TO THE



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


            PUBLIC LAW 91-604





                 TO THE



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


            PUBLIC LAW 91-604








       Air Quality Trends	    5
       Air Quality Monitoring	    7


       Introduction	    8
       Health Effects Research 	 . .    9
       Terrestrial Ecology Effects of Air Pollution	'   13
       Scientific Assessment	   15
       Transport and Fate	   17
       Characterization and Measurement Methods Development. .   18
       Monitoring	   18


       Bubble Concept	   21
       Prevention of Significant Air Quality Deterioration . .   22
       Major Emitting Facilities	   24
       Transportation Control Measures 	   25
       Visibility Protection	   26


       New Source Performance Standards	   29
       National Emission Standards for Hazardous
         Air Pollutants (NESHAP) 	   30
       Research and Development of New and Improved Air
         Pollution Control Techniques for Stationary Sources .   30


       Standard Setting	   33
       Compliance Assurance	   34
       Inspection and Maintenance (I/M)	   35
       Hazardous Pollutants	 . .   36
       New Technology	   37


       Stationary Source Enforcement 	   38
       Mobile Source Enforcement 	   42
       Compliance by Federal Facilities	   48
       The List of Violating Facilities	   49


       Prevention of Significant Deterioration  	   50
       Attainment Designations 	   53

                            LIST OF TABLES
Table                                                  Page
III-l.  Typical Yield Reduction by Weight
           (at ph 3.0)	    15
VII-1.  Additional Consent Decrees	    40


     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, 1979, 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  three 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(b) report  on major emitting facilities  (in
Chapter  IV).

                     I.  INTRODUCTION AND SUMMARY

     The national average ambient total  suspended particulate (TSP)
levels dropped approximately 10 percent from 1972 to 1978.  Ambient
levels of sulfur dioxide (S02) dropped 22 percent from 1972 to 1978.
Carbon monoxide  (CO) levels were reduced 35 percent from 1972 to 1978.
While there was  no predominant trend for ozone (O,), areas which showed
change over the  five-year reporting period tended to show recent
increases.  Nitrogen dioxide (N02) showed an increase of 1 percent per
year for 1974 to 1978.  Ambient levels of lead (Pb) near EPA monitors
dropped 26 percent between 1970 and 1977.

     EPA promulgated a national ambient air quality standard  (NAAQS)
for ozone  (03) on February 8, 1979.  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 to ozone.

     To comply with the  Clean Air Act's Part D (nonattainment areas),
50 of the  51 states and  territories  needing plan revisions made sub-
mi ttals in 1979; 39 of these were complete plan  revisions while 11  were
     On December 11,  1979,  EPA published a policy to allow plants  to
reduce control where  costs  are high  in  exchange  for an equivalent
increase  in  control where abatement  i.s  less expensive  (bubble concept).
      EPA's June  1978  prevention  of significant deterioration  (PSD)
regulations  were overturned  in part  in  June 1979 by a preliminary
opinion of the U.S.  District  Court of Appeals for the District  of  Columbia
 (Alabama  Power et  al).   The  Agency then proposed amendnents  to  the PSD

regulations in September 1979 which, among other things,  involve changes
in the basic criteria for determining which new or modified air pollution
sources are subject to the regulations, the requirements  for air quality
monitoring, and BACT applicability.

     During 1979, a new source performance standard (NSPS) was promulgated
for stationary gas turbines; a Section lll(d) standard was promulgated
for kraft pulp mills.  The NSPS for utility steam generators was revised
in 1979.  Standards were proposed  for seven additional categories:
glass manufacturing, internal combustion engines, phosphate rock prepa-
ration, aluminum plants [Section lll(d) standard], automobile surface
coating, lead battery manufacture, and ammonium sulfate production.
     EPA proposed a "Policy  and Procedures for Identifying, Assessing,
and Regulating Airborne Substances Posing a Risk of Cancer."
     Significant research  efforts  in support of the regulatory process
were initiated and carried out  in  1979 for nitrogen oxides  (NOX), sulfur
oxides  (SO  ), and particulate matter (PM).  These included  research
dealing with  low NOV coal  burners, NO  control technology,  flue gas
                   X          •   •    X
desulfuriration, dry SO   control processes, and inhalable particulate

     During 1979,  EPA  promulgated  a  rule  providing for a  90 percent
reduction  in  model year 1984 heavy-duty truck  HC  and  CO emissions.
      EPA made major changes  in  its pre-production certification  review
program in 1979.   These changes will  allow EPA to concentrate on  those
engine families  with the greatest  air  quality  impact  while simultaneously
reducing  the paperwork involved for both  EPA and  the  automobile
      Six states had operating automobile  inspection/maintenance  (I/M)
 programs  by the end of 1979.  Approximately 50 metropolitan areas in 29
 states will have to implement I/M programs.

     Preliminary work was begun in 1979 on the potential  health threat
posed by diesel engines.  Preliminary studies have indicated that
particulate emissions in diesel exhaust contain carcinogenic materials.


Stationary Source Enforcement
     EPA devoted a great deal of effort in 1979 to the development of
regulations, both for noncompliance penalties (Section 120) and for
primary nonferrous smelter orders (Section 119).
     During 1979, EPA initiated 76 major source enforcement effort
(MSEE) civil actions and 9 non-MSEE civil actions.  In addition, 65
MSEE and 4 non-MSEE civil actions were concluded in 1979.
     In addition, in 1979, EPA reached important pollution control
agreements with U.S. Steel, Crucible Steel, the Tennessee Valley Authority,
Wheeling-Pittsburgh Steel Corporation, and thirteen additional companies
or facilities.

Mobile Source  Enforcement
     During FY 1979, 1.8 million vehicles were recalled, either by EPA
order or as a  result of an EPA investigation; during that same period,
100,000 vehicles were voluntarily recalled by manufacturers to correct
emissions problems.
     In FY 1979, EPA conducted approximately 15,000 inspections of
service stations to ensure compliance with the unleaded fuel regula-
tions.  For this period, EPA issued approximately 280 complaints and
collected $240,000  in penalties.
     Forty-three tampering litigation reports were referred to the
Department of  Justice in FY  1979.  Civil  penalties of $32,320 were
collected under  tampering case settlements and judgments in that period.

Federal Facilities
     Of the 49 non-complying Federal facilities,  7 have installed the
necessary air  pollution control  equipment, 15  are in the process of

installing control equipment, and 27 have plans to correct their
pollution problems.

List of Violating Facilities
     The listing procedure prevents Air and Water Act violators from
receiving Federal contracts, grants, or loans.  Although no additional
Air or Water Act violators were listed in 1979, listing proceedings were
initiated by EPA with  respect to 3 facilities.  One facility was removed
from the list when it  reached a compliance agreement with EPA.

     On June 18, 1979,  the U.S. Circuit Court of Appeals for the
District of Columbia issued a preliminary opinion in the PSD litiga-
tion.  The opinion upheld in part and remanded in part EPA's regula-
tions.  The Court upheld provisions dealing with periodic increment
review programs, stack height limitations for PSD purposes, and EPA's
guidelines for modeling sources.  The Court remanded provisions dealing
with source size, definition of source, fugitive emissions, geographic
applicability, modifications,.preconstruction monitoring, and baseline
date.  The final opinion issued on December 14, 1979 reaffirmed all
but two of the fundamental holdings in the June summary opinion.
Those dealt with geographic applicability and monitoring.
     Three circuits  of the U.S. Court of Appeals have ruled and split
on the procedural validity of EPA's March 3, 1978 promulgation of
attainment status designation.  The Third and Fifth Circuits found
that EPA did not show  "good cause" for dispensing with prior notice
and comment.  The Seventh Circuit, however, found that EPA had good
cause to promulgate  before taking comment because the Clean Air Act
established a strict time schedule for the designation process.  The
Supreme Court has left the conflict among the circuits unresolved.

                        II.  AIR QUALITY TRENDS

     Overall, the nation's air quality is improving although substantial
portions of the nation are classified as nonattainment areas for each of
the national ambient air quality standards (NAAQS)  pollutants.   Long-term
progress is seen for total suspended particulate (TSP), sulfur dioxide
(502), carbon monoxide (CO), and lead (Pb).  The trend for ozone (0,) for
the nation as a whole has been stable.  Nitrogen dioxide (N02)  levels
have been increasing slightly.
     Ambient TSP levels dropped approximately 30 percent between 1960 and
1978 throughout the nation.  From 1972 to 1978, the national average
dropped approximately 10 percent:  Nationwide particulate emissions from
stationary sources decreased more than 40 percent between 1970 and 1978.
Substantial decreases in industrial emissions have a lesser impact on
ambient levels due to the contribution of fugitive dust.
     Sulfur dioxide ambient levels in urban areas improved dramatically
between 1964 and 1977 with levels dropping 65 percent.  Most of the
improvement took place in the late 1960's.  From 1972 through 1978, the.
national average S02 levels dropped 22 percent.  The sulfur oxide (SO )
emissions trend improvement was much less pronounced with an estimated
decrease of approximately 10 percent between 1970 and 1978.  The difference
in the rate of improvement in ambient levels versus emission trends is
partly attributable to the spatial distribution of sources.  SOX emissions
were reduced in urban areas and new sources were located in more rural
     Ambient CO levels in center-city locations have shown a steady
decline at the rate of 7 percent per year with an overall reduction of
35 percent  in ambient levels from 1972 to  1978.  The greatest improvements
have occurred at sites traditionally having the worst CO problem.  CO
emission trends are affected by changes  in CO emissions per vehicle mile
and in changes in the number of vehicle  miles travelled each year.

