[Federal Register: April 30, 2004 (Volume 69, Number 84)]
[Rules and Regulations]               
[Page 23857-23951]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap04-17]                         


[[Page 23857]]

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Part II





Environmental Protection Agency





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40 CFR Part 81

40 CFR Parts 50, 51, and 81



8-Hour Ozone National Ambient Air Quality Standards; Final Rules


[[Page 23858]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 81

[OAR-2003-0083; FRL-7651-8]
RIN 2060-

 
Air Quality Designations and Classifications for the 8-Hour Ozone 
National Ambient Air Quality Standards; Early Action Compact Areas With 
Deferred Effective Dates

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This rule sets forth the air quality designations and 
classifications for every area in the United States, including Indian 
country, for the 8-hour ozone national ambient air quality standard. We 
are issuing this rule so that citizens will know whether the air where 
they live and work is healthful or unhealthful and to establish the 
boundaries and classifications for areas designated as nonattainment. 
Children are at risk when exposed to ozone pollution because their 
lungs are still developing, people with existing respiratory disease 
are at risk, and even healthy people who are active outdoors can 
experience difficulty breathing when exposed to ozone pollution. In 
this document, EPA is also promulgating the first deferral of the 
effective date, to September 30, 2005, of the nonattainment designation 
for Early Action Compact areas that have met all milestones through 
March 31, 2004. Finally, we are inviting States to submit by July 15, 
2004, requests to reclassify areas if their design value falls within 
five percent of a high or lower classification. This rule does not 
establish or address State and Tribal obligations for planning and 
control requirements which apply to nonattainment areas for the 8-hour 
ozone standard. Two separate rules, one of which is also published 
today, set forth the planning and control requirements which apply to 
nonattainment areas for this standard. The second rule will be 
published at a later date.

EFFECTIVE DATE: This final rule is effective on June 15, 2004.

ADDRESSES: EPA has established dockets for this action under Docket ID 
No. OAR-2003-0083 (Designations) and OAR-2003-0090 (Early Action 
Compacts). All documents in the docket are listed in the EDOCKET index 
at http://www.epa.gov/edocket. Although listed in the index, some 

information is not publicly available, i.e., Confidential Business 
Information (CBI) or other information whose disclosure is restricted 
by statute. Certain other material, such as copyrighted material, is 
not placed on the Internet and will be publicly available only in hard 
copy form. Publicly available docket materials are available either 
electronically in EDOCKET or in hard copy at the Docket, EPA/DC, EPA 
West, Room B102, 1301 Constitution Ave., NW., Washington, DC. The 
Public Reading Room is open from 8:30 a.m. to 4:30 p.m. Monday through 
Friday, excluding legal holidays. The telephone number for the Public 
Reading Room is (202) 566-1744, and the telephone number for the Office 
of Air and Radiation Docket and Information Center is (202) 566-1742. 
In addition, we have placed a copy of the rule and a variety of 
materials regarding designations on EPA's designation Web site at: 
http://www.epa.gov/oar/oaqps/glo/designations and on the Tribal Web site at: http://www.epa.gov/air/tribal. Materials relevant to Early 
vant to Early 
Action Compact (EAC) areas are on EPA's Web site at: http://www.epa.gov/ttn/naaqs/ozone/eac/w1040218_eac_resources.pdf.
 In 

addition, the public may inspect the rule and technical support at the 
following locations.

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            Regional offices                          States
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Dave Conroy, Acting Branch Chief, Air    Connecticut, Maine,
 Programs Branch, EPA New England, I      Massachusetts, New Hampshire,
 Congress Street, Suite 1100, Boston,     Rhode Island, and Vermont.
 MA 02114-2023, (617) 918-1661.
Raymond Werner, Chief, Air Programs      New Jersey, New York, Puerto
 Branch, EPA Region II, 290 Broadway,     Rico, and Virgin Islands.
 25th Floor, New York, NY 10007-1866,
 (212) 637-4249.
Makeba Morris, Branch Chief, Air         Delaware, District of Columbia,
 Quality Planning Branch, EPA Region      Maryland, Pennsylvania,
 III, 1650 Arch Street, Philadelphia,     Virginia, and West Virginia.
 PA 19103-2187, (215) 814-2187.
Richard A. Schutt, Chief, Regulatory     Alabama, Florida, Georgia,
 Development Section, EPA Region IV,      Kentucky, Mississippi, North
 Sam Nunn Atlanta Federal Center, 61      Carolina, South Carolina, and
 Forsyth Street, SW., 12th Floor,         Tennessee.
 Atlanta, GA 30303, (404) 562-9033.
Pamela Blakley, Acting Chief, Air        Illinois, Indiana, Michigan,
 Programs Branch, EPA Region V, 77 West   Minnesota, Ohio, and
 Jackson Street, Chicago, IL 60604,       Wisconsin.
 (312) 886-4447.
Donna Ascenzi, Acting Associate          Arkansas, Louisiana, New
 Director, Air Programs, EPA Region VI,   Mexico, Oklahoma, and Texas.
 1445 Ross Avenue, Dallas, TX 75202,
 (214) 665-2725.
Joshua A. Tapp, Chief, Air Programs      Iowa, Kansas, Missouri, and
 Branch, EPA Region VII, 901 North 5th    Nebraska.
 Street, Kansas City, Kansas 66101-
 2907, (913) 551-7606.
Richard R. Long, Director, Air and       Colorado, Montana, North
 Radiation Program, EPA Region VIII,      Dakota, South Dakota, Utah,
 999 18th Street, Suite 300, Denver, CO   and Wyoming.
 80202-2466, (303) 312-6005.
Steven Barhite, Air Planning Office,     Arizona, California, Guam,
 EPA Region IX, 75 Hawthorne Street,      Hawaii, and Nevada.
 San Francisco, CA 94105, (415) 972-
 3980.
Bonnie Thie, Manager, State and Tribal   Alaska, Idaho, Oregon, and
 Air Programs, EPA Region X, Office of    Washington.
 Air, Waste, and Toxics, Mail Code OAQ-
 107, 1200 Sixth Avenue, Seattle, WA
 98101, (206) 553-1189.
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FOR FURTHER INFORMATION CONTACT: Ms. Sharon Reinders, Designations, 
Office of Air Quality Planning and Standards, U.S. Environmental 
Protection Agency, Mail Code C539-02, Research Triangle Park, NC 27711, 
phone number (919) 541-5284 or by e-mail at: reinders.sharon@epa.gov.
    Ms. Annie Nikbakht, Part 81 Code of Federal Regulations, Office of 
Air Quality Planning and Standards, U.S. Environmental Protection 
Agency, Mail Code C539-02, Research Triangle Park, NC 27711, phone 
number (919) 541-5246 or by e-mail at: nikbakht.annie@epa.gov.
    Mr. Doug Grano, Classifications, Office of Air Quality Planning and

[[Page 23859]]

Standards, U.S. Environmental Protection Agency, Mail Code C539-02, 
Research Triangle Park, NC 27711, phone number (919) 541-3292 or by e-
mail at: grano.doug@epa.gov.
    Mr. David Cole, Early Action Compacts, Office of Air Quality 
Planning and Standards, U.S. Environmental Protection Agency, Mail Code 
C539-02, Research Triangle Park, NC 27711, phone number (919) 541-5565 
or by e-mail at: cole.david@epa.gov.
    Mr. Barry Gilbert, Technical Issues, Office of Air Quality Planning 
and Standards, U.S. Environmental Protection Agency, Mail Code C539-02, 
Research Triangle Park, NC 27711, phone number (919) 541-5238 or by e-
mail at: gilbert.barry@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

    The following is an outline of the preamble.

I. Preamble Glossary of Terms and Acronyms
II. What Is the Purpose of This Document?
III. How Is Ground-Level Ozone Formed?
IV. What Are the Health Concerns Addressed by the 8-Hour Ozone 
Standard?
V. What Is the Chronology of Events Leading Up to This Rule?
VI. What Are the Statutory Requirements for Designating Areas and 
What Is EPA's Policy and Guidance for Determining Ozone 
Nonattainment Area Boundaries for the 8-Hour Ozone NAAQS?
VII. What Are the Clean Air Act (CAA or Act) Requirements for Air 
Quality Designations and what Actions Has EPA Taken To Meet the 
Requirements?
    A. Where Can I Find Information Forming the Basis for This Rule 
and Exchanges Between EPA, States, and Tribes Related to This Rule?
VIII. What Are the CAA Requirements for Air Quality Classifications?
IX. What Action Is EPA Taking To Defer the Effective Date of 
Nonattainment Designation for EAC Areas?
    A. When Did EPA Propose the First Deferred Effective Date of 
Nonattainment Designations?
    B. What Progress Are Compact Areas Making Toward Completing 
Their Milestones?
    C. What Is Today's Final Action for Compact Areas?
    D. What Is EPA's Schedule for Taking Further Action To Continue 
To Defer the Effective Date of Nonattainment Designation for Compact 
Areas?
    E. What Action Will EPA Take if a Compact Area Does Not Meet a 
Milestone?
    F. What Comments Did EPA Receive on the December 16, 2003 
Proposal and on the June 2, 2003 Proposed Implementation Rule 
Specific to Compacts?
X. How Do Designations Affect Indian Country?
XI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review
    B. Paperwork Reduction Act
    C. Regulatory Flexibility Act
    D. Unfunded Mandates Reform Act
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children from 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions That Significantly Affect 
Energy Supply, Distribution, or Use
    I. National Technology Transfer Advancement Act
    J. Congressional Review Act

I. Preamble Glossary Of Terms And Acronyms

    The following are abbreviations of terms used in the preamble.

CAA--Clean Air Act
CFR--Code of Federal Regulations
CBI--Confidential Business Information
CMAQ--Congestion Mitigation Air Quality
CMSA--Consolidated Metropolitan Statistical Area
D.C.--District of Columbia
EAC--Early Action Compact or Compact
EPA--Environmental Protection Agency or Agency
FR--Federal Register
MPO--Metropolitan Planning Organization
MSA--Metropolitan Statistical Area
NAAQS--National Ambient Air Quality Standard or Standard
NOX--Nitrogen Oxides
NOA--Notice of Availability
NPR--Notice of Proposed Rulemaking
NSR--New Source Review
OMB--Office of Management and Budget
PPM--Parts Per Million
RFG--Reformulated Fuel
RTC--Response to Comment
SIP--State Implementation Plan
TAR--Tribal Authority Rule
TEA-21--Transportation Equity Act for the 21st Century
TPY--Tons Per Year
TSD--Technical Support Document
U.S.--United States
VOC--Volatile Organic Compounds

II. What Is the Purpose of This Document?

    The purpose of this document is to announce and promulgate 
designations, classifications, and boundaries for areas of the country 
with respect to the 8-hour ground-level ozone National Ambient Air 
Quality Standard (NAAQS) in accordance with the requirements of the 
CAA. We took several steps to announce that this rule was available. We 
posted the rule on several EPA Web sites and provided a copy of the 
rule, which was signed by the Administrator on April 15, 2004, to 
States and Tribes.

