United States Environmental Protection Agency Region IX Air Division

Technical Support Document

for EPA’s Notice of Proposed Rulemaking

for the California State Implementation Plan as submitted by

the California Air Resources Board

EPA’s Anal ys is of San Joaquin Valley

Air Pollution Control District’s Rule 4625, Wastewater Separators

October 20 1 0 Prepared b y J oanne Wells Approved b y Andrew Steckel2

San Joaquin Valley Unified Air Pollution Control District (SJVUAPCD) Submitted Rule  Rule 4625, Wastewater Separators was originall y adopted on April 11, 1991 as Rule 463.4, amended on December 17, 1992, and submitted on August 24, 2007 . The submittal was determined complete on September 17, 2007. There are no other submittals of th i s rule on which EPA has not acted. Applicable SIP Rules  The SIP version of this rule is SJVUAPCD Rule 463.4, Wastewater Separators, adopted on April 11, 1991, approved on May 13, 1993 (58 FR 28354). Background On January

2, 2008 (73 FR 48), EPA published a direct final approval of revisions to the California State Implementation Plan (SIP). These revisions concerned SJVUAPCD rules that address reduction of animal matter, and volatile organic compound (VOC) emissions from crude oil operations and petrole um refinery equipment, asphalt paving and maintenance, and petroleum solvent dry

cleaning
. The direct final action was published without prior proposal because EPA anticipated no adverse comment. The direct final rule stated that if adverse comments were received b y February 1, 2008, EPA would publish a timely removal in the Federal Register
. EPA received timely

adverse comment s . Consequently , we removed the direct final approval of SJVUAPCD Rules 4104, 4402, 4404, 4453, 4454, 4625, 4641, and 4672 ( s ee 73 FR 13440)
. This technical support document (TSD) onl y addresses SJVUAPCD Rule 4625. We do not intend to take final action based on our January 2008 proposal regarding this rule. As a result, we are not summarizing or replying to comments submitted in response to our January 2008 proposal regarding this rule. No specific comments were received for Rule 4625. However, the general comments received expressed concern regarding whether these rules complied with the requirements for reasonably available control technology (RACT) described in CAA Section 182(b)(2) and elsewhere. Purposes of Rule and Rule Amendments Section 110(a) of the CAA requires states to submit regulations that control VOCs , oxides of nitrogen, particulate matter, and other air pollutants which harm human health and the environment. Th is rule w as developed as part of the local agency ’s program to control VOC emissions
. The purpose of Rule 4625 is to limit VOC emissions from oil

- water wastewater separators b y requiring covers an d use of vapor loss control devices with a control efficiency of at least 90%. The amendments to approved SIP Rule 463.4 are summarized as follows:

 The rule is renumbered from 463.4 to 4625.  The format is improved, the rule purpose is added, the definition of VOC is deleted.  Paragraph 4.3 is added, which allows an exemption from the BACT and offset requirements of Rule 2201 for existing facilities where an incineration device has been added for the sole purpose of compl yi ng with the requirements of this rule.3

Rule Evaluation EPA is primarily

using the following three criteria to evaluate Rule 4625. 1. E nforceability

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

- Backsliding

- CAA §110(l) restricts certain SIP revisions that would relax existing SIP
- approved requirements. 3. Rule Stringency

– CAA § 172(b) and 182(a)(2)(A) require ozone nonattainment areas to implement RACT for ozone precursors. The SJVUAPCD regulates an extreme 1
- hr ozone nonattainment area and an extreme 8
- hr ozone nonattainment area (see 40 CFR part 81) and must fulfill the requirements o f RACT
. On April 16, 2009, SJVUAPCD adopted its “RACT Demonstration for Ozone SIP,” which provides the District’s demonstration that RACT is implemented for all appropriate rules. This includes several pages discussing Rule 4625. ( See Cover and applicab le pages attached.) In summary , SJVUAPCD states that:

 Rule 4625 VOC control requirements are basically the same as contained in EPA’s relevant control technique guidelines (CTG). The applicable CTG for these sources is “Control of Refinery

Vacuum Producing Sy stems, Wastewater Separators and Process Units”, EPA
- 450/2

- 77
- 025, October 1977.  Overall, Rule 4625 is as stringent as the federal New Source Performance Standard (NSPS), Standards of Performance for VOC Emissions from Petroleum Refinery Wastewater S ys tems, 40 CFR 60 Subpart QQQ, November 23, 1988 (53 FR 47623).  The District believes that Rule 4625 is as stringent as the NESHAP/MACT standard, National Emission Standards for Oil

