ST 41
. 

### UNITEDSTATESENVIRONMENTALPROTECTIONAGENCY OfficeofAirQualityPlanningandStandards ______



### ResearchTrianglePark,NorthCarolina27711 PRO 

# 21Au MEMORANDUN SUBJECT: Stage IIModel Rule FROM: G. T. Helms, Chief Ozone/CO Programs Branch (MD-15) TO: Air BranchChief, Regions I-X Attached is a draft Stage II model rule. Several Regions have requested such amodel to assist States in formulating their ownrules. This model contains whatwe believe are desirable features which incorporateprovisions in the CleanAir Act, the General Preamble for the Implementation ofTitle I (57 FR 13498), the Stage II technical guidance (Technical Guidance-Stage II VaporRecovery Systems for Control ofVehicleRefueling Emissions at Gasoline Dispensing Facilities, EPA-450/3-91-022a, November 1991) and the enforcement guidance (EnforcementGuidance for Stage II Vehicle Refueling Control Programs, October 1991). Wewant to cautionthatthis model is only one ofmanyways inwhich an acceptable rule can bewritten. This model is being circulatedwhile still in draft formbecause several ofyou have expressed a need for immediate guidance. It is ourview that, even as a draft, this model contains much useful material which is drawn from the guidance documents. Wewill take comments on the draft, but the draftmay be circulated nowto States for theiruse. Please note that this model rule contains several sentences in boldprint which indicate parenthetical sections that are not part ofthe model rule itsJf, butrather are directions or information given to theuse1 ofthe model rule. Anyone who wishes to comment or askquestions about this draftmodel rule may contact Bill Johnson at (919) 541—5245. Attachmentcc: 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 RobinMoran, Region

## vi Edwin Buckner, Region

## vii Cindy Reynolds, RegionVIII John Ungvarsky, Region

## ix Mike Lidgard, Region X JanTierney

a

## DRAFT

MODELRULE

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 ofmore 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 1preceding the adoption date. (2) Any gasoline dispensing facility exemptunderparagraph (a)(1)(ii) {and paragraph (a)(1)(i) ifa separate ISBMG applicability threshold is exercised}, andwhose gasoline throughput for any 30 dayperiod ever exceeds the applicability threshold, shall become subjectto the provisions ofthis rule. (3) Each exempt gasoline dispensing facility is subject only to the recordkeeping and reporting provisions ofparagraphs (g)(4)
, (g)(5)
, and (g)(6) (4) Once a gasoline dispensing facilitybecomes subjectto this rule, itwill 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 ofwhich is commenced after the adoption date, shall be subject to the provisions of this rule ifthe 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 2the State}. (2) “Approved Stage II vapor recovery system” means a Stage II vapor recovery system thathas demonstrated 95 percent by weight or greater VOC control efficiency by: 

### (i) Being a CaliforniaAir 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 3dispensing equipment at a gasoline dispensing facility. Aperson is not an ISBMG if suchperson: (i) Is arefiner; (ii) Controls, is controlledby, or is under common control with arefiner; (iii) Is otherwise directly or indirectly affiliatedwith a refiner orwith apersonwho controls, is controlled by, or is under common control with a refiner (unless the sole affiliation is bymeans ofa supply contract or an agreement or contractto
use atrademark, trade name, servicemark, or other identifying symbol or name owned by such refiner or any suchperson); or (iv) Receives less than 50 percent oftheir annual income fromrefining ormarketing ofgasoline. {The term “ISBMG” needs to be defined only ifthe 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 4a person engaged inproducing gasoline, kerosene, distillate fuel oils, residual fuel oils, lubricants, or otherproducts through distillation ofpetroleum or through the redistillation, cracking, or reforming ofunfinishedpetroleumderivatives, 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 controlledby, or are under common control with the refinerwill be includedwith the capacity ofsuch refiner. {This definition is necessary only ifthe terni “ISBMG” is defined.} (12) “Reid vaporpressure” means the absolute vaporpressure ofvolatile crude oil and volatile non—viscous petroleum liquids, except liquefiedpetroleumgases, as determined by ASTMD323—89. (13) “stage ii vapor recovery system” means a systemthat limits the discharge to the atmosphere ofgasoline vapors displaced during the dispensing ofgasoline into motor vehicle fuel tanks. (c) Standards. (1) Except as exemptedunder the applicability provisions of paragraph (a), no owner or operator shall transfer, permit the transfer, or provide equipment forthe 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 5at the dispensers, and shall not contain any components (e. g., remote vapor checkvalves in balance type systems) thatwould significantly impede theperformance ofthe functional tests required inparagraph (e)(1). (2) The owner or operator shallmaintain the Stage II vapor recovery system inproper operating condition as specifiedby the manufacturer and free ofdefects that could impair the effectiveness ofthe system. For thepurposes ofthis 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 ofany component that is a part ofthe approved system; (ii) A vapor hose that is crimped or flattened such that the vaporpassage is blocked, or the pressure drop through the vapor hose exceeds by a factor of 2 ormore the value as certified in the approved system; (iii) A nozzle boot that is torn in one or both ofthe following ways: (A) A triangular—shaped or similar tearmore 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 ofthe faceplate (accumulated);