III. How Is Ground-Level Ozone Formed?

    Ground-level ozone (sometimes referred to as smog) is formed by the 
reaction of volatile organic compounds (VOCs) and oxides of nitrogen 
(NOX) in the atmosphere in the presence of sunlight. These 
two pollutants, often referred to as ozone precursors, are emitted by 
many types of pollution sources, including on-road and off-road motor 
vehicles and engines, power plants and industrial facilities, and 
smaller sources, collectively referred to as area sources. Ozone is 
predominately a summertime air pollutant. Changing weather patterns 
contribute to yearly differences in ozone concentrations from region to 
region. Ozone and the pollutants that form ozone also can be 
transported into an area from pollution sources found hundreds of miles 
upwind.

IV. What Are the Health Concerns Addressed by the 8-Hour Ozone 
Standard?

    During the hot summer months, ground-level ozone reaches unhealthy 
levels in several parts of the country. Ozone is a significant health 
concern, particularly for children and people with asthma and other 
respiratory diseases. Ozone has also been associated with increased 
hospitalizations and emergency room visits for respiratory causes, 
school absences, and reduced activity and productivity because people 
are suffering from ozone-related respiratory symptoms.
    Breathing ozone can trigger a variety of health problems. Ozone can 
irritate the respiratory system, causing coughing, throat irritation, 
an uncomfortable sensation in the chest, and/or pain when breathing 
deeply. Ozone can worsen asthma and possibly other respiratory 
diseases, such as bronchitis and emphysema. When ozone levels are high, 
more people with asthma have attacks that require a doctor's attention 
or the use of additional medication. Ozone can reduce lung function and 
make it more difficult to breathe deeply, and breathing may become more 
rapid and shallow than normal, thereby limiting a person's normal 
activity. In addition, breathing ozone can inflame and damage the 
lining of the lungs, which may lead to permanent changes in lung 
tissue, irreversible reductions in lung function, and a lower quality 
of life if the inflammation occurs repeatedly over a long time period 
(months, years, a lifetime). People who are particularly

[[Page 23860]]

susceptible to the effects of ozone include children and adults who are 
active outdoors, people with respiratory disease, such as asthma, and 
people with unusual sensitivity to ozone.
    More detailed information on the health effects of ozone can be 
found at the following Web site: http://www.epa.gov/ttn/naaqs/standards/ozone/s_o3_index.html
.


V. What Is the Chronology of Events Leading Up to This Rule?

    This section summarizes the relevant activities leading up to 
today's rule, including promulgation of the 8-hour ozone NAAQS and 
litigation challenging that standard. The CAA establishes a process for 
air quality management through the NAAQS. Area designations are 
required after promulgation of a new or revised NAAQS. In 1979, we 
promulgated the 0.12 parts per million (ppm) 1-hour ozone standard, (44 
Federal Register 8202, February 8, 1979). On July 18, 1997, we 
promulgated a revised ozone standard of 0.08 ppm, measured over an 8-
hour period, i.e., the 8-hour standard (62 FR 38856). The 8-hour 
standard is more protective of public health and more stringent than 
the 1-hour standard. The NAAQS rule was challenged by numerous 
litigants and in May 1999, the U.S. Court of Appeals for the D.C. 
Circuit issued a decision remanding, but not vacating, the 8-hour ozone 
standard. Among other things, the Court recognized that EPA is required 
to designate areas for any new or revised NAAQS in accordance with the 
CAA and addressed a number of other issues, which are not related to 
designations. American Trucking Assoc. v. EPA, 175 F.3d 1027, 1047-48, 
on rehearing 195 F.3d 4 (D.C. Cir., 1999). We sought review of two 
aspects of that decision in the U.S. Supreme Court. In February 2001, 
the Supreme Court upheld our authority to set the NAAQS and remanded 
the case back to the D.C. Circuit for disposition of issues the Court 
did not address in its initial decision. Whitman v. American Trucking 
Assoc., 121 S. Ct. 903, 911-914, 916-919 (2001) (Whitman). The Supreme 
Court also remanded the 8-hour implementation strategy to EPA. In March 
2002, the D.C. Circuit rejected all remaining challenges to the 8-hour 
ozone standard. American Trucking Assoc. v. EPA, 283 F.3d 355 (D.C. 
Cir. 2002).
    The process for designations following promulgation of a NAAQS is 
contained in section 107(d)(1) of the CAA. For the 8-hour NAAQS, the 
Transportation Equity Act for the 21st Century (TEA-21) extended by 1 
year the time for EPA to designate areas for the 8-hour NAAQS.\1\ Thus, 
EPA was required to designate areas for the 8-hour NAAQS by July 2000. 
However, HR3645 (EPA's appropriation bill in 2000) restricted EPA's 
authority to spend money to designate areas until June 2001 or the date 
of the Supreme Court ruling on the standard, whichever came first. As 
noted earlier, the Supreme Court decision was issued in February 2001. 
In 2003, several environmental groups filed suit in district court 
claiming EPA had not met its statutory obligation to designate areas 
for the 8-hour NAAQS. We entered into a consent decree, which requires 
EPA to issue the designations by April 15, 2004.
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    \1\ CAA 107(d)(1); TEA-21 Sec.  6103(a).
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VI. What Are the Statutory Requirements for Designating Areas and What 
Is EPA's Policy and Guidance for Determining Nonattainment Area 
Boundaries for the 8-Hour Ozone NAAQS?

    This section describes the statutory definition of nonattainment 
and EPA's guidance for determining air quality attainment and 
nonattainment areas for the 8-hour ozone NAAQS. In March 2000 \2\ and 
July 2000 \3\ we issued designation guidance on how to determine the 
boundaries for nonattainment areas. In that guidance, we rely on the 
CAA definition of a nonattainment area that is defined in section 
107(d)(1)(A)(i) as an area that is violating an ambient standard or is 
contributing to a nearby area that is violating the standard. If an 
area meets this definition, EPA is obligated to designate the area as 
nonattainment.
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    \2\ Memorandum of March 28, 2002, from John S. Seitz, ``Boundary 
Guidance on Air Quality Designations for the 8-Hour Ozone National 
Ambient Air Quality Standards.''
    \3\ Memorandum of July 18, 2000, from John S. Seitz, ``Guidance 
on 8-Hour Ozone Designations for Indian Tribes.''
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    In making designations and classifications, we use the most recent 
3 years of monitoring data.\4\ Therefore, today's designations and 
classifications are generally based on monitoring data collected in 
2001-2003 although other relevant years of data may have been used in 
certain circumstances. Once we determine that a monitor is recording a 
violation, the next step is to determine if there are any nearby areas 
that are contributing to the violation and include them in the 
designated nonattainment area.
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    \4\ To determine whether an area is attaining the 8-hour ozone 
NAAQS, EPA considers the most recent 3 consecutive years of data in 
accordance with 40 Code of Federal Regulations (CFR) part 50, 
appendix I.
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    For guidance on determining the nonattainment boundary for the 8-
hour ozone standard, we look to CAA section 107(d)(4) that established 
the Consolidated Metropolitan Statistical Area (CMSA) or Metropolitan 
Statistical Area (MSA) presumptive boundary for more polluted areas 
when we promulgated our designation actions in 1991 for the 1-hour 
ozone standard. In our guidance on determining nonattainment area 
boundaries for the 8-hour ozone standard, we advised States that if a 
violating monitor is located in a CMSA or MSA (as defined by the Office 
of Management and Budget (OMB) in 1999), the larger of the 1-hour ozone 
nonattainment area or the CMSA or MSA should be considered in 
determining the boundary of a nonattainment area. The actual size of 
the nonattainment area may be larger or smaller, depending on air 
quality-related technical factors contained in our designation 
guidance. We start with counties in the CMSA or MSA because that area, 
defined by OMB, generally shares economic, transportation, population 
and other linkages that are similar to air quality related factors that 
produce ozone pollution. Also, many CMSAs and MSAs generally are 
associated with higher levels of ozone concentrations and ozone 
precursor emissions than areas that are not in or near CMSAs or MSAs.
    In June 2003, OMB released a new list of statistical areas. This 
release was so late in the designation process that we determined that 
it would be disruptive and unfair to the States and Tribes to revise 
our guidance. However, we believe it is necessary to evaluate all 
counties in and around an area containing a monitor that is violating 
the standard, pursuant to our guidance to consider nearby areas that 
are contributing to a violation in determining the boundaries of the 
nonattainment area.
    Once a CMSA, MSA or single county area is determined to contain a 
monitor that is violating the standard, the area can be evaluated using 
all applicable suggested air quality related factors in our guidance. 
The factors can be used to justify including counties outside the CMSA 
or MSA or excluding counties in the CMSA or MSA. The factors were 
compiled based on our experience in designating areas for the ozone 
standard in March 1978 and November 1991 and by looking to the CAA, 
section 107(d)(4), which states that the Administrator and the Governor 
shall consider factors such as population density, traffic congestion, 
commercial

[[Page 23861]]

development, industrial development, meteorological conditions, and 
pollution transport. State and local agencies also had extensive input 
into compiling the factors.
    The factors are:
    (1) Emissions and air quality in adjacent areas (including adjacent 
CMSAs and MSAs),
    (2) Population density and degree of urbanization including 
commercial development (significant difference from surrounding areas),
    (3) Monitoring data representing ozone concentrations in local 
areas and larger areas (urban or regional scale),
    (4) Location of emission sources (emission sources and nearby 
receptors should generally be included in the same nonattainment area),
    (5) Traffic and commuting patterns,
    (6) Expected growth (including extent, pattern and rate of growth),
    (7) Meteorology (weather/transport patterns),
    (8) Geography/topography (mountain ranges or other air basin 
boundaries),
    (9) Jurisdictional boundaries (e.g., counties, air districts, 
existing 1-hour nonattainment areas, Reservations, etc.),
    (10) Level of control of emission sources, and,
    (11) Regional emissions reductions (e.g., NOX State 
Implementation Plan (SIP) Call or other enforceable regional 
strategies).
    When evaluating the air quality factors for individual areas, we 
took into account our view that data recorded by an ozone air quality 
monitor in most cases represents air quality throughout the area in 
which it is located. In addition, we used the county (or in the case of 
parts of New England, the township) as the basic jurisdictional unit in 
determining the extent of the area reflected by the ozone monitor data. 
As a result, if an ozone monitor was violating the standard based on 
the 2001-2003 data, we designated the entire county as nonattainment. 
There were some exceptions to this rule: in cases where a county was 
extremely large as in the West; where a geographic feature bifurcated a 
county, leading to different air quality in different parts of the 
county; and where a mountain top monitor reflected the air quality data 
only on the mountain top and not in lower elevation areas.
    After identifying the counties with violating monitors, we then 
determined which nearby counties were not monitoring violations but 
were nonetheless contributing to the nearby violation. We considered 
each of the 11 factors in making our contribution assessment, including 
emissions, traffic patterns, population density, and area growth. In 
some cases, in considering these factors, as well as information and 
recommendations provided by the State, we determined that only part of 
a county was contributing to the nearby nonattainment area. In 
addition, in certain cases, we determined that a county without an 
ozone monitor should be designated nonattainment because contiguous 
counties have monitors that are violating the standard. In at least two 
instances, we determined that a part of a county with no monitor, but 
with a large emission source that did not have state-of-the-art 
controls, contributes to a nearby violation. In some instances, if a 
State had requested that we continue to use the 1-hour ozone 
nonattainment boundary for an area, we continued to use that boundary 
in determining the size of the 8-hour nonattainment area.
    The EPA cannot rely on planned ozone reduction strategies in making 
decisions regarding nonattainment designations, even if those 
strategies predict that an area may attain in the future. We recognize 
that some areas with a violating monitor may come into attainment in 
the future without additional local emission controls because of State 
and/or national programs that will reduce ozone transport. While we 
cannot consider these analyses in determining designations, we intend 
to expedite the redesignation of the areas to attainment once they 
monitor clean air. We also intend to apply our policy which streamlines 
the planning process for nonattainment areas that are meeting the 
NAAQS.\5\
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    \5\ Memorandum of May 10, 1995, from John S. Seitz, ``Reasonable 
Further Progress, Attainment Demonstration, and Related Requirements 
for Ozone Nonattainment Areas Meeting the Ozone National Ambient Air 
Quality Standard.''
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    We believe that area-to-area variations must be considered in 
determining whether to include a county as contributing to a particular 
nonattainment problem. Thus, our guidance does not establish cut-points 
for how a particular factor is applied, e.g., it does not identify a 
set amount of VOC or NOX emissions or a specific level of 
commuting population that would result in including a county in the 
designated nonattainment area. For example, a county with a large 
source or sources of NOX emissions may be considered as a 
contributing county if it is upwind, rather than downwind, of a 
violating monitor. Additionally, a county with VOC emissions of 5,000 
tons per year (tpy) might be viewed differently if the total VOC 
emissions of the area are 15,000 tpy rather than 30,000 tpy. We 
analyzed the information provided by each State or Tribe in its 
recommendation letter, or subsequently submitted, along with any other 
pertinent information available to EPA, to determine whether a county 
should be designated nonattainment. We evaluated each State or Tribal 
designation recommendation in light of the 11 factors, bringing to bear 
our best technical and policy judgement. If the result of the 
evaluation is that a county, whether inside or outside of the CMSA or 
MSA, is contributing to the violation, we designated the area as 
nonattainment.

