18 July 1997
Source: http://www.access.gpo.gov/su_docs/aces/aces140.html

    [Federal Register: July 18, 1997 (Volume 62, Number 138)]
    [Presidential Documents]
    [Page 38421-38432]
    From the Federal Register Online via GPO Access [wais.access.gpo.gov]
    [DOCID:fr18jy97-130]

                            Presidential Documents

    ___________________________________________________________________

    Title 3--
    The President

    [[Page 38421]]

                    Memorandum of July 16, 1997

                    Implementation of Revised Air Quality Standards
                    for Ozone and Particulate Matter

                    Memorandum for the Administrator of the Environmental
                    Protection Agency

                    I have approved the issuance of new air quality
                    standards to provide important new health protection
                    for all Americans by further controlling pollution from
                    ozone and particulate matter. These new standards
                    promise to improve the lives of millions of Americans
                    in coming years.

                    Consistent with my Administration's approach to
                    regulatory decision making, I also want to ensure that
                    these new standards are implemented in a common sense,
                    cost-effective manner. It is critically important that
                    these standards be implemented in the most flexible,
                    reasonable, and least burdensome manner, and that the
                    Federal Government work with State and local
                    governments and other interested parties to this end.

                    I have determined that there are certain essential
                    elements of an approach to implementation that will
                    accomplish these goals. I direct you to use the
                    following elements when implementing the new air
                    quality standards:

                    1. Implementation of the air quality standards is to be
                    carried out to maximize common sense, flexibility, and
                    cost effectiveness;

                    2. Implementation shall ensure that the Nation
                    continues its progress toward cleaner air by respecting
                    the agreements already made by States, communities, and
                    businesses to clean up the air, and by avoiding
                    additional burdens with respect to the beneficial
                    measures already underway in many areas. Implementation
                    also shall be structured to reward State and local
                    governments that take early action to provide clean air
                    to their residents; and to respond to the fact that
                    pollution travels hundreds of miles and crosses many
                    State lines;

                    3. Implementation shall ensure that the Environmental
                    Protection Agency (``Agency'') completes its next
                    periodic review of particulate matter, including review
                    by the Clean Air Scientific Advisory Committee, within
                    5 years of issuance of the new standards, as
                    contemplated by the Clean Air Act. Thus, by July 2002,
                    the Agency will have determined, based on data
                    available from its review, whether to revise or
                    maintain the standards. This determination will have
                    been made before any areas have been designated as
                    ``nonattainment'' under the PM<INF>2.5</INF> standards
                    and before imposition of any new controls related to
                    the PM<INF>2.5</INF> standards; and

                    4. Implementation is to be accomplished with the
                    minimum amount of paperwork and shall seek to reduce
                    current paperwork requirements wherever possible.

    [[Page 38422]]

                    Excellent preliminary work on the strategy for carrying
                    out these implementation principles has been
                    accomplished by an interagency Administration group and
                    I commend that group for these important efforts. The
                    group's work is set out in the attached plan, which is
                    hereby incorporated by reference.

                    In order for the implementation of these standards to
                    proceed in accordance with the goals I have
                    established, I hereby direct you, in consultation with
                    all affected agencies and parties, to undertake the
                    steps appropriate under law to carry out the attached
                    plan and to complete all necessary guidance and
                    rulemaking no later than December 31, 1998.

                    This memorandum is for the purposes of internal
                    Administration management only, and is not judicially
                    reviewable.

                    You are authorized and directed to publish this
                    determination and plan in the Federal Register.

                        (Presidential Sig.)<Clinton1><Clinton2>

                    THE WHITE HOUSE

                        Washington, July 16, 1997.

    [[Page 38423]]

                    Implementation Plan for Revised Air Quality Standards

                    An interagency Administration group has discussed and
                    evaluated approaches for the common sense, flexible,
                    and cost effective implementation of the revised
                    National Ambient Air Quality Standards (NAAQS) for
                    ozone and particulate matter (PM). This document
                    reflects the preliminary work by that group on a
                    strategy for implementing these health-based standards
                    consistent with the principles discussed by President
                    Clinton in his announcement of the standards. The
                    Environmental Protection Agency (EPA) will continue to
                    work with other Federal agencies, State and local
                    governments, small businesses, industry, and
                    environmental and public health groups to fully develop
                    and implement this strategy.

