83_FR_61576 83 FR 61346 - Clean Air Plans; 2008 8-Hour Ozone Nonattainment Area Requirements; San Joaquin Valley, California

83 FR 61346 - Clean Air Plans; 2008 8-Hour Ozone Nonattainment Area Requirements; San Joaquin Valley, California

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 230 (November 29, 2018)

Page Range61346-61358
FR Document2018-25885

The Environmental Protection Agency (EPA) is proposing to approve portions of two state implementation plan (SIP) revisions submitted by the State of California to meet Clean Air Act (CAA or ``the Act'') requirements for the 2008 8-hour ozone national ambient air quality standards (NAAQS or ``standards'') in the San Joaquin Valley, California, ozone nonattainment area. First, the EPA is proposing to approve the portion of the ``2016 Ozone Plan for the 2008 8-Hour Ozone Standard'' (``2016 Ozone Plan'') that addresses the requirement for a base year emissions inventory. Second, the EPA is proposing to approve the portions of the ``2018 Updates to the California State Implementation Plan'' (``2018 SIP Update'') that address the requirements for a reasonable further progress (RFP) demonstration and motor vehicle emissions budgets (MVEBs) for the San Joaquin Valley for the 2008 ozone standards. Lastly, the EPA is proposing to conditionally approve portions of the 2018 SIP Update that address the requirement for contingency measures for failure to meet RFP milestones or to attain the NAAQS by the applicable attainment date. The proposed approval is conditional because it relies on commitments by the State air agency and regional air district to supplement the contingency measure portion of the 2018 SIP Update with submission of an additional contingency measure within one year of the EPA's final conditional approval.

Federal Register, Volume 83 Issue 230 (Thursday, November 29, 2018)
[Federal Register Volume 83, Number 230 (Thursday, November 29, 2018)]
[Proposed Rules]
[Pages 61346-61358]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-25885]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2018-0535; FRL-9987-11-Region 9]


Clean Air Plans; 2008 8-Hour Ozone Nonattainment Area 
Requirements; San Joaquin Valley, California

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve portions of two state implementation plan (SIP) revisions 
submitted by the State of California to meet Clean Air Act (CAA or 
``the Act'') requirements for the 2008 8-hour ozone national ambient 
air quality standards (NAAQS or ``standards'') in the San Joaquin 
Valley, California, ozone nonattainment area. First, the EPA is 
proposing to approve the portion of the ``2016 Ozone Plan for the 2008 
8-Hour Ozone Standard'' (``2016 Ozone Plan'') that addresses the 
requirement for a base year emissions inventory. Second, the EPA is 
proposing to approve the portions of the ``2018

[[Page 61347]]

Updates to the California State Implementation Plan'' (``2018 SIP 
Update'') that address the requirements for a reasonable further 
progress (RFP) demonstration and motor vehicle emissions budgets 
(MVEBs) for the San Joaquin Valley for the 2008 ozone standards. 
Lastly, the EPA is proposing to conditionally approve portions of the 
2018 SIP Update that address the requirement for contingency measures 
for failure to meet RFP milestones or to attain the NAAQS by the 
applicable attainment date. The proposed approval is conditional 
because it relies on commitments by the State air agency and regional 
air district to supplement the contingency measure portion of the 2018 
SIP Update with submission of an additional contingency measure within 
one year of the EPA's final conditional approval.

DATES: Written comments must arrive on or before December 31, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2018-0535 at https://www.regulations.gov. For comments submitted at 
Regulations.gov, follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or removed from 
Regulations.gov. The EPA may publish any comment received to its public 
docket. Do not submit electronically any information you consider to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Multimedia submissions (audio, 
video, etc.) must be accompanied by a written comment. The written 
comment is considered the official comment and should include 
discussion of all points you wish to make. The EPA will generally not 
consider comments or comment contents located outside of the primary 
submission (i.e., on the web, cloud, or other file sharing system). For 
additional submission methods, please contact the person identified in 
the FOR FURTHER INFORMATION CONTACT section. For the full EPA public 
comment policy, information about CBI or multimedia submissions, and 
general guidance on making effective comments, please visit http://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Laura Lawrence, EPA Region IX, (415) 
972-3407, lawrence.laura@epa.gov.

SUPPLEMENTAL INFORMATION: Throughout this document, ``we,'' ``us'' and 
``our'' refer to the EPA.

Table of Contents

I. Regulatory Context
    A. Ozone Standards, Area Designations and SIPs
    B. The San Joaquin Valley Ozone Nonattainment Area
    C. CAA and Regulatory Requirements for 2008 8-Hour Ozone 
Nonattainment Area SIPs
II. Submissions from the State of California To Address 2008 Ozone 
Requirements in the San Joaquin Valley
    A. Summary of Submissions
    B. Clean Air Act Procedural Requirements for Adoption and 
Submission of SIP Revisions
III. Evaluation of the 2016 Ozone Plan and 2018 SIP Update
    A. Emissions Inventories
    B. Rate of Progress Plan and Reasonable Further Progress 
Demonstration
    C. Motor Vehicle Emissions Budgets for Transportation Conformity
    D. Contingency Measures for Failure To Meet RFP Milestones or To 
Attain the NAAQS by the Applicable Attainment Date
V. Proposed Action
VI. Statutory and Executive Order Reviews

I. Regulatory Context

A. Ozone Standards, Area Designations and SIPs

    Ground-level ozone pollution is formed from the reaction of 
volatile organic compounds (VOC) and oxides of nitrogen 
(NOX) in the presence of sunlight.\1\ These two pollutants, 
referred to as ozone precursors, are emitted by many types of sources, 
including on-and off-road motor vehicles and engines, power plants and 
industrial facilities, and smaller area sources such as lawn and garden 
equipment and paints.
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    \1\ The State of California typically refers to reactive organic 
gases (ROG) in its ozone-related submissions since VOC in general 
can include both reactive and unreactive gases. However, since ROG 
and VOC inventories pertain to common chemical species (e.g., 
benzene, xylene, etc.), we refer to this set of gases as VOC in this 
proposed rule.
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    Scientific evidence indicates that adverse public health effects 
occur following exposure to elevated levels of ozone, particularly in 
children and adults with lung disease. Breathing air containing ozone 
can reduce lung function and inflame airways, which can increase 
respiratory symptoms and aggravate asthma or other lung diseases.\2\
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    \2\ See ``Fact Sheet--2008 Final Revisions to the National 
Ambient Air Quality Standards for Ozone'' dated March 2008.
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    Under section 109 of the CAA, the EPA promulgates NAAQS for 
pervasive air pollutants, such as ozone. The EPA has previously 
promulgated NAAQS for ozone in 1979 and 1997.\3\ In 2008, the EPA 
revised and further strengthened the ozone NAAQS by setting the 
acceptable level of ozone in the ambient air at 0.075 parts per million 
(ppm) averaged over an 8-hour period.\4\ Although the EPA further 
tightened the 8-hour ozone NAAQS to 0.070 ppm in 2015, this action 
relates to the requirements for the 2008 ozone NAAQS.\5\ The State of 
California and the EPA will address the 2015 ozone NAAQS in later 
actions.
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    \3\ The ozone NAAQS promulgated in 1979 was 0.12 parts per 
million (ppm) averaged over a 1-hour period. See 44 FR 8202 
(February 8, 1979). The ozone NAAQS promulgated in 1997 was 0.08 ppm 
averaged over an 8-hour period. See 62 FR 38856 (July 18, 1997).
    \4\ See 73 FR 16436 (March 27, 2008).
    \5\ Information on the 2015 ozone NAAQS is available at 80 FR 
65292 (October 26, 2015).
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    Following promulgation of a new or revised NAAQS, the EPA is 
required under CAA section 107(d) to designate areas throughout the 
country as attaining or not attaining the NAAQS. The EPA classifies 
ozone nonattainment areas under CAA section 181 according to the 
severity of the ozone pollution problem, with classifications ranging 
from Marginal to Extreme. State planning and emissions control 
requirements for ozone are determined, in part, by the nonattainment 
area's classification. The EPA designated the San Joaquin Valley as 
nonattainment for the 2008 ozone standards on May 21, 2012, and 
classified the area as Extreme.\6\
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    \6\ See 77 FR 30088 (May 21, 2012).
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    Under the CAA, after the EPA designates areas as nonattainment for 
a NAAQS, states with nonattainment areas are required to submit SIP 
revisions. For areas classified Moderate and above, these revisions 
must provide for, among other things, attainment of the NAAQS within 
certain prescribed periods that vary depending on the severity of 
nonattainment. Areas classified as Extreme must attain the NAAQS within 
20 years of the effective date of the nonattainment designation.\7\
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    \7\ See CAA section 181(a)(1), 40 CFR 51.1102 and 51.1103(a).
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    In California, the California Air Resources Board (CARB or 
``State'') is the state agency responsible for the adoption and 
submission to the EPA of California SIPs and SIP revisions, and it has 
broad authority to establish emissions standards and other requirements 
for state-wide sources of emissions. Under California law, local and 
regional air pollution control districts in California are responsible 
for the regulation of regional/local sources such as stationary 
sources, and are generally responsible for the development of regional 
air quality plans. In the San Joaquin Valley, the San Joaquin Valley 
Air Pollution Control District (SJVAPCD or ``District'') develops and 
adopts air quality

[[Page 61348]]

management plans to address CAA planning requirements applicable to 
that region. The District then submits such plans to CARB for adoption 
and submission to the EPA as revisions to the California SIP. Such 
revisions do not become part of the applicable SIP for federal purposes 
until approved by the EPA.\8\
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    \8\ See 40 CFR 51.105. For the purposes of the CAA, the 
``applicable plan'' is composed of any portions of the SIP that are 
approved by the EPA together with any provisions promulgated by the 
EPA as substitutes for portions of the SIP disapproved by the EPA. 
40 CFR 52.02(b). Provisions promulgated by the EPA as SIP 
substitutes are referred to as federal implementation plans, or 
FIPs.
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B. The San Joaquin Valley Ozone Nonattainment Area

    The San Joaquin Valley nonattainment area for the 2008 ozone 
standards consists of San Joaquin, Stanislaus, Merced, Madera, Fresno, 
Tulare, and Kings counties, and the western portion of Kern County. The 
San Joaquin Valley nonattainment area stretches over 250 miles from 
north to south, averages a width of 80 miles, and encompasses over 
23,000 square miles. It is partially enclosed by the Coast Mountain 
range to the west, the Tehachapi Mountains to the south, and the Sierra 
Nevada range to the east.\9\
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    \9\ For a precise definition of the boundaries of the San 
Joaquin Valley 2008 ozone nonattainment area, see 40 CFR 81.305.
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    The population of the San Joaquin Valley in 2015 was estimated to 
be nearly 4.2 million people and is projected to increase by 25.3 
percent in 2030 to over 5.2 million people.\10\ Ambient 8-hour ozone 
concentrations in the San Joaquin Valley are above the level of the 
2008 ozone standards. The maximum design value for the area based on 
certified data is 0.092 ppm for the 2015-2017 period, which was 
measured at the Parlier monitor (Air Quality System ID: 06-019-
4001).\11\
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    \10\ The population estimates and projections include all of 
Kern County, not just the portion of Kern County within the 
jurisdiction of the SJVAPCD. See chapter 1 and table 1-1 of the 
District's 2016 Ozone Plan.
    \11\ See Air Quality System (AQS) Design Value Report, 
20180621_DVRpt_SJV_2008-8hrO3_2015-2017.pdf in the docket for this 
proposed action. The AQS is a database containing ambient air 
pollution data collected by the EPA and state, local, and tribal air 
pollution control agencies from over thousands of monitors.
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C. CAA and Regulatory Requirements for 2008 8-Hour Ozone Nonattainment 
Area SIPs

    States must implement the 2008 ozone standards under Title 1, part 
D of the CAA, which includes sections 171-179B of subpart 1 
(``Nonattainment Areas in General'') and sections 181-185 of subpart 2 
(``Additional Provisions for Ozone Nonattainment Areas''). To assist 
states in developing effective plans to address ozone nonattainment 
problems, in 2015 the EPA issued a SIP Requirements Rule (SRR) for the 
2008 ozone standards (``2008 Ozone SRR'') that addressed implementation 
of the 2008 standards, including attainment dates, requirements for 
emissions inventories, attainment and RFP demonstrations, as well as 
the transition from the 1997 ozone standards to the 2008 ozone 
standards and associated anti-backsliding requirements.\12\ The 2008 
Ozone SRR is codified at 40 CFR part 51, subpart AA. We discuss the CAA 
and regulatory requirements for the elements of 2008 ozone plans 
relevant to this proposal in more detail below.
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    \12\ See 80 FR 12264, March 6, 2015.
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    The EPA's 2008 Ozone SRR was challenged, and on February 16, 2018, 
the U.S. Court of Appeals for the D.C. Circuit (``D.C. Circuit'') 
published its decision in South Coast Air Quality Management. District 
v. EPA \13\ (``South Coast II'') \14\ vacating portions of the 2008 
Ozone SRR. The only aspect of the South Coast II decision that affects 
this proposed action is the vacatur of the alternative baseline year 
for RFP plans. More specifically, the 2008 Ozone SRR required states to 
develop the baseline emissions inventory for RFP plans using the 
emissions for the most recent calendar year for which states submit a 
triennial inventory to the EPA under subpart A (``Air Emissions 
Reporting Requirements'') of 40 CFR part 51, which was 2011. However, 
the 2008 Ozone SRR allowed states to use an alternative year, between 
2008 and 2012, for the baseline emissions inventory provided that the 
state demonstrated why the alternative baseline year was appropriate. 
The baseline emissions inventory for the RFP demonstration for the 2016 
Ozone Plan was based on an alternative year of 2012 rather than 2011. 
In the South Coast II decision, the D.C. Circuit vacated the provisions 
of the 2008 Ozone SRR that allowed states to use an alternative 
baseline year for demonstrating RFP.
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    \13\ South Coast Air Quality Management District v. EPA, 882 
F.3d 1138 (D.C. Cir. 2018) (``South Coast II'').
    \14\ The term ``South Coast II'' is used in reference to the 
2018 court decision to distinguish it from a decision published in 
2006 also referred to as ``South Coast.'' The earlier decision 
involved a challenge to the EPA's Phase 1 implementation rule for 
the 1997 ozone standard. South Coast Air Quality Management Dist. v. 
EPA, 472 F.3d 882 (D.C. Cir. 2006).
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II. Submissions From the State of California To Address 2008 Ozone 
Requirements in the San Joaquin Valley

A. Summary of Submissions

    On August 24, 2016, in response to the EPA's designation of the 
area as nonattainment and classification of the area as Extreme for the 
2008 ozone NAAQS, CARB submitted the 2016 Ozone Plan to the EPA as a 
revision to the California SIP.\15\ Prior to submission to the EPA, 
CARB approved the 2016 Ozone Plan, which had previously been adopted by 
the District and forwarded to CARB for approval and submission to the 
EPA.
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    \15\ See letter from Richard Corey, Executive Officer, CARB, to 
Alexis Strauss, Acting Regional Administrator, EPA Region IX, dated 
August 24, 2016.
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    The 2016 Ozone Plan submission consists of documents originating 
from the District (e.g., the 2016 Ozone Plan with Appendices and the 
District Governing Board Resolution) and CARB (e.g., the CARB Staff 
Report and Appendices, and the CARB Resolution adopting the 2016 Ozone 
Plan and CARB Staff Report as a SIP revision).\16\ The 2016 Ozone Plan 
addresses the requirements for base year and projected future year 
emissions inventories, air quality modeling demonstrating attainment of 
the 2008 ozone NAAQS by the applicable attainment year, provisions 
demonstrating implementation of reasonably available control measures 
(RACM), provisions for advanced technology/clean fuels for boilers, 
provisions for transportation control strategies and measures, a 
demonstration of RFP, motor vehicle emissions budgets, and contingency 
measures for failure to make RFP or attain, among other requirements. 
On August 31, 2018, the EPA proposed approval of the attainment 
demonstration portion of the 2016 Ozone Plan and associated attainment 
year motor vehicle emission budgets, the RACM demonstration, provisions 
for advanced technology/clean fuels for boilers, and provisions for 
transportation control strategies and measures.\17\
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    \16\ See four enclosures to the August 24, 2016 letter from CARB 
to EPA Region 9: (I) District Submission, including letter from 
Sheraz Gill, Director of Strategies and Incentives for the District, 
to Richard Corey, Executive Officer, CARB, and five appendices 
titled: (1) ARB SIP Completeness Checklist, (2) 2016 Ozone Plan with 
Appendices, (3) Governing Board Resolution Adopting the 2016 Ozone 
Plan, (4) Governing Board Memo, and (5) Evidence of Public Hearing; 
(II) CARB Evidence of Public Notice and Transcript; (III) CARB Staff 
Report; (IV) CARB Resolution 16-8 adopting the 2016 Ozone Plan and 
CARB Staff Report.
    \17\ 83 FR 44528 (August 31, 2018).

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[[Page 61349]]

    In response to the court's decision in South Coast II vacating the 
2008 Ozone SRR with respect to the use of an alternate baseline year 
for demonstrating RFP, California developed the 2018 SIP Update, which 
includes an RFP demonstration for the San Joaquin Valley for the 2008 
ozone NAAQS using the required 2011 baseline year. The 2018 SIP Update 
also includes updated motor vehicle emission budgets and a contingency 
measure for failure to meet an RFP milestone or attain the NAAQS by the 
applicable attainment date. CARB released a draft of the 2018 SIP 
Update for public review on September 21, 2018. On October 3, 2018, 
CARB requested that the EPA accept the draft 2018 SIP Update for 
parallel processing with respect to the portions of the 2018 SIP Update 
that apply to the San Joaquin Valley area.\18\ Under the EPA's parallel 
processing procedure, the EPA may propose action on a public draft 
version of a SIP revision but will take final action only after the 
state adopts and submits the final version to the EPA for approval.\19\ 
If there are no significant changes from the draft version of the SIP 
revision to the final version, the EPA may elect to take final action 
on the proposal. In this case, on October 25, 2018, CARB has adopted 
the 2018 SIP Update previously released for public review, without 
significant modifications, as a revision to the California SIP. The 
only change of note between the draft and final versions is a menu of 
specific contingency measure actions that the CARB Board included in 
the resolution (Resolution 18-50) adopting the 2018 SIP Update. CARB 
has not yet submitted the final version of the SIP revision to the EPA, 
and thus we are proposing action based on the draft version of the 2018 
SIP Update submitted to us on October 3, 2018, and the contents of CARB 
Resolution 18-50.
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    \18\ Letter from Richard Corey, CARB Executive Officer, to 
Michael Stoker, EPA Region IX Regional Administrator, dated October 
3, 2018.
    \19\ See 40 CFR part 51, appendix V.
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    In addition to these submissions, CARB sent additional technical 
information in two technical supplements on October 17, 2018,\20\ and 
October 19, 2018.\21\ Further, on October 30, 2018, CARB forwarded a 
letter of commitment to the EPA from the District dated October 18, 
2018, in which the District commits to revise its architectural 
coatings rule to create an additional contingency measure that will be 
triggered if the area fails to meet RFP or to attain by the applicable 
attainment date.\22 23\ In the October 30, 2018 letter, CARB commits to 
submit the revised District rule to the EPA as a SIP revision within 12 
months of the final action on the 2016 Ozone Plan and relevant portions 
of the 2018 SIP Update.
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    \20\ Email from Sylvia Vanderspek, Chief, CARB Air Quality 
Planning Branch, to Anita Lee, Chief, EPA Region IX Air Planning 
Office, dated October 17, 2018.
    \21\ Email from Sylvia Vanderspek, Chief, CARB Air Quality 
Planning Branch, to Anita Lee, Chief, EPA Region IX Air Planning 
Office, dated October 19, 2018.
    \22\ Letter from Dr. Michael Benjamin, Chief, Air Quality 
Planning and Science Division, CARB, to Mike Stoker, EPA Region IX 
Regional Administrator, dated October 30, 2018.
    \23\ Letter from Sheraz Gill, SJVAPCD Deputy Air Pollution 
Control Officer, to Richard Corey, CARB Executive Officer, and to 
Michael Stoker, EPA Region IX Regional Administrator, dated October 
18, 2018.
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B. Clean Air Act Procedural Requirements for Adoption and Submission of 
SIP Revisions

    CAA sections 110(a)(1) and (2) and 110(l) require a state to 
provide reasonable public notice and opportunity for public hearing 
prior to the adoption and submission of a SIP or SIP revision. To meet 
these procedural requirements, every SIP submission should include 
evidence that the state provided adequate public notice and an 
opportunity for a public hearing consistent with the EPA's implementing 
regulations in 40 CFR 51.102.
    The San Joaquin Valley District Board adopted the 2016 Ozone Plan 
on June 16, 2016, following a public hearing. CARB adopted the 2016 
Ozone Plan as a revision to the California SIP on July 21, 2016, 
following a public hearing. Both the District and CARB have satisfied 
the applicable statutory and regulatory requirements for reasonable 
public notice and hearing prior to the adoption and submission of the 
2016 Ozone Plan. Therefore, we find that the submission of the 2016 
Ozone Plan meets the procedural requirements for public notice and 
hearing in CAA sections 110(a) and 110(l) and 40 CFR 51.102.
    CARB published the 2018 SIP Update for public review on September 
21, 2018, and adopted the document as a revision to the California SIP 
following a public hearing on October 25, 2018. As noted above, CARB 
has not yet submitted the final version of the 2018 SIP Update to the 
EPA, but we expect to find that CARB has satisfied the applicable 
statutory and regulatory requirements for reasonable public notice and 
hearing prior to the adoption of the 2018 SIP Update. Therefore, once 
we receive the final version, we expect to conclude that the submission 
of the 2018 SIP Update also meets the procedural requirements for 
public notice and hearing in CAA sections 110(a) and 110(l) and 40 CFR 
51.102.