VII. What Are the CAA Requirements for Air Quality Designations and 
What Actions Has EPA Taken To Meet the Requirements?

    In this part, we summarize the provisions of section 107(d)(1) of 
the CAA that govern the process States and EPA must undertake to 
recommend and promulgate designations. Following promulgation of a 
standard, each State Governor or Tribal leader has an opportunity to 
recommend air quality designations, including appropriate boundaries, 
to EPA. No later than 120 days prior to promulgating designations, we 
must notify States or Tribes if we intend to make modifications to 
their recommendations and boundaries as we deem necessary. States and 
Tribes then have an opportunity to provide a demonstration as to why 
the proposed modification is inappropriate. Whether or not a State or 
Tribe provides a recommendation, EPA must promulgate the designation it 
deems appropriate.
    In June 2000, we asked each State and Tribal Governor or Tribal 
leader to submit their designation recommendations and supporting 
documentation to EPA. Because of the uncertainties due to the ongoing 
litigation on the ozone standard, we did not notify States and Tribes 
of any intended modifications and did not designate areas at that time. 
After the legal challenges to the ozone NAAQS were resolved, we 
requested that States and Tribes provide updated recommendations and 
any additional supporting documentation by July 15, 2003. EPA published 
a Notice of Availability (NOA) announcing the availability of the State 
and Tribal recommendations in the FR on September 8, 2003 (68 FR 
52933). After carefully evaluating each recommendation and the 
supporting documentation, on December 3, 2003, we wrote a letter to 
each State and Tribe notifying them if we intended to make a 
modification to their recommendation and indicating the area with which 
we agreed with their recommendation. We

[[Page 23862]]

provided an opportunity until February 6, 2004, for a demonstration as 
to why our modification was not appropriate. A NOA announcing the 
availability of our letters was published in the FR on December 10, 
2003 (68 FR 68805). In response to our December 3, 2003 letters, we 
received letters and demonstrations from many States and Tribes on why 
our modifications were not appropriate. We evaluated each letter and 
all of the timely technical information provided to us before arriving 
at the final decisions reflected in today's rule. Some of the 
designations reflect our modifications to the State or Tribes' 
recommendations. Throughout the designation process, we have received 
letters from other interested parties. We have placed these letters and 
our responses to the substantive issues raised by them in the docket. 
Responses to significant comments received on EAC areas are summarized 
in this document.
    Tribal designation activities are covered under the authority of 
section 301(d) of the CAA. This provision of the Act authorizes us to 
treat eligible Indian Tribes in the same manner as States. Pursuant to 
section 301(d)(2), we promulgated regulations known as the Tribal 
Authority Rule (TAR) on February 12, 1999, that specify those 
provisions of the CAA for which it is appropriate to treat Tribes as 
States, (63 FR 7254), codified at 40 CFR part 49 (1999). Under the TAR, 
Tribes may choose to develop and implement their own CAA programs, but 
are not required to do so. The TAR also establishes procedures and 
criteria by which Tribes may request from EPA a determination of 
eligibility for such treatment. The designations process contained in 
section 107(d) of the CAA is included among those provisions determined 
appropriate by us for treatment of Tribes in the same manner as States. 
As authorized by the TAR, Tribes may request an opportunity to submit 
designation recommendations to us. In cases where Tribes do not make 
their own recommendations, EPA, in consultation with the Tribes, will 
promulgate the designation we deem appropriate on their behalf. We 
invited all Tribes to submit recommendations to us. We worked with the 
Tribes that requested an opportunity to submit designation 
recommendations. Eligible Tribes could choose to submit their own 
recommendations and supporting documentation. We reviewed the 
recommendations made by Tribes and, in consultation with the Tribes, 
made modifications as deemed necessary. Under the TAR, Tribes generally 
are not subject to the same submission schedules imposed by the CAA on 
States. However, we worked with Tribes in scheduling interim activities 
and final designation actions because of the consent decree obligating 
us to have a signed rule designating areas by April 15, 2004.
    Today's designation action is a final rule establishing 
designations for all areas of the country. Today's action also sets 
forth the classifications for subpart 2 ozone nonattainment areas. 
Section 181(a) provides that areas will be classified at the time of 
designation. This rulemaking fulfills those requirements. 
Classifications are discussed below.

A. Where Can I Find Information Forming the Basis for This Rule and 
Exchanges Between EPA, States, and Tribes Related to This Rule?

    Discussions concerning the basis for today's actions and decisions 
are provided in the technical support document (TSD). The TSD, along 
with copies of all of the above mentioned correspondence, other 
correspondence between the States, Tribes, interested parties, and EPA 
regarding this process and guidance memoranda are available for review 
in the EPA Docket Center listed above in the addresses section of this 
document and on our designation Web site at: http://www.epa.gov/oar/oaqps/glo/designations.
 State specific information is available at the 

EPA Regional Offices.

VIII. What Are the CAA Requirements for Air Quality Classifications?

    The CAA contains two sets of provisions--subpart 1 and subpart 2--
that address planning and control requirements for nonattainment areas. 
(Both are found in title I, part D.) Subpart 1 (which we refer to as 
``basic'' nonattainment contains general, less prescriptive, 
requirements for nonattainment areas for any pollutant--including 
ozone--governed by a NAAQS. Subpart 2 (which we refer to as 
``classified'' nonattaiment) provides more specific requirements for 
ozone nonattainment areas.\6\ Some areas will be subject only to the 
provisions of subpart 1. Other areas will be subject to the provisions 
of subpart 2. Section 172(a)(1) provides that EPA has the discretion to 
classify areas subject only to subpart 1. Under subpart 2, areas will 
be classified based on each area's design value. Control requirements 
are linked to each classification. Areas with more serious ozone 
pollution are subject to more prescribed requirements. The requirements 
are designed to bring areas into attainment by their specified 
attainment dates.
---------------------------------------------------------------------------

    \6\ State Implementation Plans; General Preamble for the 
Implementation of Title I of the CAA Amendments of 1990; Proposed 
Rule.'' April 16, 1992 (57 FR 13498 at 13501 and 13510).
---------------------------------------------------------------------------

    Under our 8-hour ozone implementation rule, signed on April 15, 
2004, an area will be classified under subpart 2 based on its 8-hour 
design value \7\ if it has a 1-hour design value at or above 0.121 ppm 
(the lowest 1-hour design value in Table 1 of subpart 2). All other 
areas will be covered under subpart 1. Section 172(a)(1) provides EPA 
with discretion whether to classify areas under subpart 1 and we are 
not classifying subpart 1 areas, with one exception. As noted in EPA's 
final rule on implementing the 8-hour ozone standard (Phase 1 
implementation rule), we are creating an overwhelming transport 
classification that will be available to subpart 1 areas that 
demonstrate they are affected by overwhelming transport of ozone and 
its precursors and demonstrate they meet the definition of a rural 
transport area in section 182(h). No subpart 1 areas are being 
classified in today's action; however, for informational purposes, 8-
hour ozone nonattainment areas covered under subpart 1 are identified 
as such in the classification column in 40 CFR part 81.
---------------------------------------------------------------------------

    \7\ For the 1-hour ozone NAAQS, design value is defined at 40 
CFR 51.900(c). For the 8-hour ozone NAAQS, design value is defined 
at 40 CFR 51.900(d).
---------------------------------------------------------------------------

    Any area with a 1-hour ozone design value (based on the most recent 
3 years of data) that meets or exceeds the statutory level of 0.121 ppm 
that Congress specified in Table 1 of section 181 is classified under 
subpart 2 and is subject to the control obligations associated with its 
classification.\8\ Subpart 2 areas are classified as marginal, 
moderate, serious, or severe based on the area's 8-hour design value 
calculated using the most recent 3 years of data.\9\ As described in 
the Phase 1 implementation rule, since Table 1 is based on 1-hour 
design values, we promulgated in that rule a regulation translating the 
thresholds in Table 1 of section 181 from 1-hour values to 8-hour 
values. (See Table 1, below, ``Classification for 8-Hour NAAQS'' from 
40 CFR 51.903.)
---------------------------------------------------------------------------

    \8\ In the Phase 2 implementation rule, we will address the 
control obligations that apply to areas under both subpart 1 and 
subpart 2.
    \9\ At this time, there are no areas with design values in the 
extreme classification for the 8-hour ozone standard.

[[Page 23863]]



                                 Table 1.--Classification for 8-Hour Ozone NAAQS
----------------------------------------------------------------------------------------------------------------
                                                                                            Maximum period for
                                                                                           Attainment dates in
                                                                         8-hour  design    State plans  (years
                Area class                                                value   (ppm   after effective date of
                                                                             ozone)           nonattainment
                                                                                          designation for 8-hour
                                                                                                  NAAQS)
----------------------------------------------------------------------------------------------------------------
Marginal.................................  from........................           0.085                        3
                                           up to*......................           0.092
Moderate.................................  from........................           0.092                        6
                                           up to*......................           0.107
Serious..................................  from........................           0.107                        9
                                           up to*......................           0.120
Severe-15................................  from........................           0.120                       15
                                           up to*......................           0.127
Severe-17................................  from........................           0.127                       17
                                           up to*......................           0.187
Extreme..................................   equal to or above..........           0.187                      20
----------------------------------------------------------------------------------------------------------------
 *But not including.

