PROGRESS IN THE PREVENTION AND CONTROL




       OF AIR POLLUTION IN 1982










  ANNUAL REPORT OF THE ADMINISTRATOR




OF THE ENVIRONMENTAL PROTECTION AGENCY




                TO THE




    CONGRESS OF THE UNITED STATES




          IN COMPLIANCE WITH




   SECTIONS 313, 202(b)(4), and 306




                  OF




        42 U.S.C. 7401 ET SEQ.



    THE CLEAN AIR ACT, AS AMENDED

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                                CONTENTS
PREFACE

   I.   INTRODUCTION  AND  SUMMARY
  II.   AIR  QUALITY  TRENDS,  MONITORING, AND MODELING
       A.   National  Air  Quality  and Emission Trends ..............  II-l
       B.   Ambient  Ai r Monitoring ................................  II-3
       C.   Air Quality Modeling ..................................  Il-b

 III.   AIR  POLLUTION RESEARCH  PROGRAMS
       A.   Oxidants ..............................................  III-l
       B.   Mobile Sources ........................................  III-3
       C.   Gases and Particles ...................................  III-4
       D.   Hazardous Air Pollutants ..............................  III-7
       E.   Acid Deposition .......................................  III-9

  IV.   DEVELOPMENT  OF NATIONAL AMBIENT AIR QUALITY  STANDARDS .....  IV-1

   V.   STATUS  OF AIR QUALITY MANAGEMENT PROGRAMS
       A.   State Implementation  Plans ............................  V-l
       B.   Processing of SIP Revisions ...........................  V-2
       C.   National  Air  Audit  System .............................  V-3
       D.   Emissions Trading .....................................  V-3
       E.   BACT/LAER and Air Quality Modeling Clearinghouses .....  V-4
       F.   New Source Review and Prevention of Significant
            Deterioration .......................................  V-b
       G.   Implementation Guidance  for Revised Parti cul ate
            Matter  Standards ....................................  V-6
       H.   Visibility Protection .................................  V-6
       I.   Interstate Air Pollution ..............................  V-7
       J.   Tall Stacks and  Other Dispersion Techniques ...........  V-7
       K.   Ai r Pollution Training ................................  V-8

  VI.   CONTROL OF STATIONARY SOURCE EMISSIONS
       A.   New Source Performance Standards (NSPS) ...............  Vl-1
       B.   National  Emissions  Standards for Hazardous Air
            Pollutants  (NESHAP) .................................  VI-1
       C.   Delegation of NSPS  and NESHAP .........................  \l\-2

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                                                                  Page

 VII.  STATIONARY SOURCE COMPLIANCE
       A.  Major Stationary Sources	  VII-1
       B.  1982 Deadline Enforcement Policy	  VII-2
       C.  Steel Industry Compliance Extension  Act	  VII-3
       0.  Major Court Actions	  VII-4
       E.  Compliance by Federal Facilities	  VII-b
       F.  List of Violating Facilities	  VII-5

VIII.  CONTROL OF MOBILE SOURCE EMISSIONS
       A.  Standard Setting	  VIII-2
       B.  Preproduction Compliance	  VIII-4
       C.  Inspecti on/Maintenance	  VIII-4
       0.  Alternative Compliance Measures	  VHI-b
       E.  Mobile Source Enforcement	  VIII-5

  IX.  LITIGATION	  IX-1

   X.  REFERENCES	  X-l
                                     11

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                                 PREFACE
     The Clean Air Act,  as  amended,  authorizes  a  national  program  of  air
pollution research, regulation,  and  enforcement  activities.   This  progran
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  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
on measures taken toward implementing the purpose and intent  of the Act.
This report covers the  period January 1  to December 31,  1982, 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 during
that time.  In addition, this report also includes  two  other  EP<\ reports
to Congress required under  the Clean Air Act,  as  amended:

     1.   Section 306 report on Federal procurement  and  violating facilities
(Chapter VII), and

     ^.   Section 202(b)(4)  report on measures  taken in  relation to motor
vehicle  emissions control (Chapter VIII).
                                   11

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                       I.   INTRODUCTION  AND  SUMMARY
A.   OVERVIEW
     This report describes the progress  that  the Environmental  Protection
Agency (EPA) has made in the prevention  and control  of  air  pollution
during 1982.  In many cases, this  progress  builds on the  experiences  of
the prior decade.  The following paragraphs summarize the contents  of  the
remaining chapters of this report,  especially insofar as  those  chapters
illuminate current understanding of air  quality  problems, controls, and
administrative apparatus.  Since it takes  approximately one year  to
assemble, analyze, and report air  quality  and emissions data,  the  latest
data available for this report is  for the year 1981.

B.   AIR QUALITY TRENDS, MONITORING,  AND MODELING

     With the exception of nitrogen dioxide,  data trends  over  the  last
several years show continuing improvements  across the country  in  ambient
air quality and total pollutant emissions.  For  example:

     J Between 1980 and 1981, average ambient total  suspended  particulate
       (TSP) levels decreased 6 percent  while TSP emissions from  man-made
       sources decreased approximately 2 percent.

     0 Average ambient levels of sulfur  dioxide  (S0£) decreased 27
       percent between 1975 and 1981  and total S02 emissions decreased
       12 percent.

     0 Average ambient carbon monoxide (CO)  levels decreased 26 percent
       between 1975 and 1981, and  the annual  rate of improvement  has
       been approximately 5 percent.   Total CO emitted during  this  time
       decreased 10 percent.

     0 Average ambient nitrogen dioxide  (NO?) levels increased 5  percent
       between 1975 and 1981, but  the levels  were declining between 198U
       and  1981.

     0 Between 1975 and 1981, average ambient ozone (03). levels decreased
       14 percent.  Total ^missions of volatile  organic compounds  (VOC's),
       which are ozone precursors, declined approximately 9 percent
       during this same period.

     0 The  composite maximum quarterly average of ambient lead levels
       decreased 57 percent between 1975 and  1981.  This is consistent
       with a reduction in lead consumption in gasoline of  67  percent in
       this period.

     EPA promulgated regulations in 1979 which required States to establish
and operate air monitoring networks and  to report the data  to  EPA.   Two
types  of permanent stations are provided for  in  the regulations:   State
and Local Air Monitoring Stations  (SLAMS)  and National  Air  Monitoring

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                                   1-2
Stations (NAMS).  The SLAMS, which were designed to meet  the  overall
monitoring requirements of State Implementation Plan activities,  were
required to meet all provisions of the regulations by January 1,  1983.
Through December 1982, there were 4,6b9 SLAMS monitors out of a  total
planned network of 4,959 monitors that met all  requirements of the  regula-
tions.  The NAMS, which are a subset of the SLAMS network, are designed
to provide a national monitoring network as required by Section  319 of
the Act.  Through December 1982, there were 1,323 NAMS monitors  out of  a
total planned network of 1,370 monitors that met all requirements of the
regu1ati ons .

     In 19dl, EPA entered into a cooperative agreement with the  American
Meteorological Society for peer scientific review of EPA's modeling
guidance.  During 1982, this program to evaluate several  categories of
models was continued.  The evaluation of rural  models was complpted and
the results reaffirmed that these models are reasonably reliable in
estimating the magnitude of the highest concentrations occurring at some
timp and at some place within a geographic area.  The evaluation of urban
models was initiated and will be completed in 1983.  Data bases  for
complex terrain and  long-range transport models were compiled in 1982 and
evaluation will be initiated in 1983.

C.   AIR POLLUTION RESEARCH PROGRAMS

     EPA's air pollution research program is divided into four major
categories:  Oxidants, Mobile Sources, Gases and Particles, and  Hazardous
Air Pollutants.  The  research in each of these areas is planned  by a
Research Committee composed of EPA research managers and representa-
tives from EPA's program offices.  Each Research Committee plans the full
range of research for the pollutants covered by that Committee.   The
research covers scientific assessments, monitoring systems and quality
assjrance, health effects, environmental engineering and technology, and
environmental processes and effects.

     In the oxidants  area, major efforts included  research directed
toward  assessing pulmonary  function changes in healM',y and potentially
sensitive populations following oxidant inhalation and research  aimed at
developing better models to extrapolate animal effects data to humans.
Research in the mobile sources area in  1982 emphasized the health effects
of diesel exhaust and carbon monoxide emissions.   Research was also
directed toward characterizing the gaseous and particle emissions from a
variety of motor vehicle categories.  Research in  the gases and particles
area in 1982  included the successful testing and  installation of 10-micro-
iHfit.'T samplers  for  particulate matter at 24 stations, assessment of the
us^ of  adipic acid  to enhance  limestone flue gas  desulfurization systems,
an.1  research  into the transport and fate of sulfur dioxide and particles
as well as their effects on agricultural crops, materials, and visibility.
Research on hazardous air pollutants  included the  preparation of health
assessments on  a number of  chemicals, the development of methods to
 identify mutagenic  compounds  in the ambient air,  quantification of the
Ipvels  of potentially hazardous air pollutants,and the determination of
    i r fate  in  the atmosphere.

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                                   1-3
     In addition, EPA conducted research on the sources,  effects,  and
possible mitigation strategies for controlling acid deposition.   During
1982, KPA worked to establish more clearly and verify the relationship
between emissions and deposition, determine the dose-response functions
and the extent of potential impacts, and assess the relative costs and
benefits of possible mitigation strategies.

0.   DEVELOPMENT OF NATIONAL AMBIENT AIR QUALITY STANDARDS

     The 1977 Clean Air Act Amendments require EPA to review and,  if
necessary,  revise the national ambient air quality standards (NAAQS) on a
five-year basis.  Reviews of all  seven NAAQS were in progress in 1932
including the anticipated revocation of the hydrocarbon (HC) NAAQS on the
basis that the HC NAAQS was no longer an appropriate guide for attaining
the ozone NAAQS and that more sophisticated techniques are now available
for designing ozone control strategies.

     EPA continued to review the  NAAQS for nitrogen oxides,  participate
matter, and sulfur oxides.  Proposal of revised or reaffirmed standards
for nitrogen oxides and particulate matter is expected in 1983 and for
sulfur oxides in 1984.  In addition, work on revising the criteria documents
for lead and ozone continued in 1982.

E.   STATUS OF AIR QUALITY MANAGEMENT PROGRAMS

     In late 1982, EPA prepared a Federal Register notice for publication
in narly 1983 that identified portions of 32 States and Territories that
EPA concluded would either not attain air quality standards  as required
or else would not comply with certain other portions of the  Act  pertaining
to nonattainment plans.

     Also in late 1982, EPA prepared a Federal  Register notice for publication
in early 1983 that pertained to those States that requested  an extension
of the December 31, 1982, attainment date for ozone or carbon monoxide or
both.  States that received an extension were required to submit implemen-
tation plans that demonstrated attainment of the relevant standards no
later than December 31, 1987.  In the same Federal Register  notic°, EPA
proposed disapproval  of plans for 17 of the 31  States that were  required
to submit revised implementation  plans.

     Through 1982, EPA reviewed and took final  action on  21  complete lead
State Implementation  Plans (SIP's) and 7 partial SIP's.  In  19H2,  the
Natural Resources Defense Council and others filed suit to require EPA to
promulgate lead SIP's for those States that had not yet submitted  them
and to approve or disapprove lead SIP's that had been submitted  but on
which EPA had not taken final action.

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                                   1-4
     One of EPA's most significant air quality management  initiatives
miring the year was the reduction of the SIP backlog.   In  1982,  changes
to the SIP review process were made to accelerate review of routine  and
noncontroversial SIP actions and reduce the duplication of effort  between
the States, the EPA Regional Offices, and EPA Headquarters.  Prior to  the
implementation of these changes, the inventory of SIP  submittals awaiting
Regional Office and Headquarters action was growing because EPA  was  only
.•ibl.j to process SIP actions at two-thirds the SIP submittal rate.  A
project was begun in late 1981 and continued into 1982 to substantially
reduce this inventory.  A reduction of 93 percent was  achieved by  July 1,
lc)32.  The continuing objective is to process SIP revisions as rapidly as
possible in order to avoid any future backlogs.

     EPA is actively working to delegate more air quality management
programs to State and local air pollution control agencies.  At  the  same
tinr>, EPA  is developing uniform audit processes to assure that national
air quality goals are met while promoting and enhancing a cooperative
working relationship between EPA and State and local agencies.  In 1982,
offorts in this area were directed toward developing comprehensive guidance
for implementation of a nationally consistent air audit system.

     Another major EPA activity in 1982 was the development and implementation
of various controlled emissions trading concepts such  as bubble trades
and banking of emissions  reductions.  EPA proposed or  approved a total of
33 bubble  applications which would save users more than $120 million over
the cost of conventional  air pollution control devices.  In addition,  three
metropolitan areas and one State developed and operated formal emissions
hanking systems.  These activities did not alter air quality requirements
but simply gave States and industry more flexibility in adopting control
strategies to meet the requirements.

     For several years, EPA has maintained clearinghouses  of technical
information.  One clearinghouse contains information on best available
control technology (BACT) and  lowest  achievable emission rates  (LAER).
This BACT/LAER clearinghouse  is a  central collection point  for  basic
BACT/LAER  information and is  designed to assist State and  local agencies
in the  technical aspects  of BACT/LAER determinations.   Participation  in
the clearinghouse by  State and  local  agencies  is voluntary.   In 1982,  EPA
revitalized the clearinghouse  to  increase user participation and to
increase the efficiency of  information  receipt and distribution.  In
addition,  EPA published a report  in May  1982  in which over  550  BACT/LAER
determinations were  summarized.   Another clearinghouse  contains information
on air  quality modeling.  This  clearinghouse  maintains  a historical
record  of  modeling decisions,  clarifies  EPA modeling guidance and promotes
an riwan-'ness  of EPA  modeling  policies.

     The Cnr-mical Manufacturers Association  (CMA)  and others  legally
challenged the  regulations  that EPA  promulgated  on August  7,  1980,  dealing
with prevention of significant  deterioration  (PSD)  and  nonattainment  area

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                                   1-5
new source review regulations.   In  attempting  to  resolve  the  CMA  concerns
and to explore certain regulatory  reform measures,  EPA  entered  into  a
litigation settlement with the  industrial  parties on  February 22,  1982,
in which EPA agreed to propose  certain regulatory changes.  One change
concerning vessel emissions was promulgated  June  2b,  1982.  Other
proposals are scheduled for 1983.

F.   CONTROL OF STATIONARY SOURCE  EMISSIONS

     In the area of stationary  source controls, work  progressed on the
development of emissions standards  for those major  source categories  not
yet regulated under new source  performance standards  (NSPS).  A total of
nine NSPS were promulgated in 1982,  and ten  were  proposed.  Thirteen
promulgations are planned for 1983.

     Regulations under Section  112  of the Act  governing coke  oven emissions
and benzene emissions from a number  of sources in the chemical  and petroloum
industries were in preparation  in  1982.

G.   STATIONARY SOURCE COMPLIANCE

     In the late 197Us, EPA embarked on a program to  bring sources which
had never installed control equipment into initial  compliance with
applicable air quality regulations.   Through the  combined efforts of
industry, States, and the Federal  government,  the goals of this program
had been largely achieved by the end of 1982,  when  over 94 percent of the
sources in the country were reported as achieving initial compliance  or
being in compliance with schedules  to install  controls.  Among  the sources
brought into compliance through this effort  were  some of  the  largest
contributors to the nation's air pollution problems,  with many  of them
having been in violation for several years.

