47336 Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices

1See Attachment 1, ‘‘Memorandum of Agreement

between the Department of Defense and the U.S.

Environmental Protection Agency on Regulatory

Reinvention Pilot Project,’’ November 2, 1995.

ENVIRONMENTAL PROTECTION

AGENCY

[FRL–5888–5]

Regulatory Reinvention (XL) Pilot

Projects

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Publication of proposed Project

XL Final Project Agreement (FPA) for

Vandenberg Air Force Base and related

documents.

SUMMARY: EPA is announcing the

publication of the Project XL Final

Project Agreement (FPA) for

Vandenberg Air Force Base in Santa

Barbara County, California. The FPA is

a voluntary agreement developed

collaboratively by the Department of

Defense, Vanderberg Air Force Base, the

Santa Barbara Air Pollution Control

District, local community members and

EPA. Project XL, announced in the

Federal Register on May 23, 1995 (FRL–

5197–9), gives regulated sources the

flexibility to develop alternative

strategies that will replace or modify

specific regulatory requirements on the

condition that they produce greater

environmental benefits. EPA has set a

goal of implementing a total of fifty

projects undertaken in full partnership

with the states.

FOR FURTHER INFORMATION: To obtain a

copy of the Proposed Final Project

Agreement or Supporting Documents

contact: John Walser (415) 744–1257;

US EPA Region IX; Vandenberg Project

XL Lead, AIR–3; 75 Hawthorne Street,

San Francisco, Ca. These documents are

also available via the internet at the

following location: ‘‘http://

www.epa.gov/ProjectXL’’. To be

included on the Vandenberg Project XL

mailing list to receive information about

future public meetings, XL progress

reports, and other mailings from

Vandenberg on the XL project, or for

questions about the Proposed FPA

contact John Walser at (415) 744–1257.

DATES: Comments. All public comments

must be received on or before October

8, 1997.

ADDRESSES: Comments. Written

comments should be submitted in

duplicate to: John Walser; US EPA;

Vandenberg Project XL Lead, AIR–3; 75

Hawthorne Street, San Francisco, Ca.

Docket. A docket containing

supporting information used in

developing this rulemaking, including

the draft FPA and supporting materials,

is available for public inspection and

copying at U.S. EPA, Region IX, AIR–3;

75 Hawthorne Street, San Francisco,

Ca., during normal business hours, and

at EPA’s Water Docket (Docket name

‘‘XL/Envest-Vandenberg AFB’’);

Mailcode 4101, 401 M Street, SW,

Washington, DC 20460. For access to the

Water docket materials, call (202) 260–

3027.

For information on all other aspects of

Project XL contact Christopher Knopes

at the following address: Emerging

Sectors and Strategies Division; United

States Environmental Protection

Agency; 3202 Mall; 401 M Street, S.W.;

Mail Code 2129; Washington, DC 20460.

The telephone number for the Division

is (202) 260–5754. The facsimile

number is (202) 401–6637. Additional

information on Project XL, including

documents referenced in this notice,

other EPA policy documents related to

Project XL, regional XL contacts,

application information, and

descriptions of existing XL projects and

proposals, is available via the internet at

‘‘http://www.epa.gov/ProjectXL’’ and

via an automated fax-on-demand menu

at (202) 260–8590.

Dated: September 2, 1997.

Christopher Knopes,

Acting Director, Emerging Sectors and

Strategies Division.