III. Evaluation of the 2016 Ozone Plan and 2018 SIP Update

A. Emissions Inventories

1. Statutory and Regulatory Requirements
    CAA section 172(c)(3) requires that each nonattainment plan SIP 
submission include a ``comprehensive, accurate, current inventory of 
actual emissions from all sources of the relevant pollutant or 
pollutants in [the] area.'' The accounting required by this section 
provides a ``base year'' inventory that serves as the starting point 
for attainment demonstration air quality modeling, for assessing RFP, 
and for determining the need for additional SIP control measures. EPA 
regulations require that the inventory year be consistent with the 
baseline year for the RFP demonstration, which is the most recent 
calendar year for which a complete triennial inventory is required to 
be submitted to the EPA under the Air Emissions Reporting 
Requirements.\24\
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    \24\ See 2008 Ozone SRR at 40 CFR 51.1115(a) and the Air 
Emissions Reporting Requirements at 40 CFR part 51 subpart A.
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    Future baseline emissions inventories must reflect the most recent 
population, employment, travel and congestion estimates for the 
area.\25\ Future baseline emissions inventories are necessary to show 
the projected effectiveness of SIP control measures. Both the base year 
and future year inventories are necessary for photochemical modeling to 
demonstrate attainment.
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    \25\ See Emissions Inventory Guidance for Implementation of 
Ozone and Particulate Matter National Ambient Air Quality Standards 
(NAAQS) and Regional Haze Regulations, EPA-454/B-17-003, July 2017, 
chapter 5, Developing Projected Emissions Inventories, pages 113-
129.
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    The EPA has issued guidance on the development of base year and 
future year emissions inventories for ozone and other pollutants.\26\ 
Emissions inventories for ozone must include emissions of VOC and 
NOX and represent emissions for a typical ozone

[[Page 61350]]

season weekday.\27\ States should include documentation explaining how 
it calculated emissions data. In estimating mobile source emissions, 
states should use the latest emissions models and planning assumptions 
available at the time it develops the SIP submission.\28\
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    \26\ See ``Emissions Inventory Guidance for Implementation of 
Ozone and Particulate Matter National Ambient Air Quality Standards 
(NAAQS) and Regional Haze Regulations,'' (``EI Guidance''), EPA-454/
B-17-002, May 2017. At the time the 2016 Ozone Plan was developed, 
the following EPA emissions inventory guidance applied: ``Emissions 
Inventory Guidance for Implementation of Ozone and Particulate 
Matter National Ambient Air Quality Standards (NAAQS) and Regional 
Haze Regulations'' (``EI Guidance''), EPA-454-R-05-001, November 
2005.
    \27\ 40 CFR 51.1115(a) and (c), and 40 CFR 51.1100(bb) and (cc).
    \28\ See 80 FR 12264, at 12290 (March 6, 2015).
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2. Summary of the State's Submissions
    The 2016 Ozone Plan includes a 2012 base year emissions inventory 
based on actual emissions, to meet the requirements of CAA sections 
172(c)(3) and 182(a)(1). The 2018 SIP Update does not include a new 
base year emissions inventory with actual emissions; rather, for 
purposes of updating the RFP demonstration, the transportation 
conformity motor vehicle emission budgets, and the contingency measure 
calculations, CARB used the 2012 base year inventory from the 2016 
Ozone Plan to create new emissions inventory projections for the 2011 
RFP baseline year and for RFP milestone years. These new projections 
are included in the 2018 SIP Update. CARB also submitted a ``San 
Joaquin Valley Emission Projection Technical Clarification'' to clarify 
how it calculated the projected inventories in this submission.\29\ The 
EPA has evaluated the 2012 base year inventory from the 2016 Ozone Plan 
to determine whether it meets the requirements for a base year 
inventory in CAA sections 172(c)(3) and 182(a)(1), and the projected 
inventories included in the 2018 SIP Update to determine whether they 
are appropriate for use in the updated RFP demonstration and other 
purposes (e.g., establishing revised motor vehicle emissions budgets). 
A summary of these submissions, and the results of our evaluation, are 
discussed below.
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    \29\ Email from Stephanie Huber, Manager, CARB Emission 
Inventory Development Section to Larry Biland, EPA Region IX Air 
Quality Analysis Office, dated October 17, 2018, transmitting ``San 
Joaquin Valley Emission Projections Technical Clarification.''
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a. 2016 Ozone Plan
    The 2016 Ozone Plan includes a 2012 base year emissions inventory 
for the San Joaquin Valley nonattainment area, based on actual 
emissions, to fulfill the requirements in CAA sections 172(c)(3) and 
182(a)(1). The inventory includes VOC and NOX emissions, 
because these pollutants are precursors to ozone formation, across all 
source categories during an ozone season day as defined in 40 CFR 
51.1100(cc). The 2016 Ozone Plan has identified the summer, defined as 
May through October, as the time when the highest concentration of 
ozone is formed.
    A description of base year emissions inventory development can be 
found in the 2016 Ozone Plan, chapter 3.11 through 3.11.2. The complete 
emissions inventory and documentation are found in Appendix B 
(``Emissions Inventory'').
    VOC and NOX emissions are grouped into two general 
categories: stationary sources and mobile sources. Stationary sources 
are further divided into ``point'' and ``area'' sources. Point sources 
typically refer to permitted facilities that have one or more 
identified and fixed pieces of equipment and emissions points. 
Permitted facilities were required to report their actual emissions to 
the District by the facility operators through the calendar year 2012. 
Stationary area sources are many smaller point sources, and include 
sources that have internal combustion engines, and gasoline dispensing 
facilities (gas stations). These sources are not inventoried 
individually; their emissions are estimated as a group and reported as 
a single source category.
    Area sources consist of widespread and numerous smaller emission 
sources, such as small permitted facilities and households.
    The mobile sources category can be divided into two major 
subcategories: ``on-road'' and ``off-road'' mobile sources. On-road 
mobile sources include light-duty automobiles, light-, medium-, and 
heavy-duty trucks, and motorcycles. Off-road mobile sources include 
aircraft, locomotives, construction equipment, mobile equipment, and 
recreational vehicles.
    The emissions inventories for the San Joaquin Valley 2008 ozone 
nonattainment area in the 2016 Ozone Plan were developed jointly by 
CARB and the District. Data were provided by CARB, the California 
Department of Transportation, the Department of Motor Vehicles, the 
Department of Pesticide regulation, the California Energy Commission 
and regional transportation agencies to develop mobile and area-wide 
source emission estimates. The emission estimates reflect reported 
emissions for point sources, whereas estimates for mobile and area 
sources are based on projections obtained through use of emissions 
models and methodologies along with actual activity data for 2012 
(e.g., vehicle miles traveled). The District utilizes different 
methodologies to estimate over sixty different types of individual 
stationary area sources. CARB and the District also reviewed the growth 
profiles for point and areawide source categories and updated them as 
necessary to ensure that the emission projections were based on data 
that reflect historical trends, current conditions, and recent economic 
and demographic forecasts.
    CARB provided emission estimates for stationary nonagricultural 
diesel engines, agricultural irrigation pumps, laundering (dry 
cleaning), degreasing (solvents), oil and gas production, and gasoline 
dispensing facilities.
    Area sources are categories such as consumer products, pesticides/
fertilizers, fireplaces, farming operations, and other emissions which 
occur over a wide geographic area. Emissions for these categories were 
estimated by both CARB and the District using various models and 
methodologies.
    CARB developed the emissions inventory for mobile sources, both on-
road and off-road. CARB estimated on-road mobile sources emissions, 
which include passenger vehicles, buses, and trucks, using CARB's 
EMFAC2014 model.\30\ CARB calculated the on-road emissions by applying 
EMFAC2014 emission factors to the transportation activity data provided 
by the local San Joaquin Valley transportation agencies from their 2014 
adopted Regional Transportation Plan. CARB estimated off-road mobile 
sources emissions using either newer category-specific models or, where 
a new model was not available, the OFFROAD2007 model.
---------------------------------------------------------------------------

    \30\ The EPA approved EMFAC2014 for use in SIP development and 
transportation conformity in California at 80 FR 77337 (December 14, 
2015). EMFAC2014 is the most recently-approved model for California 
for these uses.
---------------------------------------------------------------------------

    Table 1 provides a summary, by major source categories, for the 
2012 base year VOC and NOX emissions inventories in tons per 
day (tpd) for the San Joaquin Valley 2008 ozone nonattainment area, as 
presented in the 2016 Ozone Plan. In the 2012 inventory presented in 
the 2016 Ozone Plan, mobile sources account for approximately 85 
percent of NOX emissions and 32 percent of VOC emissions in 
the San Joaquin Valley, and total area sources account for 
approximately 1.3 percent of NOX emissions and 50 percent of 
VOC emissions.

[[Page 61351]]



   Table 1--Base Year Summer Average VOC and NOX Emissions in the 2016
                               Ozone Plan
                            [In tons per day]
------------------------------------------------------------------------
                                                       2012
             Source category             -------------------------------
                                             VOC (tpd)       NOX (tpd)
------------------------------------------------------------------------
Stationary Sources......................            85.3            42.4
Area Sources............................           147.0             4.7
Mobile Sources..........................           105.0           292.4
San Joaquin Valley Total................           337.3           339.6
------------------------------------------------------------------------
Source: Tables B-1 and B-2 of the 2016 Ozone Plan.

b. 2018 SIP Update
    In response to the South Coast II decision, CARB developed the 2018 
SIP Update, which updates the RFP demonstration and related SIP 
elements to rely on a 2011 baseline year. The 2018 SIP Update does not 
include a new base year emissions inventory with actual emissions for 
the San Joaquin Valley 2008 ozone nonattainment area to meet the 
requirements of 172(c)(3) and 182(a)(1). Rather, for purposes of the 
RFP demonstration, CARB used the 2012 base year inventory from the 2016 
Ozone Plan to develop new emissions inventory projections for the 2011 
RFP baseline year and for all RFP milestone years. These inventories 
form the basis of the RFP demonstration calculations, the motor vehicle 
emissions budgets, and the contingency measure calculations for the San 
Joaquin Valley 2008 ozone nonattainment area, which will be discussed 
in sections III.B, III.C, and III.D below. In this section, we describe 
and evaluate these updated inventory projections to determine whether 
they are appropriate for use in these SIP elements.
    As in the 2016 Ozone Plan, the projected inventories in the 2018 
SIP Update include NOX and VOC emissions and are for the 
summer season defined as May through October. Details on the emissions 
inventory, documentation, and a complete listing of emissions can be 
found on pages 51 through 54 and Appendix A, pages A-27 through A-30 of 
the 2018 SIP Update. Additional emissions inventory information can be 
found in the ``San Joaquin Valley Emission Projections Technical 
Clarification'' document which explains the changes made in the 
methodologies used in emissions inventory development. This document is 
contained in the docket for this rulemaking.
    The State and District developed point and stationary source VOC 
and NOX emissions for the 2011 inventory from actual 
emissions, generally using the same methodologies used in the 2016 
Ozone Plan. Stationary aggregate emissions and area source emissions 
for 2011 were backcast, and for future years were forecast, from the 
2012 base year inventory. Mobile sources used the same model, 
EMFAC2014, as in the 2016 Ozone Plan. While the 2016 Ozone Plan used 
California Emissions Projections and Analysis Model (CEPAM) version 
1.03 to project future year emissions, the 2018 SIP Update used CEPAM 
version 1.05. CEPAM 1.05 includes updates to methodologies for 
stationary and area sources in the following source categories: 
pesticides, cleaning and surface coatings, waste disposal, composting 
facilities, glass manufacturing, services and commercial/residential 
fuel combustion-space heating, and petroleum marketing. CARB used 
current information to update emissions from locomotives. For the rest 
of the source categories in the emissions inventory, CARB used the same 
methodologies as in the 2016 Ozone Plan.
    Tables 2 and 3 provide summaries, by major source categories, for 
VOC and NOX emissions inventories for RFP baseline and 
milestone years. These emissions are for the San Joaquin Valley 2008 
ozone nonattainment area as presented in the Appendix A, pages A-27 
through A-30 of the 2018 SIP Update.

                                              Table 2--Summer Average VOC Emissions in the 2018 SIP Update
                                                                    [In tons per day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Source category                         2011        2017        2020        2023        2026        2029        2031        2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        VOC (tpd)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Stationary Sources......................................       83.36       89.55       91.70       94.54       97.86      101.58      104.22      105.62
Area Sources............................................      180.76      148.50      149.80      151.14      152.56      154.00      154.98      155.49
Mobile Sources..........................................      114.56       72.52       62.27       54.55       49.88       46.31       43.72       42.87
    San Joaquin Valley Total............................      378.68      310.58      303.77      300.22      300.30      301.89      302.93      303.98
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Pages A-27 and A-28 of the 2018 SIP Update.


                                              Table 3--Summer Average NOX Emissions in the 2018 SIP Update
                                                                    [In tons per day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Source Category                         2011        2017        2020        2023        2026        2029        2031        2032
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        NO (tpd)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Stationary Sources......................................       43.05       30.72       29.95       29.29       28.59       28.10       27.85       27.86
Area Sources............................................        6.84        4.68        4.59        4.43        4.29        4.21        4.15        4.11
Mobile Sources..........................................      325.70      208.01      173.40      124.73      110.12       98.81       93.04       90.92

[[Page 61352]]

 
San Joaquin Valley Total................................      375.58      238.41      207.94      158.44      143.01      131.12      125.03      122.89
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source--Pages A-29 and A-30 of the 2018 SIP Update.

    With respect to future year projections, the EPA will approve a 
state plan that takes emissions reduction credit for a control measure 
only where the EPA has approved the measure as part of the SIP. Thus, 
to take credit for the emissions reductions from newly-adopted or 
amended District rules for stationary sources, the related rules must 
be approved by the EPA into the SIP. Table 1 in the technical support 
document (TSD) accompanying this rulemaking shows District rules that 
were incorporated in the future year inventories, along with 
information on EPA approval of these rules. In recent years, the EPA 
has taken action to approve CARB mobile source regulations into the 
California SIP.\31\ Inventories in the 2018 SIP Update include these 
controls in their projections.
---------------------------------------------------------------------------

    \31\ See 81 FR 39424 (June 16, 2016), 82 FR 14446 (March 21, 
2017), and 83 FR 23232 (May 18, 2018).
---------------------------------------------------------------------------

3. The EPA's Review of the State's Submission
    We have reviewed the base year emissions inventory in the 2016 
Ozone Plan and the RFP baseline and milestone year inventories in the 
2018 SIP Update for the San Joaquin Valley 2008 ozone nonattainment 
area for consistency with CAA requirements and EPA guidance. First, as 
required by EPA regulation, we note that the inventories include 
estimates for VOC and NOX for a typical ozone season 
weekday, and that CARB has provided adequate documentation explaining 
how the emissions are calculated. Second, we find that the 2012 base 
year emissions inventory in the 2016 Ozone Plan reflects appropriate 
emissions models and methodologies, and, therefore, represents a 
comprehensive, accurate, and current inventory of actual emissions 
during that year in the San Joaquin Valley nonattainment area. Further, 
we find that CARB and the District have used the most recent planning 
and activity assumptions, emissions models, and methodologies in 
developing the RFP baseline and milestone year emissions inventories in 
the 2018 SIP Update.
    Therefore, the EPA is proposing to approve the 2012 emissions 
inventory as meeting the requirements for a base year inventory set 
forth in CAA section 182(a)(1) and 40 CFR 51.1115. Regarding the 
requirement in the 2008 Ozone SRR that the base year inventory be 
consistent with the baseline year for the RFP demonstration, we note 
that 2012 is the year of the base year inventory, while the RFP 
demonstration is based on a 2011 baseline year. However, as noted 
above, the 2011 emissions inventory is backcast from the 2012 base year 
inventory, and therefore is based on the same data. Therefore, we find 
that selection of 2012 as the base year for the emissions inventory is 
consistent with the 2011 baseline year for the RFP demonstration for 
this nonattainment area as required by 40 CFR 51.1115(a).
    The 2018 SIP Update starts with 2011 as the baseline year and shows 
future baseline emissions inventories out to 2032. The EPA is proposing 
to find these inventories appropriate for use in developing the RFP 
demonstration (section III.B below), motor vehicle emissions budgets 
(section III.C below), and the contingency measure element for the San 
Joaquin Valley for the 2008 ozone standards (section III.D below).\32\
---------------------------------------------------------------------------

    \32\ We previously determined that the 2012 base year emission 
inventory and future year emissions inventories that are derived 
therefrom in the 2016 Ozone Plan provide an acceptable basis for the 
attainment demonstration and VMT offset demonstration in the 2016 
Ozone Plan. See 83 FR 44528, at 44532/column 1. (August 31, 2018).
---------------------------------------------------------------------------

B. Rate of Progress Plan and Reasonable Further Progress Demonstration

1. Statutory and Regulatory Requirements
    Requirements for RFP for ozone nonattainment areas are specified in 
CAA sections 172(c)(2), 182(b)(1), and 182(c)(2)(B). CAA section 
172(c)(2) requires that plans for nonattainment areas provide for RFP, 
which is defined as such annual incremental reductions in emissions of 
the relevant air pollutant as are required under part D (``Plan 
Requirements for Nonattainment Areas'') or may reasonably be required 
by the EPA for the purpose of ensuring attainment of the applicable 
NAAQS by the applicable date. CAA section 182(b)(1) specifically 
requires that ozone nonattainment areas that are classified as Moderate 
or above demonstrate a 15 percent reduction in VOC between the years of 
1990 and 1996. The EPA has typically referred to section 182(b)(1) as 
the Rate of Progress (ROP) requirement. For ozone nonattainment areas 
classified as Serious or higher, section 182(c)(2)(B) requires 
reductions averaged over each consecutive 3-year period, beginning 6 
years after the baseline year until the attainment date, of at least 3 
percent of baseline emissions per year. The provisions in CAA section 
182(c)(2)(B)(ii) allow an amount less than 3 percent of such baseline 
emissions each year if the state demonstrates to the EPA that the plan 
includes all measures that can feasibly be implemented in the area in 
light of technological achievability.
    In the 2008 Ozone SRR, the EPA provided that areas classified 
Moderate or higher will have met the ROP requirements of CAA section 
182(b)(1) if the area has a fully approved 15 percent ROP plan for the 
1-hour or 1997 8-hour ozone standards, provided the boundaries of the 
ozone nonattainment areas are the same.\33\ For such areas, the EPA 
interprets the RFP requirements of CAA section 172(c)(2) to require 
areas classified as Moderate to provide a 15 percent emission reduction 
of ozone precursors within 6 years of the baseline year. Areas 
classified as Serious or higher must meet the RFP requirements of CAA 
section 182(c)(2)(B) by providing an 18 percent reduction of ozone 
precursors in the first 6-year period, and an average ozone precursor 
emission reduction of 3 percent per year for all remaining 3-year 
periods thereafter.\34\ Under the CAA 172(c)(2) and CAA 182(c)(2)(B) 
RFP requirements, the state may substitute NOX emissions 
reductions for VOC reductions.\35\
---------------------------------------------------------------------------

    \33\ See 70 FR 12264 at 12271 (March 6, 2015). In our August 31, 
2018 proposed action on certain portions of the 2016 Ozone Plan, we 
proposed to approve the ROP demonstration as meeting the 
requirements of CAA section 182(b)(1) based on the previous approval 
by the EPA of the 15 percent ROP demonstration for the San Joaquin 
Valley for the 1-hour ozone NAAQS. See 83 FR 44528, at 44539 (August 
31, 2018). Therefore, we do not further address the ROP 
demonstration requirement in this document.
    \34\ Id.
    \35\ See 40 CFR 51.1110(a)(2)(i)(C) and 40 CFR 
51.1110(a)(2)(ii)(B); and 70 FR 12264 at 12271 (March 6, 2015).

---------------------------------------------------------------------------

[[Page 61353]]

    Except as specifically provided in CAA section 182(b)(1)(C), 
emissions reductions from all SIP-approved, federally promulgated, or 
otherwise SIP-creditable measures that occur after the baseline year 
are creditable for purposes of demonstrating that the RFP targets are 
met. Because the EPA has determined that the passage of time has caused 
the effect of certain exclusions to be de minimis, the RFP 
demonstration is no longer required to calculate and specifically 
exclude reductions from measures related to motor vehicle exhaust or 
evaporative emissions promulgated by January 1, 1990; regulations 
concerning Reid vapor pressure promulgated by November 15, 1990; 
measures to correct previous RACT requirements; and, measures required 
to correct previous inspection and maintenance (I/M) programs.\36\
---------------------------------------------------------------------------

    \36\ See 40 CFR 51.1110(a)(7).
---------------------------------------------------------------------------

    The 2008 Ozone SRR requires the RFP baseline year to be the most 
recent calendar year for which a complete triennial inventory was 
required to be submitted to the EPA. For the purposes of developing RFP 
demonstrations for the 2008 ozone standards, the applicable triennial 
inventory year is 2011. As discussed previously, the 2008 Ozone SRR 
provided states with the opportunity to use an alternative baseline 
year for RFP but that particular aspect of the 2008 Ozone SRR was 
vacated by the D.C. Circuit in the South Coast II decision.\37\
---------------------------------------------------------------------------

    \37\ See 40 CFR 51.1110(b).
---------------------------------------------------------------------------

2. Summary of the State's Submission
    The 2018 SIP Update replaces the RFP portion of the 2016 Ozone Plan 
and includes updated emissions estimates for the baseline, milestone 
and attainment years, and an updated RFP demonstration relying on a 
2011 baseline year.\38\ The updated RFP demonstration is shown in table 
4 below:
---------------------------------------------------------------------------

    \38\ See the Reasonable Further Progress demonstration, section 
VIII-B, beginning on page 52.

                                        Table 4--Reasonable Further Progress Demonstration in the 2018 SIP Update
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             VOC (tpd)
                                         ---------------------------------------------------------------------------------------------------------------
                                               2011            2017            2020            2023            2026            2029            2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline VOC............................           378.7           310.6           303.8           300.2           300.3           301.9           302.9
Transportation Conformity Safety Margin.               0               0               0               0               0               0               0
Baseline VOC + Safety Margin............           378.7           310.6           303.8           300.2           300.3           301.9           302.9
Required % change since 2011 (VOC or      ..............             18%             27%             36%             45%             54%             60%
 NOX)...................................
Required tpd reductions since 2011......  ..............            68.2           102.2           136.3           170.4           204.5           227.2
Target VOC Level........................  ..............           310.5           276.4           242.4           208.3           174.2           151.5
Apparent Shortfall (-)/Surplus (+) in     ..............            -0.1           -27.3           -57.9           -92.0          -127.7          -151.5
 VOC....................................
Apparent Shortfall (-)/Surplus (+) in     ..............              0%           -7.2%          -15.3%          -24.3%          -33.7%          -40.0%
 VOC, %.................................
VOC Shortfall previously provided by NOX  ..............              0%              0%            7.2%           15.3%           24.3%           33.7%
 Substitution, %........................
Actual VOC shortfall (-)/surplus (+), %.  ..............              0%           -7.2%           -8.1%           -9.0%           -9.4%           -6.3%
--------------------------------------------------------------------------------------------------------------------------------------------------------


 
                                                                                             NOX (tpd)
                                         ---------------------------------------------------------------------------------------------------------------
                                               2011            2017            2020            2023            2026            2029            2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Baseline NOX............................           375.6           238.4           207.9           158.4           143.0           131.1           125.0
Transportation Conformity Safety Margin.             0.0             0.0             0.0             2.5             5.3             7.1             8.0
Baseline NOX + Safety Margin............           375.6           238.4           207.9           160.9           148.3           138.2           133.1
Change in NOX since 2011, tpd...........  ..............           137.2           167.7           214.7           227.3           237.4           242.5
Change in NOX since 2011, %.............  ..............           36.5%           44.6%           57.2%           60.5%           63.2%           64.6%
NOX reductions used for VOC substitution  ..............              0%              0%            7.2%           15.3%           24.3%           33.7%
 through last milestone year, %.........
NOX reductions since 2011 available for   ..............           36.5%           44.6%           49.9%           45.2%           38.9%           30.8%
 VOC substitution in this milestone
 year, %................................
NOX reductions since 2011 used for VOC    ..............              0%            7.2%            8.1%            9.0%            9.4%            6.3%
 substitution in this milestone year, %.
NOX reductions since 2011 surplus after   ..............           36.5%           37.4%           41.9%           36.2%           29.5%           24.6%
 meeting VOC substitution needs in this
 milestone year, %......................
    Total shortfall for RFP.............  ..............              0%              0%              0%              0%              0%              0%
RFP Met?................................  ..............             YES             YES             YES             YES             YES             YES
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Table VIII-2 of the 2018 SIP Update.

