
[Federal Register Volume 81, Number 211 (Tuesday, November 1, 2016)]
[Proposed Rules]
[Pages 75764-75780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26376]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0244; FRL-9954-76-Region 9]


Approval and Promulgation of Implementation Plans; State of 
California; Coachella Valley; Attainment Plan for 1997 8-Hour Ozone 
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve state implementation plan (SIP) revisions submitted by the 
State of California to provide for attainment of the 1997 8-hour ozone 
national ambient air quality standards in the Coachella Valley 
nonattainment area. The EPA is proposing to find the emissions 
inventories to be acceptable and to approve the reasonably available 
control measures, transportation control strategies and measures, rate 
of progress and reasonable further progress demonstrations, attainment 
demonstration, vehicle miles traveled offset demonstration and the 
transportation conformity motor vehicle emission budgets.

DATES: Any comments must be submitted by December 1, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2016-0244 at http://www.regulations.gov, or via email to 
kelly.thomasp@epa.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. For either 
manner of submission, the EPA may publish any

[[Page 75765]]

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://www2.epa.gov/dockets/commenting-epa-dockets.
    Docket: The index to the docket for this action is available 
electronically on the www.regulations.gov Web site and in hard copy at 
EPA Region IX, 75 Hawthorne Street, San Francisco, California 94105. 
While all documents in the docket are listed in the index, some 
information may be publicly available only at the hard copy location 
(e.g., copyrighted material), and some may not be publicly available at 
either location (e.g., CBI). To inspect the hard copy materials, please 
schedule an appointment during normal business hours with the contact 
listed in the FOR FURTHER INFORMATION CONTACT section below.

FOR FURTHER INFORMATION CONTACT: Tom Kelly, Air Planning Office (AIR-
2), U.S. Environmental Protection Agency, Region IX, (415) 972-3856, 
kelly.thomasp@epa.gov.

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

Table of Contents

I. The 8-Hour Ozone Standards and the Coachella Valley Nonattainment 
Area
    A. Background on the 8-Hour Ozone Standards
    B. The Coachella Valley 8-Hour Ozone Nonattainment Area
II. CAA and Regulatory Requirements for Ozone Nonattainment SIPs
III. CARB's SIP Submittals to Address the 1997 8-Hour Ozone 
Standards in the Coachella Valley Nonattainment Area
    A. CARB's SIP Submittals
    B. CAA Procedural and Administrative Requirements for SIP 
Submittals
IV. Review of the Coachella Valley Ozone Plan
    A. Emissions Inventories
    B. Reasonably Available Control Measures Demonstration and 
Adopted Control Strategy
    C. Attainment Demonstration
    D. Rate of Progress and Reasonable Further Progress 
Demonstrations
    E. Motor Vehicle Emissions Budgets for Transportation Conformity
    F. Vehicle Miles Travelled Emissions Offset Demonstration
V. The EPA's Proposed Actions
    A. The EPA's Proposed Approvals
    B. Request for Public Comments
VI. Statutory and Executive Order Reviews

I. The 8-Hour Ozone Standards and the Coachella Valley Nonattainment 
Area

A. Background on the 8-Hour Ozone Standards

    Ground-level ozone is formed when oxides of nitrogen 
(NOX) and volatile organic compounds (VOC) react in the 
presence of sunlight.\1\ These two pollutants, referred to as ozone 
precursors, are emitted by many types of pollution 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\ California plans use the term Reactive Organic Gases (ROG) 
for VOC. These terms are essentially synonymous. For simplicity, we 
use the term VOC herein to mean either VOC or ROG.
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    Scientific evidence indicates that adverse public health effects 
occur following exposure to 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. Ozone exposure also has 
been associated with increased susceptibility to respiratory 
infections, medication use, doctor visits, as well as emergency 
department visits and hospital admissions for individuals with lung 
disease. Ozone exposure also increases the risk of premature death from 
heart or lung disease. Children are at increased risk from exposure to 
ozone because their lungs are still developing and they are more likely 
to be active outdoors, which increases their exposure. See ``Fact 
Sheet, Proposal to Revise the National Ambient Air Quality Standards 
for Ozone'' (January 6, 2010); 75 FR 2938 (January 19, 2010).
    In 1979, under section 109 of the Clean Air Act (CAA), the EPA 
established primary and secondary national ambient air quality 
standards (NAAQS or standards) for ozone at 0.12 parts per million 
(ppm) averaged over a 1-hour period. See 44 FR 8202 (February 8, 1979).
    On July 18, 1997, the EPA revised the primary and secondary 
standards for ozone to set the acceptable level of ozone in the ambient 
air at 0.08 ppm, averaged over an 8-hour period (``1997 8-hour ozone 
standards''). See 62 FR 38856 (July 18, 1997). The EPA set the 1997 8-
hour ozone standard based on scientific evidence demonstrating that 
ozone causes adverse health effects at lower concentrations and over 
longer periods of time than was understood when the previous 1-hour 
ozone standards were set. The EPA determined that the 1997 8-hour 
standards would be more protective of human health, especially for 
children and adults who are active outdoors, and individuals with a 
pre-existing respiratory disease, such as asthma.\2\ In 2008, the EPA 
revised and strengthened the NAAQS for ozone by setting the acceptable 
level of ozone in the ambient air at 0.075 ppm, averaged over an 8-hour 
period. 73 FR 16436 (March 27, 2008). In 2015, the EPA further 
tightened the 8-hour ozone standards to 0.070 ppm. 80 FR 65292 (October 
26, 2015). While the 1979 1-hour ozone standards and the 1997 8-hour 
ozone standards have been revoked, certain requirements that had 
applied under the revoked standards continue to apply under the anti-
backsliding provisions of CAA section 172(e), including an approved 
attainment plan.
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    \2\ On March 27, 2008, the EPA revised and further strengthened 
the primary and secondary NAAQS for ozone by setting the acceptable 
level of ozone in the ambient air at 0.075 ppm, averaged over an 8-
hour period (``2008 8-hour ozone standards''). See 73 FR 16436. On 
May 21, 2012, the EPA designated areas of the country with respect 
to the 2008 8-hour ozone standards. See 77 FR 30088 and 40 CFR 
81.330. On October 1, 2015, the EPA again strengthened the primary 
and secondary NAAQS for ozone in ambient air to 0.070 ppm averaged 
over 8 hours. See 80 FR 65292. For nonattainment areas classified as 
``serious'' under the 2008 ozone standards, such as the Coachella 
Valley, attainment SIPs were due on July 21, 2016. We will evaluate 
the 2008 attainment SIPs in the timeframes specified by the CAA. We 
have not yet set SIP submittal dates for the 2015 8-hour ozone 
standards. Today's action applies only to the 1997 8-hour ozone 
standards and does not address requirements for the 2008 and 2015 8-
hour ozone standards.
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B. The Coachella Valley 8-Hour Ozone Nonattainment Area

    Following promulgation of a new or revised NAAQS, the EPA is 
required by the CAA to designate areas throughout the nation as 
attaining or not attaining the standards. Effective June 15, 2004, we 
designated nonattainment areas for the 1997 8-hour ozone standards. See 
69 FR 23858 (April 30, 2004). The designations and classifications for 
the 1997 8-hour ozone standards for California areas are codified at 40 
CFR 81.305. In a rule governing certain facets of implementation of the 
8-hour ozone

[[Page 75766]]

standards (the Phase 1 Rule), the EPA classified the Coachella Valley 
as ``Serious'' for the 1997 8-hour ozone standards, with an attainment 
date no later than June 15, 2013. See 69 FR 23858 (April 30, 2004). On 
November 28, 2007, the California Air Resources Board (CARB or State) 
requested that the EPA reclassify the Coachella Valley 8-hour ozone 
nonattainment area from ``Serious'' to ``Severe-15.'' The EPA granted 
the reclassification, effective June 4, 2010, with an attainment date 
of not later than June 15, 2019. See 75 FR 24409 (May 5, 2010).
    The Coachella Valley area is located within Riverside County. For a 
precise description of the geographic boundaries of the area, see 40 
CFR 81.305. The Coachella Valley is under the jurisdiction of the South 
Coast Air Quality Management District (SCAQMD or District). The 
District and CARB are responsible for adopting and submitting a state 
implementation plan (SIP) to attain the 1997 8-hour ozone standards for 
nonattainment areas in their jurisdiction.
    Air quality in the Coachella Valley has steadily improved in recent 
years. Design values have declined from 0.108 ppm in 2003 to 0.088 ppm 
in 2015.\3\ Design values are used to designate and classify 
nonattainment areas, as well as to assess progress towards meeting the 
air quality standards.\4\
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    \3\ Design values for 2000 to 2006 are contained in Figure 8-5 
of the 2007 AQMP. Design values for 2005 to 2015 are contained in 
the Air Quality Subsystem (AQS) Preliminary Design Value Report for 
the Coachella Valley and Western Mojave Desert (September 7, 2016). 
These documents are in the docket for today's action.
    \4\ For more information about ozone design values, see 40 CFR 
50, Appendix I.
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    The Coachella Valley is downwind from the South Coast Air Basin, 
which is also regulated by the SCAQMD. The South Coast Air Basin's 
continued progress toward meeting the 1997 Ozone standards is critical 
to the Coachella Valley attaining the 1997 ozone standards. The 
SCAQMD's Final 2007 Air Quality Management Plan (2007 AQMP) states, 
``pollutant transport from the South Coast Air Basin to the Coachella 
Valley is the primary cause of its ozone nonattainment status.'' \5\ 
The 2007 AQMP cites several studies that confirm the transport between 
the two air basins.\6\ It also describes the late daily peak in ozone 
concentrations, 6:00 p.m. for Palm Springs, as indicative of pollution 
that has been transported. The 2007 AQMP states, ``if this peak [in 
ozone concentrations] were locally generated, it would be occurring 
near mid-day and not in the late afternoon or early evening.'' \7\ The 
2007 AQMP also compares the relative magnitudes of VOC and 
NOX emissions in the Coachella Valley and the South Coast 
Air Basin, showing average annual VOC emissions to be 30-40 times 
greater in the South Coast Air Basin than in the Coachella Valley, and 
average annual NOX emissions to be more than 20 times 
greater in the South Coast Air Basin.\8\
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    \5\ ``Final 2007 Air Quality Management Plan,'' South Coast Air 
Quality Management District, June 2007, see page 8-1.
    \6\ 2007 AQMP at 8-4 (citing R.W. Keith (SCAQMD) A 
Climatological/Air Quality Profile, California South Coast Air 
Basin, 1980; E.K. Kauper (Pollution Res. & Control Corp.), Coachella 
Valley Air Quality Study, Final Report, (County Contract & U.S. 
Public Health Service Grant No. 69-A-0610), 1971; P.J. Drivas and 
F.H. Shair, A Tracer Study of Pollutant Transport in the Los Angeles 
Area, Atmos. Environ. 8: 1155-1163. 4, 1974; T.B. Smith et al. (ARB 
Contract to MRI/Caltech), ``The Impact of Transport from the South 
Coast Air Basin on Ozone Levels in the Southeast Desert Air Basin,'' 
1983).
    \7\ 2007 AQMP at 8-4.
    \8\ 2007 AQMP at 8-4, Table 8-2.
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II. CAA and Regulatory Requirements for Ozone Nonattainment SIPs

    States must implement the 1997 8-hour ozone standards under Title 
1, Part D of the CAA, which includes section 172, ``Nonattainment plan 
provisions,'' and subpart 2, ``Additional Provisions for Ozone 
Nonattainment Areas'' (sections 181-185).
    In order to assist states in developing effective plans to address 
ozone nonattainment problems, the EPA issued an implementation rule for 
the 1997 8-hour ozone standards (``1997 Ozone Implementation Rule''). 
This rule was finalized in two phases. The first phase of the rule 
addressed classifications for the 1997 8-hour ozone standards, 
applicable attainment dates for the various classifications, and the 
timing of emissions reductions needed for attainment. See 69 FR 23951 
(April 30, 2004). The second phase addressed SIP submittal dates and 
the requirements for reasonably available control technology and 
measures (RACT and RACM), reasonable further progress (RFP), modeling 
and attainment demonstrations, contingency measures, and new source 
review. See 70 FR 71612 (November 29, 2005). The rule was codified at 
40 CFR part 51, subpart X.
    The EPA announced the revocation of the 1997 8-hour ozone NAAQS and 
the anti-backsliding requirements that apply upon revocation, in a 
rulemaking that established final implementation rules for the 2008 8-
hour ozone NAAQS. 80 FR 12264 (March 6, 2015). Consistent with the 
anti-backsliding provisions in CAA section 172(e), the EPA included 
anti-backsliding requirements that apply upon revocation of the 1997 8-
hour ozone NAAQS. Notwithstanding revocation of the 1997 8-hour ozone 
NAAQS, areas that were designated as nonattainment for the 1997 8-hour 
ozone NAAQS at the time the standards were revoked continue to be 
subject to certain SIP requirements that had previously applied based 
on area classifications for the standards. Id. at 12296; 40 CFR 51.1105 
and 51.1100(o). Thus, in general, the Coachella Valley remains subject 
to the requirements of the 1997 8-hour ozone NAAQS applicable to 
``Severe'' nonattainment areas.
    We discuss the CAA and regulatory requirements for 1997 8-hour 
ozone nonattainment plans in more detail below.

