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115th Congress   }                                     {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                     {      115-222
======================================================================



 
               OZONE STANDARDS IMPLEMENTATION ACT OF 2017

                                _______
                                

 July 14, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 806]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 806) to facilitate efficient State 
implementation of ground-level ozone standards, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     5
Background and Need for Legislation..............................     6
What the Legislation Would Do....................................     7
Hearings.........................................................    16
Committee Consideration..........................................    17
Committee Votes..................................................    17
Oversight Findings and Recommendations...........................    21
New Budget Authority, Entitlement Authority, and Tax Expenditures    21
Congressional Budget Office Estimate.............................    21
Federal Mandates Statement.......................................    21
Statement of General Performance Goals and Objectives............    21
Duplication of Federal Programs..................................    21
Committee Cost Estimate..........................................    21
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    21
Disclosure of Directed Rule Makings..............................    22
Advisory Committee Statement.....................................    22
Applicability to Legislative Branch..............................    22
Section-by-Section Analysis of the Legislation...................    22
Changes in Existing Law Made by the Bill, as Reported............    25
Dissenting Views.................................................    55
   
   
   
   
   The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Ozone Standards Implementation Act of 
2017''.

SEC. 2. FACILITATING STATE IMPLEMENTATION OF EXISTING OZONE STANDARDS.

  (a) Designations.--
          (1) Designation submission.--Not later than October 26, 2024, 
        notwithstanding the deadline specified in paragraph (1)(A) of 
        section 107(d) of the Clean Air Act (42 U.S.C. 7407(d)), the 
        Governor of each State shall designate in accordance with such 
        section 107(d) all areas (or portions thereof) of the 
        Governor's State as attainment, nonattainment, or 
        unclassifiable with respect to the 2015 ozone standards.
          (2) Designation promulgation.--Not later than October 26, 
        2025, notwithstanding the deadline specified in paragraph 
        (1)(B) of section 107(d) of the Clean Air Act (42 U.S.C. 
        7407(d)), the Administrator shall promulgate final designations 
        under such section 107(d) for all areas in all States with 
        respect to the 2015 ozone standards, including any 
        modifications to the designations submitted under paragraph 
        (1).
          (3) State implementation plans.--Not later than October 26, 
        2026, notwithstanding the deadline specified in section 
        110(a)(1) of the Clean Air Act (42 U.S.C. 7410(a)(1)), each 
        State shall submit the plan required by such section 110(a)(1) 
        for the 2015 ozone standards.
  (b) Certain Preconstruction Permits.--
          (1) In general.--The 2015 ozone standards shall not apply to 
        the review and disposition of a preconstruction permit 
        application if--
                  (A) the Administrator or the State, local, or Tribal 
                permitting authority, as applicable, determines the 
                application to be complete on or before the date of 
                promulgation of the final designation of the area 
                involved under subsection (a)(2); or
                  (B) the Administrator or the State, local, or Tribal 
                permitting authority, as applicable, publishes a public 
                notice of a preliminary determination or draft permit 
                for the application before the date that is 60 days 
                after the date of promulgation of the final designation 
                of the area involved under subsection (a)(2).
          (2) Rules of construction.--Nothing in this section shall be 
        construed to--
                  (A) eliminate the obligation of a preconstruction 
                permit applicant to install best available control 
                technology and lowest achievable emission rate 
                technology, as applicable; or
                  (B) limit the authority of a State, local, or Tribal 
                permitting authority to impose more stringent emissions 
                requirements pursuant to State, local, or Tribal law 
                than national ambient air quality standards.

SEC. 3. FACILITATING STATE IMPLEMENTATION OF NATIONAL AMBIENT AIR 
                    QUALITY STANDARDS.

  (a) Timeline for Review of National Ambient Air Quality Standards.--
          (1) Ten-year cycle for all criteria air pollutants.--
        Paragraphs (1) and (2)(B) of section 109(d) of the Clean Air 
        Act (42 U.S.C. 7409(d)) are amended by striking ``five-year 
        intervals'' each place it appears and inserting ``10-year 
        intervals''.
          (2) Cycle for next review of ozone criteria and standards.--
        Notwithstanding section 109(d) of the Clean Air Act (42 U.S.C. 
        7409(d)), the Administrator shall not--
                  (A) complete, before October 26, 2025, any review of 
                the criteria for ozone published under section 108 of 
                such Act (42 U.S.C. 7408) or the national ambient air 
                quality standard for ozone promulgated under section 
                109 of such Act (42 U.S.C. 7409); or
                  (B) propose, before such date, any revisions to such 
                criteria or standard.
  (b) Consideration of Technological Feasibility.--Section 109(b)(1) of 
the Clean Air Act (42 U.S.C. 7409(b)(1)) is amended by inserting after 
the first sentence the following: ``If the Administrator, in 
consultation with the independent scientific review committee appointed 
under subsection (d), finds that a range of levels of air quality for 
an air pollutant are requisite to protect public health with an 
adequate margin of safety, as described in the preceding sentence, the 
Administrator may consider, as a secondary consideration, likely 
technological feasibility in establishing and revising the national 
primary ambient air quality standard for such pollutant.''.
  (c) Consideration of Adverse Public Health, Welfare, Social, 
Economic, or Energy Effects.--Section 109(d)(2) of the Clean Air Act 
(42 U.S.C. 7409(d)(2)) is amended by adding at the end the following:
  ``(D) Prior to establishing or revising a national ambient air 
quality standard, the Administrator shall request, and such committee 
shall provide, advice under subparagraph (C)(iv) regarding any adverse 
public health, welfare, social, economic, or energy effects which may 
result from various strategies for attainment and maintenance of such 
national ambient air quality standard.''.
  (d) Timely Issuance of Implementing Regulations and Guidance.--
Section 109 of the Clean Air Act (42 U.S.C. 7409) is amended by adding 
at the end the following:
  ``(e) Timely Issuance of Implementing Regulations and Guidance.--
          ``(1) In general.--In publishing any final rule establishing 
        or revising a national ambient air quality standard, the 
        Administrator shall, as the Administrator determines necessary 
        to assist States, permitting authorities, and permit 
        applicants, concurrently publish regulations and guidance for 
        implementing the standard, including information relating to 
        submission and consideration of a preconstruction permit 
        application under the new or revised standard.
          ``(2) Applicability of standard to preconstruction 
        permitting.--If the Administrator fails to publish final 
        regulations and guidance that include information relating to 
        submission and consideration of a preconstruction permit 
        application under a new or revised national ambient air quality 
        standard concurrently with such standard, then such standard 
        shall not apply to the review and disposition of a 
        preconstruction permit application until the Administrator has 
        published such final regulations and guidance.
          ``(3) Rules of construction.--
                  ``(A) Nothing in this subsection shall be construed 
                to preclude the Administrator from issuing regulations 
                and guidance to assist States, permitting authorities, 
                and permit applicants in implementing a national 
                ambient air quality standard subsequent to publishing 
                regulations and guidance for such standard under 
                paragraph (1).
                  ``(B) Nothing in this subsection shall be construed 
                to eliminate the obligation of a preconstruction permit 
                applicant to install best available control technology 
                and lowest achievable emission rate technology, as 
                applicable.
                  ``(C) Nothing in this subsection shall be construed 
                to limit the authority of a State, local, or Tribal 
                permitting authority to impose more stringent emissions 
                requirements pursuant to State, local, or Tribal law 
                than national ambient air quality standards.
          ``(4) Definitions.--In this subsection:
                  ``(A) The term `best available control technology' 
                has the meaning given to that term in section 169(3).
                  ``(B) The term `lowest achievable emission rate' has 
                the meaning given to that term in section 171(3).
                  ``(C) The term `preconstruction permit'--
                          ``(i) means a permit that is required under 
                        this title for the construction or modification 
                        of a stationary source; and
                          ``(ii) includes any such permit issued by the 
                        Environmental Protection Agency or a State, 
                        local, or Tribal permitting authority.''.
  (e) Contingency Measures for Extreme Ozone Nonattainment Areas.--
Section 172(c)(9) of the Clean Air Act (42 U.S.C. 7502(c)(9)) is 
amended by adding at the end the following: ``Notwithstanding the 
preceding sentences and any other provision of this Act, such measures 
shall not be required for any nonattainment area for ozone classified 
as an Extreme Area.''.
  (f) Plan Submissions and Requirements for Ozone Nonattainment 
Areas.--Section 182 of the Clean Air Act (42 U.S.C. 7511a) is amended--
          (1) in subsection (b)(1)(A)(ii)(III), by inserting ``and 
        economic feasibility'' after ``technological achievability'';
          (2) in subsection (c)(2)(B)(ii), by inserting ``and economic 
        feasibility'' after ``technological achievability'';
          (3) in subsection (e), in the matter preceding paragraph 
        (1)--
                  (A) by striking ``The provisions of clause (ii) of 
                subsection (c)(2)(B) (relating to reductions of less 
                than 3 percent), the provisions of paragaphs'' and 
                inserting ``The provisions of paragraphs''; and
                  (B) by striking ``, and the provisions of clause (ii) 
                of subsection (b)(1)(A) (relating to reductions of less 
                than 15 percent)''; and
          (4) in paragraph (5) of subsection (e), by striking ``, if 
        the State demonstrates to the satisfaction of the Administrator 
        that--'' and all that follows through the end of the paragraph 
        and inserting a period.
  (g) Plan Revisions for Milestones for Particulate Matter 
Nonattainment Areas.--Section 189(c)(1) of the Clean Air Act (42 U.S.C. 
7513a(c)(1)) is amended by inserting ``, which take into account 
technological achievability and economic feasibility,'' before ``and 
which demonstrate reasonable further progress''.
  (h) Exceptional Events.--Section 319(b)(1)(B) of the Clean Air Act 
(42 U.S.C. 7619(b)(1)(B)) is amended--
          (1) in clause (i)--
                  (A) by striking ``(i) stagnation of air masses or'' 
                and inserting ``(i)(I) ordinarily occurring stagnation 
                of air masses or (II)''; and
                  (B) by inserting ``or'' after the semicolon;
          (2) by striking clause (ii); and
          (3) by redesignating clause (iii) as clause (ii).
  (i) Report on Emissions Emanating From Outside the United States.--
Not later than 24 months after the date of enactment of this Act, the 
Administrator, in consultation with States, shall submit to the 
Congress a report on--
          (1) the extent to which foreign sources of air pollution, 
        including emissions from sources located outside North America, 
        impact--
                  (A) designations of areas (or portions thereof) as 
                nonattainment, attainment, or unclassifiable under 
                section 107(d) of the Clean Air Act (42 U.S.C. 
                7407(d)); and
                  (B) attainment and maintenance of national ambient 
                air quality standards;
          (2) the Environmental Protection Agency's procedures and 
        timelines for disposing of petitions submitted pursuant to 
        section 179B(b) of the Clean Air Act (42 U.S.C. 7509a(b));
          (3) the total number of petitions received by the Agency 
        pursuant to such section 179B(b), and for each such petition 
        the date initially submitted and the date of final disposition 
        by the Agency; and
          (4) whether the Administrator recommends any statutory 
        changes to facilitate the more efficient review and disposition 
        of petitions submitted pursuant to such section 179B(b).
  (j) Study on Ozone Formation.--
          (1) Study.--The Administrator, in consultation with States 
        and the National Oceanic and Atmospheric Administration, shall 
        conduct a study on the atmospheric formation of ozone and 
        effective control strategies, including--
                  (A) the relative contribution of man-made and 
                naturally occurring nitrogen oxides, volatile organic 
                compounds, and other pollutants in ozone formation in 
                urban and rural areas, including during wildfires, and 
                the most cost-effective control strategies to reduce 
                ozone; and
                  (B) the science of wintertime ozone formation, 
                including photochemical modeling of wintertime ozone 
                formation, and approaches to cost-effectively reduce 
                wintertime ozone levels.
          (2) Peer review.--The Administrator shall have the study peer 
        reviewed by an independent panel of experts in accordance with 
        the requirements applicable to a highly influential scientific 
        assessment.
          (3) Report.--The Administrator shall submit to Congress a 
        report describing the results of the study, including the 
        findings of the peer review panel.
          (4) Regulations and guidance.--The Administrator shall 
        incorporate the results of the study, including the findings of 
        the peer review panel, into any Federal rules and guidance 
        implementing the 2015 ozone standards.

SEC. 4. APPLICABILITY OF SANCTIONS AND FEES IF EMISSIONS BEYOND 
                    CONTROL.

  The Clean Air Act (42 U.S.C. 7401 et seq.) is amended by inserting 
after section 179B the following new section:

``SEC. 179C. APPLICABILITY OF SANCTIONS AND FEES IF EMISSIONS BEYOND 
                    CONTROL.

  ``(a) In General.--Notwithstanding any other provision of this Act, 
with respect to any nonattainment area that is classified under section 
181 as severe or extreme for ozone or under section 188 as serious for 
particulate matter, no sanction or fee under section 179 or 185 shall 
apply with respect to a State (or a local government or source therein) 
on the basis of a deficiency described in section 179(a), or the 
State's failure to attain a national ambient air quality standard for 
ozone or particulate matter by the applicable attainment date, if the 
State demonstrates that the State would have avoided such deficiency or 
attained such standard but for one or more of the following:
          ``(1) Emissions emanating from outside the nonattainment 
        area.
          ``(2) Emissions from an exceptional event (as defined in 
        section 319(b)(1)).
          ``(3) Emissions from mobile sources to the extent the State 
        demonstrates that--
                  ``(A) such emissions are beyond the control of the 
                State to reduce or eliminate; and
                  ``(B) the State is fully implementing such measures 
                as are within the authority of the State to control 
                emissions from the mobile sources.
  ``(b) No Effect on Underlying Standards.--The inapplicability of 
sanctions or fees with respect to a State pursuant to subsection (a) 
does not affect the obligation of the State (and local governments and 
sources therein) under other provisions of this Act to establish and 
implement measures to attain a national ambient air quality standard 
for ozone or particulate matter.
  ``(c) Periodic Renewal of Demonstration.--For subsection (a) to 
continue to apply with respect to a State or local government (or 
source therein), the State involved shall renew the demonstration 
required by subsection (a) at least once every 5 years.''.

SEC. 5. DEFINITIONS.

  In this Act:
          (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
          (2) Best available control technology.--The term ``best 
        available control technology'' has the meaning given to that 
        term in section 169(3) of the Clean Air Act (42 U.S.C. 
        7479(3)).
          (3) Highly influential scientific assessment.--The term 
        ``highly influential scientific assessment'' means a highly 
        influential scientific assessment as defined in the publication 
        of the Office of Management and Budget entitled ``Final 
        Information Quality Bulletin for Peer Review'' (70 Fed. Reg. 
        2664 (January 14, 2005)).
          (4) Lowest achievable emission rate.--The term ``lowest 
        achievable emission rate'' has the meaning given to that term 
        in section 171(3) of the Clean Air Act (42 U.S.C. 7501(3)).
          (5) National ambient air quality standard.--The term 
        ``national ambient air quality standard'' means a national 
        ambient air quality standard promulgated under section 109 of 
        the Clean Air Act (42 U.S.C. 7409).
          (6) Preconstruction permit.--The term ``preconstruction 
        permit''--
                  (A) means a permit that is required under title I of 
                the Clean Air Act (42 U.S.C. 7401 et seq.) for the 
                construction or modification of a stationary source; 
                and
                  (B) includes any such permit issued by the 
                Environmental Protection Agency or a State, local, or 
                Tribal permitting authority.
          (7) 2015 ozone standards.--The term ``2015 ozone standards'' 
        means the national ambient air quality standards for ozone 
        published in the Federal Register on October 26, 2015 (80 Fed. 
        Reg. 65292).

SEC. 6. NO ADDITIONAL FUNDS AUTHORIZED.

  No additional funds are authorized to be appropriated to carry out 
the requirements of this Act and the amendments made by this Act. Such 
requirements shall be carried out using amounts otherwise authorized.

                          Purpose and Summary

    H.R. 806, the Ozone Standards Implementation Act, was 
introduced on February 1, 2017, by Rep. Pete Olson (R-TX), 
together with Rep. Bill Flores (R-TX), Rep. Robert Latta (R-
OH), Rep. Sanford Bishop (D-GA), Majority Leader Kevin McCarthy 
(R-CA), Rep. Henry Cuellar (D-TX), Majority Whip Steve Scalise 
(R-LA), Rep. Jim Costa (D-CA), Rep. Kevin Cramer (R-ND), Rep. 
Billy Long (R-MO) Rep. Evan Jenkins (R-WV), Rep. Michael 
Burgess (R-TX), Rep. James Renacci (R-OH), Rep. Jeb Hensarling 
(R-TX), Rep. David McKinley (R-WV), Rep. Brett Guthrie (R-KY), 
Rep. Larry Bucshon (R-IN), Rep. Bill Johnson (R-OH), Rep. Randy 
Weber (R-TX), and Rep. Brian Babin (R-TX). The bill would 
provide additional time for States and localities to implement 
new ozone standards, and address other challenges under the 
National Ambient Air Quality Standards (NAAQS) program.