FINAL PROJECT AGREEMENT

VANDENBERG AIR FORCE BASE

AIR QUALITY PROJECT XL/ENVVEST

INITIATIVE

Table of Contents

PREAMBLE

I. OVERVIEW—PURPOSE OF THIS

AGREEMENT

II. DESCRIPTION OF THE PROJECT

A. GENERAL PROJECT DESCRIPTION

B. CONFORMITY TO THE

MEMORANDUM OF AGREEMENT

1. Regulatory Flexibility

2. Cost Savings And Paperwork Reduction

3. Description Of Stakeholder Involvement

4. Environmental Results: Innovation/

Pollution Prevention

a. Background

b. Investigation And Application Of

Innovative Control Strategies

c. Pollution Prevention

d. Emission Reductions

5. Transferability, Feasibility, Monitoring,

Reporting, And Evaluation

a. Transferability

b. Feasibility

c. Monitoring And Reporting

d. Evaluation

6. Worker Safety And Environmental

Justice

III. IMPLEMENTATION OF THE

VANDENBERG INITIATIVE

A. VANDENBERG RESPONSIBILITIES;

EMISSION REDUCTIONS

B. DISTRICT RESPONSIBILITIES

1. Rule Submission To EPA

2. Technical Assistance/Plan Review And

Submission To EPA

C. EPA RESPONSIBILITIES

D. EPA APPROVAL OF RULE 1301

IV. ADMINISTRATION OF THE

AGREEMENT

A. DURATION AND TERMINATION/

RENEWAL OF AGREEMENT

B. TERMINATION

1. Parties’ Termination Rights

2. Termination of Plan

3. Stationary Source Redesignation

4. Achieved Emission Reductions

C. FUNDING

D. EVENTS PREVENTING

IMPLEMENTATION OF AGREEMENT

E. DISPUTE RESOLUTION

F. PUBLIC RECORDS AND THE

ADMINISTRATIVE RECORD

G. ENFORCEMENT

H. PERIODIC REVIEW AND EVALUATION

ACTIVITIES

I. MEANS OF GIVING NOTICE

J. EFFECTIVE DATE

LIST OF ATTACHMENTS

Preamble

This Final Project Agreement (FPA or

‘‘Agreement’’) is part of President

Clinton’s Reinventing Environmental

Regulation Initiative to test innovative

approaches to environmental protection.

Under this Agreement, Vandenberg Air

Force Base will go beyond what is

required by regulation and achieve

superior environmental performance at

a lower cost. By 30 November, 2002, the

Base will reduce its annual emissions of

ozone precursors into the air by 10 tons

or more. As a result of this initiative,

Vandenberg will no longer be a

potential major source of air pollution

under Title V of the Clean Air Act.

This Agreement states the intention of

the United States Environmental

Protection Agency (‘‘EPA’’), the 30th

Space Wing at Vandenberg Air Force

Base, California (‘‘Vandenberg’’), and

the Santa Barbara County Air Pollution

Control District (‘‘District’’) (collectively

hereinafter referred to as ‘‘the parties’’)

to carry out a pilot project pursuant to

the 1995 Memorandum of Agreement

between the Department of Defense

(‘‘DOD’’) and EPA on Regulatory

Reinvention Projects 1 testing innovative

approaches to environmental protection.

The program resulting from the MOA is

called Project XL/ENVVEST and

represents an initiative to develop new

approaches for meeting DOD and EPA

responsibilities while achieving better

overall environmental performance at

lower cost than expected under existing

regulatory approaches. The ENVVEST

program mirrors and supports EPA’s

regulatory relief efforts under Project

XL.

The Vandenberg proposal follows

President Clinton’s mandate that

regulatory reinvention under Project
Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices 47337

2Rule 370 is based on a model Title V prohibitory

rule that was developed cooperatively between EPA

Region IX and the California Air Resources Board.

Pursuant to the applicability section of Rule 370,

only sources with actual emissions less than 50%

of a major source threshold are eligible for coverage

(See Rule 370 at Attachment 2).

3To be classified as a ‘‘major stationary source’’

in Santa Barbara County, a source must emit, or

have the potential to emit, 100 tons per year of any

regulated air pollutant or 10 tons per year of any

hazardous air pollutant (as defined in section 112

(b) of the Clean Air Act) , or 25 tons per year of

a combination of any hazardous air pollutants.

Ozone nonattainment areas were classified

according to the severity of the nonattainment

based on the design value of a particular Air

Quality Control Region at the time of the passage

of the Clean Air Act Amendments of 1990 (Pub. L.

101–549). In the case of the Santa Maria-Santa

Barbara-Lompoc area, that area was classified as a

‘‘Moderate’’ nonattainment area for ozone under the

provisions of 42 U.S.C.A. section 7511(a) [Clean Air

Act § 181(a)]. All moderate areas were required to

meet the ozone National Ambient Air Quality

Standards by 15 November 1996.

XL/ENVVEST put the focus on progress

rather than process. Vandenberg

proposes a phased emissions reduction

program. In the short-term, the focus

will be on emission reductions from

boilers, furnaces, and process heaters. In

the long-term, the focus will be on

opportunities for emission reductions

from internal combustion engines,

solvent and surface coating applications

or other suitable sources of ozone

precursors.

The District and EPA, in return for the

effort by Vandenberg, will allow

Vandenberg to use innovative ways to

comply with District Rule 370 2 and the

District’s Title V Federal Operating

Permit Program.

The commitment by Vandenberg to

achieve significant and superior

environmental benefits, as detailed in

this Agreement, will be formally

submitted by the District to EPA for

approval into the Santa Barbara County

portion of the California State

Implementation Plan (‘‘SIP’’). The

District will also oversee the execution

of the plan and provide technical

assistance.