                    This implementation plan provides a road map for areas
                    to attain the standards and protect public health
                    without sacrificing economic growth. The goals of the
                    plan are to: 1) maintain the progress currently being
                    made toward cleaner air and respect the agreements and
                    technological progress already made by communities and
                    businesses to pursue clean air; 2) reward State and
                    local governments and businesses that take early action
                    to reduce air pollution levels through cost-effective
                    approaches; 3) respond to the fact that pollution can
                    travel hundreds of miles and cross many State lines; 4)
                    work with the States to develop control programs which
                    employ regulatory flexibility to minimize economic
                    impacts on businesses large and small to the greatest
                    possible degree consistent with public health
                    protection; 5) minimize planning and regulatory burdens
                    for State and local governments and businesses where
                    air quality problems are regional, not local, in
                    nature; 6) ensure that air quality planning and related
                    Federal, State, and local planning are coordinated; and
                    7) recognize the substantial lead time necessary for
                    State and local governments and businesses to plan for
                    and meet standards for a new indicator of PM.

                    The Clean Air Act (CAA) requires the EPA to set air
                    quality standards to protect the public health and the
                    environment without consideration of costs. The 1997
                    revisions to the NAAQS for ground level ozone and PM
                    fulfill this requirement. However, the Act recognizes
                    that the EPA and the States must work together to
                    develop cost-effective, flexible, and fair
                    implementation plans if the standards are to be met as
                    expeditiously as practicable.

                    There are a number of important linkages between these
                    pollutants. There is also a linkage between these
                    pollutants and their precursors and regional haze
                    problems. Promulgation of the two standards
                    simultaneously provides a more complete description of
                    the health and environmental effects associated with
                    two of the major components of air pollution. It can
                    help States and local areas better manage their air
                    quality by focusing on the common precursors of both
                    pollutants and provides the opportunity to work jointly
                    with industry to address common sources of multiple air
                    pollutants in a comprehensive manner. This will lead to
                    more effective and efficient protection of public
                    health and the environment.

                    In addition to the interagency process, the EPA has
                    been soliciting other input. While the review of the
                    ozone and PM NAAQS was underway, the EPA convened a
                    group of air quality experts representing industry,
                    environmental, and public health groups; State and
                    local governments; other Federal agencies; and academia
                    under the Federal Advisory Committee Act (FACA). This
                    group was charged by the Administrator of the EPA to
                    develop innovative, flexible, and cost-effective
                    implementation strategies that utilize a mix of control
                    measures to address ozone, PM, and regional haze. This
                    group will continue working with the EPA to further
                    develop this strategy.

                    In addition, all Federal agencies will continue to do
                    their part in carrying out the Federal responsibilities
                    in the State/Federal partnership that has been so
                    successful in improving air quality in the United
                    States. In addition, the EPA, in partnership with the
                    other Federal agencies, has developed

    [[Page 38424]]

                    an interagency research program that is described in
                    Appendix 1 for the coordination of future research on
                    both ground level ozone and PM.

                    Implementation of Ozone Standard

                    Phase-out of 1-hour standard

                    The revised ozone standard is intended to replace the
                    current 1-hour standard with an 8-hour standard.
                    However, the 1-hour standard will continue to apply to
                    areas not attaining it for an interim period to ensure
                    an effective transition to the new 8-hour standard.

                    Subpart 2 of part D of Title I of the CAA addresses the
                    requirements for different classifications of
                    nonattainment areas that do not meet the current 1-hour
                    standard (i.e., marginal, moderate, serious, and
                    severe). These requirements include such items as
                    mandatory control measures, annual rate of progress
                    requirements for emission reductions, and offset ratios
                    for the emissions from new or modified stationary
                    sources. These requirements have contributed
                    significantly to the improvements in air quality since
                    1990. Although the EPA initially offered an
                    interpretation of the CAA in the proposed Interim
                    Implementation Policy (IIP) (61 FR 65764, December 13,
                    1996) under which the provisions of Subpart 2 would not
                    apply to existing ozone nonattainment areas once a new
                    ozone NAAQS is promulgated, the EPA has reconsidered
                    that interpretation after receiving comments on the
                    proposed IIP. Based on EPA's legal review, the Agency
                    has concluded that Subpart 2 should continue to apply
                    as a matter of law for the purpose of achieving
                    attainment of the current 1-hour standard. Once an area
                    attains the 1-hour standard, those provisions will no
                    longer apply and the area's implementation of the new
                    8-hour standard would be governed only by the
                    provisions of Subpart 1 of Part D of Title I.

                    To streamline the process and minimize the burden on
                    existing nonattainment areas, the 1-hour standard will
                    cease to apply to an area upon a determination by the
                    EPA that an area has attained air quality that meets
                    the 1-hour standard. In light of the implementation of
                    the new 8-hour standard, which is more stringent than
                    the existing 1-hour standard, States will not have to
                    prepare maintenance plans for those areas that attain
                    the 1-hour standard. Within 90 days, the EPA will
                    publish an action identifying existing nonattainment
                    areas and maintenance areas to which the 1-hour
                    standard will cease to apply because they have attained
                    the 1-hour standard.