                  Background and Need for Legislation

    Under the Clean Air Act's NAAQS program, the Environmental 
Protection Agency (EPA) Administrator sets standards for 
criteria pollutants, including ground-level ozone.\1\ According 
to EPA, since 1980 ozone levels have declined by 32 percent.\2\
---------------------------------------------------------------------------
    \1\The other criteria pollutants are carbon monoxide, lead, 
nitrogen dioxide, particulate matter, and sulfur dioxide. The Clean Air 
Act requires that EPA set national primary and secondary standards for 
criteria pollutants that, ``allowing an adequate margin of safety,'' 
are requisite to protect public health and welfare. 42 U.S.C. 7409.
    \2\See National Trends in Ozone Levels available at https://
www.epa.gov/air-trends/ozone-trends.
---------------------------------------------------------------------------
    EPA initially established ozone standards in 1971, and 
subsequently revised the standards in 1979, 1997, and 2008.\3\ 
The standards set in 2008 established an 8-hour standard of 75 
parts per billion (ppb), replacing a 1997 standard equivalent 
to 84 ppb. EPA did not publish its implementing regulations for 
the 2008 standards until March 2015, nearly 7 years after these 
standards had been issued by the agency.
---------------------------------------------------------------------------
    \3\For background on EPA's ozone standards, see Memorandum of the 
Energy and Commerce Committee, Majority Staff dated March 22, 2017 and 
available at http://docs.house.gov/meetings/IF/IF18/20170322/105754/
HHRG-115-IF18-20170322-SD020.pdf.
---------------------------------------------------------------------------
    In October 2015, the EPA Administrator also promulgated a 
new 8-hour ozone standard of 70 ppb.\4\ Under the Clean Air 
Act's statutory schedule, States were required to submit 
designation recommendations by October 1, 2016 and EPA had 
planned to promulgate final nonattainment designations by 
October of 2017. However, in June 2017, the EPA, using its 
authority under the Clean Air Act, extended the deadline for 
final nonattainment designations by one year until October 1, 
2018.\5\ Based on the agency's monitoring data for 2012 to 
2014, 241 counties with ozone monitors in 33 States would 
violate the new standard.\6\ These projections do not include 
counties that currently do not have monitors, or contiguous 
counties that do not exceed 70 ppb but that may also be 
designated to be in nonattainment.\7\
---------------------------------------------------------------------------
    \4\80 Fed. Reg. 65,292 (Oct. 26, 2015).
    \5\82 Fed. Reg. 29,246 (June 28, 2017). See also EPA memo dated 
Oct. 1, 2015 available at https://www.epa.gov/sites/production/files/
2015-10/documents/implementation_memo.pdf and guidance dated Feb. 25, 
2016 available at https://www.epa.gov/sites/production/files/2016-02/
documents/ozone-designations-guidance-2015.pdf.
    \6\See EPA ``County-level Design Values for the 2015 Ozone 
Standards'' available at https://www.epa.gov/sites/production/files/
2015-10/documents/20151001_bynumbers.pdf. Of the 241 counties, 213 are 
outside of California.
    \7\The Clean Air Act established ozone classification and 
attainment dates for the initial ozone standards of 3 years for 
``Marginal,'' 6 years for ``Moderate,'' 9 years for ``Serious,'' 15 
years for ``Severe,'' and 20 years for ``Extreme.'' 42 U.S.C. 7511. 
These deadlines have applied to subsequent ozone standards. See, e.g. 
NRDC v. EPA, Case No. 12-1321, U.S. Court of Appeals for the District 
of Columbia Circuit (Dec. 23, 2014).
---------------------------------------------------------------------------
    Prior to EPA's issuance of the 2015 ozone standards, nearly 
700 national, state, and local organizations and stakeholders 
representing businesses and jobs across the country had 
requested that EPA retain the 2008 standards.\8\ In comments on 
the proposed rule, many State environmental regulators also 
raised concerns about any revision to the 2008 standards, and 
specifically regarding the role of background ozone, both 
naturally-occurring and internationally transported 
contributions, and limitations to the exceptional events 
exclusion and other Clean Air Act tools that EPA had 
highlighted for regulatory relief to address background 
ozone.\9\
---------------------------------------------------------------------------
    \8\See July 29, 2015 Letter to Chief of Staff Denis McDonough from 
Energy and Commerce Committee Members and enclosure available at 
https://energycommerce.house.gov/sites/
republicans.energycommerce.house.gov/files/114/Letters/
20150729WHUpdated.pdf.
    \9\See, e.g. State Environmental Agency Perspectives on Background 
Ozone and Regulatory Relief (June 2015) available at http://
www.csg.org/aapca_site/documents/AAPCASurvey-
StateEnvironmentalAgencyPerspectivesonBackgroundOzoneandRegulatoryRelief
-June201.pdf.
---------------------------------------------------------------------------
    In addition to challenges relating to implementing the new 
ozone standards, State and local air agencies are increasingly 
confronting other challenges under the statutory construct of 
the NAAQS program. For example, in 2012, the Energy and 
Commerce Committee held forums with many State and local air 
regulators to examine lessons of Clean Air Act 
implementation.\10\ At these forums, State regulators 
identified a number of implementation challenges that have 
emerged since the 1990 Clean Air Act Amendments. These 
challenges ranged from the agency's failure to issue timely 
implementation regulations and guidance when standards are 
revised to specific issues relating to emissions beyond State 
regulatory control, including Federal motor vehicle engine 
standards, foreign emissions, and exceptional events, such as 
wildfires. The States identified challenges with statutory 
provisions interpreted to require States to pursue measures 
that may not be technologically or economically feasible and 
with the current statutory requirement that EPA review all 
NAAQS no later than every 5 years.
---------------------------------------------------------------------------
    \10\See Clean Air Act Forum (Part I) available at https://
energycommerce.house.gov/hearings-and-votes/event/clean-air-act-forum-
part-i; Clean Air Act Forum (Part II) available at https://
energycommerce.house.gov/hearings-and-votes/event/clean-air-act-forum-
part-ii; Clean Air Act Forum (Part III) available at https://
energycommerce.house.gov/hearings-and-votes/event/clean-air-act-forum-
part-iii.
---------------------------------------------------------------------------

                     What the Legislation Would Do

    H.R. 806 seeks to address concerns raised by State and 
local air agencies and facilitate more efficient implementation 
of ozone standards, and the NAAQS program generally.\11\ Key 
provisions would:
---------------------------------------------------------------------------
    \11\The legislation is substantially similar to HR 4775 passed by 
the House in the 114th Congress also entitled the ``Ozone Standards 
Implementation Act of 2016.'' A legislative hearing was held on April 
14, 2016 (see hearing webpage available at https://
energycommerce.house.gov/hearings-and-votes/hearings/hr-4775-ozone-
standards-implementation-act-2016 and Hearing Record, Serial No. 114-
134 available at https://www.gpo.gov/fdsys/pkg/CHRG-114hhrg20589/pdf/
CHRG-114hhrg20589.pdf). The bill passed the House on June 8, 2016 by a 
recorded vote of 234-177.
---------------------------------------------------------------------------
           Phase in implementation of the 2015 ozone 
        standards by extending the date for final designations 
        from the current 2018 to 2025, and aligning permitting 
        requirements;
           Revise the time for mandatory review of 
        NAAQS from 5 to 10 years, while allowing the EPA 
        Administrator discretion to issue revised standards 
        earlier;
           Authorize the EPA Administrator to consider 
        technological feasibility, as a secondary 
        consideration, when establishing or revising NAAQS;
           Direct the EPA Administrator to obtain 
        advice from the agency's scientific advisory committee 
        regarding potentialadverse effects prior to revising 
NAAQS, as required by section 109 of the Clean Air Act;
           Direct the EPA Administrator to issue 
        implementation regulations and guidance concurrently 
        when revising NAAQS, including with respect to 
        permitting requirements;
           Ensure that for certain ozone and 
        particulate matter nonattainment areas, States are not 
        required to include economically infeasible measures in 
        their implementation plans;
           Revise the definition of exceptional events 
        under section 319 of the Clean Air Act to include 
        droughts and extraordinary stagnation;
           Direct EPA to submit two reports to Congress 
        including (i) a report regarding the impacts of foreign 
        emissions on NAAQS compliance and related matters; and 
        (ii) a report regarding ozone formation and effective 
        control strategies; and
           Limit the applicability of particular 
        sanctions and fees on certain ozone and particulate 
        matter nonattainment areas if States demonstrate the 
        reason for nonattainment is for emissions beyond the 
        States' regulatory control.
    The specific provisions of the bill are addressed below:

Section 2--Additional Time to Implement 2015 Ozone Standards

    Section 2 of the bill would provide additional time for 
States and localities to implement the 2015 ozone standards by 
extending the date for final designations from 2018 to 2025 and 
aligning permitting requirements with the designations.
    Providing additional time to implement the 2015 standards 
will allow EPA and States time to fully implement the 2008 
ozone standards. It will also allow EPA time to review and 
develop all of its necessary implementation regulations and 
guidance to implement the new standards.\12\ It will also 
ensure that hundreds of counties already on track to meet the 
standards can come into compliance without being subjected 
unnecessarily to new regulatory burdens, paperwork 
requirements, and restrictions.\13\
---------------------------------------------------------------------------
    \12\EPA took nearly 7 years to finalize implementing regulations 
for the 2008 ozone standards. Similarly, for the agency's particulate 
matter standards announced in 2012, implementing regulations were not 
finalized for approximately three and one-half years. In addition, an 
extension of time would allow the agency more time to address any 
backlogs with respect to other pending state implementation plans for 
ozone or other standards. For example, as of the end of FY 2016, there 
were 322 backlogged plans. See EPA Congressional Justification, at p. 
561, available at https://www.epa.gov/sites/production/files/2017-05/
documents/fy-2018-congressional-
justification.pdf.
    \13\EPA has projected ``the vast majority of U.S. counties will 
meet the [2015 ozone standards] by 2025 just with the rules and 
programs now in place or underway.'' See EPA Fact Sheet available at 
https://www.epa.gov/sites/production/files/2015-10/documents/
20151001designations_permitting.pdf.
---------------------------------------------------------------------------
    Aligning permitting requirements with the designations will 
also encourage domestic manufacturing. As reflected in 
testimony, the 2015 ozone standards are already affecting 
permitting for domestic manufacturing even though nonattainment 
designations have not been promulgated.\14\ Further, to the 
extent areas are designated by the agency as being in 
nonattainment with the new standards, this is likely to deter 
investment by companies in these areas.\15\
---------------------------------------------------------------------------
    \14\See, e.g. EPA Oct. 15, 2012 Memo, available at https://
www.epa.gov/sites/production/files/2015-07/documents/timely.pdf, (``new 
or revised NAAQs ``apply to any final permit issued after the effective 
dates of the requirements unless the EPA has provided for 
grandfathering of the specific requirements for applications pending on 
the effective date of the new requirement''); see also April 1, 2010 
Memo available at https://www.epa.gov/sites/production/files/2015-07/
documents/psdnaaqs.pdf (``EPA generally interprets the CAA and EPA's 
PSD permitting program regulations to require that each final PSD 
decision reflect consideration of any NAAQS that is in effect at the 
time the permitting authority issues a final permit.'') At a February 
16, 2017 hearing before the Subcommittee on Environment, Ross 
Eisenberg, Vice President for Energy and Resources Policy for the 
National Association of Manufacturers, testified regarding the impact 
of the 2015 standards on domestic manufacturing: ``It was a 2015 
problem for domestic manufacturing. So the minute, literally the minute 
the new standards had the goalposts removed and the new ozone standards 
come into place, for permitting that is, that is what you have to hit. 
And so even though you have a couple years, and it really isn't that 
many years, but a couple years to start working on state implementation 
plans, for permitting purposes day one, the day EPA goes final, you've 
got to hit those limits.'' See Testimony available at http://
docs.house.gov/meetings/IF/IF18/20170216/105582/HHRG-115-IF18-
Transcript-20170216.pdf.
    \15\For example, at a February 16, 2017 hearing before the 
Subcommittee on Environment, Kevin Sunday, Director of Government 
Affairs for the Pennsylvania Chamber of Business and Industry, 
testified: ``. . . if we see non-attainment, for a lot of companies the 
location just gets crossed right off the list, before you even evaluate 
workforce, location, infrastructure . . .'' See Testimony available at 
http://docs.house.gov/meetings/IF/IF18/20170216/105582/HHRG-115-IF18-
Transcript-20170216.pdf.
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    Additional time would also allow for judicial review of 
legal challenges by States and other regulated entities pending 
in the D.C. Circuit.\16\ In addition to the concerns about 
whether the new standards are achievable for many counties,\17\ 
there are concerns about the costs of implementation, which are 
estimated by EPA to be $2 billion annually in 2025,\18\ but may 
be significantly higher.\19\ Questions have also been raised 
regarding EPA's projections of benefits.\20\
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    \16\Murray Energy Corporation v. EPA, No. 15-1385 (consolidated 
with 15-1392, 15-1490, 15-1491 & 15-1494), United States Court of 
Appeals for the District of Columbia Circuit. States challenging the 
standards include Arizona, Arkansas, North Dakota, New Mexico, 
Oklahoma, Utah, Wisconsin, Kentucky and Texas.
    \17\For example, at the April 14, 2016 legislative hearing on H.R. 
4775, which was substantially similar to H.R. 806, and included the 
same provisions to extend compliance dates for the 2015 standards, the 
State of Arizona's Director of Environmental Quality, Misael Cabrera, 
testified: ``We believe that the new standard is simply not achievable 
in many areas of our State. Although the Clean Air Act has five 
mechanisms to bring nonattainment areas in to compliance, these 
mechanisms are inadequate for Arizona and likely other Western 
states.''
    \18\While EPA has not provided any cost estimates for earlier 
years, the agency provides an annualized cost estimate of $2 billion in 
2025, including $1.4 billion for all States except California, and an 
additional $800 million for California post-2025. EPA's cost estimate 
in the final rule is significantly lower than its estimate in the 
proposed rule, where it estimated annual costs for a 70 ppb standard to 
be $3.9 billion (except California) in 2025. See November 2014 
Regulatory Impact Analysis for Proposed Rule at ES-14, ES-15 available 
at https://www3.epa.gov/ttn/ecas/regdata/RIAs/20141125ria.pdf.
    \19\For example, at the legislative hearing on the predecessor 
bill, H.R. 4775, the Chairman of the Texas Commission on Environmental 
Quality testified regarding EPA's cost estimates: ``My agency's 
analysis suggests those figures are dramatically incorrect. For 
example, the EPA only includes industry's costs in their analysis, not 
the states' or taxpayer's costs. Nor do they look at economic impacts 
like increased electricity costs.'' Further, EPA projected that 
``unidentified controls'' would be needed in some areas to meet a 70 
ppb standard, including for 100 percent of the NOx emissions reductions 
needed in California. See October 2015 Regulatory Impact Analysis for 
Final Rule at Table 4-9 at 4-40, 4A-5 at 4A-6 and 4A-6 at 4A-6; Tables 
3-9- and 3-10 (California) at 3-24 available at https://
www.regulations.gov/#!documentDetail;D=EPA-HQ-OAR-2013-0169-0057.
    \20\See Testimony of Louis Anthony Cox, Jr. Chief Sciences Officer, 
Nexthealth Technologies available at http://docs.house.gov/meetings/IF/
IF03/20150616/103610/HHRG-114-IF03-Wstate-CoxL-20150616.pdf and Hearing 
Record, Serial No. 114-56 available at https://www.gpo.gov/fdsys/pkg/
CHRG-114hhrg97678/pdf/CHRG-114hhrg97678.pdf; April 14, 2016 Testimony 
of Bryan Shaw, Chairman, Texas Commission on Environmental Quality, at 
pp. 1-2, available at http://docs.house.gov/meetings/IF/IF03/20160414/
104778/HHRG-114-IF03-Wstate-ShawB-20160414.pdf and Hearing Record, 
Serial No. 114-134 available at https://www.gpo.gov/fdsys/pkg/CHRG-
114hhrg20589/pdf/CHRG-114hhrg20589.pdf
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    While some commenters on the legislation have raised 
concerns that this or other provisions of the bill would ``roll 
back'' provisions of the Clean Air Act or harm our nation's 
efforts to protect air quality, nothing in H.R. 806 changes any 
existing air quality standards or regulations.\21\ The bill 
simply provides additional time and flexibility to implement 
standards under the NAAQS program in a manner that avoids 
unnecessary costs or restrictions on economic and job 
growth.\22\
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    \21\Commenters on the legislation have also raised concerns that 
under the bill, the public will not know if the air that they are 
breathing is unhealthy. The Air Quality Index is EPA's tool for 
providing the public with the most up-to-date information about air 
quality where they live. See EPA Fact Sheet available at https://
www.epa.gov/sites/production/files/2015-10/documents/
20151001_air_quality_index_updates.pdf. Nothing in the bill changes 
federal regulations (40 CFR 58.50) requiring that States and local 
agencies report Air Quality Index information to the general public on 
a daily basis. Nothing in the bill changes any requirements to monitor, 
measure, and report air quality data.
    \22\At the legislative hearing on H.R. 806, the San Joaquin Valley 
Air Pollution Control District Executive Director testified ``There is 
nothing in this bill that would roll back even a single measure that we 
have already put in place or will hold back anything that we have to do 
and we are planning to do moving forward to meet the current 
standards.'' At the legislative hearing on the predecessor bill, H.R. 
4775, he testified: ``H.R. 4775, in my opinion, provides for much 
needed streamlining of the implementation of the Clean Air Act. It does 
not roll back anything that is already in the Clean Air Act in the form 
of protections for public health, safeguarding public health and it 
does nothing to roll back any of the progress that has been made and it 
will not impede or slow down our progress as we move forward to reduce 
air pollution and improve public health.'' The Chairman of the Texas 
Commission on Environmental Quality similarly testified that the bill 
``simply provides for additional time with the implementation of the 
latest standard but it does not roll back those requirements that are 
in place.''
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Section 3(a)--Timeline for Review of NAAQS

    Section 3(a) would change the mandatory review of NAAQS 
from 5 to 10 years, while allowing the EPA Administrator 
discretion to issue revised standards earlier. Under the 
section, the Administrator would not be precluded from 
considering new evidence earlier than 10 years if warranted.
    Providing additional time for the EPA Administrator and the 
agency to complete the agency's mandatory reviews of NAAQS 
would address concerns regarding the current review cycle 
raised by numerous air regulators,\23\ and supported at the 
legislative hearing on the bill.\24\ Allowing additional time 
is reasonable because the agency does not typically complete 
its review within the current statutory time frame.\25\ As set 
forth on the agency website, the review process is ``a lengthy 
undertaking,'' which involves a ``Planning'' phase, 
``Integrated Science Assessment,'' ``Risk/Exposure 
Assessment,'' ``Policy Assessment,'' and a rulemaking process 
for each review--which itself can be a multi-year process.
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    \23\See March 22, 2017 Memorandum, supra n. 3, at footnote 21.
    \24\At the legislative hearing on H.R. 806, the President of the 
Association of Air Pollution Control Agencies and Kentucky's air 
quality director, testified ``H.R. 806 provides for a more practical 
and attainable 10-year interval for the review and potential revision 
of air quality standards. Moving forward, this time period will be 
essential to achieve the most difficult, the most expensive remaining 
increments of air quality improvement.'' The Director of Maine's Bureau 
of Air Quality testified: ``The changes, as proposed in HR 806 . . . to 
extend the time frame for standard review from every five years to 
every ten years, including concurrently published, clearly defined 
implementing regulations, would allow for due process to be followed 
and fulfilled. This would more effectively and efficiently utilize 
federal, state, and individual facility resources to establish a 
standard and work for the improvement of air quality and protection of 
the people of our nation.'' At the legislative hearing on the 
predecessor bill, H.R. 4775, the Chairman of the Texas Commission on 
Environmental Quality testified: ``By lengthening the required review 
period from five to ten years, it will ensure the EPA does not rush to 
lower given standards only to comply with a statutory deadline. 
Furthermore, it will give states more time to comply with previous 
standards before getting saddled with more stringent standards and 
facing economic and developmental sanctions for nonattainment.'' The 
Executive Director of the Utah Dept. of Environmental Quality also 
testified: ``In general, extending the 5-year NAAQS review cycle so 
that it better aligns with the prescribed NAAQS implementation 
timelines is appropriate.'' The Executive Director of the San Joaquin 
Valley Air Pollution Control District also testified: ``H.R. 4775 helps 
reduce the current chaotic nature of the transition between standards 
by requiring that EPA issue guidance on implementing new standards in a 
timely manner and extending the timeframe to review new standards from 
5 years to 10 years.''
    \25\EPA's current process for reviewing NAAQS is described by the 
agency on its website at https://www.epa.gov/criteria-air-pollutants/
process-reviewing-national-ambient-air-quality-standards. For the list 
of current NAAQS and links to the specific review periods for each 
criteria pollutants, see https://www.epa.gov/criteria-air-pollutants/
naaqs-table.
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    Providing the EPA Administrator with additional time to 
review the standards is also reasonable because, as noted 
above, EPA itself can take years to develop the regulations and 
guidance needed to implement the standards being reviewed. Yet, 
under the current five year schedule, the review process must 
begin long before the standards being reviewed have even begun 
to be implemented. For example, EPA set its 2008 ozone 
standards in March of that year, and then began the process to 
review those standards in September of that same year, only six 
months after the standards had been published.\26\
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    \26\See Notice of Workshop and Call for Information on Integrated 
Science Assessment for Ozone, 73 Fed. Reg. 56581 (Sept. 29, 2008).
---------------------------------------------------------------------------
    The NAAQS review process, moreover, requires States to 
expend substantial resources, including review of scientific 
assessments and proposed rules, while at the same time they are 
also implementing multiple existing standards. For example, 
States and local air agencies are currently required to 
implement standards for ozone, particulate matter, and sulfur 
dioxide. For each of these new standards, States must make 
designations and then prepare and comply with implementation 
plans. Under the current five-year review cycle, States and 
local air regulators may be required to divert resources away 
from implementing an existing standard to focus on the review 
of that same standard that has yet to be implemented.

