United States Environmental Protection Agency, Region IX, A ir Division

Technical Support Document

for EPA’ s Notice of Proposed Rulemaking

on R evisions to the Arizona State Implementation Plan (SIP)

Arizona Department of Weights and Measures

and Arizona Department of Environmental Quality

EPA's Analysis of Arizona Revised Statutes (ARS) : Title 41, Chapter 15 Article 1 , 41

- 2051 , subsections (6), (10), (11), (12), and (13); Article 6 , 41

- 2121 , subsection (5); Article 7 , 41

- 2131 , 41

- 2132, and 41

- 2133 Arizona Administrative Code (AAC):

R20

- 2

- 101 R20

- 2

- 901

– R20

- 2

- 905 and R20

- 2

- 90 7

– R20

- 2

- 912

(Vapor Recovery Rules)

August 201 1 Prepared by Joanne Wells Approved by Andrew Steckel- 2

-

Arizona Department of Environmental Quality (ADEQ)
Submitted Statutes and Rules: On September 21, 2009, ADEQ submitted the following statutory provisions and administrative rules to update the state’s stage II vapor recovery program in the Arizona SIP. Arizona Revised Statutes (ARS) Title 41, Chapter 15, article 1

– General Provisions , Section 41

- 2051 Definitions , subsections (6), (10) to (13) ; Title 41, Chapter 15, article 6

– Motor Fuel , Section 41

- 2121 Definitions , subsection ( 5 ) ; Title 41, Chapter 15, article 7

– Gasoline Vapor Control , S ections 41

- 2131 Definit ions , 41

- 2132 Stage I and stage II vapor recovery systems , and 41

- 2133 Compliance schedules

. Arizona Administrative Code (AAC) Title 20, c hapter 2, article 1 . Administration and Procedures : R20

- 2

- 101

- Definitions Title 20, chapter 2, article 9 . Gasoline Vapor Control : R20

- 2

- 901

- Material Incorporated by Reference R20

- 2

- 902

- Exemptions R20

- 2

- 903

- Equipment and Installation R20

- 2

- 904

- Application Requirements and Process for Authority to Construct

Plan Approval R20

- 2

- 905

- Initial Inspection and Testing R20

- 2

- 907

- Operations (amended on October 8, 1998) R20

- 2

- 908

- Training and Public Education (amended on October 8, 1998) R20

- 2

- 909

- Recordkeeping and Reporting (amended on October 8, 1998) R20

- 2

- 910

- Annual Inspection and Testing R20

- 2

- 911

- Compliance Inspections R20

- 2

- 912

- Enforcement This SIP revision submittal is deemed complete as of March 21, 2010 by operation of law. The statutory provisions listed above supersede previously

- enacted statutory provisions that were submitted on February 16, 1993 but on which EPA has not taken action. The administrative rules listed above were amended , recodified and renumbered from applicable SIP rules on October 8, 1998 and amended on June 5 , 2004 unless noted otherwise above. There are no submi ttals of these rules on which EPA has not acted. Background Section 182(b)(3) of the Clean Air Act, as amended in 1990, requires gasoline dispensing facilities located in nonattainment areas designated as serious or worse to install and- 3

-

operate stage II vapor recovery equipment

. 1 U pon enactment of the 1990 Amendments to the CAA, a portion of Maricopa County ( referred to as the “ Phoenix metropolitan area ” ) was classified as a “ moderate ” 1

- hour ozone nonattainment area. EPA later reclassified the Phoenix m etropolitan area as “serious.” The State of Arizona has included these requirements into the Arizona Revised Statutes (ARS), Title 41, Chapter 15, and it applies to Area A , as defined in ARS Section 49

- 541, an area larger than the Phoenix 1

- hour ozone nona ttainment area. Article 9, Gasoline Vapor Control , of the Arizona Administrative Code (AAC) sets out the standards for any required stage I & II vapor recovery systems. In 2004, EPA designated the “Phoenix