I. Overview—Purpose of This

Agreement

This Agreement is a joint statement of

the parties’ intentions with regard to the

Vandenberg Air Quality Project XL/

ENVVEST Initiative. This Agreement is

not intended to create legal rights or to

be a contract or a regulatory action, such

as a permit or rule. While it does not

give rise to any rights enforceable in a

legal action either to compel

performance of the Agreement or for

damages, it is intended to clearly state

the plans of the parties and to represent

the firm commitment of each party to

carry out the project.

II. Description of the Project

A. General Project Description

The 30th Space Wing at Vandenberg

Air Force Base is located on the central

coast of California about 150 miles

northwest of Los Angeles. Covering

more than 98,000 acres, it is the third

largest Air Force installation, and is the

only point in the United States from

which unmanned government and

commercial satellites are launched into

polar orbit and from which

intercontinental ballistic missiles are

launched to verify weapon system

performance.

The mission of the 30th Space Wing

is to: (1) Conduct and support space and

missile launches; (2) operate the

Western Test Range; (3) respond to

world-wide military contingencies; and

(4) host the Vandenberg community.

Vandenberg, like other military

installations, differs from civilian

stationary sources in that the base hosts

and supports a unique and wide variety

of functions and activities. These

activities include residential housing,

schools, recreational parks, wildlife

reserves, shopping centers, industrial

maintenance, airfield operations, and

various other mission related activities.

As such, base activities create criteria

pollutants normally associated with

residential, commercial, and light

industrial operations. Most of the

stationary source ozone precursor

emissions at the base are generated by

boilers, furnaces, process heaters, and

internal combustion engines.

Vandenberg views environmental

compliance as integral to its mission

and, therefore, directs significant

resources to ensure compliance with all

environmental laws and regulations.

With the advent of regulatory

reinvention and the creation of Project

XL/ENVVEST, Vandenberg saw the

opportunity to test alternative ways of

achieving environmental compliance.

Vandenberg evaluated its environmental

compliance obligations and identified

areas where regulatory relief would

likely result in greater environmental

benefits. As a result of this evaluation,

Vandenberg submitted a Project XL/

ENVVEST proposal requesting relief

from District Regulation XIII, Part 70

Operating Permit Program. Under this

proposal, Vandenberg proposed to use

resources allocated for environmental

compliance purposes to implement

pollution prevention activities that

would ultimately have a greater

environmental benefit than compliance

with District Regulation XIII.

Regulation XIII is an EPA approved

and federally enforceable stationary

source operating permit program,

implementing Title V of the Clean Air

Act (‘‘Title V’’) and 40 CFR Part 70

(‘‘Part 70’’), Title V supporting

regulations. Regulation XIII requires

major stationary sources 3 to apply for

and obtain a Part 70 operating permit.

The objective of such permits is to

create a comprehensive document

clearly spelling out all of a source’s

Clean Air Act obligations. While

Regulation XIII generally does not

impose new substantive requirements

on sources, it does enhance

environmental compliance with existing

requirements.

Under the District Rules in effect in

1996, Vandenberg was a ‘‘major

stationary source’’ for purposes of Part

70 and subject to the permitting

requirements of Regulation XIII. This

classification was based on

Vandenberg’s potential to emit at least

100 tons per year of oxides of nitrogen

(‘‘NOX’’). Actual emissions of NOX at

Vandenberg, however, are

approximately 50 tons per year.

Vandenberg, in cooperation with the

District and Region IX, realized that if

actual emissions used to make a Title V

applicability determination could be

reduced and if the District exercised its

regulatory discretion, then the facility

would be eligible to comply with

District Rule 370, Potential to Emit—

Limitations for Part 70 Sources, a rule

that exempts a source from Title V if the

actual emissions from the source are

less than half of the potential to emit

threshold for Regulation XIII. A source

that complies with Rule 370 by not

exceeding actual emissions of 50 tons

per year is not subject to Regulation XIII

and, therefore, is not required to obtain

a Part 70 permit.

The District is currently classified as

a ‘‘moderate’’ nonattainment area for the

federal one-hour ozone standard. For

such areas, a ‘‘major stationary source’’

subject to the permitting requirements

of Title V is one whose potential to emit

equals or exceeds 100 tons per year of

any regulated pollutant. In 1996,

however, the District experienced a

number of federal ozone standard

violations that may require EPA to

reclassify the District as a ‘‘serious’’

nonattainment area. If this occurs, the

applicable definition of major stationary

source for Part 70 purposes under

Regulation XIII and Rule 370 will be

lowered to 50 tons potential to emit or

25 tons actual emissions of an ozone

precursor.