III. CARB's SIP Submittals To Address the 1997 8-Hour Ozone Standards 
in the Coachella Valley Nonattainment Area

A. CARB's SIP Submittals

    Designation of an area as nonattainment starts the process for a 
state to develop and submit to the EPA a SIP providing for attainment 
of the NAAQS under title 1, part D of the CAA. For areas designated as 
nonattainment for the 1997 8-hour ozone NAAQS effective June 15, 2004, 
this attainment SIP was due by June 15, 2007. See CAA section 172(b). 
CARB made the following five SIP submittals to address the CAA planning 
requirements for attaining the 1997 8-hour ozone NAAQS for the 
Coachella Valley (and other areas as noted):
     ``Final 2007 Air Quality Management Plan,'' South Coast 
Air Quality Management District, June 2007 (2007 AQMP); \9\
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    \9\ See letter from James N. Goldstene, Executive Officer, CARB, 
to Wayne Nastri, Regional Administrator, EPA Region 9, November 28, 
2007 with enclosures.
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     ``2007 State Strategy for the California State 
Implementation Plan,'' Release Date April 26, 2007 and Appendices A--G, 
CARB, Release Date May 7, 2007 (2007 State Strategy); \10\
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    \10\ See letter from James N. Goldstene, Executive Officer, 
CARB, to Wayne Nastri, Regional Administrator, EPA Region 9, 
November 16, 2007 with enclosures.
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     ``Status Report on the State Strategy for California's 
2007 State Implementation Plan (SIP) and Proposed Revision to the SIP 
Reflecting Implementation of the 2007 State Strategy,'' CARB, Release 
Date: March 24, 2009 (2009 State Strategy Status Report);
     ``Progress Report on Implementation of PM2.5 
State

[[Page 75767]]

Implementation Plans (SIP) for the South Coast and San Joaquin Valley 
Air Basins and Proposed SIP Revisions,'' CARB, Release Date March 29, 
2011 (2011 State Strategy Progress Report); and
     ``Staff Report, Proposed Updates to the 1997 8-Hour Ozone 
Standard, State Implementation Plans; Coachella Valley and Western 
Mojave Desert,'' CARB, Release Date: September 22, 2014 (2014 SIP 
Update).\11\
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    \11\ See letter from Richard Corey, Executive Officer CARB, to 
Jared Blumenfeld, Regional Administrator, U.S. EPA, dated November 
6, 2014 with enclosures.
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    Additionally, on March 24, 2008, CARB submitted an Ozone Early 
Progress Plan \12\ for several areas, including the Coachella Valley. 
The plan consisted of motor vehicle emissions budgets for 
transportation conformity. The EPA found the Coachella Valley 
NOX and VOC budgets adequate for the 1997 ozone standards, 
effective May 22, 2008. See 73 FR 25694 (May 7, 2008).
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    \12\ ``Early Progress Plans Demonstrating Progress Toward 
Attaining the 8-hour National Air Quality Standards for Ozone and 
Setting Transportation Conformity Budgets for Ventura County, 
Antelope Valley--Western Mojave Desert, Coachella Valley, Eastern 
Kern County, and Imperial County'' (revised), CARB (February 27, 
2008).
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    In today's proposal, we refer to the portions of these documents 
relevant to the Coachella Valley collectively as the ``Coachella Valley 
Ozone Plan'' or ``the Plan.'' EPA has already approved portions of 
these documents in actions for other nonattainment areas.\13\ 
Similarly, in today's proposal, we are evaluating and proposing action 
on only those portions of the 2007 AQMP that are relevant to attainment 
of the 1997 8-hour ozone NAAQS in the Coachella Valley. Below is a 
description of the portions that are relevant to the Coachella Valley.
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    \13\ For example, portions of the 2007 AQMP, 2007 State 
Strategy, and the 2011 State Strategy Progress Report were approved 
in EPA actions on the SCAQMD Attainment Plan for the 1997 8-hour 
Ozone Standards. See 77 FR 12674 (March 1, 2012) and 79 FR 52539 
(September 3, 2014).
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2007 AQMP
    The 2007 AQMP discusses attainment of the 1997 ozone NAAQS for both 
the South Coast Air Basin and Coachella Valley, and the 1997 p.m.2.5 
NAAQS for the South Coast Air Basin. We are only acting on the ozone 
portions of the 2007 AQMP, and only on the portions applicable to the 
Coachella Valley, which includes the following sections of the 2007 
AQMP: the emissions estimates, RFP demonstrations, and motor vehicle 
emission budgets for the Coachella Valley in Chapter 8; the detailed 
base and future emission inventories in Appendix III; the modeling for 
the attainment demonstration in Chapter 5 and Appendix V; the control 
strategy in Chapters 4 and 7; and the RACM discussion in Chapter 6 and 
Appendix VI.
State Strategy
    The 2007 State Strategy, as amended by the 2009 State Strategy 
Status Report and 2011 State Strategy Progress Report, provides a RACM 
demonstration for mobile sources. The relevant portions of the 2007 
State Strategy include Chapter 3, which describes California's SIP 
commitments, and Chapter 5, which lists individual measures in more 
detail, as part of the State's submittal. We note, however, that other 
portions of the 2007 State Strategy contain additional information 
relevant to Coachella Valley, such as emissions reductions from the 
Strategy contained in Appendix A. Appendix F of the 2011 State Strategy 
Progress Report provides revised control measure commitments and a 
revised rule implementation schedule for the 2007 AQMP.
2014 SIP Update
    The 2014 SIP Update, which covers both the Coachella Valley and 
Western Mojave Desert 1997 8-hour ozone nonattainment areas, updates 
the following sections of the 2007 AQMP: emissions inventories; RFP 
demonstration, and vehicle miles travelled (VMT) offset demonstration. 
The 2014 SIP Update also updates the motor vehicle emissions budgets in 
the Ozone Early Progress Plan mentioned above. It also revises the 
attainment targets for NOX and VOC emissions, using the same 
percentage reduction from the 2002 baseline as planned in the 2007 
AQMP. Finally, the 2014 SIP Update (and 2007 AQMP) also contain 
contingency measures to be implemented in the event the area fails to 
meet an RFP milestone or fails to attain by the applicable date, as 
required by CAA section 172(c)(9). We are not proposing action on these 
contingency measures at this time. Contingency measures are a distinct 
provision of the Clean Air Act that we may act on separately from the 
attainment requirements.

B. CAA Procedural and Administrative Requirements for SIP Submittals

    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 submittal of a SIP or SIP revision. To meet 
this requirement, every SIP submittal should include evidence that 
adequate public notice was given and an opportunity for a public 
hearing was provided consistent with the EPA's implementing regulations 
in 40 CFR 51.102.
    The SCAQMD and CARB provided public notice and an opportunity for 
public comment through public comment periods, and held public hearings 
prior to adopting the components of the Coachella Valley Ozone Plan. 
Hearing and adoption dates are shown in Table 1. The SCAQMD's and 
CARB's submittals both include proof of publication for notices of the 
District's and CARB's public hearings, as evidence that all hearings 
were properly noticed. Therefore, we find the submittals meet the 
procedural requirements of CAA sections 110(a) and 110(l).

   Table 1--Agencies and Adoption Dates for the Coachella Valley Attainment Plan for the 1997 Ozone Standards
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                                                                           Hearing and adoption        Board
          Agency/Submittal                  Start of public notice                dates             resolution
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SCAQMD/2007 AQMP....................  March 2, 2007....................  June 1, 2007...........            07-9
CARB/2007 State Strategy............  May 7, 2007......................  June 21 and 22, 2007,             07-28
                                                                          and July 27, 2007.
CARB/2007 AQMP......................  August 10, 2007..................  September 27, 2007.....           07-41
CARB/2009 State Strategy Status       March 24, 2009...................  April 23, 2009.........           09-34
 Report.
CARB/2011 State Strategy Progress     March 29, 2011...................  April 28, 2011.........           11-24
 Report.
CARB/2014 SIP Update................  September 22, 2014...............  October 24, 2014.......           14-29
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[[Page 75768]]

    CAA section 110(k)(1)(B) requires that the EPA determine whether a 
SIP submittal is complete within 60 days of receipt. This section of 
the CAA also provides that any plan that the EPA has not affirmatively 
determined to be complete or incomplete will be deemed complete by 
operation of law six months after the date of submittal. The EPA's SIP 
completeness criteria are found at 40 CFR part 51, Appendix V. The 
EPA's completeness determinations for each submittal are shown in Table 
2.

  Table 2--Submittals and Completeness Determinations for the Coachella
                            Valley Ozone Plan
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            Submittal               Submittal date     Completeness date
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2007 State Strategy.............  November 16, 2007.  May 14, 2008.
2007 AQMP.......................  November 28, 2007.  May 26, 2008.
2009 State Strategy Status        August 12, 2009...  February 8, 2010.
 Report.
2011 State Strategy Progress      July 29, 2011.....  January 25 2012.
 Report.
2014 SIP Update.................  November 6, 2014..  May 5, 2015.
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IV. Review of the Coachella Valley Ozone Plan

A. Emissions Inventories

1. Requirements for Emissions Inventories
    CAA section 182(a)(1) requires each state with an ozone 
nonattainment area classified under subpart 2 to submit a 
``comprehensive, accurate, current inventory of actual emissions from 
all sources'' of the relevant pollutants in accordance with guidance 
provided by the Administrator. While this inventory is not a specific 
requirement under the anti-backsliding provisions at 40 CFR 51.1105 and 
51.1100(o), it provides support for demonstrations required under these 
anti-backsliding rules. Additionally, a baseline emissions inventory is 
needed for the attainment demonstration and for meeting RFP 
requirements. EPA's 1997 Ozone Implementation Rule identifies 2002 as 
the baseline year for the SIP planning emissions inventory. See 69 FR 
23980 (October 27, 2004). EPA emissions inventory guidance sets 
specific planning requirements pertaining to future milestone years for 
reporting RFP and to attainment demonstration years.\14\ Key RFP 
analysis years in the RFP demonstration include 2008 and every 
subsequent 3 years until the attainment date.
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    \14\ ``Emission Inventory Guidance for Implementation of Ozone 
and Particulate Matter National Ambient Air Quality Standards 
(NAAQS) and Regional Haze Regulations'' (EPA-454/R-05-001, August 
2005, updated November 2005) and ``Final Rule to Implement the 8-
Hour Ozone National Ambient Air Quality Standards--Phase 2'' (70 FR 
71612).
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    We have evaluated the emissions inventories in the Coachella Valley 
Ozone Plan to determine if they are consistent with EPA guidance and 
adequate to support the Plan's RACM, RFP, rate of progress (ROP) and 
attainment demonstrations.
2. Emissions Inventories in the Coachella Valley Ozone Plan
    Appendix A of the 2014 SIP Update contains detailed emissions 
inventories for the Coachella Valley. A partial summary of this 
information is contained in Table 3. The average summer weekday 
emissions typical of the ozone season are used for the 2002 base year 
planning inventory and the 2018 attainment year.\15\ These inventories 
incorporate reductions from federal, state, and district control 
measures received by CARB through September 2012.
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    \15\ ``Attainment year'' refers to the ozone season immediately 
preceding a nonattainment area's attainment date. In the case of the 
Coachella Valley, the applicable attainment date is June 15, 2019, 
and the ozone season immediately preceding that date will occur in 
year 2018.