Section 3(b)--Consideration of Technological Feasibility

    Section 3(b) would authorize the EPA Administrator to 
consider technological feasibility when selecting among a range 
of potential standards that are supported by public health 
data. In particular, this section states that if the EPA 
Administrator, in consultation with EPA's independent 
scientific advisory committee, finds a range of levels of air 
quality are requisite to protect public health with an adequate 
margin of safety, then ``the Administrator may consider, as a 
secondary consideration, likely technological feasibility in 
establishing and revising the national primary ambient air 
quality standard for his pollutant.'' (Emphasis added).
    Section 3(b) does not change the Clean Air Act's 
requirement that standards be based on protection of public 
health. The bill simply clarifies that the EPA Administrator 
has the discretion to consider technological feasibility when 
choosing among a range of levels identified and supported by 
the science as protective of public health. This is a 
clarification for future Administrators that Congress considers 
technological feasibility to be a reasonable part of the 
decision-making process when policy choices must be made among 
a range of scientifically valid options.\27\
---------------------------------------------------------------------------
    \27\At the legislative hearing on the predecessor bill, H.R. 4775, 
the Executive Director of the San Joaquin Valley Air Pollution Control 
District testified: ``I believe that standards should be set with 
science only and I don't think this bill really goes away from that. 
What it says is that when CASAC makes a recommendation and they give a 
range to the administration to consider, right now it goes through the 
administration. Depending on who's in charge they make these various 
assumptions and set the standard where it needs to be and then they 
come up with something. This really brings some order, some law into 
how you can actually pick within that range what is an appropriate 
standard.'' Similarly, the Chairman of the Texas Commission on 
Environmental Quality testified: ``The [Clean Air] Act's requirement 
that the EPA ignore technological and economic considerations might 
have made sense forty years ago when it was initially passed. However, 
pollution levels have been lowered to such a degree that the law of 
diminishing returns has made it more and more difficult to continue to 
reduce pollutant levels at all, much less in a way that is not 
burdensome economically.''
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Section 3(c)--Consideration of Potential Adverse Effects

    Section 3(c) would direct the EPA Administrator to consider 
potential adverse effects when setting NAAQS standards. In 
particular, under section 109 of the Clean Air Act, EPA's 
independent scientific advisory committee is required to 
provide advice to the agency about the potential adverse 
effects of implementing new air quality standards. 42 U.S.C. 
7409(d)(2)(C)(iv). While the Act expressly requires that the 
Clean Air Scientific Advisory Committee (CASAC) ``advise the 
Administrator of any adverse public health, welfare, social, 
economic, or energy effects which may result from various 
strategies for attainment and maintenance of such national 
ambient air quality standards,'' EPA does not currently 
implement this statutory provision. To the contrary, in May 
2015, the Government Accountability Office issued a report 
indicating CASAC has never provided such advice because EPA has 
never requested it, and that EPA has no plans to ask CASAC to 
provide advice on potential adverse effects.\28\
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    \28\See GAO Report entitled ``EPA SCIENCE ADVISORY PANELS, 
Preliminary Observations on the Processes for Providing Scientific 
Advice,'' GAO-15-636T, May 20, 2015 available at http://gao.gov/assets/
680/670288.pdf.
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    Such advice would help inform the NAAQS process and is 
relevant to developing and implementing new standards. In a 
survey by the Association of Air Pollution Control Agencies, 80 
percent of State air agencies said that CASAC advice on 
potential adverse public health, welfare, social, economic, or 
energy effects would be helpful to their agency.\29\ Section 
3(c) of the bill will ensure this occurs by directing the EPA 
Administrator, prior to establishing or revising a NAAQS, to 
request, and CASAC to provide, such advice.\30\
---------------------------------------------------------------------------
    \29\The survey is available at http://www.csg.org/aapca_site/
events/documents/SurveyResults_000.pdf.
    \30\Concerns have been raised by States regarding the agency's 
failure to implement this statutory provision. See, e.g. May 14, 2014 
Letter from Senator Vitter available at https://web.archive.org/web/
20141208042421/http:/www.epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore;_id=999cb305-9457-4fdd-a918-
aebf11658e14; see also Response from Louisiana Dept. of Environmental 
Quality available at https://web.archive.org/web/20150110124050/http:/
www.epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore;_id=78659f58-83aa-4c06-9832-
86d90efb0b7d; Response from Mississippi Dept. of Environmental Quality 
available at https://web.archive.org/web/20150110124050/http:/
www.epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore;_id=78659f58-83aa-4c06-9832-
86d90efb0b7d; Response from North Carolina Department of Environment 
and Natural Resources available at https://web.archive.org/web/
20150110133105/http:/www.epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore;_id=0ba945cc-f16f-4e95-ab47-
8427c20a9f94; Response from Texas Commission on Environmental Quality 
available at https://web.archive.org/web/20150110123616/http:/
www.epw.senate.gov/public/
index.cfm?FuseAction=Files.View&FileStore;_id=e3c917db-ccf9-4c22-8d8b-
d783458fd5fe.
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Section 3(d)--Timely Implementing Regulations and Guidance

    Section 3(d) requires EPA to issue implementation guidance 
when it issues new standards.\31\ Under the bill, if EPA fails 
to provide such information, the standards will not apply to 
preconstruction permits until such guidance has been 
promulgated. This simply creates an incentive for EPA to be 
more efficient, and provides relief for States and regulated 
entities burdened by regulatory deadlines and a lack of needed 
guidance from the agency.\32\ While this would ensure EPA has 
an incentive to take timely action, this subsection also 
expressly provides that nothing prevents States, local, or 
tribal permitting authorities from imposing more stringent 
permitting requirements for preconstruction permit 
applications.
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    \31\At a February 16, 2017 hearing before the Subcommittee, Kevin 
Sunday, Director of Government Affairs for the Pennsylvania Chamber of 
Business and Industry, testified, ``[n]ew regulatory obligations are 
being handed down faster than it takes to get a permit, and the 
obligations have become inordinately complex. State regulators are tied 
up due to a lack of guidance coming from federal agencies, and we would 
encourage Congress to take a hard look at how national ambient air 
quality standards are revised and implemented.'' See Testimony 
available at http://docs.house.gov/meetings/IF/IF18/20170216/105582/
HHRG-115-IF18-Transcript-20170216.pdf.
    \32\During the Committee's Clean Air Act Forums in 2012, State 
regulators specifically raised concerns about the lack of timely 
implementing regulations and guidance on planning.\32\ See, e.g. 
Response of Martha Rudolph, Colorado Dept. of Public Health and the 
Environment, available at https://energycommerce.house.gov/sites/
republicans.energycommerce.house.gov/files/analysis/CAAforum/20121129/
Rudolph.pdf) (``The absence of timely implementation guidance produces 
a lack of clarity on [state implementation plan] expectations, and 
often creates considerable uncertainty in the planning process . . 
.''); see also, e.g. Response of Teresa Marks of the Arkansas 
Department of Environmental Quality available at https://
energycommerce.house.gov/sites/republicans.energycommerce.house.gov/
files/analysis/CAAforum/20120731/Marks.pdf) (``Too often `standards' 
are promulgated without the technical implementation rules in place. 
This places States in an extremely difficult position . . .'')
---------------------------------------------------------------------------
    Under this subsection, furthermore, new manufacturing and 
industrial facilities would continue to be required to install 
best available control technology to reduce emissions even 
where EPA fails to issue timely implementation regulations. The 
subsection expressly provides that it may not be construed ``to 
eliminate the obligation of a preconstruction permit applicant 
to install best available control technology and lowest 
achievable emission rate technology, as applicable.''

Section 3(e)--Contingency Measures

    Currently, the Clean Air Act requires that States and 
localities include ``contingency measures'' in their compliance 
plans for nonattainment areas. While ``contingency measures'' 
may be reasonable for ``Moderate'' or ``Serious'' nonattainment 
areas, for ``Extreme'' ozone nonattainment areas States and 
localities should be pursuing all available control 
measures.\33\ Currently, however, failure to include 
contingency measures in ``Extreme'' areas may prevent approval 
of compliance plans. Section 3(e) would simply eliminate the 
mandate for holding back measures as contingencies in areas 
classified as Extreme nonattainment.
---------------------------------------------------------------------------
    \33\At the legislative hearing on H.R. 806 the Executive Director 
of the San Joaquin Air Pollution Control District noted that ``[t]he 
requirement to have contingency measures in areas that are designed as 
extreme or classified as extreme nonattainment is actually detrimental 
to air quality and getting clean air as rapidly as possible.'' He 
testified this was a ``classic case of the well-intentioned provisions 
that were included in the Clean Air Act over 25 years ago that are now 
leading to unintended consequences . . .'' ``By definition, a region is 
classified as extreme nonattainment if, despite implementing all 
available control measures, reductions achieved are not enough to meet 
the standard. The only way a region can meet the contingency 
requirements is to hold back on implementing clean air measures and 
save them for later as a contingency. Of course, this would result in 
delays in cleaning the air and reducing air pollution. As currently 
written, the requirements in the Clean Air Act that require extreme 
areas to include all available measures to ensure expeditious 
attainment and the requirement for holding back measures as contingency 
are contradictory.''
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Section 3(f), (g)--Plan Submissions and Requirements

    Sections 3(f) and (g) clarify that economic feasibility, in 
addition to technological achievability, can be taken into 
consideration in certain requirements for plans for certain 
ozone and particulate matter nonattainment areas.\34\ These 
provisions will help to ensure meaningful consideration of 
economic feasibility for States and localities working to 
implement new standards.
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    \34\At the legislative hearing on the predecessor bill, H.R. 4775, 
the Executive Director of the San Joaquin Air Pollution Control 
District explained: ``Meeting the new standards that approach 
background concentrations call for transformative measures that require 
time to develop and implement. These transformative measures require 
new technologies that in many cases are not yet commercially available 
or even conceived. . . . In establishing deadlines and milestones, the 
Act should be amended to require control measures that lead to the most 
expeditious attainment of health based standards while taking into 
account technological and economic feasibility.''
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Section 3(h)--Exceptional Events

    Section 3(h) would modify the definition of ``exceptional 
events'' in section 319 of the Clean Air Act to include 
droughts and extraordinary stagnation.\35\ Specifically, this 
section of the bill would provide that an exceptional event may 
include stagnation of air masses that are not ordinarily 
occurring, and may also include a meteorological event 
involving high temperatures or lack of precipitation.\36\
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    \35\The ``exceptional events'' provision seeks to provide relief 
for areas that may have an exceedance or violate the standards due to 
events beyond their control. At the legislative hearing on H.R. 806, 
the Administrator for the Air Quality Division of the Wyoming Dept. of 
Environmental Quality testified: ``Wyoming's experience has been that 
the exceptional event demonstration process has been costly and 
resource intensive. Specifying qualifying events and streamlining the 
process will reduce these costs. . . . When there is no action and 
exceptional event demonstrations are ignored, the result is inflated 
monitored data that misrepresents the prevailing air quality conditions 
included in modeling, unnecessarily delays permitting, and inaccurately 
characterizes air quality for the public.'' At the legislative hearing 
on the predecessor bill, H.R. 4775, the Director of the Arizona Dept. 
of Environmental Quality testified: ``[T]he Clean Air Act will regulate 
an area that exceeds the standard on four days only the same as an area 
that exceeds the standard every day. So an area that exceeds the 
standards on these four days of the year versus an area that exceeds 
that standard every single day of the year get treated the same and 
that is the reason why you need exceptional events.''
    \36\At the legislative hearing on the predecessor bill, H.R. 4775, 
the Executive Director of the San Joaquin Air Pollution Control 
District testified: ``Currently, the Clean Air Act does not allow 
stagnation or lack of precipitation to qualify as exceptional events. 
The West Coast recently experienced drought conditions that had not 
been experienced since the late 1800s with some locations breaking 
records over 100 years old. . . . Due to the extreme drought, 
stagnation, strong inversions, and historically dry conditions 
experienced over the winter of 2013/14, the Valley could not show 
attainment even if the Valley eliminated all sources of air pollution 
and had zero emissions of [fine particulate matter] released into the 
atmosphere for the following year. . . . Extraordinary circumstances 
that arise from 100-year droughts should qualify as exceptional 
events.'' The Director of the Arizona Dept. of Environmental Quality 
also testified to the need for relief relating to exceptional events: 
``[T]he exceptional events rule is of dubious value to Yuma County, if 
not the whole country. Although Arizona has been a national leader in 
the development of exceptional event documentation for dust events, the 
process for documenting and receiving EPA approval of ozone exceptional 
events has not been explained, will be almost certainly resource 
intensive, and is difficult to predict.''
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    Nothing in this subsection does away with the detailed 
statutory requirements under section 319 or the procedures and 
guidelines that EPA has laid out for demonstrating exceptional 
events.\37\ Nor does anything in the bill do away with 
requirements to measure air quality, or to make that air 
quality data available to the public.
---------------------------------------------------------------------------
    \37\Clean Air Act Section 319(b) requires a showing that an event 
has affected air quality in such a way that there was (i) a clear 
causal relationship between the specific event and the monitored 
exceedance or violation; (ii) the event was not reasonably controllable 
or preventable; and (iii) the event was caused by human activity that 
is unlikely to recur at a particular location or was a natural event. 
42 U.S.C. 7619.
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Section 3(i)--Foreign Emissions

    Section 3(i) would require that EPA submit a report to 
Congress within 2 years on foreign emissions and their impact 
on compliance with the NAAQS in the United States. It would 
also require the agency to provide information regarding the 
agency's procedures and timelines for disposing of petitions 
for relief under 179B of the Clean Air Act, and whether the 
Administrator recommends any statutory changes to facilitate 
more efficient review and disposition of such petitions.
    Currently, the impact of foreign emissions, particularly 
emissions transported from outside North America, is not fully 
understood but may be significant.\38\ Further, while States 
and local air quality management agencies have requested relief 
under Section 179B, EPA has advised the Committee that only 5 
petitions have ever been granted by the agency. Changes to 
promote more efficient disposition of such petitions would help 
to ensure that areas, particularly in the Western United 
States, are not subjected to penalties and sanctions under the 
Clean Air Act due to foreign emissions.
---------------------------------------------------------------------------
    \38\At the legislative hearing on H.R. 806 Administrator for the 
Air Quality Division of the Wyoming Dept. of Environmental Quality 
testified: ``By lowering the ozone standard without having a full 
understanding of the extent and magnitude of influence that 
internationally transported ozone and precursors has on areas in the 
Western US, placed an unreasonable burden on states that face impact 
from international pollution. International contribution also affects 
regions of the United States that do not directly border other 
countries. . . . It would be beneficial to states for EPA to conduct 
and review research in the area of long-range international transport 
and then translate those findings into the regulatory framework.'' At 
the legislative hearing on the predecessor bill, H.R. 4775, the 
Director of the Utah Dept. of Environmental Quality testified: 
``International transport can, at times, account for up to 85 percent 
of the 8-hour ambient ozone concentration in some Western states. Many 
areas in the West have little chance of identifying sufficient controls 
to achieve attainment, leading to severe consequences.'' In February 
2016, EPA held a two-day workshop in Phoenix on background ozone that 
considered, inter alia, international transport. For information on the 
workshop, see https://www.epa.gov/ozone-pollution/background-ozone-
workshop-and-information.
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Section 3(j)--Ozone Formation and Control Strategies

    Section 3(j) would require that the Administrator conduct a 
study on the atmospheric formation of ozone and effective 
control strategies, including with regard to the relative 
contribution of manmade and naturally occurring NOx, VOCs, and 
other pollutants in ozone formation in urban and rural areas, 
and with regard to wintertime ozone, that the study be peer 
reviewed in accordance with the requirements applicable to 
highly influential scientific assessments. Under this 
subsection, the Administrator is required to submit a report to 
Congress describing the results of the study and incorporate 
said results into any Federal rules and guidance implementing 
the 2015 ozone standards.\39\
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    \39\At the legislative hearing on H.R. 806 Administrator for the 
Air Quality Division of the Wyoming Dept. of Environmental Quality 
testified: ``Background Ozone in the Western United States is not well 
understood. When EPA proposed the Ozone Standard that was ultimately 
adopted in 2015, it largely dismissed the data from the sole high-
elevation site in the Denver urban area case study as an outlier . . . 
. By omitting that study, EPA failed to adequately consider or 
characterize background ozone conditions in higher elevations such as 
Wyoming. Without a better understanding of background and what the 
anthropogenic contribution is, it is difficult and ineffectual for 
rural intermountain western states to develop plans that control 
contributing sources. Background ozone is a reality in the mountain 
west and likely offsets some of the emission reductions achieved in the 
West. At the legislative hearing on the predecessor bill, H.R. 4775, 
the Executive Director of Utah's Department of Environmental Quality 
testified: ``As a result of these significant [nitrogen oxide] emission 
reductions, ozone levels have been improving throughout the eastern 
U.S. Equivalent NOx emission reductions have also been occurring at 
western power plants . . . and mobile source emission reductions have 
also been substantial, but there have not been corresponding decreases 
in ozone levels in the west.'' Further, ``[i]n rural areas where 
biogenic (natural source) emissions are the majority of the inventory . 
. . reductions in anthropogenic VOC are unlikely to have any effect on 
ambient ozone concentrations.'' The Director also testified: ``Most 
scientific studies of ozone have focused on summertime ozone in urban 
areas; and the summer ozone-formation chemistry is well characterized. 
Wintertime ozone, on the other hand, is a relatively new phenomenon, 
limited to a few isolated basins in the intermountain west, and its 
causes are not fully understood.''
---------------------------------------------------------------------------

Section 4--Applicability of Certain Sanctions and Fees

    Section 4 limits the applicability of sanctions and fees if 
certain nonattainment areas are already imposing the most 
stringent emissions controls required under the Act, but cannot 
attain air quality standards because of emissions that are 
outside State and local regulatory control. The provision 
addresses concerns raised by State regulators that sanctions 
and fees intended to incentivize States and local governments 
to impose all required controls no longer make sense for areas 
in which all such controls--within their authority--are already 
in place.\40\
---------------------------------------------------------------------------
    \40\At the Committee's Clean Air Act Forums in 2012, the Executive 
Officer of California's South Coast Air Quality Management District 
commented on Section 185 penalties for areas in extreme ozone 
nonattainment: ``In the South Coast region, major sources are already 
subject to the most stringent controls in the nation, and requirements 
for existing sources are continuously updated to reflect technology 
advances. In our region, the [section 185] fee is fundamentally unfair 
in that ALL stationary sources represent only about 10% of our region's 
NOx emissions, with mobile sources contributing 90%, yet mobile sources 
are not penalized. Twenty years ago, Congress may have assumed that 
stationary sources would be a bigger percentage of the air pollution 
problem than they are; the [section 185] provision is now outdated.'' 
In the legislative hearing for HR 806, the Executive Director of the 
San Joaquin Air Pollution Control District stated for the record: 
``Through decades of implementing effective air quality strategies, air 
pollution from San Joaquin Valley businesses has been reduced by over 
80% through investment of over $40 billion by regulated sources. The 
pollution released by industrial facilities, agricultural operations, 
and cars and trucks are at historical lows for all pollutants. San 
Joaquin Valley residents' exposure to high smog levels has been reduced 
by over 90%. Unfortunately, after all this investment and sacrifice, we 
have reached a point where we cannot attain the federal standards even 
if we eliminate all Valley businesses, agricultural operations, or 
trucks traveling through San Joaquin Valley. We believe that common 
sense and fairness dictate that federal law include an overriding 
provision in federal law to prohibit imposition of federal sanctions on 
local regions, including states, where their inability to attain 
federal standards is due to pollution from sources outside their 
regulatory authority.''
    \41\Witnesses at that hearing included: i) Bryan W. Shaw, Chairman, 
Texas Commission on Environmental Quality; ii) Seyed Sadredin, 
Executive Director/Air Pollution Control Officer, San Joaquin Valley 
Air Pollution Control District; iii) Misael Cabrera, Director, Arizona 
Department of Environmental Quality; iv) Alan Matheson, Executive 
Director, Utah Department of Environmental Quality; and Ali 
Mirzakhalili, Director, Division of Air Quality, Delaware Department of 
Natural Resources and Environmental Control. EPA also provided a 
written statement for the record. See Written Statement of Janet 
McCabe, Acting Assistant Administrator, Office of Air and Radiation, 
EPA available at http://docs.house.gov/meetings/IF/IF03/20160414/
104778/HHRG-114-IF03-Wstate-ShawB-20160414.pdf and Hearing Record, 
Serial No. 114-134 available at https://www.gpo.gov/fdsys/pkg/CHRG-
114hhrg20589/pdf/CHRG-114hhrg20589.pdf.
---------------------------------------------------------------------------
    The provision applies specifically to areas designated as 
severe or extreme ozone nonattainment or as serious particulate 
matter nonattainment. Under this provision, sanctions under 
section 179 for a deficiency in a State implementation plan or 
penalties under section 185 for failure to show the affected 
areas have attained the NAAQS by the applicable date will not 
apply if the State demonstrates that the deficiency or failure 
is due to emissions beyond its regulatory control. Such 
emissions include international and interstate emissions, 
emissions from exceptional events, and mobile source emissions, 
such as emissions from motor vehicles and other EPA-regulated 
engines.
    The provision does not affect underlying obligations of 
State, or local air pollution control authorities to implement 
all the measures within their authority under the Clean Air Act 
to attain air quality standards. It also requires States that 
would use this provision to renew the demonstrations of their 
emissions beyond their regulatory control every five years. And 
the provision is consistent with existing Clean Air Act 
provisions, including section 110(a), section 126, section 
179B, section 182 (h), and section 185 (e), which provide 
relief from adverse regulatory consequences for emissions 
outside of State or local authority to control.