    The updated RFP demonstration calculates future year VOC targets 
from the 2011 baseline, consistent with CAA 182(c)(2)(B)(i), which 
requires reductions of ``at least 3 percent of baseline emissions each 
year.'' The updated RFP demonstration in the 2018 SIP Update 
substitutes NOX reductions for VOC reductions \39\ beginning 
in milestone year 2020 to meet VOC emission targets. For the San 
Joaquin Valley nonattainment area, CARB concludes that the RFP 
demonstration meets the applicable requirements for each milestone year 
as well as the attainment year.
---------------------------------------------------------------------------

    \39\ NOX substitution is permitted under EPA 
regulations. See 40 CFR 51.1110(a)(2)(i)(C) and 40 CFR 
51.1110(a)(2)(ii)(B); and 70 FR 12264 at 12271 (March 6, 2015).
---------------------------------------------------------------------------

3. The EPA's Review of the State's Submission
    As discussed in section III.A above, we are proposing to find that 
the baseline and RFP milestone year emissions inventories are 
acceptable for use in the RFP demonstration. We have reviewed the 
calculations in table VIII-2 of the 2018 SIP Update and presented in 
table 4 above, and find that the State has used an appropriate 
calculation method to demonstrate RFP. For these reasons, we have 
determined that the State has demonstrated RFP in each milestone year 
and the attainment year, consistent with applicable CAA requirements 
and EPA guidance. We therefore propose to approve the RFP 
demonstrations under sections

[[Page 61354]]

172(c)(2), 182(b)(1) and 182(c)(2)(B) of the CAA and 40 CFR 
51.1110(a)(2)(ii).

C. Motor Vehicle Emissions Budgets for Transportation Conformity

1. Statutory and Regulatory Requirements
    Section 176(c) of the CAA requires federal actions in nonattainment 
and maintenance areas to conform to the SIP's goals of eliminating or 
reducing the severity and number of violations of the NAAQS and 
achieving timely attainment of the standards. Conformity to the SIP's 
goals means that such actions will not: (1) Cause or contribute to 
violations of a NAAQS, (2) worsen the severity of an existing 
violation, or (3) delay timely attainment of any NAAQS or any interim 
milestone.
    Actions involving Federal Highway Administration (FHWA) or Federal 
Transit Administration (FTA) funding or approval are subject to the 
EPA's transportation conformity rule, codified at 40 CFR part 93, 
subpart A. Under this rule, MPOs in nonattainment and maintenance areas 
coordinate with state and local air quality and transportation 
agencies, the EPA, the FHWA, and the FTA to demonstrate that an area's 
regional transportation plans and transportation improvement programs 
conform to the applicable SIP. This demonstration is typically done by 
showing that estimated emissions from existing and planned highway and 
transit systems are less than or equal to the motor vehicle emissions 
budgets (MVEBs or ``budgets'') contained in all control strategy SIPs. 
Budgets are generally established for specific years and specific 
pollutants or precursors. Ozone plans should identify budgets for on-
road emissions of ozone precursors (NOX and VOC) in the area 
for each RFP milestone year and the attainment year, if the plan 
demonstrates attainment.\40\
---------------------------------------------------------------------------

    \40\ See 40 CFR 93.102(b)(2)(i).
---------------------------------------------------------------------------

    For budgets to be approvable, they must meet, at a minimum, the 
EPA's adequacy criteria (40 CFR 93.118(e)(4)). To meet these 
requirements, the budgets must be consistent with the attainment and 
RFP requirements and reflect all of the motor vehicle control measures 
contained in the attainment and RFP demonstrations.\41\
---------------------------------------------------------------------------

    \41\ See 40 CFR 93.118(e)(4)(iii), (iv) and (v). For more 
information on the transportation conformity requirements and 
applicable policies on MVEBs, please visit our transportation 
conformity website at: http://www.epa.gov/otaq/stateresources/transconf/index.htm.
---------------------------------------------------------------------------

    The EPA's process for determining adequacy of a budget consists of 
three basic steps: (1) Providing public notification of a SIP 
submission; (2) providing the public the opportunity to comment on the 
budget during a public comment period; and, (3) making a finding of 
adequacy or inadequacy.\42\
---------------------------------------------------------------------------

    \42\ See 40 CFR 93.118(f)(2).
---------------------------------------------------------------------------

2. Summary of the State's Submission
    The 2016 Ozone Plan included sub-regional (i.e., county-based) 
budgets for the 2018, 2021, 2024, 2027, and 2030 RFP milestone years, 
and the 2031 attainment year. In June 2017, the EPA found the budgets 
adequate for transportation conformity purposes,\43\ and more recently, 
proposed approval of the 2031 budgets in our August 31, 2018 action on 
portions of the 2016 Ozone Plan. The budgets for 2018, 2021, 2024, 2027 
and 2030 were derived from the 2012 RFP baseline year and the 
associated RFP milestone years. As such, the budgets are affected by 
the South Coast II decision vacating the alternative baseline year 
provision, and therefore, the EPA did not propose action on RFP budgets 
in our August 31, 2018 proposed rule. On October 3, 2018, CARB 
requested parallel processing of the 2018 SIP Update before its board's 
anticipated adoption of the plan on October 25, 2018. The 2018 SIP 
Update revises the RFP determination and identifies new sub-regional 
budgets for each county in the nonattainment area for VOC and 
NOX for each updated RFP milestone year through 2030 and for 
the attainment year, 2031. The budgets in this 2018 SIP Update replace 
all of the budgets contained in the 2016 Ozone Plan.
---------------------------------------------------------------------------

    \43\ 82 FR 29547 (June 29, 2017).
---------------------------------------------------------------------------

    The budgets in the 2018 SIP Update were calculated using updated 
vehicle miles traveled (VMT) estimates from the 2018 Regional 
Transportation Plans from the San Joaquin Valley Metropolitan 
Transportation Planning agencies and EMFAC2014, CARB's latest approved 
version of the EMFAC model for estimating emissions from on-road 
vehicles operating in California, and reflect average summer weekday 
emissions consistent with the RFP milestone years and the 2031 
attainment year for the 2008 ozone NAAQS. The budgets also include a 
safety margin for some years and some counties. The conformity budgets 
for NOX and VOC for each county in the nonattainment area 
are provided in table 5 below.

                                                         Table 5--Budgets in the 2018 SIP Update
                                                                    [In tons per day]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                    2020                  2023                  2026                  2029                  2031
                                           -------------------------------------------------------------------------------------------------------------
                  County                               NOX (tpd)                NOX                NOX (tpd)             NOX (tpd)                NOX
                                            VOC (tpd)             VOC (tpd)    (tpd)    VOC (tpd)             VOC (tpd)             VOC (tpd)    (tpd)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Fresno....................................        6.7        3.9        5.5       14.1        4.9       13.2        4.5       12.4        4.2       12.1
Kern (SJV)................................        5.4       23.9        4.5       14.5        4.2       14.4        4.0       14.3        3.9       14.3
Kings.....................................        1.2        4.5        1.0        2.7        0.9        2.5        0.8        2.6        0.8        2.6
Madera....................................        1.5        4.3        1.1        2.7        1.0        2.5        0.9        2.4        0.8        2.3
Merced....................................        2.2        8.8        1.7        6.0        1.5        5.9        1.3        5.6        1.2        5.4
San Joaquin...............................        4.7       11.2        3.9        7.4        3.5        7.0        3.1        6.6        2.8        6.3
Stanislaus................................        3.1        8.8        2.6        5.6        2.2        4.9        2.0        4.5        1.8        4.3
Tulare....................................        3.0        7.6        2.4        4.6        2.1        4.0        1.8        3.7        1.7        3.5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Tables VIII-4 through VIII-10 of the 2018 SIP Update.

3. The EPA's Review of the State's Submission
    We have evaluated the submitted budgets in the 2018 SIP Update 
against our adequacy criteria in 40 CFR 93.118(e)(4) as part of our 
review of the budgets' approvability (see section III in the EPA's TSD 
for this proposal) and will complete the adequacy review concurrent 
with our final action on the ozone plan. The EPA is not required under 
its transportation conformity rule to find budgets adequate prior to 
proposing approval of them.\44\
---------------------------------------------------------------------------

    \44\ Under the Transportation Conformity regulations, the EPA 
may review the adequacy of submitted motor vehicle emission budgets 
simultaneously with the EPA's approval or disapproval of the 
submitted implementation plan 40 CFR 93.118(f)(2).

---------------------------------------------------------------------------

[[Page 61355]]

    The EPA has previously determined that the budgets in 2016 Ozone 
Plan are adequate for use for transportation conformity purposes. On 
February 23, 2017, the EPA announced the availability of the 2016 Ozone 
Plan and budgets, which were available for a 30-day public comment 
period that ended on March 27, 2017.\45\ The EPA received no comments 
from the public. On June 13, 2017, as noted above, the EPA determined 
the 2018, 2021, 2024, 2027, 2030 and 2031 MVEBs were adequate.\46\ On 
June 29, 2017, the notice of adequacy was published in the Federal 
Register.\47\ These budgets became effective on July 14, 2017, and have 
been used in transportation conformity determinations in the San 
Joaquin Valley area.
---------------------------------------------------------------------------

    \45\ See http://www.epa.gov/otaq/stateresources/transconf/currsips.htm.
    \46\ See June 13, 2017 letter from Elizabeth J. Adams, Acting 
Director, Air Division, EPA Region IX, to Richard W. Corey, 
Executive Officer, CARB.
    \47\ See 82 FR 29547.
---------------------------------------------------------------------------

    In today's notice, the EPA is proposing to approve the 2020, 2023, 
2026, 2029 and 2031 budgets in the 2018 SIP Update for transportation 
conformity purposes. The EPA has determined through its review of the 
submitted 2018 SIP Update that these budgets are consistent with 
emission control measures in the SIP, reasonable further progress and 
attainment for the 2008 ozone NAAQS. For the reasons discussed in 
section III.B of this proposed rule, we are proposing to approve the 
RFP demonstration in the 2018 SIP Update. To supplement the information 
in the 2018 SIP Update, CARB provided an additional technical 
supplement \48\ demonstrating that the budgets, including safety 
margins, which are clearly identified in the tables VIII-4 through 
VIII-10 of the 2018 SIP Update, are consistent with RFP.
---------------------------------------------------------------------------

    \48\ See email from Sylvia Vanderspek, Chief, California Air 
Resources Board Air Planning Branch, to Anita Lee, Chief, EPA Region 
IX Air Planning Office, October 17, 2018.
---------------------------------------------------------------------------

    The EPA has previously proposed to approve the attainment 
demonstration in 2016 Ozone Plan and associated 2031 budgets.\49\ The 
2018 SIP Update does not update the attainment demonstration, therefore 
CARB provided an additional technical supplement \50\ to assess the 
effect of the emissions updates in the 2018 SIP Update using modeling 
from the 2016 Ozone Plan. The supplement showed that the updated on-
road emission and safety margins, when considered together with all 
other emission sources, are consistent with applicable requirements for 
attainment. A detailed discussion of the EPA's analysis of CARB's 
technical supplement is provided in section III of the TSD accompanying 
this rulemaking.
---------------------------------------------------------------------------

    \49\ See 83 FR 44528 (August 31, 2018).
    \50\ See email from Sylvia Vanderspek, Chief, California Air 
Resources Board Air Planning Branch, to Anita Lee, Chief, EPA Region 
IX Air Planning Office, October 19, 2018.
---------------------------------------------------------------------------

    The 2018 SIP Update budgets as shown in table 5, are consistent 
with the RFP demonstration and attainment demonstration, are clearly 
identified and precisely quantified, and meet all other applicable 
statutory and regulatory requirements, including the adequacy criteria 
in 40 CFR 93.118(e)(4) and (5). For these reasons, the EPA proposes to 
approve the budgets in table 5. We provide a more detailed discussion 
in section III of the EPA's TSD, which can be found in the docket for 
today's action. If we finalize approval of the budgets in the 2018 SIP 
Update, as proposed, then they will replace the budgets from the 2016 
Ozone Plan that we previously found adequate for use in conformity 
determinations by transportation agencies in the San Joaquin Valley.

D. Contingency Measures for Failure To Meet RFP Milestones or To Attain 
the NAAQS by the Applicable Attainment Date

1. Statutory and Regulatory Requirements
    Under the CAA, ozone nonattainment areas classified under subpart 2 
as Serious or above must include in their SIPs contingency measures 
consistent with sections 172(c)(9) and 182(c)(9). Contingency measures 
are additional controls or measures to be implemented in the event the 
area fails to make RFP or to attain the NAAQS by the attainment date. 
The SIP should contain trigger mechanisms for the contingency measures, 
specify a schedule for implementation, and indicate that the measure 
will be implemented without significant further action by the state or 
the EPA.\51\
---------------------------------------------------------------------------

    \51\ See 70 FR 71612 (November 29, 2005). See also 2008 Ozone 
SRR, 80 FR 12264 at 12285 (March 6, 2015).
---------------------------------------------------------------------------

    Neither the CAA nor the EPA's implementing regulations establish a 
specific amount of emissions reductions that implementation of 
contingency measures must achieve, but the 2008 Ozone SRR reiterates 
the EPA's guidance recommendation that contingency measures should 
provide for emissions reductions approximately equivalent to one year's 
worth of RFP, thus amounting to reductions of 3 percent of the baseline 
emissions inventory for the nonattainment area.\52\
---------------------------------------------------------------------------

    \52\ 80 FR 12264 at 12285 (March 6, 2015).
---------------------------------------------------------------------------

    It has been the EPA's longstanding interpretation of section 
172(c)(9) that states may rely on existing federal measures (e.g., 
federal mobile source measures based on the incremental turnover of the 
motor vehicle fleet each year) and state or local measures in the SIP 
already scheduled for implementation that provide emissions reductions 
in excess of those needed to meet any other nonattainment plan 
requirements, such as meeting RACM/RACT, RFP or expeditious attainment 
requirements. The key is that the statute requires that contingency 
measures provide for additional emissions reductions that are not 
relied on for RFP or attainment and that are not included in the RFP or 
attainment demonstrations as meeting part or all of the contingency 
measure requirements. The purpose of contingency measures is to provide 
continued emissions reductions while the state revises the SIP to meet 
the missed milestone or attainment date.
    The EPA has approved numerous nonattainment area plan SIP 
submissions under this interpretation, i.e., SIPs that use as 
contingency measures one or more federal or state control measures that 
are already in place and provide reductions that are in excess of the 
reductions required to meet other requirements or relied upon in the 
modeled attainment demonstration,\53\ and there is case law supporting 
the EPA's interpretation in this regard.\54\ However, in Bahr v. EPA, 
the Ninth Circuit rejected the EPA's interpretation of CAA section 
172(c)(9) as allowing for approval of already implemented control 
measures as contingency measures.\55\ The Ninth Circuit concluded that 
contingency measures must be measures that would take effect at the 
time the area fails to make RFP or to attain by the applicable 
attainment date, not before.\56\ Thus, within the geographic 
jurisdiction of the Ninth Circuit, states cannot rely on already 
implemented control measures to comply with the contingency

[[Page 61356]]

measure requirements under CAA sections 172(c)(9) and 182(c)(9).\57\
---------------------------------------------------------------------------

    \53\ See, e.g., 62 FR 15844 (April 3, 1997) (direct final rule 
approving an Indiana ozone SIP revision); 62 FR 66279 (December 18, 
1997) (final rule approving an Illinois ozone SIP revision); 66 FR 
30811 (June 8, 2001) (direct final rule approving a Rhode Island 
ozone SIP revision); 66 FR 586 (January 3, 2001) (final rule 
approving District of Columbia, Maryland, and Virginia ozone SIP 
revisions); and 66 FR 634 (January 3, 2001) (final rule approving a 
Connecticut ozone SIP revision).
    \54\ See, e.g., LEAN v. EPA, 382 F.3d 575 (5th Cir. 2004) 
(upholding contingency measures that were previously required and 
implemented where they were in excess of the attainment 
demonstration and RFP SIP).
    \55\ Bahr v. EPA, 836 F.3d 1218, at 1235-1237 (9th Cir. 2016).
    \56\ Id. at 1235-1237.
    \57\ The Bahr v. EPA decision involved a challenge to an EPA 
approval of contingency measures under the general nonattainment 
area plan provisions for contingency measures in CAA section 
172(c)(9), but, given the similarity between the statutory language 
in section 172(c)(9) and the ozone-specific contingency measure 
provision in section 182(c)(9), we find that the decision affects 
how both sections of the Act must be interpreted.
---------------------------------------------------------------------------

2. Summary of the State's Submission
    The District and CARB adopted the 2016 Ozone Plan prior to the Bahr 
v. EPA decision, and it relies upon surplus emissions reductions from 
already implemented control measures in the RFP milestone years to 
demonstrate compliance with the RFP milestone contingency measure 
requirements of CAA sections 172(c)(9) and 182(c)(9).\58\ With respect 
to the attainment contingency measure requirements, the 2016 Ozone Plan 
relies upon the incremental reduction in emissions in the year 
following the attainment year relative to the emissions in the 
attainment year due to continuing benefits from already implemented 
control measures, and on the aggregate emission reduction commitment 
made by CARB in the 2016 State Strategy for San Joaquin Valley.\59\
---------------------------------------------------------------------------

    \58\ See the 2016 Ozone Plan, chapter 6, section 6.3.
    \59\ See the 2016 Ozone Plan, chapter 6, section 6.4 and CARB's 
Staff Report, ARB Review of the San Joaquin Valley 2016 Plan for the 
2008 8-Hour Ozone Standard, release date June 17, 2016, pages 21 and 
22. CARB's aggregate commitment is to achieve emission reductions in 
the San Joaquin Valley of 8 tpd of NOX by 2031. In our 
August 31, 2018 proposed action on portions of the 2016 Ozone Plan 
(83 FR 44528, at 44547), we proposed to approve the aggregate 8-tpd 
NOX commitment by CARB from the 2016 State Strategy as a 
SIP strengthening measure.
---------------------------------------------------------------------------

    In the 2018 SIP Update, CARB revises the RFP demonstration for the 
2008 ozone standards for the San Joaquin Valley nonattainment area and 
recalculates the extent of surplus emission reductions (i.e., surplus 
to meeting the RFP milestone requirement for a given milestone year) in 
the milestone years, and updates the estimate of the incremental 
reduction in emissions in the year following the attainment year 
(relative to the attainment year). In light of the Bahr v. EPA 
decision, however, the 2018 SIP Update does not identify such surplus 
or incremental emissions reductions as contingency measures. Instead, 
the 2018 SIP Update includes a contingency measure that would take 
effect upon a failure to meet an RFP milestone or upon a failure to 
attain the 2008 ozone standards by the applicable attainment date.
    The new contingency measure, referred to as the ``Enhanced 
Enforcement Activities Program,'' is described in chapter X 
(``Contingency Measures''), section C of the 2018 SIP Update. In short, 
under the Enhanced Enforcement Activities Program, within 60 days of a 
determination by the EPA that the San Joaquin Valley nonattainment area 
failed to meet an RFP milestone or to attain the 2008 ozone NAAQS by 
the applicable attainment date, the CARB Executive Officer would direct 
enhanced enforcement activities in San Joaquin Valley consistent with 
the findings and recommendations in a report (referred to as the 
Enhanced Enforcement Report) that is to be prepared and published 
within 60 days of the triggering event. In the 2018 SIP Update, CARB 
indicates that the Enhanced Enforcement Report will, among other 
things, describe the compliance status of stationary and mobile sources 
in the area, determine the probable cause of the failure of RFP or 
attainment, and specify the type and quantity of additional enforcement 
resources that will be directed to the area. Lastly, through its 
resolution of adoption of the 2018 SIP Update, CARB added a menu of 
specific enforcement activity measures, one or more of which must be 
identified in the Enhanced Enforcement Report and implemented within 60 
days of a triggering event.\60\
---------------------------------------------------------------------------

    \60\ CARB Resolution 18-50, dated October 25, 2018, attachment 
B.
---------------------------------------------------------------------------

    In chapter X (``Contingency Measures'') of the 2018 SIP Update, 
CARB indicates that compliance with the contingency measure 
requirements of the CAA necessitates that individual air districts 
adopt a local contingency measure or measures to complement CARB's 
Enhanced Enforcement Activities Program measure. To address the 
contingency measure requirement for the 2008 ozone standards in the San 
Joaquin Valley nonattainment area, the District has committed to adopt 
and submit a contingency measure to CARB within 11 months of the EPA's 
final conditional approval of the contingency measure element of the 
2016 Ozone Plan, as supplemented by the relevant portions of the 2018 
SIP Update.\61\ The District's specific commitment is to revise the 
district's current architectural coatings rule to remove the exemption 
for architectural coatings sold in containers with a volume of one 
liter or less if the EPA determines that the San Joaquin Valley 
nonattainment area has missed an RFP milestone or failed to attain the 
2008 ozone NAAQS by the applicable attainment date. The District 
further commits to submit the revised architectural coatings rule to 
CARB within 11 months of final EPA action. CARB has attached the 
District's commitment to revise the architectural coatings rule to a 
letter committing to adopt and submit the revised rule to the EPA 
within one year of the EPA's final action on the contingency measure 
element of the 2016 Ozone Plan (and related portions of the 2018 SIP 
Update).\62\
---------------------------------------------------------------------------