- Mesa” area as nonattainment for the 1997 8

- hour o zone standard. The Phoenix

- Mesa 8

- hour ozone nonattainment area includes a somewhat larger portion of Maricopa County than had been included in the 1

- hour ozone nonattainment area, and also includes a small portion ( Apache Junction ) of Pinal County

. The 8

- hour area was not classified and EPA was going to treat the area as a "subpart 1 Basic" nonattainment area, until a court decision in December 2006 vacated our implementing regulations in this regard. In response to the court’s decision, EPA has proposed to classify the Phoenix

- Mesa 8

- hour ozone nonattainment area as "marginal" based on 2001

- 2003 ozone monitoring data, but EPA ha s not , as of August 5, 2011, finalized that action . The pre

- existing 1

- hour ozone nonattainment area portion of Marico pa County was redesignated to attainment for the 1

- hour ozone standard, and the 1

- hour ozone standard was revoked effective June 15, 2005 , but the 1

- hour ozone requirements, such as stage II vapor recovery, that applied to the Phoenix metropolitan area by virtue of the area’s designation and classification (i.e., “serious” nonattainment) as of June 15, 2004 continue to apply to the area under the anti

backsliding provisions of EPA’s Phase I implementation rule governing the transition from the 1

- hour, to th e 8

- hour, ozone NAAQS

. Applicable SIP Rules : Arizona Administrative Code (AAC) Title 4 , c hapter 2 1 , article 9 Gasoline Vapor Control : R4

- 31

- 901

- Definitions

. This rule w ould be superseded in the SIP upon approval of submitted Rule R20

- 2

- 101

. R4

- 31

- 902

- Material Incorporated by Reference . This rule w ould be superseded in the SIP upon approval of submitted Rule R20

- 2

- 9 01

.
1 See CAA section 182(b)(3), 42 U.S.C. 7511a(b)(3). Originally, the section 182(b)(3) Stage II requirement also applied in all Moderate ozone nonattainment areas. However, under section 202(a)(6) of the CAA, 42 U.S.C. 7521(a)(6), the requirements of section 182(b)(3) no longer apply in Moderate ozone nonattainment areas after EPA promulgated ORVR standards on April 6, 1994, 59 FR 16262, codified at 40 CFR parts 86 (including 86.098

- 8), 88 and 600. Under implementation rules issued in 2 004 for the 1997 8

- hour ozone standard, EPA retained the Stage II

- related requirements under section 182(b)(3) as they applied for the 1

- hour ozone standard

. 40 CFR 51.900(f)(5).- 4

-

R4

- 31

- 903

- Exemptions . T his rule would be superseded in the SIP upon approval of submitted Rule R20

- 2

- 902

. R4

- 31

- 904

- Equipment a nd Installation

. This rule would be superseded upon approval of submitted Rule R20

- 2

- 903

. R4

- 31

- 905

- Plan Review and Approval

. This rule would be superseded upon approval of submitted Rule s R20

- 2

- 904 and R20

- 2

- 905

. R4

- 31

- 906

- Operation

. This rule would be superseded upon approval of submitted Rule R20

- 2

- 907

. R4

- 31

- 907

- Training and Public Education . This rule would be superseded upon approval of submitted Rule R20

- 2

- 908

. R4

- 31

- 90 8

- Recordkeeping and Reporting

. This rule would be superseded upon approv al of s ubmitted Rule R20

- 2

- 909

. R4

- 31

- 909

- Annual Tests

. This rule would be superseded upon approval of submitted Rule R20

- 2

- 9 10

. R4

- 31

- 91 0

- Enforcement

. This rule would be superseded upon approval of submitted Rule R20

- 2

- 912

. There are no rules in the existing SIP that correspond to submitted rule R20

- 2

- 911 , and thus, i t would be new to the SIP upon its approval

. These rules in the SIP were adopted on August 27, 1993 by the Arizona Department of Weights and Measures (ADWM) and submitted by Arizona Depa rtment of Environmental Quality (ADEQ) on May 27, 1994. EPA approved the se rules for gasoline vapor control, Arizona Administrative Code (AAC) Title 4, Chapter 31, Article 9 into the Arizona SIP on November 1, 1994 (59 FR 54521). Summary of S ubmitted Statutes The following is a summary of each statutory provision submitted on September 21, 2009 for approval as part of the Arizona SIP : Title 41, Chapter 15, article 1