Estimates of national emissions of CO from highway vehicles show a
7 percent increase since 1970 largely due to a 30 percent increase in
total vehicle miles travelled.(VMT).  If vehicle miles travelled had
remained constant at the 1970 level, the nation would have experienced a
25 percent decrease in CO emissions.
     The observed improvements in ambient CO levels should be viewed
in terms of the balance between decreases in emissions, per mile and
increases in VMT.  The majority of CO sites with sufficient historical
data for trends would be expected to be in center-city locations.  Since
these locations may already  be traffic-saturated, a VMT increase would
not occur in the immediate vicinity of the site,  in other words, the
ambient CO trends may be more indicative of situations in which there
has been no growth in traffic.  Nonetheless, sites in traffic-congested
areas would be expected to record high CO concentrations that need to
be reduced.
     For ozone, 32 air quality control regions  (AQCRs) with 5 complete
years of summertime data were examined.  While  no predominant trend was
observed over the five-year  period, there was a tendency for areas
exhibiting change to be on the increase in the  most recent three-year
period.  After many years of showing improvement, the Los Angeles Basin
measured a sharp increase in ozone  levels in 1978.  The increase cannot
be explained as solely due to meteorology.  Both the effects of tampering
with automotive emission control  devices and fuel switching could be
responsible for the  increased ozone levels.  Nationally, vehicle miles
travelled have increased 30  percent between 1970 and 1978 and 20 percent
between  1974 and 1978.  This has  offset the expected decrease in volatile
organic  compound  (VOC) emissions  between 1974 and 1978.  The net effect
has  been a 3 percent increase in  VOC emissions  between 1974 and 1978.
The  trend in VOC emissions  is consistent with the national ozone trend.
     Nitrogen  dioxide composite  levels at 91 sites  in 33 urbanized
areas  show an  increase  at  the rate  of  1 percent per year from 1974 to
1978.  Total nitrogen oxides (N0x)  emissions have shown an increase of
6 percent between  1974 and  1978.   NOX  emissions from transportation

increased 8 percent while stationary source emissions  increased about
5 percent.  The stable pattern in NO  emissions since  1973 generally
agrees with ambient NCL levels.   Only three areas—Southern California,
Denver, and Chicago are in violation of the annual  l^ standard.
     Ambient lead levels in the vicinity of EPA monitors improved
dramatically between 1970 and 1977, dropping 26 percent.  This decrease
is consistent with the 30 percent decrease in lead  consumed through
gasoline sales over the same period.  Vehicle emissions account for more
than 88 percent of the total lead emissions.

     A streamlined, high quality, more cost-effective  national air monitoring
program is being established through the regulatory changes promulgated by
the Environmental Protection Agency on May 10, 1979.  This should
improve the nation's ambient air quality monitoring programs for the
NAAQS pollutants—total suspended particulate (TSP), sulfur dioxide
(SOg), carbon monoxide (CO), ozone  (03), nitrogen dioxide (N02), and
lead  (Pb).
     The revisions promulgated after consultation with the states will:
     - Set stringent requirements for a refined national monitoring network
       in areas with high population and pollutant concentrations to
       provide a sound data base for assessing national trends;
      - Give the states flexibility  to use resources freed from  State
       Implementation Plan  (SIP) monitoring work to meet their  own needs;
      - Establish uniform criteria for siting, quality assurance, equivalent
       analytical methodology, sampling intervals,'and  instrument selection
       to assure consistent data reporting among the states;
      - Establish a standard national pollutant reporting index  and require
       it for major metropolitan areas; and
      - Provide precision and accuracy estimates with the air  quality data
       to enable better  interpretation of data quality.
      The  promulgated  revisions have been designed to correct  monitoring
program  deficiencies  identified  by  a Federal-state-local working group
established by EPA in October 1975.  In addition, the changes will carry
out  the  mandate  for establishing a  uniform  national network required by
Section  319 of the Clean Air Act Amendments of 1977.


     Air quality criteria documents were issued for particulate matter
(PM), sulfur oxides  (SOX), hydrocarbons (HC), photochemical oxidants
(0 ), carbon monoxide  (CO), and nitrogen oxides (NO ) from January 1969
  A                                                X
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 secondary standard for
sulfur dioxide (S02) by revoking the annual secondary standard (the
three-hour standard  remains) and revising the air quality criteria for
SOX>  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.  The standard, which had been
proposed in December 1977, was set at 1.5 yg Pb/m , with averages to be
calculated over a  calendar quarter.  The standard is especially signifi-
cant because it establishes a precedent as the first NAAQS for a multi-
media pollutant.
     On February 8,-1979, EPA promulgated the NAAQS for ozone  (03).
The level of the primary  (health) and secondary (welfare) standard was
changed from 0.08  to 0.12 parts per million and the chemical designation
of the standard was  changed from photochemical oxidants to 03.
     Throughout 1979,  EPA continued its review of the NAAQS for CO, NOX,
SO  , PM, and HC, with  a view to revising the standards where necessary.
The Agency has now completed reviewing air quality criteria for CO and
is planning to announce a rulemaking proposal on CO early in 1980.  The
task of evaluating the short-term effects of nitrogen dioxide  started in
November 1977 and  has  since been combined with general revision of the

air quality criteria for NO , with the NO  criteria document now in
                           A             ^
preparation.  Work has also been proceeding on revising the criteria for
SO  and PM.  Finally, EPA is reviewing the health criteria for HC.
Review of the NAAQS is scheduled for completion by December 1980.

     The health effects research program is divided into three program
components:  criteria pollutants, noncriteria pollutants, and transportation
sources.  The program incorporates epidemiological studies, human volunteer
(clinical) 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 Amend-
ments of 1977 require that the ambient criteria and NAAQS be reviewed
and, where appropriate, revised at five-year intervals.
     In 1979, the major accomplishments'in the criteria pollutants
area included:
     -  Completion of short-term and intermittent  animal exposure studies
        which assess  the health effects of  repeated exposures to  ozone
        and  nitrogen  oxides.  These effects  include impairment of host
        pulmonary defense mechanisms which  are  important for clearance
        of  harmful agents,  such as bacteria, from  the  lung.  Impairment
        of  these mechanisms  increases  susceptibility  to infectious  disease.
        Further study  is planned  to validate and  refine the  initial  findings.
     -  Development  of  techniques  to measure health effects  parameters,
        such as pulmonary  functions in  animals, which  are  evaluated in
        human  exposure  (clinical)  studies.   These  techniques, when  fully
        developed, will  allow better comparison of animal  and  human
        responses  to pollutants.

 Realignment of clinical  studies  to  extend  experiments  on  effects
 from ozone exposures to  include  the initiation  of  experiments on
 effects from nitrogen dioxide exposures.   This  realignment was
 necessary to include more volunteers and to  use familiar  studies
 for standardization while incorporating new  computerized  systems.
 Results to date show that exercise  which increases rate and
 depth of respiration is  a major  determinant  of  pulmonary  physio-
 logical response (impairment) to ozone and nitrogen dioxide.
 This finding implies that persons exercising in the presence of
 these pollutants are subject to  greater harm than  those resting.
 Further studies are required to  correlate  levels of exposure with
 degree of impairment in both healthy persons and those at risk.
 Discovery of immunological effects in humans exposed to ozone
 while exercising included depressed DMA synthesis  in lymphocytes
 and decreased activity of lymphocytic membrane receptors.  The
 significance of these findings on  increased susceptibility to
 disease continues  to be studied to establish a data base allowing
 for rational policy  decisions.
 Development of techniques to quantify  pharmacologically-defined
 airway responses to  inhaled  pollutants in clinical studies.   A
 bronchial  challenge  mist  generator for airway  reactivity measure-
 ments was  also developed  which will simplify these techniques.
 Both of  these major developments are  necessary to determine  the
 effects  of pollutants on  populations  of sensitive individuals
 such as  asthmatics.  This capability  will also be used in  studies
 on noncriteria pollutants.
• Completion of data collection in an epidemiclogical study  in
 Los  Angeles attempting  to link  pollution  from  photochemical  smog
 with incidence of  acute respiratory disease.   The  results  are
 being  analyzed and are  expected to be published in  1980.
- Completion of data collection  in Utah which relates levels of
 several  air pollutants  to chronic  and lower respiratory  disease.
 Reports on this  study are expected in 1981.

     -  Improved management of the  analytical  complexity of environmental
       epidemiological  studies.  An  on-going  collaborative study between
       universities and mathematical  society  institutes to develop
       improved statistical  methodologies  for data  analysis in epidemio-
       logical  studies  has produced  a number  of technical  reports.  In
       many cases, the  reports will  significantly reduce the cost of
       those studies.

Noncriteria Pollutants
     Research in this area deals with air pollutants for which no NAAQS
have been set and with selected trace inorganic and organic substances.
Its purpose is to determine whether the regulated pollutants are controlled
appropriately and whether the unregulated pollutants should be controlled
in order to protect human health.
     In 1979, the major accomplishments in the noncriteria pollutants
area included:
     - Short-term and intermittent studies were completed on normal
       animals and animals with simulated upper and lower respiratory
       disease to determine the effects from exposure to various fine
       particulate ammonium sulfate species.  Results have shown few
       effects upon pulmonary function or upon biochemical, hematological,
       or immunological parameters.  These data have been provided for
       use in the development of criteria documents.  Further studies
       will follow.
     - Animal models of human respiratory diseases have been developed.
       These models represent conditions such as emphysema, hypertension,
       congestive heart failure, asthma, and pulmonary fibrosis and
       reflect the increased sensitivity to pollutant exposure seen in
       some humans.  They will be used in studies on both criteria and
       noncriteria pollutants.        .     .
     - A clinical study was completed to assess acute effects from
       inhalation exposure to low levels of sulfuric acid mist at
       various concentrations.  This study was undertaken as a follow-up
       to a 1978 pilot study.  Results indicated no significant decrements
       of pulmonary function.

    - A human  exposure  chamber was modified to permit the evaluation
      of  biochemical  and immunological factors during the performance
      of  clinical  studies.
    - A study  of asthmatics in Denver, Colorado, demonstrated  little
      association between elevated particulate levels and asthma  symptoms.
    - Evaluation of pulmonary function among  children in Montana  in
      relation to elevated particulate levels demonstrated  no  significant
      differences in effects in the  various exposure categories.
    - Data collection for an epidemiclogical  study  on changes  in
      pulmonary function in school children as a function of varied
      sulfur dioxide, nitrogen dioxide,  and particulate levels has been
      completed in Akron, Ohio.  Data  analyses are  currently underway.
     -  Data on morbidity and mortality rates  in several  Illinois cities
      were studied in relation to particulate pollution levels.  In
       some cases, positive associations  were  found  between  particulate
       pollution levels and health effects, but in other cases those
       associations were not found.   Further studies are needed to
       clarify the relationships observed.