    \61\ Sheraz Gill, Deputy Air Pollution Control Officer, letter 
to Richard Corey, Executive Officer, CARB and Michael Stoker, 
Regional Administrator, EPA Region IX, dated October 18, 2018.
    \62\ Letter from Dr. Michael Benjamin, Chief, CARB Air Quality 
Planning and Science Division, to Michael Stoker, Regional EPA 
Region IX Administrator, dated October 20, 2018.
---------------------------------------------------------------------------

3. The EPA's Review of the State's Submission
    We have evaluated the contingency measure provisions in the 2016 
Ozone Plan, the 2018 SIP Update, and the commitments by the District 
and CARB to adopt and submit a district contingency measure within one 
year of the EPA's final action and have concluded that, collectively, 
these materials provide the basis for us to propose conditional 
approval of the 2016 Ozone Plan and the relevant portions of 2018 
Update.
    First, we find that CARB's Enhanced Enforcement Activities Program 
measure and the revision to the architectural coatings rule (once 
adopted) represent additional controls or measures to be implemented in 
the event San Joaquin Valley fails to make RFP or to attain the NAAQS 
by the applicable attainment date. We also find that CARB's Enhanced 
Enforcement Activities Program contains, and the revised architectural 
coatings rule will contain, triggering mechanisms and schedules for 
implementation for the additional measures. Furthermore, the 
contingency measures are designed to be implemented without significant 
further action by the State or the EPA.\63\ As such, CARB's Enhanced 
Enforcement Activities Program measure is structured, and the 
District's intended measure, as described in the commitment, will be 
structured, to meet the requirements of CAA sections

[[Page 61357]]

172(c)(9) and 182(c)(9) consistent with the Bahr v. EPA decision.
---------------------------------------------------------------------------

    \63\ We recognize that CARB's Enhanced Enforcement Activities 
Program calls for the preparation of a report before specific 
actions are taken; however, we view the preparation of the report as 
a ministerial act that does not require significant action on the 
part of CARB or the EPA, e.g., does not depend upon rulemaking or 
any action by the CARB Board. Furthermore, in adopting the 2018 SIP 
Update, the CARB Board strengthened the Enhanced Enforcement 
Activities Program contingency measure by adopting a menu of 
specific actions, one or more of which must be included in the 
report for implementation beginning 60 days after the triggering 
event. See CARB Resolution 18-50, October 25, 2018, attachment B 
(``Menu of Enhanced Enforcement Actions'').
---------------------------------------------------------------------------

    As noted above, neither the CAA nor the EPA's implementing 
regulations for the ozone NAAQS establish a specific amount of 
emissions reductions that implementation of contingency measures must 
achieve, but we generally expect that contingency measures should 
provide for emissions reductions approximately equivalent to one year's 
worth of RFP, which, for ozone, amounts to reductions of 3 percent of 
the baseline emissions inventory for the nonattainment area. For the 
2008 ozone standards in the San Joaquin Valley nonattainment area, one 
year's worth of RFP is approximately 11.4 tpd of VOC or NOX 
reductions.\64\
---------------------------------------------------------------------------

    \64\ The 2011 baseline for VOC and NOX is 378.7 tpd 
and 375.6 tpd, respectively, as shown in table VIII-1 of the 2018 
SIP Update. Three percent of the baselines is 11.4 tpd of VOC and 
11.3 tpd of NOX, respectively.
---------------------------------------------------------------------------

    The 2018 SIP Update does not include a specific estimate of the 
emissions reductions that would be achieved by the Enhanced Enforcement 
Activities program. We recognize the difficulty in calculating such an 
estimate given the nature of the measure and the range of enforcement 
actions that could be taken, but we believe that the enhanced 
enforcement program would achieve emissions reductions above and beyond 
those that would otherwise be achieved. The District's intended 
contingency measure, i.e., the removal of the small-container exemption 
from the current local architectural coatings rule in the SIP upon a 
triggering event, lends itself more easily to quantification of 
potential additional emission reductions. Based on emissions estimates 
developed in connection with the removal of the same small-container 
exemption from the comparable South Coast Air Quality Management 
District's architectural coatings rule, we estimate that the removal of 
the exemption would achieve roughly 1 tpd reduction of VOC in San 
Joaquin Valley.\65\
---------------------------------------------------------------------------

    \65\ The basis for this estimate is detailed in section II of 
the TSD accompanying this rulemaking.
---------------------------------------------------------------------------

    Considered together, as described above, the two contingency 
measures can be quantified to achieve approximately 1 tpd of VOC 
emissions reductions. Thus the contingency measures, considered in 
isolation, can be quantified to achieve far less than one year's worth 
of RFP (11.4 tpd of VOC or NOX). However, the 2018 SIP 
Update presents the contingency measures within the larger SIP planning 
context and concludes that the emissions reductions from the two 
contingency measures are sufficient to meet CAA contingency measure 
requirements when considered in conjunction with the surplus emissions 
reductions estimated to be achieved in the RFP milestone years and the 
incremental emissions reductions projected to occur in the year 
following the attainment year. Although these surplus emission 
reductions and incremental emissions reductions result from existing 
(i.e., already implemented) measures that are not appropriate as 
contingency measures under the Bahr v. EPA court's interpretation of 
CAA section 172(c)(9), they nonetheless provide additional emission 
reductions that will improve the ambient ozone levels in the San 
Joaquin Valley 2008 ozone nonattainment area in the event that RFP or 
attainment are not met.
    In this case, ``surplus'' refers to emissions reductions over and 
above the reductions necessary to demonstrate RFP in San Joaquin Valley 
for the 2008 ozone standards. More specifically, table VIII-2 in the 
2018 SIP Update identifies surplus NOX reductions in the 
various RFP milestone years. For San Joaquin Valley, the estimates of 
surplus NOX reductions vary for each RFP milestone year but 
range from 92.4 tpd (24.6 percent of 2011 baseline NOX) in 
milestone year 2031 to 157.4 tpd (41.9 percent of 2011 baseline 
NOX) in milestone year 2023. These represent values that far 
eclipse one year's worth of RFP (11.4 tpd). The surplus reflects 
already implemented regulations and is primarily the result of vehicle 
turnover, which refers to the ongoing replacement by individuals, 
companies, and government agencies of older, more polluting vehicles 
and engines with newer vehicles and engines designed to meet more 
stringent CARB mobile source emission standards. In light of the extent 
of surplus NOX emissions reductions in the RFP milestone 
years, we agree with CARB that the emissions reductions from the two 
contingency measures would be sufficient to meet the contingency 
measure requirements of the CAA with respect to RFP milestones, even 
though the measures would achieve emissions reductions lower than the 
EPA normally recommends for reductions from such measures.
    For attainment contingency measure purposes, we view the emissions 
reductions from the two contingency measures in the context of the 
expected reduction in emissions within the San Joaquin Valley 
nonattainment area for the 2008 ozone NAAQS in the year following the 
attainment year (relative to those occurring in the attainment year). 
Based on the emission inventories in the Appendix A to the 2018 SIP 
Update, we note that overall regional emissions are expected to be 
approximately 1 tpd of NOX lower in 2032 than in 2031.\66\ 
Considered together with the quantified 1 tpd reduction from the 
contingency measures, the adopted regulations would not provide 
sufficient emissions reductions to constitute one year's worth of RFP. 
However, as part of the 2016 State Strategy, CARB has made an aggregate 
emission reduction commitment of 8 tpd of NOX for San 
Joaquin Valley by 2031 over and above the reductions that are needed 
for any other CAA purpose with respect to the 2008 ozone standards. 
Fulfillment of the 8-tpd commitment would reduce the potential for the 
area to fail to attain the 2008 ozone NAAQS by the 2031 applicable 
attainment date. Under these circumstances, given the reduced potential 
for failure to attain and the expected year-over-year net reduction in 
regional emissions, we find that the emissions reductions from the two 
contingency measures are sufficient to meet the contingency measure 
requirements of the CAA with respect to attainment.
---------------------------------------------------------------------------

    \66\ A comparison of regional emissions totals in 2032 with 
those in 2031 shows that VOC emissions are expected to be 1.05 tpd 
higher, and NOX emissions are expected to be 2.14 lower, 
for a net reduction of approximately 1 tpd of NOX.
---------------------------------------------------------------------------

    For the above reasons, we propose to conditionally approve the 
contingency measure element of the 2016 Ozone Plan, as modified by the 
2018 SIP Update, and supplemented by the commitments by the District 
and CARB to adopt and submit an additional contingency measure, as 
meeting the contingency measure requirements of CAA sections 172(c)(9) 
and 182(c)(9). Our proposed approval is conditional because it relies 
upon a commitment to adopt a specific enforceable contingency measure. 
Conditional approvals are authorized under CAA section 110(k)(4) of the 
CAA.

V. Proposed Action

    For the reasons discussed above, under CAA section 110(k)(3), the 
EPA is proposing to approve as a revision to the California SIP the 
following portions of the San Joaquin Valley 2016 Ozone Plan \67\ 
submitted by CARB on August 24, 2016:
---------------------------------------------------------------------------

    \67\ As noted previously, the EPA has already approved the 
portions of the 2016 Ozone Plan (section 3.4 (``Reasonably Available 
Control Technology (RACT) Demonstration'') and Appendix C 
(``Stationary and Area Source Control Strategy Evaluations'')) that 
relate to the RACT requirements under CAA section 182(b)(2) and 40 
CFR 51.1112.
---------------------------------------------------------------------------

     Base year emissions inventory as meeting the requirements 
of CAA

[[Page 61358]]

sections 172(c)(3) and 182(a)(1) and 40 CFR 51.1115.
    The EPA is also proposing to approve as a revision to the 
California SIP the following portions of the 2018 SIP Update to the 
California State Implementation Plan, adopted by CARB on October 25, 
2018:
     RFP demonstration as meeting the requirements of CAA 
sections 172(c)(2), 182(b)(1), and 182(c)(2)(B), and 40 CFR 
51.1110(a)(2)(ii); and
     Motor vehicle emissions budgets for the RFP milestone 
years of 2020, 2023, 2026, 2029, and the attainment year of 2031 (see 
table 5, above) because they are consistent with the RFP demonstration 
proposed for approval herein and the attainment demonstration 
previously proposed for approval and meet the other criteria in 40 CFR 
93.118(e).
    Lastly, we are proposing to conditionally approve the contingency 
measure element of the 2016 Ozone Plan, as modified by the 2018 SIP 
Update, as meeting the requirements of CAA sections 172(c)(9) and 
182(c)(9) based on commitments by CARB and the District to supplement 
the element through submission of a SIP revision within 1 year of final 
conditional approval action that will include a revised District 
architectural coatings rule.
    The EPA is soliciting public comments on the proposed actions 
listed above, our rationales for the proposed actions, and any other 
pertinent matters related to the issues discussed in this document. We 
will accept comments from the public on this proposal for the next 30 
days and will consider comments before taking final action.

VI. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, the EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed action merely proposes to approve state 
plans and an air district rule as meeting federal requirements and does 
not impose additional requirements beyond those imposed by state law. 
For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide the EPA with the discretionary authority 
to address disproportionate human health or environmental effects with 
practical, appropriate, and legally permissible methods under Executive 
Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where the EPA or an Indian tribe 
has demonstrated that a tribe has jurisdiction. In those areas of 
Indian country, the proposed rule does not have tribal implications and 
will not impose substantial direct costs on tribal governments or 
preempt tribal law as specified by Executive Order 13175 (65 FR 67249, 
November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: November 19, 2018.
Deborah Jordan,
Acting Regional Administrator, Region IX.
[FR Doc. 2018-25885 Filed 11-28-18; 8:45 am]
 BILLING CODE 6560-50-P



                                                 61346               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 Intergovernmental Review                                Grant programs-education, Indians-                    change to child eligibility. Beginning
                                                    This program is subject to Executive                 education, Infants and children,                      September 1, 2020, an SEA must use
                                                 Order 12372 and the regulations in 34                   Juvenile delinquency, Migrant labor,                  one or more independent re-
                                                 CFR part 79. One of the objectives of the               Private schools, Reporting and                        interviewers (i.e., interviewers who are
                                                 Executive order is to foster an                         recordkeeping requirements.                           neither SEA nor local operating agency
                                                 intergovernmental partnership and a                       Dated: November 23, 2018.                           staff members working to administer or
                                                 strengthened federalism. The Executive                  Betsy DeVos,
                                                                                                                                                               operate the State MEP, nor any other
                                                 order relies on processes developed by                                                                        persons who worked on the initial
                                                                                                         Secretary of Education.
                                                 State and local governments for                                                                               eligibility determinations being tested
                                                                                                           For the reasons discussed in the                    and who are trained to conduct personal
                                                 coordination and review of proposed                     preamble, the Secretary proposes to
                                                 Federal financial assistance.                                                                                 interviews and to understand and apply
                                                                                                         amend part 200 of title 34 of the Code                program eligibility requirements) to
                                                    This document provides early                         of Federal Regulations as follows:
                                                 notification of our specific plans and                                                                        validate child eligibility determinations
                                                 actions for this program.                                                                                     at least once within the first three full
                                                                                                         PART 200—TITLE I—IMPROVING THE                        performance reporting periods
                                                 Federalism                                              ACADEMIC ACHIEVEMENT OF THE                           (September 1 through August 31)
                                                                                                         DISADVANTAGED                                         following the effective date of a major
                                                    Executive Order 13132 requires us to
                                                 ensure meaningful and timely input by                   ■ 1. The authority citation for part 200              statutory or regulatory change that
                                                 State and local elected officials in the                continues to read as follows:                         directly impacts child eligibility (as
                                                 development of regulatory policies that                                                                       determined by the Secretary), consistent
                                                                                                           Authority: 20 U.S.C. 6301 through 6576,             with the prospective re-interview
                                                 have federalism implications.                           unless otherwise noted.
                                                 ‘‘Federalism implications’’ means                                                                             process described in paragraph
                                                 substantial direct effects on the States,               ■ 2. Section 200.89 is amended by:                    (b)(2)(ii)–(vii) of this section. The entire
                                                                                                         ■ a. Revising paragraph (b)(2).                       sample of eligibility determinations to
                                                 on the relationship between the                         ■ b. Adding paragraph (b)(3).
                                                 National Government and the States, or                                                                        be tested by independent re-
                                                                                                         ■ c. Revising the authority citation.                 interviewers must be drawn from
                                                 on the distribution of power and                          The revisions and addition read as
                                                 responsibilities among the various                                                                            children determined to be eligible after
                                                                                                         follows:                                              the major statutory or regulatory change
                                                 levels of government. The proposed
                                                 regulations in § 200.89(b) may have                     § 200.89 Re-interviewing; Eligibility                 took effect.
                                                 federalism implications. We encourage                   documentation; and Quality control.                   *     *      *      *     *
                                                 State and local elected officials to                    *      *     *     *     *                            (Authority: 20 U.S.C. 6391–6399, 6571, 18
                                                 review and provide comments on these                       (b) * * *                                          U.S.C. 1001)
                                                 proposed regulations.                                      (2) Prospective re-interviewing. As
                                                                                                                                                               [FR Doc. 2018–25931 Filed 11–28–18; 8:45 am]
                                                    Accessible Format: Individuals with                  part of the system of quality controls
                                                                                                                                                               BILLING CODE 4000–01–P
                                                 disabilities can obtain this document in                identified in § 200.89(d), an SEA must
                                                 an accessible format (e.g., braille, large              annually validate child eligibility
                                                 print, audiotape, or compact disc) on                   determinations from the current
                                                                                                         performance reporting period                          ENVIRONMENTAL PROTECTION
                                                 request to the person listed under FOR
                                                                                                         (September 1 to August 31) through re-                AGENCY
                                                 FURTHER INFORMATION CONTACT.
                                                    Electronic Access to This Document:                  interviews for a randomly selected
                                                                                                                                                               40 CFR Part 52
                                                 The official version of this document is                sample of children identified as
                                                 the document published in the Federal                   migratory during the same performance                 [EPA–R09–OAR–2018–0535; FRL–9987–11–
                                                 Register. You may access the official                   reporting period using re-interviewers,               Region 9]
                                                 edition of the Federal Register and the                 who may be SEA or local operating
                                                                                                         agency staff members working to                       Clean Air Plans; 2008 8-Hour Ozone
                                                 Code of Federal Regulations via the                                                                           Nonattainment Area Requirements;
                                                 Federal Digital System at: www.gpo.gov/                 administer or operate the State MEP, or
                                                                                                         any other person trained to conduct                   San Joaquin Valley, California
                                                 fdsys. At this site you can view this
                                                 document, as well as all other                          personal interviews and who                           AGENCY:  Environmental Protection
                                                 documents of this Department                            understands program eligibility                       Agency (EPA).
                                                 published in the Federal Register, in                   requirements, but who did not work on                 ACTION: Proposed rule.
                                                 text or Adobe Portable Document                         the initial eligibility determinations
                                                 Format (PDF). To use PDF you must                       being tested. In conducting these re-                 SUMMARY:    The Environmental Protection
                                                 have Adobe Acrobat Reader, which is                     interviews, an SEA must—                              Agency (EPA) is proposing to approve
                                                 available free at the site.                                (i) Use one or more independent re-                portions of two state implementation
                                                    You may also access documents of the                 interviewers (i.e., interviewers who are              plan (SIP) revisions submitted by the
                                                 Department published in the Federal                     neither SEA or local operating agency                 State of California to meet Clean Air Act
                                                 Register by using the article search                    staff members working to administer or                (CAA or ‘‘the Act’’) requirements for the
                                                 feature at: www.federalregister.gov.                    operate the State MEP nor any other                   2008 8-hour ozone national ambient air
                                                 Specifically, through the advanced                      persons who worked on the initial                     quality standards (NAAQS or
                                                 search feature at this site, you can limit              eligibility determinations being tested               ‘‘standards’’) in the San Joaquin Valley,
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                                                 your search to documents published by                   and who are trained to conduct personal               California, ozone nonattainment area.
                                                 the Department. (Catalog of Federal                     interviews and to understand and apply                First, the EPA is proposing to approve
                                                 Domestic Assistance number 84.011:                      program eligibility requirements) at                  the portion of the ‘‘2016 Ozone Plan for
                                                 Education of Migratory Children)                        least once every three years until                    the 2008 8-Hour Ozone Standard’’
                                                                                                         September 1, 2020;                                    (‘‘2016 Ozone Plan’’) that addresses the
                                                 List of Subjects in 34 CFR Part 200                                                                           requirement for a base year emissions
                                                                                                         *      *     *     *     *
                                                   Education of disadvantaged,                              (3) Prospective re-interviewing                    inventory. Second, the EPA is proposing
                                                 Elementary and secondary education,                     following a major statutory or regulatory             to approve the portions of the ‘‘2018


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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                     61347