Five Percent Bump Down

    Under section 181(a)(4), an ozone nonattainment area may be 
reclassified ``if an area classified under paragraph (1) (Table 1) 
would have been classified in another category if the design value in 
the area were 5 percent greater or 5 percent less than the level on 
which such classification was based.'' The section also states that 
``In making such adjustment, the Administrator may consider the number 
of exceedances of the national primary ambient air quality standard for 
ozone in the area, the level of pollution transport between the area 
and other affected areas, including both intrastate and interstate 
transport, and the mix of sources and air pollutants in the area.
    As noted in the November 6, 1991, FR on designating and classifying 
areas, the section 181(a)(4) provisions grant the Administrator broad 
discretion in making or determining not to make, a reclassification (56 
FR 56698). As part of the 1991 action, EPA developed criteria (see list 
below) to evaluate whether it is appropriate to reclassify a particular 
area. In 1991, EPA approved reclassifications when the area met the 
first requirement (a request by the State to EPA) and at least some of 
the other criteria and did not violate any of the criteria (emissions, 
reductions, trends, etc.). We intend to use this method and these 
criteria once again to evaluate reclassification requests under section 
181(a)(4), with the minor changes noted below. Because section 
181(b)(3) provides that an area may request a higher classification and 
EPA must grant it, these criteria primarily focus on how we will assess 
requests for a lower classification. We further discuss bump ups below.
    Request by State: The EPA does not intend to exercise its authority 
to bump down areas on EPA's own initiative. Rather, EPA intends to rely 
on the State to submit a request for a bump down. A Tribe may also 
submit such a request and, in the case of a multi-state nonattainment 
area, all affected States must submit the reclassification request.
    Discontinuity: A five percent reclassification must not result in 
an illogical or excessive discontinuity relative to surrounding areas. 
In particular, in light of the area-wide nature of ozone formation, a 
reclassification should not create a ``donut hole'' where an area of 
one classification is surrounded by areas of higher classification.
    Attainment: Evidence should be available that the proposed area 
would be able to attain by the earlier date specified by the lower 
classification in the case of a bump down.
    Emissions reductions: Evidence should be available that the area 
would be very likely to achieve the appropriate total percent emission 
reduction necessary in order to attain in the shorter time period for a 
bump down.
    Trends: Near- and long-term trends in emissions and air quality 
should support a reclassification. Historical air quality data should 
indicate substantial air quality improvement for a bump down. Growth 
projections and emission trends should support a bump down. In 
addition, we will consider whether vehicle miles traveled and other 
indicators of emissions are increasing at higher than normal rates.
    Years of data: For the 8-hour ozone standard, the 2001-2003 period 
is central to determining classification. This criterion has been 
updated to reflect the latest air quality data available to make the 
determinations within the statute's 90 day limitation.

Limitations on Bump Downs

    An area may only be reclassified to the next lower classification. 
An area cannot present data from other years as justification to be 
reclassified to an even lower classification. In addition, section 
181(a)(4) does not permit moving areas from subpart 2 into subpart 1.
    The EPA applied these criteria in 1991. For example, our action to 
bump down one area from severe to serious considered trends in 
population and emissions data, similarities to a nearby serious area, 
disparity with a nearby moderate area, the logical gradation of 
attainment deadlines proceeding outward from large metropolitan areas 
upwind, and the likelihood that the area would be able to attain the 
NAAQS in the shorter time frame. In approving a bump down to marginal, 
we noted that air quality trends showed improvement and recent air 
quality data indicated a marginal status. In denying a bump down, we 
analyzed local air quality trends and emission sources and considered 
long range transport from an area with a much later attainment 
deadline, which together made it unlikely the candidate area could 
attain the standard in the shorter time frame associated with the lower 
classification. Requests to bump down areas were also denied due, in 
part, to concern that transport of emissions from these areas would 
make it less likely that downwind nonattainment areas could attain the 
standards in a timely fashion. For additional information, see section 
5, ``Areas requesting a 5% downshift per Sec.  181(a)(4) and EPA's 
response to those requests,'' of the Technical Support Document, 
October 1991 for the 1991 rule. [Docket A-90-42A.]

[[Page 23864]]

Five Percent Bump Up

    An ozone nonattainment area may also be reclassified under section 
181(a)(4) to the next higher classification. For the reasons described 
below (``Other Reasons to Consider Bump Ups''), we believe some areas 
with design values close to the next higher classification may not be 
able to attain within the period allowed by their classification. We 
encourage States to request reclassification upward where the State 
finds that an area may need more time to attain than their 
classification would permit. In addition, EPA will consider bumping up 
areas subject to the five percent provision on our own initiative where 
there is evidence that an area is unlikely to attain within the period 
allowed by their classification. In making this determination, EPA 
would consider criteria similar to that listed above (adjusted to 
consider bump ups rather than bump downs) regarding discontinuity, 
attainment, emissions reduction and trends. The following areas have 
design values based on 2001-2003 data that fall within five percent of 
the next higher classification:

Marginal areas within five percent of Moderate
    Portland, ME; Atlanta, GA; Beaumont-Port Arthur, TX; and Norfolk, 
VA
Moderate areas within five percent of Serious
    New York-New Jersey-Long Island, NY-NJ-CT; Los Angeles-San 
Bernardino Counties (W. Mojave), CA; Baltimore, MD; Cleveland-Akron-
Lorain, OH; and Houston-Galveston-Brazoria, TX
Serious areas within five percent of Severe-15
    San Joaquin Valley, CA

Calculation of Five Percent

    For an area to be eligible for a bump down (or bump up) under 
section 181(a)(4), the area's design value must be within five percent 
of the next lower (or higher) classification. For example, an area with 
a moderate design value of 0.096 ppm (or less) would be eligible to 
request a bump down because five percent less than 0.096 ppm is 0.091 
ppm, a marginal design value.\10\ An area with a moderate design value 
of 0.102 ppm (or more) would be eligible for a bump up because five 
percent more than 0.102 ppm is 0.107 ppm, a serious design value. As a 
result, the following areas may be eligible to request a bump down: 
moderate areas with a design value of 0.096 ppm or less; serious areas 
with a design value of 0.112 ppm or less; and severe-17 areas with a 
design value of 0.133 ppm or less. Similarly, for bump ups, the 
following areas may be eligible: marginal areas with a design value of 
0.088 ppm or more; moderate areas with a design value of 0.102 ppm or 
more; and serious areas with a design value of 0.115 ppm or more.
---------------------------------------------------------------------------

    \10\ See EPA's ``Guideline on Data Handling Conventions for the 
8-Hour Ozone NAAQS'' (12-98) and appendix I to 40 CFR part 50.
---------------------------------------------------------------------------

Timing of the Five Percent Reclassifications

    The notice of availability for this rule permits States to submit 
five percent reclassification requests within 30 days of the effective 
date of the designations and classifications. The effective date is 
June 15 which means that reclassification requests must be submitted by 
July 15, 2004. This relatively short time frame is necessary because 
section 181(a)(4) only authorizes the Administrator to make such 
reclassifications within 90 days after the initial classification. 
Thus, the Governor or eligible Tribal governing body of any area that 
wishes to pursue a reclassification should submit all requests and 
supporting documentation to the EPA Regional office by July 15, 2004. 
We will make a decision by September 15, 2004.

Other Reasons To Consider Bump Ups

    We encourage States to consider a voluntary bump up in cases where 
the State finds that an area may need more time to attain the 8-hour 
NAAQS than its classification would permit. In addition to the 
reclassification provision of section 181(a)(4), a State can request a 
higher classification under section 181(b)(3) of the CAA. This 
provision directs EPA to grant a State's request for a higher 
classification and to publish notice of the request and EPA's approval. 
In addition, we are interpreting section 181(b)(3) to allow a State 
with an area covered under subpart 1 to request a reclassification to a 
subpart 2 classification.
    We note that it is difficult to determine when an area will be able 
to attain the NAAQS in advance of State development of attainment 
plans. These plans are based on high-resolution local air quality 
modeling, refined emissions inventories, use of later air quality data, 
and detailed analyses of the impacts and costs of potential local 
control measures. As noted earlier, we are classifying nonattainment 
areas subject to subpart 2 based on the most recent ozone design values 
at the time of designation, the 2001-2003 period. Because of year-to-
year variations in meteorology, this snapshot in time may not be 
representative of the normal magnitude of problems that some areas may 
face.
    The EPA's analysis in the proposed Interstate Air Quality Rule 
(IAQR) uses design values taken from the 2000-2002 period, rather than 
the 2001-2003 data used in the classification process. At the time the 
IAQR modeling was completed, 2000-2002 was the latest period which was 
available for determining designation compliance with the NAAQS. 
Concentrations of ozone in 2010 were estimated by applying the relative 
change in model predicted ozone from 2001 to 2010 with the 8-hour ozone 
design values (2000-2002). The IAQR base case analysis (which assumes 
existing control requirements only) projects ozone values in 2010 for 
several areas--for example, Baltimore, Houston, New York and 
Philadelphia--that are high enough to suggest that the areas may be 
unable to attain by 2010, given our current information on the 
potential for additional controls. Yet, as a result of their 
classification, these areas are required to adopt a plan to attain the 
8-hour ozone standard earlier than the 2010 ozone season. Atlanta has a 
projected 2010 ozone value much closer to the standard, but has an 
attainment date prior to the 2007 ozone season. Thus, the IAQR 
analysis, based on the 2000-2002 period, suggests that States should 
evaluate whether certain areas may need more time to attain. States 
should consider in their local air quality modeling whether an area's 
projected air quality level would be higher if the projection were 
based on different three-year base periods. While we recognize that 
future local analyses for specific nonattainment areas may show 
different results than the regional IAQR analysis, we encourage States 
to consider requesting a higher classification for areas that the State 
believes need more time to attain, especially in cases where existing 
modeling analysis and information on potential controls suggests more 
time is needed than their classification would permit.

IX. What Action Is EPA Taking To Defer the Effective Date of 
Nonattainment Designations for EAC Areas?

    This section discusses EPA's final action with respect to deferring 
the effective date of nonattainment designations for areas of the 
country that do not meet the 8-hour ozone NAAQS and are participating 
in the EAC program. By December 31, 2002, we entered into compacts with 
33 communities. To receive this deferral, these EAC areas have agreed 
to reduce ground-level ozone pollution earlier

[[Page 23865]]

than the CAA would require. This final rule for compact areas addresses 
several key aspects of the proposed rule, including deferral of the 
effective date of nonattainment designation for certain compact areas; 
progress of compact areas toward completing their milestones; final 
action for compact areas; EPA's schedule for taking further action to 
continue to defer the effective date of nonattainment designations, if 
appropriate; and consequences for compact areas that do not meet a 
milestone. In this action, we have added regulatory text to clarify 
specific requirements in part 81 for compact areas and to identify 
actions that we will take to address any failed milestones. Finally, we 
have responded to the significant comments on the proposed rule.

A. When Did EPA Propose the First Deferred Effective Date of 
Nonattainment Designations?

    On December 16, 2003 (68 FR 70108), we published a proposed rule to 
defer the effective date of air quality nonattainment designations for 
EAC areas that do not meet the 8-hour ozone NAAQS. The proposal also 
described the compact approach, the requirements for areas 
participating in the program, and the impacts of the program on these 
areas. Compact areas have agreed to reduce ground-level ozone pollution 
earlier than the CAA would require. Please refer to the proposed rule 
for a detailed discussion and background information on the development 
of the compact program, what compact areas are required to do, and the 
impacts of the program.
    Table 2 describes the milestones and submissions that compact areas 
are required to complete to continue eligibility for a deferred 
effective date of nonattainment designation for the 8-hour ozone 
standard.

