ST41.

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

Office of Air Quality Planning and Standards

Research Triangle Park, North Carolina 27711

PRO

21Au

MEMORANDUN

SUBJECT: Stage II Model Rule

FROM: G. T. Helms, Chief

Ozone/CO Programs Branch (MD-15)

TO: Air Branch Chief, Regions I-X

Attached is a draft Stage II model rule. Several Regions

have requested such a model to assist States in formulating their

own rules. This model contains what we believe are desirable

features which incorporate provisions in the Clean Air Act, the

General Preamble for the Implementation of Title I (57 FR 13498),

the Stage II technical guidance (Technical Guidance-Stage II

Vapor Recovery Systems for Control of Vehicle Refueling Emissions

at Gasoline Dispensing Facilities, EPA-450/3-91-022a, November

1991) and the enforcement guidance (Enforcement Guidance for

Stage II Vehicle Refueling Control Programs, October 1991).

We want to caution thatthis model is only one of many ways

in which an acceptable rule can be written. This model is being

circulated while still in draft form because several of you have

expressed a need for immediate guidance. It is our view that,

even as a draft, this model contains much useful material which

is drawn from the guidance documents. We will take comments on

the draft, but the draft may be circulated now to States for

their use.

Please note that this model rule contains several sentences

in boldprint which indicate parenthetical sections that are not

part of the model rule itsJf, but rather are directions or

information given to the use1 of the model rule.

Anyone who wishes to comment or ask questions about this

draft model rule may contact Bill Johnson at (919) 541—5245.

Attachment
cc: Anne Arnold, Region i Paul Truchan, Region ii Maria Pino, Region iii Torn Lyttle, Region iv Jay Bortzer, Region v

Stephen Shedd

Paul Argyropouio

2

Robin Moran, Region vi Edwin Buckner, Region vii Cindy Reynolds, Region VIII

Mike

John Ungvarsky, Region ix

Lidgard, Region X Jan Tierney

a
DRAFT

MODEL RULE

Gasoline Dispensing Facility - Stage II Vapor Recovery

(a) Applicability.

(1) The provisions of this rule apply to any gasoline

dispensing facility that is located in {list all current

moderate, serious, severe, or extreme ozone nonattainment areas

within the State}, and either:

(i) Is owned by an independent small business marketer of

gasoline (ISBMG) and has a monthly throughput of more than

189,250 liters (L) (50,000 gallons gal]) of gasoline for any 30—

day period during the 2-year period preceding the adoption date

{Section 182(b) (3) of the Clean Air Act provides an exemption for

ISBMG’s with throughputs of 50,000 gallons per month or less.

However, a State is authorized under section 324(b) to adopt and

enforce vapor recovery standards for ISBMG’s with cutoffs at or

below this amount. Therefore, in a State rule, a lower

applicability threshold may be applied to ISBMG’s or the State

could determine not to distinguish ISBMG’s}; or

(ii) Has a monthly throughput of:more than 37,850 L (10,000

gal) of gasoline for any 30-day period during the 2-year period

Draft — 8/17/92 1
preceding the adoption date.

(2) Any gasoline dispensing facility exempt under paragraph

(a) (1) (ii) {and paragraph (a) (1) (i) if a separate ISBMG

applicability threshold is exercised}, and whose gasoline

throughput for any 30 day period ever exceeds the applicability

threshold, shall become subject to the provisions of this rule.

(3) Each exempt gasoline dispensing facility is subject only

to the recordkeeping and reporting provisions of paragraphs

(g) (4) , (g) (5) , and (g) (6)

(4) Once a gasoline dispensing facility becomes subject to

this rule, it will continue to be subject even if its gasoline

throughput later falls below the applicability threshold.

(5) Any gasoline dispensing facility (including facilities

owned by ISBMG’s) , the construction of which is commenced after

the adoption date, shall be subject to the provisions of this

rule if the facility’s gasoline throughput exceeds 37,850 L

(10,000 gal) per month.

(6) The provisions of this rule do not apply to:

(i) Any stationary storage tank with a capacity of less than

950 L (250 gal) that was constructed after December 31, 1978;

(ii) Any stationary storage tank with a capacity of less

than 7,600 L (2,000 gal) that was constructed prior to January 1,

1979; or

(iii) Gasoline dispensing equipment used exclusively for the

fueling of aircraft, marine vessels, or implements of husbandry.