                                                 Updates to the California State                            A. Ozone Standards, Area Designations                  EPA revised and further strengthened
                                                 Implementation Plan’’ (‘‘2018 SIP                             and SIPs                                            the ozone NAAQS by setting the
                                                 Update’’) that address the requirements                    B. The San Joaquin Valley Ozone                        acceptable level of ozone in the ambient
                                                                                                               Nonattainment Area
                                                 for a reasonable further progress (RFP)                    C. CAA and Regulatory Requirements for
                                                                                                                                                                   air at 0.075 parts per million (ppm)
                                                 demonstration and motor vehicle                               2008 8-Hour Ozone Nonattainment Area                averaged over an 8-hour period.4
                                                 emissions budgets (MVEBs) for the San                         SIPs                                                Although the EPA further tightened the
                                                 Joaquin Valley for the 2008 ozone                       II. Submissions from the State of California              8-hour ozone NAAQS to 0.070 ppm in
                                                 standards. Lastly, the EPA is proposing                       To Address 2008 Ozone Requirements in               2015, this action relates to the
                                                 to conditionally approve portions of the                      the San Joaquin Valley                              requirements for the 2008 ozone
                                                 2018 SIP Update that address the                           A. Summary of Submissions                              NAAQS.5 The State of California and
                                                                                                            B. Clean Air Act Procedural Requirements
                                                 requirement for contingency measures                                                                              the EPA will address the 2015 ozone
                                                                                                               for Adoption and Submission of SIP
                                                 for failure to meet RFP milestones or to                      Revisions                                           NAAQS in later actions.
                                                 attain the NAAQS by the applicable                      III. Evaluation of the 2016 Ozone Plan and                   Following promulgation of a new or
                                                 attainment date. The proposed approval                        2018 SIP Update                                     revised NAAQS, the EPA is required
                                                 is conditional because it relies on                        A. Emissions Inventories                               under CAA section 107(d) to designate
                                                 commitments by the State air agency                        B. Rate of Progress Plan and Reasonable                areas throughout the country as
                                                 and regional air district to supplement                       Further Progress Demonstration                      attaining or not attaining the NAAQS.
                                                 the contingency measure portion of the                     C. Motor Vehicle Emissions Budgets for                 The EPA classifies ozone nonattainment
                                                                                                               Transportation Conformity
                                                 2018 SIP Update with submission of an                                                                             areas under CAA section 181 according
                                                                                                            D. Contingency Measures for Failure To
                                                 additional contingency measure within                         Meet RFP Milestones or To Attain the                to the severity of the ozone pollution
                                                 one year of the EPA’s final conditional                       NAAQS by the Applicable Attainment                  problem, with classifications ranging
                                                 approval.                                                     Date                                                from Marginal to Extreme. State
                                                 DATES: Written comments must arrive                     V. Proposed Action                                        planning and emissions control
                                                 on or before December 31, 2018.                         VI. Statutory and Executive Order Reviews                 requirements for ozone are determined,
                                                                                                         I. Regulatory Context                                     in part, by the nonattainment area’s
                                                 ADDRESSES: Submit your comments,
                                                                                                                                                                   classification. The EPA designated the
                                                 identified by Docket ID No. EPA–R09–                    A. Ozone Standards, Area Designations                     San Joaquin Valley as nonattainment for
                                                 OAR–2018–0535 at https://                               and SIPs                                                  the 2008 ozone standards on May 21,
                                                 www.regulations.gov. For comments
                                                                                                           Ground-level ozone pollution is                         2012, and classified the area as
                                                 submitted at Regulations.gov, follow the
                                                                                                         formed from the reaction of volatile                      Extreme.6
                                                 online instructions for submitting
                                                                                                         organic compounds (VOC) and oxides of                        Under the CAA, after the EPA
                                                 comments. Once submitted, comments
                                                                                                         nitrogen (NOX) in the presence of                         designates areas as nonattainment for a
                                                 cannot be edited or removed from
                                                                                                         sunlight.1 These two pollutants, referred                 NAAQS, states with nonattainment
                                                 Regulations.gov. The EPA may publish
                                                                                                         to as ozone precursors, are emitted by                    areas are required to submit SIP
                                                 any comment received to its public
                                                                                                         many types of sources, including on-and                   revisions. For areas classified Moderate
                                                 docket. Do not submit electronically any
                                                                                                         off-road motor vehicles and engines,                      and above, these revisions must provide
                                                 information you consider to be
                                                                                                         power plants and industrial facilities,                   for, among other things, attainment of
                                                 Confidential Business Information (CBI)
                                                                                                         and smaller area sources such as lawn                     the NAAQS within certain prescribed
                                                 or other information whose disclosure is
                                                                                                         and garden equipment and paints.                          periods that vary depending on the
                                                 restricted by statute. Multimedia
                                                                                                           Scientific evidence indicates that                      severity of nonattainment. Areas
                                                 submissions (audio, video, etc.) must be
                                                                                                         adverse public health effects occur                       classified as Extreme must attain the
                                                 accompanied by a written comment.
                                                                                                         following exposure to elevated levels of                  NAAQS within 20 years of the effective
                                                 The written comment is considered the
                                                                                                         ozone, particularly in children and                       date of the nonattainment designation.7
                                                 official comment and should include
                                                                                                         adults with lung disease. Breathing air                      In California, the California Air
                                                 discussion of all points you wish to
                                                                                                         containing ozone can reduce lung                          Resources Board (CARB or ‘‘State’’) is
                                                 make. The EPA will generally not
                                                                                                         function and inflame airways, which                       the state agency responsible for the
                                                 consider comments or comment
                                                                                                         can increase respiratory symptoms and                     adoption and submission to the EPA of
                                                 contents located outside of the primary
                                                                                                         aggravate asthma or other lung                            California SIPs and SIP revisions, and it
                                                 submission (i.e., on the web, cloud, or
                                                                                                         diseases.2                                                has broad authority to establish
                                                 other file sharing system). For
                                                                                                           Under section 109 of the CAA, the                       emissions standards and other
                                                 additional submission methods, please
                                                                                                         EPA promulgates NAAQS for pervasive                       requirements for state-wide sources of
                                                 contact the person identified in the FOR
                                                                                                         air pollutants, such as ozone. The EPA                    emissions. Under California law, local
                                                 FURTHER INFORMATION CONTACT section.
                                                                                                         has previously promulgated NAAQS for                      and regional air pollution control
                                                 For the full EPA public comment policy,
                                                                                                         ozone in 1979 and 1997.3 In 2008, the                     districts in California are responsible for
                                                 information about CBI or multimedia
                                                                                                                                                                   the regulation of regional/local sources
                                                 submissions, and general guidance on                       1 The State of California typically refers to          such as stationary sources, and are
                                                 making effective comments, please visit                 reactive organic gases (ROG) in its ozone-related         generally responsible for the
                                                 http://www.epa.gov/dockets/                             submissions since VOC in general can include both
                                                                                                                                                                   development of regional air quality
                                                 commenting-epa-dockets.                                 reactive and unreactive gases. However, since ROG
                                                                                                         and VOC inventories pertain to common chemical            plans. In the San Joaquin Valley, the
                                                 FOR FURTHER INFORMATION CONTACT:                        species (e.g., benzene, xylene, etc.), we refer to this   San Joaquin Valley Air Pollution
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                                                 Laura Lawrence, EPA Region IX, (415)                    set of gases as VOC in this proposed rule.                Control District (SJVAPCD or ‘‘District’’)
                                                 972–3407, lawrence.laura@epa.gov.                          2 See ‘‘Fact Sheet—2008 Final Revisions to the
                                                                                                                                                                   develops and adopts air quality
                                                                                                         National Ambient Air Quality Standards for Ozone’’
                                                 SUPPLEMENTAL INFORMATION: Throughout
                                                                                                         dated March 2008.
                                                 this document, ‘‘we,’’ ‘‘us’’ and ‘‘our’’                  3 The ozone NAAQS promulgated in 1979 was
                                                                                                                                                                     4 See 73 FR 16436 (March 27, 2008).
                                                 refer to the EPA.                                       0.12 parts per million (ppm) averaged over a 1-hour
                                                                                                                                                                     5 Information  on the 2015 ozone NAAQS is
                                                                                                         period. See 44 FR 8202 (February 8, 1979). The            available at 80 FR 65292 (October 26, 2015).
                                                 Table of Contents                                       ozone NAAQS promulgated in 1997 was 0.08 ppm                6 See 77 FR 30088 (May 21, 2012).

                                                                                                         averaged over an 8-hour period. See 62 FR 38856             7 See CAA section 181(a)(1), 40 CFR 51.1102 and

                                                 I. Regulatory Context                                   (July 18, 1997).                                          51.1103(a).



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                                                 61348                Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 management plans to address CAA                          185 of subpart 2 (‘‘Additional Provisions                II. Submissions From the State of
                                                 planning requirements applicable to                      for Ozone Nonattainment Areas’’). To                     California To Address 2008 Ozone
                                                 that region. The District then submits                   assist states in developing effective                    Requirements in the San Joaquin Valley
                                                 such plans to CARB for adoption and                      plans to address ozone nonattainment                     A. Summary of Submissions
                                                 submission to the EPA as revisions to                    problems, in 2015 the EPA issued a SIP
                                                 the California SIP. Such revisions do not                Requirements Rule (SRR) for the 2008                        On August 24, 2016, in response to
                                                 become part of the applicable SIP for                    ozone standards (‘‘2008 Ozone SRR’’)                     the EPA’s designation of the area as
                                                 federal purposes until approved by the                   that addressed implementation of the                     nonattainment and classification of the
                                                 EPA.8                                                    2008 standards, including attainment                     area as Extreme for the 2008 ozone
                                                 B. The San Joaquin Valley Ozone                          dates, requirements for emissions                        NAAQS, CARB submitted the 2016
                                                 Nonattainment Area                                       inventories, attainment and RFP                          Ozone Plan to the EPA as a revision to
                                                                                                          demonstrations, as well as the transition                the California SIP.15 Prior to submission
                                                    The San Joaquin Valley                                from the 1997 ozone standards to the                     to the EPA, CARB approved the 2016
                                                 nonattainment area for the 2008 ozone                    2008 ozone standards and associated                      Ozone Plan, which had previously been
                                                 standards consists of San Joaquin,                                                                                adopted by the District and forwarded to
                                                                                                          anti-backsliding requirements.12 The
                                                 Stanislaus, Merced, Madera, Fresno,                                                                               CARB for approval and submission to
                                                                                                          2008 Ozone SRR is codified at 40 CFR
                                                 Tulare, and Kings counties, and the                                                                               the EPA.
                                                                                                          part 51, subpart AA. We discuss the
                                                 western portion of Kern County. The
                                                                                                          CAA and regulatory requirements for                         The 2016 Ozone Plan submission
                                                 San Joaquin Valley nonattainment area
                                                                                                          the elements of 2008 ozone plans                         consists of documents originating from
                                                 stretches over 250 miles from north to
                                                                                                          relevant to this proposal in more detail                 the District (e.g., the 2016 Ozone Plan
                                                 south, averages a width of 80 miles, and
                                                                                                          below.                                                   with Appendices and the District
                                                 encompasses over 23,000 square miles.
                                                                                                             The EPA’s 2008 Ozone SRR was                          Governing Board Resolution) and CARB
                                                 It is partially enclosed by the Coast
                                                                                                          challenged, and on February 16, 2018,                    (e.g., the CARB Staff Report and
                                                 Mountain range to the west, the
                                                                                                                                                                   Appendices, and the CARB Resolution
                                                 Tehachapi Mountains to the south, and                    the U.S. Court of Appeals for the D.C.
                                                                                                                                                                   adopting the 2016 Ozone Plan and
                                                 the Sierra Nevada range to the east.9                    Circuit (‘‘D.C. Circuit’’) published its
                                                    The population of the San Joaquin                                                                              CARB Staff Report as a SIP revision).16
                                                                                                          decision in South Coast Air Quality
                                                 Valley in 2015 was estimated to be                                                                                The 2016 Ozone Plan addresses the
                                                                                                          Management. District v. EPA 13 (‘‘South
                                                 nearly 4.2 million people and is                                                                                  requirements for base year and projected
                                                                                                          Coast II’’) 14 vacating portions of the
                                                 projected to increase by 25.3 percent in                                                                          future year emissions inventories, air
                                                                                                          2008 Ozone SRR. The only aspect of the
                                                 2030 to over 5.2 million people.10                                                                                quality modeling demonstrating
                                                                                                          South Coast II decision that affects this
                                                 Ambient 8-hour ozone concentrations in                                                                            attainment of the 2008 ozone NAAQS
                                                                                                          proposed action is the vacatur of the                    by the applicable attainment year,
                                                 the San Joaquin Valley are above the                     alternative baseline year for RFP plans.
                                                 level of the 2008 ozone standards. The                                                                            provisions demonstrating
                                                                                                          More specifically, the 2008 Ozone SRR                    implementation of reasonably available
                                                 maximum design value for the area                        required states to develop the baseline
                                                 based on certified data is 0.092 ppm for                                                                          control measures (RACM), provisions
                                                                                                          emissions inventory for RFP plans using                  for advanced technology/clean fuels for
                                                 the 2015–2017 period, which was                          the emissions for the most recent
                                                 measured at the Parlier monitor (Air                                                                              boilers, provisions for transportation
                                                                                                          calendar year for which states submit a                  control strategies and measures, a
                                                 Quality System ID: 06–019–4001).11                       triennial inventory to the EPA under                     demonstration of RFP, motor vehicle
                                                 C. CAA and Regulatory Requirements                       subpart A (‘‘Air Emissions Reporting                     emissions budgets, and contingency
                                                 for 2008 8-Hour Ozone Nonattainment                      Requirements’’) of 40 CFR part 51,                       measures for failure to make RFP or
                                                 Area SIPs                                                which was 2011. However, the 2008                        attain, among other requirements. On
                                                                                                          Ozone SRR allowed states to use an                       August 31, 2018, the EPA proposed
                                                   States must implement the 2008                         alternative year, between 2008 and
                                                 ozone standards under Title 1, part D of                                                                          approval of the attainment
                                                                                                          2012, for the baseline emissions                         demonstration portion of the 2016
                                                 the CAA, which includes sections 171–                    inventory provided that the state
                                                 179B of subpart 1 (‘‘Nonattainment                                                                                Ozone Plan and associated attainment
                                                                                                          demonstrated why the alternative                         year motor vehicle emission budgets,
                                                 Areas in General’’) and sections 181–
                                                                                                          baseline year was appropriate. The                       the RACM demonstration, provisions for
                                                   8 See 40 CFR 51.105. For the purposes of the
                                                                                                          baseline emissions inventory for the                     advanced technology/clean fuels for
                                                 CAA, the ‘‘applicable plan’’ is composed of any          RFP demonstration for the 2016 Ozone                     boilers, and provisions for
                                                 portions of the SIP that are approved by the EPA         Plan was based on an alternative year of                 transportation control strategies and
                                                 together with any provisions promulgated by the          2012 rather than 2011. In the South
                                                 EPA as substitutes for portions of the SIP
                                                                                                                                                                   measures.17
                                                 disapproved by the EPA. 40 CFR 52.02(b).
                                                                                                          Coast II decision, the D.C. Circuit
                                                 Provisions promulgated by the EPA as SIP                 vacated the provisions of the 2008                          15 See letter from Richard Corey, Executive
                                                 substitutes are referred to as federal implementation    Ozone SRR that allowed states to use an                  Officer, CARB, to Alexis Strauss, Acting Regional
                                                 plans, or FIPs.                                          alternative baseline year for                            Administrator, EPA Region IX, dated August 24,
                                                   9 For a precise definition of the boundaries of the                                                             2016.
                                                                                                          demonstrating RFP.
                                                 San Joaquin Valley 2008 ozone nonattainment area,                                                                    16 See four enclosures to the August 24, 2016
                                                 see 40 CFR 81.305.                                                                                                letter from CARB to EPA Region 9: (I) District
                                                   10 The population estimates and projections              12 See 80 FR 12264, March 6, 2015.                     Submission, including letter from Sheraz Gill,
                                                 include all of Kern County, not just the portion of        13 South  Coast Air Quality Management District v.     Director of Strategies and Incentives for the District,
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                                                 Kern County within the jurisdiction of the               EPA, 882 F.3d 1138 (D.C. Cir. 2018) (‘‘South Coast       to Richard Corey, Executive Officer, CARB, and five
                                                 SJVAPCD. See chapter 1 and table 1–1 of the              II’’).                                                   appendices titled: (1) ARB SIP Completeness
                                                 District’s 2016 Ozone Plan.                                 14 The term ‘‘South Coast II’’ is used in reference   Checklist, (2) 2016 Ozone Plan with Appendices,
                                                   11 See Air Quality System (AQS) Design Value           to the 2018 court decision to distinguish it from a      (3) Governing Board Resolution Adopting the 2016
                                                 Report, 20180621_DVRpt_SJV_2008–8hrO3_2015–              decision published in 2006 also referred to as           Ozone Plan, (4) Governing Board Memo, and (5)
                                                 2017.pdf in the docket for this proposed action. The     ‘‘South Coast.’’ The earlier decision involved a         Evidence of Public Hearing; (II) CARB Evidence of
                                                 AQS is a database containing ambient air pollution       challenge to the EPA’s Phase 1 implementation rule       Public Notice and Transcript; (III) CARB Staff
                                                 data collected by the EPA and state, local, and tribal   for the 1997 ozone standard. South Coast Air             Report; (IV) CARB Resolution 16–8 adopting the
                                                 air pollution control agencies from over thousands       Quality Management Dist. v. EPA, 472 F.3d 882            2016 Ozone Plan and CARB Staff Report.
                                                 of monitors.                                             (D.C. Cir. 2006).                                           17 83 FR 44528 (August 31, 2018).




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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                  61349

                                                    In response to the court’s decision in               architectural coatings rule to create an              procedural requirements for public
                                                 South Coast II vacating the 2008 Ozone                  additional contingency measure that                   notice and hearing in CAA sections
                                                 SRR with respect to the use of an                       will be triggered if the area fails to meet           110(a) and 110(l) and 40 CFR 51.102.
                                                 alternate baseline year for                             RFP or to attain by the applicable
                                                 demonstrating RFP, California                           attainment date.22 23 In the October 30,              III. Evaluation of the 2016 Ozone Plan
                                                 developed the 2018 SIP Update, which                    2018 letter, CARB commits to submit                   and 2018 SIP Update
                                                 includes an RFP demonstration for the                   the revised District rule to the EPA as               A. Emissions Inventories
                                                 San Joaquin Valley for the 2008 ozone                   a SIP revision within 12 months of the
                                                 NAAQS using the required 2011                           final action on the 2016 Ozone Plan and               1. Statutory and Regulatory
                                                 baseline year. The 2018 SIP Update also                 relevant portions of the 2018 SIP                     Requirements
                                                 includes updated motor vehicle                          Update.
                                                 emission budgets and a contingency                                                                               CAA section 172(c)(3) requires that
                                                 measure for failure to meet an RFP                      B. Clean Air Act Procedural                           each nonattainment plan SIP
                                                 milestone or attain the NAAQS by the                    Requirements for Adoption and                         submission include a ‘‘comprehensive,
                                                 applicable attainment date. CARB                        Submission of SIP Revisions                           accurate, current inventory of actual
                                                 released a draft of the 2018 SIP Update                    CAA sections 110(a)(1) and (2) and                 emissions from all sources of the
                                                 for public review on September 21,                      110(l) require a state to provide                     relevant pollutant or pollutants in [the]
                                                 2018. On October 3, 2018, CARB                          reasonable public notice and                          area.’’ The accounting required by this
                                                 requested that the EPA accept the draft                 opportunity for public hearing prior to               section provides a ‘‘base year’’ inventory
                                                 2018 SIP Update for parallel processing                 the adoption and submission of a SIP or               that serves as the starting point for
                                                 with respect to the portions of the 2018                SIP revision. To meet these procedural                attainment demonstration air quality
                                                 SIP Update that apply to the San                        requirements, every SIP submission                    modeling, for assessing RFP, and for
                                                 Joaquin Valley area.18 Under the EPA’s                  should include evidence that the state                determining the need for additional SIP
                                                 parallel processing procedure, the EPA                  provided adequate public notice and an                control measures. EPA regulations
                                                 may propose action on a public draft                    opportunity for a public hearing                      require that the inventory year be
                                                 version of a SIP revision but will take                 consistent with the EPA’s implementing                consistent with the baseline year for the
                                                 final action only after the state adopts                regulations in 40 CFR 51.102.                         RFP demonstration, which is the most
                                                 and submits the final version to the EPA                   The San Joaquin Valley District Board              recent calendar year for which a
                                                 for approval.19 If there are no significant             adopted the 2016 Ozone Plan on June                   complete triennial inventory is required
                                                 changes from the draft version of the SIP               16, 2016, following a public hearing.                 to be submitted to the EPA under the
                                                 revision to the final version, the EPA                  CARB adopted the 2016 Ozone Plan as                   Air Emissions Reporting
                                                 may elect to take final action on the                   a revision to the California SIP on July              Requirements.24
                                                 proposal. In this case, on October 25,                  21, 2016, following a public hearing.
                                                 2018, CARB has adopted the 2018 SIP                                                                              Future baseline emissions inventories
                                                                                                         Both the District and CARB have
                                                 Update previously released for public                                                                         must reflect the most recent population,
                                                                                                         satisfied the applicable statutory and
                                                 review, without significant                                                                                   employment, travel and congestion
                                                                                                         regulatory requirements for reasonable
                                                 modifications, as a revision to the                                                                           estimates for the area.25 Future baseline
                                                                                                         public notice and hearing prior to the
                                                 California SIP. The only change of note                 adoption and submission of the 2016                   emissions inventories are necessary to
                                                 between the draft and final versions is                 Ozone Plan. Therefore, we find that the               show the projected effectiveness of SIP
                                                 a menu of specific contingency measure                  submission of the 2016 Ozone Plan                     control measures. Both the base year
                                                 actions that the CARB Board included                    meets the procedural requirements for                 and future year inventories are
                                                 in the resolution (Resolution 18–50)                    public notice and hearing in CAA                      necessary for photochemical modeling
                                                 adopting the 2018 SIP Update. CARB                      sections 110(a) and 110(l) and 40 CFR                 to demonstrate attainment.
                                                 has not yet submitted the final version                 51.102.                                                  The EPA has issued guidance on the
                                                 of the SIP revision to the EPA, and thus                   CARB published the 2018 SIP Update                 development of base year and future
                                                 we are proposing action based on the                    for public review on September 21,                    year emissions inventories for ozone
                                                 draft version of the 2018 SIP Update                    2018, and adopted the document as a                   and other pollutants.26 Emissions
                                                 submitted to us on October 3, 2018, and                 revision to the California SIP following              inventories for ozone must include
                                                 the contents of CARB Resolution 18–50.                  a public hearing on October 25, 2018.                 emissions of VOC and NOX and
                                                    In addition to these submissions,                    As noted above, CARB has not yet                      represent emissions for a typical ozone
                                                 CARB sent additional technical                          submitted the final version of the 2018
                                                 information in two technical                            SIP Update to the EPA, but we expect                    24 See 2008 Ozone SRR at 40 CFR 51.1115(a) and
                                                 supplements on October 17, 2018,20 and                  to find that CARB has satisfied the                   the Air Emissions Reporting Requirements at 40
                                                 October 19, 2018.21 Further, on October                 applicable statutory and regulatory                   CFR part 51 subpart A.
                                                 30, 2018, CARB forwarded a letter of                    requirements for reasonable public
                                                                                                                                                                 25 See Emissions Inventory Guidance for

                                                 commitment to the EPA from the                                                                                Implementation of Ozone and Particulate Matter
                                                                                                         notice and hearing prior to the adoption              National Ambient Air Quality Standards (NAAQS)
                                                 District dated October 18, 2018, in                     of the 2018 SIP Update. Therefore, once               and Regional Haze Regulations, EPA–454/B–17–
                                                 which the District commits to revise its                we receive the final version, we expect               003, July 2017, chapter 5, Developing Projected
                                                                                                         to conclude that the submission of the                Emissions Inventories, pages 113–129.
                                                   18 Letter from Richard Corey, CARB Executive                                                                  26 See ‘‘Emissions Inventory Guidance for

                                                 Officer, to Michael Stoker, EPA Region IX Regional      2018 SIP Update also meets the                        Implementation of Ozone and Particulate Matter
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                                                 Administrator, dated October 3, 2018.                                                                         National Ambient Air Quality Standards (NAAQS)
                                                   19 See 40 CFR part 51, appendix V.                      22 Letter from Dr. Michael Benjamin, Chief, Air
                                                                                                                                                               and Regional Haze Regulations,’’ (‘‘EI Guidance’’),
                                                   20 Email from Sylvia Vanderspek, Chief, CARB          Quality Planning and Science Division, CARB, to       EPA–454/B–17–002, May 2017. At the time the
                                                 Air Quality Planning Branch, to Anita Lee, Chief,       Mike Stoker, EPA Region IX Regional                   2016 Ozone Plan was developed, the following EPA
                                                 EPA Region IX Air Planning Office, dated October        Administrator, dated October 30, 2018.                emissions inventory guidance applied: ‘‘Emissions
                                                 17, 2018.                                                 23 Letter from Sheraz Gill, SJVAPCD Deputy Air      Inventory Guidance for Implementation of Ozone
                                                   21 Email from Sylvia Vanderspek, Chief, CARB          Pollution Control Officer, to Richard Corey, CARB     and Particulate Matter National Ambient Air
                                                 Air Quality Planning Branch, to Anita Lee, Chief,       Executive Officer, and to Michael Stoker, EPA         Quality Standards (NAAQS) and Regional Haze
                                                 EPA Region IX Air Planning Office, dated October        Region IX Regional Administrator, dated October       Regulations’’ (‘‘EI Guidance’’), EPA–454–R–05–001,
                                                 19, 2018.                                               18, 2018.                                             November 2005.