 Table 3--Coachella Valley NOX and VOC Emissions Inventory Summaries for the 2002 Base Year and 2018 Attainment
                                                      Year
                             [Average summer weekday emissions in tons per day] \a\
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                                                                NOX                             VOC
                    Category                     ---------------------------------------------------------------
                                                       2002            2018            2002            2018
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Stationary Sources..............................           0.875           0.851           3.067           4.182
Area Sources....................................           0.492           0.305           5.061           3.863
On-Road Mobile Sources..........................          33.009          10.558           9.294           2.897
Other Mobile Sources............................           8.912           5.109           5.287           3.919
                                                 ---------------------------------------------------------------
    Totals \b\..................................          43.287          16.823          22.709          14.861
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\a\ Source: 2014 SIP Update, Appendix A, Table A-1.
\b\ Because of rounding conventions, source categories may not add to the exact emission totals.

    The on-road motor vehicles inventory category consists of trucks, 
automobiles, buses, and motorcycles. California's model for estimating 
emissions from on-road motor vehicles operating in California is 
referred to as ``EMFAC'' (short for EMission FACtor). EMFAC has 
undergone many revisions over the years. At the time the 2014 SIP 
Update was submitted, EMFAC2011 was the model approved by the EPA for 
estimating on-road motor source emissions in California.\16\ See 78 FR 
14533 (March 6, 2013). Appendix D of the 2014 SIP Update contains the 
latest on-road motor vehicle summer planning VOC and NOX 
inventories, vehicle population, VMT and trips for each

[[Page 75769]]

EMFAC vehicle class category for the Coachella Valley. The motor 
vehicle emissions in the Plan are based on CARB's EMFAC2011 emission 
factor model and the latest planning assumptions from Southern 
California Association of Government's (SCAG's) 2012-2035 Regional 
Transportation Plan.\17\
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    \16\ EMFAC2011's approval is granted in 78 FR 14533. More 
recently, the EPA approved EMFAC2014 as the model for estimating on-
road emissions. That approval allowed the continued use of EMFAC2011 
until December 14, 2017. See 80 FR 77337.
    \17\ SCAG's Regional Transportation Plan 2012-2035, including 
Amendment #1 and #2 and the Air Quality Conformity Analysis. April 
2012. Federal Highway Administration approval July 15, 2013.
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    The 2014 SIP Update contains off-road VOC and NOX 
inventories developed by CARB using category-specific methods and 
models.\18\ The off-road mobile source category includes aircraft, 
trains, ships, and off-road vehicles and equipment used for 
construction, farming, commercial, industrial, and recreational 
activities.
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    \18\ Detailed information on CARB's off-road motor vehicle 
emissions inventory methodologies is found at: http://www.arb.ca.gov/msei/categories.htm#offroad_motor_vehicles.
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    The stationary source category of the emissions inventory includes 
non-mobile, fixed sources of air pollution comprised of individual 
industrial, manufacturing, and commercial facilities. Examples of 
stationary sources (a.k.a., point sources) include fuel combustion 
(e.g., electric utilities), waste disposal (e.g., landfills), cleaning 
and surface coatings (e.g., printing), petroleum production and 
marketing, and industrial processes (e.g., chemical). Stationary source 
operators report to the District the process and emissions data used to 
calculate emissions from point sources. The District then enters the 
information reported by emission sources into the California Emission 
Inventory Development and Reporting System (CEIDARS) database.\19\
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    \19\ The CEIDARS database consists of two categories of 
information: source information and utility information. Source 
information includes the basic inventory information generated and 
collected on all point and area sources. Utility information 
generally includes auxiliary data, which helps categorize and 
further define the source information. Used together, CEIDARS is 
capable of generating complex reports based on a multitude of 
category and source selection criteria.
---------------------------------------------------------------------------

    The area sources category includes aggregated emissions data from 
processes that are individually small and widespread or not well-
defined point sources. The area source subcategories include solvent 
evaporation (e.g., consumer products and architectural coatings) and 
miscellaneous processes (e.g., residential fuel combustion and farming 
operations). Emissions from these sources are calculated from product 
sales, population, employment data, and other parameters for a wide 
range of activities that generate air pollution in the Coachella 
Valley.\20\
---------------------------------------------------------------------------

    \20\ Detailed information on the area-wide source category 
emissions is found on the CARB Web site: http://www.arb.ca.gov/ei/areasrc/areameth.htm.
---------------------------------------------------------------------------

    The emission inventories in the 2014 SIP Update use the California 
Emission Projection Analysis Model (CEPAM).\21\ The CEPAM model used in 
the 2014 SIP Update is based on a 2008 baseline inventory developed 
using the methods and databases described above (e.g., EMFAC2011; 
CEIDARS; and CARB modular off-road equipment updates such as the 2011 
In-Use Off-Road Equipment model, Transportation Refrigeration Units 
model, and Cargo Handling Equipment model.). The inventory was 
calibrated to 2008 emissions and activity levels, and inventories for 
other years are back-cast (e.g., 2002) or forecast (e.g., 2018) using 
CEPAM from that base inventory.\22\
---------------------------------------------------------------------------

    \21\ Appendix A of the 2014 SIP Update contains the estimated 
VOC and NOX stationary, area-wide and off-road forecast 
summaries by Emission Inventory Code categories for the Coachella 
Valley from CEPAM. A CEPAM inventory tool was created to support the 
development of the 2012 PM2.5 SIPs due at that time. The 
tool was designed to support all of the modeling, planning, and 
reporting requirements due at that time and includes updates for all 
the pollutants (e.g., NOX and VOC). Modeling results, 
which are summarized in Appendix A, are available separately in 
electronic file format.
    \22\ 2014 SIP Update, page A-1
---------------------------------------------------------------------------

3. Proposed Action on the Emissions Inventories
    We have reviewed the emissions inventories in the Coachella Valley 
Ozone Plan and the inventory methodologies used by the District and 
CARB for consistency with CAA section 182(a)(1) and EPA guidance. We 
find that the base year and projected attainment year inventories are 
comprehensive, accurate, and current inventories of actual and 
projected emissions of NOX and VOC in the Coachella Valley 
as of the date of the submittal. Accordingly, we propose to find that 
these inventories provide an appropriate basis for the various other 
elements of the Coachella Valley Ozone Plan, including the RACM, ROP, 
RFP, and attainment demonstrations.

B. Reasonably Available Control Measures Demonstration and Adopted 
Control Strategy

1. RACM Requirements
    CAA section 172(c)(1) requires that each attainment plan provide 
for the implementation of all reasonable available control measures as 
expeditiously as practicable and provide for attainment of the NAAQS. 
The RACM demonstration requirement is a continuing applicable 
requirement for the Coachella Valley under the EPA's anti-backsliding 
rules that apply once a standard has been revoked. See 40 CFR 
51.1105(a)(1) and 51.1100(o)(17).
    The EPA has previously provided guidance interpreting the RACM 
requirement in the ``General Preamble for the Implementation of Title I 
of the Clean Air Act Amendments of 1990'' (``General Preamble'') \23\ 
and in a memorandum entitled ``Guidance on Reasonably Available Control 
Measures (RACM) Requirements and Attainment Demonstration Submissions 
for the Ozone NAAQS,'' John Seitz, November 30, 1999 (Seitz memo).\24\ 
In summary, EPA guidance provides that to address the requirement to 
adopt all RACM, states should consider all potentially reasonable 
control measures for source categories in the nonattainment area to 
determine whether they are reasonably available for implementation in 
that area and whether they would, if implemented individually or 
collectively, advance the area's attainment date by one year or 
more.\25\
---------------------------------------------------------------------------

    \23\ See 57 FR 13498, 13560. The General Preamble describes the 
EPA's preliminary view on how we would interpret various SIP 
planning provisions in title I of the CAA as amended in 1990, 
including those planning provisions applicable to the 1-hour ozone 
standards. The EPA continues to rely on certain guidance in the 
General Preamble to implement the 8-hour ozone standards under title 
I.
    \24\ Available at www.epa.gov/ttn/oarpg/t1pgm.html.
    \25\ See Seitz memo and General Preamble at 13560; see also 
``State Implementation Plans; General Preamble for Proposed 
Rulemaking on Approval of Plan Revisions for Nonattainment Areas,'' 
44 FR 20372 (April 4, 1979) and Memorandum dated December 14, 2000, 
from John S. Seitz, Director, Office of Air Quality Planning and 
Standards, ``Additional Submission on RACM from States with Severe 
One-Hour Ozone Nonattainment Area SIPs.''
---------------------------------------------------------------------------

    Any measures that are necessary to meet these requirements that are 
not already either federally promulgated, part of the state's SIP, or 
otherwise creditable in SIPs must be submitted in enforceable form as 
part of a state's attainment plan for the area. CAA section 172(c)(6) 
requires nonattainment plans to include enforceable emission 
limitations, and such other control measures, means or techniques 
(including economic incentives such as fees, marketable permits, and 
auctions of emission rights), as well as schedules and timetables for 
compliance, as may be necessary or appropriate to provide for 
attainment of such standards in such area by the applicable attainment 
date. See also CAA section 110(a)(2)(A).
    The purpose of the RACM analysis is to determine whether or not 
control measures exist that are economically and technically reasonable 
and that provide emissions reductions that

[[Page 75770]]

would advance the attainment date for nonattainment areas. The EPA 
defines RACM as any potential control measure for application to point, 
area, on-road and non-road emission source categories that: (1) Is 
technologically feasible; (2) is economically feasible; (3) does not 
cause ``substantial widespread and long-term adverse impacts''; (4) is 
not ``absurd, unenforceable, or impracticable''; and (5) can advance 
the attainment date by at least one year. General Preamble at 13560.
    For ozone nonattainment areas classified as moderate or above, CAA 
section 182(b)(2) also requires implementation of RACT for all major 
sources of VOC and for each VOC source category for which the EPA has 
issued a Control Techniques Guidelines (CTG) document. CAA section 
182(f) requires that RACT under section 182(b)(2) also apply to major 
stationary sources of NOX. In Severe areas, a major source 
is a stationary source that emits or has the potential to emit at least 
25 tons of VOC or NOX per year. CAA section 182(d). Under 
the 8-hour ozone implementation rule, states were required to submit 
SIP revisions meeting the RACT requirements of CAA sections 182(b)(2) 
and 182(f) no later than 27 months after designation for the 8-hour 
ozone standards (September 15, 2006, for areas designated in April 
2004) and to implement the required RACT measures no later than 30 
months after that submittal deadline. See 40 CFR 51.912(a). The EPA has 
approved the RACT SIP for the SCAQMD for the 1997 ozone standards, 
which included rules applicable to the Coachella Valley. See 73 FR 
76947 (December 18, 2008).
2. Control Strategy and RACM Demonstration in the Coachella Valley 
Ozone Plan
a. The District's RACM Demonstration
    Appendix VI of the 2007 AQMP includes a RACM demonstration covering 
both the South Coast Air Basin and the Coachella Valley, which focuses 
on control measures for stationary and area sources. The process to 
identify RACM involved public meetings to solicit input, evaluation of 
the EPA's suggested RACM, and evaluation of air emissions rules in 
other areas (including the San Joaquin Valley, the San Francisco Bay 
Area, Sacramento, Ventura, Dallas-Fort Worth, the Houston-Galveston 
area and the Lake Michigan Air Directors Consortium). The District also 
reevaluated all 82 of its existing rules and regulations. The RACM 
evaluation process included a summit where CARB technical experts, 
local government representatives and the public suggested alternative 
ways to attain air quality standards. More than 200 potential control 
measures were identified. The District then screened the identified 
measures and rejected those that would not individually or collectively 
advance attainment in the area by at least one year, had already been 
adopted as rules, or were in the process of being adopted. The 
remaining measures were evaluated by taking into account baseline 
inventories, available control technologies, and potential emission 
reductions as well as whether the measure could be implemented on a 
schedule that would advance attainment of the 1997 8-hour ozone 
standards by at least a year.\26\
---------------------------------------------------------------------------

    \26\ 2007 AQMP, Appendix VI, page VI-1 and 2.
---------------------------------------------------------------------------

    Based on this analysis, SCAQMD scheduled 16 new or revised 
stationary source control measures for development and adoption, 
including revisions to make SCAQMD rules at least as stringent as other 
California districts' rules and several innovative measures. Since 
submission of the AQMP in 2007, the SCAQMD has adopted 12 of these 
rules and submitted them to the EPA for approval into the SIP. Table 4 
lists the measures identified in the 2007 AQMP,\27\ with citations to 
the Federal Register notice that incorporates each measure into the 
SIP, where applicable. These rules are part of the District's 
enforceable commitment to achieve emissions reductions. However, the 
District acknowledged that its commitment to adopt any given rule might 
prove to be infeasible, meaning the control technology may not be 
available or achievement of the emissions reductions may not be cost 
effective. In adopting the 2007 AQMP, the SCAQMD Board committed to 
``substitute any other measures as necessary to make up any emissions 
reduction shortfall.'' \28\
---------------------------------------------------------------------------

    \27\ 2007 AQMP, Tables 4-1, 4-2A and 4-2B.
    \28\ Attachment A of the 2007 AQMP, SCAQMD Board Resolution 07-
9, dated June 1, 2007.