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.  Specific
accomplishments  during  1979 include:
     1.   An  intratracheal  instillation study of diesel  particulates,
     alone and in  combination with ferric  oxide, has indicated a
     variety of responses in the  trachea  and lungs of treated  animals.
     2.   The mutagenic  response of several microbial bioassay  tester
     strains was compared for exposures  to diesel soot  extract,

     cigarette smoke condensate,  coke  oven  soot  and  extract and.
     roofing tar soot and extract.   The  results  suggested that a
     large portion of the mutagenic activity  from  diesel  samples
     was  due to nitrogenated compounds.
     3.   A battery of mammalian short-term  bioassays (confirmatory
     mutagenesis/carcinogenesis)  was used to  ascertain  the relative
     response to mobile source and  comparative emissions.  Preliminary
     analyses suggest that the potency of the diesel samples generally
     falls within the range of the  potency  of the  comparative samples
     which included coke oven emissions, roofing tar, and cigarette
     smoke condensate.
     4.   A study of the teratological  effects induced in  rats and
     rabbits by inhalation of whole diesel  exhaust was  completed.
     The  results were negative.
     5.   Preliminary studies of inhalation  of diesel exhaust have
     shown voluntary activity was decreased in exposed  rats.  There
     were also indications that development may  be delayed in
     6.   Mutagencity induced in whole animals as measured by three
     different indicators in mice was not  detected subsequent to
     inhalation of diesel exhaust.
     7.   An international symposium on the  health  effects of diesel
     emissions was held.  Researchers from  England,  Germany, Italy,
     Sweden, Japan, and the United States  presented  their most recent
     data on the characterization of diesel engine emissions and the
     biological response of exposures to whole exhausts and its

     Air pollution effects research continues to assess the impact of
air-borne pollutants on the environment  and on  important biological
processes.  Research emphasis is focused on the  criteria pollutants.  This

effort includes studies related to pollutant exposures of agricultural
crops and forest well as evaluations of detrimental per-
turbations within ecosystems:  The data generated from these activities
form the basis for updating air quality criteria documents on which the
secondary ambient air quality standards are based and provides information
for other Agency decisions  in support of the "welfare effects" mandate of
the Clean Ai r Act.
     Major accomplishments  in 1979 include:
     - Studies show  that  a  wide array of important agricultural crops
       are seriously impacted by  sulfur dioxide fumigations below the
       present standards.   The yield of one variety of winter wheat
       was reduced 22 percent.  Both yield and nitrogen fixation were
       decreased  in  a leguminous  forage crop.  The rate of photosynthesis
       in many plants is  depressed by short-term sulfur dioxide exposure.
       Some plants exposed  to sulfur dioxide were found to emit hydrogen
       sulfide gas to the atmosphere.  Other completed studies show that
       low concentration  of sulfur dioxide during the winter season
       significantly suppresses  subsequent growth and development of
       certain coniferous forest species.
      - Research  has  determined  that  night-time exposures  of plants
       to  realistic  concentrations  of  nitrogen dioxide during
       their entire  life cycle  do not  suppress growth.
      - Research  studies show that the concentration  threshold  at which
       ozone causes  injury to plants is  increased by limited water
       availability.  An ecosystem study has  demonstrated that photo-
        chemical  oxidants impacting a coniferous  forest  in southern
        California have caused a myriad of deleterious effects  ranging
        in ecological scale from altered physiological  processes to  a
        regression in successional patterns in higher plant life.   Process
        models are being developed which will  predict the magnitude  and
        direction of change over time under various pollutant regimes.

      Hydrocarbon effects investigations  have shown that pine forests
      emit significant quantities of monoterpenes,  an ozone precursor,
      and that the rate of emission increases exponentially with
      temperature.  Isoprene, another oxidant precursor, is emitted by
      a wide range of crop and forest species.  These two hydrocarbons
      may contribute significantly to pollutant air-mass loadings.
      However, it should be pointed out that these pollutants can
      also act as 03 scavengers so the net effect on 02 formation may
      be minimal.
      A national crop loss assessment network plan has been completed.
      This network will  supply a data base for predicting the economic
      effects of sulfur  dioxide and ozone on agriculture crops.
      Acid rain  studies  revealed that 8 out of 28 crops tested
      showed yield reductions.  Yields of the remaining 20 crops
      indicated  no change or  slight increases.

                            TABLE  III - 1
              Typical  Yield  Reduction by Weight (at  ph  3.0)
              Crop	Yield  Reduction (%)
              Broccoli                         25%
              Mustard greens                   30%
              Radishes                        56%
              Spinach                         15%
              Blue  grass                      30%
              Clover                          21%
     The scientific assessment program provides the Agency's regulatory
programs with a centralized capability for evaluating information on
health and 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 for subsequent risk assessment

or other regulatory decisionmaking.  The program will also be
responsible for maintaining consistency and quality among the risk
assessments prepared throughout the Agency.  To ensure this, the program
establishes on an as-needed basis Agency-wide guidelines for health and
risk analysis, e.g., draft guidelines for conducting risk analysis for
both carcinogenicity and mutagenicity.  It will also review completed
assessments that may be done by other offices within EPA for conformance
to Agency guidelines.  The program conducts risk assessments and prepares
health and environmental effect criteria documents for Agency regulatory
activities.  Typical outputs from the scientific assessment program
include:  reviews, guidelines, health criteria documents, aquatic
effects criteria documents, health assessments, reports on special
health/exposure situations, and both preliminary and full risk assess-
ments dealing with the carcinogenic potential, as well as mutagenic
     In April 1979,  the Agency established the Office of Health and
Environmental Assessment  (OHEA) to expand  its health related scientific
assessment capability. OHEA incorporated  the previously existing
Criteria and  Effects Assessment Program for Air Quality and the Carcinogen
Assessment Group together with new initiatives in criteria and effects
assessment for water quality, reproductive effects risk assessment, and
exposure assessment.
     The Reproductive  Effects Assessment Group drafted and  circulated
within  EPA an initial  set of guidelines and procedures for  conducting
risk analyses of mutagenic  toxicity.  After review and possible revision
these guidelines will  be  adopted  for  Agency-wide  usage.
     An Agency-wide work  group was convened to assist in  the development
of guidelines and  methodologies  for  exposure  assessment  to  coincide with
the establishment  of the Exposure Assessment  Group.  The  development of
these guidelines  in 1980 for Agency-wide  use  will  serve  as  a quality
control mechanism  for the Agency and  specifically enhances  uniformity
and consistency in the application of scientific  information for
exposure  analysis.

     The Environmental Criteria and Assessment Office,  which supports the
Agency's air regulatory program, issued the air quality criteria document
on carbon monoxide.  These reports are required under Section 109 of the
Clean Air Act, as amended.

     A first generation photochemical air quality simulation model
designed to predict pollution concentrations on the regional scale was
developed and delivered to EPA during 1979.  This model, which has been
under development since 1976, will be used in assessing the impact of
the  long-range transport and transformation of ozone and its precursors
for  the Northeast.  This work represents an integral part of the total
photochemical oxidant transport and fate program to assist the oxidant
1982 SIP evaluation/revision activities.
     Scientific  results obtained  from the  summer 1978 field study in the
Houston area were presented in  a  special conference.  At the conference,
technical  information was presented on the chemical and physical
characterization of photochemical  oxidants and aerosols found in the
Houston atmosphere.   This information describes the contributions from
both man-made and  natural sources,  historical air quality trend analyses,
and  air quality  modeling  studies.
     A  report was  prepared  that describes  meteorological conditions  that
are  associated with  high  ambient  ozone and sulfate  concentrations.   The
study  is  based on  a  summer  air pollution episode  that  occurred  in the
eastern portion  of the United  States.  This  study will  contribute to the
overall  understanding of  the atmospheric conditions  that lead to  extremely
 high levels of  pollution.
      A report was  prepared  that describes  the application of wind tunnel
 experimentation  to assessing  the  air quality impact from a  power plant
 located in complex terrain.  The  data collected from a field study,  which
 was  conducted on a coal-fired  power plant  located in the  Clinch River area,
 were compared to wind tunnel  results.  This  comparative study will  be used
 to  develop more accurate air quality simulation models to  assess the
 impact of stationary source pollutants emitted in complex terrain.

      In  the area of mobile sources research,  a  manual  of measurement
methods  was published for 12 unregulated  pollutants in the  tailpipe
emissions  of passenger cars.  These methods will  support the  implementation
of Section 202(a)(4) requirements on these pollutants. A report required
under Section 403(g) of the Clean Air Act, as amended, "Emissions of
Sulfur Bearing Compounds from Motor Vehicles  and  Aircraft Engines," was
completed and transmitted to Congress during  1979.
      For stationary sources, a special sampling device was  developed  to
allow the measurement of free sulfuric acid emitted  in the  flue gas  from
 coal- and oil-fired boilers.  The device  separates  the sulfuric acid  from
 other primary sulfates and was used to show that  free sulfuric acid may
 be as high as forty percent of the primary sulfate  emissions.


 Stationary Source Emissions Measurement
      Experimental work has  either been initiated  or completed in 1979
 for the following:  NO  emissions from stationary sources;  benzene
 emissions  from maleic anhydride  and styrene manufacturing plants; and
 new design specifications  for flow requirements to obtain valid stack
 samples.   The development  of system performance specifications for the
 evaluation and  validation  of continuous emission monitors  (CEM) for use
 in stack monitoring was continued.   Emphasis was placed on CEM systems
 for CO  and hydrogen sulfide (H«S)  for use in petroleum refineries.

 Mobile  Source Emissions
       Emphasis was  placed  on monitoring diesel  particulates.  Field
• studies were conducted  in  the New York Port  Authority Bus  Depot  to
 assist  health studies  in  diesel  particulates.  The mobile  source
 emission  study  in  Los Angeles was continued  to determine egress  of
 mobile  source pollutants  from expressways and  to determine the  proper
 siting  of equipment to  support  mobile source monitoring.