(b) Definitions.

(1) “Adoption date” means {insert date of rule adoption by

Draft — 8/17/92 2
the State}.

(2) “Approved Stage II vapor recovery system” means a Stage

II vapor recovery system that has demonstrated 95 percent by

weight or greater VOC control efficiency by:

(i) Being a California Air Resources Board (CARB) certified

system;

(ii) Being tested and approved by [the Department] using

CARB’s test procedures and methods; or

(iii) Meeting the requirements of equivalent test procedures

and methods approved by [the Department] and the U. S.

Environmental Protection Agency (EPA).

(3) “CARB” means the California Air Resources Board,

Sacramento, CA 95812.

(4) “Control” means more than 50 percent ownership of a

business or of a corporation’s stock.

(5) “Gasoline” means any petroleum distillate or petroleum

distillate/alcohol blend having a Reid vapor pressure of 4 pounds

per square inch (psi) or greater that is used as a fuel for

internal combustion engines.

(6) “Gasoline dispensing facility” means any site where

gasoline is transferred from a stationary storage tank to a motor

vehicle fuel tank used to provide fuel to the engine of that

motor vehicle.

(7) “Independent small business marketer of gasoline

(ISBMG)” means a person engaged in the marketing of gasoline who

would be required to pay for the procurement and installation of

vapor recovery equipment, i.e., the owner of the tanks and other

Draft — 8/17/92 3
dispensing equipment at a gasoline dispensing facility. A person

is not an ISBMG if such person:

(i) Is a refiner;

(ii) Controls, is controlled by, or is under common control

with a refiner;

(iii) Is otherwise directly or indirectly affiliated with a

refiner or with a person who controls, is controlled by, or is

under common control with a refiner (unless the sole affiliation

is by means of a supply contract or an agreement or contract to

use a trademark, trade name, service mark, or other identifying

symbol or name owned by such refiner or any such person); or

(iv) Receives less than 50 percent of their annual income

from refining or marketing of gasoline.

{The term “ISBMG” needs to be defined only if the State

elects to exercise a separate applicability threshold for these

facilities [see paragraph (a) (1) (i)J..}

(8) “Leak” means liquid or vapor loss from the gasoline

dispensing system or vapor recovery system as determined by

visual inspection or functional testing.

(9) “Owner or operator” means any person who owns, leases,

operates, manages, supervises, or controls (directly or

indirectly) a gasoline dispensing facility.

(10) “Person” means any individual, partnership,

copartnership, firm, company, corporation, association, joint

stock company, trust, estate, political subdivision, or any other

legal entity, or their legal representative, agent, or assigns.

(11) “Refiner” means, for the purpose of this Stage II rule,

Draft — 8/17/92 4
a person engaged in producing gasoline, kerosene, distillate fuel

oils, residual fuel oils, lubricants, or other products through

distillation of petroleum or through the redistillation,

cracking, or reforming of unfinished petroleum derivatives, and

whose total refinery capacity is 65,000 barrels per day or

greater. In determining the total refinery capacity, the

capacity of any persons who control, are controlled by, or are

under common control with the refiner will be included with the

capacity of such refiner.

{This definition is necessary only if the terni “ISBMG” is

defined.}

(12) “Reid vapor pressure” means the absolute vapor pressure

of volatile crude oil and volatile non—viscous petroleum liquids,

except liquefied petroleum gases, as determined by ASTM D323—89.

(13) “stage ii vapor recovery system” means a system that

limits the discharge to the atmosphere of gasoline vapors

displaced during the dispensing of gasoline into motor vehicle

fuel tanks.

(c) Standards.

(1) Except as exempted under the applicability provisions of

paragraph (a), no owner or operator shall transfer, permit the

transfer, or provide equipment for the transfer of gasoline from

a stationary storage tank at a gasoline dispensing facility into

a motor vehicle fuel tank unless an approved Stage II vapor

recovery system capable of achieving at least 95 percent by

weight VOC control efficiency has been installed and is properly

used during the transfer. The system shall utilize coaxial hoses

Draft — 8/17/92 5
at the dispensers, and shall not contain any components (e. g.,

remote vapor check valves in balance type systems) that would

significantly impede the performance of the functional tests

required in paragraph (e) (1).