     On September 2U, 1982, the Administrator  issued  a  policy on  enforcement
against sources in primary nonattainment areas that are not in  compliance
with the Clean Air Act by December 31, 1982.  The policy  recognizes that
courts have equitable jurisdiction  to fashion  relief  that allows  a source
to continue to operate in violation  beyond 1982 while taking  steps to
come into compliance expeditiously.   The policy sets  forth criteria to
determine^ the relief the Agency should seek  in each case, particularly
whether a compliance schedule is appropriate or whether the Agency should
seek closure of the source until it  can demonstrate compliance.

     One of the major emphases  of  the air enforcement program has been
the implementation of the Steel Industry Compliance Extension Act.  Under
this Act, Congress gave the EPA Administrator  authority to extend deadlines
for installation of certain air pollution control equipment for up to
three years if a company agreed to invest an amount at  least  equal to
the deferred costs of pollution control equipment  in  modernization to
improve the efficiency and productivity of its steel-making facilities.

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                                    1-6
 A total  of ten companies submitted applications  since  the  legislation was
 sijned on July 17, 1981.  In 1982, consent  decrees  implementing  the
 Administrator's favorable findings on  four  of  these applications were
 negotiated with the eligible companies and  were  at  various  stages  in the
 judicial  process.

 H.    CONTROL OF MOBILE SOURCE EMISSIONS

      In  the area of light-duty  vehicle emission  standards,  EPA has proposed
 to  postpone from 1985 to 1987 the  requirement  that  particulate emissions
 from passenger cars be limited  to  0.2  grams  per  mile due to concerns
 about the reliability of control technology.   In  1982, EPA  prepared
 rulemaking pertaining to high altitude standards  for 1984 light-duty
 vehicles  and 1984  and later  light-duty trucks, and  proposed high altitude
 standards for 1985 and later light-duty vehicles.   For heavy-duty vehicles,
 standards controlling heavy-duty evaporative hydrocarbon emissions for
 the  first time were prepared for promulgation  in  early 1983.  EPA also
 proposed  that exhaust emission  regulations  for model year 1984 heavy-duty
 engines  requiring  the use of catalyst  technology  be  revised to a level
 that  would not require catalysts,  due  to the large  costs involved and the
 financial  state of the industry.

      In  1982,  EPA  published  a rule revising the  standards applicable to
 the  lead  content of gasoline.  This action will  reduce airborne lead 34
 percent more by 1990  than under the previous rule.

      In order to assure  that  motor vehicles conform to applicable emissions
 standards,  EPA required  the  recall  of  1,169,352 vehicles in 1982.  In
 addition,  auto manufacturers  voluntarily recalled 28,049 vehicles to
 correct ^missions  problems.

      F_PA  is  responsible  for  implementing programs designed to deter
 tampering  with  vehicle emissions control systems or using leaded fuel  in
 vehicles  which  require unleaded fuel.   In 1982, EPA prepared an initiative
 to promote  State and  local anti-tampering and anti-fuel switching
 enforcement  programs.

 I.    LITIGATION

      The  U.S.  Courts  of Appeals decided ten cases under the Clean Air Act
 in 1982.   Nine  of  the  ten cases involved the rules for  setting up
 approving,  and  operating  SIP's.
     The most important case decided in 1982 was NRDC v. Gorsuch which
dealt with the definition of a major source for new source review purposes
•-PA regulations had allowed States to treat as a single source the
situation where a number of emitting units, each of which could be a
major source if viewed in isolation, are located at a common plant site.
The District of Columbia Circuit Court rejected this approach.

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                                   1-7
     Other major  decisions  in  1982  related to EPA's approval of State
relaxations of control  requirements  for  sulfur  dioxide.  Three decisions
in 1982 upheld EPA's  approval  of  such  revisions.

     Other decisions  in 1982 upheld  EPA's policies of  conditionally
approving SIP's and approving  or  disapproving portions of  SIP's instead
of the total  plan.

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            II.  AIR QUALITY TRENDS,  MONITORING,  AND  MODELING


     This chapter describes  current  trends  in  ambient air  quality  levels
(the concentration of a given pollutant  in  the atmosphere)  as well  as
trends in the actual emissions into  the  air of the  various  pollutants.
In addition, the chapter discusses  the topics  of  air  quality monitoring
and air quality modeling.  Data on  ambient  air quality levels and  emissions
are through 1981, the latest year for which EPA has  complete statistics.

A.   NATIONAL AIR QUALITY AND EMISSION TRENDS

     National ambient air pollution  levels  have dropped for each  of the
major pollutants between 1980 and 1981.   This  is  the  first  time that  a
short-term improvement has been observed for each of  the pollutants for
which there are national ambient air quality standards.  The ambient  air
quality data used in the following  pollutant assessments were obtained
from EPA's National  Aerometric Data  Bank.   The data were gathered
primarily from State and local air  pollution control  agencies through
their monitoring activities.

     All of the ambient air quality  trend  analyses, which  follow,  required
the monitoring sites used to contain at  least  5 of  the 7 years of  data in
the period 1975 to 1981.  In each of these  years, an  annual data  completeness
criterion had to be  met.  As a result of these criteria, only a subset of
existing sites are used for trends  purposes.

     Total Suspended Particulate (TSP) - The trend  in TSP  is complicated
by the fact that the glass fiber filters used  to  collect TSP data  have
been manufactured by different vendors.   Since 1977,  the glass fiber
filters used throughout the nation  at TSP  monitoring  sites have been
centrally procured by EPA for the State  and local agencies in order to
obtain uniformity in TSP collection  methods and save  money. The  filters
used in 1979, 1980,  and 1981 were found  to  record higher values than  the
filters used in 1978 and 1982 because of higher filter alkalinity,  which
is related to conversion of sulfur  dioxide  and nitrogen dioxide to
particulate -sulfates and nitrates.   This complication makes it difficult
to determine long-term changes in air quality  for the period  1975  to
1981.  However, the  short-term changes in  air  quality between  1980 and
1981 can be examined for the filters used  in both years were manufactured
by the same vendor.   The median rate of  decrease  among the 1289 sites
with data in 1980 and 1981 was 6 percent.   Most of  the decrease between
1980 and 1981 occurred in the Northeastern, North Central,  Rocky  Mountain,
and Northwestern States.  The largest decrease in ambient  TSP air  quality
levels was observed  in the Northwestern  States which  fell  13 percent
between 1980 and 1981.  Particulate  emissions  exhibited a  decrease  of
approximately 20 percent during the  1975 through  1981 time period  with a
decrease of approximately 2 percent  between 1980  and  1981.   It is  not
entirely clear why the estimated emissions  decrease is 2 percent  between
1980 and 1981, while the TSP air quality decrease is  6 percent.

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                                   II-2
     Sulfur Dioxide (S02) - Annual average ambient SC>2 air quality  levels
measured at 416 sites with continuous S02 monitors decreased 27  percent  from
1975 to 1981.  A similar decrease of 31 percent was observed in  the trend
in  the composite average of the second maximum 24-hour average.   Corre-
spondingly, there was a 12 percent drop in sulfur oxide emissions.   Even
though precise statistics on power plant siting trends are not  available,
the difference between emission trends and air quality trends is believed
to  ^irise because new electric utility power plants have been located in
rural areas while older plants located in urban areas have been  closed.
Most of the ambient monitors are located in urban areas with few in rural
areas.  Further, the residential and commercial areas, where the monitors
are located, have shown sulfur oxide emission decreases comparable  to S02
air quality improvement.  These decreases in sulfur oxide emissions in
the residential and commercial areas are believed to be due to  a combination
of energy conservation measures and the use of cleaner fuels.

     Carbon Monoxide (CO) - The second highest nonoverlapping 8-hour
average ambient CO air quality levels at 224 sites decreased at  a rate of
approximately 5 percent per year, with an overall reduction of  26 percent
between 1975 and 1981.  An even greater improvement was observed in the
estimated number of exceedances, which decreased 84 percent.  The improve-
ments generally reflect CO levels at traffic-saturated monitoring sites
in  the center city, which are believed to have experienced little or no
change in the number of vehicles in their vicinity.  A check of  selected
National Air Monitoring Stations shows no discernible change in  traffic
volume on the roads adjacent to the sites over the time period  1975-1981.
Consequently, the improvement in CO air quality levels reflects  the
reduction in emissions from new cars resulting from Federal  standards for
vehicle emissions.  CO emissions decreased 10 percent during the same
period.  Between 1980 and 1981, the median rate of improvement was  3
percent among the 163 sites with both 1980 and 1981 data.  If only  the
sites with second maximum values above the level  of the 8-hour CO standard
are considered, the median rate of improvement was 7 percent, so that the
higher sites continued to show improvement for the second maximum value
between 1980 and 1981.

     Nitrogen Dioxide (NO?) - Annual average ambient N02 air quality levels
measured at 445 sites increased from 1975 to 1979 and then began declining.
The air quality trend is very similar to the trend in nitrogen oxides
^missions.  The net long-term change between 1975 and 1981  is an increase
of 5 percent in N02 air quality levels and a 5 percent increase  in  emission
levels.  A decrease was observed between 1980 and 1981 in both  the  air
quality, as measured at 201 sites with data in both years,  and emissions
levels of 8 and 2 percent, respectively.

     Ozone (03) - The composite average of the ambient second highest
daily maximum 1-hour 03 air quality values recorded at 209 sites decreased
14 percent between 1975 and 1981.  An even greater improvement was  observed
in the estimated number of exceedances in the third quarter ozone season,
which decreased 42 percent.  Volatile organic compound (VOC) emissions

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                                   II-3
decreased 9 percent  during  the  same  time  period.  The  greater  improvement
observed in ozone air quality  levels appears  to  be  a combination of
reductions in VOC emissions and the  change  in the calibration  procedure
which took place between 1978  and  1979.   Between  1980  and  1981, the
majority of the 159  trend sites with ambient  air quality data  in both
years decreased with a median  rate of improvement of 8 percent.  This  is
consistent with the  7 percent  drop in VOC emissions during this period.

     Lead (Pb) - The composite maximum quarterly  average of ambient  lead
air quality levels,  recorded at 92 sites, decreased 57 percent between
197b and 1981.  The  sample of  92 sites is heavily weighted by  monitors  in
the States of Texas, Maryland,  and Pennsylvania.   Individual trends  in
each of these States show decreases.  The lead consumed in gasoline
dropped 67 percent,  primarily  because the use of unleaded  gasoline is
required in catalyst-equipped  cars.   Between  1980 and  1981, the maximum
quarterly average lead air quality levels decreased 18 percent among the
113 sites with data  in both years.  The decrease in lead consumption over
the same time period is 29 percent.

B.   AMBIENT AIR MONITORING

     EPA promulgated regulations in 1979 which required States to  establish
and operate ambient  air monitoring networks and to  report  the  data to
EPA.J7  Two types of permanent stations are provided  for  in the  regulations-
State and Local Air Monitoring Stations  (SLAMS) and National Air Monitoring
Stations  (NAMS).

     The SLAMS, which were designed to meet the overall monitoring
requirements of State Implementation Plan activities,  were rpquired  to
meet all provisions of the regulations by January 1,  1983.  The  NAMS,  a
subset of the SLAMS, were to provide a national  monitoring network as
required by Section 319 of the Clean Air Act.  The  NAMS deadline  for
meeting all provisions of the monitoring regulations  was  January  1,  1981.

     Tables II-l and II-2 summarize the  status of the SLAMS and  NAMS
network through December 1982.  Table II-3 lists,  by  pollutant,  the  number
of SLAMS as well as NAMS.

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                                   II-4
              Table II-1   SLAMS Status Through  December  1982
Network

Total planned network*
Less:  Monitors not operational

Monitors operational
Less:  Monitors using uncertified or
       unacceptable equipment

       Monitors not having a fully approved quality
       assurance plan

       Monitors improperly located

Monitors in operation meeting all requirements
  of the regulations

Mncludes NAMS monitors
                                                       Number  of
                                                       Monitors
   4959
    127

   4832
      0
     85


     88

   4659
            Percent  of
            Total Network
     100.U
       2.6

      97.4
        0
       1.7


       1.7

      94.0
              Table II-2  NAMS Status Through December 1982
Total planned network
Less:  Monitors not operational

Monitors operational
Less:  Monitors using uncertified or
       unacceptable equipment

       Monitors not having a fully approved quality
       assurance plan

       Monitors improperly located

Monitors in operation meeting  all requirements
  of  the regulations
Number of
Monitors

   1370
     16

   1354
      0
     31


      0

   1323
Percent of
 Network

   100.0
     1.2

    98.8
       0
     2.2


       0

    96.6

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                                   II-5
     Table II-l  shows a total  of 4959  planned  SLAMS  monitors  of which
4832 or approximately 97 percent were  in operation.   This  number  is  about
the maximum expected since monitoring  station  shutdowns  routinely  occur
because of lost leases, urban  renewal  projects,  and  changing  ambient air
monitoring priorities.  The table also shows that 4659 or  94  percent of
the total planned network are  meeting  all requirements of  the regulations.
The 173 noncomplying operating monitors should meet  the requirements with
some small changes in monitor  locations and the submittal  of  approvable
standard operating procedures  for three local  agencies.

     Table II-2, shows that of the 1370 planned NAMS, 1354 or approximately
99 percent were in operation through December 1982.   Of the operating
monitors, 1323 were meeting all requirements of the regulations.   The
remaining monitors, which are mostly lead monitors,  should be in  com-
pliance by April 1983.  Lead monitors were  required to meet all monitoring
regulations by July  1,  1982.
         Tab1e  II-3  National Summary of Air Monitoring Station^
Pollutant
TSP
S02
N02
CO
03
Pb
TOTAL
SLAMS
(including NAMS)
2637
603
290
454
616
359
4959
NAMS
649
231
56
113
214
107
1370
 C.   AIR QUALITY MODELING

      An air quality model is a set of mathematical equations that describe
 the atmospheric transport, dispersion, and transformation of pollutant
 emissions.  By means of these equations, a model can be used to calculate
 or predict the air quality impacts of emissions from proposed new sources,
 emissions from existing sources, or changes in emissions from either of
 these source categories.  These models are of great utility because they
 provide a means whereby the effectiveness of air pollution controls can be
 estimated before action is taken.

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                                   II-6
     During 1982, the major program to evaluate several  categories  of
models was continued.  This program was developed in response to
recommendations of the American Meteorological  Society (AMS)  under  its
cooperative agreement with EPA.  The evaluation and scientific review of
rural models was completed.  The evaluation of  urban models was initiated
and will be completed in 1983.  Data bases for  complex terrain and  long-
range transport models were compiled and evaluations will  be  initiated  in
1983.

     The evaluation of rural models reaffirmed  that models are reasonably
reliable in estimating the magnitude of the highest concentrations
occurring some time, somewhere within an area.   For example,  errors in
highest estimated concentrations of _+ 10 to 40  percent are found  to be
typical, i.e., certainly well within the often-quoted factor-of-two
accuracy that has long been recognized for these models.  However,
estimates of concentrations that occur at a specific time and site  are
often poorly correlated with actually observed  concentrations and are
much less reliable.  Poor correlations are probably due to uncertainties
in our knowledge of the precise plume location  for any given  time period.