- Water Separators and Organic

- Water Separators, 40 CFR 63 Subpart VV, July 1, 1996 (61 FR 34195).  Rule 4625 imposes very similar requirements to those in other large California nonattainment areas, such as South Coast (SCAQMD) and Bay Area (BAAQMD). In general, we concur with the District’s anal ys is that this rule imposes requirements that are similar to the requirements in the 1977 CTG. However, Rule 4625 includes an exemption (4.2) for Air Flotation Units which is not found in the CTG or in other Cal ifornia districts’ rules. Rule 4625 has requirements for controlling VOCs that are similar to the basic requirements stated in the NSPS and the NESHAP/MACT. However, these regulations have requirements for stricter VOC controls (95%) and additional design requirements for controlling fugitive emissions or breathing losses, and additional requirements for inspections and maintenance. These stricter requirements minimize fugitive emissions and vapor losses from properl y designed and well maintained oil

- wate r separators and their associated slop or skimmed oil storage tanks. Rule 4625 general requirements are similar to the requirements found in other large California nonattaiment areas such as Ventura, South Coast and Bay Area. However, both SCAQMD Rule4

1 176 (1996) and BAAQMD Reg. 8, Rule 8 (1993) require vapor control devices with 95% efficiency whereas Rule 4625 only

requires 90% efficiency . The SCAQMD and BAAQMD rules also include more specific design, operation, inspection and maintenance requirements that are similar to the requirements found in the NSPS (Subpart QQQ) and NESHAP (Subpart VV). SJVUAPCD Rule 4625 requirements are the original Rule 463.4 re quirements, adopted in 1991.This rule has not been updated to include more current requirements for design, maintenance, inspections and operation as specified in the NSPS and NESHAP/MACT or to replace outdated test methods. In summary , the changes to Rul e 4625 are mostly administrative and do not change or relax the requirements of this rule. The rule is generall y enforceable, but needs to be revised to replace outdated and inappropriate test methods. In addition, the new exemption (4.3) is not appropriate and SJVAPCD has not adequatel y demonstrated that this rule satisfies current RACT. These deficiencies are discussed in more detail in the Rule Deficiencies section below. Rule Deficiencies The following deficiencies preclude full approval of Rule 462 5 into the SIP : 1. The December 1992 amendment added exemption 4.3, which reads “For existing facilities, if an incineration device is added or modified for the sole purpose of compl yi ng with the requirements of this rule, such a device shall be exempt from the Best Available Control Technology

and the Offset requirements of Rule 2201 (New and Modified Stati onary Source Review Rule ) ”. This exemption should be removed from Rule 4625. An y exemptions to NSR requirements should be evaluated in context of SJVUAPC D’s NSR program (e.g., Rule 2020) and inc orporated within the NSR program only if appropriate. Such exemptions should not be in source

- specific prohibitory rules like Rule 4625. 2. Although Rule 4625 includes similar requirements to the 1977 CTG, SJVUAPCD has not adequatel y demonstrated that Rule 4625 currentl y implements RACT because RACT can change over time as control technology improves and/or becomes more available. More stringent requirements exist in the NSPS (1988), NESHAP (1995), BAAQMD Rule 8

- 8 (1993) and SCAQMD 1176 (1996)
. T hese regulations have requirements for stricter VOC controls (see, e.g., 95% requirement in SCAQMD Rule 1176, section (e)(2)(A)(ii) and (e)(6) ), additional design requirements for controlling fugiti ve emissions or breathing losses (see, e.g., BAAQMD Regulation 8 Rule 8, section 302.4), and additional requirements for inspections and maintenance (see, e.g., BAAQMD Regulation 8 Rule 8, section 302.4 and 302.6). 3. T he e xemption for air f lotation units precludes regulation of potential ly significant VOC sources (section 4.2). Even though these sources are currentl y regulated via District permit conditions , SJVUAPCD should subject them to SIP requirements as part of Rule 4625 or demonstrate wh y that is not necessary . There is no specific allowance in the CTG or other guidance documents for exempting air flotation units from regulation and n o other California air district rules include such an exemption under their similar rules. 4. To improve enforceability , SJVUAPCD should revis e section 6.0 Test Methods to remove5

