.6 Technical  amendments passed  in 1978 made clear the enforceabi 1 ity
of such standards.    Work practice standards promulgated prior  to the
passage of th'e 1977 Amendments  are now  in the process  of being  repromul-
gated  by  the Agency to assure their vitality.

USE  OF MODELING IN  THE PROMULGATION OF  SIPs
     As a result of the state's failure to submit a SIP  for  S02>  EPA
promulgated  a SIP for Ohio in August 1976.  In large part, the  SIP was
based  on  sophisticated air quality dispersion modeling.   Because  of the
number of sources involved, the modeling was the most extensive used  to
date.   Thirty-five petitions challenging the SIP were filed  with  the
United States Court of Appeals for the Sixth Circuit.
      In  February and June, 1978, the Sixth Circuit upheld EPA's promulgation
           Q                             Q
of the SIP  except for one minor issue.   The Court found that the
Agency's  use of dispersion modeling as a "general working tool" to .
 determine the pollution restrictions necessary to attain the air quality
 standards was a "rational choice" well  within the Agency's discretion.
 In addition, the Court affirmed the informal rulemaking procedures
 followed by the Agency  in promulgating the  SIP.     The Court also dis-
. missed the State of Ohio's  request that  the  EPA plan  be set aside because
 the State was in the  process of developing  its own SIP.   The Court
                                                                   12
 stressed the  inordinate amount of delay  that had already occurred.

 AMBIENT  CRITERIA AND  STANDARDS
       In  January  1978, the American  Iron  and  Steel  Institute  (AISI) and 12
                                                       13
 steel companies  filed suit  in  Federal  district court,   seeking  the
 revision and  reissuance of  the criteria  document for  particulate matter
 on  an expedited  basis.   AISI also  sought to enjoin  the  enforcement, in any
                                     55

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manner, of the existing national ambient air quality standard for total
suspended particulate (TSP) pending revision of the standards based on a
revised criteria document.  On August 1, 1978, the district court ruled
that, pursuant to Section 307(b)(l) of the Clean Air Act, actions to
compel the Administrator to revise criteria documents or national
ambient standards may be brought only in the Court of Appeals for the
District of Columbia Circuit, and only the question whether the Adminis-
trator has performed his duty to review ambient criteria under Section
108(c) of the Act is subject to district court jurisdiction.  Resolution
of that issue has been reserved pending discovery.
                                  56

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REFERENCES.

 1.  572 F.2d-1349 (9th C1r. 1978).  '

 2.  Civil  Action No. 78-281, 	F-. Supp. 	 (D. D.C., March 15,  1978).

 3.  The provision in question, Clean Air Act Section 165, lists  various
     requirements that must be satisfied before a major source may receive
     a permit to locate in a clean area.

 4.  Citizens to Save Spencer County et al v. EPA. D.C. Cir.,
     Nos. 78-1002 (March 27, 1979).

 5.  Adamo  Wrecking Co. v. United States. 434 U.S. 275 (1978).

 6.  Sections lll(h) and'112(e) of the Clean Air Act, as amended  by
     Sections 109(a) and 110 of the Clean Air Act Amendments of 1977.

•7.  Section 13. of P.L. 95-623, the "Health Services Research,  Health
     Statistics and Health Care Technology Act of 1978," 2 U.S.  Code.
     Cong,  and Adm. News 92 stat. 3443 (1978).

 8.  Cleveland Electric Illuminating Co. v. EPA, 572 F.2d 1150 (C.A. 6,
     1978)  cert, den. 436 U.S. 911  (1979) and Cincinnati Gas & Electric
     Co. v. EPA. 578 F.2d 660 (C.A. 6, 1978) cert, den.        U.S.	
          (1979).                                         	

 9.  The Court remanded the record to EPA to reconsider the application
     of its rural dispersion model  for predicting pollution levels during
     very unstable weather conditions.  Cincinnati Gas & Electric Co.
     v. EPA, 578 F.2d 660, 662-664 (19787!  The Agency published  a response
     to the remand in the Federal Register on February 7, 1979.   44 F.R. 7798,
     After  the Agency has considered comments, it will publish its evaluation
     and take appropriate action.

10.  Cleveland Electric Illuminating Co. v. EPA, 572 F.2d 1150,  1164 (1978).

11.  Id^

12.  Id. at 1156-1156.

13.  American Iron and Steel Institute, et al v. Costle, No. 78-92
     (W.D.  Pa.).
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