     Work also continued on the explicit consideration of model uncertainty
in decision-making.  Under the AMS/EPA cooperative agreement, the AMS
conducted a workshop on "Quantifying and Communicating Uncertainty  in
Regulatory Air Quality Modeling."  A major result of the workshop was the
proposal of a new technique to directly calculate uncertainty. This
proposal is being studied and tested both in-house and under  contract.
In addition, efforts are being made to further  test and expand the  expected
exceedances (ExEx) methodology, which allows variability in fuel  quality
to be considered.  Inclusion of multi-year, variable meteorological
conditions was successfully implemented to improve the representativeness
of the method.  During 1983, an effort will be  made to integrate  calculation
of model uncertainty directly with the ExEx methodology.  As  a result,
decision-makers could have a complete, quantitative assessment of the
effects of variable emissions, meteorological conditions, and model
performance on effective and reliable control regulations for fuel  burning
sources.

     Efforts to improve guidance on air quality models and ensure
consistency in their use have also continued.  Model clearinghouse
activities were maintained to ensure that use of nonguideline techniques
does not lead to inconsistent regulatory decisions.  A workshop was held
with modeling contacts in EPA's ten Regional Offices to improve communi-
cations on the use of models and to resolve problems common to several
Regions.  Guidance on such problems was expanded and circulated to  these
offices.  Finally, work to revise and update the "Guideline on Air  Quality
Models" was initiated.27  During 1983, an effort will be made to  incorporate
the  results of the model evaluation program, uncertainty analyses,  and
ongoing efforts to ensure consistency into improved modeling guidance
for  regulatory applications.

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                   III.   AIR  POLLUTION RESEARCH PROGRAMS


     EPA's Office of Research and  Development  (ORD)  provided extensive
technical support to EPA's  air pollution  control  activities  in  1982
ORD's air research program  is divided  into  four major  categories:  Oxidants,
Mobile Sources, Gases and Particles,  and  Hazardous  Air Pollutants.   The
research in each of these areas is planned  by  a Research  Committee composed
of ORD managers and representatives from  EPA's program offices.  Each
Research Committee plans the full  range of  research for the  pollutants
covered by that Committee.   The research  covers  the areas of scientific
assessments, monitoring systems and quality assurance, health  effects,
environmental engineering and technology, and environmental  processes
and  effects.  The discussion of 1982 research accomplishments  is organized
along these  lines.  In addition to the discussions of the four major air
research programs, a discussion of ORD's  research program on acid deposition
is  included.
      The  oxidants  research program focuses on air pollution problems
 associated with  ozone  (03), nitrogen dioxide  (N02), and volatile orgc
 compounds (VOCs).

      Scientific  Assessments

      National  workshops  were  convened  to  collect  data  and  discuss  scientific
 issues necessary to update the  criteria document  for ozone and  other  photo-
 chemical  oxidants.  The  final  review draft of the document is  scheduled  to
 be completed in  1984 and published  in  1985.

      Monitoring

      The first operational,  standard ultraviolet  spectrophotometer was
 delivered to EPA by the  National  Bureau  of  Standards.   Additional  units
 are to be used as standards  for the calibration of field  units.  An interim
 report was published describing the atmospheric ozone  concentration in
 National Forests  (National  Air Pollution Background Network).   Work continued
 on the development of a  cryogenic system for trapping  and measuring non-
 methane  hydrocarbons.  A portable auditing system was  developed and is  in
 use  for  the calibration  and auditing of existing field monitors of ozone
 and  nitrogen  oxides (National Audit Program).  Final data reports were
 published for urban/point source plumes in the Midwestern U.S. and North-
 eastern  U.S.  A final report was prepared covering a monitoring project
 for  the  South Coast Air Basin/Southeast Desert Oxidant Transport Study and
 the  operational phase of the San Diego Oxidant Transport  Study was completed.

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                                   III-2
     Health Effects

     The oxidants health effects research program focuses  primarily  on
providing human and animal dose-response data to re-evaluate  the  criteria
documents for 03 and N02-  Emphasis was placed on assessing pulmonary
function changes in healthy and potentially sensitive populations following
oxidant inhalation.  Accomplishments during 1982 included  clinical  studies
which describe alterations in blood lipid levels following chronic ozone
exposure.  An increase in the level of circulating blood lipids  correlates
with increased risk of arteriosclerosis.

     The program also focused on developing better models  to  extrapolate
animal effects data to humans.  Major accomplishments in this area included
a mathematical model which predicts 03 and N02 transport patterns in human
lungs, using  rodent dose-response data, and in in vivo comparisons between
human and animal lung tissue and sensitivity to damage from oxidants.

     Environmental Engineering  and Technology

     Research on VOC emission reduction technologies focused on the evalua-
tion of technologies such as carbon adsorption, thermal oxidation, catalytic
oxidation, capture systems, and flares.  A pilot-scale testing facility for
flares was constructed and a testing  program initiated to determine industrial
flare emissions  for a variety of operating conditions and waste gases.  Pre-
liminary  results indicate greater  than  98  percent combustion efficiency
under most test  conditions.  Under  the  catalytic  oxidation project, a
cooperative  field  test  program  was  developed with several industries and
full-scale testing was  initiated.   A  joint demonstration was conducted
with  a  major truck manufacturing company to  evaluate a microprocessor
control  device  for VOC  control  in  metal  coating  operations.  A compilation
of  VOC  emission  factor  data  for the ferrous  metallurgical industries was
completed.

      Research on nitrogen oxides (NOX)  emission  reduction technologies
 resulted  in  the  following:   (1) Scale-up and field  evaluation of  the heavy
 oil/low NOX  burner was  initiated and  NOX  emission  Deductions of 75-80
 percent were achieved.   (2)  Bench-scale studies  of  in-furnace NOX reduction
were  completed and a  contract  initiated to assess its  applicability to
 domestically designed boilers  firing United  States  coals.  Bench-scale
 reductions as high as 80 percent were attained.   (3)  Performance testing
 of  combustion modifications  that are applicable to  spreader  stoker  boilers
 was completed for a 1UO.OOO  Ib steam/hr unit resulting in a  55-60 percent
 reduction in NOX emissions.   (4) Combustion  modification  technologies
 (e.g., reduced primary air,  modification of  fuel injection  velocities)
 were evaluated on gas- and oil-fired refinery process  heaters  and on  a
 coal-fired kiln.  On the process heaters,  NOX emissions were reduced  by
 70 percent with gas firing and by 53 percent with oil  firing.   Cement
 kiln experiments identified combustion modifications capable of 40 percent
 NOX reduction.  (5) Experiments to identify how the chemical/physical

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                                   III-3
properties of coal  are related  to  NOX  emissions were conducted to predict
NOX emissions for specific  fuels.   (6)  An  investigation  of oxygen trim
systems applied to pulverized coal-fired utility  boilers was  conducted to
determine the extent to which other boilers  could adopt  this  mode of opera-
tions to achieve NOX reduction.  (7) A pilot evaluation  of a  one million
Btu per hour wall-fired furnace with simulated boiler  conditions was con-
ducted to test S02 removal  by the  limestone  injection  multi-stage burner
(LIMB) process.  Initial results indicate  that on a retrofit  basis  removals
of bO-60 percent are possible for  NOX  and  sulfur  oxides  (SOX),  and  on  a
new boiler design basis removals of 60-80  percent are  possible  for  SOX
and 50-70 percent for NOX.

     Environmental Processes and Effects

     The primary focus of the  research in  this area in 1982  was the development
and testing of air quality models  for  use  by the States  in the  development
of State Implementation Plans  for ozone abatement strategies.  Under this
program, several urban scalp photochemical air quality models for  ozone
were successfully tested and validated against the St. Louis area  compre-
hensive air quality and emission data  base.l/  In addition,  a regional scale
model  for ozone was formulated, tested, and'upgraded utilizing portions of
the Northeast Regional Oxidant Study (NEROS) air data base.   The regional
model, when fully developed  and validated, will  be used by State and Regional
offices to calculate  the extent of ozone transport from one area to another.
Although the  regional model  was formulated to predict regional  ozone levels,
it was also designed  for use in modeling regional scale transport and
deposition of  fine  inhalable particles and sulfates.

      In the  area  of secondary  (welfare) effects,  research focused on
assessing the  impacts of ozone on  major agronomic crops.  A pilot assessment,
involving ozone  dose-response  functions for  soybeans, was conducted to
test  the  feasibility  of using  crop yield simulation models for estimating
the  impacts  of  ozone  on crop production.  Regional economic  assessments
for  crops grown  in  the  Midwest and California are  being completed.  These
will  form the basis for national  assessments  of  the economic impacts  of
ozone  on  the  agricultural  industry in  the U.S.

B.    MOBILE  SOURCES

      The  Mobile Sources research  program  is designed  to determine  the
 health effects of motor vehicle emissions with emphasis on  diesel  exhaust
 and carbon  monoxide (CO).   The program is  also  designed to  develop  methods
 for measuring unregulated  pollutants  in automotive exhaust  and  for  measuring
 or estimating actual  population exposure  to motor vehicle emissions.

      Scientific Assessments

      A report using recent Agency research  data  was  prepared comparing  the
 carcinogenic potency of diesel particulates to  other  polycyclic mixtures
 that are known to be carcinogenic. This  report  was  prepared to assist  in
 setting standards for particulate diesel  emissions.

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                                   III-4
     Monitoring

     A computerized solid state data logger for use in  personal  monitoring
instruments was developed, and 75 miniaturized CO personal  air quality
monitors were constructed incorporating an electrochemical  sensing  cell and
the data logger.  A field study design was completed to conduct  a full-scale
study of exposure to CO in an urban area.  The field study  will  use the new
personal monitors to measure the CO exposures of 1,000  persons in Washington,
DC., and bOU person-days in Denver, Colorado.  Data collection activities
were initiated in the fall of 1982.  A computer model was  developed to
simulate the daily activities of the urban population and  their  CO  exposures
and resulting carboxyhemoglobin levels.

     Health Effects
     The carcinogenic potency of particle bound organics from diesel  exhaust
was evaluated utilizing intratracheal instillation in hamsters and dermal
exposure in mice.  In addition, the in vivo distribution, metabolism,  and
carcinogenic potential of nitroaromatics were studied since these agents
appear to account  for a significant portion of the mutagenic activity
observed in diesel particle bound organics.  The biological activity  of
fractions of unregulated organic emissions (gaseous and particle components)
rpsulting from combustion of a variety of fuels was evaluated using in vivo
bioassays to detect  gene mutations, DNA damage, chromosomal effects,  oncogenic
transformations, and cellular toxicity.  Animal studies were conducted to
ascertain the effects of chronic CO exposure on cardiovascular and central
nervous system development  in fetuses and newborn offsprings.

     Environmental Processes and Effects

     Research focused on characterizing the gaseous and particle emissions
from a variety of  motor  vehicle categories.  In particular, chassis dynamom-
eter experimental  test procedures were developed for use by researchers to
characterize emissions under simulated in-use driving conditions.  Data
resulting from the characterizations will improve the motor vehicle air
emissions data bases.  Also, emissions from gasoline fueled passenger cars
were characterized for volatile organic compounds, including aldehydes,
using  these test  procedures.  A major study on unregulated pollutants, gas
phase  toxic pollutants,  and catalyst  synthesized gases was completed.2]
An  emissions characterization program was initiated to study gaseous and
participate emissions  from  in-use heavy-duty and gasoline  powered trucks
and buses.

C.   GASES AND PARTICLES

     The  Gases and Particles  research program  focuses on air pollution
problems  associated  with  particulate  matter, sulfur dioxide  (SO^), and lead,
and the  interactive  effects of  combining  S02 and particles with  other
pollutants such  as 03 and  N02.

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                                   III-5
     Scientific Assessments

     The air quality  criteria  document  for  sulfur  oxides  and particulate
matter was completed  in  1982.   Copies of  the  final document are scheduled to
be published at the time the standard is  proposed  in  accordance with
Section 109 of the Act.

     National workshops  were convened to  collect  data and discuss  scientific
issues pertinent to the  rewrite of the  air  quality criteria document  for
lead.  The final draft is scheduled to  be completed  in 1984.

     Monitoring

     In 1982, the new 10-micrometer (urn)  samplers  for particulate  matter
were tested successfully and installed  in 24  stations in  the  Inhalable
Particulate Network (IPN).  The results from  these stations will  be
compared to the results  from the 15 urn  samplers in 76 other  IPN stations
to help assess the impact of revised standards for particulate matter.

     A study was carried out in Philadelphia  to estimate  the  influence of
roadway traffic on atmospheric levels  of particles and various elements,
especially  lead.  Another study tested  the ability of a new  particulate
matter sampler, the wide-Range Aerosol  Classifier, to size-classify particles
in three different types of urban atmospheres and in a nonindustrial  comparison
 area,

     Quality assurance activities for the IPN, the NAMS/SLAMS Network,
 and  the trace metals network continued.  A second prototype personal monitor
 for  particles was built and received further testing.

     Health Effects

     Dose-response studies in mice showed that pulmonary infection, caused
 or exacerbated  by particle inhalation, may result in lung fibrosis.  A study
 of the  acute effects of volcanic ash inhalation showed only very slight
 effects on animal pulmonary physiology, structure, biochemistry, and host-
 defense mechanisms.  Animals with emphysema were  found to be  less  susceptible
 than healthy animals to pulmonary structure changes  following subchronic
 exposure  to  ammonium sulfate and ammonium nitrate.

     An important advance was made in the area of extrapolation modeling
 from animals to humans.  A model was developed which used lung  branchings
 to  determine particle  deposition in the lungs of  different  animal  species.3/

     Environmental Engineering  and Technology

      In the  S02 area,  a full scale assessment of  the use of adipic acid to
 enhance limestone flue gas desulfurization  (FGD)  systems confirmed that
 SOX  removal  exceeding  95 percent can be achieved  and that the use  of
 this technology should enable  both new  and  existing  utility boilers to

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                                   III-6
more easily and cheaply comply with SOX emission regulations.   The  cost-
effective advantage of combined SOX and particle control  using  dry-scrubbing
with fabric filter baghouses was assessed and appears to  be superior  to
conventional FGO systems for certain low and medium sulfur content  coals.

     Initial tests of the limestone injection multi-stage burner (LIMB)
pror.pss on a tangentially-fired pilot furnace were conducted.   Results
indicate that LIMB may be suitable for use in these furnaces.

     In the particulate area, pilot-scale testing of two  types  of two-stage
electrostatic precipitators was initiated to determine their potential  for
commercial applications for low sulfur coal fly ash collection.  Projections
suggest that particle collection costs could be reduced by up to 5U percent.
Pilot-scale testing of an electrostatically enhanced fabric filter (ESFF)
baghouse using reverse air cleaning (typical for utility  power plants)
showed that a substantial reduction of pressure drop can  be achieved  (up
to 50 percent).  ESFF continued to show similar improvements for the pulse-
jet mode, the mode most commonly used for industrial boilers.   In addition,
field evaluations were completed for magnetic high-gradient filtration  of
magnetically susceptible dusts and for road carpets for reducing fugitive
emissions.  Field studies were also undertaken in the iron and steel  area
to establish the long-term effectiveness of sprayed-on additives for fugitive
dust control on unpaved roads.