The Parties acknowledge that EPA has

adopted new federal standards for ozone

and particulate matter. It is unclear how

these new standards will affect Santa
47338 Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices

4See Attachment 3, ‘‘Interim Agreement On

Implementation Of The ENVVEST Title V Initiative.

5See Attachment 4, Santa Barbara County Air

Pollution Control District Rule 1301, PART 70

OPERATING PERMITS—GENERAL

INFORMATION.

6 See Attachment 5, ‘‘Project XL/ENVVEST

PUBLIC PARTICIPATION PROCESS

Barbara County’s nonattainment status.

In light of the above, the parties

recognize the likelihood that the

applicable thresholds for the District’s

Regulation XIII and Rule 370 may be

lowered to meet the requirements for

serious ozone nonattainment areas.

Therefore, this Agreement has been

structured to allow the Vandenberg

Project XL/ENVVEST Initiative to

proceed while meeting the new more

stringent definition of major stationary

source.

Together, Region IX, the District, and

Vandenberg identified areas of

regulatory flexibility that allow the

District to determine that Vandenberg

may be classified as a non-major or

minor source pursuant to Rule 370.4

First, the District amended Rule 1301 5

to allow Vandenberg to exclude from its

Title V major source applicability

determination, emissions from tactical

support equipment, infrastructure

maintenance equipment, and building

maintenance equipment that meet the

EPA definition of ‘‘nonroad engine.’’

Second, the District will use its

discretion to modify Rule 1301 to allow

Vandenberg to group certain sources at

the base for the purposes of Title V

applicability by the methods set forth in

the EPA 2 August 1996 policy entitled

‘‘Major Source Determinations for

Military Installations under the Air

Toxics, New Source Review, and Title V

Operating Permit Programs of the Clean

Air Act’’ (‘‘Act’’).

The rule changes are contingent upon

Vandenberg obtaining approval of and

implementing a plan that achieves a

reduction in annual emissions of ozone

precursors by at least 10 tons by 30

November 2002. The rule changes and

this Agreement will not affect

Vandenberg’s major stationary source

designation for programs other than

Title V, (e.g., Prevention of Significant

Deterioration/New Source Review (PSD/

NSR)).

B. Conformity to the Memorandum of

Agreement

The following section addresses

criteria for consideration under the

DOD/EPA Memorandum of Agreement.

1. Regulatory Flexibility

Information pertaining to

conformance with this criterion is

contained in the preceding section.

2. Cost Savings and Paperwork

Reduction

Vandenberg expects to realize cost

savings and paperwork reduction by

being able to comply with Rule 370 in

lieu of Regulation XIII and complying

with the obligations to obtain a Title V

permit.

Administrative and enforcement costs

incurred by the District, for the

development and implementation of

this initiative, will be documented and

made available to the public. Costs that

qualify as ‘‘reimbursable costs’’ under

District Rule 210.I.C. will be accounted

for separately and will be reimbursed by

Vandenberg from DOD ENVVEST funds.

In consultation with Vandenberg, the

District will establish an operating

budget to ensure maximum availability

of funds for emission reduction projects.

3. Description of Stakeholder

Involvement

The base has consulted with the

Vandenberg Community Advisory

Board (‘‘CAB’’), and the District

Community Advisory Council (‘‘CAC’’)

in formulating this Agreement. The

mission of the CAB is to promote

community awareness and to review the

remedial cleanup process at

Vandenberg. This mission has now been

expanded to address the Vandenberg

Project XL/ENVVEST initiative. The

CAC provides advice regarding air

quality issues to the Air Pollution

Control District Board of Directors.

Pursuant to guidance from the Board, a

subcommittee was created to participate

in this initiative. Each body has met

twice to receive briefings, discuss the

initiative, and provide input.

The parties have and will continue to

issue press releases, run informational

notices in the newspaper and sponsor

public meetings, beginning with the

initial meeting in October 1996, and

every 6 months after execution of this

Agreement, to advise interested

members of the public on the progress

being made toward meeting the FPA

goals. The meetings shall inform the

public of the steps taken to reduce

pollution, include information on

proposed steps to meet the goals of the

FPA and solicit comment from the

public on the progress made towards

meeting the goals of the Agreement, or

any other matter relevant to the

execution of the Agreement. These

meetings will be held in locations in

Santa Barbara County that are accessible

to the public and at a time and place

agreed to by the parties to this

Agreement. 6

4. Environmental Results: Innovation/

Pollution Prevention

a. Background. Through the process

outlined in this FPA, Vandenberg

proposes to implement innovative

strategies in the selection and

application of advanced emission

reduction technologies to reduce

emissions below levels they would have

been at if the project were not being

undertaken. Additionally, Vandenberg

proposes to categorize the emission

reduction potential of the available

equipment to apply the most efficient

and cost-effective technologies

appropriate to the pollution generating

equipment.