                          Table 4--Status of RACM Rules Identified in SCAQMD 2007 AQMP
----------------------------------------------------------------------------------------------------------------
                                                                                                Federal Register
                                                                            Ozone precursor      notice adopting
 Control measure             Rule No.                    Title                controlled          rule into the
                                                                                                       SIP
----------------------------------------------------------------------------------------------------------------
CTS-01...........  1144........................  Metalworking fluids    VOC...................  76 FR 70888, 11/
                                                  and direct-contact                             16/2011.
                                                  lubricants.
CTS-04...........  1143........................  Consumer Paint         VOC...................  76 FR 70888, 11/
                                                  Thinners and Multi-                            16/2011.
                                                  Purpose Solvents.
CMB-01...........  1147........................  NOX reductions from    NOX...................  75 FR 46845, 08/
                                                  miscellaneous                                  04/2010.
                                                  sources.
CMB-03...........  1111........................  Further NOX            NOX...................  75 FR 46845, 08/
                                                  reductions from                                04/2010.
                                                  space heaters.
FUG-02...........  461.........................  Gasoline transfer and  VOC...................  78 FR 21543, 04/
                                                  dispensing (VOC).                              11/2013.
FUG-04...........  1149........................  Storage Tank and       VOC...................  74 FR 67821, 12/
                                                  Pipeline Cleaning                              21/2009.
                                                  and Degassing.
MCS-01...........  1110.2......................  Liquid and gaseous     NOX and VOC...........  74 FR 18995,
                                                  fuels--stationary                              April 27, 2009.
                                                  ICEs (NOX and VOC).
MCS-01...........  1146........................  NOX from industrial,   NOX...................  79 FR 57442, 09/
                                                  institutional,                                 25/2014.
                                                  commercial boilers,
                                                  steam generators,
                                                  and process heaters.
MCS-01...........  1146.1......................  NOX from small ind,    NOX...................  79 FR 57442, 09/
                                                  inst, & commercial                             25/2014.
                                                  boilers, steam gens,
                                                  and process heaters.
MCS-05...........  1127........................  Livestock waste (VOC)  VOC...................  78 FR 30768, 05/
                                                                                                 23/2013.
----------------------------------------------------------------------------------------------------------------
                           Measures not yet adopted or not approved in the SIP by EPA
----------------------------------------------------------------------------------------------------------------
EGM-01...........  2301........................  Emissions reductions   NOX and VOC...........  No rule
                   (proposed)..................   from new or                                    associated with
                                                  redevelopment                                  this
                                                  projects (Indirect                             measure.\a\
                                                  Sources).
FLX-02...........  n/a.........................  Refinery pilot         VOC...................  No rule
                                                  program (VOC).                                 associated with
                                                                                                 this measure.
MOB-05...........  Title 13 Cal. Code of         AB923 LDV high         NOX and VOC...........  n/a.\b\
                    Regulations Sec.   2622.      emitter program.

[[Page 75771]]

 
MOB-06...........  Title 13 Cal. Code of         AB923 MDV high         NOX and VOC...........  n/a.\b\
                    Regulations Sec.   2622.      emitter program.
n/a..............  2449........................  SOON program.........  NOX...................  (proposed
                                                                                                 approval) 81 FR
                                                                                                 12637, 03/10/
                                                                                                 2016.
----------------------------------------------------------------------------------------------------------------
\a\ The District has not finalized Rule 2301.
\b\ SCAQMD implements this program through CARB's Enhanced Fleet Modernization Program.
n/a = not applicable.

    The EPA determined that the 2007 AQMP met the RACM requirement for 
the 1997 8-hour ozone standards in the South Coast Air Basin. See 77 FR 
12674 (March 1, 2012).\29\ CARB submitted a 2012 Air Quality Management 
Plan (2012 AQMP), developed by the SCAQMD, in February 2013 with 
additional information about the Coachella Valley, including data and 
discussion on air quality, pollutant transport, emissions inventories, 
attainment demonstration, and projections of future air quality.\30\ 
For the 2012 AQMP, the SCAQMD followed a process similar to that used 
for the 2007 AQMP, which included public meetings to solicit input, 
evaluation of EPA's suggested RACM, and evaluation of other air 
agencies' regulations. See Appendix VI of the 2012 AQMP. The District 
states in the 2012 AQMP that ``the 2007 AQMP adequately addressed and 
satisfied the CAA planning requirements for ozone in the Coachella 
Valley, and this chapter [Chapter 7: Current & Future Air Quality--
Desert Nonattainment Areas] is for information only.'' The 2012 AQMP 
does, however, include a new RACM demonstration. See Appendix VI of the 
2012 AQMP. It includes new and revised rules for the District since the 
adoption of the 2007 AQMP. The EPA approved the RACM demonstration in 
the 2012 AQMP as a revision to the SIP for both the 1-hour and 1997 8-
hour ozone standards for the South Coast Air Basin. See 79 FR 52526 
(September 3, 2014). Many of the new rules have been incorporated into 
the SIP,\31\ some have been proposed by the District but not 
incorporated into the SIP,\32\ and others have yet to be proposed 
locally.
---------------------------------------------------------------------------

    \29\ More recently, the EPA determined that the South Coast 
RECLAIM program did not meet RACM for PM2.5 because it 
allowed facilities to delay installation of selective catalytic 
reduction (SCR) to control NOX emissions. See 81 FR 22025 
(April 14, 2016). Only two facilities in Coachella Valley are part 
of the RECLAIM program and both facilities have an oxidation 
catalyst and SCR on each gas turbine. The Title V Permits for these 
facilities are included in the administrative record for this 
action. Additionally, SCAQMD Rule 2005 requires all emissions 
sources at any new or relocated RECLAIM facility to apply the best 
available control technology.
    \30\ Final Air Quality Management Plan, February 2013, South 
Coast Air Quality Management District.
    \31\ For example, CMB-03: Reductions from Commercial Space 
Heating (Rule 1111) and FUG-02: Emission Reduction from LPG Transfer 
and Dispensing--Phase II (Rule 1177).
    \32\ For example, CMB-01: Further NOX Reductions from 
RECLAIM.
---------------------------------------------------------------------------

c. Local Jurisdiction RACM Demonstration
    With respect to on-road mobile sources, we note that SCAG is the 
designated metropolitan planning organization (MPO) for a large portion 
of southern California, including Coachella Valley, and SCAG's 
membership includes local jurisdictions within the Coachella Valley. 
For the 2007 AQMP, SCAG evaluated a list of possible transportation 
control measures (TCMs) as one element of the larger RACM evaluation 
for the plan. TCMs are, in general, measures designed to reduce 
emissions from on-road motor vehicles through reductions in VMT or 
traffic congestion. SCAG's TCM development process is described in 
Appendix IV-C (``Regional Transportation Strategy and Control 
Measures'') of the 2007 AQMP, pages 49 to 55.
    In our final action on the 2007 AQMP for the South Coast Air Basin, 
we concluded that the evaluation processes undertaken by SCAG were 
consistent with the EPA's RACM guidance and found that there were no 
additional RACM, including no additional TCMs that would advance 
attainment of the 1997 8-hour ozone standards in the South Coast Air 
Basin. See 76 FR 57872, at 57883 (September 16, 2011) (proposed rule); 
77 FR 12674 (March 1, 2012) (final rule). More recently, we came to the 
same conclusion with respect to RACM and TCMs for the South Coast in 
our action on the ozone portion of the 2012 AQMP. See 79 FR 29712, at 
29720 (May 23, 2014) (proposed rule); 79 FR 52526 (September 3, 2014) 
(final rule).
    While TCMs are being implemented in the upwind South Coast Air 
Basin area to meet CAA requirements, neither the SCAQMD nor CARB rely 
on implementation of any TCMs in the Coachella Valley to demonstrate 
implementation of RACM in the Coachella Valley Ozone Plan. The SCAQMD 
and CARB justify the absence of TCMs in the Coachella Valley by 
reference to the significant influence of pollutant transport from the 
South Coast Air Basin on ozone conditions in the Coachella Valley. We 
agree that pollutant transport from the South Coast Air Basin is 
significant, and find that, given the influence of such transport and 
the minimal and diminishing emissions benefit generally associated with 
TCMs, no TCM or combination of TCMs implemented in the Coachella Valley 
would advance the attainment date in the Coachella Valley, and thus, no 
TCMs are reasonably available for implementation in the Coachella 
Valley for the purposes of meeting the RACM requirement. Lastly, we 
note that, while not required for CAA purposes, SCAG's most recent 
Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) 
(April 2016) includes a list of projects for the Coachella Valley, some 
of which represent the types of projects often identified as TCMs, such 
as traffic signalization projects and bike lane projects. See the 
transportation system project list for Riverside County, attached as an 
appendix to SCAG's 2016-2014 RTP/SCS (April 2016), available at http://scagrtpscs.net/Documents/2016/final/f2016RTPSCS_ProjectList.pdf.
d. The State Strategy RACM Demonstration
    CARB has primary responsibility for reducing emissions in 
California from new and existing on-road and off-road engines and 
vehicles, motor vehicle fuels, and consumer products. Given the need 
for significant emissions reductions from mobile sources to meet the 
ozone standards in California nonattainment areas, CARB has been a 
leader in the development of stringent control measures for on-road and 
off-road mobile sources, fuels and

[[Page 75772]]

consumer products. Because of this role, the 2007 AQMP identifies 
CARB's 2007 State Strategy as a key component of the control strategy 
necessary to attain the 1997 ozone standards. The 2007 State Strategy 
includes measures to reduce emissions from multiple sectors, including 
in-use heavy duty trucks, smog check improvements, reformulated 
gasoline, cleaner off-road equipment, cleaner consumer products, ships, 
harbor craft and port trucks. See 2007 State Strategy, Chapter 5.
    CARB developed its 2007 State Strategy after an extensive public 
consultation process to identify potential SIP measures. From this 
process, CARB identified and committed to propose 15 new defined 
measures. These measures focus on cleaning up the in-use fleet as well 
as increasing the stringency of emissions standards for a number of 
engine categories, fuels, and consumer products. Many, if not most, of 
these measures have been adopted or are being proposed for adoption for 
the first time anywhere in the nation. They build on CARB's already 
comprehensive program described above that addresses emissions from all 
types of mobile sources and consumer products, through both regulations 
and incentive programs.
    In adopting the 2007 State Strategy, CARB committed to reducing 
Coachella Valley NOX emissions by 7 tons per day (tpd) and 
VOC emissions by 2 tpd through the implementation of measures 
identified in the 2007 State Strategy.\33\ However, this proposed 
action does not rely on the NOX and VOC commitments in the 
2007 State Strategy, because the 2014 SIP Update shows that the 
Coachella Valley would meet the NOX and VOC attainment and 
RFP goals, under existing rules received through September 2012.\34\
---------------------------------------------------------------------------

    \33\ Board Resolution 07-28, CARB, September 27, 2007, page 7, 
Attachment B.
    \34\ 2014 SIP Update, page A-1.
---------------------------------------------------------------------------

    CARB adopted the 2009 State Strategy Status Report in April 2009. 
This submittal updated the 2007 State Strategy to reflect its 
implementation during 2007 and 2008, and also to reflect changes 
resulting from the adoption of the scoping plan mandated by Assembly 
Bill 32 that will help reduce ozone during SIP implementation.\35\ The 
update also changes assumptions about economic conditions and the 
availability of incentive funds.\36\ Finally, the 2007 State Strategy 
was revised to address approvability issues brought up by the EPA.\37\
---------------------------------------------------------------------------

    \35\ 2009 State Strategy Status Report, page v.
    \36\ 2009 State Strategy Status Report, page v.
    \37\ 2009 State Strategy Status Report, page 2.
---------------------------------------------------------------------------

    CARB again revised the state strategy in the 2011 State Strategy 
Progress Report. While the changes primarily address attainment of the 
1997 PM2.5 standards, the 2011 State Strategy Progress 
Report also includes an appendix that updates the control measure 
adoption schedule and revises the emissions estimates to reflect 
changes made by CARB to the on-road truck and off-road equipment rules 
in 2010.\38\
---------------------------------------------------------------------------