Ambient Air Measurements
     The  first  70 monitoring stations for the Inhalable Participate
Network  (IPN) have  been installed and are operating.  A new data
management system for  this  effort was developed and is operable.  A new
size selective  hi-vol  air sampler was developed for use on the  IPN
to  augment the  use  of  the dichotomous sampler.  Two new sites were added
to  the National  Forest Ozone Study.  An  in-house capability to  monitor
and measure  vaporous organic compounds in ambient air was developed and
placed into  service.   This  system will have great applicability in
determining  organic emissions  from  hazardous waste dump sites. .  A plan
to  conduct exposure monitoring for  ambient air pollutants has been

Quality  Assurance
     The states have begun  to  implement  the quality assurance portion of
the new  monitoring  regulation  (see  Chapter  II).  Additional grant funds
have  been made available  for this proposal.   In  addition, an  EPA Office
of Research  and Development quality assurance  program  to  assist the
 states to implement the  provisions  of the  new  State  Implementation  Plan
monitoring and quality assurance regulations  has  been  established and  is
 ready for use by the monitoring community.  The  development of  a quality
 assurance program for use of continuous  emission monitoring in  power
 plants was initiated,  a  quality assurance  audit  program involving
 numerous (over 100) participants for both  ambient air  monitoring and
 stationary source monitoring was continued,  and  a nationwide  mandatory
 quality assurance program for air pollutant measurement was initiated.
 The Federal  Reference and Equivalent Method Program was expanded and now
 includes 13 methods for monitoring  S02,  5  methods for  CO, 11  methods for
• 03, 12 methods for N02,  1 method for TSP,  and 1  method for lead.


     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
     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

difficult ozone or carbon monoxide problems).  Congress also provided
that EPA's Offset 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 approved by EPA.
     A list of nonattainment areas was promulgated on March 3, 1978 with
some subsequent modification.  SIP revisions were required for these areas
by January 1, 1979.
     By the end of 1979, 50 of the 51 states and territories needing plan
revisions had made submittals.  Thirty-nine of these were complete plan
revisions while 11 were partial.  Notices of proposed rulemaking (either
complete or partial) have been published in the Federal Register for 45
states.  In addition, EPA has published a proposal of West Virginia's
draft plan.
     Final action had been taken on three complete plans by the end of
1979:  Wyoming, Colorado, and South Dakota.  In addition, final action
was also taken on portions of four other state plans:  Georgia (TSP, 03),
Alabama  (TSP, 03), Texas  (Inspection/Maintenance), and Minnesota
(St. Cloud transportation control measures).

     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 December 11,  1979,  the  Environmental Protection
Agency published  a  policy to allow plants  to increase emissions where  costs
are high in  exchange for an  equivalent decrease  in  emissions  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
     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
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  policy statement.  The policy  is intended, and
should be interpreted, as  an  alternative way to expeditiously comply
with the  SIPs'  requirements.

     Part C  of  the  Clean Air Act  requires  the prevention of significant
air quality  deterioration  (PSD)  in those  areas  of  the  country which
meet,  or  have  air quality  better  than,  the  national  ambient air quality
standards.   Under the  PSD requirements,  such  clean air areas  are classi-
fied  into three categories.  The  changes  in air quality that  are allowed

to occur in these areas above baseline levels  are called increments.
For sulfur dioxide (S02) and particulate matter (PM), the Clean Air Act
established specific allowable increments of pollution that vary accord-
ing to the classification of the area.  It also required the establish-
ment in the future of air quality increments or other equivalent means
of preventing significant deterioration from the other criteria pollutants
(nitrogen oxides, hydrocarbons, carbon monoxide, lead, and ozone).
     The PSD review process, which has been'administered by EPA since
June 1975, focuses on only major new sources and modifications.  Major
construction, although low in terms of annual  numbers, does comprise by
far most of the emissions attributed to new sources each year.  Approxi-
mately 700 PSD permits have been approved since August 7, 1977, with
only 2 initial denials (both have since been granted).
     Under the current PSD program, major sources are reviewed to ensure
that best available control technology  (BACT) (determined on a case-by-
case basis) will be employed.  An air quality review is also necessary
for such sources.  These air quality reviews typically require an
analysis of the source's impact on the applicable NAAQS.  This in turn
can lead to the need for up to a year's worth of ambient monitoring
data.  In addition, impacts on soils, vegetation, and visibility must
also be assessed.  More involved reviews, including an assessment of
impacts to air quality related values,  are  required for sources that
would  impact Class I areas.  Finally, ambient reviews are also required
for particulate and sulfur dioxide sources  to determine that portion of
the PSD air quality increment  that has  been consumed previously by other
sources and to demonstrate that the  new  source's emissions will be
compatible with the remaining  portion of the increment.
     During 1979,  EPA's June  1978  PSD regulations were upheld  in  part
and overturned in  part  by  the  U.S. Court of Appeals for the District of
Columbia  Circuit  [see  Citizens  to  Save  Spencer  County vs.  EPA, 600 F.2d
844  (March  1979);  Alabama  Power Co.  vs.  Costle.  13 ERC 1225  (June 1979),
13 ERC 1993  (December  1979)].  As  a  result, the  Agency proposed amend-
ments  to  the  PSD  regulations  in September 1979  which  involve  changes  in
the  basic  criteria for determining which new or modified  air  pollution
sources are  subject to the regulations,  as  well  as changes  in  the

requirements for air quality monitoring, BACT applicability, and
calculation of increment consumption.  A major impact of the proposed
changes in the regulations would be that many previously reviewed sources
would no longer be subject to the regulations.  On the other hand, the
proposed rules would increase the number of pollutants that must be
monitored and would require a more comprehensive BACT demonstration.
The main features of the proposed PSD regulations include:
     - Apply to fewer  new pollution sources by allowing sources
       to take credit  for air pollution control equipment in
       calculating whether source's emissions are greater than
       the threshold for review.
     - Requires a permit only where net emissions increase  so
       that a source can offset  increases with reductions at the
       same plant to eliminate the requirement for permits.
     - Require an air  quality analysis  for each regulated pollutant
       which the source or modification would emit,  not just
       those pollutants covered  by air  quality standards  under
       Section  109.  Additionally, best available control
       technology  (BACT) would apply  to each  pollutant  regulated
       under the Act for which there  would  be a significant net
     Upon  promulgation of revised regulations  in  1980,  EPA  intends  to
 transfer the  PSD  program to the  states  through  the  SIP  revisions  process.
 State  assumption  of the program  will  improve  the  efficiency of review,
 enabling "one  stop" permit processing and faster  overall  permit review.

     The Clean Air Act requires  that the Administrator submit to the
 Congress a report on the consequences of implementing that  portion  of
 the PSD requirements which relate to major emitting facilities with a  .
 potential  to emit 250  tons per year or more.   The report is to examine
 the type of facilities covered,  the air quality benefits of including
 such facilities, and the administrative aspect of regulating such

facilities.  Due to extended litigation that commenced shortly after the
promulgation of PSD regulations in June 1978, and which was only
recently decided (December 14, 1979 - Alabama Power Company, et al vs.
Costle), preparation of the report has been postponed.  This was neces-
sary since the definition of potential to emit was a central issue in
the litigation and was, in fact, voided by the Court decision.  A
revised definition is to be promulgated in June 1980 and EPA expects to
submit the report discussed above to the Congress early in 1981.

     Several of the 1979 SIPs with transportation elements demonstrate
improving coordination between the EPA air quality planning program and
the Department of Transportation  (DOT) transportation planning program.
In most ozone and carbon monoxide nonattainment urban areas, specific
transportation measures with demonstrated air quality improvements have
been developed in accordance with the DOT planning process and have been
included in the SIP.
     The Clean Air Act [Section 172(b)(10)]  requires that all measures
in the SIP, including transportation measures, be accompanied by  commit-
ments from appropriate governmental bodies which will implement and
enforce them.  This has been a difficult concept to integrate into the
traditional transportation planning and implementation process.   However,
many areas have solicited and received commitments of varying strength
from local, regional, and state entities.  In one instance, a detailed
intergovernmental transportation  programming and implementation schedule
was submitted which clearly pictures,  the status of local, state,  and
Federal project commitments.  Other transportation planning agencies  are
being encouraged  to follow this example so that other agencies and the
public  can better understand  and  utilize the transportation programming
and implementation process.
      In 1979, work began  on the preparation  of transportation plans for
the 1982 SIPs using funds appropriated under Section  175  of the Clean
Air Act.   On  December  26, 1978, the first  $25 million of  a  total  of $50
million was made  available  to  planning agencies  by this jointly adminis-
trated  EPA-DOT  program.   A  small  portion of  this $50  million  has  been

allocated for contractual assistance to state and local  agencies in
developing the required data base for the 1982 ozone SIPs.   At year-end,
75 percent of these funds had been obligated.  It is expected that all
$50 million will be obligated by the statutory deadline of
September 30, 1980.