                                Hearings

    On March 22, 2017, the Subcommittee on Environment held a 
legislative hearing on H.R. 806. The hearing was entitled 
``H.R. 806, Ozone Standards Implementation Act of 2017,'' and 
the following witnesses testified:
           Sean Alteri, Director, Division of Air 
        Quality, Kentucky Department of Environmental 
        Protection;
           Marc A. R. Cone, P.E., Director, Bureau of 
        Air Quality, Maine Department of Environmental 
        Protection;
           Kurt Karperos, Deputy Executive Officer, 
        California Air Resources Board;
           Nancy Vehr, Air Quality Administrator, 
        Wyoming Department of Environmental Quality;
           Homer Boushey, M.D., Division of Pulmonary/
        Critical Care Medicine, University of California, San 
        Francisco; and
           Seyed Sadredin, Executive Director/Air 
        Pollution Control Officer, San Joaquin Valley Air 
        Pollution Control District.
    In the 115th Congress, the Subcommittee on Environment also 
held a hearing entitled ``Modernizing Environmental Laws: 
Challenges and Opportunities for Expanding Infrastructure and 
Promoting Development'' on February 16, 2017. That hearing 
examined, inter alia, potential challenges to expanding our 
nation's infrastructure and domestic manufacturing that are 
associated with the implementation of EPA's ozone and other 
national ambient air quality standards under the agency's NAAQS 
program.
    In the 114th Congress, the Committee's Subcommittee on 
Energy and Power also held a hearing entitled ``H.R. 4775, 
Ozone Standards Implementation Act of 2016,'' which included 
provisions substantially similar to those included in H.R. 
806.\41\ That Subcommittee also held a hearing entitled ``EPA's 
Proposed Ozone Rule'' on June 12, 2015, and a joint hearing 
with the Subcommittee on Commerce, Trade, and Manufacturing 
entitled ``EPA's Proposed Ozone Rule: Potential Impacts on 
Manufacturing'' on June 16, 2015.
---------------------------------------------------------------------------
    \41\Witnesses at that hearing included: i) Bryan W. Shaw, Chairman, 
Texas Commission on Environmental Quality; ii) Seyed Sadredin, 
Executive Director/Air Pollution Control Officer, San Joaquin Valley 
Air Pollution Control District; iii) Misael Cabrera, Director, Arizona 
Department of Environmental Quality; iv) Alan Matheson, Executive 
Director, Utah Department of Environmental Quality; and Ali 
Mirzakhalili, Director, Division of Air Quality, Delaware Department of 
Natural Resources and Environmental Control. EPA also provided a 
written statement for the record. See Written Statement of Janet 
McCabe, Acting Assistant Administrator, Office of Air and Radiation, 
EPA available at http://docs.house.gov/meetings/IF/IF03/20160414/
104778/HHRG-114-IF03-Wstate-ShawB-20160414.pdf and Hearing Record, 
Serial No. 114-134 available at https://www.gpo.gov/fdsys/pkg/CHRG-
114hhrg20589/pdf/CHRG-114hhrg20589.pdf.
---------------------------------------------------------------------------
    In the 113th Congress, the Subcommittee on Energy and Power 
also held a hearing entitled ``Promoting New Manufacturing 
Act'' on May 21, 2014. That hearing examined a discussion draft 
of H.R. 4795, which was introduced by Rep. Scalise on May 30, 
2014 and passed by the House of Representatives on November 20, 
2014. That bill included provisions similar to those reflected 
in sections 2(a) and 3(d) of H.R. 806 relating to 
preconstruction permits.

                        Committee Consideration

    On June 15, 2017, the Subcommittee on Environment met in 
open markup session to consider H.R. 806, and forwarded the 
bill to the full Committee, without amendment, by a record vote 
of 12 ayes and 8 nays. During the markup, two amendments were 
offered and rejected.
    On June 28, 2017, the Committee on Energy and Commerce met 
in open markup session to consider H.R. 806. During the markup, 
three amendments were offered, of which one was offered and 
approved by voice vote, and two were offered and rejected by a 
roll call vote. A motion by Mr. Walden to order H.R. 806 
reported to the House, as amended was agreed to by a record 
vote of 29 ayes and 24 nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. The 
following reflects the record votes taken during the Committee 
consideration:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee held a hearing on March 22, 2017, and made findings 
that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 806 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 1974 
at the time this report was filed, the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974 was not 
available.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
facilitate more efficient implementation of the ozone standards 
and NAAQS generally.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 806 is known to be duplicative of another Federal program, 
including any program that was included in a report to Congress 
pursuant to section 21 of Public Law 111-139 or the most recent 
Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974. At the time this report was 
filed, the estimate was not available.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 806 contains no earmarks, limited tax 
benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the Committee 
estimates that enacting H.R. 806 specifically directs to be 
completed no specific rulemakings within the meaning of 5 
U.S.C. 551 that would not otherwise be issued by the agency.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

    The legislation includes the following provisions:

Section 1. Short title

    This section provides the short title of ``Ozone Standards 
Implementation Act of 2017.''

Section 2. Facilitating state implementation of existing ozone 
        standards

    This section provides a schedule for implementation of 
NAAQS for ground-level ozone published in 2015. Section 2(a) 
provides that States shall submit designations to implement the 
2015 NAAQS for ground-level ozone not later than October 26, 
2024. The EPA Administrator shall promulgate final designations 
with respect to those standards not later than October 26, 
2025, and states shall submit implementation plans not later 
than October 26, 2026.
    Section 2(b)(1) provides the standards shall not apply to 
the review and disposition of a preconstruction permit 
application required under title I of the Clean Air Act (CAA) 
(42 U.S.C. 7401 et seq.) if the Administrator or the State, 
local, or tribal permitting authority, as applicable, has 
determined the application to be complete prior to the date of 
promulgation of final designation of an area, or has published 
a public notice of a preliminary determination or draft permit 
before the date that is 60 days after the date of promulgation 
of final designation.
    Section 2(b)(2) provides that the section shall not be 
construed to eliminate the obligation of a preconstruction 
permit applicant to install best available control technology 
and lowest achievable emission rate technology, as applicable, 
or limit the authority of a State, local, or tribal permitting 
authority to impose more stringent emissions requirements than 
the NAAQS.

Section 3. Facilitating State implementation of National Ambient Air 
        Quality Standards

    This section includes provisions to facilitate more 
efficient implementation of NAAQS by States.
    Section 3(a)(1) would extend the current NAAQS review cycle 
for criteria pollutants from five years to ten years. Section 
3(a)(2) would provide that no revision of the ozone standards 
shall be proposed prior to October 26, 2025.
    Section 3(b) provides that the Administrator, when 
establishing or revising a NAAQS, may consider, as a secondary 
consideration, likely technological feasibility.
    Section 3(c) provides that the Administrator, prior to 
establishing or revising a NAAQS, shall request, and the Clean 
Air Scientific Advisory Committee shall provide, the advice 
provided for in CAA section 109(d)(2)(C)(iv) regarding any 
adverse public health, welfare, social, economic, or energy 
effects, which may result from various strategies for 
attainment and maintenance of such national ambient air quality 
standards.
    Section 3(d) provides that the Administrator, when 
establishing or revising a NAAQS, shall concurrently publish 
implementing regulations and guidance as necessary to assist 
States, permitting authorities, and permitting applicants, and 
that the new or revised NAAQS shall not apply to 
preconstruction permit applications until such final 
regulations and guidance have been published.
    Section 3(e) provides that in Extreme ozone nonattainment 
areas, contingency measures are not required to be included in 
nonattainment plans.
    Sections 3(f)(1), (2), and (3) ensure that economic 
feasibility, in addition to technological achievability, be 
taken into consideration in certain requirements for plans for 
Moderate, Serious, and Extreme ozone nonattainment areas. 
Section 3(f)(4) eliminates certain demonstration requirements 
in approving provisions of an implementation plan for an 
Extreme ozone nonattainment and which anticipates development 
of new control techniques or improvement of existing control 
technologies.
    Section 3(g) provides that, for particulate matter 
nonattainment areas, the milestones that must be included in 
plans to show reasonable further progress must take into 
account technological achievability and economic feasibility.
    Section 3(h) provides that, with respect to air quality 
monitoring data influenced by exceptional events, an 
exceptional event may include stagnation of air masses that are 
not ordinarily occurring, and may also include a meteorological 
event involving high temperatures or lack of precipitation.
    Section 3(i) provides that within two years of enactment of 
the Act, the Administrator, in consultation with States, shall 
submit to Congress a report on (i) the extent to which foreign 
sources of air pollution impact the area designations and the 
attainment and maintenance of NAAQS; (ii) the EPA's procedures 
and timelines for disposing of petitions relating to emissions 
from sources emanating outside the United States that are 
submitted pursuant to section 179B(b) of the CAA; (iii) the 
total number of such petitions received by the agency and 
related information; and (iv) whether the Administrator 
recommends any statutory changes to facilitate more efficient 
review and disposition of such petitions.
    Section 3(j) provides that the Administrator shall, in 
consultation with the National Oceanic and Atmospheric 
Administration, (i) conduct a study on the atmospheric 
formation of ozone and effective control strategies, including 
with regard to the relative contribution of manmade and 
naturally occurring nitrogen oxides, volatile organic 
compounds, and other pollutants in ozone formation in urban and 
rural areas, and with regard to wintertime ozone; (ii) that the 
study be peer reviewed in accordance with the requirements 
applicable to highly influential scientific assessments; (iii) 
that the Administrator submit a report to Congress describing 
the results of the study; and (iv) that the Administrator 
incorporate the results of the study into any Federal rules and 
guidance implementing the 2015 ozone standards.

Section 4. Applicability of sanctions and fees if emissions beyond 
        control

    This section provides that, with respect to any 
nonattainment area classified as severe or extreme for ozone or 
as serious for particulate matter, sanctions for implementation 
plan deficiencies under section 179 or fees for failure to 
attain the air quality standard under section 185 will not 
apply if the State demonstrates that the State would have 
avoided the deficiencies or attained the standard but for (i) 
emissions emanating from outside the nonattainment area, (ii) 
emissions from an exceptional event, or (iii) emissions from 
mobile sources that are beyond the control of the State to 
reduce or eliminate. The inapplicability of sanctions and fees 
under this section does not affect any obligations under the 
Act to implement measures to attain national ambient air 
quality standards.

Section 5. Definitions

    This section contains the following definitions:
    (1) The term ``Administrator'' means the EPA Administrator.
    (2) The term ``Best Available Control Technology'' has the 
meaning given that term in CAA section 169(3).
    (3) The term ``Highly Influential Scientific Assessment'' 
means a highly influential scientific assessment as defined in 
the publication of the Office of Management and Budget entitled 
``Final Information Quality Bulletin for Peer Review'' (70 Fed. 
Reg. 2664 (January 14, 2005)).
    (4) The term ``Lowest Achievable Emission Rate'' has the 
meaning given that term in CAA section 171(3).
    (5) The term ``national ambient air quality standard'' 
means a national ambient air quality standard promulgated 
pursuant to CAA section 109.
    (6) The term ``Preconstruction Permit'' means a permit that 
is required under title I of the CAA (42 U.S.C. 7401 et seq.) 
for the construction or modification of a stationary source, 
and includes any such permit issued by the EPA or a State, 
local, or tribal permitting authority.
    (7) The term ``2015 Ozone Standards'' means the national 
ambient air quality standard for ozone published in the Federal 
Register on October 26, 2015 (80 Fed. Reg. 65292).

Section 6. No Additional Funds Authorized

    This section provides that no additional funds are 
authorized to carry out the requirements of the Act and 
amendments made by the Act, and that such requirements shall be 
carried out using amounts otherwise authorized.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

                             CLEAN AIR ACT


             TITLE I--AIR POLLUTION PREVENTION AND CONTROL


Part A--Air Quality and Emission Limitations

           *       *       *       *       *       *       *



                 national ambient air quality standards

  Sec. 109. (a)(1) The Administrator--
          (A) within 30 days after the date of enactment of the 
        Clean Air Amendments of 1970, shall publish proposed 
        regulations prescribing a national primary ambient air 
        quality standard and a national secondary ambient air 
        quality standard for each air pollutant for which air 
        quality criteria have been issued prior to such date of 
        enactment; and
          (B) after a reasonable time for interested persons to 
        submit written comments thereon (but no later than 90 
        days after the initial publication of such proposed 
        standards) shall by regulation promulgate such proposed 
        national primary and secondary ambient air quality 
        standards with such modifications as he deems 
        appropriate.
  (2) With respect to any air pollutant for which air quality 
criteria are issued after the date of enactment of the Clean 
Air Amendments of 1970, the Administrator shall publish, 
simultaneously with the issuance of such criteria and 
information, proposed national primary and secondary ambient 
air quality standards for any such pollutant. The procedure 
provided for in paragraph (1)(B) of this subsection shall apply 
to the promulgation of such standards.
  (b)(1) National primary ambient air quality standards, 
prescribed, under subsection (a) shall be ambient air quality 
standards the attainment and maintenance of which in the 
judgment of the Administrator, based on such criteria and 
allowing an adequate margin of safety, are requisite to protect 
the public health. If the Administrator, in consultation with 
the independent scientific review committee appointed under 
subsection (d), finds that a range of levels of air quality for 
an air pollutant are requisite to protect public health with an 
adequate margin of safety, as described in the preceding 
sentence, the Administrator may consider, as a secondary 
consideration, likely technological feasibility in establishing 
and revising the national primary ambient air quality standard 
for such pollutant. Such primary standards may be revised in 
the same manner as promulgated.
  (2) Any national secondary ambient air quality standard 
prescribed, under subsection (a) shall specify a level of air 
quality the attainment and maintenance of which in the judgment 
of the Administrator, based on such criteria, is requisite to 
protect the public welfare from any known or anticipated 
adverse effects associated with the presence of such air 
pollutant in the ambient air. Such secondary standards may be 
revised in the same manner as promulgated.
  (c) The Administrator shall, not later than one year after 
the date of the enactment of the Clean Air Act Amendments of 
1977, promulgate a national primary ambient air quality 
standard for NO2 concentrations over a period of not 
more than 3 hours unless, based on the criteria issued under 
section 108(c), he finds that there is no significant evidence 
that such a standard for such a period is requisite to protect 
public health.
  (d)(1) Not later than December 31, 1980, and at [five-year 
intervals] 10-year intervals thereafter, the Administrator 
shall complete a thorough review of the criteria published 
under section 108 and the national ambient air quality 
standards promulgated under this section and shall make such 
revisions in such criteria and standards and promulgate such 
new standards as may be appropriate in accordance with section 
108 and subsection (b) of this section. The Administrator may 
review and revise criteria or promulgate new standards earlier 
or more frequently than required under this paragraph.
  (2)(A) The Administrator shall appoint an independent 
scientific review committee composed of seven members including 
at least one member of the National Academy of Sciences, one 
physician, and one person representing State air pollution 
control agencies.
  (B) Not later than January 1, 1980, and at [five-year 
intervals] 10-year intervals thereafter, the committee referred 
to in subparagraph (A) shall complete a review of the criteria 
published under section 108 and the national primary and 
secondary ambient air quality standards promulgated under this 
section and shall recommend to the Administrator any new 
national ambient air quality standards and revisions of 
existing criteria and standards as may be appropriate under 
section 108 and subsection (b) of this section.
  (C) Such committee shall also (i) advise the Administrator of 
areas in which additional knowledge is required to appraise the 
adequacy and basis of existing, new, or revised national 
ambient air quality standards, (ii) describe the research 
efforts necessary to provide the required information, (iii) 
advise the Administrator on the relative contribution to air 
pollution concentrations of natural as well as anthropogenic 
activity, and (iv) advise the Administrator of any adverse 
public health, welfare, social, economic, or energy effects 
which may result from various strategies for attainment and 
maintenance of such national ambient air quality standards.
  (D) Prior to establishing or revising a national ambient air 
quality standard, the Administrator shall request, and such 
committee shall provide, advice under subparagraph (C)(iv) 
regarding any adverse public health, welfare, social, economic, 
or energy effects which may result from various strategies for 
attainment and maintenance of such national ambient air quality 
standard.
  (e) Timely Issuance of Implementing Regulations and 
Guidance.--
          (1) In general.--In publishing any final rule 
        establishing or revising a national ambient air quality 
        standard, the Administrator shall, as the Administrator 
        determines necessary to assist States, permitting 
        authorities, and permit applicants, concurrently 
        publish regulations and guidance for implementing the 
        standard, including information relating to submission 
        and consideration of a preconstruction permit 
        application under the new or revised standard.
          (2) Applicability of standard to preconstruction 
        permitting.--If the Administrator fails to publish 
        final regulations and guidance that include information 
        relating to submission and consideration of a 
        preconstruction permit application under a new or 
        revised national ambient air quality standard 
        concurrently with such standard, then such standard 
        shall not apply to the review and disposition of a 
        preconstruction permit application until the 
        Administrator has published such final regulations and 
        guidance.
          (3) Rules of construction.--
                  (A) Nothing in this subsection shall be 
                construed to preclude the Administrator from 
                issuing regulations and guidance to assist 
                States, permitting authorities, and permit 
                applicants in implementing a national ambient 
                air quality standard subsequent to publishing 
                regulations and guidance for such standard 
                under paragraph (1).
                  (B) Nothing in this subsection shall be 
                construed to eliminate the obligation of a 
                preconstruction permit applicant to install 
                best available control technology and lowest 
                achievable emission rate technology, as 
                applicable.
                  (C) Nothing in this subsection shall be 
                construed to limit the authority of a State, 
                local, or Tribal permitting authority to impose 
                more stringent emissions requirements pursuant 
                to State, local, or Tribal law than national 
                ambient air quality standards.
          (4) Definitions.--In this subsection:
                  (A) The term ``best available control 
                technology'' has the meaning given to that term 
                in section 169(3).
                  (B) The term ``lowest achievable emission 
                rate'' has the meaning given to that term in 
                section 171(3).
                  (C) The term ``preconstruction permit''--
                          (i) means a permit that is required 
                        under this title for the construction 
                        or modification of a stationary source; 
                        and
                          (ii) includes any such permit issued 
                        by the Environmental Protection Agency 
                        or a State, local, or Tribal permitting 
                        authority.

           *       *       *       *       *       *       *


           Part D--Plan Requirements for Nonattainment Areas

Subpart 1--Nonattainment Areas in General

           *       *       *       *       *       *       *


SEC. 172. NONATTAINMENT PLAN PROVISIONS IN GENERAL.