                    For areas where the air quality does not currently
                    attain the 1-hour standard, the 1-hour standard will
                    continue in effect. The provisions of Subpart 2 would
                    also apply to designated nonattainment areas until such
                    time as each area has air quality meeting the 1-hour
                    standard. At that time, the EPA will take action so
                    that the 1-hour standard no longer applies to such
                    areas. In any event, the ``bump-up'' provisions of
                    Subpart 2, which require areas not attaining the
                    standard by the applicable attainment date to be
                    reclassified to the next higher classification, will
                    not be triggered by the failure of any area to meet the
                    new 8-hour standard. The purpose of retaining the
                    current standard is to ensure a smooth legal and
                    practical transition to the new standard.

                    Implementation of New 8-hour Ozone standard

                    This section discusses the general timeline for
                    implementing the 8-hour standard, the importance of
                    regional approaches to address ozone and options for
                    classifying and designating areas relative to the 8-
                    hour ozone NAAQS.

                    General Timeline

                    Following promulgation of a revised NAAQS, the Clean
                    Air Act provides up to 3 years for State governors to
                    recommend and the EPA to designate areas according to
                    their most recent air quality. In addition, States will
                    have up to 3 years from designation to develop and
                    submit State Implementation Plans (SIPs) to provide for
                    attainment of the new standard. Under

    [[Page 38425]]

                    this approach, areas would be designated as
                    nonattainment for the 8-hour standard by 2000 and would
                    submit their nonattainment SIPs by 2003. The Act allows
                    up to 10 years plus two 1-year extensions from the date
                    of designation for areas to attain the revised NAAQS.

                    Regional Strategy

                    Ozone is a pollutant that travels great distances and
                    it is increasingly clear that it must be addressed as a
                    regional problem. For the past 2 years the EPA has been
                    working with the 37 most eastern States through the
                    Ozone Transport Assessment Group (OTAG) in the belief
                    that reducing interstate pollution will help all areas
                    in the OTAG region attain the NAAQS. A regional
                    approach can reduce compliance costs and allow many
                    areas to avoid most traditional nonattainment planning
                    requirements. The OTAG was sponsored by the
                    Environmental Council of States, with the objective of
                    evaluating ozone transport and recommending strategies
                    for mitigating interstate pollution. The OTAG completed
                    its work in June 1997 and forwarded recommendations to
                    the EPA. Based on these recommendations, in September
                    1997, the EPA will propose a rule requiring States in
                    the OTAG region that are significantly contributing to
                    nonattainment or interfering with maintenance of
                    attainment in downwind States to submit SIPs to reduce
                    their interstate pollution. The EPA will issue the
                    final rule by September 1998.

                    If the States choose to establish a regional emission
                    cap-and-trade system, modeled on the current acid rain
                    program, reductions can be obtained at a lower cost.
                    The EPA will encourage and assist the States to develop
                    and implement such a program. Most important, based on
                    the EPA's review of the latest modeling, a regional
                    approach, coupled with the implementation of other
                    already existing State and Federal Clean Air Act
                    requirements, will allow the vast majority of areas
                    that currently meet the 1-hour standard but would not
                    otherwise meet the new 8-hour standard to achieve
                    healthful air quality without additional local
                    controls.

                    Areas in the OTAG region that would exceed the new
                    standard after the adoption of the regional strategy,
                    including areas that do not meet the current 1-hour
                    standard, will benefit as well because the regional
                    NO<INF>X</INF> program will reduce the extent of
                    additional local measures needed to achieve the 8-hour
                    standard. In many cases these regional reductions may
                    be adequate to meet CAA progress requirements for a
                    number of years, allowing areas to defer additional
                    local controls.