     The Environmental Protection Agency took several actions to meet
the requirements of the visibility protection segment of the Clean Air
Act.  Section 169A establishes, as a national goal, the protection of
visibility from impairment  by man-made air pollution in Class I Federal
areas.  The Act requires  that EPA promulgate a list of Class I areas
where visibility is an important value.  EPA must also promulgate
regulations and guidelines  for  the states and Federal Land Managers
concerning implementation techniques and incorporation of requirements
for making reasonable  progress  towards the visibility goal in State
Implementation  Plans.  The  Act  also  requires that, where applicable,
impacts  of proposed  new  sources on visibility be dealt with  through
Section  165(d),  Prevention  of  Significant Deterioration.
     After consulting  with  the'Department of the Interior, EPA  promulgated,
in November  1979,  a  list of 156 mandatory Class  I  Federal areas where
visibility  is an  important value.  At  the same  time,  EPA published
"Protecting  Visibility:   An EPA Report to Congress"  and issued  an
Advance  Notice of Proposed Rulemaking  for Visibility Regulations.
     The Report to Congress dealt with scientific  and technical issues
relating to visibility and visibility  impairment,  mechanisms for relating
sources  to perceived visibility impairment,  methods  for monitoring
visibility,  and alternative control  approaches.  The report concludes
 that the mechanisms of human perception and the fundamentals of atmo-
 spheric visibility impairment are understood reasonably well although
 some uncertainties remain.
      Visibility impairment is the result of light scattering and
 absorption by particles  (mostly fine particles) and to a lesser extent
 N0?.  Principal categories of impairment include:   plume blight near
 sources and widespread regionally homogenous haze.  Important source

categories contributing to the problem include utilities, industrial
fuel combustion, smelters, pulp mills, urban plumes, fugitive dust, and
managed fires.  Visibility in western states declined slightly from
1948-1972 but has improved since then, possibly as a result of smelter
emissions reduction.  Preliminary subjective assessments of visibility
by the Federal Land Managers indicate that roughly two-thirds of the
Class I areas have generally acceptable visibility conditions and about
one-third have undesirable conditions or a need to evaluate man-made
     The report comments  (1) that visibility impairment be defined as
any perceptible change in visibility  (visual range, contrast, color, or
other index from that which would have existed under natural conditions);
(2) that determination of whether such impairment is "adverse" or
"significant" should require judgments involving Federal Land Managers,
states, and the public, possibly on a case-by-case basis; and (3) that
certain vistas  in Class I areas which extend out of the area should also
be  protected.   Visibility protection  programs must deal with complex
scientific and  technical  issues as well as  social, psychological, and
economic values.  EPA  recommends a phased approach for visibility
protection programs to permit  available resources to focus on the most
clearly defined problems  and to allow for evaluation of  strategies  when
improved  information is available.  The report also summarizes additional
research  needed in  a number of key areas.
     After receiving comments  on the  Advance  Notice of  Proposed  Rulemaking,
EPA will  develop visibility protection regulations  and  guidelines  and
propose  them  in the Federal Register  in May 1980.   The  regulations  will
embody  the phased approach  recommended in the  report to  Congress.   The
first  phase  deals with visibility  impairment  that  is reasonably  attributable
 to  specific  sources by visual  observations  or other monitoring techniques.
The approach  will permit  state control agencies  to  focus initially on
 the most clearly  defined  cases of  existing  impairment  or potential  new
 source  impacts  and  on  strategies  to  prevent future  impairment.   It will
 also allow the  evolution  of additional guidelines,  control  strategies,  and
 an  improved  scientific understanding  of  source impairment relationships.

     Certain major sources  reasonably anticipated to contribute to
visibility impairment  in  a  mandatory Class  I Federal area will be
required to undergo  an  analysis  leading  to  possible installation of
best available retrofit technology  (BART).  For power plants greater
than 750 megawatts,  the BART  analysis must  be followed pursuant to
specific guidelines.  The proposed  regulations will also require that
each affected state  revise  its State Implementation Plan to include a
long-term strategy for  making reasonable progress towards the national
visibility goal.  With  respect to new sources, the regulations will rely
on the requirements  for visibility  protection set out in Sections 165(d)
and already in place in the PSD  regulations promulgated in June 1978.
The visibility regulations  package, however, will include documents
which expand on the  guidance  provided for PSD determinations.  Final
visibility regulations  are  expected to be promulgated in November 1980.


     The Clean Air Act requires the Administrator to establish national
standards of performance for source categories that may cause or contribute
"significantly to air pollution which may reasonably be anticipated to
endanger public health or welfare."  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.
     During 1979, the list, which identified 59 major source categories
for which standards will be set, was promulgated.  Standards development
work was initiated or continued for facilities within 54 of these source
categories with work on the remaining categories planned to begin early
in 1980.
     Standards were  promulgated for two categories—stationary gas
turbines and  kraft pulp mills  [Section -m(d) standard] while a
third—utility steam generators—was revised.  Standards were proposed
for seven categories—glass manufacturing,  internal combustion engines,
phosphate rock preparation, aluminum plants  [Section 111(d) standard],
automobile surface coating, lead battery manufacture, and ammonium
sulfate  production.  Standards  development  programs now underway are
planned  to result  in promulgation  of 5  standards and proposal of 14
standards  in  1980.
     The major regulatory  action taken  in 1979 under Section  111 was  the
promulgation  in  June of the revised  standard of  performance for new
electric utility steam  generating  units.  This standard, which will limit
sulfur dioxide,  nitrogen  oxide,  and  particulate  matter  emissions reflects
a balance  in  environmental, economic, and energy considerations.   In  this
 respect, it  is  sufficiently stringent to bring about substantial emission
 reductions  at reasonable costs without  significant energy penalties.  The
 standard,  through a  balance and recognition of varying  coal  characteristics,

supports the national objective of expanding environmentally acceptable
energy supplies without conveying a competitive advantage to any one
coal producing region.

     In response to the increasing attention which has been directed
toward toxic components of air pollution, EPA proposed a "Policy and
Procedures for Identifying, Assessing, and Regulating Airborne Substances
Posing a Risk of Cancer."  In concert with this, EPA published an
advanced notice of proposed rulemaking outlining draft generic work
practice and operational  standards which could be applied quickly to
reduce emissions of airborne carcinogens from certain source categories.
The proposed policy sets  forth criteria pertaining to the identification
and listing of air pollutants as  hazardous under Section 112 and estab-
lishes the basis for  identifying  minimum control requirements and criteria
to be weighed in determining what further control should be required to
reduce unreasonable health risk.
     During 1979, continuing work was directed toward establishing the
carcinogenicity of, and the extent of population exposure to, 43 priority
chemicals  identified  as probable  carcinogens.  Standards development work
continued  for coke oven emission  sources in  the iron and steel industry
and for major benzene emission  sources  in the chemical and petroleum
industries.  The first of these  standards, which are being developed in
conformance with the  proposed  airborne  carcinogen policy, will limit
benzene emissions from maleic  anhydride production and will be proposed
in  early  1980.

      In  1979,  EPA's  research  of pollution  control techniques  for
stationary sources  of air pollution  focused  on  three major areas:
control  of nitrogen  oxides,  sulfur oxides,  and  particulate matter.

Nitrogen Oxides (NO )
     Two industrial test sites were selected for the demonstration of
the low NO  coal burner.  One utility test site will be selected in
1980.  In addition, in 1979 it was demonstrated that NOX emission
levels from the low NOX coal burners are not affected by multiple burner
     An assessment of NO  control technology for industrial boilers was
completed in support of the development of a performance standard for
industrial boilers.  Field testing was initiated at industrial boilers
equipped with combustion modification technology to determine long-term
NO  emission levels.
     Bench scale evaluation of low NO  burner design concepts for
residual oil and synthetic liquid fuels from coal and shale was begun
in 1979.

Sulfur Oxide (SOj
             ^^"^^™ X
     Compliance testing was completed at the dual alkali flue gas
desulfurization (FGD) installation at Louisville (Kentucky) Gas and
Electric's Cane Run No. 5.  The long-term test program was initiated.
     The Fourth International Symposium on Flue Gas Desulfurization
was held in 1979.  Approximately 1000 people attended.
     The evaluation of dry sulfur oxide control processes on low-sulfur
coal-fired utility and industrial boilers was begun in 1979.  Final
negotiations were completed to begin the full scale demonstration of
adipic acid modified limestone wet scrubbing.

Particulate Matter (PM)
     A field sampling program to characterize inhalable particulate
matter (IPM) emissions from industrial sources was initiated in 1979
to support the standard setting effort.  The existing fine particulate
emissions data bank was converted to the inhalable particulate size
range.  This allowed EPA to make the initial determinations of various
emission factors for stationary sources.

     A great deal of research effort went into support of the new source
performance standards  (NSPS).  For instance, the technical feasibility
of substantially augmenting electrostatic precipitator (ESP) performance
by the use of a low cost precharger device suitable for new or retrofit
applications was established in 1979.  These applications will be required
to meet the revised particulate NSPS for utility boilers.  In addition,
data on costs, performance, and impacts of conventional particulate
control devices were developed to support the proposed NSPS for
industrial boilers.
     An initial assessment of the potential of dust trapping devices to
control diesel exhaust emissions of particulate matter was completed in
1979 to support EPA's  efforts to set a new emission standard.
     EPA developed a means of predicting fly ash resistivity from coal
and ash analysis and the performance of electronic precipitators using
flue gas conditioning  additives.  This provided a basis for EPA's Office
of Enforcement to establish an interim particulate emission compliance
     The feasibility of using felt filter baghouses for industrial
boiler flue gas cleaning applications was demonstrated.   Phase I evalua-
tion of baghouse usage on  a large low-sulfur coal utility boiler was
completed.  There are  increased applications for this technology for
low-sulfur coal burning utilities.
     A condensation scrubber application on an iron cupola was demon-
strated using 30 percent less energy than a comparable conventional
     Several important international workshops and conferences were held
in 1979.  A joint workshop with the  Republic of West Germany was held on
particulate control while  a  symposium on "Particulate Control and Measure-
ment" was held with  the Soviet Union.  The Third International Conference
on all aspects of particulate control, measurement, effects, and standards
was conducted in 1979.


     Title II of the Clean Air Act,  as amended in 1977, sets forth an
extensive control program for mobile sources, including automobiles,
trucks, motorcycles, and aircraft.   During 1979,  EPA's efforts in the
field of mobile source air pollution control  were geared to implementing
the ambitious mandates of that Act.   Specifically, significant progress
was made in three different areas:
     - Establishment of the regulatory framework required by the 1977
     - Intensive activity aimed at implementing and improving basic
       techniques to assure compliance with motor vehicle emission standards;
     - Attempts  to deal with emerging challenges and problems for the
       mobile source program posed by technological developments within
       the automobile  industry.