    \38\ 2011 State Strategy Progress Report at Appendix F 
(``Revisions to 2007 P.M.2.5 and Ozone State 
Implementation Plan for South Coast Air Basin and Coachella 
Valley'') (March 2011).
---------------------------------------------------------------------------

    We have previously determined that CARB's mobile source control 
programs constituted RACM for the attainment plan for the 1997 Ozone 
NAAQS in the South Coast Air Basin. See 77 FR 12674 (March 1, 2012). 
Since then, CARB has adopted additional mobile source control measures 
including the Advanced Clean Cars program (also known as the Low 
Emission Vehicle Program III or LEV-III), heavy-duty vehicle idling 
rules, revisions to CARB's in-use rules for on-road and non-road diesel 
vehicles, and emissions standards for non-road equipment, cargo 
handling equipment, and recreational vehicles. See 81 FR 39424 (June 
18, 2016).
3. The EPA's Evaluation of the Control Strategy and RACM
    For the Coachella Valley in 2017 (the year prior to the attainment 
year), the emissions inventory shows that nearly all of the locally 
generated NOX emissions (93%) and nearly half of the VOC 
emissions (48%) derive from mobile sources.\39\ Mobile source emissions 
are well controlled throughout California because of stringent control 
measures in place for on-road and off-road mobile sources and fuels. 
See, e.g., 2007 State Strategy, p. 37. Additionally, as noted above, 
the EPA has already determined CARB's rules in the 2007 State Strategy, 
as revised in 2009 and 2011, meet RACM, and CARB continues to adopt new 
and more stringent mobile source rules. In view of the transport of 
pollutants into the Coachella Valley from the South Coast Air Basin 
(see discussion at section I.B above) and the extensive control of 
mobile sources by CARB, we propose to find that the Coachella Valley 
Ozone Plan provides for implementation of all RACM necessary to 
demonstrate expeditious attainment of the 1997 8-hour ozone standards 
in the Coachella Valley, consistent with the applicable requirements of 
CAA section 172(c)(1) and 40 CFR 51.1105(a)(1) and 51.1100(o)(17).
---------------------------------------------------------------------------

    \39\ Based on data from Tables A-1 and A-2 of the 2014 SIP 
Update.
---------------------------------------------------------------------------

C. Attainment Demonstration

1. Requirements for Attainment Demonstrations
    CAA section 182(c)(2)(A) requires states with ozone nonattainment 
areas classified as ``Serious'' or above to submit plans that 
demonstrate attainment of the ozone NAAQS as expeditiously as 
practicable but no later than the specified attainment date. For any 
ozone nonattainment area classified as serious or above, section 
182(c)(2)(A) of the CAA specifically requires the State to submit a 
modeled attainment demonstration based on a photochemical grid modeling 
evaluation or any other analytical method determined by the 
Administrator to be at least as effective as photochemical modeling. 
The attainment demonstration requirement is a continuing applicable 
requirement for the Coachella Valley under the EPA's anti-backsliding 
rules that apply once a standard has been revoked. See 40 CFR 
51.1105(a)(1) and 51.1100(o)(12).
    For more detail on the requirements for modeling an 8-hour ozone 
attainment demonstration, see the Technical Support Document (TSD) for 
today's proposal. The modeling section of the TSD includes a complete 
list of applicable modeling guidance documents. These documents 
describe the components of the attainment demonstration, explain how 
the modeling and other analyses should be conducted, and provide 
overall guidance on the technical analyses for attainment 
demonstrations.
    As with any predictive tool, inherent uncertainties are associated 
with photochemical grid modeling. The EPA's guidance recognizes these 
limitations and provides recommended approaches for considering other 
analytical evidence to help assess whether attainment of the NAAQS is 
likely. This process is called a weight of evidence (WOE) analysis.
    The EPA's modeling guidance (updated in 1996, 1999, and 2002) 
discusses various WOE analyses. This guidance was updated again in 2005 
and 2007 for the 1997 8-hour attainment demonstration procedures to 
include a WOE analysis as an integral part of any attainment 
demonstration. This guidance strongly recommends that all attainment 
demonstrations include supplemental analyses beyond the recommended 
modeling. These supplemental analyses can provide

[[Page 75773]]

additional information such as data analyses, and emissions and air 
quality trends, which can help strengthen the conclusion based on the 
photochemical grid modeling.
2. 8-Hour Attainment Demonstration Modeling and Weight of Evidence 
Analysis in the South Coast 2007 AQMP
a. Photochemical Grid Modeling Attainment Demonstration Results
i. Photochemical Grid Model
    The model selected for the 2007 AQMP attainment demonstrations is 
the Comprehensive Air Quality Model with Extensions (CAMx), version 4.4 
(Environ, 2006), using Statewide Air Pollution Research Center-99 
(SAPRC-99) gas phase mechanisms (Carter, 2000).\40\ The modeling system 
(including the photochemical model, meteorological inputs, and chemical 
mechanism) is consistent with the previous advice of outside peer 
reviewers. CAMx is a state-of-the-art air quality model that can 
simulate ozone and PM2.5 concentrations together in a ``one-
atmosphere'' approach for attainment demonstrations. CAMx is designed 
to integrate the output from both prognostic and diagnostic 
meteorological models.
---------------------------------------------------------------------------

    \40\ Carter, W.P.L., May 8, 2000a. Documentation of the SAPRC-99 
chemical mechanism for VOC reactivity assessment. Report to the 
California Air Resources Board, Contracts 92-329 and 95-308.
---------------------------------------------------------------------------

ii. Episode Selection
    Six meteorological episodes from three years are used as the basis 
for the plan. An earlier modeling effort, contained in SCAQMD's 2003 
Air Quality Management Plan, benefited from the intensive monitoring 
conducted under the 1997 Southern California Ozone Study (SCOS 1997) 
where the August 4-7, 1997, episode was the cornerstone of the modeling 
analysis. One of the primary modeling episodes used in the earlier 
modeling from August 5-6, 1997, was also selected for this plan. In 
addition, five episodes that occurred during the Multiple Air Toxics 
Exposure Study III (MATES-III) sampling program in 2004 (August 7-8) 
and 2005 (May 21-22, July 15-19, August 4-6, and August 27-28) were 
selected.\41\ The TSD for today's proposal provides further 
information.
---------------------------------------------------------------------------

    \41\ Final Report, Multiple Air Toxics Exposure Study in the 
South Coast Air Basin (MATES-III), SCAQMD, September 2008.
---------------------------------------------------------------------------

iii. Model Performance
    The modeling for the Coachella Valley attainment demonstration uses 
the same approach used for the South Coast Air Basin attainment 
demonstration, which was based on an air quality modeling domain that 
covers the entire South Coast Air Basin, the Coachella Valley, and much 
of southern California. Model performance was evaluated in three zones 
in the South Coast Basin: The San Fernando Valley; the eastern San 
Gabriel, Riverside and San Bernardino Valleys; and Los Angeles and 
Orange County. Normalized Gross Bias, Normalized Gross Error, and Peak 
Prediction Accuracy were determined for each area. Although not a 
requirement for determining acceptable model performance, the 
performance statistics were compared to the EPA performance goals 
presented in guidance documents. The performance goals for Normalized 
Gross Error and Peak Prediction Accuracy were met in the eastern San 
Gabriel, Riverside and San Bernardino Valleys. In general, the 
statistic for bias (Normalized Gross Bias) tends to be negative, 
indicating that the model tends to slightly under-predict ozone. Based 
on the analysis, the SCAQMD concludes that model performance is 
acceptable for this application.
b. Modeling Approaches for the Coachella Valley Attainment 
Demonstration
    CAMx simulations were conducted for the base year 2002, and future-
year 2017 baseline and controlled emissions.\42\ The ozone attainment 
demonstration relies on the use of site-specific relative response 
factors (RRFs) being applied to the 2002 weighted design values. The 
RRFs are determined from the future year controlled and the 2002 base 
year simulations. The initial screening for station days to be included 
in the attainment demonstration included the following criteria: (1) 
Having an observed concentration equaling or exceeding 85 parts per 
billion (ppb), and (2) a simulation predicted base year (1997, 2004 or 
2005) concentration over 60 ppb. Additional criteria were added to the 
selection process as the simulations were evaluated. A minimum of five 
episode days are recommended to determine the site specific RRF. The 
TSD for today's action has more information regarding the rationale for 
our proposed approval of the Coachella Valley Ozone Plan modeling.
---------------------------------------------------------------------------

    \42\ Future year controlled emissions were estimated from the 
baseline emissions using the CEPA control factors for the 
simulations, are given in Table V-4-4 of the 2007 South Coast AQMP, 
Appendix V.
---------------------------------------------------------------------------

c. Results of Modeling
    The attainment demonstration included in the 2007 AQMP indicates 
that the Coachella Valley will attain the federal 1997 8-hour ozone 
standards by the proposed attainment date of June 15, 2019. The 2007 
AQMP projects the Coachella Valley air monitoring stations of Palm 
Springs and Indio to have 8-hour ozone design values of 75.9 ppb and 
66.2 ppb respectively in the year 2017.\43\ More recent modeling in the 
2012 AQMP, as well as recent monitoring data, shows attainment by the 
2018 attainment year. See the TSD for this action for more information.
---------------------------------------------------------------------------

    \43\ 2007 AQMP, Appendix V, page V-4-52, Table V-4-17.
---------------------------------------------------------------------------

d. Transport From the South Coast Air Basin
    The South Coast Air Basin's continued progress toward meeting the 
1997 ozone NAAQS is critical to the Coachella Valley's ability to 
attain the 1997 ozone standards. The Coachella Valley is downwind of 
the South Coast Air Basin, which is regulated by the SCAQMD. The 2007 
AQMP states, ``pollutant transport from the South Coast Air Basin to 
the Coachella Valley is the primary cause of its ozone nonattainment 
status.'' The plan cites several studies that confirm the transport 
between the two air basins.\44\
---------------------------------------------------------------------------

    \44\ See footnote 6.
---------------------------------------------------------------------------

3. The EPA's Evaluation and Proposed Conclusions on the Modeling 
Demonstration
    We are proposing to approve an attainment date of June 15, 2019, 
which reflects a 2018 attainment year. This is based on our evaluation 
of the air quality modeling analyses in the 2007 AQMP and our WOE 
analysis. The WOE analysis considered the attainment demonstration from 
the 2012 AQMP and more recent ambient air quality monitoring data that 
were not available at the time SCAQMD performed the attainment 
modeling. The basis for our proposed approval is discussed in more 
detail in the TSD. The modeling shows significant reductions in ozone 
from the base period. The most recent ambient air quality data that we 
have reviewed indicate that the area is on track to attain the 1997 8-
hour ozone standards by 2018.
    Based on the analysis above and in the TSD, the EPA proposes to 
find that the air quality modeling in the 2007 AQMP provides an 
adequate basis for the RACM, RFP and attainment demonstrations in the 
Coachella Valley Ozone Plan, and is consistent with the applicable 
requirements of CAA section 182(c)(2)(a) and 40 CFR 51.1105(a)(1) and 
51.1100(o)(12).