                Table 2.--Early Action Compact Milestones
------------------------------------------------------------------------
        Submittal date                     Compact milestone
------------------------------------------------------------------------
December 31, 2002............  Submit Compact for EPA signature.
June 16, 2003................  Submit preliminary list and description
                                of potential local control measures
                                under consideration.
March 31, 2004...............  Submit complete local plan to State
                                (includes specific, quantified and
                                permanent control measures to be
                                adopted).
December 31, 2004............  State submits adopted local measures to
                                EPA as a SIP revision that, when
                                approved, will be federally enforceable.
2005 Ozone Season (or no       Implement SIP control measures.
 later than December 31,
 2005).
June 30, 2006................  State reports on implementation of
                                measures and assessment of air quality
                                improvement and reductions in NOX and
                                VOC emissions to date
December 31, 2007............  Area attains 8-hour ozone NAAQS.
------------------------------------------------------------------------

B. What Progress Are Compact Areas Making Toward Completing Their 
Milestones?

    In this section we describe the status of the compact areas' 
progress toward meeting their compact milestones. In general, these 
areas have made satisfactory progress toward timely completion of their 
milestones. As reported in the December 16, 2003 proposal, all 33 
communities met the June 16, 2003 milestone, which required areas to 
submit a list and description of local control measures each area 
considered for adoption and implementation. A compiled list, as well as 
highlights, of these local measures is found on EPA's Web site for 
compact areas at http://www.epa.gov/ttn/ naaqs/ozone/eac/

index.htm#EACsummary. By December 31, 2003, compact areas reported the 
status of these measures by identifying the local measures still under 
consideration at that time, the estimated emissions reductions expected 
from these measures, and the schedule for implementation. A summary of 
the local measures as reported in December 2003 is presented on EPA's 
EAC Web site at http://www.epa.gov/ttn/ naaqs/ozone/eac/20031231-- 

eac--measures--full--list.pdf.
    By March 31, 2004, compact areas submitted local plans, which 
included measures for adoption that are specific, quantified, and 
permanent, and if approved by EPA, will be federally enforceable as 
part of the SIP. These plans also included specific implementation 
dates for the local controls, as well as a technical assessment of 
whether the area could attain the 8-hour ozone NAAQS by the December 
31, 2007 milestone, which is described in Table 2. The local plans for 
all compact areas are posted on the EAC Web site at: http://www.epa.gov/ttn
 /naaqs/ozone/eac/#List.

    The EPA reviewed all of the local plans submitted by March 31, 2004 
and determined that most of the plans were acceptable. With respect to 
control strategies, a number of areas are relying on measures to be 
adopted by the State, and are committed to implement these measures by 
2005. In many cases, particularly in the southeast, the MAC areas 
demonstrated that they can attain the 8-hour ozone standard by December 
2007 without implementation of local controls. In general, the 
technical demonstrations of attainment were acceptable; however, some 
of the 33 communities did not project attainment in 2007 (the 
attainment test) based on modeling, unless they considered additional 
factors to supplement their analysis (i.e., weight of evidence). In 
evaluating a State's weight of evidence determination for an area, we 
consider the results of the modeled, attainment test--for all EAC 
areas, a demonstration of attainment in 2007--along with additional 
information, such as predicted air quality improvement, meteorological 
influences, and additional measures not modeled. Our modeling guidance 
indicates that the farther an area is from the level of the standard, 
the more compelling the additional information needs to be in order to 
demonstrate that the area will attain the standard. Based on our 
analysis of the technical information provided, we believe that some 
areas did not present as strong a case as other areas to demonstrate 
attainment by December 2007. Three areas in Tennessee, Knoxville, 
Memphis and Chattanooga each developed attainment demonstrations that 
generally conform to our modeling guidance. However, in reviewing and 
analyzing the local plans for these areas, we determined that 
Knoxville, Memphis and Chattanooga did not pass the modeled attainment 
test and the predicted air quality improvement test. In addition, our 
review of meteorological influences for the three areas was 
inconclusive; and these areas did not provide additional measures not 
already modeled. In

[[Page 23866]]

addition to the technical analysis, we reviewed the strength of the 
control strategies each EAC area proposed in their March 31, 2004 
plans. We determined that the control measures submitted by these three 
areas could have been strengthened, and the Agency expected more local 
measures. Therefore, EPA determined that the States' technical 
assessments for each of these areas and their suite of measures were 
not acceptable. The only other two compact areas that did not pass the 
modeled attainment test, the Denver, Colorado area and the Triad 
(Greensboro-Winston-Salem-High Point), North Carolina area, provided 
more meaningful local control measures than the three Tennessee compact 
areas.
    Based on our review and evaluation of these local plans, we have 
determined that Knoxville, Memphis and Chattanooga do not meet the 
March 31, 2004 milestone. In accordance with the Early Action Protocol 
and agency guidance, all EAC areas must meet all compact milestones, 
including this most recent one, to be eligible for the deferred 
effective date of designation. Consequently, today, these three areas 
are being designated nonattainment, effective June 15, 2004, and are 
subject to full planning requirements of title I, part D of the CAA. 
For the other EAC areas not meeting the 8-hour ozone standard, which we 
determined have complied with the March 2004 milestone, are being 
designated nonattainment with a deferred effective date of September 
30, 2005. By that date, we intend to take notice and comment rulemaking 
and promulgate approval or disapproval of these plans as SIP revisions. 
The local plans that are approved at that time will be eligible for an 
extension of the deferred effective date. If EPA disapproves any local 
plans at that time, the nonattainment designation will become effective 
immediately. Our evaluations of all local plans submitted by March 31, 
2004, are included in the TSD for this rulemaking.
    Table 3 lists the EAC areas and their air quality designation for 
the 8-hour ozone standard by county. The table in Part 81 lists 8-hour 
ozone designations for all areas of the country.

                    Table 3.--Designation of Counties Participating in Early Action Compacts
----------------------------------------------------------------------------------------------------------------
                                Compact area                                                          Effective
          State              (designated area)              County                Designation            date
----------------------------------------------------------------------------------------------------------------
                                                  EPA Region 3
----------------------------------------------------------------------------------------------------------------
VA......................  Northern Shenandoah      Winchester City........  Nonattainment-deferred.    9/30/2005
                           Valley Region
                           (Frederick County,
                           VA), adjacent to
                           Washington, DC-MD-VA.
                                                   Frederick County.......  Nonattainment-deferred.    9/30/2005
VA......................  Roanoke Area (Roanoke,   Roanoke County.........  Nonattainment-deferred.    9/30/2005
                           VA).
                                                   Botetourt County.......  Nonattainment-deferred.    9/30/2005
                                                   Roanoke City...........  Nonattainment-deferred.    9/30/2005
                                                   Salem City.............  Nonattainment-deferred.    9/30/2005
MD......................  Washington County        Washington County......  Nonattainment-deferred.    9/30/2005
                           (Washington County
                           (Hagerstown), MD),
                           adjacent to
                           Washington, DC-MD-VA.
WV......................  The Eastern Pan Handle   Berkeley County........  Nonattainment-deferred.    9/30/2005
                           Region (Berkeley &
                           Jefferson Counties,
                           WV), Martinsburg area.
                                                   Jefferson County.......  Nonattainment-deferred.    9/30/2005
-------------------------
                                                  EPA Region 4
----------------------------------------------------------------------------------------------------------------
NC......................  Mountain Area of         Buncombe County........  Unclassifiable/            6/15/2004
                           Western NC (includes                              Attainment.
                           Asheville).
                                                   Haywood County (part)..  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Henderson County (opt    Unclassifiable/            6/15/2004
                                                    out)\1\.                 Attainment.
                                                   Madison County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Transylvania County      Unclassifiable/            6/15/2004
                                                    (opt out)\1\.            Attainment.
NC......................  Unifour (Hickory-        Catawba County.........  Nonattainment-deferred.    9/30/2005
                           Morganton-Lenoir, NC).
                                                   Alexander County.......  Nonattainment-deferred.    9/30/2005
                                                   Burke County (part)....  Nonattainment-deferred.    9/30/2005
                                                   Caldwell County (part).  Nonattainment-deferred.    9/30/2005
NC......................  Triad (Greensboro-       Surry County...........  Unclassifiable/            6/15/2004
                           Winston-Salem-High                                Attainment.
                           Point, NC).
                                                   Yadkin County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Randolph County........  Nonattainment-deferred.    9/30/2005
                                                   Forsyth County.........  Nonattainment-deferred.    9/30/2005
                                                   Davie County...........  Nonattainment-deferred.    9/30/2005
                                                   Alamance County........  Nonattainment-deferred.    9/30/2005
                                                   Caswell County.........  Nonattainment-deferred.    9/30/2005
                                                   Davidson County........  Nonattainment-deferred.    9/30/2005
                                                   Stokes County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Guilford County........  Nonattainment-deferred.    9/30/2005
                                                   Rockingham County......  Nonattainment-deferred.    9/30/2005
NC......................  Fayetteville             Cumberland County......  Nonattainment-deferred.    9/30/2005
                           (Fayetteville, NC).
SC......................  Appalachian--A           Cherokee County........  Unclassifiable/            6/15/2004
                           (Greenville-                                      Attainment.
                           Spartanburg-Anderson,
                           SC).
                                                   Spartanburg County.....  Nonattainment-deferred.    9/30/2005
                                                   Greenville County......  Nonattainment-deferred.    9/30/2005
                                                   Pickens County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Anderson County........  Nonattainment-deferred.    9/30/2005

[[Page 23867]]


                                                   Oconee County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Catawba--B Part of York  York County (part) \2\.  Nonattainment..........    6/15/2004
                           County, SC is in the
                           Charlotte-Gastonia-
                           Rock Hill, NC-SC
                           nonattainment area.
                                                   Chester County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Lancaster County.......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Union County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Pee Dee--C Florence      Florence County........  Unclassifiable/            6/15/2004
                           area.                                             Attainment.
                                                   Chesterfield County....  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Darlington County......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Dillon County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Marion County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Marlboro County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Waccamaw--D Myrtle       Williamsburg County....  Unclassifiable/            6/15/2004
                           Beach area.                                       Attainment.
                                                   Georgetown County......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Horry County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Santee Lynches--E        Clarendon County.......  Unclassifiable/            6/15/2004
                           Sumter area.                                      Attainment.
                                                   Lee County.............  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Sumter County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Kershaw County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Berkeley-Charleston-     Dorchester County......  Unclassifiable/            6/15/2004
                           Dorchester--F                                     Attainment.
                           Charleston-North
                           Charleston area.
                                                   Berkeley County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Charleston County......  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Low Country--G Beaufort  Beaufort County........  Unclassifiable/            6/15/2004
                           area.                                             Attainment.
                                                   Colleton County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Hampton County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Jasper County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC/GA...................  Lower Savannah-Augusta   Aiken County, SC.......  Unclassifiable/            6/15/2004
                           part of Augusta-Aiken,                            Attainment.
                           GA-SC area.
                                                   Orangeburg County, SC..  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Barnwell County, SC....  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Calhoun County, SC.....  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Allendale County, SC...  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Bamberg County, SC.....  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Richmond County, GA....  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Columbia County, GA....  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Central Midlands--I      Richland County (part).  Nonattainment-deferred.    9/30/2005
                           Columbia area.
                                                   Lexington County (part)  Nonattainment-deferred.    9/30/2005
                                                   Newberry County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Fairfield County.......  Unclassifiable/            6/15/2004
                                                                             Attainment.
SC......................  Upper Savannah           Abbeville County.......  Unclassifiable/            6/15/2004
                           Abbeville-Greenwood                               Attainment.
                           area.
                                                   Edgefield County.......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Laurens County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Saluda County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Greenwood County.......  Unclassifiable/            6/15/2004
                                                                             Attainment.
TN/GA...................  Chattanooga              Hamilton County, TN....  Nonattainment..........    6/15/2004
                           (Chattanooga, TN-GA)
                           County, TN.
                                                   Meigs County, TN.......  Nonattainment..........    6/15/2004
                                                   Marion County, TN......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Walker County, GA......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Catoosa County, GA.....  Nonattainment..........    6/15/2004