Draft

— 8/17/92 6(v) A nozzle shutoffmechanismthatmalfunctions in any manner; (vi) Vapor return lines, including such components as swivels, anti—recirculationvalves, andundergroundpiping, that malfunction or are blocked, or are restricted suchthat the pressure drop through the line exceeds by a factor of 2 ormore the value as certified inthe approved system; (vii) Avaporprocessing unit that is inoperative; (viii) A vacuumproducing device that is inoperative; (ix) Pressure/vacuumreliefvalves, vapor checkvalves, or dry breaks that are inoperative; or (x) Any equipment defect that is identified by [the Department] as substantially impairing the effectiveness ofthe system in reducing refueling vapor emissions. (3) All Stage II vapor recovery systems and gasoline dispensing equipment shall be maintainedto have no leaks. (4) No owner or operator shall: (i) repair, modify, or permit the repair ormodification of the Stage II vapor recovery system or its components such that they are different fromtheir 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 ofthe

L.1LL {[The Department] should implement a testing/certification approval system for the retrofitting of certified equipmentwith non—certified, rebuilt, or aftermarketnon—original equipment

Draft

— 8/17/92 7manufacturer parts. [The Department] could either: (1) establish
a testing mechanismwhich 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, butwhich does not substantially impair the effectiveness ofthe system as described inparagraph (c)(2), may remain in operationbut shall be repaired or replacedwithin 15 days after such identification. (6) Upon identification of any ofthe defects described in paragraph (c)(2), the owner or operator shall tag “Out—of—Order” all dispensing equipment forwhich vaporrecovery has been impaired. The tagged equipment shall berendered inoperable and the tag(s) shall not be removeduntil the defective equipmenthas 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 ofthe repairs; and (ii) The tagged equipmenthas been inspected and authorized foruse by [the Department]. (d) Compliance Schedules. (1) Gasoline dispensing facilities subject to the

1-icmcr-f-- P 1—h 1 1-h 1- sh 1 1 1r !..LA’... tA‘A ‘.J.tJ A. ‘flA ‘..ttA. A...A.... iAt..t..L .t. ...A.JALLkJ.11 with the following schedule for installation and operation ofa Stage II vapor recovery system: (i) 6 months after the adoption date, for facilities for

Draft

— 8/17/92 8which construction commenced afterNovember 15, 1990; (ii) 1 year afterthe adoption date, for facilities existing as ofNovember 15, 1990 thatdispense an average of at least 378,500 L (100,000 gal) ofgasolinepermonth, based onmonthly throughputs for the 2-yearperiodbefore the adoption date; and (iii) 2 years afterthe adoption date, for all other facilities. (2) Each owner or operator ofan initially exempt gasoline dispensing facility that becomes subjectto this rule under the provisions ofparagraph (a)(2) shall install andplace into operation an approved Stage II vaporrecovery systemwithin 1 year after notifying [the Department] in accordancewith paragraph (g)(3). (3) Each independent small business marketer ofgasoline subject to the requirements ofthis rule as ofthe adoption date shall comply with the following schedule for installation and operation of Stage II vapor recovery systems: (1) 33 percent ofthe affected facilities owned by the ISBMG in compliance at the end ofthe firstyear after the adoption date;(ii) 66 percent in compliance at the end ofthe secondyear after the adoption date; and (iii) 100 percent in compliance atthe end ofthe third year aj_LeL i.IIe LUJ1:)

- LtZ± {This compliance provision for ISBMG’s needs to be included only ifa separate applicability threshold is exercised for these facilities [see paragraph (a)(1)(i)].’ Also, the State may elect
Draft