     Source characterizations and development of size-specific emission
factors for major sources of particulate matter emissions continued.
Results from the source characterizations are being combined with existing
data to develop size-specific emission factors for sources including paved,
unpaved,  and industrial roads, iron and steel, nonferrous, cement, lime,
asphaltic concrete,  ferroalloy, kraft pulp mills, iron foundries, and
combustion  processes.  These emission factors are needed by the States  for
revision  of State Implementation Plans.

     The  Seventh FGD  Symposium, co-sponsored with the Electric Power
Research  Institute,  the Fourth Symposium on the Transfer and Utilization
of Particle Control  Technology, and the Fourth Sympcsium on Iron and Steel
Pollution Abatement  Technology, co-sponsored with the American Iron and
Steel  Institutes, were conducted.

     Environmental  Processes and Effects

     Research  in the gases  and particles area  focused on the transport and
fate of SC>2 and particles as well  as  their  effects on agricultural crops,
materials,  and  visibility.

     In the air modeling  research  area, work was  conducted on  the development
of  improved air quality dispersion  models  for  use in complex terrain.  The
research  concentrated on  plume  impaction studies  in  elevated terrain.  The
results of  the  Small  Hill  Impaction  Study  #1 were published in the fall of

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                                   III-7
1982 and will  be used to evaluate  the  complex  terrain  models.£/  A study of
plume impaction on a  two-dimensional  ridge was  conducted  in the fall of  1982.
The Green River Ambient  Model  Assessment  Study  Group completed development
of a mountain  valley  air quality model.

     An interim urban and mesoscale model that  addresses  the  1-hour  and  24-
hour average of S02 and  particles  needed  for SIP  revisions was developed.
Research was also conducted on regional  scale  model  development in order to
understand better the meteorological  conditions that lead to  prolonged
elevated pollutant episodes.

     Under the Source Apportionment Methods  (SAM) program,  the  second
receptor modeling workshop was held in the  spring of  1982 to  determine the
reliability of currently available source apportionment methods.   Two
major field studies were completed.  The  first was conducted  in Philadelphia
to provide source and ambient data for developing and  evaluating  urban
particulate dispersion and receptor models,  and the second  was  conducted
in Denver to determine the sources of visibility-reducing particles.

     In the area of secondary (welfare) effects research, field and  green-
house studies were conducted to assess the  interactive effects  of S02, 03,
and N02 on agricultural  crop growth and yield. This research was based
on preliminary information that indicated that these pollutants,  acting  in
combination, may affect crops differently than if crops were  exposed to
the pollutants individually.  Also, research conducted on the quantification
of pollutant damage to materials in economic terms resulted in  several
reports and journal articles on an economic benefits model  for materials
and on the soiling of material surfaces under  various  environmental  conditions,

D.   HAZARDOUS AIR POLLUTANTS

     The pollutants covered by the hazardous air  pollutant  (HAP)  research
program are those air pollutants that are either  currently  regulated or  are
potential candidates for being regulated under Section 112  or Section lll(d)
of the Clean Ai r Act.

     Scientific Assessments

     Draft comprehensive health assessment documents  for the following  air
pollutants underwent initial  review by the Science Advisory Board (SAB):
methylene chloride, methyl  chloroform, fluorocarbon 113, toluene, perchloro-
ethylene, carbon tetrachloride, and acrylonitrile.  A  draft report  on the
carcinogenic effects associated with  coke oven emissions also underwent SAB
review  in 1982.

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                                   III-8
     Comprehensive health assessments were initiated for  eight  chemicals:
ethylene oxide, ethylene dichloride, chloroform,  epichlorohydrin,  chromium,
manganese, nickel, and vinylidene chloride.   Updated assessments were
started for asbestos, vinyl chloride, and cadmium.

     Monitori ng

     As a result of stability tests on quality assurance  materials,  the
organic audit repository was expanded to 40 different compounds.   Thirteen
audits were completed on source test contractors.  A benzene Standard  Ref-
erence Material (SRM) was issued.  A report on quality assurance  guidelines
for ambient air programs of national scope was peer reviewed and was
distributed.5/  During 1982, validated data on benzo-a-pyrene and  trace
elements including arsenic, chromium, and cobalt  were obtained.  This  is
an annual update obtained from analysis of glass  fiber filters  from State
and local control agencies.

     Health Effects

     Short-term bioassays were developed and used to identify mutagenic
fractions in ambient air.  Similar assays were used to determine  that
innalable particulate emissions  from wood stoves  in the home are  20-6UU
times greater than home heating  oil inhalable particulate emissions.  J_n_
vitro studies of  the non-carcinogenic effects of toluene at higher than
ambient concentration levels showed both immunological effects (increased
susceptibility to streptococcus  infection) and neurobehavioral  effects
(increased sleep  time) in animals.

     Environmental Engineering and Technology

     In  1982, emphasis was placed on collecting  emission data and evaluating
emission  reduction technologies  to  assist the review and development of
National  Emission Standards  for  Hazardous Air Pollutants (NESHAPS).  An
analysis  of  potentially  hazardous organic emissions  from ferroalloy produc-
tion was  completed.  These  results  showed some furnaces generate significant
quantities of  these  pollutants.  However, properly  operated control devices
can significantly reduce discharge  of these materials into the atmosphere.
Research  continued on generic VOC emissions reduction technologies which
may have  application to  the  control  of  hazardous air pollutants as well.

     Environmental Processes and Effects

     Emphasis  was placed on  quantifying the levels  of potential hazardous
air pollutants  and determining  their fate  in  the atmosphere.   In  particular,
a  data  base  was  compiled summarizing the  current state of knowledge of
volatile  organic  compounds  (VOC's)  in  the  ambient  air and photolytic decompo-
sition  rates were determined for a  selected number.   Also,  research was
conducted on some HAP's  having  long atmospheric  residence times to  determine
their  rates  of physical  loss to the atmosphere through dry  and wet  deposition

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                                   III-9
and decomposition.   Preliminary  ambient  air  characterization  studies were
concluded in ten urban areas  on  a  selected  number  of  potentially  hazardous
trace VOC's as an initial  step towards  mapping  their  natural,  spatial, and
temporal variabilities.

E.   ACID DEPOSITION

     Research on the sources, effects,  and  possible mitigation strategies  for
controlling acid deposition continues to be  a  high priority  for EPA.   During
1982, the Agency worked closely  with the other members of the Interagency
Task Force on Acid Precipitation to more clearly  establish and verify  the
relationship between emissions and deposition,  determine the dose-response
functions and the extent of potential impacts,  and assess the relative
costs and benefits of possible mitigation strategies.  Research on acid
deposition is organized by the following Task  Force sub-groups: Natural
Sources, Man-made Sources, Atmospheric Processes,  Deposition Monitoring,
Aquatic Effects, Terrestrial  Effects, Effects  on  Materials and Cultural
Resources, and Assessments and Policy Analysis.  EPA contributed significantly
to the following major accomplishments achieved by the Task Force in  1982
as described below.

     Natural Sources

   Techniques for reliable field measurement of sulfur and nitrogen emissions
from natural sources were developed and tested.  In addition, preliminary
measurements of natural sulfur compounds in the ocean were obtained that
suggest emissions from marine sources may contribute significantly to the
production of acid precursors.

     Man-made Sources

     A study on emission sources was completed that suggested  that local
petroleum combustion, as well as coal combustion, could contribute signifi-
cantly to the production of acid precursors.  Also, EPA continued to develop
models to predict the cost and emissions changes from utilities and industries
based on  various possible control strategies.

     Atmospheric Processes

     In  1982, the first comprehensive isopleth maps describing the distribution
of major  chemical species over North America were produced.  The planning
and  initial  testing  for a major field experiment to be performed in 1983
that will track the  movement  of tracer gases released in  the Midwest and
Canada  over  hundreds  of miles was completed.   In addition, initial obser-
vations  that confirm the importance  of clouds  in transforming  sulfur dioxide
to acidic  sulfates were obtained.

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                                   111-10
     Deposition Monitoring

     Three research sites to test improved methods of monitoring wet  and
dry deposition were established, precipitation chemistry data  were analyzed,
and acid deposition maps for North America were produced.  In  addition,
field measurements of dry deposition obtained from different prototype
methods were compared and continued efforts to develop reliable techniques
for routine measurement of dry deposition were compared.

     Aqjjjrtic Effects

     A preliminary, qualitative map of the nation indicating regions  where
surface waters are likely to be most sensitive to acidification was produced,
and a preliminary  survey of drinking water in the Northeast was completed.
In addition, long-term monitoring of aquatic resources  (chemistry and
biota) in key  sensitive  regions was initiated, and existing information on
mi'
studii
ilULd^  III Key  otriioiLivc  icyivito YIOJ  iiii^iuw^-^, unvi %_ ^ i .* « • • • 3  . -. • ~ • •• •— .-.. —
litigation strategies  (e.g., liming) was evaluated, and field and laboratory
,tudies to examine their effectiveness and limitations were  initiated.
     Terrestrial Effects

     Extensive  long-term  studies were  initiated to determine whether acid
 deposition  has  caused  changes  in the rate of growth and species composition
 in  forests.   In addition,  a  study was  conducted to evaluate whether acid
 deposition  predisposes pine  seedlings  to stress factors.  Results indicated
 that  there  was  not  an  increase in susceptibility  to insect or  disease
 attack,  and in  some seedlings, there was an  increased  resistance to disease.

      Agricultural  experiments  using  simulated  acid deposition  also were
 conducted.   These  experiments  did not  indicate injury  to  potato or to
 forage plants.   Experiments  involving  corn  and soybeans gave mixed results with
 yields decreasing  under some circumstances  but increasing under others.  A
 study  of soils  in  the  Southeast,  mid-Atlantic  coast,  and  Northeast was
 conducted which showed, variable responses  to acid deposition  relative to
 mobilization of toxic  metals and leaching  of nutrients.

      Studies were  conducted which indicate that southeastern watersheds  are
 accumulating sulfur.  The importance of this change  in sulfur  concentration
 on the chemical and biological characteristics of the surface  waters  is  not
 clearly understood.   Finally, several  studies were conducted  on  forest
 canopies that  indicated the situation is complex since they  can  either
 decrease or increase  the acidity of rain traveling through  them.

       Effects on Materials and Cultural Resources

       Research  to determine  possible acid deposition related damage to
 historical monuments  was  initiated anci field  sites for testing materials
 and estimating the  relationship of deterioration rates to acid deposition

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                                   III-ll
were established.   Information  on  the past  deterioration  of  materials was
analyzed and documentation of possible protective treatments for  materials
was begun.

     Assessments and Policy Analysis

     A first draft of a document providing a state-of-the-art report of
what is known about acid deposition and its affects was prepared  for scientific
review.  Research to develop methodologies tor conducting integrated assess-
ments of the significance of various scientific and economic information
was initiated.  Methods for estimating the uncertainty in models  and the
implications for formulating management strategies were developed and
tested.

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         IV.   DEVELOPMENT  OF  NATIONAL  AMBIENT AIR QUALITY  STANDARDS


     The 1977 Clean Air Act Amendments required  EPA  to  review  and  revise,
it" necessary, all  of the national  ambient  air quality standards  (NAAQS).
Reviews of all seven NAAQS were  in progress  during  1982.

     In 1982, EPA  developed material  to support  revocation of  the  existing
NAAQS for hydrocarbons (which was  originally established  as  a  guide  for
attaining the NAAQS for photochemical  oxidants)  on  the  basis that  it  was  no
longer appropriate and because there  are now much more  sophisticated  techniques
available for designing control  strategies for photochemical oxidants
(ozone).  Promulgation of  this action  was  scheduled  for 1983.

     During 1982,  work continued on finalizing EPA's proposal  of August  18,
1981), to revise the NAAQS  for carbon  monoxide.]_/ Additional review  and
comment from the public and by the Clean Air Scientific Advisory Committee
(CASAC) was conducted in 1982 on several new issues  that  were  raised since
proposal,2J

     The revision  to the criteria  document for nitrogen oxides (NOX)  was
completed in 1982._3_/  The NOX staff paper,4/ which  interprets  the  critical
studies in the criteria document for  use in the  standard-setting process  and
provides a range of values which the  staff feels is  most  appropriate for
selecting the level of the air quality standard, was reviewed  and  concurred  on
by CASAC.  Proposal of standards is expected in  1983.

     CASAC concurrence on the scientific accuracy  and completeness of the
staff paper for particulate  matter was received  in  January 1982.5/  Work  on
the regulatory support documents was  nearly completed and a proposal  is
expected in 1984.

     In 1982, CASAC conducted two public reviews of the staff  paper for
sulfur oxides (SOX) and their recommendations  to the Administrator are
expected in 1983.   A proposal to reaffirm or revise the SOX standards is
expected in 1984.

     Work on  revising the criteria documents for ozone  and lead was initiated
in late 1981, with initial drafts of  chapters  for the documents completed in
1982.  Public workshops on the draft  criteria  document  chapters were held
in late 1982.  Work on the regulatory support  documents was also initiated
in 1982.  Release of the first external review drafts of the criteria
documents is scheduled in 1983.

     Also in  1982, the Agency continued its efforts to  develop methodologies
for using risk assessment in  setting NAAQS, as  has  been suggested  by a
number of groups,  including the National Commission on  Air Quality.   The
CASAC has agreed to set up a  subcommittee to assist and advise EPA in
applying risk assessment to the lead NAAQS review.

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               V.   STATUS  OF  AIR  QUALITY MANAGEMENT PROGRAMS


A.   STATE IMPLEMENTATION  PLANS

     1982 Attainment of NAAQS

     One set of provisions included  in  the  1977 Amendments  to  the Clean Air
Act addressed those areas  that  had not  yet  attained national ambient air
quality standards  (NAAQS).  These provisions  required  that  the primary
(health-related) NAAQS for particulate  matter, sulfur  dioxide,  and  nitrogen
dioxide be attained by December 31,  1982.   For ozone and  carbon monoxide,
the Act also required attainment  of  the primary NAAQS  by  December 31,
1982, except for those areas  of the  country which  demonstrated that attain-
ment by that date  was not  possible even after application of all  reasonably
available control  methods.  For those areas,  attainment  of  the primary
NAAQS had to be as expeditious  as practicable, but no  later than December  31,
1987.  In late 1982, EPA prepared a  Federal Register notice for publication
in early 1983 that identified portions  of  32  States and  Territories that
EPA concluded would not meet  the relevant  requirements of the  Act.   Unless
information to the contrary was received from the  public, EPA  proposed
to find the State  Implementation Plans  (SIP's) inadequate for  these areas.

1982 SIP Revisions for Ozone and Carbon Monoxide

     Certain areas of the country that  demonstrated that  the  primary NAAQS
for ozone (03) or  carbon monoxide (CO)  could  not  be attained  by December  31,
1982, even with the application of all  reasonably  available control measures,
were granted an extension of the attainment date  until no later than December  31,
1987.  The Clean Air Act required that  all  States  receiving such an extension
submit a revised SIP by July 1, 1982, demonstrating attainment no later
than the end of 1987.  A total  of 31 States requested  and were granted
compliance date extensions and were  therefore required to submit revised
SIP's.