TN......................  Knoxville (Knoxville,    Knox County............  Nonattainment..........    6/15/2004
                           TN).
                                                   Anderson County........  Nonattainment..........    6/15/2004
                                                   Union County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Loudon County..........  Nonattainment..........    6/15/2004
                                                   Blount County..........  Nonattainment..........    6/15/2004
                                                   Sevier County..........  Nonattainment..........    6/15/2004
                                                   Jefferson County.......  Nonattainment..........    6/15/2004
TN......................  Nashville (Nashville,    Davidson County........  Nonattainment-deferred.    9/30/2005
                           TN).
                                                   Rutherford County......  Nonattainment-deferred.    9/30/2005
                                                   Williamson County......  Nonattainment-deferred.    9/30/2005
                                                   Wilson County..........  Nonattainment-deferred.    9/30/2005
                                                   Sumner County..........  Nonattainment-deferred.    9/30/2005
                                                   Robertson County.......  Attainment.............    6/15/2004
                                                   Cheatham County........  Attainment.............    6/15/2004
                                                   Dickson County.........  Attainment.............    6/15/2004
TN/AR/MS................  Memphis, (Memphis, TN-   Shelby County, TN......  Nonattainment..........    6/15/2004
                           AR-MS).
                                                   Tipton County, TN......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Fayette County, TN.....  Unclassifiable/            6/15/2004
                                                                             Attainment.

[[Page 23868]]


                                                   DeSoto County, MS......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Crittenden County, AR..  Nonattainment..........    6/15/2004
TN......................  Haywood County adjacent  Haywood County.........  Unclassifiable/            6/15/2004
                           to Memphis & Jackson                              Attainment.
                           areas.
TN......................  Putnam County central    Putnam County..........  Unclassifiable/            6/15/2004
                           TN, between Nashville                             Attainment.
                           and Knoxville.
TN......................  Johnson City-Kingsport-  Sullivan Co, TN........  Nonattainment-deferred.    9/30/2005
                           Bristol Area (TN
                           portion only).
                                                   Hawkins County, TN.....  Nonattainment-deferred.    9/30/2005
                                                   Washington Co, TN......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Unicoi County, TN......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Carter County, TN......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Johnson County, TN.....  Unclassifiable/            6/15/2004
                                                                             Attainment.
-------------------------
                                                  EPA Region 6
----------------------------------------------------------------------------------------------------------------
TX......................  Austin/San Marcos......  Travis County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Williamson County......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Hays County............  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Bastrop County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Caldwell County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
TX......................  Northeast Texas          Gregg County...........  Unclassifiable/            6/15/2004
                           Longview-Marshall-                                Attainment.
                           Tyler area.
                                                   Harrison County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Rusk County............  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Smith County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Upshur County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
TX......................  San Antonio............  Bexar County...........  Nonattainment-deferred.    9/30/2005
                                                   Wilson County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Comal County...........  Nonattainment-deferred.    9/30/2005
                                                   Guadalupe County.......  Nonattainment-deferred.    9/30/2005
OK......................  Oklahoma City..........  Canadian County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Cleveland County.......  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Logan County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   McClain County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Oklahoma County........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Pottawatomie Co........  Unclassifiable/            6/15/2004
                                                                             Attainment.
OK......................  Tulsa..................  Tulsa County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Creek County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Osage County...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Rogers County..........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Wagoner County.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
LA......................  Shreveport-Bossier City  Bossier Parish.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Caddo Parish...........  Unclassifiable/            6/15/2004
                                                                             Attainment.
                                                   Webster Parish.........  Unclassifiable/            6/15/2004
                                                                             Attainment.
NM......................  San Juan County          San Juan County........  Unclassifiable/            6/15/2004
                           Farmington area.                                  Attainment.
-------------------------
                                                  EPA Region 8
----------------------------------------------------------------------------------------------------------------
CO......................  (Denver-Boulder-Greeley- Denver County..........  Nonattainment-deferred.    9/30/2005
                           Ft. Collins-Love, CO).
                                                   Boulder County           Nonattainment-deferred.    9/30/2005
                                                    (includes part of
                                                    Rocky Mtn National
                                                    Park).
                                                   Jefferson County.......  Nonattainment-deferred.    9/30/2005
                                                   Douglas County.........  Nonattainment-referred.    9/30/2005
                                                   Broomfield.............  Nonattainment-deferred.    9/30/2005
                                                   Adams County...........  Nonattainment-deferred.    9/30/2005
                                                   Arapahoe County........  Nonattainment-deferred.    9/30/2005
                                                   Larimer County (part)..  Nonattainment-deferred.    9/30/2005
                                                   Weld County (part).....  Nonattainment-deferred.   9/30/2005
----------------------------------------------------------------------------------------------------------------
\1\ Henderson and Transylvania Counties opted out of the Mountain Area of Western NC compact and are no longer
  participating.
\2\ The part of York County, SC that includes the portion within the Metropolitan Planning Organization (MPO) is
  designated nonattainment and is part of the Charlotte-Gastonia-Rock Hill, NC-SC nonattainment area, effective
  June 15, 2004. The remaining part of York County, SC is designated unclassifiable/attainment.


    Note: Ozone designations for EAC counties are either 
``Unclassifiable/Attainment'' (effective June 15, 2004); 
``Nonattainment'' (effective June 15, 2004, if EAC area fails to 
meet the March 31, 2004 milestone); or ``Nonattainment'' (effective 
date deferred until September 30, 2005). Name of designated 8-hour 
ozone nonattainment area is in parentheses.

C. What Is Today's Final Action for Compact Areas?

    Today, we are issuing the first of three deferrals of the effective 
date of the nonattainment designation for any

[[Page 23869]]

compact area that does not meet the 8-hour ozone NAAQS and would 
otherwise be designated nonattainment, but has met all compact 
milestones through the March 31, 2004 submission.\11\ We are deferring 
until September 30, 2005, the effective date of the 8-hour ozone 
nonattainment designation for these compact area counties which are 
listed in 40 CFR part 81 (included at the end of this document).
---------------------------------------------------------------------------

    \11\ In a few instances, some of the counties participating in 
EACs were determined not to be part of the nonattainment area and 
were designated attainment. In such cases, the effective date of the 
attainment designation is not deferred.
---------------------------------------------------------------------------

    As described earlier in this notice, we analyzed information 
provided by the States to determine whether a county should be included 
as part of a designated nonattainment area. This information included 
such factors as population density, traffic congestion, meteorological 
conditions, and pollution transport. We analyzed the factors for each 
county participating in an EAC to determine whether a county should be 
included in the nonattainment area. Therefore, some portions of compact 
areas are designated unclassifiable/attainment and some are designated 
nonattainment.
    The EAC areas that EPA is designating in today's rule as attainment 
for the 8-hour ozone NAAQS have agreed to continue participating in 
their compacts and meet their obligations on a voluntary basis. 
However, two of the five counties in the compact for the Mountain Area 
of Western North Carolina have decided to withdraw because the area is 
monitoring attainment. The remaining three counties are continuing to 
participate in the agreement.

D. What Is EPA's Schedule for Taking Further Action To Continue To 
Defer the Effective Date of Nonattainment Designation for Compact 
Areas?

    As discussed in the proposed rule, prior to the time the first 
deferral expires, we intend to take further action to propose and, as 
appropriate, promulgate a second deferred effective date of the 
nonattainment designation for those areas that continue to fulfill all 
compact obligations. Prior to the time the second deferral expires, we 
would propose and, as appropriate, promulgate a third deferral for 
those areas that continue to meet all compact milestones. Before the 
third deferral expires shortly after December 31, 2007, we intend to 
determine whether the compact areas have attained the 8-hour ozone 
NAAQS and have met all compact milestones. By April 2008, we will issue 
our determination. If the area has not attained the standard, the 
nonattainment designation will take effect. If it has attained the 
standard, EPA will issue an attainment designation for the area. Any 
compact area that has not attained the NAAQS and has an effective 
nonattainment designation will be subject to full planning requirements 
of title I, part D of the CAA, and the area will be required to submit 
a revised attainment demonstration SIP within 1 year of the effective 
date of the designation.

E. What Action Will EPA Take if a Compact Area Does Not Meet a 
Milestone?

    As described in the December 16, 2003 proposed rule (68 FR 70111), 
the compact program was based on a number of principles as described in 
the EAC protocol.\12\ One of these principles is to provide safeguards 
to return areas to traditional SIP requirements for nonattainment areas 
should an area fail to comply with the terms of the compact. For 
example, if a compact area with a deferred effective date fails to meet 
one of the milestones, we would take steps immediately to remove the 
deferred effective date of its nonattainment designation.
---------------------------------------------------------------------------

    \12\ ``Protocol for Early Action Compacts Designed to Achieve 
and Maintain the 8-hour Ozone Standard'', Texas Commission on 
Environmental Quality (TCEQ), March 2002 (Protocol). The EPA 
endorsed the Protocol in a letter dated June 19, 2002, from Gregg 
Cooke, Administrator, EPA Region VI, to Robert Huston, TCEQ. The 
Prtocol was revised December 11, 2002 based on comments from EPA.
---------------------------------------------------------------------------

    Today, we are promulgating regulatory text, which specifies the 
milestones that EAC areas are required to complete to be eligible for 
the deferred effective date, as well as certain actions that the 
Administrator will take when EAC areas either comply, or do not comply, 
with the terms of the compact.

F. What Comments Did EPA Receive on the December 16, 2003 Proposal and 
on the June 2, 2003 Proposed Implementation Rule Specific to Compacts?

    We received a number of comments on the proposed rule for compact 
areas. We have responded to the significant comments in this section. 
Our responses address various aspects of the compact program: (1) Legal 
concerns; (2) the designations process for EAC areas, including the 
anticipated schedule for removal of the deferred effective date of the 
nonattainment designation for any compact area that fails to meet a 
milestone; (3) concerns about the compact process; (4) transportation/
fuels-related comments; and (5) need for regulatory language. Other 
compact-related comments not addressed in this document are included in 
the RTC document, which is located in the docket for this rulemaking 
(OAR-2003-0090) and on EPA's technical Web site for early action 
compacts at: http://www.epa.gov/ttn/naaqs/ozone/eac/#RMNotices.