(2) The owner or operator shall maintain the Stage II vapor

recovery system in proper operating condition as specified by the

manufacturer and free of defects that could impair the

effectiveness of the system. For the purposes of this paragraph,

the following is a list of equipment defects in Stage II vapor

recovery systems that substantially impair the effectiveness of

the systems in reducing refueling vapor emissions:

(i) Absence or disconnection of any component that is a part

of the approved system;

(ii) A vapor hose that is crimped or flattened such that the

vapor passage is blocked, or the pressure drop through the vapor

hose exceeds by a factor of 2 or more the value as certified in

the approved system;

(iii) A nozzle boot that is torn in one or both of the

following ways:

(A) A triangular—shaped or similar tear more than 1/2 inch

on a side, or a hole more than 1/2 inch in diameter, or

(B) A slit more than 1 inch in length;

(iv) A faceplate or flexible cone on a balance nozzle or a

nozzle in a vacuum assist type system, that is damaged such that

the ability to achieve a seal with a fill pipe interface is

affected for at least 1/4 of the circumference of the faceplate

(accumulated);

Draft — 8/17/92 6
(v) A nozzle shutoff mechanism that malfunctions in any

manner;

(vi) Vapor return lines, including such components as

swivels, anti—recirculation valves, and underground piping, that

malfunction or are blocked, or are restricted such that the

pressure drop through the line exceeds by a factor of 2 or more

the value as certified in the approved system;

(vii) A vapor processing unit that is inoperative;

(viii) A vacuum producing device that is inoperative;

(ix) Pressure/vacuum relief valves, vapor check valves, or

dry breaks that are inoperative; or

(x) Any equipment defect that is identified by [the

Department] as substantially impairing the effectiveness of the

system in reducing refueling vapor emissions.

(3) All Stage II vapor recovery systems and gasoline

dispensing equipment shall be maintained to have no leaks.

(4) No owner or operator shall:

(i) repair, modify, or permit the repair or modification of

the Stage II vapor recovery system or its components such that

they are different from their approved configuration, except as

approved in advance by [the Department], or

(ii) tamper with, or permit tampering with, the system in a

manner that would impair the operation or effectiveness of the

L.1LL

{[The Department] should implement a testing/certification

approval system for the retrofitting of certified equipment with

non—certified, rebuilt, or aftermarket non—original equipment

Draft — 8/17/92 7
manufacturer parts. [The Department] could either: (1) establish

a testing mechanism which demonstrates that these replacement

parts do not degrade the Stage II vapor recovery system’s

original efficiency or durability, or (2) accept replacement

parts approved under the CRB program.}

(5) Any component identified as defective, but which does

not substantially impair the effectiveness of the system as

described in paragraph (c) (2), may remain in operation but shall

be repaired or replaced within 15 days after such identification.

(6) Upon identification of any of the defects described in

paragraph (c) (2), the owner or operator shall tag “Out—of—Order”

all dispensing equipment for which vapor recovery has been

impaired. The tagged equipment shall be rendered inoperable and

the tag(s) shall not be removed until the defective equipment has

been repaired, replaced, or adjusted, as necessary.

(7) In the case of defects identified by a compliance

inspector, tagged equipment shall be rendered inoperable and the

tag(s) shall not be removed until:

(i) [The Department] has been notified of the repairs; and

(ii) The tagged equipment has been inspected and authorized

for use by [the Department].

(d) Compliance Schedules.

(1) Gasoline dispensing facilities subject to the

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with the following schedule for installation and operation of a

Stage II vapor recovery system:

(i) 6 months after the adoption date, for facilities for

Draft — 8/17/92 8
which construction commenced after November 15, 1990;

(ii) 1 year after the adoption date, for facilities existing

as of November 15, 1990 that dispense an average of at least

378,500 L (100,000 gal) of gasoline per month, based on monthly

throughputs for the 2-year period before the adoption date; and

(iii) 2 years after the adoption date, for all other

facilities.

(2) Each owner or operator of an initially exempt gasoline

dispensing facility that becomes subject to this rule under the

provisions of paragraph (a) (2) shall install and place into

operation an approved Stage II vapor recovery system within 1

year after notifying [the Department] in accordance with

paragraph (g) (3).

