[Federal Register Volume 62, Number 164 (Monday, August 25, 1997)]
[Rules and Regulations]
[Pages 44907-44909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22513]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[CA 034-0049a FRL-5880-4]


Approval and Promulgation of Implementation Plans; California 
State Implementation Plan Revision, Bay Area Air Quality Management 
District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on a revision to the 
California State Implementation Plan. The revision concerns a rule from 
the Bay Area Air Quality Management District (BAAQMD). This approval 
action will incorporate this rule into the federally approved SIP. The 
intended effect of approving this rule is to regulate emissions of VOCs 
in accordance with the requirements of the Clean Air Act, as amended in 
1990 (CAA or the Act). This revised rule controls VOC emissions from 
stationary storage tanks containing organic liquids. Thus, EPA is 
finalizing the approval of the BAAQMD rule revision into the California 
SIP under provisions of the CAA regarding EPA action on SIP submittals, 
EPA's general rulemaking authority, plan submissions, and 
enforceability guidelines. This rule is being incorporated into the SIP 
in accordance with the area's ozone maintenance plan for redesignation 
to attainment.

DATES: This action is effective on October 24, 1997 unless adverse or 
critical comments are received by September 24, 1997. If the effective 
date is delayed, a timely notice will be published in the Federal 
Register.

ADDRESSES: Comments must be submitted to Andrew Steckel at the Region 
IX office listed below. Copies of the rule revisions and EPA's 
evaluation report for BAAQMD Rule 8-5, Storage of Organic Liquids, are 
available for public inspection at EPA's Region IX office during normal 
business hours. Copies of the submitted rule revisions are available 
for inspection at the following locations:


[[Page 44908]]


Rulemaking Office (AIR-4), Air Division, U.S. Environmental Protection 
Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
S.W., Washington, D.C. 20460
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 92123-1095
Bay Area Air Quality Management District, 939 Ellis Street, San 
Francisco, CA 94109

FOR FURTHER INFORMATION CONTACT: Yvonne Fong, Rulemaking Office, AIR-4, 
Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-1199.

SUPPLEMENTARY INFORMATION:

I. Applicability

    The rule being approved into the California SIP is BAAQMD Rule 8-5, 
Storage of Organic Liquids. This rule was submitted by the California 
Air Resources Board to EPA on May 24, 1994.

II. Background

    On March 3, 1978, EPA promulgated a list of ozone nonattainment 
areas under the provisions of the Clean Air Act, as amended in l977 
(1977 Act or pre-amended Act), that included the San Francisco Bay 
Area. 43 FR 8964, 40 CFR 81.305. On May 26, 1988, EPA notified the 
Governor of California, pursuant to section 110(a)(2)(H) of the 1977 
Act, that the above district's portion of the California SIP was 
inadequate to attain and maintain the ozone standard and requested that 
deficiencies in the existing SIP be corrected (EPA's SIP-Call). In 
amended section 182(a)(2)(A) of the CAA, Congress statutorily adopted 
the requirement that nonattainment areas fix their deficient reasonably 
available control technology (RACT) rules for ozone and established a 
deadline of May 15, 1991 for states to submit corrections of those 
deficiencies.
    On November 12, 1993, BAAQMD submitted a request for redesignation 
to attainment of the ozone standard. Subsequently, EPA evaluated and 
approved BAAQMD's request and the San Francisco Bay Area was 
reclassified as an attainment area.<SUP>1</SUP>
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    \1\ The San Francisco Bay Area was redesignated to attainment 
and was classified by operation of law pursuant to sections 107(d) 
upon the date of enactment of the CAA. See 60 FR 27028 (May 22, 
1995).
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    This document addresses EPA's direct-final action for BAAQMD Rule 
8-5, Storage of Organic Liquids. The BAAQMD adopted this rule on 
January 20, 1993. This submitted rule was found to be complete on July 
14, 1994, pursuant to EPA's completeness criteria that are set forth in 
40 CFR part 51 Appendix V; <SUP>2</SUP> and is being finalized for 
approval into the SIP.
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    \2\  EPA adopted the completeness criteria on February 16, 1990 
(55 FR 5824) and, pursuant to section 110(k)(1)(A) of the CAA, 
revised the criteria on August 26, 1991 (56 FR 42216).
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    BAAQMD Rule 8-5 controls emissions of VOCs from stationary storage 
tanks containing organic liquids. VOCs contribute to the production of 
ground level ozone and smog. This rule was originally adopted as part 
of BAAQMD's efforts to achieve the National Ambient Air Quality 
Standards (NAAQS) for ozone and in response to EPA's SIP-Call and the 
section 182(a)(2)(A) CAA requirement. In accordance with the 
redesignation maintenance plan and at the request of BAAQMD, EPA is 
incorporating this revision into the SIP.
    The following is EPA's evaluation and final action for this rule.