                    Transitional Classification

                    For areas that attain the 1-hour standard but not the
                    new 8-hour standard, the EPA will follow a flexible
                    implementation approach that encourages cleaner air
                    sooner, responds to the fact that ozone is a regional
                    as well as local problem, and eliminates unnecessary
                    planning and regulatory burdens for State and local
                    governments. A primary element of the plan will be the
                    establishment under Section 172(a)(1) of the CAA of a
                    special ``transitional'' classification for areas that
                    participate in a regional strategy and/or that opt to
                    submit early plans addressing the new 8-hour standard.
                    Because many areas will need little or no additional
                    new local emission reductions to reach attainment,
                    beyond those reductions that will be achieved through
                    the regional control strategy, and will come into
                    attainment earlier than otherwise required, the EPA
                    will exercise its discretion under the law to eliminate
                    unnecessary local planning requirements for such areas.
                    The EPA will revise its rules for new source review
                    (NSR) and conformity so that States will be able to
                    comply with only minor revisions to their existing
                    programs in areas classified as transitional. During
                    this rulemaking, the EPA will also reexamine the NSR
                    requirements applicable to existing nonattainment
                    areas, in order to deal with issues of fairness among
                    existing and new nonattainment areas. The transitional
                    classification will be available for any area attaining
                    the 1-hour standard but not attaining the 8-hour
                    standard as of the time the EPA promulgates
                    designations for the 8-hour

    [[Page 38426]]

                    standard. Areas will follow the approaches described
                    below based on their status.

                    (1) Areas attaining the 1-hour standard, but not
                    attaining the 8-hour standard, that would attain the 8-
                    hour standard through the implementation of the
                    regional NO<INF>X</INF> transport strategy for the
                    East.

                    Based on the OTAG analyses, areas in the OTAG region
                    that can reach attainment through implementation of the
                    regional transport strategy would not be required to
                    adopt and implement additional local measures. When the
                    EPA designates these areas under section 107(d), it
                    will place them in the new transitional classification
                    if they would attain the standard through
                    implementation of the regional transport strategy and
                    are in a State that by 2000 submits an implementation
                    plan that includes control measures to achieve the
                    emission reductions required by the EPA's rule for
                    States in the OTAG region. This is 3 years earlier than
                    an attainment SIP would otherwise be required. The EPA
                    anticipates that it will be able to determine whether
                    such areas will attain based on the OTAG and other
                    regional modeling and that no additional local modeling
                    would be required.

                    (2) Areas attaining the 1-hour standard but not
                    attaining the 8-hour standard for which a regional
                    transport strategy is not sufficient for attainment of
                    the 8-hour standard.

                    To encourage early planning and attainment for the 8-
                    hour standard, the EPA will make the transitional
                    classification available to areas not attaining the 8-
                    hour standard that will need additional local measures
                    beyond the regional transport strategy, as well as to
                    areas that are not affected by the regional transport
                    strategy, provided they meet certain criteria. To
                    receive the transitional classification, these areas
                    must submit an attainment SIP prior to the designation
                    and classification process in 2000. The SIP must
                    demonstrate attainment of the 8-hour standard and
                    provide for the implementation of the necessary
                    emissions reductions on the same time schedule as the
                    regional transport reductions. The EPA will work with
                    affected areas to develop a streamlined attainment
                    demonstration. By submitting these attainment plans
                    earlier than would have otherwise been required, these
                    areas would be eligible for the transitional
                    classification and its benefits and would achieve
                    cleaner air much sooner than otherwise required.

                    (3) Areas not attaining the 1-hour standard and not
                    attaining the 8-hour standard

                    The majority of areas not attaining the 1-hour standard
                    have made substantial progress in evaluating their air
                    quality problems and developing plans to reduce
                    emissions of ozone-causing pollutants. These areas will
                    be eligible for the transitional classification
                    provided that they attain the 1-hour standard by the
                    year 2000 and comply with the appropriate provisions of
                    section (1) or (2) above depending upon which
                    conditions they meet.

                    Areas not Eligible for the Transitional Classification

                    For these areas, their work on planning and control
                    programs to meet the 1-hour standard by their current
                    attainment date (e.g., 2005 for Philadelphia and 2007
                    for Chicago) will take them a long way toward meeting
                    the 8-hour standard. While the additional local
                    reductions that they will need to achieve the 8-hour
                    standard must occur prior to their 8-hour attainment
                    date (e.g., 2010), for virtually all areas the
                    additional reductions needed to achieve the 8-hour
                    standard can occur after the 1-hour attainment date.
                    This approach allows them to make continued progress
                    toward attaining the 8-hour standard throughout the
                    entire period without requiring new additional local
                    controls for attaining the 8-hour standard until the 1-
                    hour standard is attained. These areas, however, will
                    need to submit an implementation plan within 3 years of
                    designation as nonattainment for the new standard for
                    achieving the 8-hour standard. Such a plan can rely in
                    large part on measures needed to attain the 1-hour
                    standard. For virtually all of these areas, no
                    additional local control measures beyond those needed
                    to meet the requirements of Subpart 2 and needed in
                    response to the regional

    [[Page 38427]]

                    transport strategy would be required to be implemented
                    prior to their applicable attainment date for the 1-
                    hour standard. Nonattainment areas that do not attain
                    the 1-hour standard by their attainment date would
                    continue to make progress in accordance with the
                    requirements of Subpart 2; the control measures needed
                    to meet the progress requirements under Subpart 2 would
                    generally be sufficient for meeting the control measure
                    and progress requirements of Subpart 1 as well.