     Also in late 1982, EPA prepared a  Federal Register  notice for  publication
in early 1983 that pertained to the  approval  or  disapproval of SIP's for
the 03 and CO extension areas.   As of the end of  1982, two  SIP's had received
final approval by EPA.  All other SIP actions described in  the Federal  Register
notice would either be proposed approvals  or proposed  disapprovals.  In  that
notice, EPA proposed disapproval of  plans  for either  03,  CO,  or both
for 17 of the 31 States.

     Lead SIP's

     In October 1978, EPA published  a national  ambient air  quality  standard
for airborne lead under Section 109  of the Clean  Air  Act.J_/  Section 110  of
the Act required each State to adopt and submit  to EPA within  nine  months
(i.e., by July 1979) a plan to implement that standard.   The  Act further

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                                    V-2
required EPA to approve or disapprove these SIP's within  four additional
months (by November 1979) and to promulgate SIP's within  two additional
months beyond that (by January 1980)  for States  that  did  not meet the
requirements specified in the Act.

     On July 30, 1982, the Natural  Resources Defense  Council (NRDC) and
other parties tiled suit in the U.S.  District Court for the District of
Columbia to require EPA to promulgate lead SIP's for  those States that had
not yet submitted them and to approve or disapprove lead  SIP's  that had
been submitted but on which EPA had not taken final rulemaking.  The Lead
Industries Association and St. Joe Minerals Corporation intervened in
the suit on behalf of EPA.  By the end of 1982,  the parties to  the suit
had met several times to try to negotiate a settlement to the suit that
would provide schedules for submission of lead SIP's.

     Through 1982, EPA had reviewed and taken final action on 21 complete
SIP's for lead and 7 partial SIP's.  For lead, a "complete" SIP is a state-
wide plan that covers all areas of the State; a "partial" SIP is a plan
that has been approved for some but not all areas of  the  State. Six
other complete lead SIP's had been submitted to EPA but EPA had not
taken final action in them in 1982.  There were 29  States and Territories
that had not submitted complete lead SIP's to EPA through 1982. At  least
12 of the States or Territories without approved lead SIP's  appeared to  be  in
attainment already with the NAAQS for lead.  In others, the  problems were
generally found in local areas near stationary sources of lead  and were  not
statewide.

     EPA took action to  reduce lead emissions from motor  vehicles, the
major source of lead emissions, as early as  1973.  On October 29,
1982, EPA amended the  rules governing fuel and fuel  additives,  known as
"lead-in-gas phasedown."2/  These amendments, which further  limit  the  lead
content in gasoline, will  reduce lead air pollution from  mobile sources
(the principal  source  of airborne lead pollution) by  34 percent more than
would have occurred under  the former regulations.  In fact,  the reduction
of  lead emissions from mobile sources since  1973 has  led  to  a  substantial
decrease  in the levels of  airborne lead pollution i°  many areas including
a  number  of the States without approved lead SIP's.

B.    PROCESSING OF SIP REVISIONS

      One  of the most  significant management  initiatives implemented  during
1982 was  the  reduction of  the SIP backlog.   A number of problems had arisen
in the  past  in  the processing of SIP  revisions, all  causing the review to
take  too  much  time and causing poor  relations with the States.   Efforts
were  focused  in  1982  on  changes to the SIP  review process which would
accelerate  review of  routine  and noncontroversial SIP actions  and reduce
the duplication  of effort  between  the States, the EPA Regional  Offices,
and EPA Headquarters.  This  helped bring  about  better working  relationships
between EPA  and the  States and  reduced  a  great  deal  of the uncertainty
that  the  States  had  felt  toward EPA  regarding their  SIP  revisions.  In
 1981,  three  improved  SIP processing  procedures  were  developed,  tested, and

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                                    V-3
implemented.   These were the  elimination  of  duplicative  review,  immediate
final rulemaking,  and parallel  processing.   These were  formally  implemented
on September 4,  1981, and provided  the  foundation for SIP  activity  in
1982.3/

     Prior to the implementation of these three procedures,  the  inventory
of SIP submittals  awaiting Regional Office  and  Headquarters  action  was
growing because EPA was only  able to process SIP actions at  two-thirds  the
SIP submittal rate.  A project  was  begun  in  late 1981 and  continued into
1982 to substantially eradicate this inventory.  A  reduction of  93  percent
was achieved by July 1, 1982.  The  continuing objective is to process SIP
revisions as rapidly as possible in order to avoid  any  future backlogs.

C.   NATIONAL AIR AUDIT SYSTEM

     The Federal program for  air quality  management under the Clean Air Act
is entering a period where more programs  can be delegated to, and assumed
by, State and local air pollution control agencies.  Examples of this
process include increased emphasis  on delegations of authority for  new
source performance standards  (NSPS), national emission  standards for
hazardous air pollutants (NESHAPS), and prevention  of  significant deteriora-
tion (PSD).  This decreased Federal involvement in  State decisions  will
require effective oversight of  national air quality management programs.

     Of primary concern is the  need to develop  a uniform audit process
which enables the Regions to evaluate each State's  performance and  adherence
to national  requirements and, at the same time, promotes and enhances  a
cooperative working  relationship between EPA and State  and local air pollution
control agencies.  In an effort to ensure equitable treatment of States in
the  audit process, EPA Headquarters personnel consulted with Regional
Offices and  representatives  from State and local agencies in 1982 to develop
comprehensive guidance for implementation of a  nationally consistent air
audit system.  With  the assistance of State and local  air pollution control
agencies, EPA intends to develop standardized audit criteria and measures
in  1983 and  begin a  pilot national audit program in 1984.

D.   EMISSIONS TRADING

     Emissions trading  includes several alternatives to traditional
regulation.  These alternatives do not alter existing air quality require-
ments but simply give States and industry more flexibility to meet theso
requirements.  Bubble trades and emissions reduction banking are two of
the  major emissions  trading  concepts being promoted by  EPA.

     Bubble  Trades

     Bubble  trades allow existing  plants (or groups of plants) to treat all
of their emission points as  though they were under a giant bubble and reduce
or  eliminate pollution  controls where  costs are high, in exchange for

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                                    V-4
compensating increased control at emission sources where control  costs  are
low.  They give firms increased compliance flexibility,  meet current  or
future pollution control requirements more quickly, make innovative control
approaches profitable, and can result in significant savings over the costs
of conventional controls.  In 1982, EPA issued a proposed emissions trading
policy to replace the original bubble policy and to streamline procedures,
giving States and industry more opportunities to use bubbles in many  more
circumstances and geographic areas.4/  EPA plans to issue the policy  in
final form after considering the comments that were submitted on  the  proposal.
In addition, in 1982 EPA approved or proposed to approve 33 bubbles saving
their users more than $120 million over the cost of conventional  pollution
controls, with many producing energy savings and greater emission reductions
than traditional regulation.  Over 100 other bubbles averaging $2 million
each in savings were under review at the State or Federal level.

     Emissions Reduction Banking

     Emissions reduction banking lets firms get credit for surplus emission
reductions and store such emission reduction credits (ERC's) in a legally-
protected manner.  ERC's can be "banked" (stored) and used in bubble
applications to meet control requirements for existing plants more flexibly
and efficiently, as offsets to support economic growth in areas not meeting
air quality standards, or in "netting" to exempt certain expansions or
modernizations from new source review.  Banking rules can speed trades
between firms, expand opportunities for bubbles, and encourage the production
of cheap ERC's at optimal times.  Banking systems also provide the certainty
needed for firms to invest in ERC's when meeting other control requirements,
creating a pool of readily available credits that make trading easier and
speeds permit issuance while assuring progress toward clean air.   As  of
December 31, 1982, four areas (Louisville, KY; San Francisco, CA; Puget
Sound, WA; and the State of Oregon) had formal banking systems in operation
and at least 12 other areas had drafted or proposed full banking provisions.

E.   BACT/LAER AND AIR QUALITY MODELING CLEARINGHOUSES

     New or modified facilities that are to be constructed in areas  of  the
country that are currently attaining the national ambient air quality
standards are required by the Clean Air Act to install best available
control technology (BACT).  In those areas of the country that have not yet
achieved compliance with the air quality standards, new or modified facilities
are  required to meet the lowest achievable emission rate (LAER) for that
particular type source.  Permits to construct new or modified sources are
issued by State and local agencies only after the sources agree to comply
with either BACT or LAER requirements.  Often an air pollution control
agency will need to establish BACT or LAER requirements either for a  source
type completely new to them or for a sou;ce type with which they have had
only minimal experience.  In these cases, the permitting agency may not be
knowledgable of the more recent advances in control technology for such
sources and it  is extremely helpful if the agency can refer to BACT or LAER
determinations made by other control agencies.

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                                     V-5
      EPA established  the  BACT/LAER  clearinghouse  several years ago  in order
 to assist State and  local  air  pollution  control agencies by promoting the
 sharing of air pollution  control  technology  information.   In  1982,  EPA
 revitalized the BACT/LAER  clearinghouse  by increasing participation by
 State and local  agencies  and by  improving the mechanisms whereby input is
 received and output  is  distributed.

      The primary output of the BACT/LAER clearinghouse  is  a report  of
 information that has  been  obtained  from  the  BACT/LAER determinations made
 by the various control  agencies.  The most recent  report entitled "BACT/LAER
 Clearinghouse—A Compilation of  Control  Technology Determinations (May 1982)"
 contains over 550 BACT/LAER determinations.5/  An  updated  compilation
 containing approximately  700 determinations  will  be distributed in  1983.

 10Un  EPA
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                                    V-6
     PSD Permit Reviews

     To expedite its issuance of PSD permits,  EPA management  established an
accountability system to track Agency performance in  reviewing  PSD  applications
in those cases where EPA is the responsible reviewing authority.  This
system showed that the average reviewing time  for issuing  PSD permits from
the point of complete application fell from approximately  eight to  seven
months during 1982.

     CMA Agreement

     On August 7, 1980, EPA promulgated extensive revisions to  its  PSD  and
nonattainment new source review regulations.6/  Numerous groups legally
challenged these regulations.  These cases were consolidated as Chemical
Manufacturers Association v. EPA.7/  In attempting to resolve the pending
concerns and to explore certain regulatory reform measures, the Agency
entered into a litigation settlement with the industrial parties on
February 22, 1982.  Pursuant to this settlement, EPA agreed to  propose
certain regulatory  changes.  One change to which EPA agreed pertained to
vessel emissions.   EPA agreed to complete rulemaking proposing to no longer
include vessel emissions in applicability determinations or ambient
assessments  for secondary emissions.  Final promulgation of this provision
appeared  in  the Federal Register of  June 25,  1982.8/  Other  rulemaking
packages to  implement  the  litigation  settlement were in preparation in
1982.   These other  packages addressed the topics of  netting and offsetting
baseline,  changes  to  the particulate matter PSD  increments, and various
other  issues such  as  fugitive  emissions, Federal enforceability, "buffer
zones," secondary  emissions,  and prior  shutdowns.

G.    IMPLEMENTATION GUIDANCE  FOR REVISED PARTICULATE MATTER  STANDARDS

      In anticipation  of  the  proposal  in 1983  of  revisions  to the national
ambient  air quality standards  for  particulate matter, EPA  has  been  developing
material  relevant  to the  implementation of  those standards.  The material
includes  regulatory revisions,  Agency policy, and  various  guideline documents.
The  areas  covered by the  material  are State Implementation Plan  requirements
 for  attainment and maintenance of  air quality standards,  air quality moni-
toring,  and prevention of  significant deterioration/new source review.
EPA  intends to propose this  material for public  comment along  with  the
 proposal  of the ambient standards.

H.    VISIBILITY PROTECTION

      Section 169A of the Clean Air Act establishes as  a national  goal  "the
 prevention of any future,  and the remedying of any existing, impairment of
 visibility  in mandatory Class I Federal ereas which impairment results from
 manmade air pollution."  On December 2, 1980, EPA promulgated  regulations
 implementing this  section.9/  Subsequent to this promulgation, ten organiza-
 tions filed for judicial review of the visibility regulations.  In addition,
 six organizations  filed petitions for  administrative reconsideration of

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                                    V-7
 the  rules.   Judicial  review of the regulations has been stayed pending
 the  Agency's  evaluation of the administrative petitions.  Additionally  on
 December  20,  1982, the Environmental Defense Fund, Inc., National Parks
 and  Conservation Association, Colorado Mountain Club, et.al., filed suit
 in the  United States  District Court for the Northern District of California
 seeking to  compel the Agency to promulgate State plans under Section 110(c)
 of the  Clean  Air Act  for those States which have not submitted such plans.

 I.    INTERSTATE AIR POLLUTION

      Section  126 of the Clean Air Act provides a mechanism for a State or
 local authority to petition the Administrator if there is concern that
 out-of-State  sources  interfere with their ability to meet Federal require-
 ments of  the  Clean Air Act.  Under this section, a total of 7 States and 1
 county  have  filed 18  petitions with EPA through 1982.  Twelve of these
 petitions from three  States (New York, Pennsylvania,  and Maine) have been
 consolidated  because  they all address emissions from many sources in a
 seven-State  region claiming to result in long-range transport and transfor-
 mation  of pollutants.  The remaining six petitions involve a specific
 source  contributing to a local  air pollution problem.

      In 1982,  the Agency reached a final decision on  the Section 126 petition
 brought by Jefferson County,  Kentucky, against the Gallagher power plant in
 Indiana.H)/  The Agency concluded that the Gallagher  plant did not interfere
 with Jefferson County's ability to meet Federally required standards.   That
 determination  has been challenged in court by Jefferson County.   The other
 petitions were under  review or were being resolved through negotiations
 with the  parties involved.

 J.   TALL STACKS AND OTHER  DISPERSION TECHNIQUES

     Section  123 of the Clean Air Act requires that stationary sources of
 air pollution not be allowed  to take credit for having stacks that are
 higher  than that defined by "good engineering practice" (GEP) and thereby
 evadp more stringent emission limitations.  In addition,  Section 123 does
 not allow sources to take credit  for any other type of air pollution
 dispersion technique.   The  section also requires the  Administrator to
 promulgate regulations to implement these requirements.  EPA promulgated
 these regulations on February 8,  1982.ny  In July  1982,  EPA denied petitions
 to reconsider these regulations.]^/  The regulations  established methods to
 determine GEP stack  height  and  define other dispersion techniques.   Section
 123 allows the use of a certain dispersion technique  known  as an intermittent
 control  system if this technique  was  implemented prior to December 31,
 1970.  An intermittent control  system is one which  varies the rate of'
 pollutant  emissions  according to  meteorological  conditions.   The Agency  is
working on a regulation which will  define the requirements  of an implemented
 system.   This rule will  be  proposed in  1983.

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                                    V-8
     There has been a court challenge to the promulgated stack  height  rules
filed by the Sierra Club, Natural Resources Defense Council,  and  the
Commonwealth of Pennsylvania.  The petitioners question several  aspects  of
the rule including stack height credit for plume impaction  on elevated
terrain, the definition of a stack, and the use of a formula  for  determining
GEP stack height.  The petitioners filed their arguments with the court  in
October 1982.  The ruling from the court is not expected until  1983.