– General Provision , Section 41
- 2051
. Definitions This section includes definitions for c ert ification, Department, d iesel fuel, d irector, and E85. Title 41, Chapter 15, article 6

– Motor Fuel , Section 41
- 2121
. Definition s This section includes the definition for Gasoline. The definition has been amended to exclude “E85.” Title 41, Chapter 15, article 7

– Gasoline Vapor Control The following three sections of article 7 are included: Sections 41
- 2131
. Definitions includes the definitions for Annual throughput, Clean air act, Gasoline dispensing site, Stage I vapor collection system, Stage II vapor collection system, and Vapor control system. Section 41
- 2132
. Stage I and stage II vapor recovery systems generally includes : designated areas where s tage I and stage II are required, requirement for- 5

-

use of only California A ir R esources B oard (CARB) certified s tage I & s tage II systems and components , plan approval for new and modified systems, training of operators, maintenance to ensure “vapor

- tight” integrity, and p osting of operating instructions for dispensing fuel at gasoline dispensing sites. Stage I and s tage II vapor collection systems are required at gasoline dispensing sites with throughputs greater than 10,000 gallons per month , however independent small bus iness marketers with throughput of less than 50,000 gallons per month and gasoline dispensing sites at manufacturer proving grounds are exempt from stage II requirements. Section 41
- 2133 Compliance schedules for gasoline disp ensing facilities located in designated areas.
T here are no previous versions of the ARS provisions listed above in the Arizona SIP with the exception of ARS 41

- 2121, paragraph (5), which defines the term “gasoline.” We approved an earlier version of the definition for “gasoline” (then codified in paragraph (4) of ARS section 41

- 2121) in connection with our approval of the carbon monoxide redesignation request and maintenance plan for Tucson area. See 65 FR 36353 (June 8, 2000), as corrected at 65 FR 50651 (August 21, 2000) and 69 FR 12802 (March 18, 2004). Summary of Rule Revisions The gasoline vapor control rules set forth in AAC, title 20, chapter 2, articles 1 and 9 control the emissions of volatile organic compounds (VOCs) during the transfer of gasoline into storage tanks (Stage I) and into motor vehicle fuel tanks (Stage II)

. These rules require use of CARB certified S tage II systems, authority to construct plans, inspections , testing and maintenance of the vapor control equipment and recordkeeping.
Th e se rules have been revi sed, recodified, and renumbered. The number for the SIP approved rule is shown in the parentheses. The following is a summary of revisions made to the SIP approved rules and the summary of one new rule being added to the Arizona SIP

. R20
- 2
- 101 (R4
- 31
- 901) Definitions 25 new d efinitions were added including : Administrative Order , which includes corrective actions that can be taken for a violation of Title 41 Chapter 15, four of the definitions identify National Institute of Standards and Technology (NIST) Hand books (44, 112, 130, and 133) which are incorporated by reference and a number of definitions relate d to the NIST or weights and measures. The remaining definitions were added to identify agencies (e.g. ADEQ, EPA) or persons (own er or operator), or terms used in the rules (e.g. ASTM, certified prover, motor vehicle, etc.).
R20
- 2
- 901 (R4
- 31
- 902) Material I ncorporated by Reference Appendix J.4 (San Diego Test Procedure TP