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                                                 61350               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 season weekday.27 States should                         formation, across all source categories               (e.g., vehicle miles traveled). The
                                                 include documentation explaining how                    during an ozone season day as defined                 District utilizes different methodologies
                                                 it calculated emissions data. In                        in 40 CFR 51.1100(cc). The 2016 Ozone                 to estimate over sixty different types of
                                                 estimating mobile source emissions,                     Plan has identified the summer, defined               individual stationary area sources.
                                                 states should use the latest emissions                  as May through October, as the time                   CARB and the District also reviewed the
                                                 models and planning assumptions                         when the highest concentration of ozone               growth profiles for point and areawide
                                                 available at the time it develops the SIP               is formed.                                            source categories and updated them as
                                                 submission.28                                              A description of base year emissions               necessary to ensure that the emission
                                                                                                         inventory development can be found in                 projections were based on data that
                                                 2. Summary of the State’s Submissions                   the 2016 Ozone Plan, chapter 3.11                     reflect historical trends, current
                                                    The 2016 Ozone Plan includes a 2012                  through 3.11.2. The complete emissions                conditions, and recent economic and
                                                 base year emissions inventory based on                  inventory and documentation are found                 demographic forecasts.
                                                 actual emissions, to meet the                           in Appendix B (‘‘Emissions Inventory’’).                 CARB provided emission estimates
                                                 requirements of CAA sections 172(c)(3)                     VOC and NOX emissions are grouped                  for stationary nonagricultural diesel
                                                 and 182(a)(1). The 2018 SIP Update                      into two general categories: stationary               engines, agricultural irrigation pumps,
                                                 does not include a new base year                        sources and mobile sources. Stationary                laundering (dry cleaning), degreasing
                                                 emissions inventory with actual                         sources are further divided into ‘‘point’’            (solvents), oil and gas production, and
                                                 emissions; rather, for purposes of                      and ‘‘area’’ sources. Point sources                   gasoline dispensing facilities.
                                                 updating the RFP demonstration, the                     typically refer to permitted facilities that
                                                 transportation conformity motor vehicle                 have one or more identified and fixed                    Area sources are categories such as
                                                 emission budgets, and the contingency                   pieces of equipment and emissions                     consumer products, pesticides/
                                                 measure calculations, CARB used the                     points. Permitted facilities were                     fertilizers, fireplaces, farming
                                                 2012 base year inventory from the 2016                  required to report their actual emissions             operations, and other emissions which
                                                 Ozone Plan to create new emissions                      to the District by the facility operators             occur over a wide geographic area.
                                                 inventory projections for the 2011 RFP                  through the calendar year 2012.                       Emissions for these categories were
                                                 baseline year and for RFP milestone                     Stationary area sources are many                      estimated by both CARB and the District
                                                 years. These new projections are                        smaller point sources, and include                    using various models and
                                                 included in the 2018 SIP Update. CARB                   sources that have internal combustion                 methodologies.
                                                 also submitted a ‘‘San Joaquin Valley                   engines, and gasoline dispensing                         CARB developed the emissions
                                                 Emission Projection Technical                           facilities (gas stations). These sources              inventory for mobile sources, both on-
                                                 Clarification’’ to clarify how it                       are not inventoried individually; their               road and off-road. CARB estimated on-
                                                 calculated the projected inventories in                 emissions are estimated as a group and                road mobile sources emissions, which
                                                 this submission.29 The EPA has                          reported as a single source category.                 include passenger vehicles, buses, and
                                                 evaluated the 2012 base year inventory                     Area sources consist of widespread                 trucks, using CARB’s EMFAC2014
                                                 from the 2016 Ozone Plan to determine                   and numerous smaller emission sources,                model.30 CARB calculated the on-road
                                                 whether it meets the requirements for a                 such as small permitted facilities and                emissions by applying EMFAC2014
                                                 base year inventory in CAA sections                     households.                                           emission factors to the transportation
                                                 172(c)(3) and 182(a)(1), and the                           The mobile sources category can be                 activity data provided by the local San
                                                 projected inventories included in the                   divided into two major subcategories:                 Joaquin Valley transportation agencies
                                                 2018 SIP Update to determine whether                    ‘‘on-road’’ and ‘‘off-road’’ mobile                   from their 2014 adopted Regional
                                                 they are appropriate for use in the                     sources. On-road mobile sources                       Transportation Plan. CARB estimated
                                                 updated RFP demonstration and other                     include light-duty automobiles, light-,               off-road mobile sources emissions using
                                                 purposes (e.g., establishing revised                    medium-, and heavy-duty trucks, and                   either newer category-specific models
                                                 motor vehicle emissions budgets). A                     motorcycles. Off-road mobile sources                  or, where a new model was not
                                                 summary of these submissions, and the                   include aircraft, locomotives,                        available, the OFFROAD2007 model.
                                                 results of our evaluation, are discussed                construction equipment, mobile
                                                                                                                                                                  Table 1 provides a summary, by major
                                                 below.                                                  equipment, and recreational vehicles.
                                                                                                            The emissions inventories for the San              source categories, for the 2012 base year
                                                 a. 2016 Ozone Plan                                      Joaquin Valley 2008 ozone                             VOC and NOX emissions inventories in
                                                                                                         nonattainment area in the 2016 Ozone                  tons per day (tpd) for the San Joaquin
                                                   The 2016 Ozone Plan includes a 2012                                                                         Valley 2008 ozone nonattainment area,
                                                 base year emissions inventory for the                   Plan were developed jointly by CARB
                                                                                                         and the District. Data were provided by               as presented in the 2016 Ozone Plan. In
                                                 San Joaquin Valley nonattainment area,                                                                        the 2012 inventory presented in the
                                                 based on actual emissions, to fulfill the               CARB, the California Department of
                                                                                                         Transportation, the Department of                     2016 Ozone Plan, mobile sources
                                                 requirements in CAA sections 172(c)(3)                                                                        account for approximately 85 percent of
                                                 and 182(a)(1). The inventory includes                   Motor Vehicles, the Department of
                                                                                                         Pesticide regulation, the California                  NOX emissions and 32 percent of VOC
                                                 VOC and NOX emissions, because these                                                                          emissions in the San Joaquin Valley,
                                                 pollutants are precursors to ozone                      Energy Commission and regional
                                                                                                         transportation agencies to develop                    and total area sources account for
                                                   27 40 CFR 51.1115(a) and (c), and 40 CFR              mobile and area-wide source emission                  approximately 1.3 percent of NOX
                                                                                                                                                               emissions and 50 percent of VOC
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                                                 51.1100(bb) and (cc).                                   estimates. The emission estimates
                                                   28 See 80 FR 12264, at 12290 (March 6, 2015).         reflect reported emissions for point                  emissions.
                                                   29 Email from Stephanie Huber, Manager, CARB
                                                                                                         sources, whereas estimates for mobile                   30 The EPA approved EMFAC2014 for use in SIP
                                                 Emission Inventory Development Section to Larry         and area sources are based on
                                                 Biland, EPA Region IX Air Quality Analysis Office,                                                            development and transportation conformity in
                                                 dated October 17, 2018, transmitting ‘‘San Joaquin
                                                                                                         projections obtained through use of                   California at 80 FR 77337 (December 14, 2015).
                                                 Valley Emission Projections Technical                   emissions models and methodologies                    EMFAC2014 is the most recently-approved model
                                                 Clarification.’’                                        along with actual activity data for 2012              for California for these uses.




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                                                                            Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                                                        61351

                                                                        TABLE 1—BASE YEAR SUMMER AVERAGE VOC AND NOX EMISSIONS IN THE 2016 OZONE PLAN
                                                                                                                                                  [In tons per day]

                                                                                                                                                                                                                                           2012
                                                                                                                        Source category
                                                                                                                                                                                                                               VOC (tpd)           NOX (tpd)

                                                 Stationary Sources ..................................................................................................................................................                85.3                42.4
                                                 Area Sources ...........................................................................................................................................................            147.0                 4.7
                                                 Mobile Sources ........................................................................................................................................................             105.0               292.4
                                                 San Joaquin Valley Total .........................................................................................................................................                  337.3               339.6
                                                    Source: Tables B–1 and B–2 of the 2016 Ozone Plan.


                                                 b. 2018 SIP Update                                                           As in the 2016 Ozone Plan, the                                          2016 Ozone Plan. While the 2016 Ozone
                                                                                                                           projected inventories in the 2018 SIP                                      Plan used California Emissions
                                                   In response to the South Coast II                                       Update include NOX and VOC                                                 Projections and Analysis Model
                                                 decision, CARB developed the 2018 SIP                                     emissions and are for the summer                                           (CEPAM) version 1.03 to project future
                                                 Update, which updates the RFP                                             season defined as May through October.                                     year emissions, the 2018 SIP Update
                                                 demonstration and related SIP elements                                    Details on the emissions inventory,                                        used CEPAM version 1.05. CEPAM 1.05
                                                 to rely on a 2011 baseline year. The                                      documentation, and a complete listing                                      includes updates to methodologies for
                                                 2018 SIP Update does not include a new                                    of emissions can be found on pages 51                                      stationary and area sources in the
                                                 base year emissions inventory with                                        through 54 and Appendix A, pages A–                                        following source categories: pesticides,
                                                 actual emissions for the San Joaquin                                      27 through A–30 of the 2018 SIP                                            cleaning and surface coatings, waste
                                                 Valley 2008 ozone nonattainment area                                      Update. Additional emissions inventory                                     disposal, composting facilities, glass
                                                 to meet the requirements of 172(c)(3)                                     information can be found in the ‘‘San                                      manufacturing, services and
                                                 and 182(a)(1). Rather, for purposes of                                    Joaquin Valley Emission Projections                                        commercial/residential fuel
                                                 the RFP demonstration, CARB used the                                      Technical Clarification’’ document                                         combustion-space heating, and
                                                 2012 base year inventory from the 2016                                    which explains the changes made in the                                     petroleum marketing. CARB used
                                                 Ozone Plan to develop new emissions                                       methodologies used in emissions                                            current information to update emissions
                                                 inventory projections for the 2011 RFP                                    inventory development. This document                                       from locomotives. For the rest of the
                                                 baseline year and for all RFP milestone                                   is contained in the docket for this                                        source categories in the emissions
                                                 years. These inventories form the basis                                   rulemaking.                                                                inventory, CARB used the same
                                                 of the RFP demonstration calculations,                                       The State and District developed                                        methodologies as in the 2016 Ozone
                                                 the motor vehicle emissions budgets,                                      point and stationary source VOC and                                        Plan.
                                                 and the contingency measure                                               NOX emissions for the 2011 inventory                                          Tables 2 and 3 provide summaries, by
                                                 calculations for the San Joaquin Valley                                   from actual emissions, generally using                                     major source categories, for VOC and
                                                 2008 ozone nonattainment area, which                                      the same methodologies used in the                                         NOX emissions inventories for RFP
                                                 will be discussed in sections III.B, III.C,                               2016 Ozone Plan. Stationary aggregate                                      baseline and milestone years. These
                                                 and III.D below. In this section, we                                      emissions and area source emissions for                                    emissions are for the San Joaquin Valley
                                                 describe and evaluate these updated                                       2011 were backcast, and for future years                                   2008 ozone nonattainment area as
                                                 inventory projections to determine                                        were forecast, from the 2012 base year                                     presented in the Appendix A, pages A–
                                                 whether they are appropriate for use in                                   inventory. Mobile sources used the                                         27 through A–30 of the 2018 SIP
                                                 these SIP elements.                                                       same model, EMFAC2014, as in the                                           Update.

                                                                                             TABLE 2—SUMMER AVERAGE VOC EMISSIONS IN THE 2018 SIP UPDATE
                                                                                                                                                  [In tons per day]

                                                                Source category                                 2011                 2017                 2020                2023                 2026                2029           2031            2032

                                                                                                                                                       VOC (tpd)

                                                 Stationary Sources ...........................                    83.36                89.55                91.70               94.54                97.86                 101.58     104.22           105.62
                                                 Area Sources ...................................                 180.76               148.50               149.80              151.14               152.56                 154.00     154.98           155.49
                                                 Mobile Sources ................................                  114.56                72.52                62.27               54.55                49.88                  46.31      43.72            42.87
                                                      San Joaquin Valley Total ..........                         378.68               310.58               303.77              300.22               300.30                 301.89     302.93           303.98
                                                    Source: Pages A–27 and A–28 of the 2018 SIP Update.

                                                                                             TABLE 3—SUMMER AVERAGE NOX EMISSIONS IN THE 2018 SIP UPDATE
                                                                                                                                                  [In tons per day]
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                                                               Source Category                                  2011                 2017                 2020                2023                 2026                2029           2031            2032

                                                                                                                                                       NOX (tpd)

                                                 Stationary Sources ...........................                    43.05                30.72                29.95               29.29                28.59                  28.10         27.85         27.86
                                                 Area Sources ...................................                   6.84                 4.68                 4.59                4.43                 4.29                   4.21          4.15          4.11
                                                 Mobile Sources ................................                  325.70               208.01               173.40              124.73               110.12                  98.81         93.04         90.92




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                                                 61352               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                                         TABLE 3—SUMMER AVERAGE NOX EMISSIONS IN THE 2018 SIP UPDATE—Continued
                                                                                                                            [In tons per day]

                                                            Source Category                         2011          2017           2020               2023        2026          2029          2031           2032

                                                 San Joaquin Valley Total .................          375.58        238.41         207.94             158.44      143.01        131.12         125.03         122.89
                                                    Source—Pages A–29 and A–30 of the 2018 SIP Update.


                                                   With respect to future year                             year inventory set forth in CAA section                demonstrate a 15 percent reduction in
                                                 projections, the EPA will approve a state                 182(a)(1) and 40 CFR 51.1115.                          VOC between the years of 1990 and
                                                 plan that takes emissions reduction                       Regarding the requirement in the 2008                  1996. The EPA has typically referred to
                                                 credit for a control measure only where                   Ozone SRR that the base year inventory                 section 182(b)(1) as the Rate of Progress
                                                 the EPA has approved the measure as                       be consistent with the baseline year for               (ROP) requirement. For ozone
                                                 part of the SIP. Thus, to take credit for                 the RFP demonstration, we note that                    nonattainment areas classified as
                                                 the emissions reductions from newly-                      2012 is the year of the base year                      Serious or higher, section 182(c)(2)(B)
                                                 adopted or amended District rules for                     inventory, while the RFP demonstration                 requires reductions averaged over each
                                                 stationary sources, the related rules                     is based on a 2011 baseline year.                      consecutive 3-year period, beginning 6
                                                 must be approved by the EPA into the                      However, as noted above, the 2011                      years after the baseline year until the
                                                 SIP. Table 1 in the technical support                     emissions inventory is backcast from the               attainment date, of at least 3 percent of
                                                 document (TSD) accompanying this                          2012 base year inventory, and therefore                baseline emissions per year. The
                                                 rulemaking shows District rules that                      is based on the same data. Therefore, we               provisions in CAA section
                                                 were incorporated in the future year                      find that selection of 2012 as the base                182(c)(2)(B)(ii) allow an amount less
                                                 inventories, along with information on                    year for the emissions inventory is                    than 3 percent of such baseline
                                                 EPA approval of these rules. In recent                    consistent with the 2011 baseline year                 emissions each year if the state
                                                 years, the EPA has taken action to                        for the RFP demonstration for this                     demonstrates to the EPA that the plan
                                                 approve CARB mobile source                                nonattainment area as required by 40                   includes all measures that can feasibly
                                                 regulations into the California SIP.31                    CFR 51.1115(a).                                        be implemented in the area in light of
                                                 Inventories in the 2018 SIP Update                           The 2018 SIP Update starts with 2011                technological achievability.
                                                 include these controls in their                           as the baseline year and shows future                     In the 2008 Ozone SRR, the EPA
                                                 projections.                                              baseline emissions inventories out to                  provided that areas classified Moderate
                                                                                                           2032. The EPA is proposing to find                     or higher will have met the ROP
                                                 3. The EPA’s Review of the State’s                                                                               requirements of CAA section 182(b)(1) if
                                                 Submission                                                these inventories appropriate for use in
                                                                                                           developing the RFP demonstration                       the area has a fully approved 15 percent
                                                    We have reviewed the base year                         (section III.B below), motor vehicle                   ROP plan for the 1-hour or 1997 8-hour
                                                 emissions inventory in the 2016 Ozone                     emissions budgets (section III.C below),               ozone standards, provided the
                                                 Plan and the RFP baseline and                             and the contingency measure element                    boundaries of the ozone nonattainment
                                                 milestone year inventories in the 2018                    for the San Joaquin Valley for the 2008                areas are the same.33 For such areas, the
                                                 SIP Update for the San Joaquin Valley                     ozone standards (section III.D below).32               EPA interprets the RFP requirements of
                                                 2008 ozone nonattainment area for                                                                                CAA section 172(c)(2) to require areas
                                                 consistency with CAA requirements and                     B. Rate of Progress Plan and Reasonable                classified as Moderate to provide a 15
                                                 EPA guidance. First, as required by EPA                   Further Progress Demonstration                         percent emission reduction of ozone
                                                 regulation, we note that the inventories                  1. Statutory and Regulatory                            precursors within 6 years of the baseline
                                                 include estimates for VOC and NOX for                                                                            year. Areas classified as Serious or
                                                                                                           Requirements
                                                 a typical ozone season weekday, and                                                                              higher must meet the RFP requirements
                                                 that CARB has provided adequate                              Requirements for RFP for ozone                      of CAA section 182(c)(2)(B) by
                                                 documentation explaining how the                          nonattainment areas are specified in                   providing an 18 percent reduction of
                                                 emissions are calculated. Second, we                      CAA sections 172(c)(2), 182(b)(1), and                 ozone precursors in the first 6-year
                                                 find that the 2012 base year emissions                    182(c)(2)(B). CAA section 172(c)(2)                    period, and an average ozone precursor
                                                 inventory in the 2016 Ozone Plan                          requires that plans for nonattainment                  emission reduction of 3 percent per year
                                                 reflects appropriate emissions models                     areas provide for RFP, which is defined                for all remaining 3-year periods
                                                 and methodologies, and, therefore,                        as such annual incremental reductions                  thereafter.34 Under the CAA 172(c)(2)
                                                 represents a comprehensive, accurate,                     in emissions of the relevant air pollutant             and CAA 182(c)(2)(B) RFP requirements,
                                                 and current inventory of actual                           as are required under part D (‘‘Plan                   the state may substitute NOX emissions
                                                 emissions during that year in the San                     Requirements for Nonattainment                         reductions for VOC reductions.35
                                                 Joaquin Valley nonattainment area.                        Areas’’) or may reasonably be required
                                                 Further, we find that CARB and the                        by the EPA for the purpose of ensuring                   33 See 70 FR 12264 at 12271 (March 6, 2015). In

                                                 District have used the most recent                        attainment of the applicable NAAQS by                  our August 31, 2018 proposed action on certain
                                                 planning and activity assumptions,                        the applicable date. CAA section                       portions of the 2016 Ozone Plan, we proposed to
                                                 emissions models, and methodologies in                    182(b)(1) specifically requires that                   approve the ROP demonstration as meeting the
                                                                                                                                                                  requirements of CAA section 182(b)(1) based on the
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                                                 developing the RFP baseline and                           ozone nonattainment areas that are                     previous approval by the EPA of the 15 percent
                                                 milestone year emissions inventories in                   classified as Moderate or above                        ROP demonstration for the San Joaquin Valley for
                                                 the 2018 SIP Update.                                                                                             the 1-hour ozone NAAQS. See 83 FR 44528, at
                                                    Therefore, the EPA is proposing to                        32 We previously determined that the 2012 base      44539 (August 31, 2018). Therefore, we do not
                                                                                                           year emission inventory and future year emissions      further address the ROP demonstration requirement
                                                 approve the 2012 emissions inventory                                                                             in this document.
                                                                                                           inventories that are derived therefrom in the 2016
                                                 as meeting the requirements for a base                    Ozone Plan provide an acceptable basis for the           34 Id.

                                                                                                           attainment demonstration and VMT offset                  35 See 40 CFR 51.1110(a)(2)(i)(C) and 40 CFR
                                                   31 See 81 FR 39424 (June 16, 2016), 82 FR 14446         demonstration in the 2016 Ozone Plan. See 83 FR        51.1110(a)(2)(ii)(B); and 70 FR 12264 at 12271
                                                 (March 21, 2017), and 83 FR 23232 (May 18, 2018).         44528, at 44532/column 1. (August 31, 2018).           (March 6, 2015).



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                                                                                Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                                         61353

                                                    Except as specifically provided in                                                regulations concerning Reid vapor                          opportunity to use an alternative
                                                 CAA section 182(b)(1)(C), emissions                                                  pressure promulgated by November 15,                       baseline year for RFP but that particular
                                                 reductions from all SIP-approved,                                                    1990; measures to correct previous                         aspect of the 2008 Ozone SRR was
                                                 federally promulgated, or otherwise SIP-                                             RACT requirements; and, measures                           vacated by the D.C. Circuit in the South
                                                 creditable measures that occur after the                                             required to correct previous inspection                    Coast II decision.37
                                                 baseline year are creditable for purposes                                            and maintenance (I/M) programs.36
                                                                                                                                                                                                 2. Summary of the State’s Submission
                                                 of demonstrating that the RFP targets are                                               The 2008 Ozone SRR requires the RFP
                                                 met. Because the EPA has determined                                                  baseline year to be the most recent                           The 2018 SIP Update replaces the RFP
                                                 that the passage of time has caused the                                              calendar year for which a complete                         portion of the 2016 Ozone Plan and
                                                 effect of certain exclusions to be de                                                triennial inventory was required to be                     includes updated emissions estimates
                                                 minimis, the RFP demonstration is no                                                 submitted to the EPA. For the purposes                     for the baseline, milestone and
                                                 longer required to calculate and                                                     of developing RFP demonstrations for                       attainment years, and an updated RFP
                                                 specifically exclude reductions from                                                 the 2008 ozone standards, the                              demonstration relying on a 2011
                                                 measures related to motor vehicle                                                    applicable triennial inventory year is                     baseline year.38 The updated RFP
                                                 exhaust or evaporative emissions                                                     2011. As discussed previously, the 2008                    demonstration is shown in table 4
                                                 promulgated by January 1, 1990;                                                      Ozone SRR provided states with the                         below:
                                                                                  TABLE 4—REASONABLE FURTHER PROGRESS DEMONSTRATION IN THE 2018 SIP UPDATE
                                                                                                                                                                                     VOC (tpd)

                                                                                                                               2011                  2017              2020             2023             2026             2029            2031

                                                 Baseline VOC ................................................                         378.7               310.6           303.8           300.2             300.3            301.9            302.9
                                                 Transportation Conformity Safety Margin .....                                             0                   0               0               0                 0                0                0
                                                 Baseline VOC + Safety Margin .....................                                    378.7               310.6           303.8           300.2             300.3            301.9            302.9
                                                 Required % change since 2011 (VOC or
                                                   NOX) ..........................................................      ........................            18%            27%              36%              45%              54%             60%
                                                 Required tpd reductions since 2011 .............                       ........................            68.2          102.2            136.3            170.4            204.5           227.2
                                                 Target VOC Level .........................................             ........................           310.5          276.4            242.4            208.3            174.2           151.5
                                                 Apparent Shortfall (¥)/Surplus (+) in VOC ..                           ........................           ¥0.1           ¥27.3            ¥57.9            ¥92.0           ¥127.7          ¥151.5
                                                 Apparent Shortfall (¥)/Surplus (+) in VOC,
                                                   % ................................................................   ........................             0%           ¥7.2%          ¥15.3%           ¥24.3%           ¥33.7%           ¥40.0%
                                                 VOC Shortfall previously provided by NOX
                                                   Substitution, % ...........................................          ........................             0%              0%            7.2%             15.3%           24.3%            33.7%
                                                 Actual VOC shortfall (¥)/surplus (+), % .......                        ........................             0%           ¥7.2%           ¥8.1%             ¥9.0%           ¥9.4%            ¥6.3%

                                                                                                                                                                                     NOX (tpd)

                                                                                                                               2011                  2017              2020             2023             2026             2029            2031

                                                 Baseline NOX ................................................                         375.6                238.4           207.9           158.4            143.0            131.1            125.0
                                                 Transportation Conformity Safety Margin .....                                             0.0                0.0             0.0             2.5              5.3              7.1              8.0
                                                 Baseline NOX + Safety Margin .....................                                    375.6                238.4           207.9           160.9            148.3            138.2            133.1
                                                 Change in NOX since 2011, tpd ...................                      ........................            137.2           167.7           214.7            227.3            237.4            242.5
                                                 Change in NOX since 2011, % .....................                      ........................           36.5%           44.6%           57.2%            60.5%            63.2%            64.6%
                                                 NOX reductions used for VOC substitution
                                                   through last milestone year, % ..................                    ........................             0%               0%            7.2%            15.3%            24.3%            33.7%
                                                 NOX reductions since 2011 available for
                                                   VOC substitution in this milestone year, %                           ........................           36.5%           44.6%           49.9%            45.2%            38.9%            30.8%
                                                 NOX reductions since 2011 used for VOC
                                                   substitution in this milestone year, % ........                      ........................             0%             7.2%            8.1%              9.0%            9.4%             6.3%
                                                 NOX reductions since 2011 surplus after
                                                   meeting VOC substitution needs in this
                                                   milestone year, % ......................................             ........................           36.5%           37.4%           41.9%            36.2%            29.5%            24.6%
                                                     Total shortfall for RFP ............................               ........................              0%              0%              0%               0%               0%               0%
                                                 RFP Met? ......................................................        ........................             YES            YES              YES             YES               YES              YES
                                                    Source: Table VIII–2 of the 2018 SIP Update.