                    Implementation of Particulate Matter Standards

                    As required under the Act, within the next 5 years the
                    EPA will complete the next periodic review of the PM
                    criteria and standards, including review by the CASAC.
                    As with all NAAQS reviews, the purpose is to update the
                    pertinent scientific and technical information and to
                    determine whether it is appropriate to revise the
                    standards in order to protect the public health with an
                    adequate margin of safety or to protect the public
                    welfare. Although the EPA has concluded that the
                    current scientific knowledge provides a strong basis
                    for the revised PM<INF>10</INF> and new PM<INF>2.5</INF>
                    standards, there remain scientific uncertainties
                    associated with the health and environmental effects of
                    PM and the means of reducing them.

                    The following steps discussed below and in Appendix 1,
                    Interagency Research Program, will address these
                    concerns. First, recognizing the importance of
                    developing a better understanding of the effects of
                    fine particles on human health, including their causes
                    and mechanisms, as well as the species and sources of
                    PM<INF>2.5</INF>, the EPA will continue to sponsor
                    research, particularly in these areas. Second, the
                    Administrator of the EPA will promptly initiate a new
                    review of the scientific criteria on the effects of
                    airborne particles on human health and the environment.
                    Within 90 days, the EPA will develop and provide to
                    CASAC a plan and proposed schedule for this review to
                    assure that the review is completed within 5 years. The
                    plan and schedule will be published in the Federal
                    Register. Thus, by July 2002, the Agency will have
                    determined, based on data available from its review,
                    whether to revise or maintain the standards. This
                    determination will have been made before any areas have
                    been designated nonattainment under the PM<INF>2.5</INF>
                    standards and before imposition of any new controls
                    related to the PM<INF>2.5</INF> standards.

                    Implementation of New PM<INF>2.5</INF> NAAQS

                    As set forth in the EPA's final action regarding PM,
                    the EPA is establishing a new indicator for fine
                    particles (i.e., PM<INF>2.5</INF>) and promulgating new
                    PM<INF>2.5</INF> standards. Monitoring and planning
                    will be required before control measures to address
                    these standards would be required. Therefore, the first
                    priority for implementing them is establishment of a
                    comprehensive monitoring network to determine ambient
                    fine particle concentrations across the country. The
                    monitoring network will help the EPA and the States
                    determine which areas do not meet the new air quality
                    standards, what are the major sources of PM<INF>2.5</INF>
                    in various regions, and what action is needed to clean
                    up the air. The EPA and the States will consult with
                    affected stakeholders on the design of the network and
                    will then establish the network, which will consist of
                    approximately 1,500 monitors. All monitors will provide
                    for limited speciation, or analysis of the chemical
                    composition, of the particles measured. At least 50 of
                    the monitors will provide for a more comprehensive
                    speciation of the particles. The EPA will work with
                    states to deploy the PM<INF>2.5</INF> monitoring
                    network. Based on the ambient monitoring data we have
                    seen to date, these would generally not include
                    agricultural areas. The EPA will fund the cost of
                    purchasing the monitors, as well as the cost of
                    analyzing particles collected at the monitors to
                    determine their chemical composition.

                    Because the EPA is establishing standards for a new
                    indicator for PM (i.e., PM<INF>2.5</INF>), it is
                    critical to develop the best information possible
                    before attainment and nonattainment designation
                    decisions are made. Three calendar years of Federal
                    reference method monitoring data will be used to
                    determine

    [[Page 38428]]

                    whether areas meet or do not meet the PM<INF>2.5</INF>
                    standards. Three years of data will be available from
                    the earliest monitors in the spring of 2001, and 3
                    years of data will be available from all monitors in
                    2004. Following this monitoring schedule and allowing
                    time for data analysis, Governors and the EPA will not
                    be able to make the first determinations as to which
                    areas should be designated nonattainment until at least
                    2002, 5 years from now. The Clean Air Act, however,
                    requires that the EPA make designation determinations
                    (i.e., attainment, nonattainment, or unclassifiable)
                    within 2 to 3 years of revising a NAAQS. To fulfill
                    this requirement, in 1999 the EPA will issue
                    ``unclassifiable'' designations for PM<INF>2.5</INF>.
                    These designations will not trigger the planning or
                    control requirements of part D of Title I of the Act.