K.   AIR POLLUTION TRAINING

     EPA provides technical training in the abatement and control of air
pollution.  This training includes short course presentations (three to
five days in length), self-study courses, technical assistance  to others
who conduct training, and the support of traineeships and fellowships  for
graduate air pollution training.

     During 1982, EPA conducted 27 short courses in 8 different  subject
areas for a total of 785 students.  These courses were presented  in  locations
across the U.S. by 7 universities designated as area training centers.
Technical assistance was provided to State and EPA Regional Offices to
conduct 9 additional courses reaching a total of 194 students.

     In an effort to reach more air pollution personnel and to  support the
transfer of control responsibilities to the States, EPA expanded  the numbers
and subjects of self-study courses.  Early in the second half of  1982, ten
new self-study courses were added.  During the last 5 months  of  the year,
just under 500 students applied for these courses.  (This represents an
increase of over 75U percent compared with the monthly average  for the
first 7 months of 1982.)

     As an additional means of developing qualified personnel,  EPA supported
26 graduate traineeships/fellowships to employees of State and  local air
pollution control agencies.  These awards are for both part-time  and full-
time study and the ond objective is generally a graduate degree  in the
field of air pollution control.

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                VI.  CONTROL OF STATIONARY SOURCE EMISSIONS


A.   NEW SOURCE PERFORMANCE STANDARDS (NSPS)

     The Administrator is required by Section 111 of the Clean Air Act 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.  Such standards apply to
new and substantially modified sources and are generally referred to as new
source performance standards (NSPS).

     During 1982, new source performance standards were promulgated for seven
new categories:  phosphate rock preparation ]/, lead battery manufacture 2J ,
asphalt roofing manufacture 3/, surface coating of large appliances 4/,  ~~
surface coating of metal  furniture 5/, metal coil surface coating 6/7 and
graphic arts (rotogravure printing).?/  The existing NSPS for petroleum
liquid storage (equivalency determination) B/ and gas turbines were revised.9/
Standards were proposed for three new categories:  metallic minerals pro-   ~
cessing JO/, synthetic fiber manufacturing _!]_/, and petroleum dry cleaning. 12/
Revisions were proposed for four phosphate fertilizer processes ]_3/, lime
plants 147, and the industrial  surface coating of automobiles and light-duty
trucks.]_5/,H>/  Standards development programs now underway are planned to
result in the promulgation of 13 and the proposal of 24 standards in 1983.

B.   NATIONAL EMISSIONS STANDARDS FOR HAZARDOUS AIR POLLUTANTS (NESHAP)

     Standards development work continued in 1982 for coke oven emissions
sources in the iron and steel industry and for major benzene emissions
sources in the chemical and petroleum industries.  Regulations under Section
112 of the Clean Air Act  were proposed in 1980 and 1981 for four source
categories of benzene emissions:   maleic anhydride manufacturing 17/,
ethylbenzene/styrene manufacturing's/,  and benzene storage and fugitive
leaks  of benzene in petroleum and chemical plants.V9/,20/  A public hearing
was held and public comment received.  As a result of a court order, EPA
plans  to either propose NESHAP  regulations or make negative determinations
on several  sources of inorganic arsenic  in 1983.

     The Science Advisory Board (SAB) completed their review of comprehensive
health assessment documents in  1982 for  acrylonitrile,  toluene, and chloro-
fluorocarbon-113.  SAB reviews  on draft  documents for methyl  chloroform,
methylene chloride, coke  oven emissions,  carbon tetrachloride, and perchlor-
ethylene were also conducted in 1982, with final  reviews scheduled in  1983.
These  documents constitute the  health basis for Agency  decisions on whether
to regulate these compounds as  hazardous  air pollutants under Section  112
or Section lll(d) of the  Act or whether  other appropriate action is necessary.
Health assessment documents on  11  other  pollutants are  scheduled for initial
SAB review in 1983.

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                                    VI-2
C.   DELEGATION OF NSPS AND NESHAP

     EPA made considerable progress in 1982 in delegating responsibility
for implementing the NSPS and NESHAP programs to the states  and  local  air
pollution control agencies.  At the beginning of 1982,  8 States  or
locals had accepted full delegation for applicable NSPS and  21 had accepted
full delegation for NESHAP.  At the end of 1982, these delegations increased
to 31  for NSPS and 45  for NESHAP.

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                     VII.   STATIONARY SOURCE  COMPLIANCE


A.   MAJOR STATIONARY SOURCES

     The goal of the Clean Air Act is to protect public  health and welfare
and enhance the quality of the nation's air.   The stationary  source compliance
program is designed to assure compliance with air emission standards by
stationary sources of air  pollution,  including such major facilities as
power plants, steel mills, smelters,  and refineries.  In addition to ensuring
compliance with emission limitations  contained in State  Implementation
Plans (SIP's), EPA and delegated States are responsible  for ensuring that
sources comply with new source performance standards (NSPS) and national
emission standards for hazardous air  pollutants (NESHAP).

     In the late 1970s, EPA embarked  on a program to bring sources which
had never installed control equipment into initial  compliance with applicable
air quality regulations.  Through the combined efforts of industry, States,
and the Federal government, the goals of this program had been largely  achieved
by the end of 1982, when over 94 percent of the sources  in the country  were
reported as achieving initial compliance or being in compliance with schedules
to install controls.  (This figure understates the  progress which was made
since there was growth of  over 2,000  additional SIP sources during this
period.)  Among the sources brought into compliance through this effort
were some of the largest contributors to the nation's air pollution problems,
with many of them having been in violation for several years.

     Since the conclusion  of this effort, the compliance rate for major
sources has been stable.  This is an  expected outgrowth  of the present
maturity of the program.  EPA and the States are not only continuing their
efforts to ensure that the remaining  sources achieve initial  compliance,
but also focusing on ensuring that controls which have  been installed are
operated and maintained in a manner that maximizes  their environmental
benefits.

     Illustrative of the importance of this effort  is a  study by the National
Commission on Air Quality  (NCAQ), which found that  71 percent of 180 sources
reported as being in compliance had documented incidents of excess emissions
25 percent above the allowed emissions level, with  the  primary cause being
improper operation and maintenance practices.jy

     To realize the maximum environmental benefit of the investments made
to date, programs to assure proper operation and maintenance are being
developed and made available to the States.  In 1982, EPA committed itself
to work with States and local agencies on a voluntary basis to develop  and
test various elements of a program designed to ensure continuing compliance.
In addition, EPA is providing an increasing level of technical support  to
strengthen State programs  as well as  direct technical assistance when
requested.

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                                   VII-2 ,
     Enforcement actions must be prioritized to ensure that the maximum
environmental benefits are achieved.  EPA, in cooperation with the States,
has been developing prioritized lists of the most significant violating
sources to focus resources where the greatest environmental gains can be
mado.  EPA is looking to the States to assume the primary role in bringing
enforcement actions against these sources and will, as previously discussed,
provide .technical support as needed.  Where the State efforts are not
successful, EPA is ensuring compliance by bringing a Federal administrative
or judicial action.

     A fully integrated compliance data system (CDS) is essential as  a
management tool to direct limited resources in maximizing environmental
results.  EPA is continuing to improve its CDS and is working with
several States to develop or adapt their own integrated systems to make
them compatible, with CDS.  This will improve the quality of the State data
in the system as well as minimize reporting burdens on the States.

     New source performance standards and hazardous air pollution programs
remain a high priority of the air enforcement program.  EPA is actively
encouraging delegation of existing NSPS and NESHAP, although a residual
Ipvel of EPA enforcement activity is still required.  Substantial effort
has been made and is likely to continue with respect to enforcing NESHAP
regulations for vinyl chloride and a considerable effort is anticipated as
new NESHAP regulations are promulgated.  While both NSPS and NESHAP sources
currently exhibit low violation rates, 3.1 percent and 1.4 percent,
respectively, EPA and the States are committed to ensuring that these rates
remain low despite significant growth in the number of sources subject to
these standards.

B.   1982 DEADLINE ENFORCEMENT POLICY

     On September 20, 1982, the Administrator issued a policy on enforcement
against sources in primary nonattainment areas that are not in compliance
with the Clean Air Act by December 31, 1982.  The policy recognizes that
courts have equitable jurisdiction to fashion relief that allows a source
to continue to operate in violation beyond 1982 whi'a taking steps to come
into compliance expeditiously.  The policy sets forth criteria to determine
the relief the Agency should seek in each case, particularly whether  a
compliance schedule is appropriate or whether the Agency should seek  closure
of the source until it can demonstrate compliance.  To justify continued
operation of the source, the Agency must determine that the public interest
in continued operation outweighs the environmental cost of the additional
period of noncompliance.

     If the Agency determines that continued operation of a source is
appropriate, EPA may stipulate that an expeditious compliance schedule
be used as the basis for entry of a judgment order.  EPA will seek to ensure
that the order embodies certain conditions enumerated in the policy,  including,

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                                   VII-3
most importantly,  a schedule  which  is  as  expeditious  as  practicable, an
interim emission limitation,  and significant  civil  penalties.  EPA will
evaluate State enforcement  actions  using  the  same  criteria  and will  initiate
independent Federal action  if the State action  does not  implement the  basic
goals of the policy.

     The policy does not apply to sources of  pollutants  for which an area
has an extended attainment  deadline of December 31, 1987,  pursuant to
Section 172 of the Clean Air  Act.

C.   STEEL INDUSTRY COMPLIANCE EXTENSION  ACT

     One of the major emphases of the  air enforcement program has been the
implementation of  the Steel Industry Compliance Extension  Act.   Under  this
Act, Congress gave the EPA  Administrator  authority to extend deadlines for
installation cf certain air pollution  control  equipment  for up to three
years if a company agreed to  invest an amount at least equal to  the  deferred
costs of pollution control  equipment in modernization to improve the
efficiency and productivity of its  steel  making facilities.  Any company
that gets an extension must ensure  that all of  its air pollution sources
will comply with applicable standards.  The terms  of an  extension, offsetting
modernization requirement,  and compliance schedule are to  be set forth in
consent decrees.

     A total of ten companies submitted applications since the legislation
was signed on July 17, 1981.   Consent  decrees implementing the Administrator's
favorable findings on four of these applications have been negotiated  with
the eligible companies and  are at various stages in the  judicial process.
In  1982, consent decrees involving  the Ford Motor  Company  and the Alabama
By-Products Corporation were  entered by the appropriate  U.S. District
Courts reflecting extensions  and modernization projects.  In 1982, the
Administrator also completed  negotiations approving extensions  for the
United States Steel Corporation and Sharon Steel Corporation, with  formal
decrees being entered early in 1983.  The Administrator  also approved  the
application submitted by Shenango Incorporated, but the  Corporation
subsequently withdrew its application  because it decided not to  invest in
modernization.

     The applications submitted by  the National Steel Corporation, Kaiser
Steel Corporation, and Inland Steel Corporation were withdrawn after pre-
liminary indications from the Agency that the corporations were  not  eligible
for extensions under the provisions of the Act.  An amended consent  decree
covering National  Steel Corporation's  Great  Lakes  Steel  Division was entered
in August 1982 requiring compliance by December 31, 1982,  and assessing
$3.0 million in civil monetary penalties for  violations  of the original
decree.  EPA is pursuing enforcement to resolve consent  decree violations
by  the companies.

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                                   VII-4
     The application submitted by the Wheeling-Pittsburgh Steel  Corporation
remains pending with the Agency.  Agency staff completed its  review of  the
application in 1982, and recommended that the application be  granted if the
Corporation first satisfies certain conditions required by the Act.   While
the Corporation is pursuing satisfaction of these conditions,  the  negotiations
with the Corporation are proceeding to develop a consent decree  which would
implement favorable findings if they are issued.

D.   MAJOR COURT ACTIONS

     United States Steel Corporation - On January 6,  1983, the Administrator
consented to the entry of seven new or amended consent  decrees under the
Steel Industry Compliance Extension Act pertaining to the United States
Steel Corporation.  The decrees establish control programs and compliance
schedules for every significant steel making source owned by  the Corporation
which is not in compliance with the Clean Air Act, and  contain stipulated
penalty provisions to ensure that the requirements of the decrees  are met.
The seven decrees cover the Corporation's plants located in Mon  Valley  and
Fairless, Pennsylvania; Lorain, Ohio; Fairfield, Alabama; Gary,  Indiana;
South Chicago, Indiana; and Baytown, Texas.  In accordance with  the Extension
Act, the Corporation is required to undertake modernization projects totalling
$n.68 million in exchange for extensions, up to December 31,  1985,  to
install certain pollution control equipment.  The extensions  were  found to
be necessary to enable the Corporation to invest in these modernization
projects.  In addition, the decrees require the payment of $250,000 as  a
penalty for past violations, and contains a commitment  by the Corporation
to make publically available certain new, very cost-effective, pollution
control technology.
     Jpjies and Laughlin Steel Corporation - On December 29,  1982,  the
Administrator denied the application submitted by the Jones  and  Laughlin
Steel Corporation under the Steel Industry Compliance Extension  Act.   The
denial was based upon a finding that the Corporation is in  violation of
Federal judicial decrees, and that the violations are not  de mini mis in
nature.  The Corporation therefore failed to meet an eligibility requirement
established by the Act.  The Federal government filcj three  contempt actions
against the Corporation on January 6-7, 1983, citing judicial  decree
violations at its plants located in Pittsburgh and Aliquippa,  Pennsylvania;
Cleveland and Campbell, Ohio; and East Chicago, Indiana.   The  actions  seek
Clean Air Act compliance at the Corporation's plants and  penalties for
past decree violations.

     National Steel Corporation - As noted earlier, on August  16,  1982, an
amended judicial decree was entered affecting the National  Steel Corporation's
Great Lakes, Michigan facility.  The decree required the  payment of $3.0
million as a penalty for violations of the original consent  decree and
expeditious compliance with the Clean Air Act.

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                                  VII-5


     Commonwealth  Edison,  Illinois - EPA concurred on June  3D, 1982, in
the filing of factual  stipulations to  be used as the basis of a judgment
order resolving this  action.   The case was originally filed in the Northern
District of Illinois  by  the State of Illinois,  and the United States
intervened in the  action in April 1980.  The case involves violations of
particulate and sulfur dioxide limitations at 17 units at 7 power plants  in
Illinois.  The stipulation was filed with the court on July 1, 1982, and
the court entered  the order July 2,  1982.  The  order provides for compliance
at all of the units for  both  pollutants.

     American Brick,  Dolton.  Illinois  - On June 23, 1982, the Northern
District of Illinois  denied American Brick Company's request that its 1980
consent decree schedule  be extended  until December  1, 1982.  EPA opposed
the request on the grounds that the  extension was not necessary.

     EPA and American Brick Company  have  now  renegotiated the terms  of  the
consent decree which  had been entered  in  August 1980.  The modified  consent
decree was entered January 25, 1983.

     Under the terms  of the new decree, American Brick  is  now  shut  down.
On or before April 22, 1983,  American  Brick will notify  EPA whether  it
elects to remain shut down or to install  pollution  controls.   If  it  elects
to install controls,  the company will  proceed on a  compliance  schedule
which requires it to complete installation  of controls  and  demonstrate
compliance with all applicable Illinois  State  Implementation  Plan  limitations
no later than October 22, 1984. American Brick will  not operate  its plant
at all between December 31,  1982,  and  the date  on which  it  begins  compliance
testing  in 1984.