— 8/17/92 9to 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 ofthe entire system (both infrastructure plumbing and aboveground equipment) shall be conducted. Tests shall be conducted in accordance with the following testprocedures as found inAppendix J ofthe EPA document, “Technical Guidance

— Stage II Vapor Recovery Systems for Control ofVehicle 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 10conducting the initially requiredtesting, the owner or operator shall notify [the Department] at least 5 days in advance as to when the testing will occur andwhatparty will conduct the testing. [The Department] shall have therightto conductthe testing if itdesires to do so. (3) Recertification ofthe function ofthe Stage II vapor recovery system shall beperformed at least every 5 years orupon major systemreplacement ormodification, whichever occurs first. Functional tests shall also be performedupon requestby [the Department]. This recertification shall include a leak check test and all other functional tests thatwere required forthe initial system certification. Amajor systemmodification is considered to be replacing, repairing, orupgrading 75 percent or more of a facility’s Stage II vapor recovery system. (f) Training and Public Education. (1) Each owner or operator ofa gasoline dispensing facility subject to this rule shall, in accordancewith the compliance schedules for installation and operation ofa Stage II vapor recovery systemprovided in paragraph (d), ensure that at least
one facility representative receives training and instruction in the operation andmaintenance ofthe 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 trainingprior to the initiation of operation of the system.} This facility
Draft

— 8/17/92 11representative shall instruct every current and future facility employee concerning thepurposes and correct operating procedures ofthe system. Ifthe facility representative who completed the training course leaves the facility, another facility representative shall take and successfully complete the training
coursewithin 3 months after departure ofthe previously trained employee. Training shall include, butneed notbe limitedto, the following subject areas: (i) Purposes and effects ofthe Stage II vaporrecovery program; (ii) Equipment operation and function specific to that facility’s Stage II vapor recovery system; (iii) Maintenance schedules andrequirements 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 ofnon—compliancewith 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) Awarning to not attempt continuedrefueling after automatic shutoffofthe system (an indicationthatthe vehicle fuel tank is full); and (iii) Atelephone numberto be usedto report to [the Department] anyproblems experiencedwiththe system. (g) Recordkeeping andReporting. (1) All permits or licenses to operatethe 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 vaporrecovery system meets or exceeds the requirements ofthe tests specified in paragraph (e)(1) shall be maintained. These testresults 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 anypart ofthe Stage II vapor recovery system shall be logged on amaintenance 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 ofthe 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 issuedby [the Department) shall be maintained in chronological order. (iv) A file of all compliance records, including warnings, notices ofviolations, and other compliancerecords issuedby [the Department) shall be maintained. This file shall be organized chronologically andmaintained separately from the inspection file required in (iii) above. (v) Proof of attendance andcompletion ofthe 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 ofnozzles (excluding diesel and kerosene) used formotor 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 ofthe Stage II vapor recovery system, including the results of all functional

Draft

— 8/17/92 14tests as specified inparagraph (e)(1); and (vi) The signature ofthe owner or operator. (3) Upon any repair ormodificationto an existing Stage II vaporrecovery system or its components such thatthey are different fromtheir approved configuration, the owner or operator shall submit information to [theDepartment] that details the changes to the information inthe previous system registration and includes the signature ofthe owner or operator. This information shall be submitted to [the Department] within 30 days aftercompletion of such repair ormodification. (4) Each gasoline dispensing facility that intends to claim exempt status shall submitthroughput information to [the Department] documenting thatthe facility is in fact exempt. The actual throughput records shall be submitedwithin 2 years after the adoption date for all existing facilities andwithin 2 years after the start of operation for new facillities. (5) Each gasoline dispensing facility exemptunder paragraph (a)(1)(ii) {and paragraph (a)(1)(1) ifa separate applicability threshold is exercised for ISBMG’s} shall maintain records of gasoline throughputwhich 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 ofthis rule shall, within 30 days after a request
Draft

— 8/17/92 15by [the Department], submit records which demonstrate thatthe gasoline dispensing facility is in fact exemptunder the provisions ofparagraph (a). (h) Penalties. {State or local regulations should contain a section that does at least one of the following: (1) Lists penaltyprovisions for violations; (2) References a State or local code orregulation that provides forpenalties; or (3) References/provides authority for enforcement of administrative, civil, or criminalpenalties. This couldbe an administrative code or a policies and procedures document or some other enforceable docuinent.}

Draft

— 8/17/92 16