III. EPA Evaluation and Action

    In determining the approvability of a rule, EPA must evaluate the 
rule for consistency with the requirements of the CAA and EPA 
regulations, as found in section 110 and 40 CFR part 51 (Requirements 
for Preparation, Adoption, and Submittal of Implementation Plans).
    In addition, this rule was evaluated against the SIP enforceability 
guidelines found in ``Issues Relating to VOC Regulation Cutpoints, 
Deficiencies, and Deviations--Clarification to Appendix D of November 
24, 1987 Federal Register'' (EPA's `Blue Book') and the EPA Region IX--
California Air Resources Board document entitled ``Guidance Document 
for Correcting VOC Rule Deficiencies'' (April 1991), and against other 
EPA policies. In general, these guidance documents have been set forth 
to ensure that VOC and other rules are fully enforceable and strengthen 
or maintain the SIP.
    Because BAAQMD Rule 8-5 is being incorporated into the SIP as part 
of the maintenance measures for the area's redesignation plan, the rule 
does not need to be evaluated for meeting the RACT emission limits 
pursuant to section 182(a) of the CAA. As an ozone maintenance measure, 
the rule is being evaluated against the emissions reductions assumed in 
the maintenance plan and the rule version currently incorporated in the 
SIP.
    On June 10, 1992, EPA approved into the SIP a version of Rule 8-5, 
Storage of Organic Liquids, that had been adopted by the BAAQMD on May 
4, 1988. The BAAQMD Rule 8-5 submitted on May 24, 1994 includes the 
following significant changes:
    <bullet> Section 116 has been added to include a clarifying 
exemption for underground gasoline storage tanks located at dispensing 
facilities subject to Regulation 8, Rule 7;
    <bullet> Language exempting tanks that store liquids with a true 
vapor pressure of 0.5 psia or less has been moved from section 101 to 
section 117 (rule applicability has not changed);
    <bullet> The following definitions have been added to section 200: 
approved emission control system, degassing, external floating roof 
tank, internal floating roof tank, true vapor pressure, organic 
compound, and viewport;
    <bullet> Section 303 has been added to include requirements for 
above ground tanks with a capacity between 37.5 m \3\ and 75 m \3\, 
storing organic liquids with a true vapor pressure greater than 1.5 
psia;
    <bullet> Section 400 has been modified to require periodic operator 
inspections, rather than simply making tanks available for APCO 
inspection;
    <bullet> The outdated compliance schedules in sections 411 and 412 
have been deleted;
    <bullet> The following sections have been added: 502--tank cleaning 
annual source test requirement; 503--specifications for portable 
hydrocarbon detectors; and 605--pressure vacuum valve gas tight 
determination.
    EPA has evaluated the submitted rule and has determined that it is 
consistent with the CAA, EPA regulations, and EPA policy. Therefore, 
BAAQMD Rule 8-5, Storage of Organic Liquids, is being approved under 
section 110(k)(3) of the CAA as meeting the requirements of section 
110(a) and pursuant to EPA's authority under section 301(a) to adopt 
regulations necessary to further air quality by strengthening the SIP.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future implementation 
plan. Each request for revision to the state implementation plan shall 
be considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    EPA is publishing this document without prior proposal because the 
Agency views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse

[[Page 44909]]

or critical comments be filed. This action will be effective October 
24, 1997, unless, within 30 days of its publication, adverse or 
critical comments are received.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent document that will 
withdraw the final action. All public comments received will then be 
addressed in a subsequent final rule based on this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
this action. Any parties interested in commenting on this action should 
do so at this time. If no such comments are received, the public is 
advised that this action will be effective October 24, 1997.

IV. Administrative Requirements

A. Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this 
regulatory action from E.O. 12866 review.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals under section 110 and 301 and subchapter I, part D of 
the Clean Air Act do not create any new requirements but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP approval does not impose any new requirements, the 
Administrator certifies that it does not have a significant impact on 
any small entities affected. Moreover, due to the nature of the 
Federal-State relationship under the CAA, preparation of a regulatory 
flexibility analysis would constitute Federal inquiry into the economic 
reasonableness of state action. The Clean Air Act forbids EPA to base 
its actions concerning SIPs on such grounds. Union Electric Co. v. U.S. 
EPA, 427 U.S. 246, 255-66 (1976); 42 U.S.C. 7410(a)(2).

C. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under section 205, EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires EPA to establish a plan 
for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    EPA has determined that the approval action promulgated does not 
include a Federal mandate that may result in estimated costs of $100 
million or more to either State, local, or tribal governments in the 
aggregate, or to the private sector. This Federal action approves pre-
existing requirements under State or local law, and imposes no new 
Federal requirements. Accordingly, no additional costs to State, local, 
or tribal governments, or to the private sector, result from this 
action.

D. Submission to Congress and the General Accounting Office

    Under section 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office prior to publication of the rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 
section 804(2) of the APA as amended.

E. Petitions for Judicial Review

    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by October 24, 1997. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR part 52:

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Note: Incorporation by reference of the State Implementation 
Plan for the State of California was approved by the Director of the 
Federal Register on July 1, 1982.

    Dated: August 11, 1997.
Felicia Marcus,
Regional Administrator.

    Subpart F of Part 52, Chapter I, Title 40 of the Code of Federal 
Regulations is amended as follows:

PART 52--[AMENDED]

Subpart F--California

    1. The authority citation for Part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401-7671q.

    2. Section 52.220 is amended by adding paragraphs (c)(197)(i)(B)(2) 
to read as follows:


Section 52.220   Identification of plan.

* * * * *
    (197) * * *
    (i) * * *
    (B) * * *
    (2) Rule 8-5, adopted on January 20, 1993.
* * * * *
[FR Doc. 97-22513 Filed 8-22-97; 8:45 am]
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