E.   COMPLIANCE BY FEDERAL FACILITIES

     During  1982, Federal facilities classified as  major sources  of air
pollutants made continuous progress  toward coming  into  compliance with
applicable regulations.  Through 1982, 336 (92  percent)  of these  facilities
met applicable emissions limitations.   Of the 29 noncomplying facilities,
17 have  agreed to compliance  schedules that will eventually  bring them into
compliance.

F.    LIST OF  VIOLATING FACILITIES

      The list  of  violating facilities, under Section 306 of the Clean Air
Act,  is  designed  to prevent the Federal  government  from subsidizing Clean
Air Act  violators with  contract, grant,  or loan monies.

      No  Clean  Air Act violators were  listed in  1982.

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                  VIII.  CONTROL OF MOBILE SOURCE EMISSIONS
     Control of motor vehicle emissions has been a Federal responsibility
since  1968.  The requirements of the Clean Air Act relating to mobile
sources have been subsequently refined several times, most recently in
1977.  The Clean Air Act Amendments of 1977 established an ambitious
regulatory program which addressed problems identified in the motor vehicle
f-^missions control program at that time, and bolstered efforts to attain and
maintain the national ambient air quality standards for carbon monoxide
(CO) and ozone.  The mobile source-related provisions of the 1977 Act include:

     - Establishment of a schedule for implementation of stringent emissions
standards for automobiles--0.41 grams per mile (gpm) for hydrocarbons (HC),
3.4 gpm for CO, and 1.0 gpm for oxides of nitrogen (NOX).  The table below
displays the level  of control envisioned by the standards.

                      New Light-Duty Vehicle Emissions
            Hydrocarbons

            Carbon Monixode

            Oxides of Nitrogen
          Prior to
          Control

            8.8 gpm

           87.0 gpm

            3.6 gpm
                                                Current     Percent
                                                Standard    Reduction
 .41  gpm

3.4 gpm

1.0 gpm
9b%

96%

72%
     - Establishment of HC, CO, and NOX standards for heavy-duty engines
similar in stringency to those for light-duty vehicles.

     - Additional control of evaporative HC emissions from heavy-duty
vehicles through the adoption of a more realistic test procedure.

     - Control of particulate emissions from both light-duty and heavy-duty
vehicles.

     - Implementation of motor vehicle inspection and maintenance (I/M)
programs in areas with severe CO and ozone air pollution problems.
     In the period since
the Act's mandates.  Thi
result of the financial
in recent years.  In the
in April 1981, EPA commi
consistent both with the
air.]/  During 1982, EPA
with development of its
 1977, EPA has made great progress toward fulfilling
s process has become more complex, however,  as a
difficulties encountered by the automotive industry
 Auto Task Force report released by the White House
tted itself to a series of regulatory relief measures
 law and with continued movement toward cleaner
 attempted to achieve these goals as it proceeded
mobile source emissions control regulatory program.

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                                   VIII-2
A.   STANDARD SETTING

     Light-Duty Vehicles

     Beginning with the 1981 model year, the Clean Air Act standards  for
automotive exhaust emissions stabilized at 0.41  gpm HC, 3.4 gpm CO, and  1.0
gpm NOX.  (Limited waivers were made available for CO and NOX.)  Achievement
of these standards was made possible by the development of sophisticated
technology (most notably the three-way catalyst) capable of controlling
emissions of HC, CO, and NOX simultaneously.  Starting with the 1983  model
year, all gasoline-powered vehicles must meet the statutory standards.

     Actions undertaken during 1982 with respect to light-duty vehicle and
truck emissions standards include:

     - The current standard for particulate emissions from light-duty diesel
vehicles is 0.6 gpm.  This standard is scheduled to be tightened to 0.2  gpm
beginning with the 1985 model year.  However, since the technology which
was originally planned to be generally available by 1985 has not yet
demonstrated sufficient reliability, EPA proposed to postpone the more
stringent standards until 1987.2/  In the interim, EPA has undertaken an
in-depth study of controlling diesel particulates in order to develop
standards that will achieve the greatest impact  on air quality while  causing
the least disruption to the industry.

     - EPA has developed a plan to regulate light-duty diesel particulate
emissions through averaging (i.e., control of emissions from a manufacturer's
fleet on the average rather than from each individual vehicle).  This
concept affords manufacturers the option of selecting the most cost-effective
way of controlling emissions from their fleets by optimizing controls on
selected vehicles rather than on all vehicles in the fleet.  Final rulemaking
is expected during 1983.

     - The Clean Air Act requires that as of 1984, all cars sold in the
U.S. must be capable of meeting the emissions standards regardless of
altitude.  EPA has proceeded with the development r* regulations designed
to meet the Act's requirements.  Separate rulemakings for model year  1984
light-duty trucks and passenger cars were prepared for promulgation  in
early 1983, in conjunction with the release to the Congress of a formal
report on this issue.  In addition, EPA has set  interim high altitude
standards applicable to model years 1982 and 1983 for both cars and light
trucks.  A regulation proposed in late 1982 is designed to assure that the
impact of these interim standards focuses on those counties with the  most
severe pollution problems.3/

     Heavy-Duty Engines

     With the achievement of strict standards by passenger cars, EPA  has
devoted additional attention to the development  of a parallel set of
standards for heavy-duty engines.  This process  is especially important  in
light of projections that heavy-duty vehicles will be an increasingly
significant contributor to emissions inventories for the rest of the  century.

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                                   VIII-3
     During 1982,  EPA made  progress  on  a  number  of  issues  related to heavy-
duty engines:

     - A regulation limiting evaporative  HC  emissions  from heavy-duty  trucks
was prepared for promulgation in early  1983.   These standards  will  reduce
the levels of nomethane hydrocarbons (NMHC)  by 92 percent  over uncontrolled
levels.

     - Exhaust emission regulations  that  were to take  effect  in the 1984
model year specified that light trucks  and heavy-duty  engines  must  meet new
HC and CO standards that would require  the use of catalyst technology. In
January 1982, EPA proposed to revise the  CO standard to a  level that would
not require catalysts, resulting in  substantial  cost-savings  while  still
achieving significant emission reductions over current standards.4/ This
revision was not projected to affect the  ambient attainment status  for CO
or ozone.  A number of factors combined to warrant this modification  to the
CO standard.  After the promulgation of the model year 1984 catalyst  standards
in  1979, the industry began to experience the effects of the economic
downturn.  As a result of these economic  difficulties, a series of  actions
to provide some relief to the industry  was undertaken in April 1981.   Among
these  actions was the proposal by EPA to  adjust the standards for HC  and
CO.  Because of the  inherent complexities, however, it has not been possible
to  resolve all the issues and to promulgate the final rule.  EPA will
continue to work with the industry to clarify the  issues and develop workable
solutions.

      - A  related  rulemaking  delaying the  implementation of the new HC/CO
standards  until model year  1985 was prepared  for promulgation  in early
1983.   This  delay will ease  manufacturers' concerns about  adequate leadtime
and  give EPA the  opportunity to  resolve  pending  issues related to the
standards.

      - EPA improved  its  testing  data base and performed technical analyses
in  preparation  for the  1984  promulgation  of  standard  for  heavy-duty NOX and
particulate  emissions.   This set of regulations  was the focus  of a public
hearing held in July 1982.

      Other Vehicle Categories

      During 1982,  EPA promulgated a revised  set  of standards  for emissions
 of HC and CO from aircraft;  this  rule  substituted  for outdated standards
 that were set  to  take effect on January  1,  1983,  and  were more consistent
with international  standards.5/ A  related  rule concerning aircraft smoke
 emissions was  prepared  for  promulgation  in  early 1983.

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                                   VIII-4
     Fuels

     In October 1982, EPA published a rule revising the standards  applicable
to lead in gasoline.6/  This rulemaking,  which will reduce  airborne  lead 34
percent more by 1990 than under the rule  previously in  effect,  resulted
from a review initiated in 1981 at the request of the Presidential Task
Force on Regulatory Relief.  It will  speed up reductions  in airborne  lead
levels to protect the health and welfare  of all Americans,  particularly pre-
school children in urban areas.

     EPA has also been concerned about the regulatory implications of the
potential introduction into the marketplace of alternative  fuels such as
methanol.  A report on this subject was prepared for delivery  to Congress
in early 1983 and several fuel waivers were processed.

B.   PREPRODUCTION COMPLIANCE

     One of EPA's long-standing techniques for assuring compliance with
motor vehicle emissions standards is the  preproduction  certification  review
program.  Initiated in 1968, the program entails engineering review  by EPA
staff of engine families representing the new vehicles  to be sold  in  the
United States.  Steps in the process include submission by  manufacturers of
technical data about respective vehicles, emissions testing of prototypes
by manufacturers, review of engineering data and test results  by EPA, and,
in certain cases, confirmatory testing of prototypes at EPA's  laboratory
facility in Ann Arbor, Michigan.

     During  1982, EPA completed a series of major changes to the  preproduction
certification program.  Now that many emissions standards are  at  or  close
to their statutory  levels, and manufacturers are familiar with the testing
program, extensive  EPA involvement in the day-to-day process is no longer
required.  After  a  thorough review of all procedures, EPA developed  reforms
which have reduced  the complexity and cost of the program,  and focused most
effort on those engine families with the greatest potential impact on air
quality.  The new certification rules simplify testing requirements,  reduce
paperwork by approximately 20  percent, and increase  industry flexibility.
The  resulting savings to manufacturers will be at  least $5 million annually.

C.    INSPECTION/MAINTENANCE

     A strategy for dealing directly with  in-use emissions problems  is the
encouragement of  motor vehicle inspection  and  maintenance  (I/M) programs.
EPA's basic  approach  in  this  area was determined by  the 1977 Amendments  to
the  Clean Air Act.   Urban  areas of the country which obtained an extension
in the deadline for attaining  the ambient  air  quality standards for automotive-
related  pollutants  beyond  1982 are required  by the Act to  implement an I/M
program.

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                                  VIII-5
     This I/M  requirement  applies  to areas  in 30 States.  As of the end of
1982, 14 States  already  had  operating  programs, two others were on schedule,
and 14 others  were deficient.   States  whose State  Implementation Plans are
disapproved due  to the failure  to  proceed with  an  I/M  program will be
subject to the sanctions specified in  the Act.

D.   ALTERNATIVE COMPLIANCE  MEASURES

     In recent years, increasing attention  has  focused on  the  problem  of
excessive emissions from in-use vehicles.   This emphasis  has  resulted  from
the perception that the Nation's considerable investment  in  vehicle  emissions
control technology can be squandered  if for any reason the equipment does
not perform as anticipated in actual  use.

     EPA is now proceeding with a study whose goal is  to  identify  the  most
efficient way to achieve in-use vehicle compliance with emissions  standards.
It is possible that an alternative approach could entail  an  expanded role
for emissions averaging.  An ongoing in-use vehicle testing  effort is  aimed
at generating data for this study.  EPA anticipates that  the analytical
work may be completed sometime during 1985.  If a replacement program is
feasible, appropriate legislation will be proposed to the Congress and an
appropriate program developed.

E.   MOBILE SOURCE ENFORCEMENT

      The EPA  mobile  source  enforcement program is directed primarily toward
achieving  compliance  with motor vehicle emissions standards and fuel
 regulations as  required by  the Clean Air Act.  The major goals and objectives
are  to:   (1)  assure  that  new vehicles meet  emissions  standards; (2) assure
that vehicles meet emissions standards in  use; (3) assure that emissions
control  systems  are  not  removed or rendered inoperative;  (4) assure control
 of hydrocarbon  emissions  during gasoline transfer operations;  (5) assure
 that harmful  additives  are  not  present in  gasoline; (6) administer statutory
 and  California  emissions  standards waivers;  and  (7) administer the statutory
 emissions  warranties.

      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 emissions  standards.  During 1982,  1,169,352  vehicles  were  recalled
 either by direct order of EPA or  as a result of  an  EPA investigation.   In
 the same period, manufacturers voluntarily recalled 28,049  vehicles to
 correct emissions problems.  EPA conducted a total  of 42 recall  investigations
 in fiscal year 1982, and performed 612 tests of  in-use vehicles  at  laboratory
 facilites in Springfield, Virginia,  and Ann Arbor,  Michigan.   In  order  to
 assure that emissions control  systems operate  properly throughout their
 useful lives, EPA has focused increasingly on  testing and investigation of
 high mileage vehicles.

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                                   VIII-6
     Emissions Standards Waivers

     During 1982, EPA granted several  requests  from automobile manufacturers
for a short-term waiver of the 1981-1982 model  year carbon  monoxide  (CO)
emissions standard for gasoline engine powered  automobiles  and 1981-1984
model year oxides of nitrogen (NOX) emissions  standard  for  diesel engine
powered automobiles.

     Selective Enforcement Auditing

     In order to assure that production vehicles are made in accordance
with emissions standards, EPA conducts Selective Enforcement Audit  (SEA)
test programs at manufacturers' facilities.  EPA has found  that  the  SEA
program encounters few failures, because automobile manufacturers  routinely
test on a voluntary basis many more vehicles than are strictly  required
through SEA orders.  Therefore, beginning in 1981, EPA changed  its  SEA
policy to place  greater reliance on manufacturer testing programs  and less
on EPA-mandated  audits.   In  fiscal year 1982,  EPA conducted 25  SEA test
programs.

     Unleaded Gasoline Enforcement Program

     EPA has  responsibility  for enforcing Section  211 of the Clean Air Act,
relating to the  regulation  of  fuels and fuel additives.  One of the
regulations under  this  section  of  the Act  is aimed at protecting the
catalytic  converters  on  1975 and  later  model year  cars.

     £PA 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 or State inspectors  under EPA contract, in order to
measure  the fuel's lead  content.   EPA conducted  14,OUO  inspections under
this program  during 1982.
                      »
     Tampering/Fuel  Switching

     EPA is  also responsible for carrying  out  programs  designed to deter
tampering  with  vehicle emissions control systems or  using  leaded fuel in
 vehicles which require unleaded fuel.   Surveys undertaken  by EPA have shown
tampering  and fuel switching to be continuing  serious  problems which under-
mine the emissions control performance  of  many in-use  vehicles.  The latest
 survey indicates that about 17 percent  of  the  vehicle  fleet is  subject to
 gross  tampering, and about  12 percent to fuel  switching.

      In 1982, EPA prepared  an initiative to promote State  and local
 anti-tampering and anti-fuel switching enforcement programs.  The  aim of
 this initiative is to establish tampering  and fuels programs which  directly
 benefit HC, CO, and NOX  nonattainment areas.   Implementation of the  initiative
 will proceed in 1983.

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                                   VIII-7
     In a related area,  EPA is  in  the  process  of  revising  its  current anti-
tampering regulations in order  to  clarify  precisely what constitutes
tampering and what is the liability  of manufacturers,  suppliers,  and
repairers of motor vehicles. As  part  of  this  process,  EPA sponsored  a
public workshop on anti-tampering  issues  in  July  1982.