(3) Each independent small business marketer of gasoline

subject to the requirements of this rule as of the adoption date

shall comply with the following schedule for installation and

operation of Stage II vapor recovery systems:

(1) 33 percent of the affected facilities owned by the ISBMG

in compliance at the end of the first year after the adoption

date;

(ii) 66 percent in compliance at the end of the second year

after the adoption date; and

(iii) 100 percent in compliance at the end of the third year

aj_ LeL i.IIe LUJ1:) - LtZ±

{This compliance provision for ISBMG’s needs to be included

only if a separate applicability threshold is exercised for these

facilities [see paragraph (a)(1)(i)].’ Also, the State may elect

Draft — 8/17/92 9
to apply the compliance schedule in paragraph (d) (1) to ISBMG’s.}

(e) Testing.

(1) Once the Stage II vapor recovery system is in

operational condition and ready for use, testing to verify the

proper installation and function of the entire system (both

infrastructure plumbing and aboveground equipment) shall be

conducted. Tests shall be conducted in accordance with the

following test procedures as found in Appendix J of the EPA

document, “Technical Guidance — Stage II Vapor Recovery Systems

for Control of Vehicle Refueling Emissions at Gasoline Dispensing

Facilities,” Vol. II (EPA—450/3—91—022b), November 1991:

(i) Bay Area Source Test Procedure ST-30, Leak Test

Procedure, or San Diego Test Procedure TP-91—l, Pressure

Decay/Leak Test Procedure;

(ii) Bay Area Source Test Procedure ST—27, Dynamic Back

Pressure, or San Diego Test Procedure TP—91—2, Pressure Drop vs

Flow/Liquid Blockage Test Procedure; and

(iii) Bay Area Source Test Procedure ST-37, Liquid Removal

Devices.

{These test procedures are applicable to all balance type

systems and to some assist type systems. State rules will have

to specify any additional tests necessary for verifying the

proper function of assist type systems.)

(2) Testing may be conducted by [the Department] or by an

installation or testing company that meets the minimum criteria

established by [the Department] for conducting such tests.

In the case where a party other than tthe Department] will be

Draft — 8/17/92 10
conducting the initially required testing, the owner or operator

shall notify [the Department] at least 5 days in advance as to

when the testing will occur and what party will conduct the

testing. [The Department] shall have the right to conduct the

testing if it desires to do so.

(3) Recertification of the function of the Stage II vapor

recovery system shall be performed at least every 5 years or upon

major system replacement or modification, whichever occurs first.

Functional tests shall also be performed upon request by [the

Department]. This recertification shall include a leak check

test and all other functional tests that were required for the

initial system certification. A major system modification is

considered to be replacing, repairing, or upgrading 75 percent or

more of a facility’s Stage II vapor recovery system.

(f) Training and Public Education.

(1) Each owner or operator of a gasoline dispensing facility

subject to this rule shall, in accordance with the compliance

schedules for installation and operation of a Stage II vapor

recovery system provided in paragraph (d), ensure that at least

one facility representative receives training and instruction in

the operation and maintenance of the Stage II vapor recovery

system by successfully completing a training course approved by

[the Department]. The required training shall be completed no

later than 3 months after the initiation of operation of the

facility’s Stage II vapor recovery system. {It is preferable

that the facility representative obtain the training prior to the

initiation of operation of the system.} This facility

Draft — 8/17/92 11
representative shall instruct every current and future facility

employee concerning the purposes and correct operating procedures

of the system. If the facility representative who completed the

training course leaves the facility, another facility

representative shall take and successfully complete the training

course within 3 months after departure of the previously trained

employee. Training shall include, but need not be limited to,

the following subject areas:

(i) Purposes and effects of the Stage II vapor recovery

program;

(ii) Equipment operation and function specific to that

facility’s Stage II vapor recovery system;

(iii) Maintenance schedules and requirements for the

facility’s equipment;

(iv) Equipment warranties;

(v) Equipment manufacturer contacts (names, addresses, and

telephone numbers) for parts and service; and

(vi) Enforcement consequences of non—compliance with program

requirements. {The discussion of enforcement aspects should not

be required if [the Department] does not conduct the training.}

(2) Each owner or operator shall post operating instructions

conspicuously on the front of each gasoline dispenser connected

to the Stage II vapor recovery system. {The State should

consider specifying exact location, letter type or size, etc.}

These instructions shall, at a minimum, include:

(i) A clear description of how to correctly dispense

gasoline using the system;

Draft — 8/17/92 12
(ii) A warning to not attempt continued refueling after

automatic shutoff of the system (an indication that the vehicle

fuel tank is full); and

(iii) A telephone number to be used to report to [the

Department] any problems experienced with the system.