[[Page 75774]]

D. Rate of Progress and Reasonable Further Progress Demonstrations

1. Rate of Progress
a. Requirements
    For areas classified as moderate or above, Section 182(b)(1) 
requires a SIP revision providing for rate of progress (ROP), defined 
as a one time, 15% actual VOC emission reduction during the six years 
following the baseline year 1990, or an average of 3% per year. For 
areas designated serious nonattainment or above, no further action is 
necessary if the area fulfilled its ROP requirement for the 1-hour 
standards (from 1990-1996). As the EPA explained in the 1997 Ozone 
Implementation Rule, 69 FR 23980 (October 27, 2004), for areas that did 
not meet the 15% ROP reduction for the 1-hour ozone standards, a state 
may notify the EPA that it wishes to rely on a previously submitted SIP 
(for the 1-hour ozone standards), or it may elect to submit a new or 
revised SIP (for the 1997 ozone standards) addressing the 15% ROP 
reduction. The ROP demonstration requirement is a continuing applicable 
requirement for the Coachella Valley under the EPA's anti-backsliding 
rules that apply once a standard has been revoked. See 40 CFR 
51.1105(a)(1) and 51.1100(o)(4).
    The CAA outlines and EPA guidance details the method for 
calculating the requirements for the 1990-1996 period. Section 
182(b)(1) requires that reductions: (1) Be in addition to those needed 
to offset any growth in emissions between the base year and the 
milestone year; (2) exclude emission reductions from four prescribed 
federal programs (i.e., the federal motor vehicle control program, the 
federal Reid vapor pressure (RVP) requirements, any RACT corrections 
previously specified by the EPA, and any inspection and maintenance (I/
M) program corrections necessary to meet the basic I/M level); and (3) 
be calculated from an ``adjusted'' baseline relative to the year for 
which the reduction is applicable.
    The adjusted base year inventory excludes the emission reductions 
from fleet turnover between 1990 and 1996 and from federal RVP 
regulations promulgated by November 15, 1990, or required under section 
211(h) of the Act. The net effect of these adjustments is that states 
are not able to take credit for emissions reductions that would result 
from fleet turnover of current federal standard cars and trucks, or 
from already existing federal fuel regulations. However, the SIP can 
take full credit for the benefits of any new (i.e., post-1990) vehicle 
emissions standards, as well as any other new federal or state motor 
vehicle or fuel program that will be implemented in the nonattainment 
area, including Tier 1 exhaust standards, new evaporative emissions 
standards, reformulated gasoline, enhanced I/M, California low 
emissions vehicle program, transportation control measures, etc.
    While a SIP revision for attainment of the 1-hour ozone standards 
was submitted for the Southeast Desert area (i.e., the Coachella Valley 
and Western Mojave Desert areas), we have not approved the ROP plan for 
the reduction of VOCs. We provided notice that the Southeast Desert has 
attained the 1-hour standards on April 15, 2015. See 80 FR 20166 (April 
15, 2015). Per 40 CFR 51.1118, the RFP requirement (including the 15% 
ROP requirement for VOCs) no longer applies to the 1-hour ozone 
standards for the Southeast Desert area. Although the ROP provision is 
a one-time requirement, it remains in effect for the 1997 8-hour ozone 
standards. Therefore, the Coachella Valley SIP must demonstrate a 15% 
ROP for VOC reductions by 2008, from the 2002 baseline.
b. ROP Demonstration in the State Submittal
    The 2014 SIP Update incorporates the ROP demonstration as an 
element of the RFP demonstration. We note that this approach is valid, 
but different from the organization of this notice, where we first, and 
separately, assess the ROP demonstration and then assess the RFP 
demonstration. See section IV.D.2 for the RFP assessment. VOC emissions 
from the RFP tables for the Coachella Valley (see Table C-1 in the 2014 
SIP Update), were used to create Table 5 below. The revised 15% ROP VOC 
demonstration uses a 2002 average summer weekday emissions inventory as 
the base year inventory and addresses 2002-2008. Based on the progress 
of the VOC emissions reductions from 2002 to 2008, the State concluded 
the Coachella Valley met the ROP requirement for the 15% VOC reduction.

  Table 5--15% Rate-of-Progress Demonstration for VOC Emissions in the
                           Coachella Valley a
------------------------------------------------------------------------
                                                             Coachella
                      VOC Emissions                           (tpsd)
------------------------------------------------------------------------
1. 2002 baseline inventory..............................            22.7
2. 2008 remaining emissions.............................            17.6
3. 2008 goal (remaining emissions after 15% ROP                     19.3
 Reduction required from 2002 baseline).................
4. ROP reduction achieved by 2008 (Compare Line 2 to                 Yes
 Line 7)................................................
------------------------------------------------------------------------
\a\ Source: 2014 SIP Update, Table C-1.

2. Reasonable Further Progress
a. Requirements
    CAA sections 172(c)(2) and 182(b)(1) require plans for 
nonattainment areas to provide for RFP. RFP is defined in section 
171(1) as ``such annual incremental reductions in emissions of the 
relevant air pollutant as are required by this part or may reasonably 
be required by the Administrator for the purpose of ensuring attainment 
of the applicable [NAAQS] by the applicable date.'' CAA section 
182(c)(2)(B) requires ozone nonattainment areas classified as serious 
or higher to submit no later than 3 years after designation for the 8-
hour ozone standards an RFP SIP providing for an average of 3% per year 
of VOC and/or NOX emissions reductions for (1) the 6-year 
period immediately following the baseline year; and (2) all remaining 
3-year periods after the first 6-year period out to the area's 
attainment date. The RFP requirement is a continuing applicable 
requirement for the Coachella Valley under the EPA's anti-backsliding 
rules that apply once a standard has been revoked. See 40 CFR 
51.1105(a)(1) and 51.1100(o)(4).
    CAA section 182(c)(2)(C) allows for the substitution of 
NOX emission reductions in place of VOC reductions to meet 
the RFP requirements. According to the EPA's NOX 
Substitution Guidance,\45\ the substitution of NOX 
reductions for VOC reductions must be done on a percentage basis, 
rather than a straight ton-for-ton exchange. There are two steps for 
substituting NOX for VOC. First, an equivalency 
demonstration

[[Page 75775]]

must show that the cumulative RFP emission reductions are consistent 
with the NOX and VOC emission reductions determined in the 
ozone attainment modeling demonstration. Second, specified reductions 
in NOX and VOC emissions should be accomplished in the 
interim period between the 2002 base year and the attainment date, 
consistent with the continuous RFP emission reduction requirement.
---------------------------------------------------------------------------

    \45\ EPA Office of Air Quality Planning and Standards, 
``NOX Substitution Guidance,'' December 1993.
---------------------------------------------------------------------------

b. RFP Demonstration in the State Submittal
    The 2014 SIP Update contains emissions estimates for the baseline, 
milestone and attainment years, and additional discussion of the RFP 
demonstration. See page 5 and Table C-1 in Appendix C. Table 6 below 
shows data from the RFP demonstration, with additional rows based on 
information provided by CARB. The 2014 SIP Update uses NOX 
substitution beginning in milestone year 2014 to meet VOC emission 
targets. For the Coachella Valley, the State concluded that RFP 
demonstration meets the applicable requirements for each milestone year 
as well as the attainment year.

                                            Table 6--Calculation of RFP Demonstrations for Coachella Valley a
--------------------------------------------------------------------------------------------------------------------------------------------------------
             VOC Emission calculations (tpd)                   2002            2008            2011            2014            2017            2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
1. 2002 Baseline VOC....................................            22.7             n/a             n/a             n/a             n/a             n/a
2. Non-creditable CA MVCP/RVP adjustments...............             n/a             1.1             1.5             1.8             1.9             2.0
3. RACT Corrections.....................................               0               0               0               0               0               0
4. Adjusted 2002 baseline VOC inventory (2002 Baseline               n/a            21.6            21.2            20.9            20.8            20.7
 VOC-Line 2-Line 3).....................................
5. RFP Commitment for VOC reductions from new measures..             n/a               0               0               0               0               0
6. Future Year VOC with existing and proposed measures..             n/a            17.6            15.0            15.8            15.8            15.9
7. Required VOC % change since previous milestone year,              n/a             15%              9%              9%              9%              3%
 relative to 2002.......................................
8. Required VOC reduction from 2002 adjusted baseline...             n/a             15%             24%             33%             42%             45%
9. Target VOC Levels \b\................................             n/a            18.4            16.4            14.7            13.3            12.8
10. Apparent VOC Shortfall (Line 6-Line 9)..............             n/a            -0.8            -1.3             1.2             2.6             3.2
11. Apparent % VOC shortfall (Line 10 / Line 4..........             n/a           -3.7%           -6.4%            5.6%           12.7%           15.3%
12. VOC shortfall previously provided by NOX                         n/a               0               0               0            5.6%           12.7%
 substitution % (Line 13 of prior milestone year, or 0
 if negative)...........................................
13. Actual VOC shortfall (Line 11-Line 12)..............             n/a           -3.7%           -6.4%            5.6%            7.1%            2.5%
--------------------------------------------------------------------------------------------------------------------------------------------------------
             NOX Emission calculations (tpd)                   2002            2008            2011            2014            2017            2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
15. Baseline NOX inventory..............................            43.3            31.0            23.8        \c\ 22.0        \c\ 18.9        \c\ 17.8
16. Non-creditable CA MVCP/RVP adjustments..............             n/a             1.6             2.0             2.2             2.3             2.3
17. Adjusted 2002 baseline NOX inventory (Line 15 2002               n/a            41.7            41.3            41.1            41.0            40.9
 baseline-Line 16)......................................
18. RFP commitment for NOX reductions from new measures.             n/a               0               0               0               0               0
19. Calculated NOX creditable reductions since 2002                  n/a            41.7            41.3            41.1            41.0            40.9
 (Line 17-Line 18)......................................
20. Change in NOX since 2002 (Line 19-Line 15)..........             n/a            10.6            17.5            19.1            22.1            23.1
21. Calculated % NOX reductions since 2002 (Line 20 /                n/a           25.6%           42.3%           46.5%           53.9%           56.5%
 Line 19)...............................................
22. NOX previously used for VOC shortfall by NOX                     n/a               0               0               0            5.6%           12.7%
 substitution % (from Line 12)..........................
23. NOX substitution needed for VOC shortfall % (Same as             n/a            0.0%            0.0%            5.6%            7.1%            2.5%
 Line 13, or 0 if Line 9 < 0)...........................
24. Forecasted % NOX reduction surplus (Line 21-Line 22-             n/a           25.6%           42.3%           40.9%           41.2%           41.3%
 Line 23)...............................................
25. RFP achieved?.......................................             n/a             Yes             Yes             Yes             Yes             Yes
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Source: 2014 SIP Update, Table C-1.
\b\ Target VOC levels for 2008 = (1-Line 8) x (Line 4). In subsequent years, Target VOC = [(prior year Line 9 + prior year Line 2-current year line 2) x
  (1-current year line 7)].
\c\ Estimated emissions include an additional 1 tpd safety margin for transportation conformity budget.
Note: Because of rounding conventions, values in table may not reflect the exact calculated quantity from the underlying numbers.


[[Page 75776]]

3. Proposed Action on the ROP and RFP Demonstrations
    Based on our review of the ROP calculations in the 2014 SIP Update, 
summarized in Table 5 above, we conclude that the state has 
demonstrated that sufficient emission reductions have been achieved to 
meet the ROP requirements in 2008. And as shown in Table 6, the South 
Coast 2007 8-hour Ozone SIP provides for RFP in each milestone year, 
consistent with applicable CAA requirements and EPA guidance. We 
therefore propose to approve the ROP and RFP demonstrations under 
sections 182(b)(1) and 182(c)(2) of the CAA and 40 CFR 51.1105(a)(1) 
and 51.1100(o)(4).

E. Motor Vehicle Emissions Budgets for Transportation Conformity

1. Requirements for Motor Vehicle Emissions Budgets
    CAA section 176(c) requires federal actions in nonattainment and 
maintenance areas to conform to the goals of SIPs. This 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 that involve Federal Highway Administration (FHWA) or 
Federal Transit Administration (FTA) funding or approval are subject to 
the EPA's transportation conformity rule, which is codified in 40 CFR 
part 93, subpart A. Under this rule, metropolitan planning 
organizations (MPOs) in nonattainment and maintenance areas coordinate 
with state and local air quality and transportation agencies, the EPA, 
FHWA, and FTA to demonstrate that an area's RTP and transportation 
improvement programs (TIP) 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 the SIP. An attainment, RFP, or maintenance SIP 
establishes MVEBs for the attainment year, each required RFP year or 
last year of the maintenance plan, as appropriate. MVEBs are generally 
established for specific years and specific pollutants or precursors. 
Ozone attainment and RFP plans establish MVEBs for NOX and 
VOC. See 40 CFR 93.102(b)(2)(i).
    Before an MPO may use MVEBs in a submitted SIP, the EPA must first 
either determine that the MVEBs are adequate or approve the MVEBs. In 
order for us to find the MVEBs adequate and approvable, the submittal 
must meet the conformity adequacy requirements of 40 CFR 93.118(e)(4) 
and (5) and be approvable under all pertinent SIP requirements. To meet 
these requirements, the MVEBs must be consistent with the approvable 
attainment and RFP demonstrations and reflect all of the motor vehicle 
control measures contained in the attainment and RFP demonstrations. 
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 Web site at: https://www.epa.gov/state-and-local-transportation.
    The EPA's process for determining adequacy of a MVEB consists of 
four basic steps: (1) Providing public notification of a SIP 
submission; (2) providing the public the opportunity to comment on the 
MVEB during a public comment period and responding to any comments that 
are submitted; (3) reviewing the submitted SIP to determine if it meets 
the adequacy criteria; and, (4) making a finding of adequacy or 
inadequacy. See 40 CFR 93.118.
2. MVEBs in the Coachella Valley Ozone Plan
    The 2007 AQMP did not propose budgets for transportation conformity 
for the Coachella Valley. CARB submitted the 2008 Early Progress Plan, 
an amendment to the SIP, to establish MVEBs for many areas of 
California including the Coachella Valley.\46\ Using EMFAC2007 (the 
2007 version of the EMissions FACtor model), CARB set the 2012 MVEBs at 
7 tpd for VOCs and 26 tpd for NOX. We found the MVEB in the 
2008 Early Progress Plan for the Coachella Valley to be adequate for 
transportation conformity purposes.\47\ See 73 FR 25694 (April 16, 
2008).
---------------------------------------------------------------------------