    In addition, we received a number of EAC-related comments on the 
June 2, 2003 proposal for implementing the 8-hour ozone standard. We 
have addressed these comments in the same EAC RTC document, which may 
be found at the location noted above.
1. Support for and Opposition to Early Action Compacts
    Comment: Many commenters expressed support for the compact process, 
the goal of clean air sooner, the incentives and flexibility the 
program provides for encouraging early reductions of ozone-forming 
pollution, and the deferred effective date of nonattainment 
designation. However, a number of commenters opposed the EAC program. 
Several of these commenters expressed concern about the legality of the 
program and primarily about the deferral of the effective date of the 
nonattainment designation for these areas. Although all of these 
commenters were supportive of the goal of addressing proactively the 
public health concerns associated with ozone pollution, the commenters 
state that the EAC program is not authorized by the CAA. All of these 
commenters indicated that EPA lacks authority under the CAA to defer 
the effective date of a nonattainment designation. In addition, these 
commenters state that EPA lacks authority to enter into EACs areas and 
lacks authority to allow areas to be relieved of obligations under 
title I, part D of the CAA while these areas are violating the 8-hour 
ozone standard or are designated nonattainment for that standard.
    Response: We continue to believe that the compact program, as 
designed, gives local areas the flexibility to develop their own 
approach to meeting the 8-hour ozone standard, provided the 
participating communities are serious in their commitment to control 
emissions from local sources earlier than the CAA would otherwise 
require. By involving diverse stakeholders, including representatives 
from industry, local and State governments, and local environmental and 
citizens' groups, a number of communities are discussing for the first 
time the need for regional cooperation in solving air quality problems 
that affect the health and

[[Page 23870]]

welfare of its citizens. People living in these areas that realize 
reductions in pollution levels sooner will enjoy the health benefits of 
cleaner air sooner than might otherwise occur. In today's rule we are 
codifying the specific requirements in part 81 of the CFR to clarify 
what is required of compact areas to be eligible for deferral of the 
effective date of their nonattainment designation and what actions EPA 
intends to take in response to areas that meet the milestones and areas 
that do not meet the milestones.
    As discussed earlier in this notice, EPA and nine environmental 
organizations entered into a Consent Decree on March 13, 2003, which 
requires EPA to issue the designations by April 15, 2004. Related to 
that agreement, we have been discussing with these parties the actions 
that compact areas have committed to take to implement measures on an 
accelerated schedule to attain the 8-hour ozone standard by December 
31, 2007. On April 5, 2004, these environmental organizations and EPA 
entered into a joint stipulation to modify the deadline in the consent 
decree. The parties agreed to extend the deadline for the effective 
date of designations with respect to each area which EPA determines 
meets the requirements of the Protocol and EPA guidance.
    Comment: One commenter expressed concern about the health impact 
and the effect on air quality of delaying the effectiveness of 
nonattainment.
    Response: The compact areas that are violating the standard are 
designated nonattainment (with deferred effective date), which means 
EPA is acknowledging the air quality problem of the area and the health 
impact on the community. However, these areas are committed to early 
reductions and early implementation of control measures that make sense 
for the local area. The Agency believes this proactive approach 
involving multiple, diverse stakeholders is beneficial to the citizens 
of the area by raising awareness of the need to adopt and implement 
measures that will reduce emissions and improve air quality.
2. Designations Process for Compact Areas
    Comment: Several commenters expressed concern about EPA's process 
for designating areas that are participating in a compact. In addition, 
a number of commenters also were confused about the following statement 
in the June 2, 2003 proposed 8-hour implementation rule: ``States are 
advised that if EPA determines that any portion of a compact area 
should become part of an 8-hour ozone nonattainment area, that portion 
would no longer be eligible for participation in the Early Action 
Compact, and the effective date of the nonattainment designation would 
not be deferred'' (68 FR 32860, June 2, 2003). Some of these commenters 
noted that the language, as written, could be interpreted to mean if 
any EAC area becomes designated as nonattainment for the 8-hour ozone 
standard, the EAC is no longer valid. A number of commenters submitted 
recommendations to EPA for either including or excluding certain 
participating EAC counties from the designated area.
    Response: In determining the boundary for the designated area, we 
applied the same procedure as we did for areas that are not 
participating in an EAC, as described elsewhere in this document. The 
commenters are referring to language in section VIII.A.3 of the June 2, 
2003 proposed rule for implementing the 8-hour ozone standard at 68 FR 
32860. At the time we entered into compact agreements with the local 
communities by December 2002, and at the time we proposed the 8-hour 
implementation rule, we had not made a decision as to which 
participating counties would be included in a nonattainment area. 
Therefore, at that time we were not able to determine the appropriate 
boundary for the area that would be eligible for a deferral of the 
effective date of nonattainment designation. We agree with the 
commenters that the preamble language in the proposed 8-hour 
implementation rule is not clear. The language was intended to be 
applied to a portion of a compact area that is adjacent to or part of 
an area that is violating the 1-hour ozone standard (or otherwise did 
not qualify for participation in a compact), and subsequently is 
designated nonattainment for the 8-hour ozone standard.
    An example is the Catawba EAC, which includes York County, SC, as 
well as Chester, Lancaster and Union Counties, SC. York County, which 
has one monitor that is attaining the 8-hour standard, is in the 
Charlotte-Gastonia-Rock Hill MSA. We have examined all applicable air 
quality-related factors in our guidance and concluded that part of the 
county is contributing to a violation in the MSA. Based on our 
analysis, therefore, we are designating this county as a partial county 
nonattainment area, in the 8-hour ozone nonattainment area for 
Charlotte-Gastonia-Rock Hill. As we noted earlier, nonattainment is 
defined in the CAA as an area that is violating the NAAQS or is 
contributing to a nearby area that is violating the NAAQS. York County 
ranks high in population growth (25 percent) and the predicted growth 
from 2000 to 2010 is 12 percent, approximately 20,000 additional 
population. York County ranks second and third for VOC and 
NOX emissions in the CMSA, and 94 percent of its population 
of workers drives to work within the CMSA. York County may continue in 
the Catawba compact along with the other three counties as a voluntary 
participant; however, the nonattainment portion of York County is not 
eligible for a deferred effective date. Moreover, because the other 
counties in the Charlotte-Gastonia-Rock Hill nonattainment area are not 
participating in the EAC process, the Charlotte area, which includes 
York County, is not eligible for a deferred effective date. In no way 
does EPA intend for the Catawba compact to be revoked. For EPA's 
responses to comments regarding designation and boundary issues for 
specific EAC areas, see the RTC document and the TSD for this 
rulemaking.
    Comment: A number of commenters recommended that EPA clarify 
exactly when a compact area would be designated nonattainment if it 
fails to meet a milestone.
    Response: Today, we have determined that a number of compact areas 
have met the March 31, 2004 milestone (plan of local measures); 
therefore, the effective date of nonattainment designation for these 
areas is deferred until September 30, 2005. In Table 3 we have listed 
the air quality designations and the effective dates for all counties 
participating in EACs. In addition, today, we have determined that some 
compact areas have not met the March 31, 2004 milestone. A discussion 
of our assessment of these local plans is provided elsewhere in this 
document. We are designating these areas as nonattainment, which is 
effective June 15, 2004.
    In another section of this document, we are promulgating regulatory 
text that clarifies the actions we would take in the event a compact 
area does not meet subsequent milestones. We have summarized those 
actions below.
    If an EAC area fails to meet a milestone, in accordance with our 
guidance, we intend to take action as soon as practicable to remove the 
deferral, which would trigger the effective date of the nonattainment 
designation. If a State fails to submit a SIP revision for a compact 
area, consisting of the adopted local plan and the demonstration of 
attainment by December 31, 2004, we intend to take

[[Page 23871]]

action as soon as practicable (e.g., January 2005) to remove the 
deferral for that area, which would trigger the effective date of the 
nonattainment designation and, thus, also the classification, rather 
than letting the designation take effect automatically on September 30, 
2005. The State would be required to submit a revised attainment 
demonstration within 1 year of the effective date of the nonattainment 
designation.
    Assuming EPA takes rulemaking action to continue to defer the 
effective date of the nonattainment designation for compact areas, if a 
compact area fails the December 31, 2005 milestone (complete 
implementation of local measures), we would take action as soon as 
practicable (e.g., by March 31, 2006) to remove the deferral which 
would trigger the effective date of their nonattainment designation 
and, thus, also their classification, rather than letting the 
designation take effect automatically at the next deferred date. The 
State would be required to submit a revised attainment demonstration 
within 1 year of the effective date of the nonattainment designation.
    Similarly, for any area that does not meet the June 30, 2006 
milestone (assessment of air quality improvement and emissions 
reductions from implementation of measures), we would take action as 
soon as practicable (e.g., by September 30, 2006) to remove the 
deferral which would trigger the effective date of their nonattainment 
designation and, thus, also their classification. If the area, based on 
the most recent 3 years of quality-assured monitoring data, is not 
attaining the 8-hour ozone standard by December 31, 2007, we would take 
action by April 15, 2008, to remove the deferral which would trigger 
the effective date of their nonattainment designation and, where 
applicable, classification.
    Comment: Some commenters strongly recommended that if the compact 
measures fail to be implemented or fail to achieve targeted emissions 
reductions, the compact area should immediately be designated as 
nonattainment with a subpart 2 classification and be required to comply 
with all applicable obligations within the original timeframe.
    Response: In another section of this document, we are promulgating 
regulatory text that clarifies the actions we intend to take in the 
event a compact area does not meet subsequent milestones. Compact areas 
are designated as nonattainment and the effective date of that 
designation is deferred. The deferral for any areas that do not meet or 
fail any milestone will be removed as soon as practicable which would 
trigger the effective date of their nonattainment designation and, 
thus, also the classification consistent with the final 8-hour 
implementation rule. If called for by the area's classification, these 
areas will be required to submit a revised attainment demonstration 
within 1 year of the effective date of designation and will be subject 
to all applicable requirements of title I, part D of the CAA, to be 
implemented within a time frame consistent with the area's 
classification.
    Comment: One commenter believes the second rolling deferred 
effective date is not necessary and should be eliminated. According to 
the commenter, there should be only two separate deferral dates 
promulgated for nonattainment designations for areas where controls 
would be implemented by September 30, 2005, and no other milestones 
(the June 2006 progress assessment) would be needed between 
implementation of controls and attainment.
    Response: The June 2006 milestone, which is one of the compact 
requirements that would be subject to the second deferred effective 
date (December 31, 2006), provides that States report progress of EAC 
areas in implementing adopted measures and assess improvements in air 
quality and reductions in NOX and VOC emissions. The second 
deferral is a checkpoint that is needed to ensure that areas are making 
progress toward attainment. This milestone can be one of the progress 
reports, but it is considered a milestone because EPA believes it is 
important to have a checkpoint between implementation of measures by 
December 2005 and attainment in December 2007.
    Comment: A number of commenters were concerned about EPA's 
statement in the proposal that the Agency would commit to not 
redesignate areas that subsequently violate the 8-hour ozone NAAQS to 
nonattainment, provided the area continues to meet all compact 
milestones and requirements.
    Response: In the proposed rule at FR 68 70113, EPA did state its 
intention to commit to not redesignate EAC areas to nonattainment that 
are designated attainment in April 2004. We realize that our shorthand 
phrasing did not properly convey our intent. To clarify, in deciding 
whether to redesignate an EAC area to nonattainment, EPA will consider 
the factors in section 107(d)(3)(a) of the CAA. If an EAC area 
continues to meet its compact milestones, EPA believes those factors 
should weigh in favor of not redesignating the area to nonattainment 
immediately, but rather waiting to see if the programs the area puts in 
place will bring it back into attainment.
3. Transportation/Fuels-Related Comments
    Comment: The EPA received a number of comments expressing concern 
that lack of transportation conformity in EAC areas will negatively 
impact air quality in these areas. In addition, several commented that 
since EAC areas are not eligible to receive Congestion Mitigation and 
Air Quality Improvement Program (CMAQ) funding, projects to reduce 
congestion and, thereby, reduce mobile source emissions, would not 
occur. Another commenter suggested that EPA work with the U.S. 
Department of Transportation (DOT) to revise the TEA-21 so that EAC 
areas are eligible to receive CMAQ funding.
    Response: The commenters are correct that EAC areas violating the 
8-hour ozone standard, which would otherwise have a nonattainment date 
effective June 1, 2004, will not be subject to transportation or 
general conformity requirements for the 8-hour standard in 2005. The 
EAC protocol does not require EAC areas to meet CAA transportation 
conformity requirements, since, as noted, these requirements apply one 
year after the 8-hour nonattainment designation becomes effective.
    However, continuing to defer 8-hour conformity requirements is 
contingent upon the area's ability to demonstrate adherence to the 
compact. Consistent with 40 CFR 93.102(d) and CAA section 176(c)(6), 
conformity for the 8-hour ozone standard will not apply, provided the 
area meets all of the terms and milestones of its compact between 2004 
and 2007. At any point, if a milestone is missed, the nonattainment 
designation becomes effective and conformity for the 8-hour standard 
will be required one year after the effective date of EPA's 
nonattainment designation.
    The EAC areas that are maintenance areas for the 1-hour standard 
will be subject to conformity until 1 year after the effective date of 
designation of the 8-hour standard. At that time the 1-hour standard 
will be revoked. Thus, for an EAC area that meets all of its milestones 
and whose deferral is lifted in April 2008, the 8-hour attainment 
designation would become effective in April 2008, and the 1-hour 
standard would be revoked 1 year later or, April 2009. For an EAC area 
that is also a 1-hour maintenance area under Sec.  175A, the area would 
be subject to both its 1-hour maintenance plan and 1-hour