                    When the EPA designates PM<INF>2.5</INF> nonattainment
                    areas pursuant to the Governors' recommendations
                    beginning in 2002, areas will be allowed 3 years to
                    develop and submit to the EPA pollution control plans
                    showing how they will meet the new standards. Areas
                    will then have up to 10 years from their redesignation
                    to nonattainment to attain the PM<INF>2.5</INF>
                    standards with the possibility of two 1-year
                    extensions.

                    In developing strategies for attaining the PM<INF>2.5</INF>
                    standards, it is important to focus on measures that
                    decrease emissions that contribute to regional
                    pollution. Available information indicates that nearly
                    one-third of the areas projected not to meet the new
                    PM<INF>2.5</INF> standards, primarily in the Eastern
                    United States, could come into compliance as a result
                    of the regional SO<INF>2</INF> emission reductions
                    already mandated under the Clean Air Act's acid rain
                    program, which will be fully implemented between 2000
                    and 2010. Similarly, the Grand Canyon Visibility
                    Transport Commission, consisting of Western States and
                    tribes, committed to reducing regional emissions of
                    PM<INF>2.5</INF> precursors (sulfates, nitrates, and
                    organics) to improve visibility across the Colorado
                    Plateau.

                    As detailed PM<INF>2.5</INF> air quality data and data
                    on the chemical composition of PM<INF>2.5</INF> in
                    different areas become available, the EPA will work
                    with the States to analyze regional strategies that
                    could reduce PM<INF>2.5</INF> levels. If further cost-
                    effective regional reductions will help areas meet the
                    new standard, the EPA will encourage States to work
                    together to use a cap-and-trade approach similar to
                    that used to curb acid rain. This acid rain program
                    delivered environmental benefits at a greatly reduced
                    cost.

                    Given the regional dimensions of the PM<INF>2.5</INF>
                    problem, local governments and local businesses should
                    not be required to undertake unnecessary planning and
                    local regulatory measures when the problem requires
                    action on a regional basis. Therefore, as long as the
                    States are doing their part to carry out regional
                    reduction programs, the areas that would attain the
                    PM<INF>2.5</INF> standards based on full implementation
                    of the acid rain program would not face new local
                    requirements. Early identification of other regional
                    strategies could also assist local areas in completing
                    their programs to attain the PM<INF>2.5</INF> standards
                    after those areas have been designated nonattainment.

                    The EPA will also encourage States to coordinate their
                    PM<INF>2.5</INF> control strategy development and
                    efforts to protect regional visibility. Visibility
                    monitoring and data analysis will support both
                    PM<INF>2.5</INF> implementation and the visibility
                    program.

                    Implementation of Revised PM<INF>10</INF> NAAQS

                    In its rule, the EPA is revising the current set of
                    PM<INF>10</INF> standards. Given that health effects
                    from coarse particles are still of concern, the overall
                    goal during this transition period is to ensure that
                    PM<INF>10</INF> control measures remain in place to
                    maintain the progress that has been achieved toward
                    attainment of the current PM<INF>10</INF> NAAQS (and
                    which provides benefits for PM<INF>2.5</INF>) and
                    protection of public health.

                    To ensure that this goal is met, the existing PM<INF>10</INF>
                    NAAQS will continue to apply until certain critical
                    actions by the EPA, and by States and local agencies,
                    have been taken to sustain the progress already made.
                    For areas

    [[Page 38429]]

                    not attaining the existing PM<INF>10</INF> NAAQS when
                    the revised standards go into effect, those standards
                    remain in effect until the EPA has completed a section
                    172(e) rulemaking to prevent backsliding. The EPA will
                    propose this rulemaking in the Fall of 1997. For areas
                    attaining the existing PM<INF>10</INF> NAAQS, the EPA
                    will retain the existing PM<INF>10</INF> NAAQS until
                    the State submits and the EPA approves the section 110
                    SIP which States are required to submit within 3 years
                    of a NAAQS revision. Once those areas have an approved
                    SIP, the EPA will take action so the standard no longer
                    applies. In addition, the EPA will take action within 3
                    years to designate areas for the revised PM<INF>10</INF>
                    standards.