inappropriate or outdated test methods such as 6.1.2 ARB Method 432 for paints and coatings, and 6.1.3 which refers to an obsolete document superseded b y EP A Method 204 fo r determining capture efficiency (40 CFR 51). We recommend including EPA Test Method 21 (measurements of leaks) as referenced in SJVUAPCD Rule 4455, Section 6.4 Test Methods, or SCAQMD Rule 1176, Section (h). 5. The RACT Demonstration mentions that the requirements in SJVUAPCD Rule 4455, “Components at Petroleum Refineries, Gas Liquids Processing Facilities and Chemical Plants” apply

to oil

- water separators. SJVUAPCD should includ e those requirements directly in Rule 4625 or by

reference to improve enforceability , or demonstrate that this is not appropriate
. 6. To ensure ongoing compliance and strengthen enforceability, SJVUACPD should add to the rule requirements for inspections of c overs, access hatches and other openings and emissions control equipment, along with recordkeeping requirements for inspections and testing or demonstrate that this is not appropriate . For example, please see SCAQMD Rule 1176, section (f) and (g). 7. SJVUAPCD should delete or justify exemption 4.1 for wastewater separators exceeding a set value for a sump surface area to the rate of oil vapor loss ratio. The only other rule where we found such exemption is SCAQMD Rule 464 for Wastewater Separators , last amended December 7, 1990. This exemption is not found in the newer SCAQMD Rule 1176, “VOC Emi ssions from Wastewater Sy stems” amended September 13, 1996, which also addresses wastewater separators and which largel y supersedes Rule 464. EPA Action The re visions reflected in submitted Rule 4625 are largel y administrative changes that do not substantively weaken the SIP , but the deficiencies discussed above preclude full approval. As a result, EPA staff recommends a simultaneous limited approval and limited disapproval of the August 24, 2007 submittal of SJVUAPCD Rule 4625 pursuant to secti on 110(k) of the CAA as amended in 1990 . If finalized as proposed, the rule deficiencies identified above would trigger CAA Section 110(m) sanction and Section 110 (c) federal implementation plan (FIP) obligation s because the San Joaquin Valley is an extreme nonattainment area for ozone required to implement RACT. EPA Recommendations T he following revisions are not currentl y the basis for rule disapproval, but are recommended as improvements when this rule is amended.  We suggest deleting section 7.0 Compliance Schedule since it is no longer applicable. Guidance and Policy Documents Guidance and policy

documents that we used to help evaluate rules and RACT requir ements consistently

include the following: 1. Portions of the proposed post

- 1987 ozone and carbon monoxide policy that concern RACT, 52 FR 45044 (November 24, 1987).6

2. Requirements for Preparation, Adoption, and Submittal of Implementation Plans , U.S. EPA, 40 CFR part 51. 3. Addendum to the General Preamble for the Implementation of Title I of the Clean Air Act Amendments of 1990, 59 FR 41998 (August 16, 1994). 4. “ Issues Relating to VOC Regulation Cutpoints, Deficiencies, and Deviations ” , EPA (May 25, 1988). [The B luebook] 5. “ Guidance Document for Correcting Common VOC & Other Rule Deficiencies ” , EPA Region 9 (August 21, 2001). [The L ittle Bluebook] 6. “Control of Refinery

Vacuum Producing S ys tems, Water Separators and Process Units”, EPA
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- 77
- 025, October 1977. 7. “Standards of Performance for VOC Emissions from Petroleum Refinery Wastewater Sy stems”, 40 CFR 60 Subpart QQQ, November 23, 1988 (53 FR 47623). 8. “National Emission Standards for Oil

- Water Separators and Organic

- Water Separators”, 40 CFR 63 Subpart VV, July 1, 1996 (61 FR 34195). A ttachments 1. SJVUAPCD Rule 4625, “ Wastewater Separators ” as submitted on August 24, 2007
. 2. SJVUAPCD R

ule 463.4, “ Wastewater Separators ” adopted on April 11, 1991, SIP approved on May

13, 1993. 3. “2009 RACT SIP” , SJVUAPCD (April 16, 2009). [Cover plu s sections relevant to SJVUAPCD Rule 4625].