    \46\ Early Progress Plans Demonstrating Progress Toward 
Attaining the 8-hour National Air Quality Standards for Ozone and 
Setting Transportation Conformity Budgets for Ventura County, 
Antelope Valley--Western Mojave Desert, Coachella Valley, Eastern 
Kern County, Imperial County, Revised: February 27, 2008, Release 
Date: February 27, 2008.
    \47\ Letter dated April 16, 2008 from Deborah Jordan to James 
Goldstene, California Air Resources Board, RE: Adequacy Status of 
Coachella Valley 8-hour Ozone Early Progress Plan Motor Vehicle 
Emissions Budgets.
---------------------------------------------------------------------------

    The 2014 SIP Update includes updated MVEBs.\48\ As noted in Section 
IV.B.2 of this notice, the MVEBs were estimated using EMFAC2011, and 
the latest planning assumptions from SCAG, including Amendment No. 1 to 
the 2012-2035 Regional Transportation Plan and Amendment No. 13-4 to 
the Federal Transportation Improvement Program.\49\ The emissions 
estimate also includes off-model adjustments to EMFAC2011 to account 
for the Advanced Clean Car regulations adopted by CARB and included in 
the SIP. See 81 FR 39424 (June 16, 2016).
---------------------------------------------------------------------------

    \48\ 2014 SIP Update, Table D-1.
    \49\ See http://rtpscs.scag.ca.gov/Pages/Amendment-1.aspx.
---------------------------------------------------------------------------

    The MVEBs are the projected on-road mobile source VOC and 
NOX emissions in the Coachella Valley for baseline, 
milestone and attainment years. These budgets, shown in Table 7, 
include a 1 tpd safety margin, as allowed by the conformity rule. See 
40 CFR 93.124(a).

                                    Table 7--Coachella Valley Motor Vehicle Emissions Budgets in the 2014 SIP Update
                                                            [tpd, average summer weekday] \a\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                NOX                                             VOC
                                                         -----------------------------------------------------------------------------------------------
                                                               2014            2017            2018            2014            2017            2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
On-Road Inventory.......................................           14.79           11.39           10.74            3.72            3.07            2.93
Safety Margin...........................................               1               1               1               1               1               1
MVEBs \b\...............................................              16              13              12               5               5               4
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Source: 2014 SIP Update, Appendix D, Table D-1.
\b\ Rounded up to the nearest ton.


[[Page 75777]]

3. Proposed Action on the Budgets
    As part of our review of the budgets' approvability, we have 
evaluated the revised budgets using our adequacy criteria in 40 CFR 
93.318(e)(4) and (5). We found that the 2017 and 2018 budgets meet each 
adequacy criterion. We have completed our review of the 2014 SIP Update 
and are proposing to approve the SIP's attainment and RFP 
demonstrations. We have also reviewed the proposed budgets submitted 
with the 2014 SIP Update and have found that the 2017 and 2018 budgets 
are consistent with the attainment and RFP demonstrations, were based 
on control measures that have already been adopted and implemented, and 
meet all other applicable statutory and regulatory requirements 
including the adequacy criteria in 40 CFR 93.118(e)(4) and (5). 
Therefore, we are proposing to approve the 2017 and 2018 budgets as 
shown in Table 7.\50\ Once these budgets are found adequate or are 
approved, the budgets for the 2008 early progress plan for 2012 will no 
longer be used in transportation conformity determinations. If 
finalized as proposed, the U.S. Department of Transportation and SCAG 
(the metropolitan planning organization for the area) would be required 
to use the new budgets in transportation conformity determinations.
---------------------------------------------------------------------------

    \50\ Although the 2014 SIP Update contained MVEBs for 2014, 
2017, and 2018, MVEBs for 2014 are no longer relevant for conformity 
analyses since that year has passed.
---------------------------------------------------------------------------

F. Vehicle Miles Travelled Emissions Offset Demonstration

1. Requirements for a VMT Emissions Offset Demonstration
    CAA section 182(d)(1)(A) requires a state with areas classified as 
``Severe'' or ``Extreme'' to ``submit a revision that identifies and 
adopts specific enforceable transportation control strategies (TCSs) 
and TCMs to offset any growth in emissions from growth in VMT or 
numbers of vehicle trips in such area.'' Herein, we refer to the SIP 
requirement as the ``VMT emissions offset requirement,'' and the SIP 
revision intended to demonstrate compliance with the VMT emissions 
offset requirement as the ``VMT emissions offset demonstration.'' The 
VMT emissions offset requirement is a continuing applicable requirement 
for the Coachella Valley under the EPA's anti-backsliding rules that 
apply once a standard has been revoked. See 40 CFR 51.1105(a)(1) and 
51.1100(o)(10).
    CAA section 182(d)(1)(A) also includes two additional elements 
requiring that the SIP include: (1) TCSs and TCMs as necessary to 
provide (along with other measures) the reductions needed to meet the 
applicable RFP requirement, and (2) include strategies and measures to 
the extent needed to demonstrate attainment. As noted above, the first 
element of CAA section 182(d)(1)(A) requires that areas classified as 
``Severe'' or ``Extreme'' submit a SIP revision that identifies and 
adopts TCSs and TCMs sufficient to offset any growth in emissions from 
growth in VMT or the number of vehicle trips.
    In response to the Court's decision in Association of Irritated 
Residents v. EPA,\51\ we issued a memorandum titled Guidance on 
Implementing Clean Air Act Section 182(d)(1)(A): Transportation Control 
Measures and Transportation Control Strategies to Offset Growth in 
Emissions Due to Growth in Vehicle Miles Travelled (August 2012 
Guidance).\52\ The August 2012 Guidance discusses the meaning of the 
terms TCSs and TCMs, and recommends that both TCSs and TCMs be included 
in the calculations made for the purpose of determining the degree to 
which any hypothetical growth in emissions due to growth in VMT should 
be offset. Generally, TCS is a broad term that encompasses many types 
of controls including, for example, motor vehicle emission limitations, 
I/M programs, alternative fuel programs, other technology-based 
measures, and TCMs, that would fit within the regulatory definition of 
``control strategy.'' See, e.g., 40 CFR 51.100(n). TCM is defined at 40 
CFR 51.100(r) to mean ``any measure that is directed toward reducing 
emissions of air pollutants from transportation sources,'' including, 
but not limited to, measures listed in CAA section 108(f), and 
generally refers to programs intended to reduce the VMT, the number of 
vehicle trips, or traffic congestion, such as programs for improved 
public transit, designation of certain lanes for passenger buses and 
high-occupancy vehicles, trip reduction ordinances, and similar 
measures.
---------------------------------------------------------------------------

    \51\ 632 F.3d. 584, at 596-597 (9th Cir. 2011), reprinted as 
amended on January 27, 2012, 686 F.3d 668, further amended February 
13, 2012 (ruling additional TCMs are required whenever vehicle 
emissions are projected to be higher than they would have been had 
VMT not increased, even when aggregate vehicle emissions are 
actually decreasing).
    \52\ Memorandum dated August 30 2012 from Karl Simon, Director, 
Transportation and Climate Division, Office of Transportation and 
Air Quality, to Carl Edlund, Director, Multimedia Planning and 
Permitting Division, EPA Region 6, and Deborah Jordan, Director, Air 
Division, EPA Region 9.
---------------------------------------------------------------------------

    The August 2012 guidance also explains how states may demonstrate 
that the VMT emissions offset requirement is satisfied in conformance 
with the Court's ruling. It recommends states estimate emissions for 
the nonattainment area's base year and the attainment year. One 
emission inventory is developed for the base year, and three different 
emissions inventory scenarios are developed for the attainment year. 
Two of these scenarios would represent hypothetical emissions scenarios 
that would provide the basis to identify the ``growth in emissions'' 
due solely to the growth in VMT, and one that would represent projected 
actual motor vehicle emissions after fully accounting for projected VMT 
growth and offsetting emissions reductions obtained by all creditable 
TCSs and TCMs. The August 2012 guidance contains specific details on 
how states might conduct the calculations.
    The base year on-road VOC emissions inventory should be based on 
VMT in that year and it should reflect all enforceable TCSs and TCMs in 
place in the base year. This would include vehicle emissions standards, 
state and local control programs such as I/M programs or fuel rules, 
and any additional implemented TCSs and TCMs that were already required 
by or credited in the SIP as of the base year.
    The first of the emissions calculations for the attainment year 
would be based on the projected VMT and trips for that year, and assume 
that no new TCSs or TCMs beyond those already credited in the base year 
inventory have been put in place since the base year. This calculation 
demonstrates how emissions would hypothetically change if no new TCSs 
or TCMs were implemented, and VMT and trips were allowed to grow at the 
projected rate from the base year. This estimate would show the 
potential for an increase in emissions due solely to growth in VMT and 
trips, representing a no-action scenario. Emissions in the attainment 
year in this scenario may be lower than those in the base year due to 
fleet turnover to lower-emitting vehicles. Emissions may also be higher 
if VMT and/or vehicle trips are projected to sufficiently increase in 
the attainment year.
    The second of the attainment year emissions calculations would also 
assume that no new TCSs or TCMs beyond those already credited have been 
put in place since the base year, but would also assume no growth in 
VMT and trips between the base year and attainment year. Like the no-
action attainment year estimate described above, emissions in the 
attainment year may be lower than those in the base year due to fleet 
turnover, but the emissions would not be influenced by any growth

[[Page 75778]]

in VMT or trips. This emissions estimate, the VMT offset ceiling 
scenario, would reflect the maximum attainment emissions that should be 
allowed to occur under the statute as interpreted by the Court because 
it shows what would happen under a scenario in which no offsetting TCSs 
or TCMs have yet been put in place and VMT and trips are held constant 
during the period from the area's base year to its attainment year.
    These two hypothetical status quo estimates are necessary steps in 
identifying target emission levels. These levels determine whether 
further TCMs or TCSs beyond those that have been adopted and 
implemented are needed to fully offset any increase in emissions due 
solely to VMT and vehicle trips identified in the no action scenario.
    The third calculation incorporates the emissions that are actually 
expected to occur in the area's attainment year after taking into 
account reductions from all enforceable TCSs and TCMs that in reality 
were put in place after the baseline year. This estimate would be based 
on the VMT and trip levels expected to occur in the attainment year 
(i.e., the VMT and trip levels from the first estimate) and all of the 
TCSs and TCMs expected to be in place and for which the SIP will take 
credit in the area's attainment year, including any TCMs and TCSs put 
in place since the base year. This represents the projected actual 
(attainment year) scenario. If this emissions estimate is less than or 
equal to the emissions ceiling that was established in the second of 
the attainment year calculations, the TCSs or TCMs for the attainment 
year would be sufficient to fully offset the identified hypothetical 
growth in emissions.
    If the projected actual attainment year emissions are greater than 
the VMT offset ceiling established in the second of the attainment year 
emissions calculations even after accounting for post-baseline year 
TCSs and TCMs, the state would need to adopt and implement additional 
TCSs or TCMs. To meet the VMT offset requirement of section 
182(d)(1)(A) as interpreted by the Court, the additional TCSs or TCMs 
would need to offset the growth in emissions and bring the actual 
emissions down to at least the same level as the attainment year VMT 
offset ceiling estimate.
2. The Coachella Valley VMT Emissions Offset Demonstration
    The Coachella Valley VMT Offset demonstration is contained in 
Appendix E of the 2014 SIP Update. The State used EMFAC2011,\53\ an 
EPA-approved motor vehicle emissions model for California, to estimate 
on-road emissions. The model calculates emissions from two combustion 
processes (i.e., running exhaust and start exhaust) and four 
evaporative processes (i.e., hot soak, running losses, diurnal losses, 
and resting losses). It combines trip-based VMT data from the regional 
transportation planning agencies (i.e., SCAG), starts data based on 
household travel surveys, and vehicle population data from the 
California Department of Motor Vehicles. These sets of data are 
combined with corresponding emission rates to calculate emissions.
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    \53\ More recently, the EPA approved EMFAC2014 as the model for 
estimating on-road emissions; however, that approval allowed the 
continued use of EMFAC2011 until December 14, 2017. See 80 FR 77337.
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    Emissions from running exhaust, start exhaust, hot soak, and 
running losses are a function of how much a vehicle is driven. As such, 
emissions from these processes are directly related to VMT and vehicle 
trips, and the State included emissions from them in the calculations 
that provide the basis for the revised Coachella Valley VMT emissions 
offset demonstration. The 2014 SIP Update (see page E-3) did not 
include emissions from resting loss and diurnal loss processes in the 
analysis because such emissions are related to vehicle population, 
rather than VMT or vehicle trips, and thus are not part of ``any growth 
in emissions from growth in vehicle miles traveled or numbers of 
vehicle trips in such area'' (emphasis added) under CAA section 
182(d)(1)(A).
    The VMT emissions offset demonstration also includes the previously 
described three different attainment year scenarios (i.e., no action, 
VMT offset ceiling, and projected actual) for 2018. The State's 
selection of 2018 is appropriate given that the 2014 SIP Update 
demonstrates attainment by the applicable attainment date of June 15, 
2019 based on the 2018 controlled emissions inventory. Table 8 
summarizes the emissions estimate for the base year and the three 
scenarios discussed in Section IV.G.1.b.