                    Cost-Effective Implementation Strategies

                    There is a strong desire to drive the development of
                    new technologies with the potential of greater emission
                    reduction at less cost. It was agreed that $10,000 per
                    ton of emission reduction is the high end of the range
                    of reasonable cost to impose on sources. Consistent
                    with the State's ultimate responsibility to attain the
                    standards, the EPA will encourage the States to design
                    strategies for attaining the PM and ozone standards
                    that focus on getting low cost reductions and limiting
                    the cost of control to under $10,000 per ton for all
                    sources. Market-based strategies can be used to reduce
                    compliance costs. The EPA will encourage the use of
                    concepts such as a Clean Air Investment Fund, which
                    would allow sources facing control costs higher than
                    $10,000 a ton for any of these pollutants to pay a set
                    annual amount per ton to fund cost-effective emissions
                    reductions from non-traditional and small sources.
                    Compliance strategies like this will likely lower the
                    costs of attaining the standards through more efficient
                    allocation, minimize the regulatory burden for small
                    and large pollution sources, and serve to stimulate
                    technology innovation as well.

                    Additional Future Activities and Coordination with
                    Other Federal Departments and Agencies

                    The approaches outlined above for implementation of the
                    current and new ozone standards will be developed in
                    the future in much greater detail. In order to ensure
                    that the final details are practical, incorporate
                    common sense, and provide the appropriate steps toward
                    cleaning the air, input is needed from many
                    stakeholders such as representatives of State and local
                    governments, industry, environmental groups, and
                    Federal agencies. The EPA will continue seeking such
                    advice from a range of stakeholders and, after
                    evaluating their input, propose the necessary guidance
                    to make these approaches work. Moreover, the EPA will
                    continue to work with a number of Federal agencies to
                    ensure that those agencies comply with these new
                    standards in cost-effective, common sense ways. The
                    guidance and rules (e.g., revisions to NSR and
                    conformity) will be completed by the end of 1998.

                    The EPA will continue to work with the Small Business
                    Administration (SBA) because small businesses are
                    particularly concerned about the potential impact
                    resulting from future control measures to meet the
                    revised PM and ozone standards. The EPA, in partnership
                    with SBA, will work with the States to include in their
                    SIPs flexible regulatory alternatives that minimize the
                    economic impact and paperwork burden on small
                    businesses to the greatest possible degree consistent
                    with public health protection.

                    The EPA and the Department of Defense will continue to
                    work towards assuring that the CAA's general conformity
                    provisions are applied appropriately so as to maintain
                    the air quality benefits of this requirement consistent
                    with the Department's goals for cost-saving
                    consolidation of the defense infrastructure and the
                    economic viability for civilian use of former military
                    bases, in support of base realignment and closure
                    activities.

    [[Page 38430]]

                    In addition, understanding that critical training using
                    smoke and obscurants must continue to ensure the
                    training and readiness of the military, the EPA will
                    work with the Department of Defense to develop a policy
                    that ensures that a local area will not be redesignated
                    to nonattainment solely on the basis of the use of
                    obscurants or smoke for such purposes. While there is a
                    need to keep the public informed of violations of air
                    quality standards, if any were to occur, there is no
                    need to curtail the training or limit it to certain
                    weather conditions.

                    The EPA will also work closely with the Department of
                    Agriculture and the Agriculture Air Quality Task Force
                    on any agricultural issues associated with the ozone
                    and PM standards. By establishing new standards for
                    particulate matter smaller than 2.5 micrometers in
                    diameter (PM<INF>2.5</INF>), as opposed to tightening
                    the existing standards for particles smaller than 10
                    micrometers (PM<INF>10</INF>), the EPA is actually
                    focusing regulatory attention away from farming and
                    tilling issues. Indeed, soils and agriculture comprise
                    a much smaller portion of the PM<INF>2.5</INF> problem
                    than they do of the PM<INF>10</INF> problem. The EPA
                    will issue guidance to the States to ensure that in
                    meeting the PM<INF>2.5</INF> standards they focus their
                    control strategies on sources of fine particles, rather
                    than coarse particles (those particles larger than
                    PM<INF>2.5</INF>).

                    Finally, the EPA will continue to work with the
                    interagency group addressing fire and air quality
                    issues. The EPA recognizes the inevitability of fire,
                    and the important role of fire in natural systems. The
                    interagency group will develop policies and practices
                    to assure compatibility between fire and air quality
                    programs consistent with public health, safety, and
                    environmental protection.

    [[Page 38431]]

                    Appendix 1

                    Interagency Research Program

                    The EPA has concluded that the current scientific
                    knowledge provides a strong basis for the revised ozone
                    and PM<INF>10</INF> standards and the new PM<INF>2.5</INF>
                    standards. However, for both pollutants there exist
                    uncertainties about the health effects and their causes
                    that can benefit from further study. The complex
                    chemistry of their formation and the potential for the
                    regional transport of their precursor pollutants and
                    ozone and PM also needs to be better understood to
                    design effective control strategies to reduce their
                    concentrations in the ambient air. The research program
                    is structured to prioritize those projects that ensure
                    research activities are focused on high-priority topics
                    and that the research carried out by various agencies
                    is both complementary and timely. The EPA will reach
                    out to form partnerships with the private sector and
                    State and local governments in performing the research
                    wherever possible.