     Effective with  the  1980 model year,  the  applicable standards for
automotive exhaust  emissions were 0.41 gram/mile  hydrocarbons  (HC),
7.0  grams/mile carbon  monoxide (CO),  and  2.0 grams/mile oxide  of nitrogen
 (NO  ).   This marked  reduction  from  the previous years' automotive -
standards, which was dictated  by Congressional action, is  to  be  followed
by even  more substantial  tightening  in model  year 1981 to  0.41 gram/mile
HC,  3.4  grams/mile  CO, and 1.0 gram/mile  NOX.  Throughout  1979,  EPA
carefully monitored the automotive  manufacturers1  capability  to  meet these
 revised  standards.
      Equally important were EPA's efforts to implement Congress1 mandate
 to extend emission  controls beyond  these  basic automotive  standards.  In
 order to assure that controls for trucks  were as stringent as those for

passenger cars, EPA pursued work on a number of rulemakings during 1979.
A final rule providing for a 90 percent reduction in model year 1984
heavy-duty truck HC and CO emissions was promulgated.  In addition,
preliminary work was carried out on regulations setting new standards
for light-duty truck exhaust HC and CO emissions, heavy-duty NOX
emissions, and heavy-duty evaporative emissions.  Promulgation of these
standards is expected during 1980.
     EPA also carried out regulatory work to address special pollution
problems related to automobiles.  A final rule establishing standards for
particulate emissions of light-duty diesel vehicles was promulgated.
The unique characteristics of  emissions related to vehicles driven at
high altitude were acknowledged by the preparation of rules setting
interim standards  and defining appropriate performance adjustments for
such vehicles.   EPA started  a  formal NOX research program to be carried
out by manufacturers, as  required by the Clean Air Act.   Finally,  EPA
prepared regulations  revising  the existing emissions standards for
aircraft in order  to  enhance their enforceability.

      Pre-production certification  review  is  one  of  EPA's  long-standing
techniques  for compliance assurance  for mobile  sources.   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 prototypes by manu-
 facturers;  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 1979, EPA proceeded with a series of major changes in the
 certification program.  This  regulatory reform allows 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 are.
 given more responsibility to  carry 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  render the certification process more efficient and
less burdensome while enhancing its ability to protect air quality.
     Another special area of concern for the certification program was
the implementation of the parameter adjustment regulation, which had
been promulgated in 1978.  This regulation aims at easing the problem of
in-use vehicle maladjustment by giving manufacturers  an incentive to
limit the adjustability of vehicle parameters such as idle mixture and

     While the certification problem assesses manufacturers' capabilities
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 weather and traffic con-
ditions, tampering with or neglect of a car's emission control system,
poor maintenance, use of leaded gas in-a car which required unleaded,
etc.  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 in this field was mandated by the 1977 Amendments
to the Clean Air Act.  All urban areas of the country which do not
expect to attain ambient air quality standards for automotive-related
pollutants by 1982 must  implement a mandatory motor vehicle inspection
and maintenance (I/M) program by the early 1980's  (December 31, 1980
in the case of decentralized programs, December 31, 1981  for centralized
ones).  This  commitment must be part of each appropriate  State  Imple-
mentation Plan and must  be supported by a demonstration of adequate
legal authority.
     Areas  in six states have already  introduced operating programs.  As
of the end of 1979, approximately 50 metropolitan areas in 29 states
were obligated to implement  I/M programs.  Twenty-two of  these  states

have demonstrated legal authority and have taken at least preliminary
steps leading to the initiation of I/M.  The other seven states are
expected to make commitments to I/M during 1980.
     A variety of technical issues need to be solved by EPA before the
widespread implementation of I/M.  A precise determination of I/M benefits,
assessment of testing  technology, development of appropriate test cut-
points, and training of inspectors and mechanics are just a few of the
areas addressed by  EPA's technical staff during 1979.  The continuing
long-term study of  an  on-going  I/M program in Portland, Oregon, is the
primary source of data for many of these analyses.  This program has
provided conclusive evidence that I/M  is a very effective and economical
emission reduction  measure.
     With EPA's technical support, all affected cities should be able to
implement I/M programs in accordance with the established schedule.  It
is  anticipated that the  adoption of  I/M  in these areas 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.

      In  recent years,  there has been increasing  concern  about  the
potential  for the emission  of  hazardous  levels  of  unregulated  pollutants
from mobile sources.   One result of  this  concern was  Section 202(a)(4)
of the Clean Air Act which  requires  manufacturers  to  demonstrate  that
their  vehicles  do not pose  an  unreasonable  risk to the  public  health.
 (Pollutants potentially in the hazardous category  include lead,  cyanide,
 sulfides,  and amines.)  During 1979, EPA worked to establish a framework
 for the implementation of this section of the Act.
      In the short  run, one hazardous pollutants issue was of overriding
 concern—an assessment of the  potential  health threat posed by diesel
 vehicles.   Preliminary evidence has suggested that particulate emissions
 in diesel  exhaust  contain carcinogenic materials.   EPA is working to
 gather and analyze the data with which a determination of the  safety
 of diesel  exhaust  can be made.  Once this determination is made, some

sort of regulatory action may be called for.  The diesel issue is
particularly important because of the plans of several manufacturers to
increase substantially the production of diesel automobiles during the
coming decade.

     Recently there have been major advances in automotive technology.
The development of electronic components controlling the automobile's
internal operations creates many new opportunities for manufacturers.
For EPA, this trend can have implications for the adequacy of basic
compliance assurance techniques such as certification and I/M.  Con-
sequently, EPA undertakes a continual effort to monitor advances in
motor vehicle technology.
     One of EPA's concerns in this area is the potential of electronic
controls to operate as "defeat devices" allowing manufacturers to
circumvent the standard certification testing procedures.  Associated
with this problem is the entire issue of vehicle performance at conditions
other than those represented by the official Federal Test Procedure.
Several analytical efforts were undertaken in 1979 to assess the extent
to which in-use emissions control is vitiated by these factors.  Where
necessary, corrective action will be taken in future years.

                           VII.  ENFORCEMENT

     The purpose of the stationary source enforcement program is to
ensure that stationary sources of air pollution are in compliance with
emission limitations under State Implementation'Plans (SIPs); that new
stationary sources are constructed in accordance with applicable new
source review  (NSR), new  source performance standards (NSPS), and pre-
vention of significant deterioration (PSD) provisions; that stationary
sources subject to national  emission standards for hazardous air pol-
lutants (NESHAP) meet hazardous air pollutant standards; and that all
applicable provisions of  the Power Plant and Industrial Fuel Use Act of
1978 are implemented.
     EPA began its major  source enforcement effort (MSEE) in 1978 to
ensure expeditious compliance  of large recalcitrant sources which had
not taken the  steps necessary  to satisfy the requirements of the Clean
Air Act (i.e., SIP requirements, NSPS, NESHAP) and the Clean Water Act.
There are, of  course, other  major sources which once complied but no longer
do.  These and other situations will not be overlooked, but they are
outside the scope of this particular top priority enforcement task.
     During 1979, 76 MSEE civil actions and 9 non-MSEE civil actions
were initiated against  stationary air sources.  Also, during 1979,
65 MSEE and 4  non-MSEE  civil actions were concluded.  Therefore, from
the beginning  of  the MSEE (February 1978) to December 1979, 288 air
MSEE civil actions were initiated and 77 of the 288 civil actions were

Significant Pollution  Control  Agreements
     Consent decrees  to bring  33 major stationary air sources into
compliance were filed  with various  U.S. District Courts during  1979.
U.S. Steel signed an  agreement for  six of the company's western

Pennsylvania facilities on July 10, 1979.   The agreement will result
in a reduction of approximately 22,000 tons per year of particulate
emissions from the covered facilities.  Prospective civil penalties of
$18,900,000 for violating emission limitations and compliance schedule
dates were offset by construction of environmental controls beyond
those required under current regulations,  resulting in a further
significant environmental benefit.  On June 1, 1979, U.S. Steel signed
a decree that provided for a compliance schedule for its basic oxygen
furnace shop at its Chicago facility.
     On June 6, 1979, a consent decree was filed to bring Crucible
Steel Company's Midland, Pennsylvania, plant into compliance.  Crucible
will be switching from blast furnaces and coke oven operation to
electric arc furnaces and will install control equipment at a total
capital cost of $50,000,000.  The modernization and cleanup agreement
will result in approximately a 75 percent reduction in SOg and TSP
emissions from the Midland facility.
     Another consent decree was entered by the U.S. District Court for
Northern District of Alabama on October 15, 1979, to bring two TVA
facilities in Alabama into compliance.  A consent decree for eight
additional TVA facilities in Kentucky and Tennessee has  been lodged
with the U.S. District Court for  the Middle District of Tennessee, but
not yet entered by that  Court.  These agreements were  negotiated with
the active participation of the States of Alabama and  Kentucky  and
representatives of ten citizen, health, and environmental organizations.
Under  these agreements,  all TVA facilities are required  to meet emission
standards according  to an expeditious schedule with full compliance
at  all facilities by the end of 1982.  This will 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 require-
ments  will  allow  TVA to  burn  Eastern coal, which  often has a higher

sulfur content.  Particulate air pollution controls are also required
where needed.  TVA is committed to reducing its sulfur dioxide emissions

to about half their present levels.
     The Agency, Pennsylvania, West Virginia, and Ohio reached an
agreement with Wheeling-Pittsburgh Steel Corporation on a program to
bring all of the Company's violating facilities into compliance with
air and water pollution  control requirements.  The agreement will
mean compliance by all violating facilities between now and 1982.
     Under  the agreement, Wheeling will  considerably reduce its sulfur
dioxide and particulate  air pollution  emission by installing pollution
control equipment and  by upgrading existing coke batteries, sinter
plants, boilers, blast furnaces and basic  oxygen furnaces.  Federal
civil penalties for  violations  of  the  air  and water laws  have been
set at $4 million but,  because  of  the  Company's financial difficulties,
they are  deferred to be  paid  out of future profits.  Provision also
has been  made  for the  company to substitute other environmentally
beneficial  expenditures  instead of penalties.
     This  agreement  was  the  first  multi-state, company-wide agreement
EPA has  reached with a steel  company.
                              Table VII - 1
                       Additional Consent Decrees

      Company/Faci1i ty Name

      WSC Corporation - Chicago
      Inland Steel
      Bethlehem Steel - Johnstown
      Moberly Asphalt Main
      Bunker Hill
      Connecticut Charcoal Company
      Brown Company
      Kaiser Cement & Gypsum
      Arco Polymers (Atlantic Richfield)
      Cos Cob Power Station
      Ironton Coke Corporation  (McLouth Steel)
      Manchester Municipal Incinerator
      Republic Steel - Howl and  Street
                       Main Street
                       Pine Street


Regulation Development
     Regulations were proposed on March 21, 1979, which would establish
the procedures by which EPA and the states will assess and collect non-
compliance penalties under Section 120 of the Clean Air Act.  The regula-
tions also set forth the means by which the states may assume delegation
of the noncompliance penalty program.  The purpose of these mandatory
penalties is to recover the costs avoided by a source in not complying
with the Clean Air Act requirements, and thus to remove any economic
incentive for noncompliance.
     Regulations were proposed on January 31, 1979 to establish the
substantive requirements of initial primary nonferrous smelter orders
(NSOs)  issued under new Section 119 of the Clean Air Act and the pro-
cedures to be used in issuing those NSOs.  Any smelter receiving an
NSO  is  permitted to defer compliance with the sulfur dioxide emission
limitation to which it is subject under an applicable SIP.  Initial
NSOs may extend through January 1,  1983.  A smelter that receives a
Section 119 order will be placed on a rigorous compliance  program,
which  includes  interim controls, and a research  and development program
to  investigate  and to demonstrate control methods  that are economically
and  technologically feasible.  The  NSO program should accelerate the
movement towards  compliance  for the  smelter  industry.