(g) Recordkeeping and Reporting.

(1) All permits or licenses to operate the facility or to

operate a specific system at the facility shall be current at all

times. The records required in (i) through (iv) below shall be

maintained at each facility for 5 years, and shall be made

available to [the Department], EPA, and local enforcement

personnel upon request:

(i) Verification that the Stage II vapor recovery system

meets or exceeds the requirements of the tests specified in

paragraph (e) (1) shall be maintained. These test results shall

be dated and shall contain the names, addresses, and telephone

numbers of the companies responsible for system installation and

testing.

(ii) All maintenance conducted on any part of the Stage II

vapor recovery system shall be logged on a maintenance record

maintained in chronological order. This maintenance record shall

include a general part description, the date repaired or

replaced, the replacement part manufacturer’s information, a

general description of the part location in the system (e.g.,

pump number, etc.), and a description of the problem. The log

shall also indicate the time period and duration of each

malfunction of the system.

Draft — 8/17/92 13
(iii) A file of all inspection reports issued by [the

Department) shall be maintained in chronological order.

(iv) A file of all compliance records, including warnings,

notices of violations, and other compliance records issued by

[the Department) shall be maintained. This file shall be

organized chronologically and maintained separately from the

inspection file required in (iii) above.

(v) Proof of attendance and completion of the training

specified in paragraph (f) (1) shall be maintained on the facility

premises. The documentation for each employee shall be

maintained as long as that employee continues to work at the

facility.

(2) Within 10 days after the installation and completion of

testing of a Stage II vapor recovery system, the owner or

operator shall submit to [the Department] a registration form, as

provided by [the Department], which provides at a minimum the

following:

(i) The facility name and address;

(ii) The CARB Executive Order number, if applicable, for

the Stage II vapor recovery system installed;

(iii) The number of nozzles (excluding diesel and kerosene)

used for motor vehicle refueling;

(iv) The maximum gasoline throughput for any 30-day period

of operation of the facility, not including periods of operation

2 years prior to the adoption date;

(v) The date of completion of installation of the Stage II

vapor recovery system, including the results of all functional

Draft — 8/17/92 14
tests as specified in paragraph (e) (1); and

(vi) The signature of the owner or operator.

(3) Upon any repair or modification to an existing Stage II

vapor recovery system or its components such that they are

different from their approved configuration, the owner or

operator shall submit information to [the Department] that

details the changes to the information in the previous system

registration and includes the signature of the owner or operator.

This information shall be submitted to [the Department] within 30

days after completion of such repair or modification.

(4) Each gasoline dispensing facility that intends to claim

exempt status shall submit throughput information to [the

Department] documenting that the facility is in fact exempt. The

actual throughput records shall be submited within 2 years after

the adoption date for all existing facilities and within 2 years

after the start of operation for new facillities.

(5) Each gasoline dispensing facility exempt under paragraph

(a) (1) (ii) {and paragraph (a) (1) (1) if a separate applicability

threshold is exercised for ISBMG’s} shall maintain records of

gasoline throughput which will allow the gasoline throughput for

any 30—day period to be continuously determined. These records

shall be maintained on the premises for 2 years. Any such

facility whose gasoline throughput for any 30-day period ever

exceeds the applicability threshold shall notify [the Department]

within 30 days.

(6) Each owner or operator claiming to be exempt from the

requirements of this rule shall, within 30 days after a request

Draft — 8/17/92 15
by [the Department], submit records which demonstrate that the

gasoline dispensing facility is in fact exempt under the

provisions of paragraph (a).

(h) Penalties.

{State or local regulations should contain a section that

does at least one of the following:

(1) Lists penalty provisions for violations;

(2) References a State or local code or regulation that

provides for penalties; or

(3) References/provides authority for enforcement of

administrative, civil, or criminal penalties. This could be an

administrative code or a policies and procedures document or some

other enforceable docuinent.}

Draft — 8/17/92 16