  (a) Classifications and Attainment Dates.--
          (1) Classifications.--(A) On or after the date the 
        Administrator promulgates the designation of an area as 
        a nonattainment area pursuant to section 107(d) with 
        respect to any national ambient air quality standard 
        (or any revised standard, including a revision of any 
        standard in effect on the date of the enactment of the 
        Clean Air Act Amendments of 1990), the Administrator 
        may classify the area for the purpose of applying an 
        attainment date pursuant to paragraph (2), and for 
        other purposes. In determining the appropriate 
        classification, if any, for a nonattainment area, the 
        Administrator may consider such factors as the severity 
        of nonattainment in such area and the availability and 
        feasibility of the pollution control measures that the 
        Administrator believes may be necessary to provide for 
        attainment of such standard in such area.
          (B) The Administrator shall publish a notice in the 
        Federal Register announcing each classification under 
        subparagraph (A), except the Administrator shall 
        provide an opportunity for at least 30 days for written 
        comment. Such classification shall not be subject to 
        the provisions of sections 553 through 557 of title 5 
        of the United States Code (concerning notice and 
        comment) and shall not be subject to judicial review 
        until the Administrator takes final action under 
        subsection (k) or (l) of section 110 (concerning action 
        on plan submissions) or section 179 (concerning 
        sanctions) with respect to any plan submissions 
        required by virtue of such classification.
          (C) This paragraph shall not apply with respect to 
        nonattainment areas for which classifications are 
        specifically provided under other provisions of this 
        part.
          (2) Attainment dates for nonattainment areas.--(A) 
        The attainment date for an area designated 
        nonattainment with respect to a national primary 
        ambient air quality standard shall be the date by which 
        attainment can be achieved as expeditiously as 
        practicable, but no later than 5 years from the date 
        such area was designated nonattainment under section 
        107(d), except that the Administrator may extend the 
        attainment date to the extent the Administrator 
        determines appropriate, for a period no greater than 10 
        years from the date of designation as nonattainment, 
        considering the severity of nonattainment and the 
        availability and feasibility of pollution control 
        measures.
          (B) The attainment date for an area designated 
        nonattainment with respect to a secondary national 
        ambient air quality standard shall be the date by which 
        attainment can be achieved as expeditiously as 
        practicable after the date such area was designated 
        nonattainment under section 107(d).
          (C) Upon application by any State, the Administrator 
        may extend for 1 additional year (hereinafter referred 
        to as the ``Extension Year'') the attainment date 
        determined by the Administrator under subparagraph (A) 
        or (B) if--
                  (i) the State has complied with all 
                requirements and commitments pertaining to the 
                area in the applicable implementation plan, and
                  (ii) in accordance with guidance published by 
                the Administrator, no more than a minimal 
                number of exceedances of the relevant national 
                ambient air quality standard has occurred in 
                the area in the year preceding the Extension 
                Year.
        No more than 2 one-year extensions may be issued under 
        this subparagraph for a single nonattainment area.
          (D) This paragraph shall not apply with respect to 
        nonattainment areas for which attainment dates are 
        specifically provided under other provisions of this 
        part.
  (b) Schedule for Plan Submissions.--At the time the 
Administrator promulgates the designation of an area as 
nonattainment with respect to a national ambient air quality 
standard under section 107(d), the Administrator shall 
establish a schedule according to which the State containing 
such area shall submit a plan or plan revision (including the 
plan items) meeting the applicable requirements of subsection 
(c) and section 110(a)(2). Such schedule shall at a minimum, 
include a date or dates, extending no later than 3 years from 
the date of the nonattainment designation, for the submission 
of a plan or plan revision (including the plan items) meeting 
the applicable requirements of subsection (c) and section 
110(a)(2).
  (c) Nonattainment Plan Provisions.--The plan provisions 
(including plan items) required to be submitted under this part 
shall comply with each of the following:
          (1) In general.--Such plan provisions shall provide 
        for the implementation of all reasonably available 
        control measures as expeditiously as practicable 
        (including such reductions in emissions from existing 
        sources in the area as may be obtained through the 
        adoption, at a minimum, of reasonably available control 
        technology) and shall provide for attainment of the 
        national primary ambient air quality standards.
          (2) RFP.--Such plan provisions shall require 
        reasonable further progress.
          (3) Inventory.--Such plan provisions shall include a 
        comprehensive, accurate, current inventory of actual 
        emissions from all sources of the relevant pollutant or 
        pollutants in such area, including such periodic 
        revisions as the Administrator may determine necessary 
        to assure that the requirements of this part are met.
          (4) Identification and quantification.--Such plan 
        provisions shall expressly identify and quantify the 
        emissions, if any, of any such pollutant or pollutants 
        which will be allowed, in accordance with section 
        173(a)(1)(B), from the construction and operation of 
        major new or modified stationary sources in each such 
        area. The plan shall demonstrate to the satisfaction of 
        the Administrator that the emissions quantified for 
        this purpose will be consistent with the achievement of 
        reasonable further progress and will not interfere with 
        attainment of the applicable national ambient air 
        quality standard by the applicable attainment date.
          (5) Permits for new and modified major stationary 
        sources.--Such plan provisions shall require permits 
        for the construction and operation of new or modified 
        major stationary sources anywhere in the nonattainment 
        area, in accordance with section 173.
          (6) Other measures.--Such plan provisions shall 
        include enforceable emission limitations, and such 
        other control measures, means or techniques (including 
        economic incentives such as fees, marketable permits, 
        and auctions of emission rights), as well as schedules 
        and timetables for compliance, as may be necessary or 
        appropriate to provide for attainment of such standard 
        in such area by the applicable attainment date 
        specified in this part.
          (7) Compliance with section 110(a)(2).--Such plan 
        provisions shall also meet the applicable provisions of 
        section 110(a)(2).
          (8) Equivalent techniques.--Upon application by any 
        State, the Administrator may allow the use of 
        equivalent modeling, emission inventory, and planning 
        procedures, unless the Administrator determines that 
        the proposed techniques are, in the aggregate, less 
        effective than the methods specified by the 
        Administrator.
          (9) Contingency measures.--Such plan shall provide 
        for the implementation of specific measures to be 
        undertaken if the area fails to make reasonable further 
        progress, or to attain the national primary ambient air 
        quality standard by the attainment date applicable 
        under this part. Such measures shall be included in the 
        plan revision as contingency measures to take effect in 
        any such case without further action by the State or 
        the Administrator. Notwithstanding the preceding 
        sentences and any other provision of this Act, such 
        measures shall not be required for any nonattainment 
        area for ozone classified as an Extreme Area.
  (d) Plan Revisions Required in Response to Finding of Plan 
Inadequacy.--Any plan revision for a nonattainment area which 
is required to be submitted in response to a finding by the 
Administrator pursuant to section 110(k)(5) (relating to calls 
for plan revisions) must correct the plan deficiency (or 
deficiencies) specified by the Administrator and meet all other 
applicable plan requirements of section 110 and this part. The 
Administrator may reasonably adjust the dates otherwise 
applicable under such requirements to such revision (except for 
attainment dates that have not yet elapsed), to the extent 
necessary to achieve a consistent application of such 
requirements. In order to facilitate submittal by the States of 
adequate and approvable plans consistent with the applicable 
requirements of this Act, the Administrator shall, as 
appropriate and from time to time, issue written guidelines, 
interpretations, and information to the States which shall be 
available to the public, taking into consideration any such 
guidelines, interpretations, or information provided before the 
date of the enactment of the Clean Air Act Amendments of 1990.
  (e) Future Modification of Standard.--If the Administrator 
relaxes a national primary ambient air quality standard after 
the date of the enactment of the Clean Air Act Amendments of 
1990, the Administrator shall, within 12 months after the 
relaxation, promulgate requirements applicable to all areas 
which have not attained that standard as of the date of such 
relaxation. Such requirements shall provide for controls which 
are not less stringent than the controls applicable to areas 
designated nonattainment before such relaxation.

           *       *       *       *       *       *       *


SEC. 179C. APPLICABILITY OF SANCTIONS AND FEES IF EMISSIONS BEYOND 
                    CONTROL.

  (a) In General.--Notwithstanding any other provision of this 
Act, with respect to any nonattainment area that is classified 
under section 181 as severe or extreme for ozone or under 
section 188 as serious for particulate matter, no sanction or 
fee under section 179 or 185 shall apply with respect to a 
State (or a local government or source therein) on the basis of 
a deficiency described in section 179(a), or the State's 
failure to attain a national ambient air quality standard for 
ozone or particulate matter by the applicable attainment date, 
if the State demonstrates that the State would have avoided 
such deficiency or attained such standard but for one or more 
of the following:
          (1) Emissions emanating from outside the 
        nonattainment area.
          (2) Emissions from an exceptional event (as defined 
        in section 319(b)(1)).
          (3) Emissions from mobile sources to the extent the 
        State demonstrates that--
                  (A) such emissions are beyond the control of 
                the State to reduce or eliminate; and
                  (B) the State is fully implementing such 
                measures as are within the authority of the 
                State to control emissions from the mobile 
                sources.
  (b) No Effect on Underlying Standards.--The inapplicability 
of sanctions or fees with respect to a State pursuant to 
subsection (a) does not affect the obligation of the State (and 
local governments and sources therein) under other provisions 
of this Act to establish and implement measures to attain a 
national ambient air quality standard for ozone or particulate 
matter.
  (c) Periodic Renewal of Demonstration.--For subsection (a) to 
continue to apply with respect to a State or local government 
(or source therein), the State involved shall renew the 
demonstration required by subsection (a) at least once every 5 
years.

Subpart 2--Additional Provisions for Ozone Nonattainment Areas

           *       *       *       *       *       *       *


SEC. 182. PLAN SUBMISSIONS AND REQUIREMENTS.