- 91

- 2) of EPA technical guidance document

– Stage II Vapor R ecovery Systems for Control of Vehicle Refueling Emissions at- 6

-

Gasoline Dispensing Facilities Vol. II was deleted. Appendix J.5 (San Diego Test Procedure TP

- 91

- 1) of same document remains in rule. San Diego AP CD Test Procedure TP

- 96

- 1 and five California A ir Resources Board ( CARB ) test procedures : TP

- 201.4, TP

- 201.5, TP

- 201.2C, TP

- 201.6, and TP

- 201.2B were added.
R20
- 2
- 902 (R4
- 31
- 903) Exemptions The requirement that the person requesting the exemption based on A.R.S. 41

- 2132(C) submit a written throughput report monthly in place of a onetime demonstration was added

. Additional requirements to qualify for exemption as “an independent small business marketer ” were added. An exemption from stage II for motor raceways, motor vehicle proving grounds, marine and aircraft fueling facilities was added.
R20
- 2
- 903 (R4
- 31
- 904) Equipment and Installation A new provision was added to state when the department would reject a vapor recovery system or componen t from future installation. The provision which addresses piping was revised to now include S tage I and requires that it shall be designed and constructed as certified by CARB. Language has been added to prohibit alterations from the CARB certified configu ration without department approval. A new provision has been added to address when deficient fittings, assemblies, or components cannot be permanently corrected, then they shall not be used in A rizona

. New provision s ha ve been added allowing stage I spil l containment to have a plugged drain if hand

- operated pump is kept on site and pressure/vacuum valves are required on top of vent lines for gasoline storage tanks for S tage II vapor recovery systems.
R20
- 2
- 904 (R4
- 31
- 905 in part ) Application Requirements and Process for Authority to Construct Plan Approval This rule ha s been substantially revised to include additional administ rative requirements for obtaining approval of an authority to construct plan application . An authority to construct pl an application approval is required prior to beginning construction or to make major modifications to an exi s ting system or component at a site requiring a vapor recovery system

. In addition to the new administrative requirements, the following rule revis ions were made: T he definition of a major modification has been added to the rule. The requirements for inspection and testing following the completion of construction have been deleted from this rule and this rule refer ences new rule R20

- 2

- 905 for the initial inspection and testing required

. R20
- 2
- 905 ( R4
- 31
- 905 in part ) Initial Inspection and Testing This new rule addresses the requirements for providing the department with a written certification of completion by the contractor and to schedu le an inspection that includes tests and acceptance criteria specifie d in the plan approval. The rule also includes:- 7

-

A n updated list of relevant tests and requirements for the specific vapor recovery system installed. New a dministrative requirements for s cheduling and cancellation of tests and inspections, acceptance of test results and what steps need to be taken if any of the tests fail.
R20
- 2
- 907 (R4
- 31
- 906) Operation This rule address es the requirement s for operating both stage I and II vapor re covery systems and their components. This rule has been updated to include: 1. A r evised require ment that owner operates systems in compliance with CARB certification and not just manufacturer’s specifications. 2. The list of components to be inspected daily ha s been updated to include new and revised requirements. New requirements for inspecting S tage I vapor recovery components h a ve also been added. 3. The requirement for owner/ operators to im mediately place malfunctioning S tage II vacuum
- assist vapor recovery equipment out of service and to notify the Department has been added to section D. Section D addresses when the owner or operator shall immediately stop using any Stage II vapor recovery system or component found to have any of the defects listed in this section. 4. A new requirement for proper operation of Stage I vapor recovery include s fuel transfer from a gasoline stora ge tank to a mobile transporter was added. 5. N ew requirements to minimize gasoline vapors emitted during und erground tank tightness testin g were also added.
R20
- 2
- 908 (R4
- 31
- 907) Training and Public Education This rule addresses the requirements for training of the operators of gasoline dispensing sites and information that must be p o sted at the facility to educate the public. O nly a few minor changes to requirements have been made