During the initial phase of this

initiative, Vandenberg will focus on

boilers, which are the single largest

stationary source of ozone precursor

emissions. Vandenberg operates over

200 boilers rated between 100,000 Btu/

hr and 5 MMBtu/hr. These units are

operated for spatial heating and heated

water applications throughout the base

and are typically fired on natural gas.

Vandenberg has recently researched the

feasibility of modifying boilers rated

between 2 MMBtu/hr and 5 MMBtu/hr

in order to obtain emission reductions.

Throughout the course of this initiative,

Vandenberg will assess the emission

reduction potential from a variety of

sources, including but not limited to

internal combustion engines and solvent

and surface coating applications.

b. Investigation And Application Of

Innovative Control Strategies. In order

to apply the most appropriate and cost

effective emission control technologies

to boilers, Vandenberg is in the process

of categorizing these emission units by

process type and by annual operating

capacity. Once segregated, Vandenberg

proposes to apply advanced emission

control technologies (<15 ppmvd NOX @

3% O2) to those units capable of

providing the greatest emission

reduction. Also, Vandenberg proposes

to apply somewhat less advanced

emission control technologies (<30

ppmvd NOX @ 3% O2) to those units

which provide fewer potential emission

reductions. Finally, the units that

operate the least are proposed to be

tuned and/or modified to meet or

exceed an emission standard of >30

ppmvd NOX @3% O2.

Advanced boiler emission control

technologies available for these

applications include lean pre-mix

combustion techniques, integral flue gas

recirculation burners, spark-ignited

pulse combustion boilers, and

oscillating gas control valves. Through

the implementation of these

technologies, Vandenberg will be
Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices 47339

7 The term ‘‘being retrofitted’’ encompasses

construction, testing, and monitoring of emission

reductions.

8 40 CFR Part 70, § 70.5 (a)(1)(i).

demonstrating advanced emission

reduction methods emerging into the

marketplace for these sized units.

Through the demonstration of these

emerging technologies, Vandenberg will

be advancing the technologies beyond

the research and development phases

and into the commercialization stages of

burner development.

c. Pollution Prevention. Through the

investigation and implementation of the

advanced emission reduction

technologies, Vandenberg will be

demonstrating the effectiveness of

pollution prevention methods for

control of environmental pollution.

Classic emission control strategies focus

on the ability to capture and destroy

pollution, once generated from

industrial processes. These control

techniques often relied on the use of

scrubbing media or catalytic exhaust

treatment (including ammonia injection)

to achieve ultra-low emissions

thresholds (<20 ppmvd NOX @ 3% O2).

Through the initiatives outlined in

this FPA, Vandenberg is proposing to

apply innovative pollution prevention

techniques in reducing emissions from

their facilities. Advanced burner

development provides for the reduction

of NOX through alterations in the burner

configuration, eliminating the need for

post exhaust controls. By working

directly with technology vendors,

Vandenberg has the ability to apply

advanced ultra-low emission

technologies.

d. Emission Reductions. Vandenberg

is committed to achieving through this

initiative a reduction in annual

emissions of ozone precursors by at

least 10 tpy by 30 November 2002.

These reductions, attained by the use of

innovative technology, will be

permanent and will not be used as

bankable emission credits for further

growth at Vandenberg or any other

facility. Sources selected for the

Vandenberg Air Quality Project XL/

ENVVEST Initiative will not affect the

calculation of the Vandenberg Net

Emission Increase. This does not

prohibit future Net Emission Increases

at Vandenberg. However, if Vandenberg

is required to undergo a mission change

or additional missions are added to the

facility and growth offsets are required

to accommodate these mission changes,

then such offsets must be obtained

through projects which are not part of

the air initiative, or must be acquired by

the Air Force from qualified areas of

sources outside Vandenberg.

5. Transferability, Feasibility,

Monitoring, Reporting, and Evaluation

These criteria are addressed further in

section III of this FPA.

a. Transferability. Transferability is

envisioned in both a procedural and

technical context. Procedurally,

reallocating funding for pollution

prevention rather than for compliance

can result in regulatory requirements no

longer being applicable. This funding

trade off is a transferable mechanism.