                                                   The updated RFP demonstration                                                      concludes that the RFP demonstration                       reviewed the calculations in table VIII–
                                                 calculates future year VOC targets from                                              meets the applicable requirements for                      2 of the 2018 SIP Update and presented
                                                 the 2011 baseline, consistent with CAA                                               each milestone year as well as the                         in table 4 above, and find that the State
                                                 182(c)(2)(B)(i), which requires                                                      attainment year.                                           has used an appropriate calculation
                                                 reductions of ‘‘at least 3 percent of                                                                                                           method to demonstrate RFP. For these
                                                                                                                                      3. The EPA’s Review of the State’s
                                                 baseline emissions each year.’’ The                                                                                                             reasons, we have determined that the
                                                                                                                                      Submission
                                                 updated RFP demonstration in the 2018                                                                                                           State has demonstrated RFP in each
                                                 SIP Update substitutes NOX reductions                                                  As discussed in section III.A above,                     milestone year and the attainment year,
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                                                 for VOC reductions 39 beginning in                                                   we are proposing to find that the                          consistent with applicable CAA
                                                 milestone year 2020 to meet VOC                                                      baseline and RFP milestone year                            requirements and EPA guidance. We
                                                 emission targets. For the San Joaquin                                                emissions inventories are acceptable for                   therefore propose to approve the RFP
                                                 Valley nonattainment area, CARB                                                      use in the RFP demonstration. We have                      demonstrations under sections
                                                    36 See    40 CFR 51.1110(a)(7).                                                     38 See the Reasonable Further Progress                     39 NO substitution is permitted under EPA
                                                                                                                                                                                                         X
                                                    37 See    40 CFR 51.1110(b).                                                      demonstration, section VIII–B, beginning on page           regulations. See 40 CFR 51.1110(a)(2)(i)(C) and 40
                                                                                                                                      52.                                                        CFR 51.1110(a)(2)(ii)(B); and 70 FR 12264 at 12271
                                                                                                                                                                                                 (March 6, 2015).



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                                                 61354                         Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 172(c)(2), 182(b)(1) and 182(c)(2)(B) of                                    control strategy SIPs. Budgets are                              associated RFP milestone years. As
                                                 the CAA and 40 CFR 51.1110(a)(2)(ii).                                       generally established for specific years                        such, the budgets are affected by the
                                                                                                                             and specific pollutants or precursors.                          South Coast II decision vacating the
                                                 C. Motor Vehicle Emissions Budgets for
                                                                                                                             Ozone plans should identify budgets for                         alternative baseline year provision, and
                                                 Transportation Conformity
                                                                                                                             on-road emissions of ozone precursors                           therefore, the EPA did not propose
                                                 1. Statutory and Regulatory                                                 (NOX and VOC) in the area for each RFP                          action on RFP budgets in our August 31,
                                                 Requirements                                                                milestone year and the attainment year,                         2018 proposed rule. On October 3, 2018,
                                                    Section 176(c) of the CAA requires                                       if the plan demonstrates attainment.40                          CARB requested parallel processing of
                                                 federal actions in nonattainment and                                           For budgets to be approvable, they                           the 2018 SIP Update before its board’s
                                                 maintenance areas to conform to the                                         must meet, at a minimum, the EPA’s                              anticipated adoption of the plan on
                                                 SIP’s goals of eliminating or reducing                                      adequacy criteria (40 CFR 93.118(e)(4)).                        October 25, 2018. The 2018 SIP Update
                                                 the severity and number of violations of                                    To meet these requirements, the budgets                         revises the RFP determination and
                                                 the NAAQS and achieving timely                                              must be consistent with the attainment                          identifies new sub-regional budgets for
                                                 attainment of the standards. Conformity                                     and RFP requirements and reflect all of                         each county in the nonattainment area
                                                 to the SIP’s goals means that such                                          the motor vehicle control measures                              for VOC and NOX for each updated RFP
                                                 actions will not: (1) Cause or contribute                                   contained in the attainment and RFP                             milestone year through 2030 and for the
                                                 to violations of a NAAQS, (2) worsen                                        demonstrations.41                                               attainment year, 2031. The budgets in
                                                 the severity of an existing violation, or                                      The EPA’s process for determining                            this 2018 SIP Update replace all of the
                                                 (3) delay timely attainment of any                                          adequacy of a budget consists of three                          budgets contained in the 2016 Ozone
                                                 NAAQS or any interim milestone.                                             basic steps: (1) Providing public                               Plan.
                                                    Actions involving Federal Highway                                        notification of a SIP submission; (2)
                                                 Administration (FHWA) or Federal                                            providing the public the opportunity to                            The budgets in the 2018 SIP Update
                                                 Transit Administration (FTA) funding                                        comment on the budget during a public                           were calculated using updated vehicle
                                                 or approval are subject to the EPA’s                                        comment period; and, (3) making a                               miles traveled (VMT) estimates from the
                                                 transportation conformity rule, codified                                    finding of adequacy or inadequacy.42                            2018 Regional Transportation Plans
                                                 at 40 CFR part 93, subpart A. Under this                                                                                                    from the San Joaquin Valley
                                                                                                                             2. Summary of the State’s Submission                            Metropolitan Transportation Planning
                                                 rule, MPOs in nonattainment and
                                                 maintenance areas coordinate with state                                        The 2016 Ozone Plan included sub-                            agencies and EMFAC2014, CARB’s
                                                 and local air quality and transportation                                    regional (i.e., county-based) budgets for                       latest approved version of the EMFAC
                                                 agencies, the EPA, the FHWA, and the                                        the 2018, 2021, 2024, 2027, and 2030                            model for estimating emissions from on-
                                                 FTA to demonstrate that an area’s                                           RFP milestone years, and the 2031                               road vehicles operating in California,
                                                 regional transportation plans and                                           attainment year. In June 2017, the EPA                          and reflect average summer weekday
                                                 transportation improvement programs                                         found the budgets adequate for                                  emissions consistent with the RFP
                                                 conform to the applicable SIP. This                                         transportation conformity purposes,43                           milestone years and the 2031 attainment
                                                 demonstration is typically done by                                          and more recently, proposed approval of                         year for the 2008 ozone NAAQS. The
                                                 showing that estimated emissions from                                       the 2031 budgets in our August 31, 2018                         budgets also include a safety margin for
                                                 existing and planned highway and                                            action on portions of the 2016 Ozone                            some years and some counties. The
                                                 transit systems are less than or equal to                                   Plan. The budgets for 2018, 2021, 2024,                         conformity budgets for NOX and VOC
                                                 the motor vehicle emissions budgets                                         2027 and 2030 were derived from the                             for each county in the nonattainment
                                                 (MVEBs or ‘‘budgets’’) contained in all                                     2012 RFP baseline year and the                                  area are provided in table 5 below.
                                                                                                                       TABLE 5—BUDGETS IN THE 2018 SIP UPDATE
                                                                                                                                                 [In tons per day]

                                                                                                                           2020                         2023                       2026                      2029                     2031
                                                                           County                                  VOC            NOX           VOC            NOX         VOC            NOX        VOC            NOX       VOC            NOX
                                                                                                                   (tpd)          (tpd)         (tpd)          (tpd)       (tpd)          (tpd)      (tpd)          (tpd)     (tpd)          (tpd)

                                                 Fresno .......................................................        6.7            3.9           5.5           14.1         4.9           13.2        4.5           12.4       4.2           12.1
                                                 Kern (SJV) .................................................          5.4           23.9           4.5           14.5         4.2           14.4        4.0           14.3       3.9           14.3
                                                 Kings .........................................................       1.2            4.5           1.0            2.7         0.9            2.5        0.8            2.6       0.8            2.6
                                                 Madera ......................................................         1.5            4.3           1.1            2.7         1.0            2.5        0.9            2.4       0.8            2.3
                                                 Merced ......................................................         2.2            8.8           1.7            6.0         1.5            5.9        1.3            5.6       1.2            5.4
                                                 San Joaquin ..............................................            4.7           11.2           3.9            7.4         3.5            7.0        3.1            6.6       2.8            6.3
                                                 Stanislaus ..................................................         3.1            8.8           2.6            5.6         2.2            4.9        2.0            4.5       1.8            4.3
                                                 Tulare ........................................................       3.0            7.6           2.4            4.6         2.1            4.0        1.8            3.7       1.7            3.5
                                                    Source: Tables VIII–4 through VIII–10 of the 2018 SIP Update.


                                                 3. The EPA’s Review of the State’s                                          93.118(e)(4) as part of our review of the                       ozone plan. The EPA is not required
                                                 Submission                                                                  budgets’ approvability (see section III in                      under its transportation conformity rule
                                                                                                                             the EPA’s TSD for this proposal) and                            to find budgets adequate prior to
                                                   We have evaluated the submitted
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                                                                                                                             will complete the adequacy review                               proposing approval of them.44
                                                 budgets in the 2018 SIP Update against
                                                                                                                             concurrent with our final action on the
                                                 our adequacy criteria in 40 CFR
                                                    40 See40 CFR 93.102(b)(2)(i).                                            at: http://www.epa.gov/otaq/stateresources/                       44 Under the Transportation Conformity

                                                    41 See40 CFR 93.118(e)(4)(iii), (iv) and (v). For                        transconf/index.htm.                                            regulations, the EPA may review the adequacy of
                                                 more information on the transportation conformity                              42 See 40 CFR 93.118(f)(2).                                  submitted motor vehicle emission budgets
                                                 requirements and applicable policies on MVEBs,                                 43 82 FR 29547 (June 29, 2017).                              simultaneously with the EPA’s approval or
                                                                                                                                                                                             disapproval of the submitted implementation plan
                                                 please visit our transportation conformity website
                                                                                                                                                                                             40 CFR 93.118(f)(2).



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                                                                     Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                  61355

                                                   The EPA has previously determined                     together with all other emission sources,                It has been the EPA’s longstanding
                                                 that the budgets in 2016 Ozone Plan are                 are consistent with applicable                        interpretation of section 172(c)(9) that
                                                 adequate for use for transportation                     requirements for attainment. A detailed               states may rely on existing federal
                                                 conformity purposes. On February 23,                    discussion of the EPA’s analysis of                   measures (e.g., federal mobile source
                                                 2017, the EPA announced the                             CARB’s technical supplement is                        measures based on the incremental
                                                 availability of the 2016 Ozone Plan and                 provided in section III of the TSD                    turnover of the motor vehicle fleet each
                                                 budgets, which were available for a 30-                 accompanying this rulemaking.                         year) and state or local measures in the
                                                 day public comment period that ended                       The 2018 SIP Update budgets as                     SIP already scheduled for
                                                 on March 27, 2017.45 The EPA received                   shown in table 5, are consistent with the             implementation that provide emissions
                                                 no comments from the public. On June                    RFP demonstration and attainment                      reductions in excess of those needed to
                                                 13, 2017, as noted above, the EPA                       demonstration, are clearly identified                 meet any other nonattainment plan
                                                 determined the 2018, 2021, 2024, 2027,                  and precisely quantified, and meet all                requirements, such as meeting RACM/
                                                 2030 and 2031 MVEBs were adequate.46                    other applicable statutory and                        RACT, RFP or expeditious attainment
                                                 On June 29, 2017, the notice of                         regulatory requirements, including the                requirements. The key is that the statute
                                                 adequacy was published in the Federal                   adequacy criteria in 40 CFR 93.118(e)(4)              requires that contingency measures
                                                 Register.47 These budgets became                        and (5). For these reasons, the EPA                   provide for additional emissions
                                                 effective on July 14, 2017, and have                    proposes to approve the budgets in table              reductions that are not relied on for RFP
                                                 been used in transportation conformity                  5. We provide a more detailed                         or attainment and that are not included
                                                 determinations in the San Joaquin                       discussion in section III of the EPA’s                in the RFP or attainment demonstrations
                                                 Valley area.                                            TSD, which can be found in the docket                 as meeting part or all of the contingency
                                                    In today’s notice, the EPA is                        for today’s action. If we finalize                    measure requirements. The purpose of
                                                 proposing to approve the 2020, 2023,                    approval of the budgets in the 2018 SIP               contingency measures is to provide
                                                 2026, 2029 and 2031 budgets in the                      Update, as proposed, then they will                   continued emissions reductions while
                                                 2018 SIP Update for transportation                      replace the budgets from the 2016                     the state revises the SIP to meet the
                                                 conformity purposes. The EPA has                        Ozone Plan that we previously found                   missed milestone or attainment date.
                                                 determined through its review of the                    adequate for use in conformity
                                                                                                                                                                  The EPA has approved numerous
                                                 submitted 2018 SIP Update that these                    determinations by transportation
                                                                                                                                                               nonattainment area plan SIP
                                                 budgets are consistent with emission                    agencies in the San Joaquin Valley.
                                                                                                                                                               submissions under this interpretation,
                                                 control measures in the SIP, reasonable
                                                                                                         D. Contingency Measures for Failure To                i.e., SIPs that use as contingency
                                                 further progress and attainment for the
                                                                                                         Meet RFP Milestones or To Attain the                  measures one or more federal or state
                                                 2008 ozone NAAQS. For the reasons
                                                                                                         NAAQS by the Applicable Attainment                    control measures that are already in
                                                 discussed in section III.B of this
                                                                                                         Date                                                  place and provide reductions that are in
                                                 proposed rule, we are proposing to
                                                 approve the RFP demonstration in the                    1. Statutory and Regulatory                           excess of the reductions required to
                                                 2018 SIP Update. To supplement the                      Requirements                                          meet other requirements or relied upon
                                                 information in the 2018 SIP Update,                                                                           in the modeled attainment
                                                                                                            Under the CAA, ozone nonattainment                 demonstration,53 and there is case law
                                                 CARB provided an additional technical                   areas classified under subpart 2 as
                                                 supplement 48 demonstrating that the                                                                          supporting the EPA’s interpretation in
                                                                                                         Serious or above must include in their                this regard.54 However, in Bahr v. EPA,
                                                 budgets, including safety margins,                      SIPs contingency measures consistent
                                                 which are clearly identified in the tables                                                                    the Ninth Circuit rejected the EPA’s
                                                                                                         with sections 172(c)(9) and 182(c)(9).                interpretation of CAA section 172(c)(9)
                                                 VIII–4 through VIII–10 of the 2018 SIP                  Contingency measures are additional
                                                 Update, are consistent with RFP.                                                                              as allowing for approval of already
                                                                                                         controls or measures to be implemented                implemented control measures as
                                                    The EPA has previously proposed to                   in the event the area fails to make RFP
                                                 approve the attainment demonstration                                                                          contingency measures.55 The Ninth
                                                                                                         or to attain the NAAQS by the                         Circuit concluded that contingency
                                                 in 2016 Ozone Plan and associated 2031                  attainment date. The SIP should contain
                                                 budgets.49 The 2018 SIP Update does                                                                           measures must be measures that would
                                                                                                         trigger mechanisms for the contingency                take effect at the time the area fails to
                                                 not update the attainment                               measures, specify a schedule for
                                                 demonstration, therefore CARB                                                                                 make RFP or to attain by the applicable
                                                                                                         implementation, and indicate that the                 attainment date, not before.56 Thus,
                                                 provided an additional technical                        measure will be implemented without
                                                 supplement 50 to assess the effect of the                                                                     within the geographic jurisdiction of the
                                                                                                         significant further action by the state or            Ninth Circuit, states cannot rely on
                                                 emissions updates in the 2018 SIP                       the EPA.51
                                                 Update using modeling from the 2016                                                                           already implemented control measures
                                                                                                            Neither the CAA nor the EPA’s                      to comply with the contingency
                                                 Ozone Plan. The supplement showed                       implementing regulations establish a
                                                 that the updated on-road emission and                   specific amount of emissions reductions                  53 See, e.g., 62 FR 15844 (April 3, 1997) (direct
                                                 safety margins, when considered                         that implementation of contingency                    final rule approving an Indiana ozone SIP revision);
                                                                                                         measures must achieve, but the 2008                   62 FR 66279 (December 18, 1997) (final rule
                                                    45 See http://www.epa.gov/otaq/stateresources/
                                                                                                         Ozone SRR reiterates the EPA’s                        approving an Illinois ozone SIP revision); 66 FR
                                                 transconf/currsips.htm.                                                                                       30811 (June 8, 2001) (direct final rule approving a
                                                    46 See June 13, 2017 letter from Elizabeth J.
                                                                                                         guidance recommendation that
                                                                                                                                                               Rhode Island ozone SIP revision); 66 FR 586
                                                 Adams, Acting Director, Air Division, EPA Region        contingency measures should provide                   (January 3, 2001) (final rule approving District of
                                                 IX, to Richard W. Corey, Executive Officer, CARB.       for emissions reductions approximately                Columbia, Maryland, and Virginia ozone SIP
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                                                    47 See 82 FR 29547.
                                                                                                         equivalent to one year’s worth of RFP,                revisions); and 66 FR 634 (January 3, 2001) (final
                                                    48 See email from Sylvia Vanderspek, Chief,
                                                                                                         thus amounting to reductions of 3                     rule approving a Connecticut ozone SIP revision).
                                                 California Air Resources Board Air Planning                                                                      54 See, e.g., LEAN v. EPA, 382 F.3d 575 (5th Cir.

                                                 Branch, to Anita Lee, Chief, EPA Region IX Air
                                                                                                         percent of the baseline emissions                     2004) (upholding contingency measures that were
                                                 Planning Office, October 17, 2018.                      inventory for the nonattainment area.52               previously required and implemented where they
                                                    49 See 83 FR 44528 (August 31, 2018).                                                                      were in excess of the attainment demonstration and
                                                    50 See email from Sylvia Vanderspek, Chief,            51 See 70 FR 71612 (November 29, 2005). See also    RFP SIP).
                                                 California Air Resources Board Air Planning             2008 Ozone SRR, 80 FR 12264 at 12285 (March 6,           55 Bahr v. EPA, 836 F.3d 1218, at 1235–1237 (9th

                                                 Branch, to Anita Lee, Chief, EPA Region IX Air          2015).                                                Cir. 2016).
                                                 Planning Office, October 19, 2018.                        52 80 FR 12264 at 12285 (March 6, 2015).               56 Id. at 1235–1237.