  (a) Marginal Areas.--Each State in which all or part of a 
Marginal Area is located shall, with respect to the Marginal 
Area (or portion thereof, to the extent specified in this 
subsection), submit to the Administrator the State 
implementation plan revisions (including the plan items) 
described under this subsection except to the extent the State 
has made such submissions as of the date of the enactment of 
the Clean Air Act Amendments of 1990.
          (1) Inventory.--Within 2 years after the date of the 
        enactment of the Clean Air Act Amendments of 1990, the 
        State shall submit a comprehensive, accurate, current 
        inventory of actual emissions from all sources, as 
        described in section 172(c)(3), in accordance with 
        guidance provided by the Administrator.
          (2) Corrections to the state implementation plan.--
        Within the periods prescribed in this paragraph, the 
        State shall submit a revision to the State 
        implementation plan that meets the following 
        requirements--
                  (A) Reasonably available control technology 
                corrections.--For any Marginal Area (or, within 
                the Administrator's discretion, portion 
                thereof) the State shall submit, within 6 
                months of the date of classification under 
                section 181(a), a revision that includes such 
                provisions to correct requirements in (or add 
                requirements to) the plan concerning reasonably 
                available control technology as were required 
                under section 172(b) (as in effect immediately 
                before the date of the enactment of the Clean 
                Air Act Amendments of 1990), as interpreted in 
                guidance issued by the Administrator under 
                section 108 before the date of the enactment of 
                the Clean Air Act Amendments of 1990.
                  (B) Savings clause for vehicle inspection and 
                maintenance.--(i) For any Marginal Area (or, 
                within the Administrator's discretion, portion 
                thereof), the plan for which already includes, 
                or was required by section 172(b)(11)(B) (as in 
                effect immediately before the date of the 
                enactment of the Clean Air Act Amendments of 
                1990) to have included, a specific schedule for 
                implementation of a vehicle emission control 
                inspection and maintenance program, the State 
                shall submit, immediately after the date of the 
                enactment of the Clean Air Act Amendments of 
                1990, a revision that includes any provisions 
                necessary to provide for a vehicle inspection 
                and maintenance program of no less stringency 
                than that of either the program defined in 
                House Report Numbered 95-294, 95th Congress, 
                1st Session, 281-291 (1977) as interpreted in 
                guidance of the Administrator issued pursuant 
                to section 172(b)(11)(B) (as in effect 
                immediately before the date of the enactment of 
                the Clean Air Act Amendments of 1990) or the 
                program already included in the plan, whichever 
                is more stringent.
                  (ii) Within 12 months after the date of the 
                enactment of the Clean Air Act Amendments of 
                1990, the Administrator shall review, revise, 
                update, and republish in the Federal Register 
                the guidance for the States for motor vehicle 
                inspection and maintenance programs required by 
                this Act, taking into consideration the 
                Administrator's investigations and audits of 
                such program. The guidance shall, at a minimum, 
                cover the frequency of inspections, the types 
                of vehicles to be inspected (which shall 
                include leased vehicles that are registered in 
                the nonattainment area), vehicle maintenance by 
                owners and operators, audits by the State, the 
                test method and measures, including whether 
                centralized or decentralized, inspection 
                methods and procedures, quality of inspection, 
                components covered, assurance that a vehicle 
                subject to a recall notice from a manufacturer 
                has complied with that notice, and effective 
                implementation and enforcement, including 
                ensuring that any retesting of a vehicle after 
                a failure shall include proof of corrective 
                action and providing for denial of vehicle 
                registration in the case of tampering or 
                misfueling. The guidance which shall be 
                incorporated in the applicable State 
                implementation plans by the States shall 
                provide the States with continued reasonable 
                flexibility to fashion effective, reasonable, 
                and fair programs for the affected consumer. No 
                later than 2 years after the Administrator 
                promulgates regulations under section 202(m)(3) 
                (relating to emission control diagnostics), the 
                State shall submit a revision to such program 
                to meet any requirements that the Administrator 
                may prescribe under that section.
                  (C) Permit programs.--Within 2 years after 
                the date of the enactment of the Clean Air Act 
                Amendments of 1990, the State shall submit a 
                revision that includes each of the following:
                          (i) Provisions to require permits, in 
                        accordance with sections 172(c)(5) and 
                        173, for the construction and operation 
                        of each new or modified major 
                        stationary source (with respect to 
                        ozone) to be located in the area.
                          (ii) Provisions to correct 
                        requirements in (or add requirements 
                        to) the plan concerning permit programs 
                        as were required under section 
                        172(b)(6) (as in effect immediately 
                        before the date of the enactment of the 
                        Clean Air Act Amendments of 1990), as 
                        interpreted in regulations of the 
                        Administrator promulgated as of the 
                        date of the enactment of the Clean Air 
                        Act Amendments of 1990.
          (3) Periodic inventory.--
                  (A) General requirement.--No later than the 
                end of each 3-year period after submission of 
                the inventory under paragraph (1) until the 
                area is redesignated to attainment, the State 
                shall submit a revised inventory meeting the 
                requirements of subsection (a)(1).
                  (B) Emissions statements.--(i) Within 2 years 
                after the date of the enactment of the Clean 
                Air Act Amendments of 1990, the State shall 
                submit a revision to the State implementation 
                plan to require that the owner or operator of 
                each stationary source of oxides of nitrogen or 
                volatile organic compounds provide the State 
                with a statement, in such form as the 
                Administrator may prescribe (or accept an 
                equivalent alternative developed by the State), 
                for classes or categories of sources, showing 
                the actual emissions of oxides of nitrogen and 
                volatile organic compounds from that source. 
                The first such statement shall be submitted 
                within 3 years after the date of the enactment 
                of the Clean Air Act Amendments of 1990. 
                Subsequent statements shall be submitted at 
                least every year thereafter. The statement 
                shall contain a certification that the 
                information contained in the statement is 
                accurate to the best knowledge of the 
                individual certifying the statement.
                  (ii) The State may waive the application of 
                clause (i) to any class or category of 
                stationary sources which emit less than 25 tons 
                per year of volatile organic compounds or 
                oxides of nitrogen if the State, in its 
                submissions under subparagraphs (1) or (3)(A), 
                provides an inventory of emissions from such 
                class or category of sources, based on the use 
                of the emission factors established by the 
                Administrator or other methods acceptable to 
                the Administrator.
          (4) General offset requirement.--For purposes of 
        satisfying the emission offset requirements of this 
        part, the ratio of total emission reductions of 
        volatile organic compounds to total increased emissions 
        of such air pollutant shall be at least 1.1 to 1.
The Administrator may, in the Administrator's discretion, 
require States to submit a schedule for submitting any of the 
revisions or other items required under this subsection. The 
requirements of this subsection shall apply in lieu of any 
requirement that the State submit a demonstration that the 
applicable implementation plan provides for attainment of the 
ozone standard by the applicable attainment date in any 
Marginal Area. Section 172(c)(9) (relating to contingency 
measures) shall not apply to Marginal Areas.
  (b) Moderate Areas.--Each State in which all or part of a 
Moderate Area is located shall, with respect to the Moderate 
Area, make the submissions described under subsection (a) 
(relating to Marginal Areas), and shall also submit the 
revisions to the applicable implementation plan described under 
this subsection.
          (1) Plan provisions for reasonable further 
        progress.--
                  (A) General rule.--(i) By no later than 3 
                years after the date of the enactment of the 
                Clean Air Act Amendments of 1990, the State 
                shall submit a revision to the applicable 
                implementation plan to provide for volatile 
                organic compound emission reductions, within 6 
                years after the date of the enactment of the 
                Clean Air Act Amendments of 1990, of at least 
                15 percent from baseline emissions, accounting 
                for any growth in emissions after the year in 
                which the Clean Air Act Amendments of 1990 are 
                enacted. Such plan shall provide for such 
                specific annual reductions in emissions of 
                volatile organic compounds and oxides of 
                nitrogen as necessary to attain the national 
                primary ambient air quality standard for ozone 
                by the attainment date applicable under this 
                Act. This subparagraph shall not apply in the 
                case of oxides of nitrogen for those areas for 
                which the Administrator determines (when the 
                Administrator approves the plan or plan 
                revision) that additional reductions of oxides 
                of nitrogen would not contribute to attainment.
                  (ii) A percentage less than 15 percent may be 
                used for purposes of clause (i) in the case of 
                any State which demonstrates to the 
                satisfaction of the Administrator that--
                          (I) new source review provisions are 
                        applicable in the nonattainment areas 
                        in the same manner and to the same 
                        extent as required under subsection (e) 
                        in the case of Extreme Areas (with the 
                        exception that, in applying such 
                        provisions, the terms ``major source'' 
                        and ``major stationary source'' shall 
                        include (in addition to the sources 
                        described in section 302) any 
                        stationary source or group of sources 
                        located within a contiguous area and 
                        under common control that emits, or has 
                        the potential to emit, at least 5 tons 
                        per year of volatile organic 
                        compounds);
                          (II) reasonably available control 
                        technology is required for all existing 
                        major sources (as defined in subclause 
                        (I)); and
                          (III) the plan reflecting a lesser 
                        percentage than 15 percent includes all 
                        measures that can feasibly be 
                        implemented in the area, in light of 
                        technological achievability and 
                        economic feasibility.
                To qualify for a lesser percentage under this 
                clause, a State must demonstrate to the 
                satisfaction of the Administrator that the plan 
                for the area includes the measures that are 
                achieved in practice by sources in the same 
                source category in nonattainment areas of the 
                next higher category.
                  (B) Baseline emissions.--For purposes of 
                subparagraph (A), the term ``baseline 
                emissions'' means the total amount of actual 
                VOC or NOx emissions from all 
                anthropogenic sources in the area during the 
                calendar year of the enactment of the Clean Air 
                Act Amendments of 1990, excluding emissions 
                that would be eliminated under the regulations 
                described in clauses (i) and (ii) of 
                subparagraph (D).
                  (C) General rule for creditability of 
                reductions.--Except as provided under 
                subparagraph (D), emissions reductions are 
                creditable toward the 15 percent required under 
                subparagraph (A) to the extent they have 
                actually occurred, as of 6 years after the date 
                of the enactment of the Clean Air Act 
                Amendments of 1990, from the implementation of 
                measures required under the applicable 
                implementation plan, rules promulgated by the 
                Administrator, or a permit under title V.
                  (D) Limits on creditability of reductions.--
                Emission reductions from the following measures 
                are not creditable toward the 15 percent 
                reductions required under subparagraph (A):
                          (i) Any measure relating to motor 
                        vehicle exhaust or evaporative 
                        emissions promulgated by the 
                        Administrator by January 1, 1990.
                          (ii) Regulations concerning Reid 
                        Vapor Pressure promulgated by the 
                        Administrator by the date of the 
                        enactment of the Clean Air Act 
                        Amendments of 1990 or required to be 
                        promulgated under section 211(h).
                          (iii) Measures required under 
                        subsection (a)(2)(A) (concerning 
                        corrections to implementation plans 
                        prescribed under guidance by the 
                        Administrator).
                          (iv) Measures required under 
                        subsection (a)(2)(B) to be submitted 
                        immediately after the date of the 
                        enactment of the Clean Air Act 
                        Amendments of 1990 (concerning 
                        corrections to motor vehicle inspection 
                        and maintenance programs).
          (2) Reasonably available control technology.--The 
        State shall submit a revision to the applicable 
        implementation plan to include provisions to require 
        the implementation of reasonably available control 
        technology under section 172(c)(1) with respect to each 
        of the following:
                  (A) Each category of VOC sources in the area 
                covered by a CTG document issued by the 
                Administrator between the date of the enactment 
                of the Clean Air Act Amendments of 1990 and the 
                date of attainment.
                  (B) All VOC sources in the area covered by 
                any CTG issued before the date of the enactment 
                of the Clean Air Act Amendments of 1990.
                  (C) All other major stationary sources of 
                VOCs that are located in the area.
        Each revision described in subparagraph (A) shall be 
        submitted within the period set forth by the 
        Administrator in issuing the relevant CTG document. The 
        revisions with respect to sources described in 
        subparagraphs (B) and (C) shall be submitted by 2 years 
        after the date of the enactment of the Clean Air Act 
        Amendments of 1990, and shall provide for the 
        implementation of the required measures as 
        expeditiously as practicable but no later than May 31, 
        1995.
          (3) Gasoline vapor recovery.--
                  (A) General rule.--Not later than 2 years 
                after the date of the enactment of the Clean 
                Air Act Amendments of 1990, the State shall 
                submit a revision to the applicable 
                implementation plan to require all owners or 
                operators of gasoline dispensing systems to 
                install and operate, by the date prescribed 
                under subparagraph (B), a system for gasoline 
                vapor recovery of emissions from the fueling of 
                motor vehicles. The Administrator shall issue 
                guidance as appropriate as to the effectiveness 
                of such system. This subparagraph shall apply 
                only to facilities which sell more than 10,000 
                gallons of gasoline per month (50,000 gallons 
                per month in the case of an independent small 
                business marketer of gasoline as defined in 
                section 325).
                  (B) Effective date.--The date required under 
                subparagraph (A) shall be--
                          (i) 6 months after the adoption date, 
                        in the case of gasoline dispensing 
                        facilities for which construction 
                        commenced after the date of the 
                        enactment of the Clean Air Act 
                        Amendments of 1990;
                          (ii) one year after the adoption 
                        date, in the case of gasoline 
                        dispensing facilities which dispense at 
                        least 100,000 gallons of gasoline per 
                        month, based on average monthly sales 
                        for the 2-year period before the 
                        adoption date; or
                          (iii) 2 years after the adoption 
                        date, in the case of all other gasoline 
                        dispensing facilities.
                Any gasoline dispensing facility described 
                under both clause (i) and clause (ii) shall 
                meet the requirements of clause (i).
                  (C) Reference to terms.--For purposes of this 
                paragraph, any reference to the term ``adoption 
                date'' shall be considered a reference to the 
                date of adoption by the State of requirements 
                for the installation and operation of a system 
                for gasoline vapor recovery of emissions from 
                the fueling of motor vehicles.
          (4) Motor vehicle inspection and maintenance.--For 
        all Moderate Areas, the State shall submit, immediately 
        after the date of the enactment of the Clean Air Act 
        Amendments of 1990, a revision to the applicable 
        implementation plan that includes provisions necessary 
        to provide for a vehicle inspection and maintenance 
        program as described in subsection (a)(2)(B) (without 
        regard to whether or not the area was required by 
        section 172(b)(11)(B) (as in effect immediately before 
        the date of the enactment of the Clean Air Act 
        Amendments of 1990) to have included a specific 
        schedule for implementation of such a program).
          (5) General offset requirement.--For purposes of 
        satisfying the emission offset requirements of this 
        part, the ratio of total emission reductions of 
        volatile organic compounds to total increase emissions 
        of such air pollutant shall be at least 1.15 to 1.
  (c) Serious Areas.--Except as otherwise specified in 
paragraph (4), each State in which all or part of a Serious 
Area is located shall, with respect to the Serious Area (or 
portion thereof, to the extent specified in this subsection), 
make the submissions described under subsection (b) (relating 
to Moderate Areas), and shall also submit the revisions to the 
applicable implementation plan (including the plan items) 
described under this subsection. For any Serious Area, the 
terms ``major source'' and ``major stationary source'' include 
(in addition to the sources described in section 302) any 
stationary source or group of sources located within a 
contiguous area and under common control that emits, or has the 
potential to emit, at least 50 tons per year of volatile 
organic compounds.
          (1) Enhanced monitoring.--In order to obtain more 
        comprehensive and representative data on ozone air 
        pollution, not later than 18 months after the date of 
        the enactment of the Clean Air Act Amendments of 1990 
        the Administrator shall promulgate rules, after notice 
        and public comment, for enhanced monitoring of ozone, 
        oxides of nitrogen, and volatile organic compounds. The 
        rules shall, among other things, cover the location and 
        maintenance of monitors. Immediately following the 
        promulgation of rules by the Administrator relating to 
        enhanced monitoring, the State shall commence such 
        actions as may be necessary to adopt and implement a 
        program based on such rules, to improve monitoring for 
        ambient concentrations of ozone, oxides of nitrogen and 
        volatile organic compounds and to improve monitoring of 
        emissions of oxides of nitrogen and volatile organic 
        compounds. Each State implementation plan for the area 
        shall contain measures to improve the ambient 
        monitoring of such air pollutants.
          (2) Attainment and reasonable further progress 
        demonstrations.--Within 4 years after the date of the 
        enactment of the Clean Air Act Amendments of 1990, the 
        State shall submit a revision to the applicable 
        implementation plan that includes each of the 
        following:
                  (A) Attainment demonstration.--A 
                demonstration that the plan, as revised, will 
                provide for attainment of the ozone national 
                ambient air quality standard by the applicable 
                attainment date. This attainment demonstration 
                must be based on photochemical grid modeling or 
                any other analytical method determined by the 
                Administrator, in the Administrator's 
                discretion, to be at least as effective.
                  (B) Reasonable further progress 
                demonstration.--A demonstration that the plan, 
                as revised, will result in VOC emissions 
                reductions from the baseline emissions 
                described in subsection (b)(1)(B) equal to the 
                following amount averaged over each consecutive 
                3-year period beginning 6 years after the date 
                of the enactment of the Clean Air Act 
                Amendments of 1990, until the attainment date:
                          (i) at least 3 percent of baseline 
                        emissions each year; or
                          (ii) an amount less than 3 percent of 
                        such baseline emissions each year, if 
                        the State demonstrates to the 
                        satisfaction of the Administrator that 
                        the plan reflecting such lesser amount 
                        includes all measures that can feasibly 
                        be implemented in the area, in light of 
                        technological achievability and 
                        economic feasibility.
                To lessen the 3 percent requirement under 
                clause (ii), a State must demonstrate to the 
                satisfaction of the Administrator that the plan 
                for the area includes the measures that are 
                achieved in practice by sources in the same 
                source category in nonattainment areas of the 
                next higher classification. Any determination 
                to lessen the 3 percent requirement shall be 
                reviewed at each milestone under section 182(g) 
                and revised to reflect such new measures (if 
                any) achieved in practice by sources in the 
                same category in any State, allowing a 
                reasonable time to implement such measures. The 
                emission reductions described in this 
                subparagraph shall be calculated in accordance 
                with subsection (b)(1) (C) and (D) (concerning 
                creditability of reductions). The reductions 
                creditable for the period beginning 6 years 
                after the date of the enactment of the Clean 
                Air Act Amendments of 1990, shall include 
                reductions that occurred before such period, 
                computed in accordance with subsection (b)(1), 
                that exceed the 15-percent amount of reductions 
                required under subsection (b)(1)(A).
                  (C) NOxcontrol.--The revision may 
                contain, in lieu of the demonstration required 
                under subparagraph (B), a demonstration to the 
                satisfaction of the Administrator that the 
                applicable implementation plan, as revised, 
                provides for reductions of emissions of VOC's 
                and oxides of nitrogen (calculated according to 
                the creditability provisions of subsection 
                (b)(1) (C) and (D)), that would result in a 
                reduction in ozone concentrations at least 
                equivalent to that which would result from the 
                amount of VOC emission reductions required 
                under subparagraph (B). Within 1 year after the 
                date of the enactment of the Clean Air Act 
                Amendments of 1990, the Administrator shall 
                issue guidance concerning the conditions under 
                which NOx control may be substituted 
                for VOC control or may be combined with VOC 
                control in order to maximize the reduction in 
                ozone air pollution. In accord with such 
                guidance, a lesser percentage of VOCs may be 
                accepted as an adequate demonstration for 
                purposes of this subsection.
          (3) Enhanced vehicle inspection and maintenance 
        program.--
                  (A) Requirement for submission.--Within 2 
                years after the date of the enactment of the 
                Clean Air Act Amendments of 1990, the State 
                shall submit a revision to the applicable 
                implementation plan to provide for an enhanced 
                program to reduce hydrocarbon emissions and 
                NOx emissions from in-use motor 
                vehicles registered in each urbanized area (in 
                the nonattainment area), as defined by the 
                Bureau of the Census, with a 1980 population of 
                200,000 or more.
                  (B) Effective date of state programs; 
                guidance.--The State program required under 
                subparagraph (A) shall take effect no later 
                than 2 years from the date of the enactment of 
                the Clean Air Act Amendments of 1990, and shall 
                comply in all respects with guidance published 
                in the Federal Register (and from time to time 
                revised) by the Administrator for enhanced 
                vehicle inspection and maintenance programs. 
                Such guidance shall include--
                          (i) a performance standard achievable 
                        by a program combining emission 
                        testing, including on-road emission 
                        testing, with inspection to detect 
                        tampering with emission control devices 
                        and misfueling for all light-duty 
                        vehicles and all light-duty trucks 
                        subject to standards under section 202; 
                        and
                          (ii) program administration features 
                        necessary to reasonably assure that 
                        adequate management resources, tools, 
                        and practices are in place to attain 
                        and maintain the performance standard.
                Compliance with the performance standard under 
                clause (i) shall be determined using a method 
                to be established by the Administrator.
                  (C) State program.--The State program 
                required under subparagraph (A) shall include, 
                at a minimum, each of the following elements--
                          (i) Computerized emission analyzers, 
                        including on-road testing devices.
                          (ii) No waivers for vehicles and 
                        parts covered by the emission control 
                        performance warranty as provided for in 
                        section 207(b) unless a warranty remedy 
                        has been denied in writing, or for 
                        tampering-related repairs.
                          (iii) In view of the air quality 
                        purpose of the program, if, for any 
                        vehicle, waivers are permitted for 
                        emissions-related repairs not covered 
                        by warranty, an expenditure to qualify 
                        for the waiver of an amount of $450 or 
                        more for such repairs (adjusted 
                        annually as determined by the 
                        Administrator on the basis of the 
                        Consumer Price Index in the same manner 
                        as provided in title V).
                          (iv) Enforcement through denial of 
                        vehicle registration (except for any 
                        program in operation before the date of 
                        the enactment of the Clean Air Act 
                        Amendments of 1990 whose enforcement 
                        mechanism is demonstrated to the 
                        Administrator to be more effective than 
                        the applicable vehicle registration 
                        program in assuring that noncomplying 
                        vehicles are not operated on public 
                        roads).
                          (v) Annual emission testing and 
                        necessary adjustment, repair, and 
                        maintenance, unless the State 
                        demonstrates to the satisfaction of the 
                        Administrator that a biennial 
                        inspection, in combination with other 
                        features of the program which exceed 
                        the requirements of this Act, will 
                        result in emission reductions which 
                        equal or exceed the reductions which 
                        can be obtained through such annual 
                        inspections.
                          (vi) Operation of the program on a 
                        centralized basis, unless the State 
                        demonstrates to the satisfaction of the 
                        Administrator that a decentralized 
                        program will be equally effective. An 
                        electronically connected testing 
                        system, a licensing system, or other 
                        measures (or any combination thereof) 
                        may be considered, in accordance with 
                        criteria established by the 
                        Administrator, as equally effective for 
                        such purposes.
                          (vii) Inspection of emission control 
                        diagnostic systems and the maintenance 
                        or repair of malfunctions or system 
                        deterioration identified by or 
                        affecting such diagnostics systems.