                            Table 8--VMT Emissions Offset Inventory Scenarios and Results for 1997 8-Hour Ozone Standards \a\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        VMT                           Starts                 Controls      VOC Emissions
                        Scenario                         -----------------------------------------------------------------------------------------------
                                                               Year       1000 miles/day       Year          1000/day          Year             tpd
--------------------------------------------------------------------------------------------------------------------------------------------------------
Base Year...............................................            2002          10,293            2002           1,248            2002               8
No Action...............................................            2018          14,329            2018          10,640            2002               4
VMT Offset Ceiling......................................            2002          14,329            2002           7,935            2002               3
Projected Actual........................................            2018          64,709            2018          10,640            2018               2
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ Source: 2014 SIP Update, Appendix E.

    For the base year scenario, CARB ran the EMFAC2011 model for the 
2002 base year using VMT and starts data corresponding to those years. 
As shown in Table 8, the 2014 SIP Update estimates Coachella Valley VOC 
emissions to be 8 tpd in 2002.
    For the no-action scenario, the State first identified the on-road 
motor vehicle control programs (i.e., TCSs or TCMs) put in place since 
the base year and incorporated into EMFAC2011. Then, CARB ran EMFAC2011 
with the VMT and starts data corresponding to the applicable attainment 
year (i.e., 2018 for the 1997 8-hour ozone standards) without the 
emissions reductions from the on-road motor vehicle control programs 
put in place after the base year. Thus, the no action scenario reflects 
the hypothetical VOC

[[Page 75779]]

emissions that would occur in the attainment year in the nonattainment 
area if CARB had not put in place any additional TCSs or TCMs after 
2002. As shown in Table 8, CARB estimates no action VOC emissions for 
Coachella Valley to be 4 tpd in 2018.
    For the VMT offset ceiling scenario, the State ran the EMFAC2011 
model for the attainment year but with VMT and starts data 
corresponding to base year values. Like the no- action scenario, the 
EMFAC2011 model was adjusted to reflect VOC emissions levels in the 
attainment year without the benefits of the on-road motor vehicle 
control programs implemented after the base year. Thus, the VMT offset 
ceiling scenario reflects hypothetical VOC emissions if the State had 
not put in place any TCSs or TCMs after the base year and if there had 
been no growth in VMT or vehicle trips between the base year and the 
attainment year. As shown in Table 8, CARB estimates VMT offset ceiling 
VOC emissions to be 3 tpd in 2018.
    The hypothetical growth in emissions due to growth in VMT and trips 
can be determined from the difference between the VOC emissions 
estimates under the no action scenario and the corresponding estimate 
for the VMT offset ceiling scenario. Based on the values in Table 9, 
the hypothetical growth in emissions due to growth in VMT and trips in 
the Coachella Valley would have been 1 tpd (i.e., 4 tpd minus 3 tpd) 
for the purposes of the revised VMT emissions offset demonstration for 
the 8-hour ozone standards. This hypothetical difference establishes 
the level of emissions caused by growth in VMT that need to be offset 
by the combination of post-baseline year TCMs and TCSs and any 
necessary additional TCMs and TCSs.
    For the projected actual scenario calculation, the State included 
the emissions benefits from TCSs and TCMs \54\ put in place since the 
base year. The most significant State on-road and fuels measures 
providing reductions during the 2002 to 2018 timeframe and relied upon 
for the VMT emissions offset demonstration include Low Emission 
Vehicles II and Zero Emissions Vehicle standards, California 
Reformulated Gasoline Phase 3, and Cleaner In-Use Heavy-Duty Trucks. 
Some of these measures were adopted prior to 2002, but all or part of 
the implementation occurred after 2002.\55\ State measures adopted 
since 2007, as part of the 2009 State Strategy Status Report, and the 
associated reductions are also described in the IV.B.2.d of this 
notice. The 2014 SIP Update provides a list of CARB rules for mobile 
sources, since 1990 through the plan's development, in Table E-4.
---------------------------------------------------------------------------

    \54\ The 2014 SIP Update states, ``there are no TCMs in the SIP 
for the Coachella Valley and Western Mojave Desert because upwind 
emissions from the South Coast Air Basin and Ventura County largely 
influence air quality in both the Coachella Valley and Western 
Mojave Desert. TCMs have been implemented by the SCAG in those 
upwind areas.'' (Appendix E, p. E-3)
    \55\ Appendix E of the SIP Update contains a full list of the 
TCSs adopted by the state since 1990.
---------------------------------------------------------------------------

3. The EPA's Evaluation of the VMT Emissions Offset Demonstration
    The Coachella Valley VMT emissions offset demonstrations 
established 2002 as the base year for the purpose of the VMT emissions 
offset demonstration for the 1997 8-hour ozone standards. The base year 
for VMT emissions offset demonstration purposes should generally be the 
same base year used for nonattainment planning purposes. In today's 
action, the EPA is proposing to approve the 2002 base year inventory 
for Coachella Valley for the purposes of the 1997 8-hour ozone 
standards. Thus, CARB's selection of 2002 as the base year for the VMT 
emissions offset demonstration for the 1997 8-hour ozone standards is 
appropriate.
    As shown in Table 8, the results from these calculations establish 
projected actual attainment-year VOC emissions of 2 tpd in the 
Coachella Valley for the 1997 8-hour standards demonstration. By 
comparing these values against the corresponding VMT offset ceiling 
value, we can determine whether additional TCMs or TCSs would need to 
be adopted and implemented to offset any increase in emissions due 
solely to VMT and trips. Because the projected actual emissions are 
less than the corresponding VMT offset ceiling emissions, the State's 
demonstration shows compliance with the VMT emissions offset 
requirement. This means that the adopted TCSs and TCMs are sufficient 
to offset the growth in emissions from the growth in VMT and vehicle 
trips in Coachella Valley for the 1997 8-hour ozone standards. Taking 
into account the creditable post-baseline year TCMs and TCSs, the 
demonstration shows Coachella Valley offset hypothetical growth in 
emissions due to growth in VMT by 2 tpd of VOC, which is more than the 
required 1 tpd offset.\56\
---------------------------------------------------------------------------

    \56\ The offsetting VOC emissions reductions from the TCSs and 
TCMs put in place after the base year can be determined by 
subtracting the ``projected actual'' emissions estimates from the 
``no action'' emissions estimates in table 8. For the purposes of 
the 8-hour ozone demonstration, the offsetting emissions reductions, 
2 tpd (4 tpd minus 2 tpd), exceed the growth in emissions from 
growth in VMT and vehicle trips (1 tpd).
---------------------------------------------------------------------------

    Based on our review of the 2014 SIP Update, we find the State's 
analysis to be acceptable and agree that the State has adopted 
sufficient TCSs and TCMs to offset the growth in emissions from growth 
in VMT and vehicle trips in the Coachella Valley for the purposes of 
the 1997 8-hour ozone standards. Thus we find that the VMT emissions 
offset demonstration for this area complies with the VMT emissions 
offset requirement in CAA section 182(d)(1)(A), consistent with 40 CFR 
40 CFR 51.1105(a)(1) and 51.1100(o)(10). Therefore, we propose approval 
of the revised VMT emissions offset demonstration for the 1997 8-hour 
ozone standards, contained in the 2014 SIP Update, as a revision to the 
California SIP.

V. The EPA's Proposed Actions

A. The EPA's Proposed Approvals

    For the reasons discussed above, the EPA is proposing to approve 
the Coachella Valley Ozone Plan for the 1997 8-hour ozone NAAQS. The 
Plan includes the relevant portions of the following documents: (1) 
``Final 2007 Air Quality Management Plan,'' South Coast Air Quality 
Management District, June 2007; (2) CARB's ``2007 State Strategy for 
the California State Implementation Plan,'' Release Date April 26, 2007 
and Appendices A-G, Release Date May 7, 2007; (3) CARB's ``Status 
Report on the State Strategy for California's 2007 State Implementation 
Plan (SIP) and Proposed Revision to the SIP Reflecting Implementation 
of the 2007 State Strategy,'' Release Date: March 24, 2009; (4) CARB's 
``Progress Report on Implementation of PM2.5 State 
Implementation Plans (SIP) for the South Coast and San Joaquin Valley 
Air Basins and Proposed SIP Revisions,'' Release Date March 29, 2011; 
and (5) CARB's ``Staff Report, Proposed Updates to the 1997 8-Hour 
Ozone Standard, State Implementation Plans; Coachella Valley and 
Western Mojave Desert,'' Release Date: September 22, 2014.
    The EPA is proposing to approve the following elements of the 
Coachella Valley Ozone Plan under CAA section 110(k)(3):
    1. The RACM demonstration as meeting the requirements of CAA 
section 172(c)(1) and 40 CFR 51.1105(a)(1) and 51.1100(o)(17);
    2. The ROP and RFP demonstrations as meeting the requirements of 
CAA sections 172(c)(2) and 182(c)(2)(B) and 40 CFR 51.1105(a)(1) and 
51.1100(o)(4);
    3. The attainment demonstration as meeting the requirements of CAA 
section 182(c)(2)(A) and 40 CFR 51.1105(a)(1) and 51.1100(o)(12);

[[Page 75780]]

    4. The demonstration that the SIP provides for transportation 
control strategies and measures sufficient to offset any growth in 
emissions from growth in VMT or the number of vehicle trips, and to 
provide for RFP and attainment, as meeting the requirements of CAA 
section 182(d)(1)(A) and 40 CFR 51.1105(a)(1) and 51.1100(o)(10).
    We are also approving the revised MVEBs for RFP for 2017 and for 
the attainment year of 2018, because they are derived from approvable 
RFP and attainment demonstrations and meet the requirements of CAA 
sections 176(c) and 40 CFR part 93, subpart A.

B. Request for Public Comments

    The EPA is soliciting public comments on the issues discussed in 
this document or on other relevant matters. We will accept comments 
from the public on this proposal for the next 30 days. We will consider 
these comments before taking final action.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA because this action does not impose additional requirements 
beyond those imposed by state law.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not impose any requirements on small entities beyond those 
imposed by state law.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. This action does not impose additional requirements 
beyond those imposed by state law. Accordingly, no additional costs to 
State, local, or tribal governments, or to the private sector, will 
result from this action.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Coordination With Indian Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175, because 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, and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law. Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not impose additional 
requirements beyond those imposed by state law.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    Section 12(d) of the NTTAA directs the EPA to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. The EPA 
believes that this action is not subject to the requirements of section 
12(d) of the NTTAA because application of those requirements would be 
inconsistent with the CAA.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Population

    The EPA lacks the discretionary authority to address environmental 
justice in this rulemaking.

List of Subjects in 40 CFR Part 52

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

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

    Dated: October 19, 2016.
Alexis Strauss,
Acting Regional Administrator, EPA Region IX.
[FR Doc. 2016-26376 Filed 10-31-16; 8:45 am]
BILLING CODE 6560-50-P