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                                                 61356               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 measure requirements under CAA                           Enforcement Activities Program,’’ is                   further commits to submit the revised
                                                 sections 172(c)(9) and 182(c)(9).57                      described in chapter X (‘‘Contingency                  architectural coatings rule to CARB
                                                                                                          Measures’’), section C of the 2018 SIP                 within 11 months of final EPA action.
                                                 2. Summary of the State’s Submission
                                                                                                          Update. In short, under the Enhanced                   CARB has attached the District’s
                                                    The District and CARB adopted the                     Enforcement Activities Program, within                 commitment to revise the architectural
                                                 2016 Ozone Plan prior to the Bahr v.                     60 days of a determination by the EPA                  coatings rule to a letter committing to
                                                 EPA decision, and it relies upon surplus                 that the San Joaquin Valley                            adopt and submit the revised rule to the
                                                 emissions reductions from already                        nonattainment area failed to meet an                   EPA within one year of the EPA’s final
                                                 implemented control measures in the                      RFP milestone or to attain the 2008                    action on the contingency measure
                                                 RFP milestone years to demonstrate                       ozone NAAQS by the applicable                          element of the 2016 Ozone Plan (and
                                                 compliance with the RFP milestone                        attainment date, the CARB Executive                    related portions of the 2018 SIP
                                                 contingency measure requirements of                      Officer would direct enhanced                          Update).62
                                                 CAA sections 172(c)(9) and 182(c)(9).58                  enforcement activities in San Joaquin
                                                 With respect to the attainment                                                                                  3. The EPA’s Review of the State’s
                                                                                                          Valley consistent with the findings and
                                                 contingency measure requirements, the                                                                           Submission
                                                                                                          recommendations in a report (referred to
                                                 2016 Ozone Plan relies upon the                          as the Enhanced Enforcement Report)                       We have evaluated the contingency
                                                 incremental reduction in emissions in                    that is to be prepared and published                   measure provisions in the 2016 Ozone
                                                 the year following the attainment year                   within 60 days of the triggering event.                Plan, the 2018 SIP Update, and the
                                                 relative to the emissions in the                         In the 2018 SIP Update, CARB indicates                 commitments by the District and CARB
                                                 attainment year due to continuing                        that the Enhanced Enforcement Report                   to adopt and submit a district
                                                 benefits from already implemented                        will, among other things, describe the                 contingency measure within one year of
                                                 control measures, and on the aggregate                   compliance status of stationary and                    the EPA’s final action and have
                                                 emission reduction commitment made                       mobile sources in the area, determine                  concluded that, collectively, these
                                                 by CARB in the 2016 State Strategy for                   the probable cause of the failure of RFP               materials provide the basis for us to
                                                 San Joaquin Valley.59                                    or attainment, and specify the type and                propose conditional approval of the
                                                    In the 2018 SIP Update, CARB revises                  quantity of additional enforcement                     2016 Ozone Plan and the relevant
                                                 the RFP demonstration for the 2008                       resources that will be directed to the                 portions of 2018 Update.
                                                 ozone standards for the San Joaquin                      area. Lastly, through its resolution of                   First, we find that CARB’s Enhanced
                                                 Valley nonattainment area and                            adoption of the 2018 SIP Update, CARB                  Enforcement Activities Program
                                                 recalculates the extent of surplus                       added a menu of specific enforcement                   measure and the revision to the
                                                 emission reductions (i.e., surplus to                    activity measures, one or more of which                architectural coatings rule (once
                                                 meeting the RFP milestone requirement                    must be identified in the Enhanced                     adopted) represent additional controls
                                                 for a given milestone year) in the                       Enforcement Report and implemented                     or measures to be implemented in the
                                                 milestone years, and updates the                         within 60 days of a triggering event.60                event San Joaquin Valley fails to make
                                                 estimate of the incremental reduction in                   In chapter X (‘‘Contingency                          RFP or to attain the NAAQS by the
                                                 emissions in the year following the                      Measures’’) of the 2018 SIP Update,                    applicable attainment date. We also find
                                                 attainment year (relative to the                         CARB indicates that compliance with                    that CARB’s Enhanced Enforcement
                                                 attainment year). In light of the Bahr v.                the contingency measure requirements                   Activities Program contains, and the
                                                 EPA decision, however, the 2018 SIP                      of the CAA necessitates that individual                revised architectural coatings rule will
                                                 Update does not identify such surplus                    air districts adopt a local contingency                contain, triggering mechanisms and
                                                 or incremental emissions reductions as                   measure or measures to complement                      schedules for implementation for the
                                                 contingency measures. Instead, the 2018                  CARB’s Enhanced Enforcement                            additional measures. Furthermore, the
                                                 SIP Update includes a contingency                        Activities Program measure. To address                 contingency measures are designed to
                                                 measure that would take effect upon a                    the contingency measure requirement                    be implemented without significant
                                                 failure to meet an RFP milestone or                      for the 2008 ozone standards in the San                further action by the State or the EPA.63
                                                 upon a failure to attain the 2008 ozone                  Joaquin Valley nonattainment area, the                 As such, CARB’s Enhanced Enforcement
                                                 standards by the applicable attainment                   District has committed to adopt and                    Activities Program measure is
                                                 date.                                                    submit a contingency measure to CARB                   structured, and the District’s intended
                                                    The new contingency measure,                          within 11 months of the EPA’s final                    measure, as described in the
                                                 referred to as the ‘‘Enhanced                            conditional approval of the contingency                commitment, will be structured, to meet
                                                                                                          measure element of the 2016 Ozone                      the requirements of CAA sections
                                                    57 The Bahr v. EPA decision involved a challenge
                                                                                                          Plan, as supplemented by the relevant
                                                 to an EPA approval of contingency measures under                                                                   62 Letter from Dr. Michael Benjamin, Chief, CARB
                                                 the general nonattainment area plan provisions for
                                                                                                          portions of the 2018 SIP Update.61 The
                                                                                                                                                                 Air Quality Planning and Science Division, to
                                                 contingency measures in CAA section 172(c)(9),           District’s specific commitment is to                   Michael Stoker, Regional EPA Region IX
                                                 but, given the similarity between the statutory          revise the district’s current architectural            Administrator, dated October 20, 2018.
                                                 language in section 172(c)(9) and the ozone-specific     coatings rule to remove the exemption                     63 We recognize that CARB’s Enhanced
                                                 contingency measure provision in section 182(c)(9),
                                                 we find that the decision affects how both sections
                                                                                                          for architectural coatings sold in                     Enforcement Activities Program calls for the
                                                                                                          containers with a volume of one liter or               preparation of a report before specific actions are
                                                 of the Act must be interpreted.                                                                                 taken; however, we view the preparation of the
                                                    58 See the 2016 Ozone Plan, chapter 6, section 6.3.   less if the EPA determines that the San                report as a ministerial act that does not require
                                                    59 See the 2016 Ozone Plan, chapter 6, section 6.4    Joaquin Valley nonattainment area has                  significant action on the part of CARB or the EPA,
                                                 and CARB’s Staff Report, ARB Review of the San           missed an RFP milestone or failed to                   e.g., does not depend upon rulemaking or any
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                                                 Joaquin Valley 2016 Plan for the 2008 8-Hour             attain the 2008 ozone NAAQS by the                     action by the CARB Board. Furthermore, in
                                                 Ozone Standard, release date June 17, 2016, pages                                                               adopting the 2018 SIP Update, the CARB Board
                                                 21 and 22. CARB’s aggregate commitment is to             applicable attainment date. The District               strengthened the Enhanced Enforcement Activities
                                                 achieve emission reductions in the San Joaquin                                                                  Program contingency measure by adopting a menu
                                                 Valley of 8 tpd of NOX by 2031. In our August 31,          60 CARB Resolution 18–50, dated October 25,          of specific actions, one or more of which must be
                                                 2018 proposed action on portions of the 2016             2018, attachment B.                                    included in the report for implementation
                                                 Ozone Plan (83 FR 44528, at 44547), we proposed            61 Sheraz Gill, Deputy Air Pollution Control         beginning 60 days after the triggering event. See
                                                 to approve the aggregate 8-tpd NOX commitment by         Officer, letter to Richard Corey, Executive Officer,   CARB Resolution 18–50, October 25, 2018,
                                                 CARB from the 2016 State Strategy as a SIP               CARB and Michael Stoker, Regional Administrator,       attachment B (‘‘Menu of Enhanced Enforcement
                                                 strengthening measure.                                   EPA Region IX, dated October 18, 2018.                 Actions’’).



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                                                                      Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules                                                  61357

                                                 172(c)(9) and 182(c)(9) consistent with                    requirements when considered in                     Update, we note that overall regional
                                                 the Bahr v. EPA decision.                                  conjunction with the surplus emissions              emissions are expected to be
                                                    As noted above, neither the CAA nor                     reductions estimated to be achieved in              approximately 1 tpd of NOX lower in
                                                 the EPA’s implementing regulations for                     the RFP milestone years and the                     2032 than in 2031.66 Considered
                                                 the ozone NAAQS establish a specific                       incremental emissions reductions                    together with the quantified 1 tpd
                                                 amount of emissions reductions that                        projected to occur in the year following            reduction from the contingency
                                                 implementation of contingency                              the attainment year. Although these                 measures, the adopted regulations
                                                 measures must achieve, but we                              surplus emission reductions and                     would not provide sufficient emissions
                                                 generally expect that contingency                          incremental emissions reductions result             reductions to constitute one year’s
                                                 measures should provide for emissions                      from existing (i.e., already                        worth of RFP. However, as part of the
                                                 reductions approximately equivalent to                     implemented) measures that are not                  2016 State Strategy, CARB has made an
                                                 one year’s worth of RFP, which, for                        appropriate as contingency measures                 aggregate emission reduction
                                                 ozone, amounts to reductions of 3                          under the Bahr v. EPA court’s                       commitment of 8 tpd of NOX for San
                                                 percent of the baseline emissions                          interpretation of CAA section 172(c)(9),            Joaquin Valley by 2031 over and above
                                                 inventory for the nonattainment area.                      they nonetheless provide additional                 the reductions that are needed for any
                                                 For the 2008 ozone standards in the San                    emission reductions that will improve               other CAA purpose with respect to the
                                                 Joaquin Valley nonattainment area, one                     the ambient ozone levels in the San                 2008 ozone standards. Fulfillment of the
                                                 year’s worth of RFP is approximately                       Joaquin Valley 2008 ozone                           8-tpd commitment would reduce the
                                                 11.4 tpd of VOC or NOX reductions.64                       nonattainment area in the event that                potential for the area to fail to attain the
                                                    The 2018 SIP Update does not include                    RFP or attainment are not met.                      2008 ozone NAAQS by the 2031
                                                 a specific estimate of the emissions                          In this case, ‘‘surplus’’ refers to              applicable attainment date. Under these
                                                 reductions that would be achieved by                       emissions reductions over and above the             circumstances, given the reduced
                                                 the Enhanced Enforcement Activities                        reductions necessary to demonstrate                 potential for failure to attain and the
                                                 program. We recognize the difficulty in                    RFP in San Joaquin Valley for the 2008              expected year-over-year net reduction in
                                                 calculating such an estimate given the                     ozone standards. More specifically,                 regional emissions, we find that the
                                                 nature of the measure and the range of                     table VIII–2 in the 2018 SIP Update                 emissions reductions from the two
                                                 enforcement actions that could be taken,                   identifies surplus NOX reductions in the            contingency measures are sufficient to
                                                 but we believe that the enhanced                           various RFP milestone years. For San                meet the contingency measure
                                                 enforcement program would achieve                          Joaquin Valley, the estimates of surplus            requirements of the CAA with respect to
                                                 emissions reductions above and beyond                      NOX reductions vary for each RFP                    attainment.
                                                 those that would otherwise be achieved.                    milestone year but range from 92.4 tpd
                                                                                                                                                                   For the above reasons, we propose to
                                                 The District’s intended contingency                        (24.6 percent of 2011 baseline NOX) in
                                                 measure, i.e., the removal of the small-                                                                       conditionally approve the contingency
                                                                                                            milestone year 2031 to 157.4 tpd (41.9
                                                 container exemption from the current                                                                           measure element of the 2016 Ozone
                                                                                                            percent of 2011 baseline NOX) in
                                                 local architectural coatings rule in the                                                                       Plan, as modified by the 2018 SIP
                                                                                                            milestone year 2023. These represent
                                                 SIP upon a triggering event, lends itself                                                                      Update, and supplemented by the
                                                                                                            values that far eclipse one year’s worth
                                                 more easily to quantification of                                                                               commitments by the District and CARB
                                                                                                            of RFP (11.4 tpd). The surplus reflects
                                                 potential additional emission                                                                                  to adopt and submit an additional
                                                                                                            already implemented regulations and is
                                                 reductions. Based on emissions                                                                                 contingency measure, as meeting the
                                                                                                            primarily the result of vehicle turnover,
                                                 estimates developed in connection with                     which refers to the ongoing replacement             contingency measure requirements of
                                                 the removal of the same small-container                    by individuals, companies, and                      CAA sections 172(c)(9) and 182(c)(9).
                                                 exemption from the comparable South                        government agencies of older, more                  Our proposed approval is conditional
                                                 Coast Air Quality Management District’s                    polluting vehicles and engines with                 because it relies upon a commitment to
                                                 architectural coatings rule, we estimate                   newer vehicles and engines designed to              adopt a specific enforceable contingency
                                                 that the removal of the exemption                          meet more stringent CARB mobile                     measure. Conditional approvals are
                                                 would achieve roughly 1 tpd reduction                      source emission standards. In light of              authorized under CAA section 110(k)(4)
                                                 of VOC in San Joaquin Valley.65                            the extent of surplus NOX emissions                 of the CAA.
                                                    Considered together, as described                       reductions in the RFP milestone years,              V. Proposed Action
                                                 above, the two contingency measures                        we agree with CARB that the emissions
                                                 can be quantified to achieve                               reductions from the two contingency                   For the reasons discussed above,
                                                 approximately 1 tpd of VOC emissions                       measures would be sufficient to meet                under CAA section 110(k)(3), the EPA is
                                                 reductions. Thus the contingency                           the contingency measure requirements                proposing to approve as a revision to the
                                                 measures, considered in isolation, can                     of the CAA with respect to RFP                      California SIP the following portions of
                                                 be quantified to achieve far less than                     milestones, even though the measures                the San Joaquin Valley 2016 Ozone
                                                 one year’s worth of RFP (11.4 tpd of                       would achieve emissions reductions                  Plan 67 submitted by CARB on August
                                                 VOC or NOX). However, the 2018 SIP                         lower than the EPA normally                         24, 2016:
                                                 Update presents the contingency                            recommends for reductions from such                   • Base year emissions inventory as
                                                 measures within the larger SIP planning                    measures.                                           meeting the requirements of CAA
                                                 context and concludes that the                                For attainment contingency measure
                                                 emissions reductions from the two                          purposes, we view the emissions                       66 A comparison of regional emissions totals in

                                                 contingency measures are sufficient to                     reductions from the two contingency                 2032 with those in 2031 shows that VOC emissions
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                                                                                                                                                                are expected to be 1.05 tpd higher, and NOX
                                                 meet CAA contingency measure                               measures in the context of the expected             emissions are expected to be 2.14 lower, for a net
                                                                                                            reduction in emissions within the San               reduction of approximately 1 tpd of NOX.
                                                    64 The 2011 baseline for VOC and NO is 378.7
                                                                                            X               Joaquin Valley nonattainment area for                 67 As noted previously, the EPA has already
                                                 tpd and 375.6 tpd, respectively, as shown in table         the 2008 ozone NAAQS in the year                    approved the portions of the 2016 Ozone Plan
                                                 VIII–1 of the 2018 SIP Update. Three percent of the        following the attainment year (relative             (section 3.4 (‘‘Reasonably Available Control
                                                 baselines is 11.4 tpd of VOC and 11.3 tpd of NOX,                                                              Technology (RACT) Demonstration’’) and Appendix
                                                 respectively.                                              to those occurring in the attainment                C (‘‘Stationary and Area Source Control Strategy
                                                    65 The basis for this estimate is detailed in section   year). Based on the emission inventories            Evaluations’’)) that relate to the RACT requirements
                                                 II of the TSD accompanying this rulemaking.                in the Appendix A to the 2018 SIP                   under CAA section 182(b)(2) and 40 CFR 51.1112.



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                                                 61358               Federal Register / Vol. 83, No. 230 / Thursday, November 29, 2018 / Proposed Rules

                                                 sections 172(c)(3) and 182(a)(1) and 40                 October 4, 1993) and 13563 (76 FR 3821,                 Dated: November 19, 2018.
                                                 CFR 51.1115.                                            January 21, 2011);                                    Deborah Jordan,
                                                    The EPA is also proposing to approve                    • Is not an Executive Order 13771 (82              Acting Regional Administrator, Region IX.
                                                 as a revision to the California SIP the                 FR 9339, February 2, 2017) regulatory                 [FR Doc. 2018–25885 Filed 11–28–18; 8:45 am]
                                                 following portions of the 2018 SIP                      action because SIP approvals are                      BILLING CODE 6560–50–P
                                                 Update to the California State                          exempted under Executive Order 12866;
                                                 Implementation Plan, adopted by CARB
                                                                                                            • Does not impose an information
                                                 on October 25, 2018:                                                                                          FEDERAL COMMUNICATIONS
                                                                                                         collection burden under the provisions
                                                    • RFP demonstration as meeting the                                                                         COMMISSION
                                                                                                         of the Paperwork Reduction Act (44
                                                 requirements of CAA sections 172(c)(2),
                                                                                                         U.S.C. 3501 et seq.);
                                                 182(b)(1), and 182(c)(2)(B), and 40 CFR                                                                       47 CFR Parts 61 and 69
                                                 51.1110(a)(2)(ii); and                                     • Is certified as not having a
                                                                                                         significant economic impact on a                      [WC Docket Nos. 17–144, 16–143, 05–25;
                                                    • Motor vehicle emissions budgets for                                                                      FCC 18–146]
                                                 the RFP milestone years of 2020, 2023,                  substantial number of small entities
                                                 2026, 2029, and the attainment year of                  under the Regulatory Flexibility Act (5
                                                                                                                                                               Regulation of Business Data Services
                                                 2031 (see table 5, above) because they                  U.S.C. 601 et seq.);
                                                                                                                                                               for Rate-of-Return Local Exchange
                                                 are consistent with the RFP                                • Does not contain any unfunded                    Carriers; Business Data Services in an
                                                 demonstration proposed for approval                     mandate or significantly or uniquely                  Internet Protocol Environment; Special
                                                 herein and the attainment                               affect small governments, as described                Access for Price Cap Local Exchange
                                                 demonstration previously proposed for                   in the Unfunded Mandates Reform Act                   Carriers
                                                 approval and meet the other criteria in                 of 1995 (Pub. L. 104–4);
                                                                                                                                                               AGENCY:  Federal Communications
                                                 40 CFR 93.118(e).                                          • Does not have Federalism
                                                    Lastly, we are proposing to                                                                                Commission.
                                                                                                         implications as specified in Executive
                                                 conditionally approve the contingency                   Order 13132 (64 FR 43255, August 10,                  ACTION: Proposed rule.
                                                 measure element of the 2016 Ozone                       1999);                                                SUMMARY:   The Commission seeks
                                                 Plan, as modified by the 2018 SIP
                                                                                                            • Is not an economically significant               comment on proposals to eliminate ex
                                                 Update, as meeting the requirements of
                                                                                                         regulatory action based on health or                  ante pricing regulation for price cap
                                                 CAA sections 172(c)(9) and 182(c)(9)
                                                                                                         safety risks subject to Executive Order               incumbent LECs’ provision of TDM and
                                                 based on commitments by CARB and
                                                                                                         13045 (62 FR 19885, April 23, 1997);                  other transport business data services.
                                                 the District to supplement the element
                                                 through submission of a SIP revision                       • Is not a significant regulatory action           The Commission also seeks comment on
                                                                                                         subject to Executive Order 13211 (66 FR               the conditions under which ex ante
                                                 within 1 year of final conditional
                                                                                                         28355, May 22, 2001);                                 pricing regulations should be eliminated
                                                 approval action that will include a
                                                                                                                                                               for lower capacity TDM transport
                                                 revised District architectural coatings                    • Is not subject to requirements of
                                                                                                                                                               business data services offerings by rate-
                                                 rule.                                                   Section 12(d) of the National
                                                                                                                                                               of-return carriers opting in to the
                                                    The EPA is soliciting public                         Technology Transfer and Advancement
                                                                                                                                                               Commission’s new light-touch
                                                 comments on the proposed actions                        Act of 1995 (15 U.S.C. 272 note) because
                                                                                                                                                               regulatory framework. With these steps,
                                                 listed above, our rationales for the                    application of those requirements would
                                                                                                                                                               the Commission continues its ongoing
                                                 proposed actions, and any other                         be inconsistent with the Clean Air Act;
                                                                                                                                                               efforts to modernize regulations for the
                                                 pertinent matters related to the issues                 and
                                                                                                                                                               dynamic and evolving business data
                                                 discussed in this document. We will                        • Does not provide the EPA with the                services market.
                                                 accept comments from the public on                      discretionary authority to address
                                                 this proposal for the next 30 days and                                                                        DATES: Comments are due on or before
                                                                                                         disproportionate human health or                      January 14, 2019. Reply comments are
                                                 will consider comments before taking                    environmental effects with practical,
                                                 final action.                                                                                                 due on or before February 12, 2019.
                                                                                                         appropriate, and legally permissible
                                                                                                                                                               ADDRESSES: Federal Communications
                                                 VI. Statutory and Executive Order                       methods under Executive Order 12898
                                                                                                         (59 FR 7629, February 16, 1994).                      Commission, 445 12th St. SW,
                                                 Reviews                                                                                                       Washington, DC 20554.
                                                   Under the Clean Air Act, the                             In addition, the SIP is not approved
                                                                                                                                                               FOR FURTHER INFORMATION CONTACT:
                                                 Administrator is required to approve a                  to apply on any Indian reservation land
                                                                                                                                                               Justin Faulb, Wireline Competition
                                                 SIP submission that complies with the                   or in any other area where the EPA or
                                                                                                                                                               Bureau, Pricing Policy Division, at
                                                 provisions of the Act and applicable                    an Indian tribe has demonstrated that a
                                                                                                                                                               202–418–1589 or via email at
                                                 federal regulations. 42 U.S.C. 7410(k);                 tribe has jurisdiction. In those areas of
                                                                                                                                                               justin.faulb@fcc.gov.
                                                 40 CFR 52.02(a). Thus, in reviewing SIP                 Indian country, the proposed rule does
                                                                                                                                                               SUPPLEMENTARY INFORMATION: This is a
                                                 submissions, the EPA’s role is to                       not have tribal implications and will not
                                                                                                         impose substantial direct costs on tribal             summary of the Commission’s Second
                                                 approve state choices, provided that                                                                          Further Notice of Proposed Rulemaking,
                                                 they meet the criteria of the Clean Air                 governments or preempt tribal law as
                                                                                                         specified by Executive Order 13175 (65                and Further Notice of Proposed
                                                 Act. Accordingly, this proposed action                                                                        Rulemaking, released October 24, 2018.
                                                 merely proposes to approve state plans                  FR 67249, November 9, 2000).
                                                                                                                                                               A full-text copy may be obtained at the
                                                 and an air district rule as meeting                     List of Subjects in 40 CFR Part 52                    following internet address: https://
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                                                 federal requirements and does not                                                                             drupal7admin.fcc.gov/document/fcc-
                                                 impose additional requirements beyond                     Environmental protection, Air                       spurs-competition-rural-business-data-
                                                 those imposed by state law. For that                    pollution control, Incorporation by                   services-0.
                                                 reason, this proposed action:                           reference, Intergovernmental relations,
                                                   • Is not a ‘‘significant regulatory                   Nitrogen dioxide, Ozone, Reporting and                Background
                                                 action’’ subject to review by the Office                recordkeeping requirements, Volatile                    1. In light of the Eighth Circuit Court’s
                                                 of Management and Budget under                          organic compounds.                                    recent decision upholding the bulk of
                                                 Executive Orders 12866 (58 FR 51735,                      Authority: 42 U.S.C. 7401 et seq.                   the Commission’s price cap BDS Order,


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Document Created: 2018-11-28 23:44:17
Document Modified: 2018-11-28 23:44:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesWritten comments must arrive on or before December 31, 2018.
ContactLaura Lawrence, EPA Region IX, (415) 972-3407, [email protected]
FR Citation83 FR 61346 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Nitrogen Dioxide; Ozone; Reporting and Recordkeeping Requirements and Volatile Organic Compounds

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