The technical transferability

encompasses boiler demonstration

projects testing new burner technologies

that can be replicated at industrial and

military facilities.

b. Feasibility. Feasibility, which is

achievement of technical objectives

within applicable cost constraints, is

inherent within this process.

c. Monitoring And Reporting.

Monitoring and Reporting relates to the

collection of data necessary to proceed

on to the next step which will validate

the achievement of defined objectives.

In this instance, adequate data regarding

emissions reductions related to selected

technology applications will be

collected to allow for a meaningful

evaluation of the progress being made to

achieve specified milestones.

d. Evaluation. Evaluation will

interpret the data gathered in the

previous phase and make possible a

determination of whether the

appropriate milestone has been

accomplished. This will involve a

public participation component and

should take place within 30 days of the

completion date of any milestone.

6. Worker Safety and Environmental

Justice

The base is committed to

implementing Project XL/ENVVEST,

complying with Executive Order 12898

and, pursuant to Executive Order 12196,

complying with Air Force Office of

Safety and Health standards. The

Vandenberg Project XL/ENVVEST

initiative will not create worker safety

hazards or any disproportionately high

and adverse human health or

environmental effects on minority

populations and low-income

populations.

III. Implementation of the Vandenberg

Initiative

A. Vandenberg Responsibilities;

Emission Reductions

Vandenberg will implement a phased

program to reduce annual emissions of

ozone precursors by at least 10 tons by

30 November 2002. The initial effort

will be accomplished through emission

reductions from boilers, furnaces, or

process heaters. Details of the program

will be specified and made enforceable

in the Rule 1301 Plan. The Plan shall

consist of source selection criteria,

technology options, baseline emission

protocols, emission measurement

protocols, and emission reduction

reporting protocols. Vandenberg will

work in conjunction with the District

Innovative Technology Group. This Plan

will be submitted to the Air Pollution

Control Officer (‘‘Control Officer’’) no

later than 30 November, 1997, to

include and execute the following

agreed upon milestones. Other emission

reduction efforts, supporting the

attainment of the 10 ton reduction goal,

will be initiated for other sources, such

as internal combustion engines and

solvent and surface coating

applications. Details of potential

additional emission reduction efforts

will be in the Plan. The Control Officer

will approve, conditionally approve, or

disapprove the Plan within 60 days of

submittal.

The agreed upon milestones are as

follows:

1. Within 30 days of execution of this

Agreement, Vandenberg shall complete the

initial assessment and cost feasibility study.

2. By 30 April 1999, 30 percent of

candidate boilers identified in milestone #1

are being retrofitted. 7

3. By 30 April 2000, 2 tons per year of

emission reductions shall have been

accomplished.

4. By 30 April 2001, 70 percent of

candidate boilers identified in milestone #1

are being retrofitted.

5. By 30 November 2002, Vandenberg shall

achieve a reduction in annual emissions of

ozone precursors by 10 tons or more.

If any of the milestones are not met,

this Agreement will terminate as

provided in Section IV and Vandenberg

will be required to comply with the

requirements of Title V of the 1990

Clean Air Act Amendments, consistent

with applicable rules and statutes.

Compliance with milestones will be

determined by the Control Officer and

will be based upon data submitted by

Vandenberg pursuant to agreed upon

protocols. At the time of the execution

of the FPA, the governing federal rule 8

requires a source to submit a compliant

permit application within one year of

the time at which the source becomes

subject to the permit program.

B. District Responsibilities

1. Rule Submission to EPA

The District will submit to Region IX,

for inclusion into the California State

Implementation Plan (‘‘SIP’’), the

relevant portions of District Rule 1301

which allow for the implementation of

the Project XL/ENVVEST program.
47340 Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices

9Approval for this paragraph means a letter

signed by EPA.

2. Technical Assistance/Plan Review

and Submission to EPA

The District will provide technical

assistance to Vandenberg regarding

opportunities for emission reductions at

Vandenberg. Vandenberg may use such

assistance when preparing the emission

reduction Plan. The District will

formally review the Plan that

Vandenberg submits pursuant to Rule

1301 and approve the Plan if it meets

the requirements of District rules. The

District will submit to EPA for inclusion

into the SIP the Vandenberg emission

reduction Plan the Control Officer

approves pursuant to Rule 1301.