. R20
- 2
- 909 (R4
- 31
- 908) Recordkeeping and reporting This rule addresses the recordkeeping and reporting requirements for owner or operators of gasoline dispensing sites emplo ying S t a ge II vapor recovery. Only a few minor administrative changes were made to the rule.
R20
- 2
- 910 (R4
- 31
- 909) Annual Inspections and Testing This rule has been completely revised as follows: The annual test must be conducted by a registered service representative on or before the annua l inspection date. This section includes specific requirements for notification of Department and scheduling of inspections. The tests referenced for annual inspection are now listed in new rule R20

- 2

- 905. New requirements have been added to address testi ng results and failure of tests, and how tests are to be performed
R20
- 2
- 911 (New ) Compliance Inspections This rule was added to allow unannounced compliance inspections of S tage I and S tage II vapor- 8

-

re covery systems by the Department and if a violation of A.R.S. Title 41, chapt er 15 or Article 9 is revealed then the Department shall require the vapor recovery system or component undergo the appropriate test specified in R20

- 2

- 910.
R20
- 2
- 912 (R4
- 31
- 910) Enforcement This rule states that if the Departmen t finds that a S tage II vapor recovery system or component is noncompliant, then the department shall issue the owner or operate an administrative order and place the system or component out of operation. This rule has been revised to include the requireme nt that the owner/operator may be required to schedule an inspection for the s tage II vapor recovery system or component before putting a defective or non

- compliant component back into service.
Rule Evaluation EPA is primarily using the following three criteria to evaluate these Statutes and Rule s
. a. Rule Stringency

– As noted above, C AA § 1 8 2(b) (3) require s states with “ serious ” (a nd higher ) ozone nonattainment areas to submit SIP revisions that require all owner or operators of gasoline dispen s ing systems to install and operate systems for gasoline vapor recovery of emissions from the fueling of motor vehicles (i.e., stage II vapor controls)

. Because the Phoenix metropolitan area had been classified as “seri ous” nonattainment for the 1

- hour ozone standard and has been designated as nonattainment for the 8

- hour ozone standard, the section 182(b)(3) stage II vapor recovery requirements continue to apply within the Phoenix metropolitan area under EPA’s anti

- back sliding rules (see 40 CFR 51.905(a)(1). CAA section 182(b)(3) applies to facilities that sell more than 10,000 gallons of gasoline per month (50,000 gallons per month in the case of a independent small business marketer of gasoline as defined in section 3 24 of the CAA). CAA section 182(b)(3) also specifies a compliance schedule, which is generally six months to two years after the date of adoption of the state requirements for the installation and operation of systems for gasoline vapor recovery of emissi ons from the fueling of motor vehicles

. b. Enforceability

– CAA § 110(a)(2)(A) requires that regulations submitted to EPA for SIP approval must be clear and legally enforceable.
c. Anti

- Backsliding

- CAA §110(l) and §193 restricts certain SIP revisions that would relax existing SIP

- approved requirements.
The State of Arizona has included the CAA § 182(b)(3) requirements into the Arizona Revised Statutes (ARS), Title 41, Chapter 15 and Article 9, Gasoline Vapor Control of the Arizona Administrative Code (AAC) which sets out the standards for any required stage I & II vapor recovery systems. In general, t he revisions of these rules and the one new rule are as stringent as the Draft Model Rule and the requirements outline d in the “Gasoline Vapor Recovery Guidelines , ” EPA Region IX, (April 2000). (See Guidance documents 1 and 2.)- 9

-

However, t he submitted statutes and rules provide exemptions for gasoline dispensing sites at manufacturer’s proving grounds and motor raceways, for marine and aircraft fueling facilities, and for E85 dispensing pumps. The exemption for motor proving grounds is acceptable because the motor proving grounds that had been operating in the nonattainment area has been closed and because such dispensing sites fall below the 10,000 gallon per month low