                    Particulate Matter Research

                    As discussed elsewhere, the EPA will complete another
                    full scientific and technical review of the PM
                    standards by 2002. Simultaneous with the planning for
                    the current criteria review in 1993, the EPA began a
                    process of increasing emphasis on PM research. As
                    discussed above, commenters on the proposed PM NAAQS
                    also expressed significant concerns about the science.
                    The steps discussed below are intended to address the
                    concerns raised by the commenters.

                    Based on the recently completed comprehensive
                    scientific review, the EPA is again reassessing its
                    research priorities to address the most recent
                    understanding of these uncertainties with the
                    development of two documents, entitled PM Research
                    Needs for Human Health Risk Assessment and ORD PM
                    Research Program Strategy. These documents are designed
                    to highlight significant health research needs and EPA/
                    ORD's strategy to address a subset of those needs as
                    well as research needs for implementing the standards.
                    Both documents were reviewed by the Clean Air
                    Scientific Advisory Committee (CASAC) in a November
                    1996 meeting, and are currently undergoing revisions to
                    address CASAC comments.

                    These documents, in turn, will help to guide an
                    expansion of an ongoing government-wide effort to
                    target and coordinate Federal research on particulate
                    matter. The EPA, in partnership with other Federal
                    agencies, will develop a greatly expanded coordinated
                    interagency PM research program. The program will
                    contribute to expanding the science associated with
                    particulate matter health effects, as well as
                    developing improved monitoring methods and cost-
                    effective mitigation strategies. For example, the
                    Department of Health and Human Services is conducting
                    research on respiratory disease and could undertake
                    surveillance of PM-related health effects. Significant
                    emphasis will be placed on coordinating research on
                    health effects, biological mechanism causing effects,
                    monitoring, source-receptor relationships, speciation
                    of PM, identification of sources, control technologies
                    and regional transport for particulate matter with
                    corresponding research on ozone and other related
                    pollutants including regional haze. To assist State and
                    local efforts in completing planning requirements and
                    reducing PM, the EPA will work cooperatively with the
                    Department of Agriculture, Department of Defense,
                    Department of Energy, Department of Transportation, and
                    other affected Federal agencies to refine existing,
                    limited analytical models for PM<INF>10</INF> and to
                    develop new reliable predictive models for
                    PM<INF>2.5</INF>.

                    Tropospheric (Ground Level) Ozone Research

                    To ensure that the ozone NAAQS and their implementation
                    continue to be based on the best available science, the
                    EPA will continue its research efforts on tropospheric
                    or ground level ozone. As with the setting and
                    implementation of virtually all health-based
                    environmental standards, there remain scientific
                    uncertainties associated with the effects of ozone and
                    the means of reducing them. The EPA has participated in
                    an intergovernmental

    [[Page 38432]]

                    public/private partnership called the North American
                    Research Strategy for Tropospheric Ozone (NARSTO) that
                    involves a coordinated effort to identify and address
                    key issues in the emissions, transport, and mitigation
                    of photochemical pollutants. Further, with the
                    completion of the ozone Criteria Document, the EPA has
                    reassessed the uncertainties and research needs on the
                    health and ecological effects of ozone at workshops
                    held in March and May 1997, respectively. The EPA is
                    currently developing a health and ecological effects
                    research needs document for ozone, which will be
                    submitted for review by CASAC.

                    In addition, the EPA will continue broader efforts to
                    coordinate Federal research on tropospheric ozone. The
                    public/private NARSTO partnership is a model
                    cooperative effort already begun in the area of
                    atmospheric processes and risk management. NARSTO's
                    membership spans government, utilities and other
                    industries, and the academic community--all following a
                    single national research agenda. The EPA will also work
                    in partnership with other Federal agencies to address
                    research needs on ozone health and ecological effects.
                    For example, the Department of Health and Human
                    Services is conducting research on respiratory disease
                    and could undertake surveillance of ozone-related
                    health effects. These research efforts will be
                    coordinated to ensure research activities are focused
                    on high-priority topics and that the research carried
                    out by various agencies is complementary. Significant
                    emphasis will be placed on coordinating both health
                    effects, monitoring, source-receptor, and control
                    technologies for ozone with corresponding research on
                    particulate matter and other related pollutants subject
                    to significant regional transport.

    [FR Doc. 97-19201
    Filed 7-17-97; 12:50pm]
    Billing code 6560-50-P