C. EPA Responsibilities

EPA will review District Rule 370 and

portions of Rule 1301 that allow for

implementation of the Vandenberg

Project XL/ENVVEST initiative for

inclusion in the SIP, and approve those

rules if the applicable statutory and

regulatory criteria are met. EPA will also

approve incorporation of amended

District Rule 1301 into the District’s Part

70 program if statutory and regulatory

criteria are met.

D. EPA Approval of Rule 1301

All parties recognize and agree that

until such time as District Rule 1301, as

amended to implement this Agreement,

is approved by EPA, the basis upon

which the Control Officer intends to

exercise his discretion to find

Vandenberg a non-major source is not

complete and Vandenberg is still subject

to regulation under Title V. If EPA does

not approve 9 the amended Rule 1301 as

part of the District’s Part 70 program by

1 January 1998 then this Agreement will

terminate.

IV. Administration of the Agreement

A. Duration and Termination/Renewal

of Agreement

This Agreement is effective until 30

November 2002. If, prior to expiration

on 30 November, 2002, additional

emission reduction opportunities are

identified, the parties may elect to

revise the reduction goals and extend

the Agreement.

B. Termination

1. Parties’ Termination Rights

Any party may terminate this

Agreement any time prior to Control

Officer’s approval of the emission

reduction Plan submitted to the District

pursuant to Rule 1301. Such notice will

be in writing and sent to the other

parties. After such approval any party

may terminate its participation in the

Agreement by providing 30 days notice

to the other parties. Termination of this

Agreement will not terminate

Vandenberg’s obligations under District

Rules 1301 and 370 as discussed in

subsections IV.B.2 and IV.B.4 below.

2. Termination of Plan

If this Agreement is terminated,

achieved emission reductions will

remain in place in accordance with

applicable rules. There will be no

obligation to perform any unachieved

reductions that have not been

completed if any of the following events

occur, and Vandenberg’s status vis-a ́-vis

Regulation XIII will be reassessed as set

forth in Section IV–B above.

Vandenberg may withdraw from the

approved plan if any of the following

occur:

(a) It becomes subject to permit under Title

V of the CAA as applied by federal, state, or

local regulation.

(b) It does not achieve the emissions

reductions required by Rule 1301 pursuant to

the schedule of milestones included in the

Plan approved by the District.

(c) USEPA does not approve the Plan for

inclusion in the SIP within one year of

approval by the District.

3. Stationary Source Redesignation

If the Plan is terminated in whole or

in part for any reason, the Title V

stationary source designation for

Vandenberg will be reevaluated by EPA

and the District consistent with

applicable federal and state laws, rules,

and regulations at the time of such

termination or withdrawal of the plan.

Such reevaluation will include all

equipment on the facility. If such

inclusion subjects Vandenberg to the

permitting requirements of Regulation

XIII, Vandenberg will apply for and

obtain a permit in accordance with

Regulation XIII and applicable federal

regulations.

4. Achieved Emission Reductions

Notwithstanding any other provision

in this Agreement, the portion of a Plan

approved pursuant to Rule 1301 will not

expire for any emission reductions that

have been implemented or any

equipment that has been or is being

retrofitted. Such emission reductions

will remain in effect and will be

enforceable as part of the SIP and

District Rules and Regulations.

C. Funding

Upon execution of the interim

Agreement in June 1996, Vandenberg

redirected all remaining Fiscal Year

1996 Title V compliance funds

($163,000) to implement program

emission reduction projects. The Fiscal

Year 1997 commitment is $465,000 for

follow-on projects. At this time

Vandenberg has requested, through the

normal DOD budgeting process, funds

for the following periods for Title V

compliance purposes:

FY ’98 ....................................... $550,000

FY ’99 ....................................... 500,000

FY ’00 ....................................... 450,000

FY ’01 ....................................... 400,000

Total .................................. 2,528,000

All funding commitments by

Vandenberg will be in accordance with

the Anti Deficiency Act (31 U.S.C.

1341).

Emission reduction projects will be

funded from the funds estimated to be

available in the totals identified above.

Failure to achieve the milestones will

result in these funds being withdrawn

from this initiative and their utilization

to comply with the requirements of Title

V of the 1990 Clean Air Act

Amendments. Costs attributable to

complying with District Rule 370 will

not be supported from those funds. All

parties agree that administrative costs

should be minimized to enhance the

benefits of pursuing this initiative.

D. Events Preventing Implementation of

Agreement

If at any time during implementation

of this FPA, Vandenberg reasonably

determines and EPA and the District

concur that any requirement of such

Agreement cannot be met due to

circumstances beyond the control of

Vandenberg (including, but not limited

to, materially changed site conditions

that could not reasonably have been

anticipated, insufficient availability of

appropriated funds or the significant

failure of an innovative technology)

EPA, District, and Vandenberg will

attempt to negotiate mutually acceptable

changes to the FPA.