- volume threshold exemption under section 182(b)(3) (i.e., based on the usage rates at the relocated facility, now operating in Yuma County . (See letter from ADWM to EPA dated August 1, 2011.)
To the exten t that the motor raceways exemption refers to street

- legal vehicle refueling, the information gathered by ADWM indicates that the volume of refueling falls far below the 10,000 gallon per month low

- volume threshold exemption under section 182(b)(3). (See l etter from ADWM to EPA dated August 1, 2011.) As to extent that the motor raceways exemption applies to race cars, the exemption is acceptable because these types of vehicles are not “motor vehicles” as defined in CAA section 216(2). The same is true for marine and aircraft fueling facilities. As to E85 dispensing pumps in the Phoenix metropolitan area, we believe that a waiver of stage II vapor recovery requirements is appropriate based on our determination that onboard refueling va

por recovery (ORVR) is in “widespread use” within the class of vehicles (i.e., flex

- fuel vehicles, or FFVs) that can use E85. Such waivers are allowed under CAA section 202(a)(6). A more detailed discussion on these exemptions is included in the preamble t o the proposed rule for which this TSD was prepared. In summary, w e have determined that these rules comply with section 182(b)(3)

. The inspection, testing, recordkeeping, reporting and other requirements generally ensure that the submitted rules can be enforced and t he revisions to the rules have expanded these requirements, improved the clarity, and therefore have improved enforceability, and overall have strengthened the Arizona vapor control rules. A lso, we find that the revision would not interfere with RFP and attainment of the NAAQS, consistent with the requirements of CAA section 110(l) [see CAA section 110(l) discussion in the preamble to the direct final rule ].
Rule Deficiencies We have identified no deficiencies with these rules sufficient fo r EPA to propose less than full approval.
Additional Recommendations for Next Rule Revision The following revisions are not currently the basis for rule disapproval, but are recommended for the next time the rule is amended. For clarity, we suggest including definitions for “vapor

- tight” used in ARS 41

- 2131 and 41

- 2132, and “topping off” used in ARS 41

- 2132 as had been included in R4

- 31

- 901 but not retained in R20

- 20

- 2

- 101. We also suggest including a definition for “ m otor vehicle- 10

-

proving grounds” us ed in R20

- 2

- 902 to clarify that the exemption applies only to ORVR

equipped vehicles , and a definition for “registered service representative

. ” For clarity , enforceability and prevention of possible high emitting sources in the future , we recommend elimi nating the exemption for “independent small business marketers” (ISBM) which is currently allowed in Title 41, Chapter 15, article 7

– Gasoline Vapor Control, Section 41

- 2132 since we understand from discussions with staff at ADWM that this exemption is c urrently not used.
EPA Action We believe that the submitted Arizona statutes and rules for Stage I and II vapor recovery are enforceable, more stringent than the current SIP rules, and comply with the speci fic requirements for gasoline vapor recovery under the CAA . These statutes and rules should be given full approval for incorporation into the Arizona SIP under section 110(k)(3) of the CAA as amended in 1990, superseding the precursor SIP rules cited above.
Guidance Documents Guidance and policy documents we use to help evaluate these rules include the following: 1. Draft M odel R ule , Gasoline Dispensing Facility

- Stage II V apor R ecovery , EPA (August 17 , 1992). 2. Gasoline Vapor Recovery Guidelines , EPA Region IX (April 24, 2000). 3. Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations , EPA (May 25, 1988). [The Bluebook] 4. Guidance Document for Correcting Common VOC & Other Rule Defi ciencies , EPA Region 9 (August 21, 2001). [The Little Bluebook] 5. Removal of Stage II Vapor Recovery in Situations Where Widespread Use of Onboard Vapor Recovery is Demonstrated , memorandum from Stephen D. Page, Director, EPA Office of Air Quality Planning and Standards, to Regional Air Division Directors, dated December 12, 2006.