      EPA has  been working with the  Department  of Energy  (DOE)  to ensure
that new energy-related  sources are constructed  in accordance  with
applicable  NSR,  NSPS,  and  PSD requirements.   In  addition,  certain
existing  power plants  and  industrial  boilers  having the  technical
capability  to use coal  or  another  nonpetroleum-based  fuel  may  be
required  to convert  under  the Power Plant and  Industrial  Fuel  Use  Act
and, upon  conversion,  still  meet  environmental  standards.   EPA will  be
 involved  in this process to  assure  that  sources  converting to  alternate
fuels do  so consistent with  applicable environmental  requirements.
      An example of EPA's effort  in  this  area is  the delayed compliance
 order for New England Power Company's  Brayton Point Station,  which was
 promulgated in the Federal  Register on November 29, 1979.   The order

was issued in conjunction with a prohibition order issued by DOE and
will allow the New  England Power Company to convert two generating
units at Brayton Point  immediately from oil to coal.  A third unit of
the Brayton Point Station will be fully converted to coal by December
1983.  These conversions to  coal will take place without compromising
EPA's obligation to protect  public health.  The Brayton Point conversion
will save approximately 13,000 barrels of oil per day or an average
yearly savings of over  4.7 million barrels.

     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.   The
activities  of  the  program include preventing  the  introduction  of
uncertified new  domestic and imported vehicles  into conmerce;  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

 Recall Program
      Section 207(c) of the  Clean Air Act authorizes EPA to order the
 recall of vehicles  if  a substantial number of any class of vehicles do
 not conform to emission standards.  For the period from October 1978
 through September  1979, 1.8 million vehicles were recalled either by
 direct order of EPA or as a result  of an EPA investigation.  During
 that same period,  manufacturers voluntarily recalled 100,000 vehicles to
 correct emissions  problems. Twenty vehicle classes are presently under
       In March 1979, an in-use surveillance testing program was initiated.
 This program  is designed  to test samples of privately-owned,  in-use
 vehicles  of a potentially nonconforming vehicle  class.   If the results
 show  that  an  emissions problem  does,  in fact,  exist  then  a full
 confirmatory  test program is  conducted.

     The Agency vehicle testing capability for recall  purposes was
increased during the year by the addition of a second  contractor-
operated emissions laboratory in Houston, Texas.   Combined with EPA's
other laboratory in Springfield, Virginia, approximately 1200 emission
tests per year can be performed.  This will allow EPA  to closely monitor
the emissions performance of in-use vehicles.

Emissions Standards Waivers
     EPA held a public hearing to review a set of requests from several
automobile manufacturers for waiver of the 1981 model  year carbon mon-
oxide (CO) emission standard.  The Agency issued a consolidated decision
which granted several waiver requests but denied the majority.  EPA also
held a public hearing on a second set of waiver requests.
     EPA granted a waiver of the 1981 and 1982 oxides  of nitrogen (NOX)
emission standard to American Motors Corporation as a small-volume,
vendor-dependent manufacturer under Section  202(b)(l)(B) of the Clean
Air Act.  EPA also held a public hearing to  review a set of requests
from several diesel automobile manufacturers for waiver of the 1981-1984
NO  emission standard and has made progress  in the review of  these
     Under Section 209 of the Clean Air  Act, EPA granted California  a
waiver of Federal preemption to enforce  its  highway cycle NOX regulation
for cars and light trucks.   EPA held a public  hearing to review California's
request  for a waiver of Federal preemption  to  enforce its emission
control  system  warranty regulations.  EPA  also successfully defended a
suit brought by automobile manufacturers and trade associations chal-
lenging  EPA's  decision to waive Federal  preemption to enforce its limi-
tations  on allowable maintenance  for  cars  and  light trucks.
      In  conjunction with  the Department  of Justice, EPA sought  to extend
for  a  second ten-year  period a  consent decree  from Federal court  pro-
hibiting automobile manufacturers  from agreeing  to exchange  information
or pool  resources  in developing emission controls.  A Federal District
Court  denied the government's  motion  for the extension.  The  case is
 under  appeal.

Selective Enforcement Audifing
     Thirty-seven  (37)  selective enforcement audits of light-duty vehicle
manufacturers were conducted  in FY 1979.  One manufacturer, General
Motors Corporation (GM),  failed two audits in April 1979.  As a result
of the failure,  EPA revoked the certificate of conformity of these
configurations which prohibited their further production.  In addition,
GM was ordered to  recall  and  bring into  compliance all of the cars of
the audit configurations  built since the beginning of the model year.
     Final action  also  was taken in a matter involving alleged improper
manufacturing, inspection and testing procedures  utilized by General
Motors during and  immediately prior to a selective enforcement audit.
EPA referred the matter to the Department of Justice for civil and/or
criminal action.  GM,  in  turn, brought a civil suit claiming that  EPA
engaged  in improper  and unauthorized procedures  in connection with the
audit  and its subsequent  investigation and  in connection with the
approval of a "running  change" requested by GM.   GM's suit also chal-
lenged the Agency's  general  authority to take certain actions in connec-
tion with any selective enforcement audits.   In  that suit, EPA counter-
claimed  that GM  had  failed to provide certain required information to
EPA during the Agency's investigation of the  audit.
      In  the settlement agreement  reached between EPA and GM  on these
claims,  GM agreed  to pay $90,000  and  to  expressly certify  as part  of
each  future GM  audit that GM has  conducted  that  audit  in a specified
manner.   GM and  EPA agreed to release  all claims arising out of  events
 relating to and  occurring immediately  prior to  the audit,  the audit
 and  its  subsequent investigation,  and  the running change request.  GM
 agreed to  dismissal  without prejudice of its  challenges  to certain
 aspects  of the  Agency's general  selective enforcement  audit  authority
 and  EPA agreed  to dismissal  of its counterclaim with  prejudice.   The
 Department of Justice  determined that criminal  prosecution was  not
 warranted in  this matter.
      Manufacturers tested about 18,000 production cars  as  part  of their
 own  quality control emission testing programs.   Based  on this  testing
 conducted by manufacturers, no more than 13.5 percent of the vehicles

were exceeding the emission requirement for any one pollutant.  Among
the domestic manufacturers, 65 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

Inspection/Investiqation Program
     The Clean Air Act authorizes the right of entry into vehicle
manufacturing facilities to determine whether manufacturers are com-
plying with Section  203(a)(l) of the Act which prohibits manufacturers
from introducing vehicles  into commerce which were not covered by a
certificate of conformity  issued by EPA.  These inspections involve the
visual examination of production vehicles to determine whether the
vehicles are  equipped with proper  emission related components.  During
FY 1979, three of  these  inspections were  conducted.   In addition, ten
investigations were  performed  to determine if  a violation of  Section
203(a)(l)  had occurred.

 Imports  Program
      Section  203(a)(l)  of the  Act  also  gives  EPA  and the U.S. Customs
 Service  joint responsibility for  enforcing the prohibition  against
 importing  nonconforming motor  vehicles.   During  FY 1979, EPA  monitored
 the importation  of all  motor vehicles  that entered the United States.
 Of these,  over 1600 were imported under bond  pending a demonstration of
 conformity.   Administrative  sanctions  were  imposed against more than
 200 importers for noncompliance with  the regulations.

 Lead Phase-down Program
      On December 6, 1973, 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 gpg in 1977, 0.8 gpg in 1978, and finally to 0.5 gpg 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 gasoline shortages could result
if the original schedule was enforced, EPA amended the regulations in
September 1976.  The amended regulations retain the 0.5 gpg standard,
but extended the period for compliance with that standard from January
to October 1, 1979 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 gpg
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 gpg standard on or before October 1979.  In 1978, after EPA
review and approval, approximately 78 percent of national refining
capacity  (10 refineries) was permitted to operate under suspension of
the 0.8 gpg lead standard.   In  1979,  in order to allow refineries to
make  more unleaded gasoline, the phase-down requirement of 0.5 gpg
was delayed until October  1980, allowing each Targe refinery  to
comply with a  0.8 gpg  lead standard  provided the proportion of unleaded
gasoline  is  increased  at  a sufficient pace  to meet the growing demand
for unleaded.

Fuel  Switching
      As  a result of numerous inquiries  from the public and  industry*
 EPA  investigated the extent of fuel  switching.   Fuel  switching  is the
 use  of leaded  gasoline in vehicles  requiring  unleaded.   In  1978,  EPA
 found that nearly 8 percent of the refuel ings  of unleaded vehicles
 were  with leaded gas.   This year,  with  the growing fuel  availability
 concerns, EPA intensified its efforts to observe fuel switching,
 especially in situations of shortages and outages  of unleaded gasoline.
 Further, EPA contracted for a motivational/attitudinal  survey to  assess
 the reasons that motorists switch fuel.  Additionally,  EPA clarified
 its rule on emergency use of leaded gas in unleaded vehicles and
 proposed rules for manning self-service pumps in situations of outages
 of unleaded fuel.