                Each State shall biennially prepare a report to 
                the Administrator which assesses the emission 
                reductions achieved by the program required 
                under this paragraph based on data collected 
                during inspection and repair of vehicles. The 
                methods used to assess the emission reductions 
                shall be those established by the 
                Administrator.
          (4) Clean-fuel vehicle programs.--(A) Except to the 
        extent that substitute provisions have been approved by 
        the Administrator under subparagraph (B), the State 
        shall submit to the Administrator, within 42 months of 
        the date of the enactment of the Clean Air Act 
        Amendments of 1990, a revision to the applicable 
        implementation plan for each area described under part 
        C of title II to include such measures as may be 
        necessary to ensure the effectiveness of the applicable 
        provisions of the clean-fuel vehicle program prescribed 
        under part C of title II, including all measures 
        necessary to make the use of clean alternative fuels in 
        clean-fuel vehicles (as defined in part C of title II) 
        economic from the standpoint of vehicle owners. Such a 
        revision shall also be submitted for each area that 
        opts into the clean fuel-vehicle program as provided in 
        part C of title II.
          (B) The Administrator shall approve, as a substitute 
        for all or a portion of the clean-fuel vehicle program 
        prescribed under part C of title II, any revision to 
        the relevant applicable implementation plan that in the 
        Administrator's judgment will achieve long-term 
        reductions in ozone-producing and toxic air emissions 
        equal to those achieved under part C of title II, or 
        the percentage thereof attributable to the portion of 
        the clean-fuel vehicle program for which the revision 
        is to substitute. The Administrator may approve such 
        revision only if it consists exclusively of provisions 
        other than those required under this Act for the area. 
        Any State seeking approval of such revision must submit 
        the revision to the Administrator within 24 months of 
        the date of the enactment of the Clean Air Act 
        Amendments of 1990. The Administrator shall approve or 
        disapprove any such revision within 30 months of the 
        date of the enactment of the Clean Air Act Amendments 
        of 1990. The Administrator shall publish the revision 
        submitted by a State in the Federal Register upon 
        receipt. Such notice shall constitute a notice of 
        proposed rulemaking on whether or not to approve such 
        revision and shall be deemed to comply with the 
        requirements concerning notices of proposed rulemaking 
        contained in sections 553 through 557 of title 5 of the 
        United States Code (related to notice and comment). 
        Where the Administrator approves such revision for any 
        area, the State need not submit the revision required 
        by subparagraph (A) for the area with respect to the 
        portions of the Federal clean-fuel vehicle program for 
        which the Administrator has approved the revision as a 
        substitute.
          (C) If the Administrator determines, under section 
        179, that the State has failed to submit any portion of 
        the program required under subparagraph (A), then, in 
        addition to any sanctions available under section 179, 
        the State may not receive credit, in any demonstration 
        of attainment or reasonable further progress for the 
        area, for any emission reductions from implementation 
        of the corresponding aspects of the Federal clean-fuel 
        vehicle requirements established in part C of title II.
          (5) Transportation control.--(A) Beginning 6 years 
        after the date of the enactment of the Clean Air Act 
        Amendments of 1990 and each third year thereafter, the 
        State shall submit a demonstration as to whether 
        current aggregate vehicle mileage, aggregate vehicle 
        emissions, congestion levels, and other relevant 
        parameters are consistent with those used for the 
        area's demonstration of attainment. Where such 
        parameters and emissions levels exceed the levels 
        projected for purposes of the area's attainment 
        demonstration, the State shall within 18 months develop 
        and submit a revision of the applicable implementation 
        plan that includes a transportation control measures 
        program consisting of measures from, but not limited 
        to, section 108(f) that will reduce emissions to levels 
        that are consistent with emission levels projected in 
        such demonstration. In considering such measures, the 
        State should ensure adequate access to downtown, other 
        commercial, and residential areas and should avoid 
        measures that increase or relocate emissions and 
        congestion rather than reduce them. Such revision shall 
        be developed in accordance with guidance issued by the 
        Administrator pursuant to section 108(e) and with the 
        requirements of section 174(b) and shall include 
        implementation and funding schedules that achieve 
        expeditious emissions reductions in accordance with 
        implementation plan projections.
          (6) De minimis rule.--The new source review 
        provisions under this part shall ensure that increased 
        emissions of volatile organic compounds resulting from 
        any physical change in, or change in the method of 
        operation of, a stationary source located in the area 
        shall not be considered de minimis for purposes of 
        determining the applicability of the permit 
        requirements established by this Act unless the 
        increase in net emissions of such air pollutant from 
        such source does not exceed 25 tons when aggregated 
        with all other net increases in emissions from the 
        source over any period of 5 consecutive calendar years 
        which includes the calendar year in which such increase 
        occurred.
          (7) Special rule for modifications of sources 
        emitting less than 100 tons.--In the case of any major 
        stationary source of volatile organic compounds located 
        in the area (other than a source which emits or has the 
        potential to emit 100 tons or more of volatile organic 
        compounds per year), whenever any change (as described 
        in section 111(a)(4)) at that source results in any 
        increase (other than a de minimis increase) in 
        emissions of volatile organic compounds from any 
        discrete operation, unit, or other pollutant emitting 
        activity at the source, such increase shall be 
        considered a modification for purposes of section 
        172(c)(5) and section 173(a), except that such increase 
        shall not be considered a modification for such 
        purposes if the owner or operator of the source elects 
        to offset the increase by a greater reduction in 
        emissions of volatile organic compounds concerned from 
        other operations, units, or activities within the 
        source at an internal offset ratio of at least 1.3 to 
        1. If the owner or operator does not make such 
        election, such change shall be considered a 
        modification for such purposes, but in applying section 
        173(a)(2) in the case of any such modification, the 
        best available control technology (BACT), as defined in 
        section 169, shall be substituted for the lowest 
        achievable emission rate (LAER). The Administrator 
        shall establish and publish policies and procedures for 
        implementing the provisions of this paragraph.
          (8) Special rule for modifications of sources 
        emitting 100 tons or more.--In the case of any major 
        stationary source of volatile organic compounds located 
        in the area which emits or has the potential to emit 
        100 tons or more of volatile organic compounds per 
        year, whenever any change (as described in section 
        111(a)(4)) at that source results in any increase 
        (other than a de minimis increase) in emissions of 
        volatile organic compounds from any discrete operation, 
        unit, or other pollutant emitting activity at the 
        source, such increase shall be considered a 
        modification for purposes of section 172(c)(5) and 
        section 173(a), except that if the owner or operator of 
        the source elects to offset the increase by a greater 
        reduction in emissions of volatile organic compounds 
        from other operations, units, or activities within the 
        source at an internal offset ratio of at least 1.3 to 
        1, the requirements of section 173(a)(2) (concerning 
        the lowest achievable emission rate (LAER)) shall not 
        apply.
          (9) Contingency provisions.--In addition to the 
        contingency provisions required under section 
        172(c)(9), the plan revision shall provide for the 
        implementation of specific measures to be undertaken if 
        the area fails to meet any applicable milestone. Such 
        measures shall be included in the plan revision as 
        contingency measures to take effect without further 
        action by the State or the Administrator upon a failure 
        by the State to meet the applicable milestone.
          (10) General offset requirement.--For purposes of 
        satisfying the emission offset requirements of this 
        part, the ratio of total emission reductions of 
        volatile organic compounds to total increase emissions 
        of such air pollutant shall be at least 1.2 to 1.
Any reference to ``attainment date'' in subsection (b), which 
is incorporated by reference into this subsection, shall refer 
to the attainment date for serious areas.
  (d) Severe Areas.--Each State in which all or part of a 
Severe Area is located shall, with respect to the Severe Area, 
make the submissions described under subsection (c) (relating 
to Serious Areas), and shall also submit the revisions to the 
applicable implementation plan (including the plan items) 
described under this subsection. For any Severe Area, the terms 
``major source'' and ``major stationary source'' include (in 
addition to the sources described in section 302) any 
stationary source or group of sources located within a 
contiguous area and under common control that emits, or has the 
potential to emit, at least 25 tons per year of volatile 
organic compounds.
          (1) Vehicle miles traveled.--(A) Within 2 years after 
        the date of enactment of the Clean Air Act Amendments 
        of 1990, the State shall submit a revision that 
        identifies and adopts specific enforceable 
        transportation control strategies and transportation 
        control measures to offset any growth in emissions from 
        growth in vehicle miles traveled or numbers of vehicle 
        trips in such area and to attain reduction in motor 
        vehicle emissions as necessary, in combination with 
        other emission reduction requirements of this subpart, 
        to comply with the requirements of subsection (b)(2)(B) 
        and (c)(2)(B) (pertaining to periodic emissions 
        reduction requirements). The State shall consider 
        measures specified in section 108(f), and choose from 
        among and implement such measures as necessary to 
        demonstrate attainment with the national ambient air 
        quality standards; in considering such measures, the 
        State should ensure adequate access to downtown, other 
        commercial, and residential areas and should avoid 
        measures that increase or relocate emissions and 
        congestion rather than reduce them.
          (B) The State may also, in its discretion, submit a 
        revision at any time requiring employers in such area 
        to implement programs to reduce work-related vehicle 
        trips and miles travelled by employees. Such revision 
        shall be developed in accordance with guidance issued 
        by the Administrator pursuant to section 108(f) and may 
        require that employers in such area increase average 
        passenger occupancy per vehicle in commuting trips 
        between home and the workplace during peak travel 
        periods. The guidance of the Administrator may specify 
        average vehicle occupancy rates which vary for 
        locations within a nonattainment area (suburban, center 
        city, business district) or among nonattainment areas 
        reflecting existing occupancy rates and the 
        availability of high occupancy modes. Any State 
        required to submit a revision under this subparagraph 
        (as in effect before the date of enactment of this 
        sentence) containing provisions requiring employers to 
        reduce work-related vehicle trips and miles travelled 
        by employees may, in accordance with State law, remove 
        such provisions from the implementation plan, or 
        withdraw its submission, if the State notifies the 
        Administrator, in writing, that the State has 
        undertaken, or will undertake, one or more alternative 
        methods that will achieve emission reductions 
        equivalent to those to be achieved by the removed or 
        withdrawn provisions.
          (2) Offset requirement.--For purposes of satisfying 
        the offset requirements pursuant to this part, the 
        ratio of total emission reductions of VOCs to total 
        increased emissions of such air pollutant shall be at 
        least 1.3 to 1, except that if the State plan requires 
        all existing major sources in the nonattainment area to 
        use best available control technology (as defined in 
        section 169(3)) for the control of volatile organic 
        compounds, the ratio shall be at least 1.2 to 1.
          (3) Enforcement under section 185.--By December 31, 
        2000, the State shall submit a plan revision which 
        includes the provisions required under section 185.
Any reference to the term ``attainment date'' in subsection (b) 
or (c), which is incorporated by reference into this subsection 
(d), shall refer to the attainment date for Severe Areas.
  (e) Extreme Areas.--Each State in which all or part of an 
Extreme Area is located shall, with respect to the Extreme 
Area, make the submissions described under subsection (d) 
(relating to Severe Areas), and shall also submit the revisions 
to the applicable implementation plan (including the plan 
items) described under this subsection. [The provisions of 
clause (ii) of subsection (c)(2)(B) (relating to reductions of 
less than 3 percent), the provisions of paragaphs] The 
provisions of paragraphs (6), (7) and (8) of subsection (c) 
(relating to de minimus rule and modification of sources)[, and 
the provisions of clause (ii) of subsection (b)(1)(A) (relating 
to reductions of less than 15 percent)] shall not apply in the 
case of an Extreme Area. For any Extreme Area, the terms 
``major source'' and ``major stationary source'' includes (in 
addition to the sources described in section 302) any 
stationary source or group of sources located within a 
contiguous area and under common control that emits, or has the 
potential to emit, at least 10 tons per year of volatile 
organic compounds.
          (1) Offset requirement.--For purposes of satisfying 
        the offset requirements pursuant to this part, the 
        ratio of total emission reductions of VOCs to total 
        increased emissions of such air pollutant shall be at 
        least 1.5 to 1, except that if the State plan requires 
        all existing major sources in the nonattainment area to 
        use best available control technology (as defined in 
        section 169(3)) for the control of volatile organic 
        compounds, the ratio shall be at least 1.2 to 1.
          (2) Modifications--Any change (as described in 
        section 111(a)(4)) at a major stationary source which 
        results in any increase in emissions from any discrete 
        operation, unit, or other pollutant emitting activity 
        at the source shall be considered a modification for 
        purposes of section 172(c)(5) and section 173(a), 
        except that for purposes of complying with the offset 
        requirement pursuant to section 173(a)(1), any such 
        increase shall not be considered a modification if the 
        owner or operator of the source elects to offset the 
        increase by a greater reduction in emissions of the air 
        pollutant concerned from other discrete operations, 
        units, or activities within the source at an internal 
        offset ratio of at least 1.3 to 1. The offset 
        requirements of this part shall not be applicable in 
        Extreme Areas to a modification of an existing source 
        if such modification consists of installation of 
        equipment required to comply with the applicable 
        implementation plan, permit, or this Act.
          (3) Use of clean fuels or advanced control 
        technology.--For Extreme Areas, a plan revision shall 
        be submitted within 3 years after the date of the 
        enactment of the Clean Air Act Amendments of 1990 to 
        require, effective 8 years after such date, that each 
        new, modified, and existing electric utility and 
        industrial and commercial boiler which emits more than 
        25 tons per year of oxides of nitrogen--
                  (A) burn as its primary fuel natural gas, 
                methanol, or ethanol (or a comparably low 
                polluting fuel), or
                  (B) use advanced control technology (such as 
                catalytic control technology or other 
                comparably effective control methods) for 
                reduction of emissions of oxides of nitrogen.
        For purposes of this subsection, the term ``primary 
        fuel'' means the fuel which is used 90 percent or more 
        of the operating time. This paragraph shall not apply 
        during any natural gas supply emergency (as defined in 
        title III of the Natural Gas Policy Act of 1978).
          (4) Traffic control measures during heavy traffic 
        hours.--For Extreme Areas, each implementation plan 
        revision under this subsection may contain provisions 
        establishing traffic control measures applicable during 
        heavy traffic hours to reduce the use of high polluting 
        vehicles or heavy-duty vehicles, notwithstanding any 
        other provision of law.
          (5) New technologies.--The Administrator may, in 
        accordance with section 110, approve provisions of an 
        implementation plan for an Extreme Area which 
        anticipate development of new control techniques or 
        improvement of existing control technologies, and an 
        attainment demonstration based on such provisions[, if 
        the State demonstrates to the satisfaction of the 
        Administrator that--].
                  [(A) such provisions are not necessary to 
                achieve the incremental emission reductions 
                required during the first 10 years after the 
                date of the enactment of the Clean Air Act 
                Amendments of 1990; and
                  [(B) the State has submitted enforceable 
                commitments to develop and adopt contingency 
                measures to be implemented as set forth herein 
                if the anticipated technologies do not achieve 
                planned reductions.
         Such contingency measures shall be submitted to the 
        Administrator no later than 3 years before proposed 
        implementation of the plan provisions and approved or 
        disapproved by the Administrator in accordance with 
        section 110. The contingency measures shall be adequate 
        to produce emission reductions sufficient, in 
        conjunction with other approved plan provisions, to 
        achieve the periodic emission reductions required by 
        subsection (b)(1) or (c)(2) and attainment by the 
        applicable dates. If the Administrator determines that 
        an Extreme Area has failed to achieve an emission 
        reduction requirement set forth in subsection (b)(1) or 
        (c)(2), and that such failure is due in whole or part 
        to an inability to fully implement provisions approved 
        pursuant to this subsection, the Administrator shall 
        require the State to implement the contingency measures 
        to the extent necessary to assure compliance with 
        subsections (b)(1) and (c)(2).]
Any reference to the term ``attainment date'' in subsection 
(b), (c), or (d) which is incorporated by reference into this 
subsection, shall refer to the attainment date for Extreme 
Areas.
  (f) NOxRequirements.--(1) The plan provisions 
required under this subpart for major stationary sources of 
volatile organic compounds shall also apply to major stationary 
sources (as defined in section 302 and subsections (c), (d), 
and (e) of this section) of oxides of nitrogen. This subsection 
shall not apply in the case of oxides of nitrogen for those 
sources for which the Administrator determines (when the 
Administrator approves a plan or plan revision) that net air 
quality benefits are greater in the absence of reductions of 
oxides of nitrogen from the sources concerned. This subsection 
shall also not apply in the case of oxides of nitrogen for--
          (A) nonattainment areas not within an ozone transport 
        region under section 184 if the Administrator 
        determines (when the Administrator approves a plan or 
        plan revision) that additional reductions of oxides of 
        nitrogen would not contribute to attainment of the 
        national ambient air quality standard for ozone in the 
        area, or
          (B) nonattainment areas within such an ozone 
        transport region if the Administrator determines (when 
        the Administrator approves a plan or plan revision) 
        that additional reductions of oxides of nitrogen would 
        not produce net ozone air quality benefits in such 
        region.
The Administrator shall, in the Administrator's determinations, 
consider the study required under section 185B.
  (2)(A) If the Administrator determines that excess reductions 
in emissions of NOx would be achieved under 
paragraph (1), the Administrator may limit the application of 
paragraph (1) to the extent necessary to avoid achieving such 
excess reductions.
  (B) For purposes of this paragraph, excess reductions in 
emissions of NOx are emission reductions for which 
the Administrator determines that net air quality benefits are 
greater in the absence of such reductions. Alternatively, for 
purposes of this paragraph, excess reductions in emissions of 
NOx are, for--
          (i) nonattainment areas not within an ozone transport 
        region under section 184, emission reductions that the 
        Administrator determines would not contribute to 
        attainment of the national ambient air quality standard 
        for ozone in the area, or
          (ii) nonattainment areas within such ozone transport 
        region, emission reductions that the Administrator 
        determines would not produce net ozone air quality 
        benefits in such region.
  (3) At any time after the final report under section 185B is 
submitted to Congress, a person may petition the Administrator 
for a determination under paragraph (1) or (2) with respect to 
any nonattainment area or any ozone transport region under 
section 184. The Administrator shall grant or deny such 
petition within 6 months after its filing with the 
Administrator.
  (g) Milestones.--
          (1) Reductions in emissions.--6 years after the date 
        of the enactment of the Clean Air Amendments of 1990 
        and at intervals of every 3 years thereafter, the State 
        shall determine whether each nonattainment area (other 
        than an area classified as Marginal or Moderate) has 
        achieved a reduction in emissions during the preceding 
        intervals equivalent to the total emission reductions 
        required to be achieved by the end of such interval 
        pursuant to subsection (b)(1) and the corresponding 
        requirements of subsections (c)(2) (B) and (C), (d), 
        and (e). Such reduction shall be referred to in this 
        section as an applicable milestone.
          (2) Compliance demonstration.--For each nonattainment 
        area referred to in paragraph (1), not later than 90 
        days after the date on which an applicable milestone 
        occurs (not including an attainment date on which a 
        milestone occurs in cases where the standard has been 
        attained), each State in which all or part of such area 
        is located shall submit to the Administrator a 
        demonstration that the milestone has been met. A 
        demonstration under this paragraph shall be submitted 
        in such form and manner, and shall contain such 
        information and analysis, as the Administrator shall 
        require, by rule. The Administrator shall determine 
        whether or not a State's demonstration is adequate 
        within 90 days after the Administrator's receipt of a 
        demonstration which contains the information and 
        analysis required by the Administrator.
          (3) Serious and severe areas; state election.--If a 
        State fails to submit a demonstration under paragraph 
        (2) for any Serious or Severe Area within the required 
        period or if the Administrator determines that the area 
        has not met any applicable milestone, the State shall 
        elect, within 90 days after such failure or 
        determination--
                  (A) to have the area reclassified to the next 
                higher classification,
                  (B) to implement specific additional measures 
                adequate, as determined by the Administrator, 
                to meet the next milestone as provided in the 
                applicable contingency plan, or
                  (C) to adopt an economic incentive program as 
                described in paragraph (4).
        If the State makes an election under subparagraph (B), 
        the Administrator shall, within 90 days after the 
        election, review such plan and shall, if the 
        Administrator finds the contingency plan inadequate, 
        require further measures necessary to meet such 
        milestone. Once the State makes an election, it shall 
        be deemed accepted by the Administrator as meeting the 
        election requirement. If the State fails to make an 
        election required under this paragraph within the 
        required 90-day period or within 6 months thereafter, 
        the area shall be reclassified to the next higher 
        classification by operation of law at the expiration of 
        such 6-month period. Within 12 months after the date 
        required for the State to make an election, the State 
        shall submit a revision of the applicable 
        implementation plan for the area that meets the 
        requirements of this paragraph. The Administrator shall 
        review such plan revision and approve or disapprove the 
        revision within 9 months after the date of its 
        submission.
          (4) Economic incentive program.--(A) An economic 
        incentive program under this paragraph shall be 
        consistent with rules published by the Administrator 
        and sufficient, in combination with other elements of 
        the State plan, to achieve the next milestone. The 
        State program may include a nondiscriminatory system, 
        consistent with applicable law regarding interstate 
        commerce, of State established emissions fees or a 
        system of marketable permits, or a system of State fees 
        on sale or manufacture of products the use of which 
        contributes to ozone formation, or any combination of 
        the foregoing or other similar measures. The program 
        may also include incentives and requirements to reduce 
        vehicle emissions and vehicle miles traveled in the 
        area, including any of the transportation control 
        measures identified in section 108(f).
          (B) Within 2 years after the date of the enactment of 
        the Clean Air Act Amendments of 1990, the Administrator 
        shall publish rules for the programs to be adopted 
        pursuant to subparagraph (A). Such rules shall include 
        model plan provisions which may be adopted for reducing 
        emissions from permitted stationary sources, area 
        sources, and mobile sources. The guidelines shall 
        require that any revenues generated by the plan 
        provisions adopted pursuant to subparagraph (A) shall 
        be used by the State for any of the following:
                  (i) Providing incentives for achieving 
                emission reductions.
                  (ii) Providing assistance for the development 
                of innovative technologies for the control of 
                ozone air pollution and for the development of 
                lower-polluting solvents and surface coatings. 
                Such assistance shall not provide for the 
                payment of more than 75 percent of either the 
                costs of any project to develop such a 
                technology or the costs of development of a 
                lower-polluting solvent or surface coating.
                  (iii) Funding the administrative costs of 
                State programs under this Act. Not more than 50 
                percent of such revenues may be used for 
                purposes of this clause.
          (5) Extreme areas.--If a State fails to submit a 
        demonstration under paragraph (2) for any Extreme Area 
        within the required period, or if the Administrator 
        determines that the area has not met any applicable 
        milestone, the State shall, within 9 months after such 
        failure or determination, submit a plan revision to 
        implement an economic incentive program which meets the 
        requirements of paragraph (4). The Administrator shall 
        review such plan revision and approve or disapprove the 
        revision within 9 months after the date of its 
        submission.
  (h) Rural Transport Areas.--(1) Notwithstanding any other 
provision of section 181 or this section, a State containing an 
ozone nonattainment area that does not include, and is not 
adjacent to, any part of a Metropolitan Statistical Area or, 
where one exists, a Consolidated Metropolitan Statistical Area 
(as defined by the United States Bureau of the Census), which 
area is treated by the Administrator, in the Administrator's 
discretion, as a rural transport area within the meaning of 
paragraph (2), shall be treated by operation of law as 
satisfying the requirements of this section if it makes the 
submissions required under subsection (a) of this section 
(relating to marginal areas).
  (2) The Administrator may treat an ozone nonattainment area 
as a rural transport area if the Administrator finds that 
sources of VOC (and, where the Administrator determines 
relevant, NOx) emissions within the area do not make 
a significant contribution to the ozone concentrations measured 
in the area or in other areas.
  (i) Reclassified Areas.--Each State containing an ozone 
nonattainment area reclassified under section 181(b)(2) shall 
meet such requirements of subsections (b) through (d) of this 
section as may be applicable to the area as reclassified, 
according to the schedules prescribed in connection with such 
requirements, except that the Administrator may adjust any 
applicable deadlines (other than attainment dates) to the 
extent such adjustment is necessary or appropriate to assure 
consistency among the required submissions.
  (j) Multi-State Ozone Nonattainment Areas.--
          (1) Coordination among states.--Each State in which 
        there is located a portion of a single ozone 
        nonattainment area which covers more than one State 
        (hereinafter in this section referred to as a ``multi-
        State ozone nonattainment area'') shall--
                  (A) take all reasonable steps to coordinate, 
                substantively and procedurally, the revisions 
                and implementation of State implementation 
                plans applicable to the nonattainment area 
                concerned; and
                  (B) use photochemical grid modeling or any 
                other analytical method determined by the 
                Administrator, in his discretion, to be at 
                least as effective.
        The Administrator may not approve any revision of a 
        State implementation plan submitted under this part for 
        a State in which part of a multi-State ozone 
        nonattainment area is located if the plan revision for 
        that State fails to comply with the requirements of 
        this subsection.
          (2) Failure to demonstrate attainment.--If any State 
        in which there is located a portion of a multi-State 
        ozone nonattainment area fails to provide a 
        demonstration of attainment of the national ambient air 
        quality standard for ozone in that portion within the 
        required period, the State may petition the 
        Administrator to make a finding that the State would 
        have been able to make such demonstration but for the 
        failure of one or more other States in which other 
        portions of the area are located to commit to the 
        implementation of all measures required under section 
        182 (relating to plan submissions and requirements for 
        ozone nonattainment areas). If the Administrator makes 
        such finding, the provisions of section 179 (relating 
        to sanctions) shall not apply, by reason of the failure 
        to make such demonstration, in the portion of the 
        multi-State ozone nonattainment area within the State 
        submitting such petition.