[[Page 23872]]

transportation conformity until April 2009.
    Finally, EPA would like to clarify that transportation conformity 
is not a control measure similar to voluntary control programs funded 
through CMAQ dollars. Rather, it establishes a process for state and 
local governments to consider the broader emissions impacts of planned 
highway and transit activities to ensure that Federal funding and 
approval goes to those transportation activities that are consistent 
with air quality goals.
    Comment: One commenter stated that they were reluctant to enter 
into a compact agreement knowing that they would not receive CMAQ 
funds. Several commenters also suggested that EPA provide EAC areas 
with tangible financial incentives to proactively improve their air 
quality, as well as work with the DOT to revise the Transportation 
Efficiency Act (TEA) so that it allows EAC areas to receive CMAQ 
funding.
    Response: The commenters are correct that EAC areas are not 
eligible to receive CMAQ funding under current law. The CMAQ 
apportionment formula in TEA-21 contains no provisions to allow 
inclusion of EAC areas into the formula and thus into the authorized 
CMAQ levels for each state. Thus, until and unless the 8-hour ozone 
nonattainment designation is effective, areas cannot be eligible for 
CMAQ funding, absent a change in the law.
    The primary incentive for many areas entering into an EAC is 
deferral of a nonattainment designation and major requirements, such as 
transportation conformity and NSR. It is true that compact areas are 
subject to SIP requirements, but not to other such major requirements. 
The EPA's interpretation is that Congress intended to link the 
obligations that come with a nonattainment designation to CMAQ funding. 
The purpose of the CMAQ program is to help those areas burdened with 
the significant obligations of the CAA attain the NAAQS as 
expeditiously as possible. Under the current CMAQ program, an EAC area 
would not be able to receive CMAQ funds because it would not be 
designated as a nonattainment or maintenance area.
    Since TEA-21 has not been reauthorized as of this writing, EPA 
cannot postulate on whether it will contain a new provision allowing 
compact areas to receive CMAQ funding. The reauthorization bills passed 
by the Senate and House contain no such provision.
    Comment: A number of EAC areas are considering the addition of 
cetane additives to fuel for increased fuel efficiency. Several 
commenters expressed concern about the focus on diesel cetane. They 
have expressed these concerns in detail in earlier correspondence with 
both the Agency and the Ozone Transport Commission.
    Response: Clean fuel programs have been an integral part of the 
nation's strategy to reduce smog-forming emissions and other harmful 
pollutants, including air toxics from our nation's air. For example, 
the Federal reformulated gasoline program (RFG) and lower volatility 
fuels have been cost effective and have provided significant and 
immediate reductions in air pollution levels throughout the nation.
    The CAA also allows States, under specified circumstances, to 
design and implement their own clean fuel programs. Several EAC areas 
are considering such programs including cetane improvement programs. 
Cetane improvement programs have the potential to contribute emission 
reductions needed for progress toward attainment and maintenance of the 
NAAQS. (See EPA Technical Report entitled, ``The Effect of Cetane 
Number Increase Due to Additives on NOX Emissions from 
Heavy-Duty Highway Engines'', EPA-420-R-03-002, February 2003. This 
document can be downloaded from: http://www.epa.gov/otaq/models/analysis.htm.
 The EPA is now in the process of developing guidance to 

help States properly quantify the benefits of cetane improvement 
programs for their areas.
    In selecting possible clean fuel programs and other potential ozone 
control measures, states will engage in a careful and extensive 
process. It is during this process that States should properly consider 
and evaluate their air quality needs, the air quality benefits of 
specific measures, costs, ease of implementation, enforceability and 
other issues and factors like those the commenter raises with respect 
to cetane programs. In addition, the States must involve the public in 
the selection of control measures, through hearings and opportunities 
to comment.
4. Regulatory Text
    Comment: Several commenters strongly recommended that EPA include 
regulatory text in the final rule. One commenter, in particular, 
suggested that EPA do the following:
    1. Codify the rolling deferred effective date so that it is 
enforceable and that areas are held accountable if they miss a 
milestone;
    2. include in the final rule all deadlines and milestones specified 
in our EAC guidance;
    3. codify the September 30, 2005 deadline for EPA action to 
approve/disapprove SIP submittals;
    4. codify the December 31, 2008 deadline for States to submit a 
revised attainment demonstration SIP for EAC areas that fail to attain 
by December 31, 2007.
    Response: Based on the recommendations of several commenters, we 
have added regulatory text to the final rule. This language codifies 
the EAC program into part 81 of the CFR. In addition, the regulatory 
text clarifies what is required of compact areas and the consequences 
to these areas if they do not meet a milestone.

X. How Do Designations Affect Indian Country?

    All counties, partial counties or Air Quality Control Regions 
listed in the table at the end of this document are designated as 
indicated, and include Indian country geographically located within 
such areas, except as otherwise indicated.
    As mentioned earlier in this document, EPA's guidance for 
determining nonattainment area boundaries presumes that the larger of 
the 1-hour nonattainment area, CMSA or MSA with a violating monitor 
forms the bounds of the nonattainment area but that the size of the 
area can be larger or smaller depending on contribution to the 
violation from nearby areas and other air quality-related technical 
factors. In general, and consistent with relevant air quality 
information, EPA intends to include Indian country encompassed within 
these areas as within the boundaries of the area for designation 
purposes to best protect public health and welfare. The EPA anticipates 
that in most cases relevant air quality information will indicate that 
areas of Indian country located within CMSAs or MSAs should have the 
same designation as the surrounding area. However, based on the factors 
outlined in our guidance, there may be instances where a different 
designation is appropriate.
    A state recommendation for a designation of an area that surrounds 
Indian country does not dictate the designation for Indian county. 
However, the conditions that support a State's designation 
recommendation, such as air quality data and the location of sources, 
may indicate the likelihood that similar conditions exist for the 
Indian county located in that area. States generally have neither the 
responsibility nor the authority for planning and regulatory activities 
under the CAA in Indian country.

[[Page 23873]]

XI. Statutory and Executive Order Reviews

    Upon promulgation of a new or revised NAAQS, the CAA requires EPA 
to designate areas as attaining or not attaining that NAAQS. The CAA 
then specifies requirements for areas based on whether such areas are 
attaining or not attaining the NAAQS. In this final rule, we assign 
designations to areas as required. We also indicate the classifications 
that apply as a matter of law for areas designated nonattainment. This 
rule also provides flexibility for areas that have entered into a 
compact and take early action to achieve emissions reductions necessary 
to attain the 8-hour ozone standard. This action defers the effective 
date of the nonattainment designation for these areas and establishes 
regulations governing future actions with respect to these areas.

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), the 
Agency must determine whether the regulatory action is ``significant'' 
and, therefore, subject to OMB review and the requirements of the 
Executive Order. The Order defines ``significant regulatory action'' as 
one that is likely to result in a rule that may:
    (1) Have an annual effect on the economy of $100 million or more or 
adversely affect in a material way the economy, a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or Tribal governments or 
communities;
    (2) create a serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
the Executive Order.
    Pursuant to the terms of Executive Order 12866, it has been 
determined that this rule is not a ``significant regulatory action'' 
because none of the above factors applies. As such, this final rule was 
not formally submitted to OMB for review.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under 
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
This rule responds to the requirement to promulgate air quality 
designations after promulgation of a NAAQS. This requirement is 
prescribed in the CAA section 107 of Title 1. The present final rule 
does not establish any new information collection burden apart from 
that required by law. Burden means the total time, effort, or financial 
resources expended by persons to generate, maintain, retain, or 
disclose or provide information to or for a Federal agency. This 
includes the time needed to review instructions; develop, acquire, 
install, and utilize technology and systems for the purposes of 
collecting, validating, and verifying information, processing and 
maintaining information, and disclosing and providing information; 
adjust the existing ways to comply with any previously applicable 
instructions and requirements; train personnel to be able to respond to 
a collection of information; search data sources; complete and review 
the collection of information; and transmit or otherwise disclose the 
information. An agency may not conduct or sponsor, and a person is not 
required to respond to a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for EPA's 
regulations in 40 CFR are listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) generally requires an agency 
to prepare a regulatory flexibility analysis of any rule subject to 
notice and comment rulemaking requirements under the Administrative 
Procedures Act or any other statute unless the agency certifies the 
rule will not have a significant economic impact on a substantial 
number of small entities. Small entities include small businesses, 
small organizations, and small governmental jurisdictions.
    For purposes of assessing the impacts of today's final rule on 
small entities, small entity is defined as: (1) A small business that 
is a small industrial entity as defined in the U.S. Small Business 
Administration (SBA) size standards. (See 13 CFR 121.); (2) a small 
governmental jurisdiction that is a government of a city, county, town, 
school district or special district with a population of less than 
50,000; and (3) a small organization that is any not-for-profit 
enterprise which is independently owned and operated and is not 
dominant in its field.
    The portion of this rule designating areas for the 8-hour ozone 
NAAQS indicating the classification for each subpart 2 area designated 
nonattainment, is not subject to the RFA because it was not subject to 
notice and comment rulemaking requirements. See CAA section 
107(d)(2)(B). This rule also defers the effective date of the 
nonattainment designation for areas that implement control measures and 
achieve emissions reductions earlier than otherwise required by the CAA 
in order to attain the 8-hour ozone NAAQS. The deferral of the 
effective date will not impose any requirements on small entities. 
States and local areas that have entered into compacts with EPA have 
the flexibility to decide which sources to regulate in their 
communities.
    After considering the economic impacts of today's final rule on 
small entities, I certify that this rule will not have a significant 
economic impact on a substantial number of small entities.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and Tribal 
governments and the private sector. Under section 202 of the UMRA, EPA 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local, and Tribal governments, in 
the aggregate, or to the privat