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 19, 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 1979, EPA conducted approximately 15,000 inspections of
service stations to ensure compliance with the unleaded fuel regulations.
This included inspections through contracts and agreements with state,
county, and local government agencies.  EPA has issued approximately
280 complaints and has collected $240,000 in penalties during this

     A total of 43 tampering cases were referred to the Department of
Justice in FY 1979.  Civil penalties totalling $32,320 were collected
under tampering case settlements and judgments in FY 1979.  As part of
a new mobile source enforcement initiative, field offices were estab-
lished in Washington, D.C., and Denver, Colorado.  The field office
personnel were trained and are actively conducting tampering and fuel
switching inspections and investigations of major chains of automotive
repair facilities, fleet operators, new car dealerships, and gasoline
retailers located in potential inspection/maintenance areas.

Regulation Development
     EPA has proposed two sets of regulations under Section 207 of the
Act.  One set is to establish the emission performance vrarranty.  This
warranty will require a vehicle manufacturer to repair, at no charge to
the owner, the emission control device or system of each vehicle

which fails an emission  inspection and maintenance test that has been
approved by EPA, provided  the owner has maintained and operated the
vehicle in accordance with the manufacturer's written instructions.
     The second set  of proposed regulations establishes a program under
which manufacturers  of automotive after-market parts, such as spark plugs,
air filters, and catalytic converters, can certify that use of their
parts will not cause a vehicle to exceed emission standards.  Vehicle
manufacturers will  not legally be allowed,to deny emission warranty
claims on  the basis  of the use of a certified part.
      EPA is also required by Sections  203 and 207 of the Act to enforce
a  second emission  warranty which has been in effect since the 1972 model
year.  This warranty requires that every vehicle be free from defects
that  would cause it to  exceed Federal  emission  requirements for five
years or 50,000 miles.   EPA has  investigated approximately  70 denied
warranty claims  and has  assisted  these owners in bringing warranty
claims.  To  ensure that vehicle  owners understand  their rights  under
this  warranty,  EPA has  published  a  public  information  pamphlet.

      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 noncompliance.
 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.

     During 1979, Federal  facilities  classified  as major sources  of air
pollutants made continuous progress toward coming  into compliance.   As
of December 14, 1979, there were 49 of these facilities not .meeting
applicable air quality standards and  emission limitations.   Of the 49
noncomplying facilities, 7 have installed the necessary air pollution
control equipment and are testing its operation  for compliance, 15 are
in the process of installing control  equipment,  and 27 have plans to
correct their pollution problems. ,

     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  1979,
amendments to  the  Listing Regulations  (40  CFR Part 15)  were published
 (44  FR 6910,  February  5,  1979)  and guidance for use of the program was
 issued by the Assistant Administrator for Enforcement.
      While no additional  Air or Water Act violators were listed  in 1979,
 listing proceedings were  initiated by EPA with  respect to  facilities
 of Sharon Steel  Corp.  (Farell,  PA),  Borden, Inc.  (Gramercy,  LA),  and
 AMAX Nickel (Braithwaite, LA).   A facility of Hooker  Chemicals
 (Columbia, TN) was removed from the  list when it  reached a compliance
 agreement with EPA.
      On  December 11, 1979, a U.S. District Court  ruled that a company
 which had been  removed from the list had no standing  to challenge the
 regulations (I.T.T. Rayonier vs. U.S., No. 78-275-Civ-J-B, M.D.  Fla.)

                       VIII.  LITIGATION IN 1979

     Many industrial and environmental groups  petitioned the Court of
Appeals for the District of Columbia Circuit to overturn the effective
date provisions of the June 19, 1978 PSD regulations.  (Those provisions
appear at 43 Federal Register 26406 [Sections 52.21 (i)(2)-(4)].)  The
Court issued its decision on March 27, 1979.  It denied each of the
petitions-, thereby upholding the effective date provisions entirely.
     The central element of those provisions was the general rule that
the regulations do not apply to sources for which certain permits were
obtained by March 1, 1978, and on which construction "commenced" by
March 19, 1979.  The environmental groups argued that EPA was applying
the new requirements too late.  The industrial groups argued that it was
applying them too soon.  Both sides also raised numerous procedural
issues.  In upholding the provisions, the Court concluded that the case
presented "a relatively  happy picture of an agency's attempt to bring
harmony and efficiency to a regulatory scheme that in its original
statutory conception was badly flawed."  [Citizens to Save  Spencer County
v.  EPA, 600 F.2d 844,890.]
     On June 18, 1979, the  U.S. Circuit Court of Appeals for the District
of Columbia issued  a preliminary  opinion on the substantive issues in
the PSD litigation.   (Alabama  Power Company v.  Costle, 13 ERC  1225.)
The opinion upheld  in  part  and remanded in  part EPA's regulations.  The
opinion was issued  in  summary  form.
     Among  the  provisions which the Court  upheld were those dealing with
 (i) protection  of  PSD  increments  through periodic  increment review
programs,  (ii)  limitations  on  the use of stacks for  PSD  purposes to good
engineering practice stack  height,  and (iii)  EPA's guidelines  for
modeling  sources.

     Among the provisions which the Court remanded are the following:
     Source Size - EPA's regulations applied to  each stationary
"source" with uncontrolled emissions of 100 or 250 tons per year,
depending on the source category.   The Court held that EPA should
have based its regulations on controlled emissions.
     Definition of Source - The regulations defined "source" as "any
structure, building, facility, equipment, installation, or operation
(or combination thereof)" located at one site and owned by common
interests  (emphasis added).  The Court held that the definition is
inconsistent with the applicable statutory definition, Section lll(a)(3),
which provides that a "source" is any "building, structure, facility,
or installation  . . . ."  The Court added, however, that  EPA had the
latitude  to define through rulemaking any one of those statutory terms
to refer  to an entire plant.
     Fugitive Emissions  -  In  determining source size, EPA's regulations
included  all  fugitive emissions.  The Court held  that, while EPA could
include fugitive  emissions for such purpose,  it would first have to go
through notice  and comment rulemaking.
     Geographical Applicability -  EPA's  regulations subjected  major
emitting  facilities  impacting on clean  areas  to  PSD review irrespective
of  the  location  of  the  proposed construction  site.  Under the  Court's
ruling, PSD review  only applied to  sources  locating in  areas designated
attainment or unclassifiable. The  Court did, however,  carve out  an
exception for sources  locating in  a nonattainment portion of one  state
and affecting an attainment  area in a second  state.
     Modifications  - Under EPA's regulations, only those modifications
which  would result in a gross increase in potential  emissions  above  a
 certain threshold were subject to  PSD review.  Under the Court's  ruling,
 all  modifications which would result in a net increase are governed  by
 PSD (subject to a "de minimus" rule).  Thus,  PSD review could  be  avoided
 if intrasource offsets were obtained and the source thereby would not
 experience a net emission increase.

     Preconstruction Monitoring - EPA's regulations require that
prospective sources monitor against possible violations of ambient
standards.  The Court's opinion states that these provisions do not go
far enough and that additional monitoring is required.
     Baseline Date - EPA's regulations established August 7, 1977, as
the baseline date for  PSD purposes.  Under the Court's ruling, base-
lines are to be pegged to the  first major source permit application
in an area subject to  PSD.
     The final opinion, which  the Court issued on December 14, reaffirmed
all but two of the fundamental holdings in the June summary opinion.
The two exceptions relate to geographic applicability and monitoring.
     Geographic Applicability.   In June, the Court held that the  PSD
permitting requirements apply  in general only to each major stationary
source or major modification that would locate in a "clean air area,"
that is, an area  designated  under Section 107 of the Act as attainment
or unclassifiable for  a criteria pollutant.  The Court added the
exception that  PSD also applies  to any major source or modification
that would affect a  clean  air  area in  another state, even  if the  source
or modification would  locate in  a designated nonattainment area.   In
its final opinion,  the Court concluded that  the exception  did  not
have sufficient support in  the Act and that  PSD permitting requirements
can apply only  to sources  "in" clean air  areas.   It  noted, though,
that EPA  has  authority to  require  each state  in  its  SIP  to prevent and
abate  adverse impacts  on  clean air areas,  including  those  in  other
     Monitoring.   In June,  the Court agreed  with  the  environmental
petitioners  that the PSD provisions  of the  Act  require preconstruction
monitoring  for each pollutant regulated  under the Act that the source
or modification would emit, including any noncriteria pollutant.   In
 the final opinion, the Court refined its  holding,  concluding that the
Act required for noncriteria pollutants  merely  an analysis of ambient
 air quality in the neighborhood of the proposed site and that the
 analysis could consist of monitoring, modeling,  or both.

     Three circuits of the U.S. Court of Appeals have ruled and split
on the procedural validity of EPA's March 3, 1978 promulgation of attain-
ment status designations under Section 107(d) of the Clean Air Act.
EPA promulgated the designations without first providing notice and
opportunity for public comment.  The Agency did, however, provide for
comment immediately after promulgation and made numerous revisions to
the original designations in response to comments received.  The
Third and Fifth Circuits found that these procedures violated the
requirements of Section 553 of the Administrative Procedure Act because
the Agency failed to show "good cause" for dispensing with prior
notice and comment and because the post promulgation procedures could
not adequately substitute for a chance to comment before EPA's decision
had been made.   [U.S. Steel Corp. v. EPA. 595 F.2d  207, clarified  at
598 F.2d 915  (5th Cir. 1979);  Sharon Steel  Corp. v.  EPA, 507  F.2d.377
 (3rd  Cir. 1979).]
      The Seventh Circuit, however, specifically chose to disagree
with  the two  earlier opinions, finding that  the Agency  had good cause
to promulgate  before taking comment  because  the Clean Air Act established
a strict  time  schedule for  the designation  process.   In addition,  the
designations  were  urgently  needed  to permit the states  to  begin revising
 their implementation plans.   The  Seventh  Circuit also noted  that
 Section  307(d)  of  the  Clean Air Act  limits  the  scope of judicial  review
 of certain  EPA actions  on  procedural grounds and found  that  the
 Section's  prerequisite  for invalidating  EPA actions had not  been  satis-
 fied  in  the case before  it.   [U.S.  Steel  Corp.  and  Youngstown Sheet &
 Tube  Co.  v.  EPA, 605  F.2d  283 (7th Cir.  1979),  cert, denied	
 U.S.     ,       (Jan.  21,  1980).]   The  Supreme Court recently denied a
 petition for certiorari  review of the  Seventh Circuit's decision,
 leaving  the conflict  among the circuits  unresolved.