     Enforcement Regulations Development

     The Clean Air Act prohibits  the introduction into commerical  use of
automobiles which are not certified  as meeting emissions standards,  but the
Act and EPA regulations  permit  manufacturers to apply  for  exemptions  for
vehicles used in development and  testing  programs for  new  engines or other
technologies.  In July 1982, EPA  revised  its regulations governing these
exemptions in order to simplify the  application process and reduce reporting
requi rements.

     Another regulatory  amendment  signed  by  the Administrator in 1982 makes
the octane designation portion  of EPA's unleaded gasoline  regulations
consistent with the Petroleum Marketing Practices Act.7/   Gasoline
distributors and dealers will therefore not  be forced  to obtain separate
octane values in order to comply  with EPA and FTC rules.

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                              IX.  LITIGATION


     The United States  Courts  of Appeals decided ten cases under the Clean
Air Act in 1982.  The range of issues  covered was unusually narrow, for
all but one of the cases  involved  the  rules  for setting up, approving, and
operating State Implementation Plans  (SIP's).  These plans are  the basic
regulatory structures through  which States work to  attain the national
air quality standards and to implement the prevention  of  significant
deterioration (PSD) program.

     The most significant case of  the  year was NRDC v. Gorsuch,  685 F.2d
718 (O.C. Cir.).  Under the Clean  Air  Act, every major new source of air
pollution and every modification  to  an existing major  source  that  is  located
in an area which is not attaining  national ambient  air quality  standards
must meet certain regulatory conditions and  obtain  a  permit  before  construction
begins.  A source is modified within  the meaning of this  requirement  if  its
emissions of a pollutant for which its area  is  nonattainment  increase  by
significant amounts.

     The question posed in the NRDC  case arises when  a number of emitting
units, each of which would be a major source when  viewed  in  isolation,  are
located at a common plant site.  EPA,  by regulation,  had  moved  to allow
States to define the entire plant  as  the source  for purposes  of new source
review.  Under this definition, increases  at units  at such a  plant  would be
excluded from new source review even when  they  exceeded  the  significance
threshold as  long as the source owner produced  simultaneous  emissions
decreases elsewhere in the plant so that emisisons  from the  plant as  a
whole  did not increase above this threshold.

     The D.C. Circuit  rejected this approach and held that its  prior decisions
had drawn a  "bright  line"  between programs designed to improve air quality,
as to  which  such  a  "bubble" approach to new source review was forbidden,
and programs  designed  to maintain existing levels  of air quality, as to
which  the  "bubble"  approach was permitted.

      1982  also  saw  decisions  in the first of many  pending challenges to EPA
approval  of  State  relaxations  of control requirements for sulfur dioxide
 (S02).  In  three  decisions  issued the  same day, the Second Circuit upheld
EPA's  approval  of such revisions.

      In  Connecticut Fund  for  the Environment v. EPA,  696 F.2d  169, the
court  held  that EPA was  not  required  to consider the  possible  impact on
particulate concentrations of relaxing emission limits in Connecticut for
SO^,  in  part because the  Clean Air Act  does not appear to contemplate such
a requirement and in part  because evaluating the transformation of S02 into
participates,  particularly over long  distances, presents technical and
 scientific problems that  the  Agency has not yet successfully resolved.

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                                    IX-2
     In a companion case of the same name [696  F.2d  179], the court
upheld a Connecticut program that allowed sources  that  carried out energy
conservation programs to burn higher sulfur fuel  in  return.  The court
relied in part on the same reasoning as in its  first case and in part on
the fact that each new individual S02 limit would  be the subject of public
notice and comment as a SIP revision.

     The third case, State of Connecticut v. EPA,  696 F.2d  147, involved
a challenge by Connecticut to an emission limit set  by  New  York and approved
by EPA that allowed a power plant on Long Island to  continue burning higher
sultur fuel than New York generally allows.  The court  approved EPA's
technical decisions in deciding that the plant  in  question  did not have a
significant effect on air quality in Connecticut.   It also  addressed the
meaning of the provisions of the Clean Air Act  that  seek to prevent one
State from polluting the air of another, upholding EPA's view that these
provisions bar emissions increases in one State that, under existing control
patterns, would cause violations of the standards  in another, but not those
that would have a lesser adverse impact.  It did,  however,  suggest that the
Clean Air Act requires EPA to evaluate the effect  of a  change in S02 emission
limits in one State on particulate concentrations  in another, even though
such an analysis is not required within the State that  is changing its S02
rpquirements.  Nevertheless, the court upheld EPA's  decision because it
found that the direct impact of the plant's S02 emissions would be minimal
dnd that EPA lacked the technical capability to evaluate the impact of any
atmospheric transformation of S02 into particulates. Finally, the court
left open the question of how the effects of interstate pollution on the PSD
program should be evaluated.

     In yet another case entitled Connecticut Fund for  the  Environment v.
EPA, 672 F.2d 998 (2d Cir. 1982), the Second Circuit upheld EPA's policy of
"conditionally approving" State submissions that were not  fully complete
conditioned on the States repairing the deficiencies within a set time.
However, it also concluded that EPA could not lift the  restrictions on
construction of new or modified major stationary sources  of air pollution
that the statute imposes on States without approved SIP's  until the SIP had
been ful ly--rather than conditionally—approved.

     In Council of Commuter Organizations v. Gorsuch, 683  F.2d  648  (2d Cir.
1982), the court applied this same reasoning to EPA's approval  of a plan to
control auto-related pollutants  in New York City.  It also  found  that  this
plan satisfied the  first round of requirements of the Clean Air Act relating
to public  transit systems  (including a provision that only  applied  to
New York City).

     In Public Service Company of Indiana v. EPA, 682 F.2d  626  (7th Cir.
1982), the court rejected  industry arguments that in passing  on  State-
submitted  SIP  revisions, EPA must either  approve them as a  whole  or
disapprove them as  a whole.  Instead,  it  upheld EPA's authority  to  approve
those  portions of a  submission that met  the standards of the  Clean  Air Act
and  disapprove those that  did not.

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                                    IX-3
     In a final  case relating  to  the  adequacy  of  State  SIP submissions, the
Ninth Circuit held that the Pacific Legal  Foundation  lacked  standing to
challenge EPA's  imposition  of  construction limitations  on California, and
its barring of certain Federal  grants there, because  of California's failure
to conform its implementation  plan provisions  to  the  requirements of Part D
of the Clean Air Act.  Pacific Legal  Foundation  v.  Gorsuch.

     In Roosevelt Campobello International Park  Commission v.  EPA,  684
F.2d. 1034 (1st  Cir. 1982), the court held that  judicial  review  of  various
questions relating to EPA's grant of  a PSD permit to  the Pittston Company's
proposed refinery at Eastport, Maine, was  not  appropriate because the permit
would not he of  any practical  use unless EPA also amended some of the
applicable regulations, a step which  it had not  yet taken.

     In Kennecott Corp. v.  EPA, 684 F.2d 1007, the D.C. Circuit  invalidated
the portion of EPA's Section 119 nonferrous smelter order (NSO)  regulations
governing how the Agency determines a smelter's  eligibility  for  an  NSO.
EPA's test would have allowed  an NSO, which postpones SIP compliance, only
when timely SIP  compliance  would cause the smelter to shut down. The court
found this too stringent, holding that Congress  did not intend to  deny  an
NSO when timely  compliance  would impose on the smelter certain adverse
economic consequences short of shutdown.  The  decision pertains  only  to
EPA's NSO rules  for the first  statutory period,  which expired  at the  end  of
1982.  However,  its reasoning  will  be relevant to EPA's forthcoming NSO
rules for the second period, 1983-1988.

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                               X.   REFERENCES


Chapter II

1.   44 Federal  Register  27558  (May 10,  1979).

2.   Guideline on Air Quality Models.  EPA-450/2-78-027.  April  1978.

Chapter III

1.   K. Scheme and J. Shreffler,  "Final  Evaluation of Urban Scale Photochemical
     Air Quality Simulation  Models," EPA-60U/3-82-094, December  1982.

2.   P. Gabele,  R. Sweidinger,  and  F. Black,  "Passenger Car Exhaust Emission
     Patterns -  Petroleum and Oil Shale  Derived Diesel Fuels," Society of
     Automotive  Engineers. 820770,  June  1982.

3.   T.B. Martonen,  and A.F. Wilson, "The  Influence of Hygroscopic Growth
     Upon the Deposition  of  Broncodilating Aerosols in Upper Human Airways,"
     The Proceedings of the  G.A.E.F. Meeting  in Bologna, Italy,  September
     1982.

4.   T. Lavery,  A. Bass,  D.  Strimaitos,  A. Venkatram, B. Green,  P. Drivas,
     and B. Egan, "EPA Complex  Terrain Model  Development - First Milestone
     Report - 1981," EPA-600/3-82-036, April  1982.

5.   "Recommended Accuracy Checks for NESHAP  Methods," QA Handbook Volume III
     EPA-6UU/4-77-0276.                               	

Chapter IV

1.   45 Federal  Register  55066  (August 18, 198U).

2.   47 Federal  Register  26233  (June 17, 1982).

3.   "Air Quality Criteria for  Oxides of Nitrogen." Environmental Criteria
     and Assessment  Office,  Office  of Research and Dr-velopment,  U.S. EPA,
     Research Triangle Park, N.C.   EPA-600/8-82-U26F, December 1982.

4.   "Review of  the  National Ambient Air Quality Standards for Nitrogen
     Oxides:   Assessment  of  Scientific and Technical Information."  Office
     of Air Quality  Planning and  Standards Staff Paper.  U.S. EPA,
     Research Triangle Park, N.C.   EPA-450/5-82-002, August 1982.

b.   "Review of  the  National Ambient Air Quality Standards for Particulate
     Matter:   Assessment  of  Scientific and Technical Information."  OAQPS
     Staff Paper.  U.S. EPA, Research Triangle Park, N.C.  EPA-450/5-82-001,
     January 1982.

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                                    X-2
Chapter V

1.   43 Federal  Register 46246 (October  5,  1978).

2.   47 Federal  Register 49322 (October  29,  1982).

3.   46 Federal  Register 44476 (September 4,  1981).

4.   47 Federal  Register 15076 (April  7,  1982)

5.   BACT/LAER Clearinghouse - A Compilation  of Control Technology
     Determination (May 1982), U.S.  EPA, Control  Programs Development
     Division, Research Triangle Park, N.C.,  May  1982.

6.   45 Federal  Register 52676 (August 7,  1980).

7.   Court of Appeals for the D.C.  Circuit,  No. 79-1112.

8.   47 Federal  Register 27554 (June 25,  1982).

9.   45 Federal  Register 80084 (December 2,  1980).

10.  47 Federal  Register 6624 (February  16,  1982).

11.  47 Federal  Register 5864 (February  8,  1982).

12.  47 Federal  Register  31321 (July 19,  1982).

Chapter VI

1.   47 Federal  Register 16582 (April 16,  1982).

2.   47 Federal  Register 16564 (April 16,  1982).

3.   47 Federal  Register 34137 (August 6,  1982).

4.   47 Federal  Register 47778 (October  27,  1982).

5.   47 Federal  Register 49278 (October  29,  1982).

6.   47 Federal  Register 49606 (November 1,  1982).

7.   47 Federal  Register 50644 (November 8,  1982).

8.   47 Federal  Register 54258 (December 1,  1982).

9.   47 Federal Register 3767  (January 27,  1982).

10.  47 Federal Register 36859  (August 24,  1982).

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                                   X-3
11.   47 Federal  Register  52932  (November 23, 1982).

12.   47 Federal Register.  56118  (December 14, 1982).

13.   47 Federal  Register  26750  (June  21, 1982).

14.   47 Federal  Register  38832  (September 2, 1982).

15.   47 Federal  Register  34342  (August  6, 1982).

16.   47 Federal  Register   32743 (July 29, 1982).

17.   45 Federal  Register  26660  (April 18, 1980).

18.   45 Federal  Register  83448  (December 12, 1980).

19.   45 Federal  Register  83952  (December 19, 1980).

20.   46 Federal  Register  1165 (January  5, 1981).

Chapter VII

1.   Report  of the National  Commission  on Air  Quality.  To Breathe Clean
     Ai_r.  GPO 1981  735-046/1424,  March 1981,  Page  3.8.

Chapter VIII

1.   "Actions to Help the Auto  Industry," White House  release  dated
     April 6, 1981.

2.   47 Federal  Register  54250  (December 1,  1982).

3.   47 Federal  Register  50929  (November 10, 1982).

4.   47 Federal  Register  1642 (January  13,  1982).

5.   47 Federal  Register  b8462  (December 30, 1982).

6.   47 Federal  Register  49322  (October 29,  1982).

7.   48 Federal  Register  4286 (January  31,  1983).

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                                   TECHNICAL REPORT DATA
                            (Please read Instructions on the reverse before completing)
  1EPORT NO.
                                                            3. RECIPIENT'S ACCESSION NO.
4. TITLE AND SUBTITLE

  Progress in  the  Prevention and Control  of
   Air Pollution in  1982
                                                         5. REPORT DATE
                                                          April 1984*
                                                         6. PERFORMING ORGANIZATION CODE
'.XHXXKKK39
                                                           8. PERFORMING ORGANIZATION REPORT NO
         Project  Officer
         Will-Jam  F.  Ham-Ml-nn
      JG ORGANIZATION NAME AND ADDRESS
Office of Air  Quality Planning and  Standards
 Control Programs  Development Division
 Mail Drop  15
 Research Triangle Park,   N.C.  27711
                                                            10. PROGRAM ELEMENT NO.
                                                             JL3A2A
                                                            11. CONTRACT/GRANT NO.
  SPONSORING AGENCY NAME AND ADDRESS

   Environmental Protection Agency
   401 M Street, S.W.
   Washington, D.C.   20460
                                                         13. TYPE OF REPORT AND PERIOD COVERED
                                                           Final 1982
                                                         14. SPONSORING AGENCY CODE
 5. SUPPLEMENTARY NOTES
   Annual Report of  the Administrator of the  Environmental Protection Agency to the
   Congress under Section  313,  202, and 306 of  the Clean Air Act
        The report addresses the progress made  in the prevention and  control of air

   pollution in 1982.   It  covers the areas of air quality trends and  monitoring,

   development of air quality criteria and standards, the status of State Imple-

   mentation Plans, the control of stationary and mobile source emissions, enforce-

   ment,  and litigation.   The report is the annual report of the Administrator of

   EPA to the Congress  in  compliance with Sections 313,  202(b)(4), and  306 of the

   Clean  Air Act, as amended.
                               KEY WORDS AND DOCUMENT ANALYSIS
                 DESCRIPTORS
  Air  Pollution
  Environmental Engineering
  Pollution Abatement
  Pollution Regulations
  Public  Health
                                           b.IDENTIFIERS/OPEN ENDED TERMS Tc~COSATI |- icld/droup
8. DIS
  Release  unlimited.  Available
  through  NTIS
                                           19. SECURITY CLASS (This Report,
                                             Unclassified
                                           2O.~SE~CURITY CLASS (This page)

                                             Unclassified	
21. NO. OF PAGES
       58
22. PRICE
PA Form 2220-1 (Rev. 4-77)   PREVIOUS EDI TION is OBSOLETE
  *Date  of  transmittal to the Congress.

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