E. Dispute Resolution

Any dispute that arises with respect

to the meaning, application,

implementation, interpretation,

amendment, termination, or

modification of the FPA, or with respect

to the Vandenberg implementation of

the FPA, the resolution of which is not

expressly provided for in the FPA, will

in the first instance, be the subject of

informal negotiations, except with

respect to Section IV.G. (Enforcement).

To initiate informal negotiations, any

signatory which believes it has a dispute

with any other party will

simultaneously notify all of the parties,

in writing, setting forth the matter(s) in

dispute. If the dispute cannot be

resolved by the parties within 35 days
Federal Register / Vol. 62, No. 173 / Monday, September 8, 1997 / Notices 47341

10Upon approval by the Control Officer, the Plan

will be appended to this Agreement as Attachment

6.

of receipt of such notice, then one or

both parties may invoke non-binding

mediation by setting forth the nature of

the dispute, with a proposal for its

resolution, in a letter and submit it to a

three person dispute resolution

committee consisting of one member

designated by each party.

F. Public Records and the

Administrative Record

Vandenberg will issue, within 30 days

of execution of this Agreement, and

every 6 months thereafter until

completion of the Air Quality initiative,

progress reports which document

progress toward goals established by

this Agreement. The reports will

document equipment changes and

replacements, process changes, and

other relevant facts which support any

assertions of actual emission reductions

or the progress thereof. The reports will

be provided to District, Region IX, and

any interested party that requests such

reports. In addition, Vandenberg shall

maintain the reports in local public

libraries. Vandenberg will also develop

and maintain an Administrative Record

of all formal documents, records, and

correspondence necessary as a basis for

decision making regarding this

initiative.

G. Enforcement

While this Agreement is not legally

binding, the requirements of District

Rule 370, Potential to Emit—Limitations

for Part 70 Sources; District Rule 1301,

Part 70 Operating Permits, definition of

‘‘Stationary Source’’; and the

Vandenberg emission reduction Plan

approved by the Control Officer,10 are

binding and legally enforceable by the

District, after all rule changes are final.

Upon EPA approval of these

requirements into the SIP, they will also

be enforceable by EPA and citizens

under the Clean Air Act. District and

federal enforceability of the above

provisions will remain in effect until

such provisions are modified or

rescinded by the District and approved

by EPA.

These enforcement measures make

Vandenberg accountable for achieving

the milestones set out in this FPA and

the Plan submitted pursuant to Rule

1301.

H. Periodic Review and Evaluation

Activities

Each party will review this

Agreement, pursuant to the above

mentioned milestones in Section III.A.

The review will be an evaluation of the

progress towards achieving the

objectives of this Agreement.

I. Means of Giving Notice

When giving notice with regard to

FPA modification or termination, the

parties will contact the FPA signatories

in writing. Informal communication

may be given by phone or in writing to

the following contact offices:

Environmental Management Office, (805)

734–8232 (x–61921), Vandenberg Air Force

Base

Office of Strategic Planning and Emerging

Issues, (415) 744–2390, U.S. Environmental

Protection Agency, Region IX

Manager of Major Source Division, (805)

961–8800, Santa Barbara County Air

Pollution Control District

J. Effective Date

This Agreement is effective upon the

date of the last signature by the parties.

Felicia Marcus,

Regional Administrator, United States

Environmental Protection Agency, Region IX.

C. Robert Kehler,

Colonel, USAF, Commander, 30th Space

Wing, Vandenberg Air Force Base.

Douglas W. Allard,

Air Pollution Control Officer, Santa Barbara

County Air Pollution Control District.

List of Attachments

1. Memorandum Of Agreement Between

The Department Of Defense And The U.S.

Environmental Protection Agency On

Regulatory Reinvention Pilot Projects.

2. Santa Barbara County Air Pollution

Control District Rule 370, Potential To Emit,

Limitations For Part 70 Sources.

3. Interim Agreement On The

Implementation Of The Project XL/Envvest

‘‘Title V’’ Initiative.

4. Santa Barbara County Air Pollution

Control District Rule 1301, Part 70 Operating

Permits—General Information.

5. Public Participation Process.

6. Rule 1301 Plan (Will Be Appended To

FPA Upon Approval By The Control Officer).

[FR Doc. 97–23692 Filed 9–5–97; 8:45 am]

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