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 Subpart 4--Additional Provisions for Particulate Matter Nonattainment 
Areas

           *       *       *       *       *       *       *


SEC. 189. PLAN PROVISIONS AND SCHEDULES FOR PLAN SUBMISSIONS.

  (a) Moderate Areas.--
          (1) Plan provisions.--Each State in which all or part 
        of a Moderate Area is located shall submit, according 
        to the applicable schedule under paragraph (2), an 
        implementation plan that includes each of the 
        following:
                  (A) For the purpose of meeting the 
                requirements of section 172(c)(5), a permit 
                program providing that permits meeting the 
                requirements of section 173 are required for 
                the construction and operation of new and 
                modified major stationary sources of PM-10.
                  (B) Either (i) a demonstration (including air 
                quality modeling) that the plan will provide 
                for attainment by the applicable attainment 
                date; or (ii) a demonstration that attainment 
                by such date is impracticable.
                  (C) Provisions to assure that reasonably 
                available control measures for the control of 
                PM-10 shall be implemented no later than 
                December 10, 1993, or 4 years after designation 
                in the case of an area classified as moderate 
                after the date of the enactment of the Clean 
                Air Act Amendments of 1990.
          (2) Schedule for plan submissions.--A State shall 
        submit the plan required under subparagraph (1) no 
        later than the following:
                  (A) Within 1 year of the date of the 
                enactment of the Clean Air Act Amendments of 
                1990, for areas designated nonattainment under 
                section 107(d)(4), except that the provision 
                required under subparagraph (1)(A) shall be 
                submitted no later than June 30, 1992.
                  (B) 18 months after the designation as 
                nonattainment, for those areas designated 
                nonattainment after the designations prescribed 
                under section 107(d)(4).
  (b) Serious Areas.--
          (1) Plan provisions.--In addition to the provisions 
        submitted to meet the requirements of paragraph (a)(1) 
        (relating to Moderate Areas), each State in which all 
        or part of a Serious Area is located shall submit an 
        implementation plan for such area that includes each of 
        the following:
                  (A) A demonstration (including air quality 
                modeling)--
                          (i) that the plan provides for 
                        attainment of the PM-10 national 
                        ambient air quality standard by the 
                        applicable attainment date, or
                          (ii) for any area for which the State 
                        is seeking, pursuant to section 188(e), 
                        an extension of the attainment date 
                        beyond the date set forth in section 
                        188(c), that attainment by that date 
                        would be impracticable, and that the 
                        plan provides for attainment by the 
                        most expeditious alternative date 
                        practicable.
                  (B) Provisions to assure that the best 
                available control measures for the control of 
                PM-10 shall be implemented no later than 4 
                years after the date the area is classified (or 
                reclassified) as a Serious Area.
          (2) Schedule for plan submissions.--A State shall 
        submit the demonstration required for an area under 
        paragraph (1)(A) no later than 4 years after 
        reclassification of the area to Serious, except that 
        for areas reclassified under section 188(b)(2), the 
        State shall submit the attainment demonstration within 
        18 months after reclassification to Serious. A State 
        shall submit the provisions described under paragraph 
        (1)(B) no later than 18 months after reclassification 
        of the area as a Serious Area.
          (3) Major sources.--For any Serious Area, the terms 
        ``major source'' and ``major stationary source'' 
        include any stationary source or group of stationary 
        sources located within a contiguous area and under 
        common control that emits, or has the potential to 
        emit, at least 70 tons per year of PM-10.
  (c) Milestones.--(1) Plan revisions demonstrating attainment 
submitted to the Administrator for approval under this subpart 
shall contain quantitative milestones which are to be achieved 
every 3 years until the area is redesignated attainment, which 
take into account technological achievability and economic 
feasibility, and which demonstrate reasonable further progress, 
as defined in section 171(1), toward attainment by the 
applicable date.
  (2) Not later than 90 days after the date on which a 
milestone applicable to the area occurs, each State in which 
all or part of such area is located shall submit to the 
Administrator a demonstration that all measures in the plan 
approved under this section have been implemented and that the 
milestone has been met. A demonstration under this subsection 
shall be submitted in such form and manner, and shall contain 
such information and analysis, as the Administrator shall 
require. The Administrator shall determine whether or not a 
State's demonstration under this subsection is adequate within 
90 days after the Administrator's receipt of a demonstration 
which contains the information and analysis required by the 
Administrator.
  (3) If a State fails to submit a demonstration under 
paragraph (2) with respect to a milestone within the required 
period or if the Administrator determines that the area has not 
met any applicable milestone, the Administrator shall require 
the State, within 9 months after such failure or determination 
to submit a plan revision that assures that the State will 
achieve the next milestone (or attain the national ambient air 
quality standard for PM-10, if there is no next milestone) by 
the applicable date.
  (d) Failure To Attain.--In the case of a Serious PM-10 
nonattainment area in which the PM-10 standard is not attained 
by the applicable attainment date, the State in which such area 
is located shall, after notice and opportunity for public 
comment, submit within 12 months after the applicable 
attainment date, plan revisions which provide for attainment of 
the PM-10 air quality standard and, from the date of such 
submission until attainment, for an annual reduction in PM-10 
or PM-10 precursor emissions within the area of not less than 5 
percent of the amount of such emissions as reported in the most 
recent inventory prepared for such area.
  (e) PM-10 Precursors.--The control requirements applicable 
under plans in effect under this part for major stationary 
sources of PM-10 shall also apply to major stationary sources 
of PM-10 precursors, except where the Administrator determines 
that such sources do not contribute significantly to PM-10 
levels which exceed the standard in the area. The Administrator 
shall issue guidelines regarding the application of the 
preceding sentence.

           *       *       *       *       *       *       *


TITLE III--GENERAL

           *       *       *       *       *       *       *


SEC. 319. AIR QUALITY MONITORING.

  (a) In General.--After notice and opportunity for public 
hearing, the Administrator shall promulgate regulations 
establishing an air quality monitoring system throughout the 
United States which--
          (1) utilizes uniform air quality monitoring criteria 
        and methodology and measures such air quality according 
        to a uniform air quality index,
          (2) provides for air quality monitoring stations in 
        major urban areas and other appropriate areas 
        throughout the United States to provide monitoring such 
        as will supplement (but not duplicate) air quality 
        monitoring carried out by the States required under any 
        applicable implementation plan,
          (3) provides for daily analysis and reporting of air 
        quality based upon such uniform air quality index, and
          (4) provides for recordkeeping with respect to such 
        monitoring data and for periodic analysis and reporting 
        to the general public by the Administrator with respect 
        to air quality based upon such data.
The operation of such air quality monitoring system may be 
carried out by the Administrator or by such other departments, 
agencies, or entities of the Federal Government (including the 
National Weather Service) as the President may deem 
appropriate. Any air quality monitoring system required under 
any applicable implementation plan under section 110 shall, as 
soon as practicable following promulgation of regulations under 
this section, utilize the standard criteria and methodology, 
and measure air quality according to the standard index, 
established under such regulations.
  (b) Air Quality Monitoring Data Influenced by Exceptional 
Events.--
          (1) Definition of exceptional event.--In this 
        section:
                  (A) In general.--The term ``exceptional 
                event'' means an event that--
                          (i) affects air quality;
                          (ii) is not reasonably controllable 
                        or preventable;
                          (iii) is an event caused by human 
                        activity that is unlikely to recur at a 
                        particular location or a natural event; 
                        and
                          (iv) is determined by the 
                        Administrator through the process 
                        established in the regulations 
                        promulgated under paragraph (2) to be 
                        an exceptional event.
                  (B) Exclusions.--In this subsection, the term 
                ``exceptional event'' does not include--
                          [(i) stagnation of air masses or] (i) 
                        (I) ordinarily occurring stagnation of 
                        air masses or (II) meteorological 
                        inversions; or
                          [(ii) a meteorological event 
                        involving high temperatures or lack of 
                        precipitation; or]
                          [(iii)] (ii) air pollution relating 
                        to source noncompliance.
          (2) Regulations.--
                  (A) Proposed regulations.--Not later than 
                March 1, 2006, after consultation with Federal 
                land managers and State air pollution control 
                agencies, the Administrator shall publish in 
                the Federal Register proposed regulations 
                governing the review and handling of air 
                quality monitoring data influenced by 
                exceptional events.
                  (B) Final regulations.--Not later than 1 year 
                after the date on which the Administrator 
                publishes proposed regulations under 
                subparagraph (A), and after providing an 
                opportunity for interested persons to make oral 
                presentations of views, data, and arguments 
                regarding the proposed regulations, the 
                Administrator shall promulgate final 
                regulations governing the review and handling 
                or air quality monitoring data influenced by an 
                exceptional event that are consistent with 
                paragraph (3).
          (3) Principles and requirements.--
                  (A) Principles.--In promulgating regulations 
                under this section, the Administrator shall 
                follow--
                          (i) the principle that protection of 
                        public health is the highest priority;
                          (ii) the principle that timely 
                        information should be provided to the 
                        public in any case in which the air 
                        quality is unhealthy;
                          (iii) the principle that all ambient 
                        air quality data should be included in 
                        a timely manner, an appropriate Federal 
                        air quality database that is accessible 
                        to the public;
                          (iv) the principle that each State 
                        must take necessary measures to 
                        safeguard public health regardless of 
                        the source of the air pollution; and
                          (v) the principle that air quality 
                        data should be carefully screened to 
                        ensure that events not likely to recur 
                        are represented accurately in all 
                        monitoring data and analyses.
                  (B) Requirements.--Regulations promulgated 
                under this section shall, at a minimum, provide 
                that--
                          (i) the occurrence of an exceptional 
                        event must be demonstrated by reliable, 
                        accurate data that is promptly produced 
                        and provided by Federal, State, or 
                        local government agencies;
                          (ii) a clear causal relationship must 
                        exist between the measured exceedances 
                        of a national ambient air quality 
                        standard and the exceptional event to 
                        demonstrate that the exceptional event 
                        caused a specific air pollution 
                        concentration at a particular air 
                        quality monitoring location;
                          (iii) there is a public process for 
                        determining whether an event is 
                        exceptional; and
                          (iv) there are criteria and 
                        procedures for the Governor of a State 
                        to petition the Administrator to 
                        exclude air quality monitoring data 
                        that is directly due to exceptional 
                        events from use in determinations by 
                        the Administrator with respect to 
                        exceedances or violations of the 
                        national ambient air quality standards.
          (4) Interim provision.--Until the effective date of a 
        regulation promulgated under paragraph (2), the 
        following guidance issued by the Administrator shall 
        continue to apply:
                  (A) Guidance on the identification and use of 
                air quality data affected by exceptional events 
                (July 1986).
                  (B) Areas affected by PM-10 natural events, 
                May 30, 1996.
                  (C) Appendices I, K, and N to part 50 of 
                title 40, Code of Federal Regulations.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    The Clean Air Act (CAA) has driven important progress in 
improving air quality and public health. The history of the CAA 
continues to demonstrate the success of our nation's current 
approaches and utilization of valuable tools for measuring air 
quality.
    House Republicans claim that the goal of H.R. 806, the 
``Ozone Standards Implementation Act of 2017'' is to facilitate 
a more efficient implementation of the Environmental Protection 
Agency's (EPA) National Ambient Air Quality Standards (NAAQS) 
by states and to provide states additional time to implement 
the new ozone standards. But, H.R. 806 is an irresponsible 
compilation of attacks that in reality strikes directly at the 
heart of the CAA. This bill would undermine decades of progress 
on cleaning up air pollution and protecting public health from 
all criteria pollutants--not just ozone. It would cause 
irreparable harm to public health and the environment.

       EPA'S 2015 NATIONAL AMBIENT AIR QUALITY STANDARD FOR OZONE

    The CAA requires EPA to set NAAQS for certain pollutants 
that endanger public health and the environment.\1\ These 
health-based standards are the cornerstone of the CAA. EPA sets 
primary NAAQS at concentration levels sufficient to protect the 
public health with an ``adequate margin of safety.'' For the 
six criteria pollutants--lead, particulate matter 
(PM2.5 or PM10), ozone, nitrogen dioxide 
(NO2), sulfur dioxide (SO2), and carbon 
monoxide--the primary NAAQS identifies the level of ambient air 
pollution that is ``safe'' to breathe. While costs are not 
considered in establishing these standards, costs can be and 
are considered in developing plans to achieve the necessary 
pollution reductions to meet the standards. EPA must review 
each NAAQS every five years and make revisions as appropriate.
---------------------------------------------------------------------------
    \1\Clean Air Act at Sec. 109.
---------------------------------------------------------------------------
    On October 1, 2015, EPA issued a final rule strengthening 
the ozone NAAQS from 75 parts per billion (ppb) to 70 ppb.\2\ 
This decision was based on the review of thousands of studies 
showing ozone's effects on public health and welfare. Ozone, 
also known as smog, has a number of health impacts, ranging 
from increased asthma attacks and cases of acute bronchitis in 
children to premature death. Ozone also damages vegetation, 
including crops and ecosystems. The revised standard is 
consistent with the recommendations of the independent Clean 
Air Scientific Advisory Committee (CASAC), which had concluded 
that the science supports a standard within a range of 70 ppb 
down to 60 ppb.\3\ The estimated net benefits of the updated 
ozone NAAQS are up to $4.5 billion, excluding California where 
the estimated net benefits are up to $1.3 billion.
---------------------------------------------------------------------------
    \2\U.S. Environmental Protection Agency (EPA), National Ambient Air 
Quality Standards for Ozone, 80 Fed. Reg. 65292 (Oct. 26, 2015) (final 
rule) (hereinafter ``ozone NAAQS'').
    \3\See U.S. EPA, Overview of EPA's Updates to the Air Quality 
Standards for Ground-Level Ozone (Oct. 1, 2015) (www.epa.gov/sites/
production/files/2015-10/documents/overview_of_2015_rule.pdf).
---------------------------------------------------------------------------
    EPA Administrator Pruitt has been a vocal opponent of the 
2015 ozone NAAQS, and has directed the Agency to review and 
potentially revise the final rule.\4\ To that end, EPA recently 
announced a one-year delay of its statutory deadline to make 
final attainment area designations, citing the need for more 
time to complete its review of the standard.\5\ Drastic cuts 
proposed by EPA's FY 2018 budget would also undermine the 2015 
ozone NAAQS, especially for states who depend on critical grant 
funding to improve air quality and implement the CAA.\6\
---------------------------------------------------------------------------
    \4\See Pruitt v. EPA: 14 Challenges of EPA Rules by the Oklahoma 
Attorney General, New York Times (Jan. 14, 2017) (www.nytimes.com/
interactive/2017/01/14/us/politics/document-Pruitt-v-EPA-a-Compilation-
of-Oklahoma-14.html#document/p335/a334755); Trump may change for scrap 
Obama ozone standard, Greenwire (Apr. 10, 2017) (www.eenews.net/
greenwire/stories/1060052869/).
    \5\U.S. EPA, EPA to Extend Deadlines for 2015 Ozone NAAQS Area 
Designations (Jun. 6, 2017) (www.epa.gov/newsreleases/epa-extend-
deadline-2015-ozone-naaqs-area-designations).
    \6\See National Association of Clean Air Agencies, Impacts of 
Proposed FY 2018 Budget Cuts on State and Local Air Quality Agencies 
(May 22, 2017) (www.4cleanair.org/sites/default/files/Documents/
NACAAFundingReport-FY2018.pdf).
---------------------------------------------------------------------------

                                ANALYSIS

    The overall effect of the proposed changes to the CAA 
included in H.R. 806 will be to delay the implementation of 
health-based air quality standards, make achievement of more 
protective standards more difficult, and inject cost and 
technological feasibility considerations into the standard-
setting process. The bill would also fundamentally alter those 
CAA provisions that ensure EPA's decisions to protect public 
health are informed by the most up-to-date scientific data, 
findings, and knowledge about air pollutants and their health 
and environmental impacts. Below is an analysis of the most 
egregious provisions of H.R. 806.
    Section 2(a) would drastically extend statutory deadlines 
associated with implementing the 2015 ozone NAAQS by up to 
eight years.\7\ This would ensure that the outdated ozone 
standard would remain in effect--a standard that was found to 
be insufficient to protect public health.
---------------------------------------------------------------------------
    \7\State recommendations on nonattainment areas would not be due to 
EPA until October 26, 2024, and EPA would have until October 26, 2025, 
to finalize designations. SIPs would then be due to EPA by October 26, 
2026. The statutory deadlines under the CAA are October 1, 2016, 
October 1, 2017, and October 1, 2020 to October 1, 2021, respectively. 
EPA recently announced a one year delay of their October 2017 deadline 
for finalizing designations.
---------------------------------------------------------------------------
    Section 3(a) extends the review period for all criteria air 
pollutant NAAQS from every five years to every ten years. A 
NAAQS review cycle of ten years would subvert the purpose of 
these standards, which is to establish a level of emissions 
that adequately protects public health based on the latest 
scientific knowledge. The current five-year cycle provides a 
reasonable amount of time for the development and review of new 
studies, and EPA is only required to make changes to a NAAQS if 
the latest information supports doing so to protect public 
health with ``an adequate margin of safety.'' Extending the 
deadline would result in fewer reviews, and less up-to-date 
scientific information supporting air quality decisions. The 
longer review period would also result in much longer periods 
of exposure to dangerous air pollutants in cases where 
scientific studies demonstrate the need for stronger standards 
to protect public health.
    Section 3(b) changes the long-standing criteria for 
establishing an air quality standard from one that is based 
solely on protecting public health to one that includes a 
consideration of the ``technological feasibility'' of the 
standard. This provision removes the important firewall 
separating the setting of the standards from their 
implementation, turning a NAAQS into a reflection of how much 
public health protection we can afford, not what is ``safe'' to 
breathe. Although the bill's sponsors assert this would be a 
minor change, adding this consideration would fundamentally 
alter the CAA in a manner that would erode public health and 
environmental protections. Considerations of cost and 
technological feasibility are--and should remain--separate from 
the identification of the appropriate standard to ensure the 
air we breathe is safe. Costs and technological feasibility as 
well as other non-risk factors are already considered in the 
selection of options for attaining the necessary standard.
    Section 3(d) would create a loophole in the preconstruction 
permitting process, by establishing arbitrary procedural 
requirements for EPA to follow when setting a new air quality 
standard. If EPA does not issue rules and guidance concurrently 
with an updated NAAQS, then a new or expanding facility can 
apply for a preconstruction permit based on the old air quality 
standard, which is not adequate to protect public health. As a 
practical matter, it is not always feasible or advisable for 
EPA to issue concurrent implementation regulations and guidance 
when revising a NAAQS, since most guidance develops organically 
as a result of consultation with state and local air agencies 
and affected sources after they begin the process of 
implementing the NAAQS. Ultimately, this section could give new 
sources of pollution ``amnesty'' from new air quality standards 
leaving existing facilities with a burden to do more to reduce 
their emissions if the area is near or in nonattainment--
worsening air quality and raising the economy-wide cost of 
cleaning up pollution.
    Section 3(e) would exempt extreme nonattainment areas from 
having to establish contingency measures if they fail to make 
progress toward achieving the ozone standard. Without these 
contingency measures, there would be no incentive for extreme 
nonattainment areas to even attempt to control their emissions. 
This may result in the area not meeting the ozone standard 
indefinitely or having to make any progress toward achieving 
the standard.
    Section 3(h) drastically expands the list of circumstances 
that are included in the definition of ``exceptional events'' 
to include common conditions and occurrences that are not, in 
fact, exceptional--such as high temperatures or drought. 
Allowing states to seek relief by claiming additional 
exceptional events will artificially reduce reporting on the 
severity of air pollution in the area. It would also all but 
ensure that areas having stagnant air masses; experiencing 
meteorological inversions, heat waves, or droughts; and that 
have poor air quality would remain in nonattainment. Further, 
changing air quality monitoring protocols in ways that lead to 
underreporting of poor air quality conditions will cause areas 
with poor air quality to appear much better under conditions of 
extreme heat and drought. Given that ozone levels are often 
higher on hotter days, such an expansion of the exceptional 
events definition would be a significant change.
    Finally, section 4 would give two areas in extreme 
nonattainment a free pass on pollution that comes from outside 
the state, from exceptional events, and from pollution beyond 
their regulatory control. These exemptions would apply to 
states that are simply not trying to improve air quality, as 
well as those acting in good faith. This section amounts to a 
regulatory giveaway, allowing high levels of dangerous air 
pollution to continue, without any incentive to fix the 
problem. Further, EPA already has a process in place to ensure 
states aren't penalized for what they can't control, so there 
is no need for the broad exemption provided in this section.
    Ultimately, H.R. 806 does nothing to address the real 
constraints that states and the EPA face in their efforts to 
implement the new ozone standards--resources. In fact, section 
5 actually blocks any additional funds from being appropriated 
to carry out this act. Much of the permitting and implementing 
of air quality standards is done by the states, with the 
experts at EPA providing guidance and technical assistance. 
Without adequate funding and staff, it is difficult for EPA to 
do this in an efficient manner, and the additional requirements 
of this bill only make this situation worse. Taking into 
account the proposed draconian cuts to EPA's FY 2018 budget, 
section 5 would make it virtually impossible to ensure the 
American public is protected from dangerous air pollution, or 
that state and local governments would receive federal 
assistance to achieve healthy air quality for their residents.
    We could and should do far more to support states' efforts 
to control dangerous air pollution by providing EPA with 
adequate resources to support state activities rather than by 
providing regulatory relief to polluters.

H.R. 806: AN IRRESPONSIBLE, CYNICAL AND UNNECESSARY ATTACK ON THE CLEAN 
                                AIR ACT

    In conclusion, H.R. 806 offers no constructive improvements 
to the CAA. It is designed to erode public health and 
environmental protections in the guise of regulatory relief. 
Poor air quality is a significant threat to human health and 
the environment. Other nations are realizing now what we 
learned long ago, that unregulated emission of dangerous air 
pollutants is unsustainable. The CAA has helped us to make 
dramatic improvements in air quality over the past decades. Our 
economy has grown during this same period demonstrating that we 
can have both healthy air and a vibrant economy. H.R. 806 is an 
unnecessary and dangerous bill that should not become law. For 
the reasons stated above, we dissent from the views contained 
in the Committee's report.

                                        Frank Pallone, Jr.,
                                                    Ranking Member.
                                                Paul Tonko,
                       Ranking Member, Subcommittee on Environment.

                                  [all]